Gentherm Stock Earnings Reports

Key points for investors: Gentherm reported a strong start to 2026 with product revenue of $394 million (up 11.3% YoY; +7.2% ex-FX), a quarterly record driven by Automotive Climate & Comfort Solutions and outperformance in China. Adjusted EBITDA was $49.3 million (12.5% of sales) and adjusted diluted EPS was $0.84 (GAAP EPS $0.14, which included ~ $0.70 per share of merger and restructuring expenses). The company secured $395 million of automotive new business awards in the quarter and continues to expand into non-automotive markets (notably home/furniture via KUKA Home and a new medical product ThermAffyx with FDA 510(k) submitted). Gentherm announced a transformational combination with Modine Performance Technologies and projects a combined-company five-year roadmap to roughly $3.5 billion revenue and over $0.5 billion of earnings. Balance sheet remains solid with net leverage of 0.2 turns and liquidity of $456 million. Management maintained full-year 2026 guidance (excluding Modine): revenue $1.5–$1.6 billion, adjusted EBITDA $175–$195 million (midpoint margin ~12%), adjusted free cash flow $80–$100 million, and CapEx $45–$55 million. Key near-term headwinds: management estimates roughly $20 million of incremental inflationary costs in 2026 (largely freight and commodity/processing inflation) with expected timing of cost impacts beginning in Q2 and some margin pressure in Q2–Q3 as recovery mechanisms and inventory drawdown timing play out. Management also initiated an organizational realignment (reduced spans and layers, product-aligned segments) expected to generate roughly $10 million annual run-rate OpEx benefit (about half realized in 2026). Management remains focused on operational excellence, scaling into non-vehicle markets (furniture target ~$50–$100M by 2028), and executing the Modine integration (expected to close later this year).