Gentherm (NASDAQ:THRM) Announces Earnings Results, Beats Expectations By $0.31 EPS

Gentherm (NASDAQ:THRM) issued its earnings results on Thursday. The auto parts company reported $0.84 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.31, FiscalAI reports. Gentherm had a return on equity of 10.07% and a net margin of 1.22%.The firm had revenue of $393.71 million for the quarter, compared to the consensus estimate of $363.81 million. During the same quarter in the previous year, the company posted $0.51 earnings per share. The business’s quarterly revenue was up 11.2% compared to the same quarter last year.

Here are the key takeaways from Gentherm’s conference call:

• Gentherm reported a record first-quarter with $394 million in product revenue (up 11.3% YoY), $49.3 million adjusted EBITDA (12.5% margin), and $0.84 adjusted EPS, reflecting strong execution and margin expansion.
• The planned combination with Modine Performance Technologies (HSR cleared) is on track to close later this year and is projected to create a larger thermal/flow leader targeting roughly $3.5 billion in revenue and >$0.5 billion of earnings over five years.
• Management is maintaining full‑year guidance despite Q1 strength because of macro/geopolitical uncertainty and an estimated ~$20 million of incremental annual costs (freight, petrochemicals, processing) that begin in Q2 and may depress margins in Q2–Q3 as customer recoveries lag.
• Diversification progress continued with production launches for KUKA Home, a new North American furniture win, and an FDA 510(k) submission for the ThermAffyx medical warming/securement system, with ThermAffyx revenue expected later this year and furniture potentially reaching $50–$100 million by 2028.
• An organizational realignment and operational-excellence initiatives are beginning to show results, with an expected ~$10 million annual OpEx run‑rate benefit (about half realized in 2026), improved cash flow trends, and continued focus on margin and asset utilization.

Gentherm Price Performance

Shares of NASDAQ:THRM opened at $29.61 on Friday. Gentherm has a fifty-two week low of $24.05 and a fifty-two week high of $39.48. The business has a 50-day moving average of $29.65 and a two-hundred day moving average of $33.74. The stock has a market capitalization of $907.55 million, a P/E ratio of 48.54 and a beta of 1.34. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.92 and a quick ratio of 1.30.

Analyst Upgrades and Downgrades

THRM has been the subject of several research reports. Wall Street Zen lowered Gentherm from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 21st. JPMorgan Chase & Co. dropped their price objective on Gentherm from $42.00 to $37.00 and set a “neutral” rating on the stock in a report on Thursday. Loop Capital set a $38.00 price objective on shares of Gentherm in a research report on Wednesday, February 25th. Weiss Ratings cut shares of Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, February 9th. Finally, Stifel Nicolaus reduced their target price on shares of Gentherm from $41.00 to $37.00 and set a “buy” rating for the company in a research note on Tuesday, April 14th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Gentherm presently has a consensus rating of “Hold” and a consensus price target of $37.40.

Key Headlines Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Q1 beat and record revenue — Gentherm reported EPS of $0.84 vs. consensus ~$0.51 and revenue of $393.7M (up 11.2% YoY), a clear beat that supports near‑term earnings momentum. Gentherm Reports Record Q1 Results, Confirms 2026 Outlook
• Positive Sentiment: Unusually high trading volume — Volume is well above average as investors react to the beat and commentary, increasing liquidity and amplifying price movement (short‑term positive pressure).
• Neutral Sentiment: Guidance confirmed but not raised — Management reiterated its FY2026 revenue outlook (~$1.5B–$1.6B), which supports the quarter’s credibility but stops short of an upside revision that would likely drive a stronger rally. Earnings Report & Slides
• Neutral Sentiment: Management commentary available — The earnings call / transcript and slide deck provide detail on regional demand, margin drivers and product mix for investors to assess sustainability of the beat. Review the transcript for guidance on margin trajectory and order cadence. Q1 2026 Earnings Call Transcript
• Negative Sentiment: JPMorgan cuts price target — JPMorgan lowered its PT from $42 to $37 and set a “neutral” rating, which can cap short‑term upside and weigh on investor sentiment despite the beat. Broker Price Target Note

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Los Angeles Capital Management LLC bought a new position in Gentherm in the 4th quarter worth approximately $35,000. Tower Research Capital LLC TRC boosted its position in shares of Gentherm by 232.0% in the second quarter. Tower Research Capital LLC TRC now owns 3,154 shares of the auto parts company’s stock valued at $89,000 after acquiring an additional 2,204 shares during the period. iSAM Funds UK Ltd bought a new stake in shares of Gentherm in the third quarter valued at approximately $111,000. Quadrant Capital Group LLC acquired a new stake in shares of Gentherm in the third quarter worth $174,000. Finally, State of Wyoming grew its stake in shares of Gentherm by 74.2% in the second quarter. State of Wyoming now owns 6,752 shares of the auto parts company’s stock worth $191,000 after acquiring an additional 2,877 shares during the last quarter. Institutional investors and hedge funds own 97.13% of the company’s stock.

Gentherm Company Profile

Gentherm Incorporated (NASDAQ: THRM) is a global developer and supplier of advanced thermal management technologies for automotive, specialty vehicle, medical, consumer and industrial markets. The company’s core focus lies in delivering integrated heating and cooling systems designed to enhance energy efficiency, comfort and safety across a wide range of applications. Gentherm’s product portfolio includes seat thermal systems, heated and ventilated seating surfaces, steering wheel heaters, battery thermal management solutions, and climate systems for electric vehicles.

In the automotive sector, Gentherm partners with leading original equipment manufacturers to engineer and manufacture high-performance thermal solutions that meet stringent industry demands for reduced weight, lower energy consumption and improved passenger comfort.