Gentherm (NASDAQ:THRM) Posts Earnings Results, Beats Estimates By $0.33 EPS

Gentherm (NASDAQ:THRM) posted its quarterly earnings data on Thursday. The auto parts company reported $0.84 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.33, FiscalAI reports. The business had revenue of $393.71 million for the quarter, compared to analyst estimates of $363.82 million. Gentherm had a return on equity of 10.07% and a net margin of 1.22%.The firm’s revenue for the quarter was up 11.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.51 earnings per share.

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 THRM stock traded up $2.70 during trading hours on Thursday, hitting $31.45. The company had a trading volume of 224,603 shares, compared to its average volume of 253,888. Gentherm has a 12 month low of $24.05 and a 12 month high of $39.48. The firm has a market capitalization of $963.94 million, a price-to-earnings ratio of 51.56 and a beta of 1.34. The firm’s fifty day moving average is $29.69 and its 200 day moving average is $33.77. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.30 and a current ratio of 1.92.

Analysts Set New Price Targets

A number of research firms have recently commented on THRM. Weiss Ratings lowered Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, February 9th. Wall Street Zen lowered Gentherm from a “strong-buy” rating to a “buy” rating in a research note on Saturday, February 21st. Loop Capital set a $38.00 price target on Gentherm in a research note on Wednesday, February 25th. Robert W. Baird lowered their price target on Gentherm from $42.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday, February 20th. Finally, Argus upgraded Gentherm to a “hold” rating in a research note on Friday, February 27th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $38.60.

Institutional Investors Weigh In On Gentherm

Large investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC bought a new stake in shares of Gentherm in the 4th quarter valued at approximately $35,000. Tower Research Capital LLC TRC grew its stake in shares of Gentherm by 232.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,154 shares of the auto parts company’s stock valued at $89,000 after purchasing an additional 2,204 shares during the period. iSAM Funds UK Ltd bought a new stake in shares of Gentherm in the 3rd quarter valued at approximately $111,000. Quadrant Capital Group LLC bought a new stake in Gentherm during the third quarter worth about $174,000. Finally, Bank of Montreal Can bought a new stake in Gentherm during the fourth quarter worth about $206,000. 97.13% of the stock is currently owned by institutional investors.

About Gentherm

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.