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

Gentherm (NASDAQ:THRM) issued its earnings results on Thursday. The auto parts company reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.31), FiscalAI reports. The company had revenue of $405.10 million for the quarter, compared to analysts’ expectations of $404.16 million. Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The company’s revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.73 earnings per share.

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

• Modine transaction expands Gentherm’s growth platform: Management said the combined company has a path to more than $3.5 billion in revenue and over $500 million in adjusted EBITDA by 2030, supported by diversification into power generation, commercial vehicles and heavy-duty equipment. The company reaffirmed its $25 million cost-synergy target.
• Automotive demand and new business awards remained strong: Gentherm reported $555 million of automotive awards in the quarter and more than $1.6 billion year to date, keeping it on track for at least $2 billion of awards for a fourth consecutive year. Third-quarter automotive revenue rose 4.7%, with climate and comfort solutions up 8.8% and lumbar and massage revenue increasing more than 25%.
• New-market initiatives are gaining traction: The company launched its ThermAffyx medical safety system, acquired Innovative Medical Equipment, and secured an approximately $25 million lifetime-revenue air-moving-device award with an Indian automaker. Gentherm also said its home-and-office business has visibility to $30 million of annualized revenue by 2028 and maintains a pipeline supporting its $100 million target.
• Near-term profitability faced inflation and transaction-related pressure: Third-quarter adjusted EBITDA margin declined to 11.1% from 12.7%, while adjusted EPS fell to $0.33 from $0.73, reflecting material and freight inflation, foreign exchange headwinds, and a higher tax rate. Management said customer recovery negotiations are continuing but may involve a lag, and inflationary pressure could persist into 2027.
• Share repurchases are expected to continue: Gentherm has repurchased approximately 2 million shares for $60 million since the Modine transaction closed and said it expects to remain active in the fourth quarter, with roughly $340 million remaining under its authorization.

Gentherm Trading Down 10.6%

Shares of THRM stock traded down $3.02 during mid-day trading on Thursday, reaching $25.41. The stock had a trading volume of 1,008,905 shares, compared to its average volume of 527,061. The firm has a market capitalization of $781.23 million, a PE ratio of 29.21, a price-to-earnings-growth ratio of 0.68 and a beta of 1.37. The stock’s 50-day moving average price is $36.22 and its two-hundred day moving average price is $35.11. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38. Gentherm has a 52-week low of $25.52 and a 52-week high of $48.35.

Gentherm Dividend Announcement

The company also recently disclosed a special dividend, which was paid on Wednesday, October 7th. Shareholders of record on Monday, September 28th were given a $1.90 dividend.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Roth Capital reaffirmed a “buy” rating and issued a $50.00 price target on shares of Gentherm in a research note on Wednesday, July 29th. Zacks Research downgraded Gentherm from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Stifel Nicolaus set a $48.00 price objective on Gentherm in a research note on Monday. Freedom Capital lowered Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 24th. Finally, CJS Securities initiated coverage on shares of Gentherm in a report on Monday, September 14th. They issued an “outperform” rating and a $50.00 target price on the stock. Four investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $44.67.

Gentherm declared that its board has initiated a share repurchase plan on Thursday, July 23rd that permits the company to buy back $400.00 million in outstanding shares. This repurchase authorization permits the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Gentherm

In other news, SVP Wayne Kauffman, III sold 4,700 shares of the stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $43.21, for a total transaction of $203,087.00. Following the completion of the sale, the senior vice president directly owned 27,421 shares in the company, valued at approximately $1,184,861.41. This represents a 14.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.10% of the company’s stock.

Gentherm News Roundup

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Third-quarter product revenue increased 4.7% to $405.1 million, slightly above the roughly $404.2 million analyst consensus. Automotive Climate and Comfort Solutions revenue rose 8.8%, while medical revenue increased 14.6%. Gentherm Reports 2026 Third Quarter Results
• Positive Sentiment: Gentherm secured $555 million in new automotive business awards and updated full-year guidance to include the recently completed Modine Performance Technologies combination. Product-revenue guidance is now $1.825 billion-$1.925 billion, with adjusted EBITDA guidance of $210 million-$230 million. Gentherm Q3 Earnings Metrics
• Positive Sentiment: The company repurchased $60 million of stock in October and has approximately $340 million remaining under its $400 million authorization. It also paid a $63.5 million special dividend, potentially supporting shareholder returns. Gentherm Reports Third-Quarter Revenue and Net Loss

About Gentherm

Gentherm Incorporated (NASDAQ: THRM) develops and manufactures thermal management and comfort technologies for the automotive and medical industries. The company’s automotive products include heated and cooled seating systems, climate-controlled seats, heated steering wheels, seat ventilation, and other technologies designed to improve passenger comfort and manage temperature.

Gentherm also provides battery thermal management systems and related technologies that support the performance, efficiency, and safety of electrified vehicles.