Overview

• US thermal tech firm's Q2 revenue rose 11% yr/yr to record level

• Q2 adjusted EBITDA beat analyst expectations

• Company authorized new $400 mln stock repurchase program

Outlook

• Gentherm raised 2026 product revenue guidance to $1.55 bln–$1.65 bln

• Company now sees 2026 adjusted EBITDA at $185 mln–$200 mln

• Gentherm expects 2026 adjusted free cash flow of $85 mln–$100 mln

Result Drivers

• AUTOMOTIVE GROWTH - Automotive Climate and Comfort Solutions revenue rose 14.1% yr/yr, outperforming relevant market vehicle production by 14 percentage points

• HIGHER MATERIAL COSTS - Gross margin declined to 23.2% from 23.9% due to higher material costs and increased warranty accruals, partially offset by operating leverage

• NEW BUSINESS AND MARKET EXPANSION - Secured $690 mln in new automotive business awards and expanded into home, office, and medical markets

Company press release: ID:nGNXmg8ks

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Product Revenue		$416.17 mln
Q2 EPS		$0.14
Q2 Net Income		$4.42 mln
Q2 Adjusted EBITDA	Beat	$48.79 mln	$42.01 mln (6 Analysts)
Q2 Operating Income		$10.69 mln
Q2 Pretax Profit		$7.32 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Gentherm Inc is $41.50, about 15.1% above its July 22 closing price of $36.05

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

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