Gentherm Q2 adjusted EBITDA beats estimates, sets $400 million buyback

Gentherm Incorporated

Gentherm Incorporated

THRM

0.00


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


Reuters Recommended Reads

  • July 22 - OPmobility revenue falls, but outpaces global vehicle production

  • July 22 - Valeo first-half sales fall, but beat market expectations

  • July 21 - GM beats Q2 revenue, adjusted EPS expectations, raises 2026 outlook


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