Gentherm (NASDAQ:THRM) Releases Quarterly Earnings Results, Misses Estimates By $0.15 EPS

Gentherm (NASDAQ:THRM) issued its quarterly earnings results on Thursday. The auto parts company reported $0.49 earnings per share for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.15), FiscalAI reports. Gentherm had a net margin of 2.08% and a return on equity of 9.55%. The company had revenue of $382.79 million during the quarter, compared to analysts’ expectations of $371.91 million. During the same period in the prior year, the business posted $0.29 earnings per share. The company’s quarterly revenue was up 8.5% compared to the same quarter last year.

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

• Gentherm plans to combine with Modine Performance Technologies (expected close by end of 2026), creating a ~$2.6B pro forma company with identified near-term run-rate synergies of ~$25M and a management target to scale to ~$3.5B revenue and >$500M earnings by 2030.
• Management validated its go?beyond?automotive strategy with a >$300M lifetime commercial funnel outside light vehicles and rapid wins in home & office, commercial vehicles, and powersports, including an immediate supply win with a global furniture brand.
• Gentherm submitted a 510(k) for the Thermafix patient warming/securement system, expects revenue from that product later this year, and projects medical revenue growth into the high?teens as it refreshes the product roadmap.
• 2026 guidance calls for revenue of $1.5–$1.6B (?+3% midpoint ex?FX), Adjusted EBITDA of $175–$195M (?12% margin midpoint), and adjusted free cash flow of $80–$100M; the company also provided a preliminary 2027 revenue outlook of ~$1.7B (+~10% vs. 2026 midpoint).
• 2025 Adjusted EBITDA fell to $175M (11–11.7% of sales) from 12.6% due to higher material costs, unfavorable mix and footprint realignment, and management expects footprint transitions to be a ~60bp profit drag in 2026.

Gentherm Trading Down 0.5%

Shares of THRM stock traded down $0.17 on Thursday, hitting $30.75. 213,270 shares of the stock traded hands, compared to its average volume of 256,600. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.33 and a current ratio of 1.96. Gentherm has a twelve month low of $22.75 and a twelve month high of $39.48. The firm’s 50-day moving average price is $35.77 and its two-hundred day moving average price is $35.58. The stock has a market capitalization of $938.34 million, a PE ratio of 30.69 and a beta of 1.34.

Gentherm News Summary

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Reported record full-year product revenue of ~$1.5B, increased operating cash flow, reduced net leverage to ~0.2x, and gave 2026 product revenue guidance of $1.5B–$1.6B with a preliminary ~ $1.7B outlook for 2027 — this supports a constructive medium-term growth story. GlobeNewswire Release
• Positive Sentiment: Quarterly product revenue beat consensus (Q4 product revenue $382.8M vs. estimates ~ $371.9M) and management issued strong adjusted EBITDA / cash-flow guidance, which multiple outlets say supported a share rally. Investing.com
• Positive Sentiment: Freedom Capital Markets initiated coverage with a Buy and set a $41 price target, adding fresh analyst support after the results. MSN / Freedom Capital
• Neutral Sentiment: The company hosted the earnings call and released a full transcript with management comments on strategic initiatives (Modine combination, footprint realignment) — useful for modeling but not a near-term catalyst by itself. Yahoo Finance Transcript
• Neutral Sentiment: Brokerage consensus remains mixed; some services show a “Hold” consensus despite new coverage and price targets, reflecting differing views on near-term profitability vs. long-term growth. American Banking News
• Negative Sentiment: GAAP EPS disappointed: Q4 GAAP diluted EPS was $0.10 and reported EPS of $0.49 missed many sell?side consensus figures (Zacks notes a miss vs. $0.57–$0.64 estimates), which raises near-term concern on profitability. Zacks
• Negative Sentiment: Margins and net income fell year-over-year (gross margin compression, full?year net income decline), and adjusted EBITDA was slightly lower than prior year — these profitability headwinds are the primary risk to near-term multiples. Quiver / Release Summary

Analyst Ratings Changes

A number of equities analysts have commented on THRM shares. Wall Street Zen raised Gentherm from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 25th. Weiss Ratings downgraded Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, February 9th. Roth Mkm restated a “buy” rating and issued a $44.00 price objective on shares of Gentherm in a report on Friday, October 24th. Finally, Robert W. Baird set a $42.00 target price on shares of Gentherm in a report on Friday, October 24th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $43.00.

Institutional Trading of Gentherm

A number of hedge funds and other institutional investors have recently made changes to their positions in THRM. Dimensional Fund Advisors LP lifted its holdings in Gentherm by 1.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,378,213 shares of the auto parts company’s stock valued at $50,128,000 after acquiring an additional 16,529 shares during the last quarter. Ameriprise Financial Inc. lifted its stake in shares of Gentherm by 42.8% in the 3rd quarter. Ameriprise Financial Inc. now owns 635,066 shares of the auto parts company’s stock valued at $21,630,000 after purchasing an additional 190,432 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Gentherm by 385.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 543,200 shares of the auto parts company’s stock worth $18,501,000 after purchasing an additional 431,271 shares during the period. Qube Research & Technologies Ltd grew its holdings in shares of Gentherm by 56.5% during the 2nd quarter. Qube Research & Technologies Ltd now owns 469,097 shares of the auto parts company’s stock worth $13,271,000 after purchasing an additional 169,401 shares during the period. Finally, Invesco Ltd. increased its position in shares of Gentherm by 16.9% during the 3rd quarter. Invesco Ltd. now owns 358,821 shares of the auto parts company’s stock worth $12,221,000 after purchasing an additional 51,996 shares during the last quarter. Institutional investors and hedge funds own 97.13% of the company’s stock.

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.