Gentherm (NASDAQ:THRM) Releases Earnings Results, Misses Estimates By $0.31 EPS

Gentherm (NASDAQ:THRM) announced its earnings results on Thursday. The auto parts company reported $0.33 earnings per share (EPS) 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 0.57% and a return on equity of 10.30%. The firm’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.73 EPS.

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 Stock Performance

Shares of THRM opened at $28.60 on Friday. The firm has a market cap of $879.16 million, a PE ratio of 95.33, a PEG ratio of 0.60 and a beta of 1.37. The stock’s fifty day moving average price is $35.57 and its two-hundred day moving average price is $35.05. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.05 and a quick ratio of 1.49. Gentherm has a 1 year low of $25.31 and a 1 year 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 issued a dividend of $1.90 per share.

Gentherm announced that its board has initiated a share buyback program on Thursday, July 23rd that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the auto parts company to purchase up to 36.2% of its shares through open market purchases. Share repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Freedom Capital lowered shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 24th. CJS Securities started coverage on Gentherm in a report on Monday, September 14th. They issued an “outperform” rating and a $50.00 target price for the company. Weiss Ratings raised Gentherm from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Wall Street Zen downgraded Gentherm from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Roth Capital reiterated a “buy” rating and set a $50.00 price target on shares of Gentherm in a report on Wednesday, July 29th. Four analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Gentherm currently has an average rating of “Hold” and a consensus price target of $44.17.

Insiders Place Their Bets

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

Key Stories Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Modine integration boosts 2026 outlook: Gentherm raised full-year product-revenue guidance to $1.825 billion–$1.925 billion, up from $1.55 billion–$1.65 billion previously. Adjusted EBITDA guidance increased to $210 million–$230 million, while adjusted free cash flow is expected at $100 million–$120 million. The guidance reflects the addition of Modine Performance Technologies beginning in the fourth quarter. Gentherm Updates Outlook After Modine Performance Integration
• Positive Sentiment: Strong business momentum and capital returns: Third-quarter automotive climate and comfort revenue rose 8.8% year over year, medical revenue increased 14.6%, and Gentherm secured $555 million in new automotive awards. The company also repurchased $60 million of stock in October, with approximately $340 million remaining under its authorization, and paid a $2.07-per-share special dividend. Gentherm Reports 2026 Third Quarter Results
• Positive Sentiment: Analysts remain bullish despite target reductions: JPMorgan lowered its target from $48 to $47 while retaining an “overweight” rating, and Stifel reduced its target from $48 to $46 while maintaining a “buy” rating. Both targets imply substantial upside from the referenced share price. JPMorgan Analyst Rating
• Neutral Sentiment: Quarterly revenue exceeded expectations: Third-quarter revenue increased 4.7% to $405.1 million, slightly above the $404.2 million consensus estimate. The company described results as in line with expectations following the Modine transaction. Gentherm Q3 2026 Earnings Call Transcript
• Negative Sentiment: Profitability materially missed estimates: Adjusted EPS was $0.33, below the $0.64–$0.66 consensus, and declined from $0.73 a year earlier. Gentherm reported a GAAP loss of $2.6 million versus prior-year net income of $14.9 million. Gross margin fell to 23.3% from 24.6%, while operating cash flow dropped to $36 million from $87.8 million, reflecting material-cost, inflation and integration pressures. Gentherm Q3 Earnings Miss

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.