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

Gentherm (NASDAQ:THRM) posted its earnings results on Thursday. The auto parts company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.15), FiscalAI reports. Gentherm had a return on equity of 9.55% and a net margin of 2.08%.The company had revenue of $382.79 million during the quarter, compared to analyst estimates of $371.91 million. During the same quarter last year, the firm posted $0.29 earnings per share. The firm’s revenue for the quarter 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 Up 4.4%

Shares of THRM traded up $1.39 during trading hours on Friday, hitting $32.70. 128,659 shares of the stock traded hands, compared to its average volume of 262,724. The business has a fifty day moving average of $35.64 and a 200-day moving average of $35.55. The firm has a market capitalization of $997.85 million, a PE ratio of 32.70 and a beta of 1.34. Gentherm has a 1-year low of $22.75 and a 1-year high of $39.48. The company has a current ratio of 1.96, a quick ratio of 1.33 and a debt-to-equity ratio of 0.26.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Robert W. Baird set a $36.00 price target on Gentherm in a report on Friday. Wall Street Zen upgraded Gentherm from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 25th. Weiss Ratings cut Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 9th. Finally, Roth Mkm reissued a “buy” rating and issued a $44.00 price target on shares of Gentherm in a report on Friday, October 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $41.00.

Hedge Funds Weigh In On Gentherm

A number of hedge funds and other institutional investors have recently bought and sold shares of THRM. Los Angeles Capital Management LLC acquired a new position in shares of Gentherm in the 4th quarter valued at $35,000. Tower Research Capital LLC TRC raised its position in shares of Gentherm by 232.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,154 shares of the auto parts company’s stock valued at $89,000 after acquiring an additional 2,204 shares during the period. iSAM Funds UK Ltd bought a new position in Gentherm during the 3rd quarter worth approximately $111,000. Quadrant Capital Group LLC acquired a new position in Gentherm during the third quarter valued at approximately $174,000. Finally, State of Wyoming raised its holdings in Gentherm by 74.2% in the second quarter. State of Wyoming now owns 6,752 shares of the auto parts company’s stock worth $191,000 after purchasing an additional 2,877 shares during the period. 97.13% of the stock is owned by institutional investors.

Gentherm News Summary

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Company achieved record annual product revenue of ~$1.5B, increased operating cash flow, reduced net leverage to ~0.2x and secured large new business awards ($2.2B for the year), supporting growth and liquidity. GlobeNewswire Release
• Positive Sentiment: Management provided 2026 guidance (product revenues $1.5B–$1.6B; adjusted EBITDA $175M–$195M; adjusted free cash flow $80M–$100M) and a preliminary 2027 revenue outlook (~$1.7B), which investors view as constructive for medium-term revenue trajectory. Guidance in Press Release
• Positive Sentiment: Freedom Capital Markets initiated coverage with a Buy and a roughly $41 price target, adding a fresh analyst endorsement that can support demand for the stock. MSN / Freedom Coverage
• Neutral Sentiment: Top-line beat in Q4 — product revenue $382.8M vs. ~372M consensus/estimates noted by some outlets — but the market is parsing revenue beats versus profit metrics. Investing.com Coverage
• Neutral Sentiment: Company commentary and slides from the earnings call outline the Modine Performance Technologies combination, product roadmaps and footprint actions — important for modeling but subject to execution timing. Earnings Call Transcript Slide Deck
• Neutral Sentiment: Reported short-interest data in some feeds shows zero shares / NaN changes — likely a data anomaly and not a reliable signal for investor positioning.
• Negative Sentiment: Q4 EPS (GAAP) missed consensus on many readouts: reported $0.49 vs. street ~ $0.64 (Zacks/aggregators), which pressures near-term investor sentiment despite revenue strength. Zacks Coverage
• Negative Sentiment: Profitability weakened: GAAP net income and diluted EPS fell materially year-over-year (net income down, GAAP EPS declined) and gross margin contracted due to higher material costs and footprint realignment expenses — a risk to near-term margins. Quiver / Press Summary
• Negative Sentiment: The planned Modine combination brings potential regulatory, integration and one-time costs that could create volatility or dilute near-term free cash flow if execution slips. Transaction Risks in Press Release

Gentherm Company Profile

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.