THRM · Gentherm Incorporated

Gentherm's first quarter 2026 results reflect solid operational execution and the early benefits of a more robust operating system. Revenue reached a record $393.7 million, up 11.3% year-over-year, or 7.2% excluding foreign exchange, driven by strong Automotive Climate and Comfort Solutions growth of 13.6% (9.8% ex-FX), which outperformed S&P Global's light vehicle production by 14 percentage points. Gross margin improved to 24.7% from 24.4%, aided by operating leverage and net material performance, partially offset by annual price reductions and higher labor costs. Net income swung to $4.2 million from a loss of $0.1 million in the prior year, while adjusted EBITDA rose to $49.3 million (12.5% of revenue) from $39.3 million (11.1%). Adjusted diluted EPS increased to $0.84 from $0.51. The company also announced a transformational combination with Modine Performance Technologies, which remains on track to close by year-end. Management reaffirmed full-year 2026 guidance of product revenues between $1.5 billion and $1.6 billion, adjusted EBITDA of $175 million to $195 million, and adjusted free cash flow of $80 million to $100 million, based on current tariffs and a low single-digit decline in relevant light vehicle production. The quarter also saw $395 million in automotive new business awards and progress in new markets, including first home and office solutions to KUKA Home in Asia and a 510(k) submission for the ThermAffyx Patient Safety System.