Gentherm (NASDAQ:THRM) Releases Earnings Results, Beats Expectations By $0.19 EPS

Posted by on Jul 25th, 2026

Gentherm (NASDAQ:THRM – Get Free Report) released its quarterly earnings results on Thursday. The auto parts company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.19, FiscalAI reports. Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The company had revenue of $404.94 million during the quarter, compared to the consensus estimate of $382.90 million. During the same period in the prior year, the firm earned $0.54 earnings per share. Gentherm’s revenue was up 11.0% on a year-over-year basis.

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

  • Gentherm raised full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted free cash flow after a strong first half. Management said it now expects revenue of about $1.6 billion at the midpoint, implying roughly 5% growth despite an expected decline in light vehicle production.
  • Second-quarter results exceeded expectations, with revenue up 11% year over year to a quarterly record of $416 million and adjusted EPS rising 39% to $0.75. Automotive Climate and Comfort Solutions outperformed broader vehicle production, and the company said its auto new business awards totaled about $690 million in the quarter and more than $1 billion year to date.
  • Management highlighted momentum beyond automotive, including new home and office wins and the FDA 510(k) clearance for ThermAffyx, a new medical product expected to begin initial sales in the third quarter. Gentherm also completed the acquisition of Innovative Medical Equipment (IME), which it sees as a strategic fit with strong cross-selling potential.
  • Profitability improved operationally but was partially offset by one-time and timing-related headwinds. Adjusted EBITDA margin was 11.7%, down slightly year over year, due to inflation recovery timing, inventory reductions, and warranty accruals in automotive and medical; management said those warranty charges should not be viewed as a recurring run-rate issue.
  • The Modine Performance Technologies merger remains on track, with closing now expected early in the fourth quarter. Gentherm said the combined company would be more diversified, could exceed $3.5 billion in revenue by 2030, and expects to generate over $1 billion of cumulative unlevered free cash flow through 2030.

Gentherm Stock Down 6.4%

NASDAQ:THRM opened at $42.69 on Friday. The company has a market cap of $1.31 billion, a PE ratio of 49.07 and a beta of 1.38. Gentherm has a twelve month low of $27.00 and a twelve month high of $48.35. The company has a current ratio of 2.06, a quick ratio of 1.36 and a debt-to-equity ratio of 0.38. The company’s 50 day moving average is $35.44 and its two-hundred day moving average is $32.95.

Analysts Set New Price Targets

A number of analysts recently commented on the company. JPMorgan Chase & Co. upped their price objective on Gentherm from $41.00 to $48.00 and gave the company a “neutral” rating in a research report on Friday. Robert W. Baird raised their price objective on shares of Gentherm from $33.00 to $34.00 and gave the company a “neutral” rating in a research report on Friday, April 24th. Stifel Nicolaus raised their target price on shares of Gentherm from $44.00 to $59.00 and gave the company a “buy” rating in a research note on Friday. Weiss Ratings upgraded shares of Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 8th. Finally, Wall Street Zen raised shares of Gentherm from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 25th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Gentherm currently has a consensus rating of “Hold” and a consensus target price of $43.60.

Check Out Our Latest Research Report on THRM

Institutional Investors Weigh In On Gentherm

Several institutional investors and hedge funds have recently made changes to their positions in THRM. Bank of Montreal Can acquired a new position in Gentherm in the 4th quarter worth approximately $206,000. Morningstar Investment Management LLC acquired a new stake in Gentherm during the 3rd quarter valued at approximately $309,000. Caxton Associates LLP boosted its holdings in shares of Gentherm by 4.7% in the 3rd quarter. Caxton Associates LLP now owns 8,294 shares of the auto parts company’s stock valued at $282,000 after acquiring an additional 372 shares during the last quarter. Boothbay Fund Management LLC acquired a new stake in shares of Gentherm in the third quarter worth $248,000. Finally, Gamco Investors INC. ET AL acquired a new stake in shares of Gentherm in the third quarter worth $272,000. 97.13% of the stock is currently owned by institutional investors and hedge funds.

Gentherm News Roundup

Here are the key news stories impacting Gentherm this week:

  • Positive Sentiment: Gentherm reported Q2 EPS of $0.75, ahead of consensus estimates, and revenue of $404.94 million, also above expectations, which signals stronger-than-expected operational performance.
  • Positive Sentiment: The company raised its 2026 revenue outlook to $1.6 billion-$1.7 billion, reinforcing confidence that demand and execution are improving.
  • Positive Sentiment: Gentherm announced a new $400 million stock buyback program, a shareholder-friendly move that can support the stock by reducing the share count and signaling management believes the shares are undervalued. Article: Gentherm Reports 2026 Second Quarter Results and Announces a New Increased Stock Repurchase Authorization
  • Neutral Sentiment: JPMorgan raised its price target on Gentherm to $48 from $41 but kept a neutral rating, suggesting improved valuation expectations without a fully bullish call.
  • Neutral Sentiment: Reports of increased short-interest activity were not meaningful because the reported short interest was effectively zero, so this does not appear to be a real trading driver.

Gentherm announced that its board has approved a share repurchase program on Thursday, July 23rd that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the auto parts company to repurchase up to 36.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Gentherm Company Profile

(Get Free Report)

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.

Featured Stories

Earnings History for Gentherm (NASDAQ:THRM)

Receive News & Ratings for Gentherm Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gentherm and related companies with MarketBeat.com's FREE daily email newsletter.