Gentherm (NASDAQ:THRM) Posts Quarterly Earnings Results, Misses Expectations By $0.31 EPS

Posted by George Bondi on Oct 22nd, 2026

Gentherm (NASDAQ:THRM – Get Free Report) posted its earnings results on Thursday. The auto parts company reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.31), FiscalAI reports. Gentherm had a return on equity of 12.06% and a net margin of 1.68%. The business had revenue of $405.10 million during the quarter, compared to analyst estimates of $404.16 million. During the same quarter in the prior year, the company earned $0.73 EPS. The company’s revenue was up 4.7% on a year-over-year basis.

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 NASDAQ:THRM traded down $2.37 during midday trading on Thursday, reaching $26.07. The company had a trading volume of 1,146,992 shares, compared to its average volume of 527,782. The company’s 50 day moving average price is $36.22 and its 200 day moving average price is $35.11. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38. The stock has a market cap of $801.49 million, a P/E ratio of 29.85, a P/E/G ratio of 0.68 and a beta of 1.37. Gentherm has a 52-week low of $25.31 and a 52-week high of $48.35.

Gentherm Announces Dividend

The firm also recently announced a special dividend, which was paid on Wednesday, October 7th. Stockholders of record on Monday, September 28th were paid a dividend of $1.90 per share.

Insiders Place Their Bets

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

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

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Zacks Research downgraded Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Freedom Capital lowered Gentherm from a “strong-buy” rating to a “hold” rating in a report on Friday, July 24th. Roth Capital reaffirmed a “buy” rating and set a $50.00 target price on shares of Gentherm in a research report on Wednesday, July 29th. Stifel Nicolaus set a $48.00 target price on Gentherm in a research report on Monday. Finally, Wall Street Zen downgraded Gentherm from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Four investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $44.67.

View Our Latest Analysis on THRM

Key Stories Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

Positive Sentiment: Third-quarter product revenue increased 4.7% to $405.1 million, slightly above the roughly $404.2 million analyst consensus. Automotive Climate and Comfort Solutions revenue rose 8.8%, while medical revenue increased 14.6%. Gentherm Reports 2026 Third Quarter Results
Positive Sentiment: Gentherm secured $555 million in new automotive business awards and updated full-year guidance to include the recently completed Modine Performance Technologies combination. Product-revenue guidance is now $1.825 billion-$1.925 billion, with adjusted EBITDA guidance of $210 million-$230 million. Gentherm Q3 Earnings Metrics
Positive Sentiment: The company repurchased $60 million of stock in October and has approximately $340 million remaining under its $400 million authorization. It also paid a $63.5 million special dividend, potentially supporting shareholder returns. Gentherm Reports Third-Quarter Revenue and Net Loss

About Gentherm

(Get Free Report)

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.