Gentherm Q3 adjusted EPS and EBITDA miss estimates on margin pressure

By Reuters News


Overview

  • U.S. thermal tech maker's Q3 product revenue rose 4.4% yr/yr (ex-FX)

  • Adjusted EPS and adjusted EBITDA for Q3 missed analyst expectations

  • Company completed Modine Performance Technologies acquisition and repurchased $60 mln of stock in October


Outlook

  • Gentherm raises 2026 product revenue guidance to $1.825 bln-$1.925 bln

  • Company now expects 2026 adjusted EBITDA of $210 mln-$230 mln

  • Gentherm sees 2026 adjusted free cash flow of $100 mln-$120 mln


Result Drivers

  • AUTOMOTIVE OUTPERFORMANCE - Co said Automotive Climate and Comfort Solutions revenue grew 8.8% yr/yr, outperforming relevant market vehicle production

  • MARGIN PRESSURE - Co attributed lower gross margin to FX, higher material costs and inflation, partially offset by operating leverage

  • NEW PRODUCT LAUNCHES - Co launched ThermAffyx Patient Safety System and Puls.A, expanding technology portfolio


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Product Revenue

$405.10 mln

Q3 Adjusted EPS

Miss

$0.33

$0.64 (5 Analysts)

Q3 Net Loss

$2.59 mln

Q3 Adjusted EBITDA

Miss

$45.004 mln

$46.57 mln (6 Analysts)

Q3 Operating Income

$14.36 mln

Q3 Pretax Profit

$10.84 mln


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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