Gentherm Q3 adjusted EPS and EBITDA miss estimates on margin pressure
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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(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.)