Gentherm Q2 2025 Earnings: Steady Performance Amidst Challenges

Gentherm Inc reported Q2 2025 revenues of $375 million, a slight decrease from the previous year. The company secured over $600 million in new automotive business awards, contributing to a year-to-date total of $1 billion. Automotive Climate and Comfort Solutions revenue increased 3.8%, while gross margin decreased to 23.9% due to higher material and labor costs. Net income dropped to $0.5 million, and adjusted EBITDA decreased to $45.9 million. The company narrowed its full-year guidance, with a revenue range of $1.43 billion to $1.5 billion and an adjusted EBITDA margin rate of 11.7% to 12.5%.

Gentherm Inc. (NASDAQ: THRM) has reported its financial results for the second quarter of 2025, ending June 30, 2025. The company delivered revenues of $375 million, a slight decrease of 0.2% compared to the previous year's $375.7 million. Despite the decrease in revenue, Gentherm secured over $600 million in new automotive business awards, bringing the year-to-date total to $1 billion. This growth in new business is attributed to the company's continued innovation, technology leadership, and strong customer relationships.

The Automotive Climate and Comfort Solutions revenue increased by 3.8% year over year, or 2.5% adjusting for foreign currency translation. This performance was stronger than the S&P Global's mid-July light vehicle production report in relevant markets by 10 basis points. However, the gross margin decreased to 23.9% from 25.7% in the prior year, primarily due to higher material and labor costs. Net income dropped to $0.5 million from $18.9 million in the prior year, mainly driven by net unrealized foreign currency losses of $18.9 million. Adjusted EBITDA decreased to $45.9 million from $49.9 million in the prior year, representing a decrease of 12.2% of revenue compared to 13.3% in the prior year.

Gentherm's full-year guidance for 2025 has been narrowed. The company now expects product revenues to range from $1.43 billion to $1.5 billion, with an adjusted EBITDA margin rate of 11.7% to 12.5%. The capital expenditure range has also been revised to $55 million to $65 million. The company's focus remains on executing strategic priorities and driving operating efficiencies while managing operations in a measured manner due to the level of uncertainty in the macro environment.

The company repurchased $10.0 million of its common stock and maintained net leverage at approximately 0.5x, with liquidity up to $416 million. Gentherm is scheduled to conduct a conference call today at 8:00 am Eastern Time to discuss these results further. For more information, investors and media can visit the Events page of the Investor section of Gentherm's website at www.gentherm.com.

References:
[1] https://ir.gentherm.com/news-releases/news-release-details/gentherm-reports-2025-second-quarter-results