Gentherm Q1 adjusted EBITDA beats, helped by automotive segment growth

Gentherm

23/04/2026 11:13

Overview

Thermal management tech firm's Q1 product revenue rose 7.2% yr/yr ex-FX to a record high

Q1 adjusted EBITDA beat analyst expectations

Gross margin expanded to 24.7% as operational initiatives gained traction

Outlook

Gentherm maintains 2026 product revenue guidance of $1.5 bln to $1.6 bln

Company expects 2026 adjusted EBITDA of $175 mln to $195 mln

Gentherm sees 2026 adjusted free cash flow of $80 mln to $100 mln

Result Drivers

AUTOMOTIVE GROWTH - Higher volumes in Automotive Climate and Comfort Solutions, with segment revenue up 13.6% yr/yr (9.8% ex-FX), outpacing relevant market vehicle production

GROSS MARGIN IMPROVEMENT - Gross margin rose to 24.7%, driven by operating leverage and net material performance, partially offset by annual price reductions and higher labor costs

NEW MARKET EXPANSION - Initial deliveries of home and office solutions to KUKA Home in Asia and continued progress in organic growth initiatives in home, office, and medical markets

Company press release: ID:nGNX7yCnFp

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Product Revenue
$393.7 mln
Q1 EPS
$0.14
Q1 Adjusted EBITDA
Beat
$49.3 mln
$41.11 mln (7 Analysts)
Q1 Gross Margin
24.7%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Gentherm Inc is $38.50, about 33.9% above its April 22 closing price of $28.75

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

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.)