Gentherm Q2 adjusted EBITDA beats estimates, sets $400 million buyback

Gentherm Incorporated

23/07/2026 11:11

    

    Overview
  
US thermal tech firm's Q2 revenue rose 11% yr/yr to record level
Q2 adjusted EBITDA beat analyst expectations
Company authorized new $400 mln stock repurchase program

    

    Outlook
  
Gentherm raised 2026 product revenue guidance to $1.55 bln–$1.65 bln
Company now sees 2026 adjusted EBITDA at $185 mln–$200 mln
Gentherm expects 2026 adjusted free cash flow of $85 mln–$100 mln

    

    Result Drivers
  
AUTOMOTIVE GROWTH - Automotive Climate and Comfort Solutions revenue rose 14.1% yr/yr, outperforming relevant market vehicle production by 14 percentage points
HIGHER MATERIAL COSTS - Gross margin declined to 23.2% from 23.9% due to higher material costs and increased warranty accruals, partially offset by operating leverage
NEW BUSINESS AND MARKET EXPANSION - Secured $690 mln in new automotive business awards and expanded into home, office, and medical markets

    
Company press release: ID:nGNXmg8ks

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Product Revenue
 
$416.17 mln
 
Q2 EPS
 
$0.14
 
Q2 Net Income
 
$4.42 mln
 
Q2 Adjusted EBITDA
Beat
$48.79 mln
$42.01 mln (6 Analysts)
Q2 Operating Income
 
$10.69 mln
 
Q2 Pretax Profit
 
$7.32 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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 $41.50, about 15.1% above its July 22 closing price of $36.05
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

    

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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.)