Gentherm Reports Mixed Q4/FY2025 Results with Profit Decline, Provides 2026 Guidance and 2027 Outlook
THRM sits 38% above its 52-week low of $22.748 on elevated volume (2.2× avg).
Summary
Gentherm reported record annual revenue but a significant drop in GAAP net income for 2025, alongside providing cautious 2026 guidance and a positive 2027 revenue outlook, all ahead of a major acquisition.
Key Events · Earnings and Guidance · THRM
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Record Annual Revenue Achieved
Gentherm reported record annual product revenues of $1.5 billion for full year 2025, an increase of 2.9% from the prior year.
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Significant Profitability Decline
The company experienced a substantial decrease in GAAP net income and diluted EPS for both Q4 and full year 2025. Full-year GAAP diluted EPS fell from $2.06 in 2024 to $0.59 in 2025.
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Improved Cash Flow and Reduced Leverage
Operating cash flow for the full year increased by 7% to $116.8 million, and net leverage was reduced to approximately 0.2x from 0.5x at the prior year-end.
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2026 Guidance and 2027 Outlook Provided
Gentherm issued 2026 guidance for product revenues between $1.5B-$1.6B and Adjusted EBITDA of $175M-$195M, along with a preliminary 2027 revenue outlook of approximately $1.7B.
Analysis · THRM · Manufacturing
Gentherm Inc. reported a significant decline in GAAP net income and earnings per share for both the fourth quarter and full year 2025, despite achieving record annual revenue and increased operating cash flow. The company also provided 2026 guidance that suggests modest growth and a positive preliminary revenue outlook for 2027. This financial update precedes the anticipated closing of the Modine Performance Technologies acquisition, which is expected to transform the company's product portfolio and market diversification. Investors should monitor the company's ability to improve profitability while integrating the upcoming acquisition.
At the time of this filing, THRM was trading at $31.35 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $942.3M. The 52-week trading range was $22.75 to $39.48. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.