Gentherm Inc ( (THRM) ) has released its Q2 earnings. Here is a breakdown of the information Gentherm Inc presented to its investors.
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Gentherm Inc., a leader in thermal management and pneumatic comfort technologies, operates primarily in the automotive and medical sectors, providing innovative solutions such as Climate Control Seats and patient temperature management systems. In the second quarter of 2025, Gentherm reported revenues of $375 million, maintaining a steady performance despite 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, highlighting its strong market position and customer relationships.
Key financial metrics for the quarter included a slight decline in product revenues by 0.2% year-over-year, with a notable 3.8% increase in Automotive Climate and Comfort Solutions revenue. However, the gross margin decreased to 23.9% due to higher material and labor costs. Net income saw a significant drop to $0.5 million from $18.9 million the previous year, largely due to unrealized foreign currency losses. Adjusted EBITDA also decreased to $45.9 million, reflecting the challenges in maintaining margins.
Despite these challenges, Gentherm maintained a stable net leverage ratio and increased liquidity to $416 million. The company also repurchased $10 million of its common stock, demonstrating confidence in its long-term strategy. The revised full-year guidance indicates a narrowed revenue range of $1.43 billion to $1.5 billion, with an adjusted EBITDA margin rate between 11.7% and 12.5%.
Looking ahead, Gentherm remains focused on executing its strategic priorities and driving operational efficiencies. While market sentiment has improved, the company is cautiously navigating the uncertain macroeconomic environment to achieve its full-year goals.