Thermal tech firm Gentherm posts higher Q3 revenue, raises guidance

Overview

• Gentherm Q3 revenue rises 4.1% to $387 mln, adjusted EBITDA beats estimates

• Company secured $745 mln in automotive new business awards in Q3

• Gentherm raises 2025 full-year revenue guidance midpoint

Outlook

• Gentherm raises full-year 2025 revenue guidance to $1.47 bln-$1.49 bln

• Adjusted EBITDA margin guidance revised to 11.9%-12.3% for 2025

• Capital expenditures guidance lowered to $45 mln-$55 mln for 2025

Result Drivers

• NEW BUSINESS AWARDS - Secured $745 mln in automotive new business awards, including a contract with Mercedes-Benz for lumbar and massage solutions

• CHINA MARKET - Increased take rates in China and new program launches contributed to revenue growth

• GROSS MARGIN DECLINE - Decrease in gross margin driven by higher material costs and prior year adjustments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $43.00, about 18.4% above its October 21 closing price of $35.09

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

Press Release: ID:nGNX6YPGTw

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