Gentherm Q4 revenue up 8.5%, EBITDA misses estimates

Overview

• Thermal management tech firm's Q4 product revenue grew 8.5% yr/yr

• Adjusted EBITDA for Q4 missed analyst expectations

• Adjusted EPS for Q4 rose to $0.49 from $0.29 last year

Outlook

• Gentherm projects 2026 product revenues between $1.5 bln and $1.6 bln

• Company expects 2026 adjusted EBITDA between $175 mln and $195 mln

• Gentherm provides preliminary 2027 revenue outlook of ~$1.7 bln

Result Drivers

• AUTOMOTIVE AWARDS - Secured $485 mln in new automotive business awards in Q4, contributing to revenue growth

• MATERIAL COSTS - Higher material costs and footprint realignment expenses led to a decrease in gross margin

• AUTOMOTIVE REVENUE - Automotive Climate and Comfort Solutions revenue increased 11.1% yr/yr, outperforming industry benchmarks

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 $44.00, about 42.3% above its February 18 closing price of $30.91

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

Press Release: ID:nGNX5rnfjc

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