Gentherm Inc Reports Decrease in Q4 Net Income

By Chris Stiles • Thursday, February 19 15:57 • Permanent Link

Gentherm, a global leader in thermal management and pneumatic comfort technologies, has reported its financial results for the fourth quarter and full year ended December 31, 2025.

In the fourth quarter, the company secured automotive new business awards totaling $485 million and saw product revenues of $382.8 million, an 8.5% increase from the previous year. Automotive climate and comfort solutions revenue increased by 11.1% year-over-year. However, the gross margin decreased to 23.7% from 24.4% in the prior year. Net income for the quarter was $3.0 million, a decrease from $15.3 million in the prior year, while adjusted EBITDA was $40.6 million, or 10.6% of revenue, compared to $41.4 million, or 11.7% of revenue, in the prior year. GAAP diluted earnings per share was $0.10, compared to $0.49 in the prior year, while adjusted diluted earnings per share was $0.49, compared to $0.29 in the prior year.

For the full year 2025, Gentherm secured automotive new business awards totaling $2.2 billion and saw product revenues of $1,498.6 million, a 2.9% increase from the previous year. However, the gross margin decreased to 24.2% from 25.2% in the prior year. Net income for the year was $18.3 million, a decrease from $64.9 million in the prior year, while adjusted EBITDA was $174.8 million, or 11.7% of revenue, compared to $182.9 million, or 12.6% of revenue, in the prior year. GAAP diluted earnings per share was $0.59, compared to $2.06 in the prior year, while adjusted diluted earnings per share was $2.27, compared to $2.33 in the prior year. Gentherm also delivered full-year cash flow from operations of $116.8 million, compared to $109.6 million in the prior year.

Notably, the company reduced net leverage to ~0.2x and increased liquidity to $468.8 million at year-end, compared to ~0.5x and $414.1 million, respectively, at the prior year end.

Looking forward, Gentherm has provided guidance for the full year 2026 with a preliminary revenue outlook for 2027. For 2026, the company expects product revenues of $1.5 billion to $1.6 billion, adjusted EBITDA of $175 million to $195 million, and adjusted free cash flow of $80 million to $100 million. The preliminary revenue outlook for 2027 is approximately $1.7 billion.

Today the company's shares have moved -3.1% to a price of $36.87. For more information, read the company's full 8-K submission here.

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