Gentherm Q2 adjusted EBITDA beats estimates, sets $400 million buyback
Reuters2026/07/23 10:11
Overview
US thermal tech firm's Q2 revenue rose 11% yr/yr to record level
Q2 adjusted EBITDA beat analyst expectations
Company authorized new $400 mln stock repurchase program
Outlook
Gentherm raised 2026 product revenue guidance to $1.55 bln–$1.65 bln
Company now sees 2026 adjusted EBITDA at $185 mln–$200 mln
Gentherm expects 2026 adjusted free cash flow of $85 mln–$100 mln
Result Drivers
AUTOMOTIVE GROWTH - Automotive Climate and Comfort Solutions revenue rose 14.1% yr/yr, outperforming relevant market vehicle production by 14 percentage points
HIGHER MATERIAL COSTS - Gross margin declined to 23.2% from 23.9% due to higher material costs and increased warranty accruals, partially offset by operating leverage
NEW BUSINESS AND MARKET EXPANSION - Secured $690 mln in new automotive business awards and expanded into home, office, and medical markets
Company press release: ID:nGNXmg8ks
Key Details
Metric |
Beat/Miss |
Actual |
Consensus Estimate |
Q2 Product Revenue |
|
$416.17 mln |
|
Q2 EPS |
|
$0.14 |
|
Q2 Net Income |
|
$4.42 mln |
|
Q2 Adjusted EBITDA |
Beat |
$48.79 mln |
$42.01 mln (6 Analysts) |
Q2 Operating Income |
|
$10.69 mln |
|
Q2 Pretax Profit |
|
$7.32 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $41.50, about 15.1% above its July 22 closing price of $36.05
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
July 22 - OPmobility revenue falls, but outpaces global vehicle production
July 22 - Valeo first-half sales fall, but beat market expectations
July 21 - GM beats Q2 revenue, adjusted EPS expectations, raises 2026 outlook
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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