Wall Street expects a year-over-year increase in earnings on higher revenues when Gentherm (THRM) reports results for the quarter ended December 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 19, might help the stock move higher if these key numbers are better than expectat ...

Company Overview - Gentherm (NASDAQ: THRM) is a global market leader in innovative thermal management and pneumatic comfort technologies [4] - The company offers automotive products such as Climate Control Seats (CCS), Climate Control Interiors (CCI™), Lumbar and Massage Comfort Solutions, and Valve Systems, as well as medical products including patient temperature management systems [4] - Gentherm employs over 14,000 people across 13 countries [4] Financial Performance - Gentherm recorded annual sales of approximately $1.5 billion in 2024 [4] - The company secured $2.4 billion in new business awards in the automotive sector [4] Upcoming Events - Gentherm will report its financial results for the fourth quarter and year-end 2025 on February 19, 2026 [1] - A conference call to discuss these results will take place at 8 am (ET) on the same day [1]

Core Insights - Gentherm has submitted a 510(k) Class II premarket notification to the FDA for its ThermAffyx™ Patient Safety System, which is designed to enhance patient safety during robotic surgeries by maintaining temperature and preventing movement [1][4] Group 1: Product Innovation - The ThermAffyx™ System is the first of its kind to combine air-free patient warming with securement technology, addressing critical patient safety concerns such as hypothermia and unintended movement during surgeries [2][3] - The development of this system was initiated after identifying a significant clinical gap in the market, showcasing Gentherm's commitment to innovation in medical technology [3] Group 2: Market Impact - The introduction of the ThermAffyx™ System is expected to set a new standard of care in operating rooms, potentially improving patient outcomes significantly [3][4] - Gentherm's approach leverages technology from its automotive division, indicating a strategic expansion into the medical device market [3] Group 3: Company Overview - Gentherm is a global leader in thermal management and pneumatic comfort technologies, with a diverse product portfolio that includes both automotive and medical applications [5] - In 2024, Gentherm reported annual sales of approximately $1.5 billion and secured $2.4 billion in new business awards within the automotive sector, highlighting its strong market position [5]

Core Viewpoint - Gentherm is merging with Modine Performance Technologies in a Reverse Morris Trust transaction, which is expected to nearly double Gentherm's scale and shift its revenue mix towards commercial vehicles and power generation markets [3][4]. Company Strategy and Growth - The merger accelerates Gentherm's strategy for profitable growth, operational excellence, and improved financial performance, broadening its thermal management portfolio and engineering capabilities [2][4]. - The transaction is seen as transformational, providing established commercial channels for cross-selling Gentherm's products into a wider customer base [3][4]. Financial Overview and Deal Structure - The deal is valued at approximately $1 billion, equating to about 6.8 times the pro forma synergy-adjusted EBITDA of $147 million [5][15]. - Gentherm shareholders will own about 60% of the combined company, while Modine shareholders will own approximately 40% [5][15]. - The target closing date for the transaction is in Q4 2026, subject to shareholder approval and customary closing conditions [20]. Synergies and Cost Savings - Management expects around $25 million in actionable run-rate annual cost synergies by the end of 2028, with a synergy-adjusted EBITDA margin targeted at roughly 13% [5][8]. - Revenue synergy potential is estimated to be "more than $100 million, but less than $500 million," with a pipeline of actionable revenue opportunities identified [11][12]. Market Focus and Revenue Mix - The combined company is projected to have a pro forma revenue base of about $2.6 billion, with an updated end-market mix of approximately 63% from light vehicles, 30% from commercial vehicles and heavy-duty applications, and 6% from power generation [13][17]. - The power generation market is highlighted as a key growth area due to increasing demand for reliable energy solutions [1][2]. Operational Excellence - Gentherm aims to standardize operating models and key performance indicators, focusing on maximizing plant and equipment utilization [12]. - Modine Performance Technologies is characterized by a well-established operating system that supports margin expansion even in flat revenue environments [12].

Creating a Premier Global Climate Solutions Company January 29, 2026 Forward-Looking Statements and RMT Disclaimer No Offer or Solicitation This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registratio ...

Gentherm and Modine Performance Technologies Merger Conference Call Summary Company and Industry Overview - **Companies Involved**: Gentherm (NasdaqGS:THRM) and Modine Performance Technologies - **Industry**: Thermal management technologies, focusing on automotive, commercial vehicles, heavy-duty equipment, and power generation Key Points and Arguments Merger Announcement - Gentherm announced a definitive agreement to merge with Modine's Performance Technologies business, intended to be tax-free for Modine and its shareholders [2][20] - The merger is valued at approximately $1 billion, representing a multiple of about 6.8x based on pro forma synergy-adjusted EBITDA of $147 million for the trailing 12 months [20] Financial Impact - The merger will nearly double Gentherm's revenue to approximately $2.6 billion, with a pro forma synergy-adjusted EBITDA margin of about 13% [4][19] - Gentherm expects to achieve a mid-teens EBITDA margin through operational improvements and growth in higher-margin markets [19] Strategic Benefits - The merger expands Gentherm's portfolio with complementary thermal management products and engineering capabilities, enhancing access to growth markets outside of light vehicles [5][11] - Identified annual cost synergies of approximately $25 million by the end of 2028, with opportunities in direct materials, purchasing, logistics, and support costs [15][20] Market Expansion - The merger allows Gentherm to shift its revenue mix away from light vehicles, with light vehicle business expected to represent about 63% of combined revenue post-merger [36] - Commercial vehicles and heavy-duty applications will account for approximately 30%, while power generation is projected to be the fastest-growing segment at about 6% of the business [36] Growth Opportunities - Modine's established presence in the power generation market is expected to drive significant growth, with a long-term growth model suggesting over 20% growth for this segment [38] - Cross-selling opportunities identified, particularly in agriculture and mining equipment, leveraging Modine's existing customer relationships [52][41] Operational Excellence - Gentherm aims to learn from Modine's well-established operating system and 80/20 principles, which have led to significant financial and operational improvements [18][53] - The merger is seen as a chance to accelerate operational and commercial excellence, expanding margins and creating shareholder value [18] Additional Important Information - Gentherm shareholders will own approximately 60% of the combined company, while Modine shareholders will hold 40% [21] - The transaction is expected to close in the fourth quarter of 2026, subject to shareholder approval and customary closing conditions [22] - The combined company will continue to operate under the Gentherm name and will remain listed on NASDAQ [21] Conclusion - The merger between Gentherm and Modine Performance Technologies is positioned as a transformative opportunity that enhances scale, diversifies revenue streams, and creates significant growth potential across multiple markets, particularly in power generation and commercial vehicles [4][22]

Gentherm to Combine with Modine Performance Technologies Gentherm © 2026 Performance + Technologies Forward-Looking Statements and RMT Disclaimer Building scale in thermal management solutions January 29, 2026 Additional Information and Where to Find It In connection with the proposed transaction among Gentherm, Modine and SpinCo, the parties intend to file relevant materials with the SEC, including, among other filings, a registration statement on Form S-4 to be filed by Gentherm (the "Form S-4") that will ...

Core Viewpoint - Gentherm and Modine have entered into a definitive agreement for a Reverse Morris Trust transaction, where Modine will spin off its Performance Technologies business and combine it with Gentherm, creating a tax-free structure for Modine and its shareholders [1][2][3]. Group 1: Transaction Overview - The transaction is valued at approximately $1.0 billion, representing a multiple of about 6.8x LTM post-synergy adjusted EBITDA of $147 million [3][5]. - Modine is expected to receive a cash distribution of $210 million from SpinCo, with shareholders receiving approximately 21 million shares of Gentherm common stock, equating to about $790 million [3][11]. - Following the transaction, Modine shareholders will own approximately 40% of the combined company, while Gentherm shareholders will own about 60% [3][11]. Group 2: Strategic Benefits - The transaction will establish Gentherm as a scaled leader in thermal management solutions, enhancing its capabilities in precision flow management and allowing it to serve attractive end markets such as power generation and commercial vehicles [2][7]. - The combined company is expected to realize approximately $25 million in annual cost synergies through operational efficiencies and cost optimization [11][7]. - Modine will focus on becoming a pure-play climate solutions company, targeting high-growth markets such as data center cooling, with anticipated annual growth of 50% to 70% over the next two years [6][11]. Group 3: Financial Profile - The combined company is projected to generate pro forma revenue of $2.6 billion, with an adjusted EBITDA margin of 13% on a synergy-adjusted basis and a net leverage ratio of approximately 1.0x [2][11]. - Modine's Climate Solutions segment generated $1.6 billion in revenue for the twelve months ended September 30, 2025, with expectations to approach $2 billion for Fiscal 2026 [11][6]. - The transaction is expected to be accretive to adjusted EPS by year two, preserving Gentherm's strong balance sheet and providing capital allocation flexibility for future investments [11][7]. Group 4: Leadership and Structure - Bill Presley will serve as CEO and Jon Douyard as CFO of the combined company, with Modine Performance Technologies operating as a division of Gentherm [10][12]. - The transaction is expected to close in the fourth quarter of calendar year 2026, subject to various approvals [9][11].

Core Insights - Harvey Partners increased its stake in Gentherm by acquiring 431,072 shares, raising its total holdings to approximately 1 million shares valued at $34.9 million as of September 30 [2][3][11] - Gentherm's market capitalization stands at $1.1 billion, with a revenue of $1.5 billion and a net income of $30.6 million for the trailing twelve months [5] - The company specializes in thermal management technologies, providing solutions for automotive interiors, battery performance, and medical applications [6][9] Financial Performance - Gentherm reported a record quarterly revenue of $386.9 million, reflecting a 4% year-over-year increase, driven by an 8.6% growth in automotive climate and comfort solutions [12] - Adjusted EBITDA increased to $49 million, with healthy margins at 12.7%, and year-to-date operating cash flow reached $87.8 million, up from $73.1 million in the previous year [12] - The company secured $745 million in new automotive awards, positioning it to exceed $2 billion in awards for the year, indicating strong demand for its core technologies despite material cost pressures [12] Market Context - Gentherm's stock price is currently at $36.46, down 13% over the past year, underperforming the S&P 500, which has increased by 13% during the same period [4] - The company's stake now represents 3.1% of Harvey Partners' reportable U.S. equity AUM, ranking below the top five fund holdings [4][11] - Gentherm's diversified product portfolio and established relationships with major OEMs enhance its competitive position in the automotive parts industry [9]

Core Insights - Harvey Partners increased its stake in Gentherm by purchasing 431,072 shares, bringing its total holdings to approximately 1 million shares valued at $34.9 million as of September 30 [2][11] - Gentherm's stock price is currently $36.46, reflecting a 13% decline over the past year, contrasting with a 13% increase in the S&P 500 during the same period [3] - Gentherm reported record quarterly revenue of $386.9 million for the third quarter, a 4% year-over-year increase, driven by an 8.6% growth in automotive climate and comfort solutions [12] Company Overview - Gentherm specializes in thermal management solutions for the automotive and medical sectors, focusing on climate comfort and battery performance products [6][9] - The company has a market capitalization of $1.1 billion and generates revenue primarily through the design, manufacture, and sale of automotive parts and systems [4][9] - Gentherm's revenue for the trailing twelve months (TTM) is $1.5 billion, with a net income of $30.6 million [4] Financial Performance - The company achieved an adjusted EBITDA of $49 million with healthy margins at 12.7% [12] - Year-to-date operating cash flow reached $87.8 million, up from $73.1 million in the previous year [12] - Gentherm secured $745 million in new automotive awards, positioning it to exceed $2 billion in revenue for the year [12]