Financial Data and Key Metrics Changes - Gentherm's second quarter revenue decreased by 0.2% year over year, with foreign exchange adjusted revenues down by 1.6% [16] - Adjusted EBITDA for the quarter was $45.9 million, representing 12.2% of sales, down from 13.3% in the same quarter last year, primarily due to higher material and labor costs [17] - Adjusted diluted earnings per share were $0.54, compared to $0.66 in the second quarter of the previous year [18] - Operating cash flow year to date was $32 million, with net debt standing at $81 million and a net leverage ratio of 0.5 turns [18] Business Line Data and Key Metrics Changes - Automotive Climate and Comfort Solutions revenue increased by 3.8% year over year, or 2.5% excluding foreign exchange effects, partially offsetting planned revenue decreases from strategic exits [17] - Medical revenue decreased by 3.8% year over year, or 4.8% excluding foreign exchange [17] - The lumbar and massage product line is projected to grow from approximately $175 million in 2024 to over $300 million by 2027, driven by increasing adoption and recent awards [11] Market Data and Key Metrics Changes - Automotive climate and coverage solutions outperformed actual light vehicle production in key markets by 10 basis points, with strong performance in North America and Europe, but underperformance in Asia [8] - 70% of Gentherm's awards year to date in China were with domestic OEMs, compared to 50% over the last two years, indicating a strategic shift in customer mix [9] Company Strategy and Development Direction - Gentherm is focused on driving strategic profitable growth and expanding into adjacent markets, having engaged with over 30 customers across various end markets [12] - The company aims to shift its customer mix in China towards domestic OEMs to align more closely with the overall market [10] - M&A is a key component of Gentherm's capital allocation strategy, with ongoing evaluations of opportunities aligned with strategic priorities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the core automotive business and the acceleration of pneumatic, lumbar, and massage adoption rates [10] - The company expects third quarter results to be similar to the second quarter, despite industry reports suggesting a mid-single-digit decrease in light vehicle production [20] - Overall sentiment has improved since April, leading to an updated revenue guidance range of $1.43 billion to $1.5 billion [20] Other Important Information - Gentherm secured $620 million in automotive new business awards in the second quarter, including significant wins with Ford and other OEMs [14] - The company is executing on its strategy to expand into near-adjacent markets, with positive feedback from customers expecting similar comfort solutions as in the light vehicle market [12] Q&A Session Summary Question: Guidance for Q3 results - Management indicated that Q3 results are expected to be similar to Q2 due to new launches and stable customer production schedules [26] Question: Comparison of new F Series content - The new F Series program is a continuation of existing content, reinforcing customer demand for Gentherm's features [27] Question: Details on adjacent market awards - Gentherm has secured awards in powersports and commercial vehicles, with specific thermal solutions for heavy trucks and delivery vans [35] Question: EBITDA margin guidance - Management expects EBITDA margins in Q3 to be similar to Q2, with improvements anticipated in Q4 [46] Question: Performance in the Chinese market - The company aims to achieve a 60-40 customer split between global and domestic OEMs in China by next year, with faster development cycles for domestic OEMs [48]

Company Performance - Gentherm reported quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.59 per share, and down from $0.66 per share a year ago, representing an earnings surprise of -8.47% [1] - The company posted revenues of $375.09 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.78%, but down from $375.68 million year-over-year [2] - Over the last four quarters, Gentherm has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Gentherm shares have lost about 19.9% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The current Zacks Rank for Gentherm is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.61 on revenues of $366.45 million, and for the current fiscal year, it is $2.21 on revenues of $1.43 billion [7] - The outlook for the automotive industry, where Gentherm operates, is currently in the top 39% of Zacks industries, suggesting a favorable environment for performance [8]

Financial Performance - Second quarter product revenues reached $375.09 million [20], a slight decrease compared to $375.68 million in the same period of the previous year [20] - Adjusted EBITDA for the second quarter was $45.9 million, representing a 12.2% margin [11], compared to $49.9 million and a 13.3% margin in the second quarter of the previous year [11] - The company repurchased $10 million of its shares [5, 11] - Liquidity stands at $416 million [11] Automotive Sector - Automotive new business awards totaled $620 million [5, 9], including a full comfort solutions portfolio on Ford F-Series [5] - Automotive Climate and Comfort Solutions experienced growth exceeding the market by 10 basis points, with strong performance in North America and Europe (+8%), offset by a decline in Asia (-12%) [5] Strategic Initiatives and Outlook - The company is progressing with strategic footprint realignment [8] - Full year revenue guidance is narrowed to $1.43 billion - $1.5 billion [13] - Adjusted EBITDA margin guidance for the full year is revised to 11.7% - 12.5% [13] - Capital expenditures are now projected to be $55 million - $65 million [13]

[Executive Summary & Q2 2025 Performance](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Performance) This section provides an overview of Gentherm's Q2 2025 financial and operational performance, including key highlights and CEO commentary [Q2 2025 Highlights](index=1&type=section&id=Q2%202025%20Highlights) Gentherm reported Q2 2025 revenue of $375.1 million, a slight decrease year-over-year. Automotive Climate and Comfort Solutions revenue increased by 3.8%. Net income and adjusted EBITDA saw declines, primarily due to significant unrealized foreign currency losses and increased material/labor costs. The company secured $620 million in new automotive business awards during the quarter - Secured Automotive New Business Awards totaling **$620 million** in Q2 2025, including Ford's next-generation F-Series truck platform and multiple awards for Puls.A™; year-to-date awards reached over **$1 billion**[3](index=3&type=chunk)[5](index=5&type=chunk) Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :------------------------------------ | :---------- | :---------- | :----------- | | Product Revenues | $375.1 million | $375.7 million | -0.2% | | Product Revenues (excl. FX) | $369.6 million | $375.7 million | -1.6% | | Automotive Climate and Comfort Solutions Revenue | N/A | N/A | +3.8% (+2.5% excl. FX) | | Gross Margin | 23.9% | 25.7% | -180 bps | | Net Income | $0.5 million | $18.9 million | -97.4% | | Adjusted EBITDA | $45.9 million | $49.9 million | -8.0% | | Adjusted EBITDA Margin | 12.2% | 13.3% | -1.1 pp | | GAAP Diluted EPS | $0.02 | $0.60 | -96.7% | | Adjusted Diluted EPS | $0.54 | $0.66 | -18.2% | | Net Leverage | ~0.5x | ~0.5x | Flat | | Liquidity | $416 million | N/A | N/A | - Gross margin decreased primarily due to higher material costs, unfavorable product mix, higher labor costs, and expenses related to footprint realignment[5](index=5&type=chunk) - Net income decrease was primarily driven by net unrealized foreign currency losses of **$18.9 million**[5](index=5&type=chunk) - Repurchased **$10.0 million** of the Company's common stock[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bill Presley noted that Q2 results met expectations, with sequential improvement in adjusted EBITDA and strong commercial performance. He highlighted the company's focus on strategic execution, operational efficiencies, and a cautious approach amidst macro uncertainties, while remaining on track for full-year goals - Q2 results were in line with expectations, with adjusted EBITDA improving sequentially and strong commercial performance[3](index=3&type=chunk) - Automotive New Business Awards reaching over **$1 billion** year-to-date reflect continued innovation, technology leadership, and strong customer relationships[3](index=3&type=chunk) - The company's focus remains on executing strategic priorities and driving operating efficiencies, while taking a measured approach due to macro environment uncertainty[5](index=5&type=chunk) [Financial Guidance](index=2&type=section&id=Financial%20Guidance) This section outlines Gentherm's updated full-year 2025 financial guidance, including revised projections for revenues, EBITDA margin, and capital expenditures [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Gentherm narrowed its full-year 2025 guidance ranges for Product Revenues and Adjusted EBITDA Margin Rate, reflecting updated expectations. Capital Expenditures guidance was also revised downwards, while the Adjusted Effective Tax Rate remained unchanged Full Year 2025 Guidance Metrics | Metric | Previous (April 24, 2025) | Revised (July 24, 2025) | | :-------------------------- | :------------------------ | :---------------------- | | Product Revenues | $1.4B – $1.5B | $1.43B – $1.5B | | Adjusted EBITDA Margin Rate | 11.5% – 13% | 11.7% – 12.5% | | Full-year Adjusted Effective Tax Rate | 26% – 29% | No change | | Capital Expenditures | $70M – $80M | $55M – $65M | - Guidance is based on current tariffs, customer orders, near-term conditions, flat to slightly decreasing light vehicle production in relevant markets for full year 2025 versus 2024, and a EUR to USD exchange rate of **$1.13/Euro**[6](index=6&type=chunk) [Company Information & Investor Relations](index=2&type=section&id=Company%20Information%20%26%20Investor%20Relations) This section provides essential company information, investor and media contact details, and specifics regarding the Q2 2025 earnings conference call [About Gentherm](index=2&type=section&id=About%20Gentherm) Gentherm is a global leader in innovative thermal management and pneumatic comfort technologies, serving both automotive and medical markets. In 2024, the company achieved approximately $1.5 billion in annual sales and secured $2.4 billion in automotive new business awards - Gentherm is a global market leader of innovative thermal management and pneumatic comfort technologies[11](index=11&type=chunk) - Automotive products include Climate Control Seats (CCS®), Climate Control Interiors (CCI™), Lumbar and Massage Comfort Solutions, and Valve Systems. Medical products include patient temperature management systems[11](index=11&type=chunk) - In 2024, the company recorded annual sales of approximately **$1.5 billion** and secured **$2.4 billion** in automotive new business awards[11](index=11&type=chunk) [Investor and Media Contacts](index=2&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders seeking further information about Gentherm - Investor Contact: Gregory Blanchette, investors@gentherm.com, 248.308.1702[11](index=11&type=chunk) - Media Contact: Melissa Fischer, media@gentherm.com, 248.289.9702[11](index=11&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Gentherm hosted a conference call on July 24, 2025, to discuss its second-quarter results, with details provided for live participation and subsequent replay access - A conference call was held on July 24, 2025, at 8:00 am Eastern Time to review the results[8](index=8&type=chunk) - Dial-in numbers and a passcode were provided for the live call and a telephonic replay available until August 7, 2025[8](index=8&type=chunk)[10](index=10&type=chunk) - A live webcast and one-year archived replay, along with supplemental materials, are accessible on the Investor section of Gentherm's website[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, highlighting the inherent risks and uncertainties that could cause actual results to differ materially from forward-looking statements [Disclaimer and Risks](index=3&type=section&id=Disclaimer%20and%20Risks) This section serves as a disclaimer, indicating that statements in the release are forward-looking and subject to numerous significant risks and uncertainties. These factors, including macroeconomic conditions, industry shifts, supply chain issues, and regulatory changes, could cause actual results to differ materially from expectations - Statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[13](index=13&type=chunk) - Such statements are subject to important assumptions, significant risks, and uncertainties (some beyond control) that may cause actual results or performance to differ materially[13](index=13&type=chunk) - Key risks include macroeconomic and geopolitical factors in the Automotive industry, global economic and trade policies, increasing competition, new product launch management, the evolution of the automotive industry (EVs, autonomous vehicles), supply chain constraints, production levels of major customers, and operational risks in China[13](index=13&type=chunk) - Additional risks cover product quality and safety, labor market conditions, ability to achieve cost reductions, M&A integration, cybersecurity, loss of key customers/suppliers, intellectual property protection, compliance with anti-corruption laws, legal proceedings, regulation of the patient temperature management business, climate change effects, and debt covenants[13](index=13&type=chunk)[19](index=19&type=chunk) - Readers are advised to review the 'Risk Factors' in the Company's most recent Annual Report on Form 10-K and subsequent SEC filings for a comprehensive discussion of these risks[15](index=15&type=chunk) - The Company disclaims any obligation to update forward-looking statements to reflect changes in strategies, expectations, events, conditions, or circumstances, except as required by law[16](index=16&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section defines Gentherm's non-GAAP financial measures, explaining their calculation, management's rationale for their use, and their limitations for investors [Non-GAAP Definitions and Usefulness](index=4&type=section&id=Non-GAAP%20Definitions%20and%20Usefulness) This section defines Gentherm's various non-GAAP financial measures, such as Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and liquidity, explaining their calculation and management's rationale for their use. These measures are provided to offer investors supplemental insights into the company's operating performance and liquidity by excluding items not indicative of ongoing operations, thereby enhancing comparability - The Company provides non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS, Free Cash Flow, Net CAPEX, Net Debt, liquidity, net leverage ratio, revenue/segment revenue/product revenue excluding foreign currency translation, and adjusted operating expenses[17](index=17&type=chunk) - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, non-cash stock-based compensation, restructuring expenses, net, unrealized currency gain or loss, and other non-ongoing operational gains/losses and related tax effects[17](index=17&type=chunk) - Management uses these non-GAAP measures as supplemental indicators of liquidity and operating performance to assist investors in assessing performance on a period-over-period basis by excluding matters not indicative of ongoing results[21](index=21&type=chunk) - Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP measures; they may also not be comparable to metrics used by other companies[21](index=21&type=chunk) - Forward-looking non-GAAP guidance (Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EPS) is not reconciled to the most directly comparable GAAP measures due to the variability and low visibility of taxes and non-recurring items[22](index=22&type=chunk) [Consolidated Financial Statements & Reconciliations](index=6&type=section&id=Consolidated%20Financial%20Statements%20%26%20Reconciliations) This section presents Gentherm's consolidated financial statements for Q2 2025, including income statements, balance sheets, cash flows, and reconciliations of non-GAAP measures [Consolidated Condensed Statements of Income](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) The consolidated income statement for Q2 2025 shows a significant decline in net income and diluted EPS, primarily driven by substantial unrealized foreign currency losses. Gross margin also decreased year-over-year, contributing to lower operating income Three Months Ended June 30 (Dollars in thousands, except per share data) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Product revenues | $375,090 | $375,683 | (0.2%) | | Cost of sales | $285,328 | $278,982 | 2.3% | | Gross margin | $89,762 | $96,701 | (7.2%) | | Operating income | $24,009 | $32,988 | (27.3%) | | Foreign currency (loss) gain | $(17,432) | $(282) | (6081.6%) | | Net income | $477 | $18,876 | (97.5%) | | Diluted earnings per share | $0.02 | $0.60 | (96.7%) | Six Months Ended June 30 (Dollars in thousands, except per share data) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Product revenues | $728,944 | $731,698 | (0.4%) | | Cost of sales | $552,717 | $546,244 | 1.2% | | Gross margin | $176,227 | $185,454 | (5.0%) | | Operating income | $41,070 | $51,037 | (19.6%) | | Foreign currency (loss) gain | $(27,730) | $2,267 | (13230.7%) | | Net income | $349 | $33,661 | (99.0%) | | Diluted earnings per share | $0.01 | $1.06 | (99.1%) | [Revenue by Product Category](index=7&type=section&id=Revenue%20by%20Product%20Category) Automotive Climate and Comfort Solutions revenue grew by 3.8% in Q2 2025, driven by strong performance in Lumbar and Massage Comfort Solutions and Climate and Comfort Electronics. Conversely, Valve Systems and Other Automotive segments experienced declines. The Medical segment saw a slight decrease in Q2 but a modest increase year-to-date Three Months Ended June 30 (Dollars in thousands) | Product Category | 2025 | 2024 | % Change | | :---------------------------------- | :------- | :------- | :------- | | Climate Control Seats | $200,020 | $199,766 | 0.1% | | Lumbar and Massage Comfort Solutions | $52,530 | $45,869 | 14.5% | | Climate Control Interiors | $49,585 | $47,031 | 5.4% | | Climate and Comfort Electronics | $5,906 | $4,157 | 42.1% | | **Automotive Climate and Comfort Solutions** | **$308,041** | **$296,823** | **3.8%** | | Valve Systems | $25,143 | $29,267 | (14.1%) | | Other Automotive | $30,668 | $37,912 | (19.1%) | | **Subtotal Automotive segment** | **$363,852** | **$364,002** | **(0.0%)** | | Medical segment | $11,238 | $11,681 | (3.8%) | | **Total Company** | **$375,090** | **$375,683** | **(0.2%)** | Six Months Ended June 30 (Dollars in thousands) | Product Category | 2025 | 2024 | % Change | | :---------------------------------- | :------- | :------- | :------- | | Climate Control Seats | $391,173 | $391,815 | (0.2%) | | Lumbar and Massage Comfort Solutions | $97,843 | $84,120 | 16.3% | | Climate Control Interiors | $94,926 | $91,429 | 3.8% | | Climate and Comfort Electronics | $13,621 | $8,383 | 62.5% | | **Automotive Climate and Comfort Solutions** | **$597,563** | **$575,747** | **3.8%** | | Valve Systems | $48,316 | $55,892 | (13.6%) | | Other Automotive | $59,847 | $77,001 | (22.3%) | | **Subtotal Automotive segment** | **$705,726** | **$708,640** | **(0.4%)** | | Medical segment | $23,218 | $23,058 | 0.7% | | **Total Company** | **$728,944** | **$731,698** | **(0.4%)** | - Total Company revenue, excluding foreign currency translation, decreased **1.6%** for the three months ended June 30, 2025, and **0.4%** for the six months ended June 30, 2025[28](index=28&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 decreased by 8.0% year-over-year, with the Adjusted EBITDA margin falling to 12.2%. This decline was largely influenced by significant unrealized currency losses in the current period compared to a gain in the prior year Three Months Ended June 30 (Dollars in thousands) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Net income | $477 | $18,876 | (97.5%) | | Unrealized currency loss (gain) | $18,877 | $(497) | (3900.0%) | | Adjusted EBITDA | $45,897 | $49,873 | (8.0%) | | Adjusted EBITDA margin | 12.2% | 13.3% | (1.1 pp) | Six Months Ended June 30 (Dollars in thousands) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Net income | $349 | $33,661 | (99.0%) | | Unrealized currency loss (gain) | $28,484 | $(2,353) | (1310.7%) | | Adjusted EBITDA | $85,238 | $93,415 | (8.8%) | | Adjusted EBITDA margin | 11.7% | 12.8% | (1.1 pp) | [Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20EPS) Adjusted net income and adjusted diluted EPS both decreased significantly for Q2 and YTD 2025 compared to the prior year. This was primarily due to the impact of unrealized currency losses and other adjustments, despite excluding certain non-recurring items Three Months Ended June 30 (Dollars in thousands, except per share data) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Net income | $477 | $18,876 | (97.5%) | | Unrealized currency loss (gain) | $18,877 | $(497) | (3900.0%) | | Adjusted net income | $16,676 | $21,036 | (20.7%) | | Adjusted earnings per share (Diluted) | $0.54 | $0.66 | (18.2%) | Six Months Ended June 30 (Dollars in thousands, except per share data) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Net income | $349 | $33,661 | (99.0%) | | Unrealized currency loss (gain) | $28,484 | $(2,353) | (1310.7%) | | Adjusted net income | $32,293 | $40,623 | (20.5%) | | Adjusted earnings per share (Diluted) | $1.05 | $1.28 | (17.9%) | [Consolidated Condensed Balance Sheets](index=10&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of June 30, 2025, Gentherm's total assets increased by 9.1% from year-end 2024, driven by growth in current assets, property and equipment, and goodwill. Total liabilities also rose, primarily due to accounts payable and lease liabilities, while shareholders' equity saw a notable increase, largely from a positive shift in accumulated other comprehensive income (loss) As of June 30, 2025 vs. December 31, 2024 (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | **ASSETS** | | | | | Cash and cash equivalents | $128,297 | $134,134 | (4.3%) | | Accounts receivable, net | $294,719 | $258,112 | 14.2% | | Inventory, net | $248,384 | $227,356 | 9.2% | | Total current assets | $758,815 | $684,015 | 10.9% | | Property and equipment, net | $262,419 | $252,970 | 3.7% | | Goodwill | $108,891 | $99,603 | 9.3% | | Total assets | **$1,361,401** | **$1,247,556** | **9.1%** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | | Accounts payable | $254,133 | $226,815 | 12.0% | | Total current liabilities | $376,925 | $340,293 | 10.8% | | Long-term debt, less current maturities | $209,000 | $220,064 | (5.0%) | | Total liabilities | **$661,656** | **$630,609** | **4.9%** | | Accumulated other comprehensive income (loss) | $2,005 | $(85,193) | N/A | | Total shareholders' equity | **$699,745** | **$616,947** | **13.4%** | [Consolidated Condensed Statements of Cash Flows](index=11&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities increased by 18.2% year-over-year. Net cash used in investing activities decreased, while net cash used in financing activities saw a slight increase. The period concluded with a net decrease in cash and cash equivalents, though less pronounced than the prior year Six Months Ended June 30 (Dollars in thousands) | Activity | 2025 | 2024 | Change (YoY) | | :-------------------------------------- | :------- | :------- | :----------- | | Net cash provided by operating activities | $31,701 | $26,824 | 18.2% | | Net cash used in investing activities | $(19,829) | $(24,680) | 19.7% | | Net cash used in financing activities | $(22,329) | $(21,777) | (2.5%) | | Foreign currency effect | $4,620 | $(6,574) | 170.3% | | Net decrease in cash and cash equivalents | $(5,837) | $(26,207) | 77.7% | | Cash and cash equivalents at end of period | $128,297 | $123,466 | 3.9% | - Cash paid for taxes was **$12,843 thousand** in 2025, up from **$12,300 thousand** in 2024[39](index=39&type=chunk) - Cash paid for interest was **$6,757 thousand** in 2025, slightly up from **$6,723 thousand** in 2024[39](index=39&type=chunk) [Other Non-GAAP Reconciliations (Adjusted Operating Expenses, Liquidity)](index=12&type=section&id=Other%20Non-GAAP%20Reconciliations%20(Adjusted%20Operating%20Expenses%2C%20Liquidity)) This section provides reconciliations for adjusted operating expenses, which saw a slight increase in Q2 2025. It also details the company's total liquidity, which improved to $416.3 million as of June 30, 2025, reflecting an increase in both cash and revolving line of credit availability Adjusted Operating Expenses (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total operating expenses | $65,753 | $63,713 | $135,157 | $134,417 | | Adjusted operating expenses | $58,502 | $57,752 | $117,949 | $116,888 | Total Liquidity (Dollars in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Cash and cash equivalents | $128,297 | $123,466 | | Revolving line of credit availability | $287,970 | $278,000 | | Total liquidity | **$416,267** | **$401,466** | [Revenue by Product Category Historical Recast](index=13&type=section&id=Revenue%20by%20Product%20Category%20Historical%20Recast) This section provides a historical recast of revenue by product category for 2023 and 2024, aligning prior-period amounts with the current presentation. It details the reclassification of various automotive product lines into new categories like Climate Control Seats and Climate Control Interiors, offering a consistent view of segment performance over time - Product categories have been modified, and prior-period amounts for 2023 and 2024 have been recast to conform with the current period presentation[44](index=44&type=chunk)[45](index=45&type=chunk) - New category definitions include: Climate Control Seats (CCS) now encompasses CCS Heat, CCS Vent/CCS Active Cool, and CCS Neck Conditioners. Climate Control Interiors (CCI) includes CCI Steering Wheel Heat and CCI Interior Heat. Other Automotive now includes Automotive Cables, Battery Performance Solutions, non-automotive electronics, and contract manufacturing electronics[44](index=44&type=chunk) Full Year 2024 Recast Revenue (Dollars in thousands) | Product Category | Full Year 2024 | | :---------------------------------- | :------------- | | Climate Control Seats | $771,310 | | Climate Control Interiors | $186,972 | | Lumbar and Massage Comfort Solutions | $178,584 | | Climate and Comfort Electronics | $17,363 | | **Automotive Climate and Comfort Solutions** | **$1,154,229** | | Valve Systems | $105,056 | | Other Automotive | $146,993 | | **Subtotal Automotive segment** | **$1,406,278** | | Medical segment | $49,846 | | **Total Company** | **$1,456,124** |

Core Insights - Gentherm reported second quarter 2025 financial results with delivered revenue of $375 million, including a record for Automotive Climate and Comfort Solutions [1][2] - The company secured over $600 million in new automotive business awards during the quarter, totaling $1 billion year-to-date [1][3] - Full-year guidance for 2025 has been narrowed, with product revenues expected between $1.43 billion and $1.5 billion [5] Financial Performance - Product revenues of $375.1 million decreased by 0.2% from $375.7 million in the prior year, with a 1.6% decrease when excluding foreign currency translation [6] - Automotive revenues decreased by 1.5%, while Medical revenues decreased by 4.8% [6] - Adjusted EBITDA was $45.9 million, representing 12.2% of revenue, down from $49.9 million or 13.3% of revenue in the prior year [6][26] Revenue Breakdown - Automotive Climate and Comfort Solutions revenue increased by 3.8% year-over-year, outperforming S&P Global's light vehicle production report by 10 basis points [6] - The company secured automotive new business awards totaling $620 million, including significant contracts with Ford [6][3] - Revenue from Climate Control Seats was $200 million, showing a slight increase, while Lumbar and Massage Comfort Solutions saw a 14.5% increase [23] Guidance and Strategic Focus - The revised guidance for adjusted EBITDA margin rate is set between 11.7% and 12.5% for the full year 2025 [5] - The company is focused on executing strategic priorities and driving operational efficiencies despite macroeconomic uncertainties [5][3] - Capital expenditures guidance has been reduced to $55 million to $65 million from the previous range of $70 million to $80 million [5] Market Position and Outlook - Gentherm maintains a strong liquidity position with $416 million available, reflecting an increase from the previous year [33] - The company continues to innovate and strengthen customer relationships, contributing to its market leadership in thermal management technologies [3][11] - The overall market sentiment has improved, but the company remains cautious in its operational management due to ongoing uncertainties [5]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, in ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Gentherm (THRM) Analysis - Gentherm (THRM) has shown a four-week price change of 14.4%, indicating growing investor interest [4] - Over the past 12 weeks, THRM's stock has gained 24.2%, with a beta of 1.42, suggesting it moves 42% more than the market [5] - THRM has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - THRM has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.68, suggesting it is undervalued at 68 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides THRM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

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 [4] - In the medical sector, Gentherm provides patient temperature management systems [4] - The company 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 second quarter of 2025 on July 24, 2025 [1] - A conference call to discuss these results will take place at 8 am (ET) on the same day [1]

Core Insights - Gentherm expands its partnership with DUOMED into France, enhancing patient temperature management technologies across Europe [1][2] - DUOMED will distribute Gentherm's full patient temperature management portfolio, including the Astopad and Vytil-branded systems [2] - The partnership aims to leverage DUOMED's strong presence and relationships in Europe to improve healthcare delivery [3][4] Company Overview - Gentherm is a global leader in thermal management and pneumatic comfort technologies, with a diverse product range in automotive and medical sectors [5] - In 2024, Gentherm reported annual sales of approximately $1.5 billion and secured $2.4 billion in new automotive business awards [5] - DUOMED, part of the Palex group, specializes in medical technology sales, consultancy, and support, focusing on high-quality solutions for healthcare professionals [6] Product Insights - The Astopad resistive warming system and Vytil-branded convective warming system are key offerings in the partnership [2] - Early feedback from French clinicians indicates a preference for Vytil blankets due to their superior quality compared to competitors [4] - Vytil products are recognized for their quality, safety, and value, with a focus on usability and innovation [7]

Company Overview - Gentherm is a global market leader in innovative thermal management and pneumatic comfort technologies[5] - The company was founded in 1991 and is headquartered in Novi, MI[5] - Gentherm has over 14,000 employees and operates in 13 countries[5] - The company has over 425 issued patents and products in over 1,500 vehicle makes and platforms[8] Financial Performance (2024) - Revenue was $1.5 billion[5,7] - Adjusted EBITDA was 12.6% of revenue[5] - Net leverage was 0.5x[5] - Automotive new business awards totaled $2.4 billion[5] Revenue Breakdown (2024) - Automotive climate control, seat, interiors, and electronics accounted for 67% of revenue[5] - Lumbar and massage comfort solutions represented 12% of revenue[5] - Valve systems contributed 7% of revenue[5] - Medical solutions accounted for 3% of revenue[5] - Other industries accounted for 11% of revenue[5] - North America accounted for 40% of revenue[7] - Europe accounted for 33% of revenue[7] - China accounted for 15% of revenue[7] - Rest of Asia accounted for 12% of revenue[7] Strategic Priorities - Accelerating product lifecycle management[12] - Leveraging technology portability to drive scale[12] - Implementing business process standardization[12] - Standardizing factory floor KPIs[12] - Accelerating strategic footprint plans[12] - Enhancing free cash flow generation[12]