Gentherm Reports 2024 Fourth Quarter and Full Year Results

Core Insights - Gentherm achieved a 61% year-over-year net income growth and reported a record annual adjusted EBITDA of $183 million [1][19] - The company secured annual automotive new business awards totaling $2.4 billion, marking the second consecutive year of awards exceeding $2 billion [1][9] - Gentherm established guidance for 2025, anticipating a low single-digit decrease in light vehicle production in key markets [22] Financial Performance - In Q4 2024, product revenues decreased by $14 million, or 3.8%, compared to Q4 2023, with automotive revenues down 4.3% year-over-year [5][6] - For the full year 2024, product revenues totaled $1.456 billion, a decrease of 0.9% from the previous year [13][19] - The gross margin rate decreased to 24.4% in Q4 2024 from 26.2% in Q4 2023, attributed to product mix and higher costs [8][9] Segment Performance - Automotive revenues for 2024 were $1.406 billion, a 1.2% decrease compared to the prior year, with specific product categories showing mixed results [14][15] - Medical segment revenue increased by 8.1% year-over-year, reaching $49.8 million for the full year 2024 [15][19] Cost Management - Net research and development expenses for Q4 2024 were $21.1 million, slightly down from the prior year, while selling, general, and administrative expenses decreased by $3.3 million [10][18] - Restructuring expenses for 2024 totaled $13.1 million, up from $4.7 million in the previous year, primarily due to manufacturing footprint optimization [19] Earnings Metrics - GAAP diluted earnings per share for Q4 2024 was $0.49, down from $0.56 in Q4 2023, while adjusted diluted earnings per share was $0.29 compared to $0.90 in the prior year [12][44] - For the full year 2024, GAAP diluted earnings per share was $2.06, an increase from $1.22 in 2023, while adjusted diluted earnings per share was $2.33, down from $2.59 [20][44] Guidance and Outlook - The company expects product revenues for 2025 to be between $1.4 billion and $1.5 billion, with adjusted EBITDA projected to be between 12% and 13% of product revenues [25] - The effective tax rate for 2025 is anticipated to be between 26% and 29% [25]