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Revenue and Customer Base - Gentherm's revenues from its two largest customers, Lear Corporation and Adient plc, were $234 million and $164 million, representing 16% and 11% of total product revenues, respectively[46]. - In 2025, the top two customers, Lear and Adient, accounted for 16% and 11% of product revenues, respectively, while General Motors and Volkswagen each represented 12% of product revenues[63]. - Product revenues by OEM for 2025 show Volkswagen and General Motors at 12%, BMW at 9%, and Ford at 8%, reflecting a competitive landscape[47]. - In 2025, 66% of product revenue was generated from sales to customers outside the United States, including Europe and Asia[85]. - Over 15% of 2025 product revenue was generated from sales to customers in China, amid ongoing U.S.-China trade tensions[86]. Business Segments and Strategy - The company is organized into two reportable segments: Automotive and Medical, focusing on climate and comfort solutions in automotive and patient temperature management in the medical sector[18][19]. - Gentherm's automotive products include Climate Control Seats, Climate Control Interiors, and Lumbar and Massage Comfort Solutions, which are designed to enhance passenger comfort[14][27]. - Gentherm's strategy emphasizes profitable growth, operational excellence, and financial performance, leveraging core technologies to expand into new markets such as home and office, power-sports, and commercial vehicles[36][39]. - The automotive segment represents 97% of product revenues for the years ended December 31, 2025, 2024, and 2023, indicating a strong reliance on the automotive industry[73]. Financial Performance - For the year ended December 31, 2025, product revenues increased by 2.9% to $1,498,602 thousand compared to $1,456,124 thousand in 2024[191]. - Operating income for the year ended December 31, 2025, was $82,700 thousand, a decrease of $24,315 thousand from $107,015 thousand in 2024[191]. - The company reported a net income of $18,285 thousand for 2025, down from $64,947 thousand in 2024, reflecting a decline of $46,662 thousand[191]. - The cost of sales increased to $1,136,426 thousand in 2025 from $1,089,693 thousand in 2024, resulting in a gross margin decrease to $362,176 thousand[191]. - The company’s net research and development expenses rose to $94,759 thousand in 2025, compared to $88,697 thousand in 2024[191]. Operational Challenges - The company is subject to intense competition, particularly from Chinese-based component suppliers, which could impact pricing and margins[62]. - Seasonal fluctuations in automotive vehicle production are expected, particularly during summer and December, affecting operational performance[52]. - The global automotive supply chain has been adversely impacted by raw material shortages and manufacturing disruptions, which are expected to continue affecting profitability[77]. - The company’s ability to manage new product launches effectively is critical, as delays or quality issues could lead to significant financial penalties[70]. Research and Development - The company is committed to research and development, focusing on innovative products and partnerships to enhance energy utilization and production efficiencies[20][21]. - Gentherm's core technologies include thermal management, air moving devices, pneumatic solutions, and advanced valve systems, which are applicable across various end markets[22][23][25][26]. Mergers and Acquisitions - The company is pursuing a Reverse Morris Trust transaction with Modine Manufacturing Company, which involves the transfer of Modine's Performance Technologies business and the merger of SpinCo into Gentherm[16][17]. - The Modine Transaction is subject to conditions including shareholder approval and regulatory approvals, and failure to complete it could adversely impact the market price of the company's Common Stock[131]. - The integration of Performance Technologies following the Modine Transaction may present significant challenges, potentially affecting the combined company's business and financial condition[134]. Risks and Compliance - The company faces risks related to data privacy and security laws, which could lead to significant penalties and operational costs if not complied with[106]. - Regulatory changes, including tariffs and trade policies, could materially affect the company's operations and financial results, particularly in relation to supply chain costs and demand[104]. - The company is subject to extensive regulation in its patient temperature management business, with potential costs associated with compliance and inspections[116]. Capital Structure and Liquidity - As of December 31, 2025, the company's total consolidated indebtedness was $189.1 million, with $307.9 million available for additional borrowings under the Second Amended and Restated Credit Agreement[122]. - The company expects to incur significant one-time costs related to the Modine Transaction, which may include transaction-related fees and expenses, potentially impacting liquidity and cash flows[137]. - The company utilizes strategies to manage global liquidity needs, with $103.1 million in cash and cash equivalents held by non-U.S. subsidiaries as of December 31, 2025[126]. Shareholder Information - Current shareholders will experience substantial dilution in the Merger, with pre-Merger shareholders owning approximately 60% of the issued and outstanding shares of Common Stock on a fully diluted basis post-Merger[141]. - The company has not paid any cash dividends since formation and does not expect to pay any in the foreseeable future[161]. - The company authorized a stock repurchase program of up to $150.0 million over a three-year period, expiring June 30, 2027, with $10.0 million repurchased in 2025[162].

Financial Data and Key Metrics Changes - Gentherm reported record revenue of $1.5 billion for 2025, an increase of 2.9% compared to the prior year, or 1.8% when excluding foreign currency translation [13] - Adjusted EBITDA for 2025 was $175 million, representing 11%-11.7% of sales, down from 12.6% the previous year due to higher material costs and expenses related to footprint realignment [14] - Operating cash flow increased by 7% to $117 million, despite building inventory throughout the year [14][15] Business Line Data and Key Metrics Changes - Automotive Climate & Comfort solutions revenue increased by 5.8% excluding foreign exchange, while other automotive products saw a decline of $28 million due to planned exits [13] - The company generated a commercial funnel totaling over $300 million in lifetime revenue from markets outside of light vehicles, indicating strong growth potential in adjacent markets [8] Market Data and Key Metrics Changes - Fourth quarter Climate & Comfort solutions revenue outgrew light vehicle production by 820 basis points, demonstrating strong global performance [14] - The company expects light vehicle production in key markets to decrease approximately 1% for 2026, positioning Gentherm to grow above market by mid-single digits [16] Company Strategy and Development Direction - Gentherm is focused on scaling its core technologies beyond automotive, with a strategic combination with Modine's Performance Technologies expected to close by the end of the year, creating a $2.6 billion market leader [7][21] - The company aims to drive growth through both organic and inorganic opportunities, with a focus on adjacent markets such as medical and home and office [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, emphasizing that 2025 financial results do not reflect the company's potential, with expectations for mid-single-digit growth over market in 2026 [5][11] - The company anticipates that the combination with Modine will unlock significant value creation opportunities and accelerate growth in new markets [22][24] Other Important Information - Gentherm's FDA 510(k) submission for the Thermafix system is expected to generate revenue later this year, contributing to the goal of doubling the medical business by 2030 [10][55] - The company is focused on operational rigor and cash flow generation, with an adjusted free cash flow estimate of $80 million-$100 million for 2026 [18] Q&A Session Summary Question: Adjacent end markets and revenue expectations - Management confirmed they will continue to lean into adjacent markets, expecting home and office to contribute $50 million to $100 million in revenue by 2028, with medical products anticipated to double the medical business by 2030 [32][33] Question: Footprint realignment and EBITDA expectations for 2027 - Management stated that the timing for footprint transitions remains on track for completion in 2026, with benefits expected to flow through in 2027, leading to a potential step function change in margins [36][37] Question: Confidence in 2027 revenue guidance - Management expressed confidence in the 2027 revenue number due to strong launch activity in core automotive and traction in adjacent markets [44]

Financial Data and Key Metrics Changes - Gentherm reported record revenue of $1.5 billion for 2025, an increase of 2.9% compared to the prior year, or 1.8% when excluding foreign currency translation [14] - Adjusted EBITDA for 2025 was $175 million, representing 11.7% of sales, down from 12.6% the previous year due to higher material costs and expenses related to footprint realignment [15] - Operating cash flow increased by 7% to $117 million, despite building inventory throughout the year [15] Business Line Data and Key Metrics Changes - Automotive climate and comfort solutions revenue increased by 5.8% excluding foreign exchange effects, while other automotive products saw a decline of $28 million due to planned exits [15] - The company generated a commercial funnel totaling over $300 million in lifetime revenue from markets outside of light vehicles, indicating strong growth potential in adjacent markets [8] Market Data and Key Metrics Changes - Fourth quarter climate and comfort solutions revenue outgrew light vehicle production by 820 basis points, demonstrating strong global performance across product categories [15] - The company expects light vehicle production in key markets to decrease by approximately 1% in 2026, positioning Gentherm to grow above market by mid-single digits [17] Company Strategy and Development Direction - Gentherm is focused on expanding its technology applications beyond automotive, with a strategic realignment of its footprint expected to continue through 2026 [4] - The planned combination with Modine Performance Technologies is anticipated to create a $2.6 billion market leader, with a goal to grow revenue to over $3.5 billion by 2030 [7][21] - The company aims to leverage its core technologies to drive growth in new markets, including medical and home and office sectors, with a focus on wellness trends [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing that 2025 financial results do not reflect Gentherm's potential [5] - The company is optimistic about the impact of new product launches and adjacent market contributions, particularly in medical and home and office sectors [32][44] - Management highlighted the importance of operational rigor and cash flow generation as key priorities moving forward [16] Other Important Information - Gentherm's combination with Modine Performance Technologies is expected to unlock significant value creation opportunities, including cost synergies and enhanced market access [22][24] - The company anticipates that the new Thermafix system will begin generating revenue later this year, contributing to the medical segment's growth [10] Q&A Session Summary Question: Adjacent end markets and revenue expectations - Management confirmed they will continue to pursue adjacent markets, expecting home and office to contribute $50 million to $100 million in revenue by 2028, with margins above those in light vehicles [32] Question: Footprint realignment timing and EBITDA expectations for 2027 - Management stated that the footprint transitions remain on track for completion in 2026, with benefits expected to flow through in 2027, leading to improved margins [36] Question: Revenue confidence for 2027 - Management expressed confidence in the 2027 revenue outlook due to strong launch activity in core automotive and contributions from adjacent markets [44]

Financial Data and Key Metrics Changes - Gentherm reported record revenue of $1.5 billion for 2025, an increase of 2.9% compared to the prior year, or 1.8% when excluding foreign currency translation [12] - Adjusted EBITDA for 2025 was $175 million, representing 11% of sales, down from 12.6% the previous year due to higher material costs and expenses related to footprint realignment [13] - Operating cash flow increased by 7% to $117 million, despite building inventory throughout the year [13][14] Business Line Data and Key Metrics Changes - Automotive climate and comfort solutions revenue increased by 5.8% excluding foreign exchange effects, while other automotive products saw a decline of $28 million due to planned exits [12] - The company generated a commercial funnel totaling over $300 million in lifetime revenue from markets outside of light vehicles, including commercial vehicles and home and office applications [7][8] Market Data and Key Metrics Changes - Fourth quarter climate and comfort solutions revenue outgrew light vehicle production by 820 basis points, indicating strong global performance across product categories [13] - In China, Gentherm experienced strong growth, particularly with global OEMs, and finished the year with 60% of awards from domestic manufacturers [49] Company Strategy and Development Direction - Gentherm is focusing on scaling its core technologies beyond automotive applications, with a strategic combination with Modine Performance Technologies expected to close by the end of the year [6][19] - The merger is projected to create a $2.6 billion market leader with a goal to grow to over $3.5 billion by 2030, emphasizing operational excellence and market diversification [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting mid-single-digit growth above market levels in 2026, despite a slight decline in light vehicle production [15] - The company anticipates Adjusted EBITDA margins to improve to approximately 12% in 2026, with expectations for revenue growth driven by new program launches and adjacent market contributions [16][17] Other Important Information - Gentherm's FDA 510(k) submission for the Thermafix system is expected to generate revenue later this year, contributing to the medical segment's growth [9] - The company is prioritizing product lifecycle management and leveraging existing automotive intellectual property to enhance innovation in the medical market [8] Q&A Session Summary Question: Adjacent end markets and revenue expectations - Management confirmed they will continue to pursue adjacent markets, expecting home and office to contribute $50 million to $100 million in revenue by 2028, and anticipate significant contributions from medical products [31][32] Question: Footprint realignment timing and EBITDA expectations for 2027 - Management stated that the footprint transitions remain on track for completion in 2026, with benefits expected to flow through in 2027, leading to a potential step function change in margins [34][35] Question: China market positioning and production turbulence - Management reported strong growth in China, particularly with global OEMs, and emphasized a focus on rebalancing the mix towards domestic OEMs [48][49] Question: Thermafix system and future product launches - Management indicated that revenue from the Thermafix system is expected to start this year, and additional product launches leveraging existing technology are anticipated [52] Question: Opportunities in data centers for valves - Management highlighted potential applications in liquid cooling for data centers, facilitated by the merger with Modine Performance Technologies [53]

分组1 - Gentherm reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.57 per share, but showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of -13.53% [1] - The company posted revenues of $382.79 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.15% and increasing from $352.91 million year-over-year [2] - Gentherm has surpassed consensus revenue estimates four times over the last four quarters, indicating a positive trend in revenue performance [2] 分组2 - Gentherm shares have underperformed the market, losing about 15% since the beginning of the year compared to the S&P 500's gain of 0.5% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.54 for the coming quarter and $2.60 for the current fiscal year [7] - The Zacks Industry Rank places the Automotive - Original Equipment sector in the bottom 45% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

2025 Fourth Quarter and Full Year Results February 19, 2026 Proprietary © Gentherm This presentation 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 registration or qualification under the securities laws of any such j ...

Financial Performance - Achieved record annual revenue of $1.5 billion in 2025, a 2.9% increase from $1.46 billion in 2024[1] - Net income for 2025 was $18.3 million, a decrease from $64.9 million in 2024[5] - Adjusted EBITDA for 2025 was $174.8 million, or 11.7% of revenue, compared to $182.9 million, or 12.6% of revenue, in the prior year[5] - Basic earnings per share decreased to $0.10 in Q4 2025 from $0.50 in Q4 2024, reflecting the decline in net income[32] - Adjusted net income for the year ended December 31, 2025, was $70,085,000, compared to $73,300,000 in 2024[38] - Net income for the year ended December 31, 2025, was $18,285, a decrease of 72.8% compared to $64,947 in 2024[41] Revenue Growth - Secured automotive new business awards totaling $2.2 billion for the year, with $485 million awarded in Q4 alone[5] - Product revenues for Q4 were $382.8 million, an 8.5% increase from $352.9 million in the prior year[5] - Automotive Climate and Comfort Solutions revenue increased by 11.1% year-over-year, outperforming S&P Global's light vehicle production report by 820 basis points[5] - Total revenue for the three months ended December 31, 2025, was $382,788,000, representing an 8.5% increase compared to $352,914,000 in the same period of 2024[34] - The Automotive segment reported a revenue of $1,448,820,000 for the year ended December 31, 2025, up 3.0% from $1,406,270,000 in 2024[34] - The Climate Control Seats product category generated $200,866,000 in revenue for the three months ended December 31, 2025, a 5.9% increase from $189,597,000 in 2024[34] - Revenue from the Automotive Climate and Comfort Solutions segment for 2025 was $1,154,229, a decrease of 1.5% from $1,169,076 in 2024[45] - The Lumbar and Massage Comfort Solutions category saw a significant revenue increase of 26.5%, reaching $58,540,000 for the three months ended December 31, 2025[34] Cost and Expenses - Gross margin for 2025 was 24.2%, down from 25.2% in the prior year, primarily due to higher material costs[5] - Total operating expenses for 2025 were $279,476, an increase of 7.7% from $259,416 in 2024[43] - The company reported total operating expenses of $73.0 million in Q4 2025, up from $62.5 million in Q4 2024, indicating rising costs[32] - Research and development expenses increased to $23.6 million in Q4 2025 from $21.1 million in Q4 2024, emphasizing ongoing investment in innovation[32] Liquidity and Leverage - Reduced net leverage to approximately 0.2x and increased liquidity to $468.8 million at year-end[7] - Cash and cash equivalents increased to $160,833,000 as of December 31, 2025, compared to $134,134,000 in 2024[40] - Total assets grew to $1,396,429,000 as of December 31, 2025, from $1,247,556,000 in 2024[40] - Total liquidity, including cash and revolving line of credit availability, reached $468,768 in 2025, up from $414,134 in 2024[43] - Net cash provided by operating activities for 2025 was $116,791, an increase of 6.5% compared to $109,646 in 2024[41] - Total debt at the end of 2025 was $189,073, down from $220,201 in 2024, indicating a reduction of 14.1%[43] - The company reported a net leverage ratio of 0.2 in 2025, improved from 0.5 in 2024[43] Strategic Challenges - The company faced challenges related to strategic acquisitions and integration, which could impact future performance[22] - The anticipated benefits of the proposed transaction may not be realized due to various risks, including regulatory approvals and integration difficulties[22] - Adjusted EBITDA and other non-GAAP measures were discussed, highlighting the company's focus on operational performance[26]

Core Insights - Gentherm achieved record annual revenue of $1.5 billion in 2025, marking a 2.9% increase from $1.46 billion in 2024 [2][5] - The company reported a 7% year-over-year increase in full-year operating cash flow, reducing net leverage to approximately 0.2x [2][6] - Gentherm has established guidance for 2026 with a preliminary revenue outlook of approximately $1.7 billion for 2027 [2][7] Financial Performance - In Q4 2025, product revenues reached $382.8 million, an 8.5% increase from $352.9 million in Q4 2024 [6][28] - Full-year product revenues were $1,498.6 million, up 2.9% from $1,456.1 million in 2024 [6][28] - Automotive Climate and Comfort Solutions revenue increased by 11.1% year-over-year, outperforming S&P Global's light vehicle production report by 820 basis points [6][30] Profitability Metrics - Gross margin for Q4 2025 was 23.7%, down from 24.4% in the prior year, primarily due to higher material costs [6][28] - Net income for Q4 2025 was $3.0 million, a decrease from $15.3 million in Q4 2024 [6][28] - Adjusted EBITDA for the full year was $174.8 million, or 11.7% of revenue, compared to $182.9 million, or 12.6% of revenue, in the prior year [6][28] Strategic Initiatives - The company is focused on transforming its business and expanding into adjacent markets, with a planned combination with Modine Performance Technologies expected to close by the end of 2026 [3][6] - Gentherm secured automotive new business awards totaling $2.2 billion in 2025, indicating strong future growth potential [6][28] Guidance and Outlook - For 2026, Gentherm projects product revenues between $1.5 billion and $1.6 billion, with adjusted EBITDA expected to be between $175 million and $195 million [7] - The company anticipates adjusted free cash flow of $80 million to $100 million for 2026 [7]