Financial Data and Key Metrics Changes - Gentherm reported record quarterly revenue of $387 million, an increase of 4.1% year-over-year, with revenues excluding foreign currency translation increasing by 2.4% [15][16] - Adjusted EBITDA was $49 million, representing 12.7% of sales, a slight decline from 12.9% in the same quarter last year due to higher material costs and operating expenses [16] - Year-to-date operating cash flow reached $88 million, with net leverage at 0.2x, indicating strong financial health and access to capital [16][17] Business Line Data and Key Metrics Changes - Automotive climate and comfort solutions revenue increased by 8.6% year-over-year, or 7% excluding foreign exchange impacts, offsetting planned revenue decreases from strategic exits [16] - Medical revenue decreased by 0.4% year-over-year, or 1.6% excluding foreign exchange [16] Market Data and Key Metrics Changes - Third quarter automotive new business awards totaled $745 million, bringing the year-to-date total to $1.8 billion, with expectations to exceed $2 billion for the full year [4][11] - Improved performance was noted in China, with several new programs launched with domestic OEMs contributing to growth [5][14] Company Strategy and Development Direction - The company is focused on scaling core technologies across multiple end markets to drive profitable growth, with a commercial funnel of over $300 million in lifetime revenue opportunities [8][10] - Gentherm is actively pursuing M&A opportunities to access new markets and expand its product portfolio, aligning with its core technology platforms [10][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential impacts from supply chain disruptions but emphasized ongoing efforts to mitigate risks and maintain visibility [7][38] - The company is increasing the midpoint of its revenue guidance for the year, expecting revenue in the range of $1.47 billion to $1.49 billion, while narrowing the adjusted EBITDA margin range to 11.9% to 12.3% [17][18] Other Important Information - Gentherm is preparing for production in the furniture market, with expectations to start in Q1 of 2026, utilizing existing capacity [8][30] - The company is also focusing on the medical sector, with a significant product announcement anticipated near year-end [9] Q&A Session Summary Question: Factors contributing to momentum in winning conquest business - Management highlighted innovative solutions, strong customer relationships, and a value-added proposition as key factors driving success in securing new business [22][23] Question: Breakdown of the $300 million adjacent market opportunity - The pipeline is roughly divided into a third for furniture, a third for commercial vehicles, and a third for other mobility solutions, with furniture showing rapid adoption [25][26] Question: Near-term production environment and guidance - Management discussed ongoing supply chain issues, including impacts from Jaguar Land Rover and aluminum supply, but noted no significant schedule shifts yet [36][38] Question: Potential markets for adjacent opportunities - The company is evaluating the Indian market, particularly for two-wheelers, as a new growth opportunity [41] Question: Strategic footprint alignment plan and margin progression - Expected savings from the footprint transition will be more pronounced in 2027, with legacy costs falling off and inventory build impacting margins [47][48] Question: M&A strategy focus - M&A efforts will focus on building resilience, accessing new markets, and expanding product offerings, aligning with the company's core strategy [50]

2025 Third Quarter Results October 23, 2025 Proprietary © Gentherm Forward-Looking Statements Except for historical information contained herein, statements in this presentation are forward-looking statements that are made by Gentherm Incorporated (the "Company") pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements that address future operating, financial or business performance or strategies or expectations are forward-looking statements. The forwar ...

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]