Financial Data and Key Metrics Changes - Fourth quarter revenues decreased by 3.8% compared to the same period last year, with foreign exchange adjusted revenue decreasing by 3.3% [40] - For the full year, revenue decreased by 0.9% compared to the previous year, or 0.4% when adjusted for foreign exchange [45] - Adjusted EBITDA for the fourth quarter was 41.4million,representing11.7183 million for the full year, with a margin expansion of 30 basis points compared to the prior year [39] Business Line Data and Key Metrics Changes - Automotive Climate and Comfort Solutions revenue grew by 1.7%, outpacing actual light vehicle production in key markets by 130 basis points when adjusted for foreign exchange [41] - Lumbar and massage revenue increased by 29% excluding foreign exchange, driven by ramped-up production for the Volkswagen MQB platform and several Ford models [41] - Steering Wheel Heater revenue increased by 11% excluding foreign exchange, supported by new launches with Li Auto, Honda, and General Motors [41] - Medical segment revenues increased by 9% excluding foreign exchange, with improved profitability sequentially [43] Market Data and Key Metrics Changes - The company secured 640millioninnewautomotivebusinessawardsinthefourthquarter,withsignificantsuccessinThermalManagementproducts[34]−Forthefullyear,Genthermsecured2.4 billion in automotive new business awards, reflecting increased adoption of its innovations [38] - The company expects 2025 revenue to be between 1.4billionand1.5 billion, up approximately 2% when excluding a 35millionyear−over−yearforeignexchangeheadwind[50]CompanyStrategyandDevelopmentDirection−Thecompanyaimstoleverageitstechnologyplatformstoaccelerateprofitablegrowth,focusingonoperationalimprovementsandbusinessprocessstandardization[60]−Genthermisstrategicallyrealigningitsmanufacturinglocationstooptimizeitsfootprint,targetinga30414 million [47] Q&A Session Summary Question: What are the top two priorities for Gentherm in the coming quarters? - Management identified scaling core technology platforms and standardizing operating systems as the top two priorities [64][66] Question: Can you provide numbers on the savings associated with the footprint reduction? - Management indicated that while there will be headwinds this year, the footprint optimization is critical for achieving mid to high single-digit EBITDA margins over time [71][72] Question: How does Gentherm view the 2025 outlook in relation to industry production? - Management expects a slight decline in industry production but anticipates a 2% revenue increase when excluding foreign exchange [50][75] Question: What is the expected contribution of the pneumatic portfolio to revenue growth? - Management noted that the pneumatic portfolio, along with other core products, is expected to show healthy growth year-over-year [83] Question: How does the company plan to approach capital allocation? - Management plans to prioritize funding organic growth, followed by opportunistic M&A and share repurchases as appropriate [112]
Gentherm(THRM)2025-02-19 17:16