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NOVI, Mich. - On Thursday, Gentherm (NASDAQ:THRM) reported second-quarter revenue that exceeded analyst expectations, though earnings fell short of estimates as higher material and labor costs weighed on profitability.
The thermal management technology company posted revenue of $375 million for the quarter, surpassing the consensus estimate of $360.43 million but essentially flat compared to $375.7 million in the same quarter last year. Adjusted earnings per share came in at $0.54, missing analyst expectations of $0.57 and down from $0.66 in the year-ago period.
Gentherm’s Automotive Climate and Comfort Solutions segment was a bright spot, with revenue increasing 3.8% YoY to $308 million. The company noted this represented a quarterly record for the segment, outperforming light vehicle production in its relevant markets by 10 basis points.
Gross margin declined 180 basis points year over year to 23.9%, which the company attributed to higher material costs, unfavorable product mix, and increased labor expenses. Net income plummeted to $0.5 million from $18.9 million a year earlier, primarily due to $18.9 million in net unrealized foreign currency losses.
"The Gentherm team delivered second quarter results in line with our expectations, with adjusted EBITDA improving sequentially, and strong commercial performance," said Bill Presley, President and CEO. "Our Automotive New Business Awards reached over $1 billion year-to-date as a result of our continued innovation, technology leadership, and strong customer relationships."
The company secured $620 million in new automotive business awards during the quarter, including Ford’s next-generation F-Series truck platform.
Gentherm narrowed its full-year 2025 revenue guidance to $1.43 billion-$1.5 billion and adjusted EBITDA margin to 11.7%-12.5%. The company also reduced its capital expenditure forecast to $55 million-$65 million from the previous $70 million-$80 million.
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