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NOVI, Mich. - Gentherm (NASDAQ:THRM) reported third-quarter earnings that exceeded analyst expectations on Thursday, as the thermal management technology provider benefited from strong automotive climate and comfort solutions sales.
The company’s shares rose 1.98% in pre-market trading following the announcement.
The company posted adjusted earnings per share of $0.73, surpassing the analyst consensus of $0.65. Revenue reached a record $387 million, beating estimates of $374.75 million and representing a 4.1% increase from $371.5 million in the same quarter last year.
Automotive Climate and Comfort Solutions revenue grew 8.6% YoY, outperforming light vehicle production in relevant markets by 160 basis points. The company secured $745 million in automotive new business awards during the quarter, keeping it on track to deliver over $2 billion for the year.
"Our third quarter financial and operational performance demonstrated our ability to deliver results, while executing our long-term strategic initiatives," said Bill Presley, President and CEO. "Our operational excellence initiatives are gaining traction, which contributed to strong cash generation in the quarter."
Gross margin decreased to 24.6% from 25.5% in the prior year, primarily due to higher material costs and expenses related to footprint realignment. The company generated $87.8 million in operating cash flow year-to-date, compared to $73.1 million in the prior year.
Gentherm raised its full-year 2025 revenue guidance to $1.47-1.49 billion, up from its previous outlook of $1.43-1.5 billion and above the consensus estimate of $1.453 billion. The company also narrowed its adjusted EBITDA margin guidance to 11.9%-12.3% from 11.7%-12.5% previously.
The company expanded into a new market segment during the quarter, securing a deal with a leading global furniture brand to supply comfort solutions with production starting in early 2026.
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