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NOVI, Michigan - Gentherm Inc. (NASDAQ:THRM) shares fell sharly by -10.95% on Wednesday after the thermal management technology company reported fourth-quarter earnings that missed analyst expectations and provided weaker-than-expected guidance for 2025.
The company posted adjusted earnings per share of $0.29 for Q4, well below the consensus estimate of $0.70. Revenue came in at $352.9 million, missing analyst projections of $364.68 million and declining 3.8% YoY.
For the full year 2025, Gentherm forecast revenue between $1.4 billion and $1.5 billion, below Wall Street’s consensus estimate of $1.538 billion.
The disappointing results and outlook sent Gentherm’s stock tumbling 7.91% in early trading.
"In 2024, the Company leveraged its culture of innovation to launch new products, record automotive new business awards well over $2 billion for the 2nd consecutive year, and achieved record Adjusted EBITDA," said Bill Presley, Gentherm’s President and CEO.
Automotive segment revenue, which makes up the bulk of Gentherm’s business, decreased 4.3% YoY to $338.8 million in Q4. The company cited lower sales in its Climate Control Seat and Seat Heater product categories as key factors behind the decline.
For the full year 2024, Gentherm reported revenue of $1.46 billion, down 0.9% from 2023. Adjusted EBITDA rose 1.3% to $182.9 million.
The company ended the year with a strong balance sheet, maintaining a net leverage ratio of approximately 0.5x while investing in operations and share repurchases. Gentherm bought back $50.2 million of its common stock in 2024.
Despite the Q4 setback, management expressed optimism about Gentherm’s long-term prospects. "As we look to the future, we will leverage these capabilities, scale our technologies, and optimize our operations to drive shareholder value," Presley stated.
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