Gentherm reports record Q2 2026 revenue and raises full-year guidance

• Gentherm (NASDAQ:THRM) reported second-quarter 2026 product revenues of $416.2 million, an 11.0 percent year-over-year increase.
• Adjusted diluted earnings per share reached $0.75, an increase from $0.54 in the prior-year period.
• Management raised its full-year 2026 guidance and authorized a new $400 million stock repurchase program.

Gentherm (NASDAQ:THRM) reported its second-quarter 2026 financial results, generating $416.2 million in product revenues.

This represents an 11 percent increase compared to the same period last year, or 9.5 percent excluding foreign currency impacts.

The top-line performance was led by strong demand in the Automotive Climate and Comfort Solutions segment, which posted revenue growth of 14.1 percent.

The thermal management technology company posted net income of $4.4 million, or $0.14 per diluted share, a notable improvement from the $0.5 million ($0.02 per diluted share) reported a year ago.

Adjusted diluted EPS rose to $0.75 from $0.54, easily exceeding consensus estimates.

Following the earnings announcement, Gentherm's share price traded near $36 in morning activity.

Operationally, the company achieved an adjusted EBITDA of $48.8 million, representing an 11.7 percent margin.

Gross margin for the quarter contracted slightly to 23.2 percent from 23.9 percent last year, as profitability was pressured by higher material costs and warranty accruals.

Cash flow from operations declined to $2.3 million from $31.7 million, primarily driven by restructuring efforts and merger and acquisition (M&A) expenses.

Gentherm ended the quarter with robust liquidity of $502.3 million and a net leverage ratio of approximately 0.3x.

Reflecting confidence in continued operational strength, management raised its full-year 2026 guidance.

Gentherm now expects product revenues between $1.55 billion and $1.65 billion, adjusted EBITDA of $185 million to $200 million, and adjusted free cash flow in the range of $85 million to $100 million.

Alongside the raised forecast, the company's Board of Directors authorized a new $400 million stock repurchase program effective July 27, 2026, which replaces a prior authorization that had $110 million remaining.

On the strategic front, Gentherm completed the acquisition of Innovative Medical Equipment, expanding its portfolio with the ThermaZone thermal therapy device.

Furthermore, the company reported completing key sign-to-close deliverables for its planned combination with Modine Performance Technologies, an ongoing transaction targeted to close by early the fourth quarter of 2026.