Gentherm achieves record revenue as Modine merger advances

Gentherm (NASDAQ:THRM), a global leader in thermal management technologies, delivered a record-breaking start to 2026, driven by a double-digit surge in its automotive climate and comfort business.

The Novi, Michigan-based company reported record first-quarter product revenue of $393.7 million, an 11.3% increase over the prior year.

On a constant-currency basis, revenue grew 7.2%, significantly outperforming global vehicle production rates.

Profitability metrics also showed marked improvement.

Gentherm posted net income of $4.2 million, or $0.13 per diluted share, recovering from a slight loss in the first quarter of 2025.

Adjusted EBITDA rose to $49.3 million, yielding a margin of 12.5%, up from 11.1% a year ago.

The company attributed the gains to robust demand for seat heating, cooling, and steering wheel heaters, particularly in North America and China.

The quarter’s strategic highlight was the continued progress of the $1 billion business combination with Modine Performance Technologies.

Announced in late January, the Reverse Morris Trust transaction will spin off Modine's thermal unit to merge with Gentherm, creating a diversified thermal management giant with pro forma annual revenue exceeding $2.6 billion.

The deal is expected to close in the fourth quarter of 2026, pending shareholder and regulatory approvals.

In the medical segment, Gentherm confirmed it has submitted a 510(k) Class II premarket notification to the FDA for its ThermAffyx™ Patient Safety System.

The device, which adapts automotive thermal technology to prevent intraoperative hypothermia and patient movement during surgery, is expected to receive clearance and begin generating revenue in the third quarter of 2026.

Looking ahead, Gentherm maintained its full-year 2026 guidance, projecting product revenues of $1.5 billion to $1.6 billion and adjusted EBITDA between $175 million and $195 million.