EX-99.1 2 thrm-ex99_1.htm EX-99.1 EX-99.1

 

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Exhibit 99.1

Gentherm Reports 2025 Second Quarter Results

Delivered Revenue of $375 Million, Including Quarterly Record for Automotive Climate and Comfort Solutions

Secured More Than $600 Million of Automotive New Business Awards in the Quarter; $1 Billion Year to Date

2025 Full Year Guidance Range Narrowed

NOVI, Michigan, July 24, 2025 -- Gentherm (NASDAQ:THRM), a global market leader of innovative thermal management and pneumatic comfort technologies, today announced its financial results for the second quarter ending June 30, 2025.

“The Gentherm team delivered second quarter results in line with our expectations, with adjusted EBITDA improving sequentially, and strong commercial performance. 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,” said Bill Presley, the Company's President and CEO.

 

Second Quarter Highlights

 

Secured Automotive New Business Awards totaling $620 million, including Ford’s next-generation F-Series truck platform and multiple awards for Puls.A™, our innovative pulsating massage solution.
Product revenues of $375.1 million decreased 0.2% from $375.7 million in the prior year. Excluding the impact of foreign currency translation, product revenues decreased 1.6%, with Automotive decreasing 1.5% and Medical decreasing 4.8%.
Automotive Climate and Comfort Solutions revenue increased 3.8% year over year, or 2.5% adjusting for the impact of foreign currency translation, outperforming S&P Global’s mid-July light vehicle production report in our relevant markets by 10 basis points, with strong performance in North America/Europe, weighed down by Asia.
Gross margin decreased 180 basis points year over year from 25.7% to 23.9%. The decrease was primarily driven by higher material costs, including unfavorable product mix, as well as higher labor costs and expenses related to our footprint realignment.
Net income was $0.5 million, a decrease from $18.9 million in the prior year, primarily driven by net unrealized foreign currency losses of $18.9 million.
Adjusted EBITDA was $45.9 million, or 12.2% of revenue, a decrease from $49.9 million, or 13.3% of revenue, in the prior year, primarily driven by lower gross margin.
GAAP diluted earnings per share was $0.02, compared to $0.60 in the prior year.
Adjusted diluted earnings per share was $0.54, compared to $0.66 in the prior year.
Maintained net leverage ~0.5x, flat year over year; liquidity up to $416 million.
Repurchased $10.0 million of the Company’s common stock.

 

Presley concluded, “Our focus remains on executing our strategic priorities, while driving operating efficiencies throughout the business. Market sentiment has improved, however we continue to take a measured approach in managing our operations given the level of uncertainty in the macro environment. We remain on track to accomplish our full year goals.”

 

 


 

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Guidance

 

The Company’s guidance for full year 2025 as of July 24, 2025 is provided below¹:

 

 

 

Previous
April 24, 2025

 

Revised
July 24, 2025

Product Revenues

 

$1.4B – $1.5B

 

$1.43B – $1.5B

Adjusted EBITDA Margin Rate

 

11.5% – 13%

 

11.7% – 12.5%

Full-year Adjusted Effective Tax Rate

 

26% – 29%

 

No change

Capital Expenditures

 

$70M – $80M

 

$55M – $65M

¹Guidance based on tariffs currently in effect as of today, our current forecast of customer orders and expectations of near-term conditions, flat to slightly decreasing light vehicle production in our relevant markets for full year 2025 versus 2024, and a EUR to USD exchange rate of $1.13/Euro. Does not contemplate the impact of recently enacted U.S. and German tax reform, which is currently under evaluation.

The Company provides various non-GAAP financial measures in this release. See “Use of Non-GAAP Measures” below for additional information, including definitions, usefulness for investors and limitations, as well reconciliations below to the most directly comparable GAAP financial measures.

 

Conference Call

As previously announced, Gentherm will conduct a conference call today at 8:00 am Eastern Time to review these results. The dial-in number for the call is 1-877-407-4018 (callers in the U.S.) or +1-201-689-8471 (callers outside this U.S.). The passcode for the live call is 13754880.

A live webcast and one-year archived replay of the call, as well as a copy of the supplemental materials that will be used during the conference call, can be accessed on the Events page of the Investor section of Gentherm's website at www.gentherm.com.

A telephonic replay will be available approximately two hours after the call until 11:59 pm Eastern Time on August 7, 2025. The replay can be accessed by dialing 1-844-512-2921 (callers in the U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode for the replay is 13754880.

Investor Contact
Gregory Blanchette
investors@gentherm.com
248.308.1702

Media Contact
Melissa Fischer
media@gentherm.com
248.289.9702

About Gentherm

Gentherm (NASDAQ: THRM) is a global market leader of innovative thermal management and pneumatic comfort technologies. Automotive products include Climate Control Seats (CCS®), Climate Control Interiors (CCI™), Lumbar and Massage Comfort Solutions, and Valve Systems. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has more than 14,000 employees in facilities across 13 countries. In 2024, the company recorded annual sales of approximately $1.5 billion and secured $2.4 billion in automotive new business awards. For more information, go to www.gentherm.com.

 


 

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Forward-Looking Statements

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Gentherm Incorporated's goals, beliefs, plans and expectations about its prospects for the future and other future events. The forward-looking statements included in this release are made as of the date hereof or as of the date specified herein and are based on management's reasonable expectations and beliefs. In making these statements we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, third party information and projections from sources that management believes to be reputable, as well as other factors we consider appropriate under the circumstances. Such statements are subject to a number of important assumptions, significant risks and uncertainties (some of which are beyond our control) and other factors that may cause actual results or performance to differ materially from that described in or indicated by the forward-looking statements, including but not limited to:

macroeconomic, geopolitical and similar global factors in the cyclical Automotive industry;
the impact of, and our ability to mitigate the effects of, global economic and trade policies, including increases in duties, tariffs and taxation on the import or export of our products related to U.S. trade disputes;
increasing U.S. and global competition, including with non-traditional entrants;
our ability to effectively manage new product launches and research and development, and the market acceptance of such products and technologies;
the evolution and challenges of the automotive industry towards electric vehicles, autonomous vehicles and mobility on demand services, and related consumer behaviors and preferences;
our ability to convert automotive new business awards into product revenues;
the constraints in the supply chain environment, and inflationary and other cost pressures;
the production levels of our major customers and OEMs in our relevant markets and sudden fluctuations in such production levels;
our business in China, which is subject to unique operational, competitive, geopolitical, regulatory and economic risks;
the impact of our global operations, including our global supply chain, operations within Ukraine, and foreign currency and exchange risk;
our product quality and safety and impact of product safety recalls and alleged defects in products;
our ability to attract and retain highly skilled employees and wage inflation;
a tightening labor market, labor shortages or work stoppages impacting us, our customers or our suppliers, such as recent labor strikes among certain OEMs and suppliers;
our achievement of product cost reductions to offset customer-imposed price reductions or other pricing pressures;
our ability to execute efforts to optimize our global supply chain and manufacturing footprint, including opening new facilities and transferring production;
our ability to source, consummate, integrate and achieve planned benefits of strategic acquisitions, investments and, as applicable, exits;
any security breaches and other disruptions to our information technology networks and systems, as well as privacy, data security and data protection risks, including risks associated with use of artificial intelligence capabilities in our business operations;
any loss or insolvency of our key customers and OEMs, or key suppliers;
our ability to project future sales volume based on third-party information, based on which we manage our business;
the protection of our intellectual property in certain jurisdictions;
our compliance with global anti-corruption laws and regulations;
legal and regulatory proceedings and claims involving us or one of our major customers;

 


 

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the extensive regulation of our patient temperature management business;
risks associated with our manufacturing processes;
the effects of climate change and catastrophic events, as well as regulatory and stakeholder-imposed requirements to address climate change and other sustainability issues;
our product quality and safety;
our borrowing availability under our revolving credit facility, as well ability to access the capital markets, to support our planned growth; and
our indebtedness and compliance with our debt covenants.

The foregoing risks should be read in conjunction with the Company's reports filed with or furnished to the Securities and Exchange Commission (the “SEC”), including “Risk Factors,” in its most recent Annual Report on Form 10-K and subsequent SEC filings, for a discussion of these and other risks and uncertainties. In addition, with reasonable frequency, we have entered into business combinations, acquisitions, divestitures, strategic investments and other significant transactions. Such forward-looking statements do not include the potential impact of any such transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results. Moreover, we operate in a very competitive and rapidly changing environment and new risks emerge from time to time.

Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its strategies or expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Use of Non-GAAP Financial Measures

In addition to the results reported in accordance with GAAP throughout this release, the Company has provided here or elsewhere information regarding: adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”); Adjusted EBITDA margin; adjusted earnings per share (“Adjusted earnings per share” or “Adjusted EPS”); free cash flow; net capital expenditures (“net CAPEX”); Net Debt, liquidity; net leverage ratio (“net leverage”); revenue, segment revenue and product revenue excluding foreign currency translation and other specified gains and losses; and adjusted operating expenses, each a non-GAAP financial measure. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, non-cash stock based compensation expenses, restructuring expenses, net, unrealized currency gain or loss and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by product revenues. The Company defines Adjusted EPS as earnings adjusted by restructuring expenses, net, unrealized currency gain or loss and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines Free Cash Flow as Net cash from operating activities less Purchases of property and equipment. The Company defines net CAPEX as Purchases of property and equipment less Proceeds from the sale of property and equipment. The Company defines Net Debt as the principal amount of all Consolidated Funded Indebtedness (as defined in the Credit Agreement) less cash and cash equivalents. The Company defines liquidity as the sum of cash and cash equivalents and availability under the Company’s revolving line of credit. The Company defines net leverage as Net Debt divided by Adjusted EBITDA for the trailing four fiscal quarters. The Company defines revenue, segment revenue or product revenue excluding foreign currency translation and other specified gains and losses as such revenue, excluding the estimated effects of foreign currency exchange on revenue by translating actual revenue using the prior period foreign currency exchange rates and excluding the other items specified. The Company defines adjusted operating expenses as operating expenses excluding related non-cash stock based compensation, restructuring expenses, net, and other gains and losses not reflective of the Company’s ongoing operations.

The Company’s reconciliations are included in this release or can be found in the supplemental materials on the Company’s website.

 


 

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In evaluating its business, the Company considers and uses Free Cash Flow, Net Debt, net leverage and liquidity as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management provides such non-GAAP financial measures so that investors will have the same financial information that management uses with the belief that it will assist investors in properly assessing the Company's performance on a period-over-period basis by excluding matters not indicative of the Company’s ongoing operating or liquidity results and therefore enhance the comparability of the Company's results and provide additional information for analyzing trends in the business. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur revenues, expenses, and cash and non-cash obligations that are the same as or similar to some of the adjustments in our presentation of non-GAAP financial measures. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There also can be no assurance that we will not modify the presentation of our non-GAAP financial measures in the future, and any such modification may be material. Other companies in our industry may define and calculate these non-GAAP financial measures differently than we do and those calculations may not be comparable to our metrics. These non-GAAP measures have limitations as analytical tools, and when assessing the Company's operating performance or liquidity, investors should not consider these non-GAAP measures in isolation, or as a substitute for net income, revenue or other consolidated income statement or cash flow statement data prepared in accordance with GAAP.

Non-GAAP measures referenced in this release and other public communications may include estimates of future Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS. The Company has not reconciled the non-GAAP forward-looking guidance included in this release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to taxes and non-recurring items, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

 


 

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GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Product revenues

 

$

375,090

 

 

$

375,683

 

 

$

728,944

 

 

$

731,698

 

Cost of sales

 

 

285,328

 

 

 

278,982

 

 

 

552,717

 

 

 

546,244

 

Gross margin

 

 

89,762

 

 

 

96,701

 

 

 

176,227

 

 

 

185,454

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Net research and development expenses

 

 

22,558

 

 

 

21,861

 

 

 

46,774

 

 

 

44,606

 

Selling, general and administrative expenses

 

 

41,087

 

 

 

39,410

 

 

 

79,565

 

 

 

80,131

 

Restructuring expenses, net

 

 

2,108

 

 

 

2,442

 

 

 

6,622

 

 

 

9,680

 

Loss on sale of land and building, net

 

 

 

 

 

 

 

 

2,196

 

 

 

 

Total operating expenses

 

 

65,753

 

 

 

63,713

 

 

 

135,157

 

 

 

134,417

 

Operating income

 

 

24,009

 

 

 

32,988

 

 

 

41,070

 

 

 

51,037

 

Interest expense, net

 

 

(4,043

)

 

 

(4,002

)

 

 

(7,598

)

 

 

(7,246

)

Foreign currency (loss) gain

 

 

(17,432

)

 

 

(282

)

 

 

(27,730

)

 

 

2,267

 

Other (loss) income

 

 

 

 

 

(284

)

 

 

(1,124

)

 

 

689

 

Earnings before income tax

 

 

2,534

 

 

 

28,420

 

 

 

4,618

 

 

 

46,747

 

Income tax expense

 

 

2,057

 

 

 

9,544

 

 

 

4,269

 

 

 

13,086

 

Net income

 

$

477

 

 

$

18,876

 

 

$

349

 

 

$

33,661

 

Basic earnings per share

 

$

0.02

 

 

$

0.60

 

 

$

0.01

 

 

$

1.07

 

Diluted earnings per share

 

$

0.02

 

 

$

0.60

 

 

$

0.01

 

 

$

1.06

 

Weighted average number of shares – basic

 

 

30,600

 

 

 

31,534

 

 

 

30,687

 

 

 

31,539

 

Weighted average number of shares – diluted

 

 

30,652

 

 

 

31,710

 

 

 

30,781

 

 

 

31,714

 

 

 

 

 


 

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GENTHERM INCORPORATED

REVENUE BY PRODUCT CATEGORY AND RECONCILIATION OF FOREIGN CURRENCY TRANSLATION IMPACT

(Dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024 (a)

 

 

% Change

 

 

2025

 

 

2024 (a)

 

 

% Change

 

Climate Control Seats

 

$

200,020

 

 

$

199,766

 

 

 

0.1

 %

 

$

391,173

 

 

$

391,815

 

 

 

(0.2

)%

Lumbar and Massage Comfort Solutions

 

 

52,530

 

 

 

45,869

 

 

 

14.5

 %

 

 

97,843

 

 

 

84,120

 

 

 

16.3

 %

Climate Control Interiors

 

 

49,585

 

 

 

47,031

 

 

 

5.4

 %

 

 

94,926

 

 

 

91,429

 

 

 

3.8

 %

Climate and Comfort Electronics

 

 

5,906

 

 

 

4,157

 

 

 

42.1

 %

 

 

13,621

 

 

 

8,383

 

 

 

62.5

 %

Automotive Climate and Comfort Solutions

 

 

308,041

 

 

 

296,823

 

 

 

3.8

 %

 

 

597,563

 

 

 

575,747

 

 

 

3.8

 %

Valve Systems

 

 

25,143

 

 

 

29,267

 

 

 

(14.1

)%

 

 

48,316

 

 

 

55,892

 

 

 

(13.6

)%

Other Automotive

 

 

30,668

 

 

 

37,912

 

 

 

(19.1

)%

 

 

59,847

 

 

 

77,001

 

 

 

(22.3

)%

Subtotal Automotive segment

 

 

363,852

 

 

 

364,002

 

 

 

(0.0

)%

 

 

705,726

 

 

 

708,640

 

 

 

(0.4

)%

Medical segment

 

 

11,238

 

 

 

11,681

 

 

 

(3.8

)%

 

 

23,218

 

 

 

23,058

 

 

 

0.7

 %

Total Company

 

$

375,090

 

 

$

375,683

 

 

 

(0.2

)%

 

$

728,944

 

 

$

731,698

 

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation impact (b)

 

 

5,514

 

 

 

 

 

 

 

 

 

93

 

 

 

 

 

 

 

Total Company, excluding foreign currency translation impact

 

$

369,576

 

 

$

375,683

 

 

 

(1.6

)%

 

$

728,851

 

 

$

731,698

 

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Prior period product categories have been recast to conform with the current period presentation. See "Revenue by Product Category Historical Recast" table below for additional information.

 

(b) Foreign currency translation impacts for the Automotive segment and Medical segment were $5,396 and $117 respectively, for the three months ended June 30, 2025. Foreign currency translation impacts for Automotive Climate and Comfort Solutions were $3,916 for the three months ended June 30, 2025. Foreign currency translation impacts for the Automotive segment and Medical segment were $44 and $49 respectively, for the six months ended June 30, 2025. Foreign currency translation impacts for Automotive Climate and Comfort Solutions were $(355) for the six months ended June 30, 2025.

 

 

 


 

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GENTHERM INCORPORATED

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

AND ADJUSTED EBITDA MARGIN

(Dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net income

 

$

477

 

 

$

18,876

 

 

$

349

 

 

$

33,661

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

13,058

 

 

 

12,811

 

 

 

25,846

 

 

 

26,391

 

Income tax expense

 

 

2,057

 

 

 

9,544

 

 

 

4,269

 

 

 

13,086

 

Interest expense, net

 

 

4,043

 

 

 

4,002

 

 

 

7,598

 

 

 

7,246

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock based compensation

 

 

3,992

 

 

 

3,610

 

 

 

6,589

 

 

 

7,407

 

Restructuring expenses, net

 

 

2,108

 

 

 

2,442

 

 

 

6,622

 

 

 

9,680

 

Unrealized currency loss (gain)

 

 

18,877

 

 

 

(497

)

 

 

28,484

 

 

 

(2,353

)

Loss on sale of land and building, net

 

 

 

 

 

 

 

 

2,196

 

 

 

 

Leadership transition expenses

 

 

1,260

 

 

 

 

 

 

2,158

 

 

 

 

Non-automotive electronics inventory benefit

 

 

 

 

 

(712

)

 

 

 

 

 

(1,772

)

Other (a)

 

 

25

 

 

 

(203

)

 

 

1,127

 

 

 

69

 

Adjusted EBITDA

 

$

45,897

 

 

$

49,873

 

 

$

85,238

 

 

$

93,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

375,090

 

 

$

375,683

 

 

$

728,944

 

 

$

731,698

 

Net income margin

 

 

0.1

%

 

 

5.0

%

 

 

0.0

%

 

 

4.6

%

Adjusted EBITDA margin

 

 

12.2

%

 

 

13.3

%

 

 

11.7

%

 

 

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Includes a $1,294 write-down of an equity investment for the six months ended June 30, 2025.

 

 

 


 

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GENTHERM INCORPORATED

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

AND ADJUSTED EARNINGS PER SHARE

(Dollars in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net income

 

$

477

 

 

$

18,876

 

 

$

349

 

 

$

33,661

 

Amortization of acquisition related intangibles

 

 

1,638

 

 

 

1,584

 

 

 

3,197

 

 

 

3,189

 

Restructuring expenses, net

 

 

2,108

 

 

 

2,442

 

 

 

6,622

 

 

 

9,680

 

Unrealized currency loss (gain)

 

 

18,877

 

 

 

(497

)

 

 

28,484

 

 

 

(2,353

)

Loss on sale of land and building, net

 

 

 

 

 

 

 

 

2,196

 

 

 

 

Leadership transition expenses

 

 

1,260

 

 

 

 

 

 

2,158

 

 

 

 

Non-automotive electronics inventory benefit

 

 

 

 

 

(712

)

 

 

 

 

 

(1,772

)

Other

 

 

25

 

 

 

(203

)

 

 

1,127

 

 

 

69

 

Tax effect of above

 

 

(7,709

)

 

 

(454

)

 

 

(11,840

)

 

 

(1,851

)

Adjusted net income

 

$

16,676

 

 

$

21,036

 

 

$

32,293

 

 

$

40,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

30,600

 

 

 

31,534

 

 

 

30,687

 

 

 

31,539

 

Diluted

 

 

30,652

 

 

 

31,710

 

 

 

30,781

 

 

 

31,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, as reported:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

0.60

 

 

$

0.01

 

 

$

1.07

 

Diluted

 

$

0.02

 

 

$

0.60

 

 

$

0.01

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.54

 

 

$

0.67

 

 

$

1.05

 

 

$

1.29

 

Diluted

 

$

0.54

 

 

$

0.66

 

 

$

1.05

 

 

$

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

img17760854_0.jpg

 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands, except share data)

(Unaudited)

 

 

 

June 30, 2025

 

 

December 31, 2024

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

128,297

 

 

$

134,134

 

Accounts receivable, net

 

 

294,719

 

 

 

258,112

 

Inventory:

 

 

 

 

 

 

Raw materials

 

 

130,029

 

 

 

137,511

 

Work in process

 

 

40,466

 

 

 

19,059

 

Finished goods

 

 

77,889

 

 

 

70,786

 

Inventory, net

 

 

248,384

 

 

 

227,356

 

Other current assets

 

 

87,415

 

 

 

64,413

 

Total current assets

 

 

758,815

 

 

 

684,015

 

Property and equipment, net

 

 

262,419

 

 

 

252,970

 

Goodwill

 

 

108,891

 

 

 

99,603

 

Other intangible assets, net

 

 

56,076

 

 

 

57,251

 

Operating lease right-of-use assets

 

 

59,510

 

 

 

43,954

 

Deferred income tax assets

 

 

78,336

 

 

 

75,041

 

Other non-current assets

 

 

37,354

 

 

 

34,722

 

Total assets

 

$

1,361,401

 

 

$

1,247,556

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

254,133

 

 

$

226,815

 

Current lease liabilities

 

 

9,913

 

 

 

7,517

 

Current maturities of long-term debt

 

 

146

 

 

 

137

 

Other current liabilities

 

 

112,733

 

 

 

105,824

 

Total current liabilities

 

 

376,925

 

 

 

340,293

 

Long-term debt, less current maturities

 

 

209,000

 

 

 

220,064

 

Non-current lease liabilities

 

 

51,135

 

 

 

37,052

 

Pension benefit obligation

 

 

3,906

 

 

 

4,017

 

Other non-current liabilities

 

 

20,690

 

 

 

29,183

 

Total liabilities

 

$

661,656

 

 

$

630,609

 

Shareholders’ equity:

 

 

 

 

 

 

Common Stock:

 

 

 

 

 

 

No par value; 55,000,000 shares authorized 30,519,826 and 30,788,639 issued and outstanding at June 30, 2025 and December 31, 2024, respectively

 

 

 

 

 

2,049

 

Paid-in capital

 

 

1,590

 

 

 

4,290

 

Accumulated other comprehensive income (loss)

 

 

2,005

 

 

 

(85,193

)

Accumulated earnings

 

 

696,150

 

 

 

695,801

 

Total shareholders’ equity

 

 

699,745

 

 

 

616,947

 

Total liabilities and shareholders’ equity

 

$

1,361,401

 

 

$

1,247,556

 

 

 


 

img17760854_0.jpg

 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

Operating Activities:

 

 

 

 

 

 

Net income

 

$

349

 

 

$

33,661

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

26,089

 

 

 

26,733

 

Deferred income taxes

 

 

(12,202

)

 

 

4,365

 

Stock based compensation

 

 

6,604

 

 

 

7,392

 

Loss on disposition of property and equipment

 

 

2,444

 

 

 

(42

)

Provisions for inventory

 

 

3,213

 

 

 

793

 

Other non-cash items, including unrealized foreign currency (gain) loss

 

 

31,364

 

 

 

(863

)

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(23,690

)

 

 

(14,310

)

Inventory

 

 

(13,430

)

 

 

(12,338

)

Other assets

 

 

(23,102

)

 

 

(36,874

)

Accounts payable

 

 

20,522

 

 

 

8,436

 

Other liabilities

 

 

13,540

 

 

 

9,871

 

Net cash provided by operating activities

 

 

31,701

 

 

 

26,824

 

Investing Activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(23,728

)

 

 

(30,704

)

Proceeds from the sale of property and equipment

 

 

3,745

 

 

 

81

 

Proceeds from deferred purchase price of factored receivables

 

 

744

 

 

 

6,208

 

Cost of technology investments

 

 

(590

)

 

 

(265

)

Net cash used in investing activities

 

 

(19,829

)

 

 

(24,680

)

Financing Activities:

 

 

 

 

 

 

Borrowings on debt

 

 

52,000

 

 

 

35,000

 

Repayments of debt

 

 

(63,076

)

 

 

(35,420

)

Proceeds from the exercise of Common Stock options

 

 

 

 

 

2,763

 

Taxes withheld and paid on employees' stock based compensation

 

 

(1,238

)

 

 

(2,417

)

Cash paid for the repurchase of Common Stock

 

 

(10,015

)

 

 

(21,703

)

Net cash used in financing activities

 

 

(22,329

)

 

 

(21,777

)

Foreign currency effect

 

 

4,620

 

 

 

(6,574

)

Net decrease in cash and cash equivalents

 

 

(5,837

)

 

 

(26,207

)

Cash and cash equivalents at beginning of period

 

 

134,134

 

 

 

149,673

 

Cash and cash equivalents at end of period

 

$

128,297

 

 

$

123,466

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid for taxes

 

$

12,843

 

 

$

12,300

 

Cash paid for interest

 

 

6,757

 

 

 

6,723

 

 

 


 

img17760854_0.jpg

 

GENTHERM INCORPORATED

OTHER NON-GAAP RECONCILIATIONS

(Dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Total operating expenses

 

$

65,753

 

 

$

63,713

 

 

$

135,157

 

 

$

134,417

 

Restructuring expense, net

 

 

(2,108

)

 

 

(2,442

)

 

 

(6,622

)

 

 

(9,680

)

Non-cash stock based compensation

 

 

(3,883

)

 

 

(3,519

)

 

 

(6,232

)

 

 

(7,009

)

Leadership transition expenses

 

 

(1,260

)

 

 

 

 

 

(2,158

)

 

 

 

Loss on sale of land and building, net

 

 

 

 

 

 

 

 

(2,196

)

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

(840

)

Adjusted operating expenses

 

$

58,502

 

 

$

57,752

 

 

$

117,949

 

 

$

116,888

 

 

 

 

 

June 30, 2025

 

 

June 30, 2024

 

Cash and cash equivalents

 

$

128,297

 

 

$

123,466

 

Revolving line of credit availability

 

 

287,970

 

 

 

278,000

 

Total liquidity

 

$

416,267

 

 

$

401,466

 

 

 


 

img17760854_0.jpg

 

GENTHERM INCORPORATED

REVENUE BY PRODUCT CATEGORY HISTORICAL RECAST

(Dollars in thousands)

(Unaudited)

 

Product categories have been modified, and prior-period amounts have been recast to conform with the current period presentation. Climate Control Seats (CCS) includes CCS Heat (previously Seat Heaters), CCS Vent/CCS Active Cool (previously CCS) and CCS Neck Conditioners (previously included in Other Automotive). Climate Control Interiors (CCI) includes CCI Steering Wheel Heat and CCI Interior Heat (previously included in Other Automotive). Other Automotive includes Automotive Cables, Battery Performance Solutions, non-automotive electronics and contract manufacturing electronics (previously classified as Electronics).

 

The table below shows the prior period amounts on a quarterly basis for the years 2023 and 2024 recast to conform with the current presentation:

 

 

 

2023

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Full Year

 

Climate Control Seats

 

$

193,395

 

 

$

199,780

 

 

$

201,221

 

 

$

203,192

 

 

$

797,588

 

Climate Control Interiors

 

 

42,947

 

 

 

46,084

 

 

 

45,398

 

 

 

43,547

 

 

 

177,976

 

Lumbar and Massage Comfort Solutions

 

 

38,738

 

 

 

37,604

 

 

 

33,260

 

 

 

35,321

 

 

 

144,923

 

Climate and Comfort Electronics

 

 

3,539

 

 

 

2,277

 

 

 

2,842

 

 

 

4,202

 

 

 

12,860

 

Automotive Climate and Comfort Solutions

 

 

278,619

 

 

 

285,745

 

 

 

282,721

 

 

 

286,262

 

 

 

1,133,347

 

Valve Systems

 

 

26,994

 

 

 

27,692

 

 

 

27,830

 

 

 

23,746

 

 

 

106,262

 

Other Automotive

 

 

47,079

 

 

 

48,096

 

 

 

44,231

 

 

 

43,937

 

 

 

183,343

 

Subtotal Automotive segment

 

 

352,692

 

 

 

361,533

 

 

 

354,782

 

 

 

353,945

 

 

 

1,422,952

 

Medical segment

 

 

10,933

 

 

 

10,790

 

 

 

11,413

 

 

 

12,988

 

 

 

46,124

 

Total Company

 

$

363,625

 

 

$

372,323

 

 

$

366,195

 

 

$

366,933

 

 

$

1,469,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Full Year

 

Climate Control Seats

 

$

192,049

 

 

$

199,766

 

 

$

189,898

 

 

$

189,597

 

 

$

771,310

 

Climate Control Interiors

 

 

44,398

 

 

 

47,031

 

 

 

49,283

 

 

 

46,260

 

 

 

186,972

 

Lumbar and Massage Comfort Solutions

 

 

38,251

 

 

 

45,869

 

 

 

48,970

 

 

 

45,494

 

 

 

178,584

 

Climate and Comfort Electronics

 

 

4,226

 

 

 

4,157

 

 

 

4,883

 

 

 

4,097

 

 

 

17,363

 

Automotive Climate and Comfort Solutions

 

 

278,924

 

 

 

296,823

 

 

 

293,034

 

 

 

285,448

 

 

 

1,154,229

 

Valve Systems

 

 

26,625

 

 

 

29,267

 

 

 

26,082

 

 

 

23,082

 

 

 

105,056

 

Other Automotive

 

 

39,089

 

 

 

37,912

 

 

 

39,688

 

 

 

30,304

 

 

 

146,993

 

Subtotal Automotive segment

 

 

344,638

 

 

 

364,002

 

 

 

358,804

 

 

 

338,834

 

 

 

1,406,278

 

Medical segment

 

 

11,377

 

 

 

11,681

 

 

 

12,708

 

 

 

14,080

 

 

 

49,846

 

Total Company

 

$

356,015

 

 

$

375,683

 

 

$

371,512

 

 

$

352,914

 

 

$

1,456,124