Gentherm Q2 2026 Earnings Call Transcript

Gentherm (NASDAQ: THRM ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This content is powered APIs. For comprehensive financial data and transcripts, visit View the webcast at Summary Gentherm reported a strong second quarter with revenue of $416 million, up 11% year-over-year, driven by growth in Automotive Climate and Comfort Solutions.

The company raised its full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted free cash flow due to strong first-half performance. Strategic initiatives include the acquisition of Innovative Medical Equipment and the commercial launch of a new medical product, Thermofix, demonstrating Gentherm's ability to transfer automotive technologies to new markets. Gentherm secured approximately $690 million in automotive new business awards, bringing the year-to-date total to over $1 billion. The company is in the process of merging with Modine Performance Technologies, a move expected to diversify its market exposure and create a more balanced business.

Gentherm announced a new stock repurchase authorization of up to $400 million over three years, reflecting confidence in future cash generation. Management emphasized strong operational execution and continued strategic focus on profitable growth and diversification, particularly in expanding non-automotive markets. Full Transcript OPERATOR Greetings and welcome to Gentherm second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star-0 on your telephone keypad. Please note that this conference is being recorded. I'll now turn the conference over to Gregory Blanchett, Senior Director of Investor Relations.

Thank you. You may begin. Gregory Blanchett, Senior Director of Investor Relations Thank you and good morning, everyone, and thanks for joining us today. com.

Additionally, a webcast replay of today's call will be available later today on the Investor Relations section of Gentherm's website. During this call we will make forward-looking statements within the meaning of federal securities laws. These statements reflect our current views with respect to future events and financial performance and actual results may differ materially. We undertake no obligation to update them except as required by law.

Please see Gentherm's earnings release and its SEC filings, including the latest 10-K and subsequent reports, for discussions of our risk factors and other significant assumptions, risks and uncertainties underlying such forward-looking statements. During the call we will also discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release and investor presentation. On the call with me today are Bill Presley, President and Chief Executive Officer, and John Dewey, our Chief Financial Officer.

During their comments they will be referring to a presentation deck that we've made available on the Investor section of Gentherm's website. After the prepared remarks, we'd be pleased to take your questions. Now I'd like to turn the call over to Bill. William Presley, President and Chief Executive Office Thank you, Greg, and good morning everyone.

Let's begin on slide 3 for an update on our business and the market. Strong commercial execution, where we continue to significantly outperform the market, combined with operational discipline resulted in an excellent first half, positioning Gentherm to deliver a solid year. Based on this performance, we are raising our full-year 2026 guidance. We continue to monitor the macroeconomic and geopolitical environment and at the same time we are proactively managing inflationary pressures through disciplined commercial actions and operational execution.

As we look ahead, our priorities remain clear. We are focused on executing our strategy, capitalizing on the opportunities within our control, and driving sustainable, profitable growth for our shareholders. Strategic, profitable growth is a cornerstone of our strategy and we continue to achieve critical milestones that position us for long-term success. We have confidence that Gentherm's automotive business will grow over market while we continue to build momentum beyond the light vehicle market.

During the quarter, Gentherm products were selected by two leading North American-based furniture brands in the home and office market. In less than a year, we have successfully deployed our core technologies with five new customers and have visibility to 50 to 100 million of revenue in this market by 2028, a strong proof point that our technology platforms are readily transferable beyond automotive. And that we are moving with speed to capture these opportunities in the medical market. We remain focused on refreshing the product portfolio and expanding our customer commercial channels.

I am pleased to announce that we have received FDA 510(k) clearance for Thermofix, an innovative new solution developed by leveraging our proven automotive technology and intellectual property. This is another powerful example of our ability to transfer differentiated automotive innovations into new markets where they solve meaningful customer challenges. Our patented solutions combine conductive, air-free patient warming with securement technology to help prevent both hypothermia and patient movement during robotic surgical procedures. We are actively commercializing Thermofix and expect initial sales in the third quarter.

We are encouraged by the strong mark