olivLaw · US equity research
Gentherm Incorporated THRM
Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)
Gentherm is a global leader in thermal management and pneumatic comfort technologies, with climate-controlled seats and interiors for the automotive sector and a medical division for patient temperature management. After completing the combination with Modine's Performance Technologies in October 2026, the company is broader in scope, and its 2026 guidance was raised to include the Modine contribution in the fourth quarter.
At the close of 04 Nov 2026, Gentherm Incorporated (THRM) stock was 31.11 USD (+2.67% on the day), with market capitalisation 1.6 bn USD, P/E 105.3 on diluted EPS of 0.30 USD over the last 12 months, beta 0.97, 52-week range 26.15–45.61 USD. Latest reported quarter (Q3 2026): revenue of 405.1 m USD (+4.7% YoY), net income of -2.6 m USD (−117.3% YoY), diluted EPS -0.08 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 48.7
- neutral
- Bollinger (20, 2)
- 26.94 – 33.22
- in the upper half of the band · %B 0.66 · band width 20.9%
- SMA 50 / 200
- 33.99 / 33.86
- mixed trend
- MACD (12, 26, 9)
- -0.68 / -1.16
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −3.5% | −1.1% | −2.4 pp | — |
| 3 months | −25.3% | −0.5% | −24.9 pp | — |
| 6 months | +0.8% | +4.4% | −3.6 pp | — |
| Year to date | −14.5% | +12.3% | −26.8 pp | — |
| 1 year | −15.6% | +13.5% | −29.1 pp | −10.2% |
| 3 years | −29.7% | +76.4% | −106.1 pp | +9.8% |
| 5 years | −62.7% | +63.7% | −126.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 352.9 m | 353.9 m | 375.1 m | 386.9 m | 382.8 m | 393.7 m | 416.2 m | 405.1 m |
| Cost of revenue | 266.8 m | 267.4 m | 285.3 m | 291.7 m | 292.0 m | 296.5 m | 319.7 m | 310.8 m |
| Gross profit | 86.1 m | 86.5 m | 89.8 m | 95.1 m | 90.8 m | 97.2 m | 96.4 m | 94.3 m |
| Research & development | 21.1 m | 24.2 m | 22.6 m | 24.4 m | 23.6 m | 23.9 m | 24.1 m | 23.5 m |
| SG&A | 38.1 m | 38.5 m | 41.1 m | 42.9 m | 47.6 m | 55.3 m | 55.7 m | 51.6 m |
| Operating income | 23.6 m | 17.1 m | 24.0 m | 23.9 m | 17.8 m | 11.3 m | 10.7 m | 14.4 m |
| Depreciation & amortisation | 12.9 m | 12.9 m | 13.2 m ≈ | 13.4 m ≈ | 13.9 m | 14.2 m | 14.5 m ≈ | 15.5 m ≈ |
| Pre-tax income | 36.1 m | 2.1 m | 2.5 m | 20.9 m | 10.3 m | 7.6 m | 7.3 m | 10.8 m |
| Income tax | 20.8 m | 2.2 m | 2.1 m | 5.9 m | 7.3 m | 3.4 m | 2.9 m | 13.4 m |
| Net income | 15.3 m | -128.0 k | 477.0 k | 14.9 m | 3.0 m | 4.2 m | 4.4 m | -2.6 m |
| Diluted EPS | 0.49 ≈ | 0.00 | 0.02 | 0.49 | 0.10 ≈ | 0.14 | 0.14 | -0.08 |
| Operating cash flow | 36.6 m | -13.3 m | 45.0 m ≈ | 56.1 m ≈ | 29.0 m | -5.0 m | 7.3 m ≈ | 33.7 m ≈ |
| Capex | 23.0 m | 14.9 m | 8.9 m ≈ | 9.7 m ≈ | 22.3 m | 5.7 m | 8.6 m ≈ | 8.4 m ≈ |
| Share repurchases | 10.0 m | 0 | 10.0 m ≈ | 0 ≈ | 0 | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 95 percentile of its own 40-quarter history (min 16.0, median 35.1, max 159.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 971.7 m | 913.1 m | 1.0 bn | 1.2 bn | 1.5 bn | 1.5 bn | 1.5 bn |
| Revenue YoY | +5.5% | −7.3% | −6.0% | +14.6% | +15.2% | +21.9% | −0.9% | +2.9% |
| Net income | 41.9 m | 48.9 m | 59.7 m | 93.4 m | 24.4 m | 40.3 m | 64.9 m | 18.3 m |
| Net income YoY | +18.9% | +16.6% | +22.2% | +56.5% | −73.8% | +65.1% | +61.0% | −71.8% |
| Diluted EPS | 1.16 | 1.47 | 1.81 | 2.79 | 0.73 | 1.22 | 2.06 | 0.59 |
| Diluted EPS YoY | +20.8% | +26.7% | +23.1% | +54.1% | −73.8% | +67.1% | +68.9% | −71.4% |
| net % | 4.0% | 5.0% | 6.5% | 8.9% | 2.0% | 2.7% | 4.5% | 1.2% |
| Free cash flow | 76.9 m | 95.1 m | 93.5 m | 104.6 m | -24.8 m | 81.7 m | 36.3 m | 61.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 160.8 m USD
- Financial debt
- 189.1 m USD
- Net debt
- 28.2 m USD
- Equity
- 720.3 m USD
- Total assets
- 1.4 bn USD
- Debt / equity
- 0.26x
- Current ratio
- 1.92x
- ROE
- 2.7%
- ROA
- 1.4%
- FCF margin
- 4.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 913.1 m | 1.0 bn | 1.2 bn | 1.5 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 645.0 m | 742.5 m | 931.0 m | 1.1 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 268.1 m | 303.6 m | 273.7 m | 351.6 m | 366.4 m | 362.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Research & development | 68.0 m | 75.2 m | 85.7 m | 94.4 m | 88.7 m | 94.8 m | SEC (XBRL)· 19 Feb 2026verified |
| SG&A | 105.0 m | 109.6 m | 132.7 m | 155.6 m | 155.1 m | 170.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | 89.2 m | 115.0 m | 48.3 m | 77.4 m | 107.0 m | 82.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 41.1 m | 38.8 m | 44.4 m | 50.9 m | 53.0 m | 53.4 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 130.3 m ≈ | 153.8 m ≈ | 92.7 m ≈ | 128.4 m ≈ | 160.0 m ≈ | 136.1 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Pre-tax income | 81.6 m | 113.9 m | 38.4 m | 55.0 m | 102.3 m | 35.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | 21.9 m | 20.4 m | 13.9 m | 14.6 m | 37.3 m | 17.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | 59.7 m | 93.4 m | 24.4 m | 40.3 m | 64.9 m | 18.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | 1.81 | 2.79 | 0.73 | 1.22 | 2.06 | 0.59 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 33.0 m | 33.5 m | 33.5 m | 33.1 m | 31.5 m | 30.9 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 268.3 m | 190.6 m | 153.9 m | 149.7 m | 134.1 m | 160.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 211.7 m | 183.0 m | 247.1 m | 253.6 m | 258.1 m | 281.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 122.4 m | 159.5 m | 218.2 m | 205.9 m | 227.4 m | 252.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 643.6 m | 565.8 m | 683.9 m | 687.6 m | 684.0 m | 777.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 152.6 m | 155.3 m | 244.5 m | 245.2 m | 253.0 m | 270.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 68.0 m | 66.0 m | 119.8 m | 104.1 m | 99.6 m | 108.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 46.4 m | 37.6 m | 73.9 m | 66.5 m | 57.3 m | 52.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 1.0 bn | 935.3 m | 1.2 bn | 1.2 bn | 1.2 bn | 1.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 116.0 m | 122.7 m | 182.2 m | 215.8 m | 226.8 m | 260.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 2.5 m | 2.5 m | 2.4 m | 621.0 k | 137.0 k | 73.0 k | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 189.9 m | 36.3 m | 232.7 m | 222.2 m | 220.1 m | 189.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 206.0 m | 213.1 m | 285.6 m | 325.0 m | 340.3 m | 404.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 436.5 m | 281.5 m | 567.0 m | 589.6 m | 630.6 m | 676.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 586.3 m † | 653.8 m † | 672.3 m † | 644.7 m † | 616.9 m † | 720.3 m † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 110.7 m | 143.1 m | 14.9 m | 119.3 m | 109.6 m | 116.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 17.2 m | 38.5 m | 39.7 m | 37.6 m | 73.3 m | 55.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 93.5 m ≈ | 104.6 m ≈ | -24.8 m ≈ | 81.7 m ≈ | 36.3 m ≈ | 61.1 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -18.2 m | -48.8 m | -239.9 m | -24.1 m | -53.5 m | -52.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | 115.5 m | -169.1 m | 189.9 m | -106.1 m | -51.7 m | -42.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 9.1 m | 20.0 m | — | 91.1 m | 51.6 m | 10.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 33 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation4
- Balance sheet76
- Quality51
- Growth31
- Returns9
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.38 – 16.53 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDA13.26 – 16.53 (Mid 14.69)13 companies used · median multiple 7.5x · quartiles 6.8x – 8.3xALV, APTV, ATMU, BWA, CPS, DCH, GNTX, LCII, LEA, MOD, PATK, PHIN, SMP
- Peers: P/E3.38 – 5.66 (Mid 4.45)19 companies used · median multiple 15.1x · quartiles 11.5x – 19.2xADNT, ALSN, ALV, APTV, ATMU, BWA, CAAS, DAN, DORM, GNTX, GTX, LCII, LEA, MGA, PATK, PHIN, SMP, STRT, VC
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 33/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 5.9% | 29 (vs peers) | 12% |
| Net margin · Quality | 0.6% | 41 (vs peers) | 7% |
| FCF conversion · Quality | 222.7% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 7.5% | 63 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -6.9% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 0.6x | 67 (vs peers) | 12% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 105.3x | 0 (vs peers) | 12% |
| EV/EBITDA · Valuation | 15.2x | 0 (vs peers) | 12% |
| FCF yield · Valuation | 1.2% | 15 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 0.6% | 9 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet76/100 · 2/3 factors with a value
- Growth31/100 · 2/2 factors with a value
- Quality51/100 · 3/3 factors with a value
- Returns· partial9/100 · 1/2 factors with a value
- Valuation4/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
GENTHERM INCORPORATED (THRM). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.5 bn USD in 2025; YoY growth 2.9%; net margin 0.6%; ROE 1.3%; net debt/EBITDA 0.6x.
The estimated value range is 8.32–11.10 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 9.57 USD, the price of 31.11 USD leaves a potential of -69.2% (value / price − 1) and a margin of safety of -225.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 33/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 222.7%
- Current ratio: 2.1x
What contradicts it
- ROIC: 5.9%
- EPS CAGR 3Y: -6.9%
- P/E (TTM): 105.3x
- EV/EBITDA: 15.2x
- FCF yield: 1.2%
- Shareholder yield (distributions): 0.6%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Interest coverage, Payout ratio (FCF).
Versus the vertical median
Motor Vehicle Parts & Accessories (SIC 3714) · same industry (4-digit SIC) · compared with 34 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MGAMagna International Inc. | 18.4 bn | 22.4 | 6.9% | 2.0% | −1.9% | +34% / +22% |
| BWABorgwarner Inc. | 10.1 bn | 21.5 | 8.2% | 3.4% | +1.6% | +17% / +50% |
| ALSNAllison Transmission Holdings, Inc. | 9.9 bn | 17.4 | 29.7% | 11.1% | −6.7% | +36% / +125% |
| ALVAutoliv, Inc. | 9.0 bn | 15.1 | 24.8% | 5.6% | +4.1% | +7% / +21% |
| APTVAptiv PLC | 8.8 bn | 11.9 | 8.5% | 4.6% | +3.5% | −44% / −48% |
| LEALear Corp | 5.7 bn | 10.4 | 11.6% | 2.5% | −0.2% | +11% / −11% |
| MODModine Manufacturing Co | 5.2 bn | 41.3 | 11.4% | 3.6% | +23.1% | −39% / +100% |
| GNTXGentex Corporation | 4.4 bn | 11.0 | 16.4% | 15.5% | +9.6% | −9% / −32% |
| DORMDorman Products, Inc. | 4.2 bn | 21.2 | 13.3% | 9.3% | +6.0% | +8% / +98% |
| ATMUAtmus Filtration Technologies Inc. | 3.9 bn | 18.3 | 55.8% | 11.3% | +5.7% | −5% / +119% |
| GTXGarrett Motion Inc. | 3.6 bn | 10.1 | — | 10.0% | +3.1% | +20% / +167% |
| PATKPatrick Industries Inc | 2.7 bn | 20.1 | 13.0% | 3.7% | +6.3% | −22% / +55% |
| PHINPhinia Inc. | 2.6 bn | 14.5 | 12.2% | 5.2% | +2.4% | +33% / +181% |
| DANDana Incorporated | 2.6 bn | 2.4 | 71.4% | 14.6% | −3.0% | +6% / +80% |
| LCIILci Industries | 2.5 bn | 12.1 | 15.0% | 5.2% | +10.2% | −8% / −4% |
| VCVisteon Corp | 2.0 bn | 13.8 | 10.8% | 4.1% | −2.5% | −22% / −32% |
| THRMGentherm Incorporated | 1.6 bn | 105.3 | 1.3% | 0.6% | +2.9% | −16% / −30% |
| ADNTAdient plc | 1.3 bn | 28.5 | 2.7% | 0.3% | −1.0% | −12% / −47% |
| DCHDauch Corporation | 1.1 bn | — | -15.2% | -2.0% | −4.7% | −27% / −31% |
| SMPStandard Motor Products, Inc. | 1.0 bn | 15.1 | 9.9% | 3.8% | +22.4% | +22% / +28% |
| AEVAAeva Technologies, Inc. | 661.5 m | — | — | -150.1% | +99.4% | −15% / +240% |
| CPSCooper-Standard Holdings Inc. | 391.6 m | — | — | -2.0% | +0.4% | −29% / +24% |
| HLLYHolley Inc. | 351.6 m | 35.3 | 2.3% | 1.7% | +1.9% | −32% / −30% |
| KNDIKandi Technologies Group, Inc. | 287.8 m | — | -30.5% | -107.4% | −31.5% | −63% / −88% |
| STRTStrattec Security Corp | 258.5 m | 15.6 | 7.2% | 2.9% | +2.5% | −14% / +201% |
1- and 3-year price returns: for THRM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 11.04 Total return -65% · Per year -65% | 19.49 Total return -37% · Per year -37% | 29.32 Total return -6% · Per year -6% |
| 3 years | 11.38 Total return -63% · Per year -28% | 22.55 Total return -28% · Per year -10% | 37.15 Total return 19% · Per year 6% |
| 5 years | 11.74 Total return -62% · Per year -18% | 26.08 Total return -16% · Per year -3% | 47.05 Total return 51% · Per year 9% |
- Exit P/E± 5.64
- Net margin± 3.95
- Annual revenue growth± 3.15
- Annual dilution± 0.33
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Gentherm is a global leader in thermal management and pneumatic comfort technologies, with climate-controlled seats and interiors for the automotive sector and a medical division for patient temperature management. After completing the combination with Modine's Performance Technologies in October 2026, the company is broader in scope, and its 2026 guidance was raised to include the Modine contribution in the fourth quarter 23.
SWOT
Strengths
- Leading global position in climate-controlled seating and pneumatic comfort, supported by proprietary technologies and patents 1.
- A regional manufacturing model close to major customers, which limits the direct impact of tariffs and trade restrictions 1.
- Low leverage after the Modine combination with high liquidity, giving flexibility for share repurchases 3.
Weaknesses
- High dependence on the cyclical auto industry, which is sensitive to production changes in key markets 1.
- Customer concentration, with Lear and Adient as the largest customers, which makes revenue vulnerable to losing a major client 1.
- Margins under pressure from material, labor and currency costs, with gross margin declining in the third quarter of 2026 3.
Opportunities
- Extending comfort technologies to commercial vehicles, agriculture, power equipment and home and office use, where the company has already won business 1.
- Synergies with Modine's Performance Technologies division could raise revenue and efficiency if realized 2.
- Integrating the ThermaZone products into existing medical channels, where cross-selling potential exists 2.
Threats
- Growing competition from Chinese suppliers that could reduce prices and margins in global markets 1.
- Geopolitical risks, including the conflict in Ukraine where an important plant is located, and tensions in the Middle East and Red Sea 1.
- Rapid changes in trade policy and tariffs that could affect costs and customer production 1.
Risks
- Dependence on auto productionhigh
Revenue depends on production volumes in a few key markets, and unexpected declines could materially affect financial results 1.
- Customer concentrationhigh
Losing or seeing reduced orders from major customers would have a substantial adverse effect on the business and cash flows 1.
- Modine integrationmedium
Realizing the announced benefits of the combination could be delayed or incomplete, and new debt must be managed 23.
- Ukraine exposuremedium
The Ukraine plant contributes part of revenue and could be affected by power interruptions or closure of border crossings 1.
- Currency and costsmedium
Euro-dollar fluctuations and cost pressures could reduce margins, as seen in the third quarter of 2026 3.
Investment thesis
What would need to be true (bull case)
- If the integration of Performance Technologies proceeds as planned, the company could achieve higher revenue and margins with a more diversified customer and product base 23.
- Strong new automotive business awards suggest the product portfolio could generate future revenue if programs launch successfully 13.
- Low leverage and the share repurchase program could support shareholder value if cash flow remains strong 3.
What would break the thesis
- If auto production declines in key markets, revenue and margins could be hit quickly, since many of the company's costs are fixed 1.
- Rising Chinese competition could force price cuts and loss of market share, putting pressure on margins 1.
- The Modine combination adds operational complexity and debt, and if synergies are delayed, results could disappoint 23.
What to watch
- Realization of synergies from the Performance Technologies combination and integration of assets2027
- Light vehicle production in the Americas, Europe and China compared with forecasts2027
- Gross margin and the effect of material costs and currencyQ1 2027
- Pace of share repurchases and leverage after acquisitionsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Gentherm Incorporated designs and manufactures thermal and pneumatic technologies, including Climate Control Seats (CCS), Climate Control Interiors (CCI), lumbar and massage comfort solutions, valve systems and climate and comfort electronics. The company has two reportable segments, Automotive and Medical, and the Automotive segment represented 97% of product revenues in 2025 1. Its products are found on light vehicles from nearly all major OEMs in North America and Europe and several in Asia, with customers mainly OEMs and Tier 1 suppliers 1. Third quarter 2026 product revenues were 405.1 million USD, up 4.7% year over year 3.
In the medical business, the company provides patient temperature management systems used in hospitals worldwide, under brands such as Blanketrol and Astotherm 1. In July 2026 Gentherm acquired Innovative Medical Equipment, LLC, provider of the ThermaZone thermal therapy device, a non-opioid solution for pain management and recovery 2. The company operates a regionally focused manufacturing model aligned with its major customers' locations 1.
Segments
Automotive
The Automotive segment includes climate and comfort solutions for seats, steering wheels and interior panels, lumbar and massage systems, valve systems and other automotive products such as battery thermal management 1. It represented 97% of product revenues in 2025 1. Automotive new business awards were estimated at about 2,200 million USD in 2025 1, and reached 555 million USD in the third quarter of 2026 3.
Market context
The company's core market is light vehicle production in North America, Europe, China, Japan and South Korea. Production in these markets in 2025 was 77.5 million units, up 3.7% from 2024, driven mainly by China 1. S&P Global's forecast points to a decline to 76.7 million units in 2026 1. The updated guidance assumes light vehicle production in the relevant markets decreases at a low single digit rate in 2026, showing the business's sensitivity to the auto cycle 3.
Demand for comfort features in vehicles is growing as consumers seek wellness functions, and the company positions itself as an independent partner that can work with any OEM or seat maker 1. This could support revenue growth through higher content per vehicle, but it remains dependent on production volumes.
Trends
- Combination with Modinemixed
The combination with Performance Technologies extends the company toward commercial vehicles, off-highway equipment and power generation, but it also adds new debt through a 250 million USD delayed-draw term loan 23. The long-term effect depends on whether the announced synergies are achieved.
- Tariffs and global tradeheadwind
US and reciprocal tariffs have created uncertainty, but the company says its regional model limits direct impact and that tariffs had no material effect in 2025 1. Rapid policy changes could still affect costs and customer production.
- Shift toward EVs and comforttailwind
The auto industry is moving toward electric vehicles and personalized comfort, which could favor the company's seat and massage solutions, while also changing the mix of production programs 1. The company notes growing adoption of comfort products 1.
Competitive position
The automotive component industry is intensely competitive, with contracts awarded on the best combination of cost, quality, on-time delivery, innovation and service 1. Chinese component suppliers working with Chinese OEMs are an increasingly active competitor in global markets 1. The company differentiates through proprietary technologies such as CCS and shape memory alloy valves 1.
In the medical market, competition comes from suppliers of hospital temperature management systems, and the company relies on clinical expertise and integration with its automotive engineering 1. An exact market share is not specified in the available sources.
- Chinese automotive component suppliers
Companies working with Chinese OEMs and expanding into Europe and North America, described by the company as putting pressure on pricing 1.
- Lear Corporation
Major customer that is also a seating and interior systems supplier, with both partnership and indirect competition in product integration 1.
- Adient plc
Automotive seating supplier, part of the integration chain for the company's products and a major customer 1.
- Modine Manufacturing
Maker of thermal solutions for commercial vehicles whose Performance Technologies division was combined with Gentherm in October 2026 2.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Gentherm (THRM) Shareholders Approve Modine Merger, Clear for October CloseYahoo Finance — News · 13 Sept 2026 · EN
The latest news item in our archive is from 13 Sept 2026; the newest SEC filing is from 22 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report22 Oct 2026
- Current report22 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report (amendment)09 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report01 Oct 2026Material agreement · Acquisition or disposition of assets · Creation of a direct financial obligation · Departure or appointment of officers · Amendments to articles or bylaws · Regulation FD disclosure · Financial statements and exhibits
- Current report11 Sept 2026Shareholder vote · Regulation FD disclosure · Other events · Financial statements and exhibits
- Quarterly report23 Jul 2026
- Current report23 Jul 2026Acquisition or disposition of assets · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report02 Jul 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report19 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report (amendment)23 Apr 2026Material agreement · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Gentherm Incorporated · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Gentherm Incorporated · 22 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Gentherm Incorporated · 22 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.