10-Q · April 23, 2026
Gentherm reported product revenues of $393.706M in Q1 2026, up $39.852M (11.3%) year-over-year, with gross margin expanding to 24.7% from 24.4%. Operating income declined to $11.285M (operating margin ~2.9%) from…
Earnings analysis · 10-Q
THRM earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Gentherm delivered $405.1 million of Q3 revenue, up year over year and slightly ahead of consensus, but GAAP diluted EPS of $(0.08) was well below both the $0.64 estimate and $0.49 reported in Q3 2025. The filing…
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Gentherm delivered $405.1 million of Q3 revenue, up year over year and slightly ahead of consensus, but GAAP diluted EPS of $(0.08) was well below both the $0.64 estimate and $0.49 reported in Q3 2025. The filing highlights meaningful interest-rate and foreign-exchange exposures, including $307.0 million of variable-rate debt and an $11.248 million potential FX derivative loss under a 10% sensitivity scenario. Full-year revenue, adjusted EBITDA and adjusted free cash flow guidance was raised to reflect the October 1 Modine Performance Technologies acquisition, but the quarter’s earnings miss and ongoing integration work weigh on the outlook.
Reported figures
- Earnings per share
- $-0.08
What stood out
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Revenue beat estimates, up year over year
Third-quarter revenue was $405.1 million, up from $387 million in Q3 2025 but down from $416 million in Q2 2026. Revenue exceeded the $403.0 million consensus estimate by approximately $2.1 million.
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Full-year revenue outlook raised
Management raised full-year 2026 product revenue guidance to $1.825 billion-$1.925 billion from $1.55 billion-$1.65 billion, primarily reflecting the Modine Performance Technologies acquisition completed October 1, 2026.
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GAAP EPS materially missed expectations
The company reported GAAP diluted EPS of $(0.08), versus $0.49 in Q3 2025 and the $0.64 consensus estimate, indicating a $0.72 per-share miss versus expectations.
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Debt exposure partly hedged
Long-term debt totaled $307.0 million at September 30, 2026, with a weighted-average variable interest rate of 5.13%. The company had $100.0 million of floating-to-fixed interest-rate swaps outstanding.
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Controls effective and buyback capacity intact
Management stated that disclosure controls were effective as of September 30, 2026. The company had $400.0 million of remaining share-repurchase authorization and made no share repurchases during the quarter.
What to watch
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Floating-rate debt creates earnings sensitivity
A hypothetical 100-basis-point change in interest rates would affect annual interest expense by $3.1 million based on debt outstanding at September 30, 2026. Long-term debt was $307.0 million at a 5.13% variable rate.
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Foreign-exchange exposure increased
The potential loss in fair value from a hypothetical 10% foreign-exchange move on the MXN/USD exchange agreement was $11.248 million at September 30, 2026, versus $3.328 million at December 31, 2025, indicating materially higher currency sensitivity.
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Acquisition integration and controls risk
The IME acquisition became effective July 1, 2026, and management is still integrating policies, processes and operations. Gentherm will exclude IME from its internal-control assessment for the year ended December 31, 2026, increasing integration and control-monitoring risk.
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Ongoing ordinary-course litigation exposure
The filing states that there was no material pending litigation and no material legal proceeding resolved during the three months ended September 30, 2026; however, ordinary-course litigation remains possible.
Management's outlook
Full-year 2026 guidance was raised to incorporate Modine Performance Technologies, acquired October 1, 2026. Product revenue guidance increased to $1.825 billion-$1.925 billion from $1.55 billion-$1.65 billion; adjusted EBITDA guidance increased to $210 million-$230 million from $185 million-$200 million; adjusted free cash flow guidance increased to $100 million-$120 million from $85 million-$100 million.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.