Gentherm (THRM) Baird 2024 Global Industrial Conference summary

Company overview and strategy

• Global leader in thermal and pneumatic comfort products, with a growing medical device segment.

• Focused on innovation, maintaining a lead of two-plus generations over competitors.

• Business model driven by feature adoption and take rates, not just vehicle production cycles.

• Consistent execution of a seven-year growth and margin expansion strategy.

• Positioned as a pure play leader in a large, rapidly growing global automotive market for thermal and pneumatic solutions.

2024 priorities and performance

• Secured $1.8 billion in new business awards YTD, on track to exceed $2 billion for the year at an 80% win rate.

• Major growth in massage and lumbar products, boosted by a recent acquisition.

• EBITDA margins expanded by 100 basis points YTD, with further margin expansion expected.

• Launched innovative products like ClimateSense, Puls.A, and ComfortScale™, winning industry awards and new contracts.

• Advanced Fit-for-Growth 2.0 initiatives, achieving ongoing footprint optimization.

Leadership transition

• CEO to step down January 1st, with a year-long planned transition to Bill Presley, ensuring stability.

• Outgoing CEO to support the transition for six months.