Gentherm (THRM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $353.9 million, down 0.6% year-over-year but up 0.9% ex-FX, with strong growth in lumbar/massage comfort solutions and medical segment momentum.

• Secured $400 million in new automotive business awards, including major wins with Volvo and Japanese OEMs, and launched 17 new programs across 11 OEMs.

• Net loss for Q1 2025 was $0.1 million, compared to net income of $14.8 million in Q1 2024, mainly due to FX losses, restructuring, and a loss on property sale.

• Strategic initiatives include scaling four core technology platforms, expanding into medical markets, and commencing shipments from a new Morocco facility.

• Maintained strong balance sheet with net leverage at ~0.5x and liquidity of ~$400 million.

Financial highlights

• Adjusted EBITDA was $39.3 million (11.1% margin), down from $43.5 million (12.2%) in Q1 2024, mainly due to higher freight, product mix, and realignment costs.

• Gross margin declined to 24.4% from 24.9% year-over-year.

• Adjusted diluted EPS was $0.51, down from $0.62 in Q1 2024; GAAP EPS was $(0.00) vs. $0.47 prior year.

• Cash and equivalents increased to $163.1 million from $134.1 million at year-end 2024.

• Net cash used in operating activities was $13.3 million; capital expenditures were $14.9 million.

Outlook and guidance

• 2025 revenue guidance unchanged at $1.4–$1.5 billion; Adjusted EBITDA margin guidance expanded to 11.5%–13% (from 12%–13%).

• Guidance reflects lower light vehicle production, especially in North America, and tariff pass-through revenue dilution.

• Full-year effective tax rate expected between 26% and 29%; capital expenditures forecasted at $70–$80 million.

• S&P Global Mobility forecasts a 2–2.4% decline in relevant light vehicle production for 2025, with North America down 7–10%.

• Guidance assumes current tariffs, limited customer demand changes, and mechanisms to recover incremental costs.