Gentherm (THRM) Q4 2024 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $183M and 61% net income growth in 2024, with record profitability in the Medical segment.

• Secured $2.4B in new automotive business awards, driven by innovation and strong OEM relationships.

• Maintained net leverage at ~0.5x while investing in operations and share repurchases.

• Continued strong launch activity with 18 vehicles across 12 OEMs.

• Leadership transition and focus on leveraging core technology platforms for profitable growth.

Financial highlights

• 2024 product revenues were $1,456.1M, down 0.9% year-over-year; Q4 revenues were $352.9M, down 3.8%.

• Gross margin for 2024 increased to 25.2% from 23.9% in 2023; Q4 gross margin at 24.4%.

• Adjusted EBITDA for 2024 reached $182.9M (12.6% margin), up 1.3% year-over-year.

• Adjusted diluted EPS for 2024 was $2.33, down from $2.59 in 2023; Q4 adjusted EPS was $0.29, down from $0.90.

• Medical segment revenues increased 8.1% year-over-year to $49.8M, with record profitability.

Outlook and guidance

• 2025 product revenues expected between $1.4B and $1.5B, with ~2% growth ex-FX in a declining market.

• Adjusted EBITDA margin for 2025 projected at 12–13%, with margin expansion expected after footprint optimization.

• Capital expenditures for 2025 forecasted at $70–$80M, above typical levels due to ongoing investments.

• Full year effective tax rate expected between 26% and 29%.

• Second-half 2025 revenue and margins expected to be stronger than first half.