Gentherm Posts $394M Q1 Revenue, 24.7% Gross Margin and Modine Deal
Gentherm delivered record quarterly revenue of $394 million, up 11.3% year-over-year (7.2% ex-FX), with gross margin rising to 24.7%. The company announced a transformational combination with Modine Performance Technologies, on track to close in 2026.
1. First Quarter Financial Results
Gentherm reported record revenue of $394 million for Q1, a year-over-year increase of 11.3% (7.2% ex-FX), with gross margin improving to 24.7% from 24.4%. Net income reached $4.2 million versus a $0.1 million loss a year earlier, while adjusted EBITDA rose to $49.3 million (12.5% of revenue).
2. Segment Performance Analysis
Automotive Climate and Comfort Solutions revenue grew 13.6% year-over-year (9.8% ex-FX), outpacing industry light-vehicle production by 14 percentage points, supported by $395 million in new awards. Medical product revenues declined 6.3% ex-FX, as Gentherm focused on FDA submission for its ThermAffyx™ Patient Safety System.
3. Strategic Combination with Modine
The company announced a transformational combination with Modine Performance Technologies, creating an expanded thermal and precision flow management leader. The transaction remains on track to close in 2026, aiming to broaden product portfolios and end-market exposure while generating value synergies.
4. Guidance and Outlook
Full-year 2026 guidance remains unchanged, with product revenue expected at $1.5–$1.6 billion, adjusted EBITDA of $175–$195 million, and free cash flow of $80–$100 million. Assumptions include low single-digit light-vehicle production decline and a EUR/USD rate of $1.16.