Gentherm Q3 adjusted EPS and EBITDA miss estimates on margin pressure
THRM•Gentherm reported Q3 adjusted EPS of $0.33 and adjusted EBITDA of $45.004 million, both below analyst estimates. It raised 2026 product revenue guidance to $1.825 billion-$1.925 billion and expects adjusted EBITDA of $210 million-$230 million.
1. Quarterly results
Gentherm's Q3 product revenue was $405.10 million, up 4.4% year over year excluding foreign-exchange effects. Adjusted EPS was $0.33 versus a $0.64 analyst estimate, while adjusted EBITDA was $45.004 million versus an estimate of $46.57 million. The company reported a net loss of $2.59 million.
2. Guidance and drivers
Gentherm raised its 2026 product revenue guidance to $1.825 billion-$1.925 billion and expects adjusted EBITDA of $210 million-$230 million and adjusted free cash flow of $100 million-$120 million. Automotive Climate and Comfort Solutions revenue grew 8.8% year over year, while the company attributed lower gross margin to foreign exchange, higher material costs and inflation, partly offset by operating leverage.
3. Other company actions
Gentherm completed its acquisition of Modine Performance Technologies and repurchased $60 million of stock in October. It also launched the ThermAffyx Patient Safety System and Puls.A.
