Gentherm (THRM) investor relations material

Strategic direction and market expansion

• Announced a transformative combination with Modine Performance Technologies, expanding into commercial vehicle, off-highway, and power generation markets, reducing light vehicle exposure to under 70% and targeting $3.5 billion revenue and $500 million EBITDA by 2030.

• Projected $3.5B+ in combined revenue and $525M+ in EBITDA by 2030, with $25M in near-term cost synergies and $100M+ in commercial opportunities.

• The acquisition is structured as a Reverse Morris Trust, with secured $800 million financing and a targeted early Q4 close following a September 10th shareholder vote.

• Board authorized a new $400M stock repurchase program, tripling the previous authorization, to be in-market upon transaction closing.

• Emphasized a focus on organic investments, shareholder returns, and strategic M&A, targeting non-light vehicle end markets.

Financial and operational outlook

• Revenue growth expected to accelerate into 2027, driven by automotive launches, adjacent market expansion, and new medical products.

• Margin expansion supported by footprint transitions, improved program margins, and a favorable business mix.

• Forecasted $1B+ in adjusted unlevered free cash flow generation through 2030, with a post-closing net leverage ratio of ~1.0x.

• 2025 financials highlighted $1.5B in revenue, 11.7% adjusted EBITDA margin, and a strong global presence across 13 countries.

• Non-GAAP financial measures used for performance tracking, with reconciliations available in the July 2026 earnings release.

Operational improvements and margin expansion

• Completed a two-year global footprint consolidation to maximize revenue and operating income per square foot.

• Implemented a KPI-driven operating system to improve asset utilization, direct labor efficiency, and inventory management, supporting scalable growth.

• Targeting 300 basis points of margin expansion over five years, driven by footprint consolidation, improved pricing, volume leverage, and favorable mix from adjacent markets.

• Both Gentherm and Modine businesses start at 12% EBITDA margins, with a clear path to 15%+ by decade’s end through operational and mix improvements.

• Focus on scalable technology platforms and continuous improvement to drive profitable growth and margin expansion.