Gentherm (THRM) Q3 2026 earnings summary

Executive summary

• Q3 product revenue rose 4.7% YoY to $405.1M, while adjusted EBITDA fell to $45.0M and GAAP net income was a $2.6M loss.

• The Modine Performance Technologies combination closed October 1, expanding the portfolio and contributing to higher FY2026 guidance through its expected Q4 results.

• Automotive awards, product launches and medical expansion supported commercial momentum amid inflation, FX and other cost pressures.

Financial highlights

• Q3 product revenue was $405.1M versus $386.9M; gross margin was 23.3% versus 24.6%, and operating income was $14.4M versus $23.9M.

• Q3 net loss was $2.6M versus net income of $14.9M; adjusted diluted EPS was $0.33 versus $0.73, and GAAP diluted EPS was $(0.08) versus $0.49.

• A 123.9% effective tax rate and higher operating expenses, including merger and acquisition costs, weighed on quarterly earnings.

• 9M revenue rose to $1.215B from $1.116B; adjusted EBITDA was $143.1M versus $134.2M, and adjusted diluted EPS was $1.90 versus $1.78.

• 9M operating cash flow was $36.0M versus $87.8M; adjusted free cash flow was $59.5M versus $72.3M.

Outlook and guidance

• FY2026 guidance is product revenue of $1.825B–$1.925B, adjusted EBITDA of $210M–$230M and adjusted free cash flow of $100M–$120M.

• Guidance includes expected Q4 Modine Performance Technologies contribution of ~$275M revenue and ~$28M adjusted EBITDA; assumptions include low-single-digit light-vehicle production declines and EUR/USD at $1.15.

• Legacy 2027 revenue outlook remains $1.7B; broader 2027 guidance was planned for February.

• Long-term targets include revenue above $3.5B and adjusted EBITDA of $525M+ by 2030, with $25M of cost synergies expected.