Gentherm (THRM) Company Report

Gentherm and Modine announced a definitive agreement for a spinoff and merger of Modine's Performance Technologies business with Gentherm, valued at approximately $1 billion.
The transaction is intended to be tax-free for Modine and its shareholders, with Gentherm shareholders owning approximately 60% and Modine shareholders 40% of the combined company.
The combination is expected to nearly double Gentherm's revenue to approximately $2.6 billion and deliver pro forma synergy-adjusted EBITDA of 13%.
The companies have identified approximately $25 million in annual cost synergies by the end of 2028.
The transaction is targeted to close in the fourth quarter of calendar year 2026.

Jan 29, 2026, 1:00 PM

Transcript

Gentherm Announces Combination with Modine's Performance Technologies Business

THRM

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Gentherm announced a definitive agreement to combine with Modine's Performance Technologies business through a Reverse Morris Trust transaction, valued at approximately $1 billion, which is intended to be tax-free for Modine and Modine shareholders.
The combination is expected to nearly double Gentherm's revenue to approximately $2.6 billion and result in a pro forma synergy-adjusted EBITDA of 13%.
Gentherm shareholders will own approximately 60% of the combined company, with Modine shareholders holding 40%, and Modine will receive a $210 million cash distribution.
Approximately $25 million in identified annual cost synergies are expected by the end of 2028, and the deal will accelerate Gentherm's access to key growth markets outside of light vehicle.
The transaction is targeted to close in the fourth quarter of calendar year 2026.

Jan 29, 2026, 1:00 PM

Transcript

Gentherm to Combine with Modine Performance Technologies

THRM

M&A

Gentherm announced its plan to combine with Modine Performance Technologies in a Reverse Morris Trust transaction valued at ~$1.0 billion.
The combined company is projected to have $2.6 billion in pro forma revenue and a 13% Adjusted EBITDA Margin (post-synergy), based on LTM September 2025 metrics.
The transaction is expected to generate ~$25 million in identified annual cost synergies and will result in Gentherm shareholders owning 60% of the combined entity, with Modine shareholders owning 40%.
The combination aims to build scale in thermal management solutions, expand technologies, and create commercial opportunities, with an expected closing in the fourth quarter of calendar year 2026.

Jan 29, 2026, 1:00 PM

Presentation

Gentherm Announces Combination with Modine Performance Technologies

THRM

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Gentherm has announced a definitive agreement to combine with Modine's Performance Technologies business through a tax-free spinoff and merger, valued at approximately $1 billion.
The combination is expected to nearly double Gentherm's revenue to approximately $2.6 billion and achieve a pro forma synergy Adjusted EBITDA margin of approximately 13%.
The transaction includes identified annual cost synergies of approximately $25 million by the end of 2028.
Gentherm shareholders will own approximately 60% of the combined company, with Modine shareholders holding 40%, and Modine will receive a $210 million cash distribution.
The deal is expected to significantly broaden Gentherm's end market exposure, reducing reliance on light vehicle markets (to approximately 63% of combined revenue) and accelerating growth in power generation (expected 6% of revenue with 20%+ long-term growth) and commercial vehicle/heavy-duty applications (expected 30% of revenue). The transaction is targeted to close in Q4 2026.

Jan 29, 2026, 1:00 PM

Transcript

Gentherm Announces Combination with Modine's Performance Technologies Business

THRM

M&A

Guidance Update

New Projects/Investments

Gentherm and Modine's Performance Technologies Business will combine in a Reverse Morris Trust transaction valued at approximately $1.0 billion.
The combined company is expected to have pro forma revenue of $2.6 billion and an adjusted EBITDA margin of 13% on a synergy-adjusted basis, with anticipated annual cost synergies of approximately $25 million.
Gentherm shareholders are projected to own 60% and Modine shareholders 40% of the combined entity, with the transaction expected to close in the fourth quarter of calendar year 2026 and be accretive to adjusted EPS by year two.
Gentherm provided preliminary full year 2025 results, with Product Revenues between $1.49 billion and $1.50 billion and Adjusted EBITDA between $173 million and $177 million.

Jan 29, 2026, 12:17 PM

8-K

Gentherm Discusses Strategic Growth and Market Outlook

THRM

M&A

New Projects/Investments

Guidance Update

Gentherm aims to become a $3 billion company with less than 70% exposure to the light vehicle market, targeting mid-teens EBITDA and anticipating M&A as a component of this growth.
The company is expanding into adjacent markets like commercial vehicles and motion furniture, having built a funnel of over $300 million in lifetime revenue since April and securing a production award with a leading furniture brand for Q1 2026.
Gentherm's medical business, which currently generates $50 million in revenue with 50% gross margins, is targeted for significant growth to north of $100 million by leveraging automotive technology and new product development, with FDA announcements expected near year-end.
Operational improvements, including footprint consolidation and standardizing operating systems, have led to a $20 million-$25 million reduction in CapEx this year and are projected to result in 0.5% plus of margin expansion by 2027 from these transitions.
Despite an anticipated 2% decline in overall industry production volumes for 2026, Gentherm expects to outgrow the market due to strong award activity and strategic initiatives in new markets.

Nov 11, 2025, 3:05 PM

Transcript

Gentherm Presents at 2025 Baird Global Industrial Conference

THRM

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Gentherm presented at the 2025 Baird Global Industrial Conference on November 11, 2025, with President and CEO Bill Presley and CFO Jon Douyard.
For 2024, the company reported $1.5 billion in revenue, an Adjusted EBITDA of 12.6%, and $2.4 billion in Automotive New Business Awards.
Gentherm is on track for $2B+ in Automotive New Business Awards this year, including strategic wins with Ford F-Series and Mercedes-Benz.
The company has identified $300M+ lifetime revenue in target industries and has reduced its net leverage to 0.2x.

Nov 11, 2025, 3:05 PM

Presentation

Gentherm Reports Record Q3 2025 Revenue and Updates Full-Year Guidance

THRM

Earnings

Guidance Update

New Projects/Investments

Gentherm reported record quarterly revenue of $387 million for Q3 2025, an increase of 4.1% year-over-year, and generated $88 million in operating cash flow year-to-date.
The company secured $745 million in automotive new business awards in Q3 2025, including a strategic conquest win with Mercedes-Benz for lumbar and massage comfort solutions, bringing year-to-date awards to $1.8 billion.
Gentherm updated its full-year 2025 guidance, increasing the midpoint of its revenue expectation to a range of $1.47 billion-$1.49 billion and narrowing the adjusted EBITDA margin range to 11.9% to 12.3%.
Progress was made in adjacent markets, with a commercial funnel of over $300 million of lifetime revenue and a new award from a global furniture brand, with production starting in Q1 2026.

Oct 23, 2025, 12:00 PM

Transcript

Gentherm Reports Record Q3 2025 Revenue and Updates Full-Year Guidance

THRM

Earnings

Guidance Update

New Projects/Investments

Gentherm achieved record quarterly revenue of $387 million in Q3 2025, driven by high demand and improved light vehicle industry production.
The company secured $745 million in automotive new business awards during Q3 2025, including a significant conquest win with Mercedes-Benz, bringing the year-to-date total to $1.8 billion.
Adjusted EBITDA for Q3 2025 was $49 million, representing 12.7% of sales, and year-to-date operating cash flow reached $88 million.
Gentherm increased the midpoint of its full-year 2025 revenue guidance to a range of $1.47 billion to $1.49 billion and narrowed the adjusted EBITDA margin range to 11.9% to 12.3%.
Progress in adjacent markets generated a commercial funnel of over $300 million in lifetime revenue, including a contract with a large global furniture brand to supply comfort solutions starting in Q1 2026.