Gentherm (THRM) Company Report

Gentherm reported record revenue of $1.5 billion for fiscal year 2025, an increase of 2.9% (or 1.8% excluding foreign currency translation), and Adjusted EBITDA of $175 million (or 11.7% of sales).
For 2026, the company expects revenue between $1.5 billion and $1.6 billion and Adjusted EBITDA between $175 million and $195 million, with a preliminary 2027 revenue outlook of $1.7 billion.
The planned combination with Modine Performance Technologies is expected to close by the end of 2026, creating a $2.6 billion market leader with identified near-term run rate cost synergies of approximately $25 million.
Strategic growth initiatives include expansion into adjacent markets, with the home and office market projected to contribute $50 million to $100 million in revenue by 2028, and the new Thermafix system in medical expected to generate revenue later in 2026.

Feb 19, 2026, 1:00 PM

Transcript

Gentherm Reports Q4 2025 Results, Provides 2026/2027 Guidance, and Details Modine Performance Technologies Combination

THRM

Earnings

Guidance Update

M&A

Gentherm reported $1.5 billion in revenue for 2025, a 2.9% increase year-over-year, and $175 million in Adjusted EBITDA, representing an 11.7% margin.
For 2026, the company expects revenue between $1.5 billion and $1.6 billion and Adjusted EBITDA of $175 million to $195 million, with a preliminary 2027 revenue outlook of $1.7 billion.
The planned combination with Modine Performance Technologies, anticipated to close by the end of 2026, is expected to create a $2.6 billion market leader and generate $25 million in near-term run rate cost synergies.
Strategic initiatives include significant progress in adjacent markets, with a commercial funnel exceeding $300 million in lifetime revenue outside light vehicles, and the launch of the Thermafix system in the medical segment, projected to accelerate annual revenue growth into the high teens.

Feb 19, 2026, 1:00 PM

Transcript

Gentherm Announces Combination with Modine Performance Technologies and Provides 2026 Guidance

THRM

M&A

Guidance Update

Revenue Acceleration/Inflection

Gentherm announced a Reverse Morris Trust (RMT) transaction to combine with Modine Performance Technologies, creating a $2.6 billion thermal and flow management leader with $322 million in post-synergy Adjusted EBITDA based on LTM (Sep.) 2025 metrics. Gentherm shareholders are expected to own 60% of the combined entity, with the transaction anticipated to close by end of 2026.
The merger is projected to generate ~$25 million in identified annual cost synergies and a $100M+ pipeline of incremental commercial opportunities. Gentherm also highlighted organic growth initiatives, including new product launches in Home & Office and Medical, with initial revenue expected in 2026.
For the full year 2025, Gentherm reported $1.5 billion in product revenues and an Adjusted EBITDA Margin of 11.7%. The company issued 2026 guidance for product revenues of $1.5 billion to $1.6 billion and Adjusted EBITDA of $175 million to $195 million (~12% margin), with a preliminary 2027 revenue outlook of ~$1.7 billion.

Feb 19, 2026, 1:00 PM

Presentation

Gentherm Reports Q4 2025 Results, Provides 2026 Guidance and 2027 Outlook, and Updates on Modine Combination

THRM

Earnings

Guidance Update

M&A

Gentherm reported record revenue of $1.5 billion for the full year 2025, a 2.9% increase compared to the prior year, and $175 million in Adjusted EBITDA.
For 2026, the company expects revenue between $1.5 billion and $1.6 billion and Adjusted EBITDA in the range of $175 million to $195 million, implying a midpoint Adjusted EBITDA margin of approximately 12%.
A preliminary 2027 revenue outlook projects $1.7 billion, an approximate 10% increase from the 2026 midpoint, supported by strong launch activities and adjacent market pursuits.
The planned combination with Modine's Performance Technologies is expected to close by the end of 2026, creating a combined company with approximately $2.6 billion in revenue and identified near-term cost synergies of approximately $25 million.
The company is expanding into adjacent markets, with the home and office segment expected to contribute $50 million to $100 million in revenue by 2028, and a new Thermafix system in medical anticipated to start generating revenue later in 2026.

Feb 19, 2026, 1:00 PM

Transcript

Gentherm Reports Q4 and Full Year 2025 Results, Provides 2026 Guidance

THRM

Earnings

Guidance Update

M&A

Gentherm achieved record annual revenue of $1.5 billion for the full year ended December 31, 2025. Product revenues for Q4 2025 increased 8.5% to $382.8 million compared to the prior year.
For Q4 2025, GAAP diluted earnings per share was $0.10 and Adjusted diluted earnings per share was $0.49. Full year 2025 GAAP diluted earnings per share was $0.59 and Adjusted diluted earnings per share was $2.27.
The company secured Automotive New Business Awards totaling $2.2 billion in 2025 and announced its expected combination with Modine Performance Technologies.
Gentherm established 2026 guidance for product revenues between $1.5 billion and $1.6 billion and Adjusted EBITDA between $175 million and $195 million, and provided a preliminary revenue outlook of approximately $1.7 billion for 2027.

Feb 19, 2026, 11:10 AM

8-K

Gentherm Reports 2025 Fourth Quarter and Full Year Results and Provides 2026 Guidance

THRM

Earnings

Guidance Update

M&A

Gentherm achieved record annual revenue of $1.5 billion for the full year ended December 31, 2025. Full year 2025 product revenues increased by 2.9% to $1,498.6 million, while Adjusted diluted earnings per share was $2.27.
For the fourth quarter ended December 31, 2025, product revenues increased 8.5% to $382.8 million, and Adjusted diluted earnings per share was $0.49.
The company provided 2026 guidance including Product Revenues of $1.5 billion – $1.6 billion, Adjusted EBITDA of $175 million – $195 million, and Adjusted Free Cash Flow of $80 million – $100 million. A preliminary revenue outlook of ~$1.7 billion was also given for 2027.
Gentherm reduced its net leverage to approximately 0.2x by year-end 2025 and secured $2.2 billion in Automotive New Business Awards during the year.
The announced combination with Modine Performance Technologies is expected to close by the end of 2026, aiming to position Gentherm with a stronger product portfolio and broader end-market diversification.

Feb 19, 2026, 11:00 AM

Press Release

Gentherm announces combination with Modine's Performance Technologies business

THRM

M&A

New Projects/Investments

Revenue Acceleration/Inflection

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.