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what it is
Gentherm makes car-seat heating and cooling systems, plus medical temperature products that keep people and vehicles comfortable.
how it gets paid
Last year Gentherm made $1.5B in revenue. Climate control seats was the main engine at $0.83B, or 55% of sales.
why it's growing
Revenue grew 2.9% last year. Revenue was reported at $1.1 billion, up 188% vs. prior year, but the bigger issue was profitability.
what just happened
Gentherm reported EPS of $0.49, missing the $0.67 estimate by 26.87%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
50/100 earnings predictability — expect surprises
14.3x trailing p/e — the market's not buying it — or you found a deal
8.5% return on capital — nothing to write home about
xvary composite: 59/100 — below average
What they do
Gentherm makes car-seat heating and cooling systems, plus medical temperature products that keep people and vehicles comfortable.
Gentherm sells into places your carmaker cannot casually swap out later. Climate control seats are built into the seat system, and redesigns cost time, testing, and supplier headaches. The company had over 14,000 employees in 2025 and calls climate control seats its largest product category, which helps explain how a $1.5 billion business keeps holding its slot.
How they make money
$1.5B
annual revenue · their business grew +2.9% last year
Climate control seats
$0.83B
+4.0%
Pneumatic comfort systems
$0.24B
+3.0%
Steering wheel and surface heating
$0.20B
+2.0%
Medical patient temperature management
$0.14B
+5.0%
Industrial and other thermal systems
$0.11B
0.0%
The products that matter
supplies thermal systems to automakers
Automotive Thermal Components
$1.5B revenue · +4.2% growth
it generated $1.5B in revenue last year and grew 4.2%. If vehicle builds slow, this line feels it fast because the company is still tied to production volumes.
the business that matters
medical and specialty thermal applications
Medical and Other
no breakout shown here
the snapshot data does not break out revenue for this piece of the business. On a company doing $1.5B in total sales, that means the investment case still comes back to automotive.
data is thin
Key numbers
$44
base target
That is about 35% above the $32.51 share price, which tells you the upside case survives one ugly quarter.
14.3x
trailing p/e
P/E → stock price divided by earnings → so what: you are not paying a luxury multiple for a company expected to earn $2.65 by 2027.
11.5%
operating margin
Operating margin → profit after running the business → so what: this is a decent but not forgiving margin for an auto supplier.
$189M
long debt
Long-term debt is 16% of capital, which means the balance sheet looks more annoying than dangerous.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $189M (16% of capital)
- net profit margin 5.4% — keeps 5 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in THRM 3 years ago → it's now worth $4,990.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Gentherm reported EPS of $0.49, missing the $0.67 estimate by 26.87%.
Revenue was reported at $1.1 billion, up 188% vs. prior year, but the bigger issue was profitability. Fourth-quarter operating margin fell more than 100 basis points to 10.6%, and full-year EPS slipped to $2.28 from $2.33.
$1.1B
revenue
$0.49
eps
24.3%
gross margin
the number that mattered
The 26.87% EPS miss mattered most because it turned a cheap-looking stock into an execution debate.
-
gentherm completed a difficult year in 2025.
-
disappointing financial results in the december period swung full-year profits to a decline from the previous year.
-
more specifically, the fourth-quarter's operating margin drop of more than 100 basis points, to 10.6%, marked the fourth straight vs. prior year decline at around that pace.
-
growth in climate control seats, easily the largest product category, was the key driver, but its contributions to profits were offset by declines across nearly all other key items.
-
thus, although fourth-quarter revenues rose about 8%, to $383 million, ongoing margin dilution caused adjusted ebitda to fall for the three months and year.
source: company earnings report, 2026
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What could go wrong
the top threat is global vehicle production slowing while Gentherm still runs a 5.1% net margin business.
high
auto production risk
the core product card on this page grew 4.2%, but it is still tied directly to vehicle builds. If automakers cut production, Gentherm does not have a big recurring revenue buffer to hide in.
this risk reaches across the company’s $1.5B revenue base
med
margin compression
11.5% operating margin and 5.1% net margin leave limited room for cost inflation, launch issues, or pricing pressure. This is not a business with excess margin to donate.
small changes in margin can have an outsized effect on EPS, which was already down from $2.33 to $2.28
med
execution risk on the growth case
analysts are looking for $2B in revenue and $2.45 in EPS for fy2026. Those numbers are the next step in the story. If Gentherm misses them, the stock stops looking like a cheap recovery and starts looking fairly priced.
the valuation case depends on estimates improving from a 59 / 100 composite starting point
its entire $1.5B revenue base ultimately rides on customer production schedules, and a 5.1% net margin does not leave much shock absorber.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
operating margin
11.5% is the line holding the story together. If it slips toward 10%, the earnings math gets ugly fast.
trend
auto production data
Gentherm’s core business follows vehicle builds. If automakers slow schedules, your revenue growth probably slows with them.
risk
fy2026 estimate delivery
the street wants $2.45 in EPS and $2B in revenue. Those are not just numbers. They are the case for why 14.3x earnings might be too low.
calendar
next earnings report
with thin disclosure and no major recent catalyst slate, earnings day is when you find out whether the recovery case is real or just tidy spreadsheet optimism.
Analyst rankings
short-term outlook
average
momentum score 3. In human-speak, analysts do not see a strong near-term signal either way.
risk profile
average
stability score 3 means middle-of-the-road risk. Not especially safe, not a total rollercoaster.
chart momentum
average
technical score 3 says the chart is not sending a dramatic message. The story will have to come from the fundamentals.
earnings predictability
50 / 100
predictability at 50 / 100 means you should expect more variance in results than you would from a steadier industrial compounder.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 81 buyers vs. 82 sellers in 4q2025. total institutional holdings: 30.6M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$26
$61
$33
current price
$44
target midpoint · +35% from current · 3-5yr high: $50 (+55% · 11% ann'l return)
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