Gentherm Incorporated (NASDAQ:THRM) reported stronger-than-expected third-quarter results on Thursday, boosted by solid growth in its automotive climate and comfort solutions business. Shares rose 1.98% in premarket trading after the announcement.
The company posted adjusted earnings per share of $0.73, beating the analyst consensus of $0.65. Revenue hit a record $387 million, ahead of estimates of $374.75 million and up 4.1% from $371.5 million in the same quarter last year.
Automotive Climate and Comfort Solutions revenue increased 8.6% year over year, outperforming underlying light vehicle production in key markets by 160 basis points. Gentherm also secured $745 million in new automotive business awards during the quarter, keeping it on pace to surpass $2 billion for the full year.
“Our third quarter financial and operational performance demonstrated our ability to deliver results, while executing our long-term strategic initiatives,” said Bill Presley, President and CEO. “Our operational excellence initiatives are gaining traction, which contributed to strong cash generation in the quarter.”
Gross margin narrowed to 24.6% from 25.5% a year ago, reflecting higher material costs and footprint realignment expenses. Operating cash flow year-to-date rose to $87.8 million, compared to $73.1 million in the same period of the prior year.
The company raised its full-year 2025 revenue outlook to a range of $1.47 billion to $1.49 billion, up from its previous forecast of $1.43 billion to $1.50 billion and above the $1.453 billion consensus estimate. Adjusted EBITDA margin guidance was tightened to 11.9%–12.3% from 11.7%–12.5%.
In a strategic expansion beyond its traditional automotive base, Gentherm signed a deal with a leading global furniture brand to supply comfort solutions, with production expected to begin in early 2026.