- Gentherm (THRM, Financial) reported first-quarter 2025 revenue of $354 million, a 0.9% increase excluding foreign currency effects.
- The company secured $400 million in new automotive business awards, including first-time contracts with a Japanese OEM and Volvo.
- Full-year 2025 revenue guidance remains between $1.4 billion and $1.5 billion, with an adjusted EBITDA margin range of 11.5% to 13%.
Gentherm (NASDAQ: THRM) reported its financial results for Q1 2025, ending March 31. The company recorded revenue of $354 million, marking a 0.9% increase excluding currency fluctuations. This growth was driven by gains in its automotive climate and comfort solutions segment, which outperformed the relevant market by over 300 basis points with a 3.8% year-over-year increase.
The company announced new business awards in the automotive sector totaling $400 million, featuring significant contracts with a Japanese OEM for lumbar and massage solutions and a conquest award from Volvo.
Despite the revenue growth, Gentherm faced profitability challenges, reporting a slight net loss of $(0.1) million, a significant decline from $14.9 million in profit reported in the same quarter last year. Gross margin contracted by 50 basis points to 24.4%, and the adjusted EBITDA decreased to $39.3 million, or 11.1% of revenue, compared to 12.2% last year.
The company maintains robust liquidity of approximately $400 million and a low net leverage of around 0.5x. Looking ahead, Gentherm has kept its full-year revenue guidance between $1.4 billion and $1.5 billion but adjusted the EBITDA margin range to reflect continued pressure on profitability amidst global industry challenges.
