The combination of record revenue, raised guidance, and a $400M buyback authorization (36% of market cap) is a strong bullish signal. However, the sharp decline in GAAP operating income and operating cash flow due to restructuring/M&A costs warrants monitoring for normalization in H2. The Modine deal closing in early Q4 is the next major catalyst — watch for S-4 effectiveness and shareholder vote.
Price Chart
Executive Summary
Gentherm reported record Q2 2026 revenue of $416.2M, up 11.0% YoY (9.5% ex-FX), and raised full-year 2026 guidance for revenue, Adjusted EBITDA, and free cash flow. The Board also authorized a new $400M stock repurchase program, replacing the prior $150M program. The company completed the acquisition of Innovative Medical Equipment, LLC and confirmed the Modine Performance Technologies combination remains on track for early Q4 2026. However, GAAP operating income declined sharply to $10.7M from $24.0M due to elevated restructuring and M&A expenses, and operating cash flow fell to $2.3M from $31.7M, tempering the headline revenue beat.
Key Facts
- Record quarterly product revenue of $416.2M, up 11.0% YoY (9.5% ex-FX)
- Full-year 2026 guidance raised: revenue to $1.55B-$1.65B (from $1.5B-$1.6B), Adjusted EBITDA to $185M-$200M (from $175M-$195M)
- Board authorized new $400M stock repurchase program (3-year term), replacing prior $150M program with $110.1M remaining
- Adjusted diluted EPS of $0.75 vs $0.54 YoY; GAAP diluted EPS $0.14 vs $0.02 YoY
- GAAP operating income fell to $10.7M from $24.0M; operating cash flow dropped to $2.3M from $31.7M
- Acquired Innovative Medical Equipment, LLC (ThermaZone device); Modine Performance Technologies deal on track for early Q4 2026
- Net leverage of ~0.3x; liquidity of $502.3M; cash and equivalents $213.2M
Financial Impact
Record quarterly revenue of $416.2M (+11% YoY); Adjusted EBITDA $48.8M (11.7% margin); GAAP net income $4.4M vs $0.5M; raised FY guidance midpoint by $75M revenue and $7.5M EBITDA
Risk Factors
- GAAP operating income declined 55% YoY due to $12.9M M&A and $6.0M restructuring costs
- Operating cash flow fell to $2.3M from $31.7M; free cash flow was negative $11.9M YTD
- Modine Performance Technologies deal integration risk and potential shareholder approval delays
- Automotive production in relevant markets expected to decline at low single-digit rate in 2026
- Gross margin contracted 70bps YoY to 23.2% due to higher material costs and warranty accruals
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 9 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 425 Filing (THRM) — Batch item 1 | 0001193125-26-313208 |
| Document: 0001193125-26-313208-index-headers.html | 0001193125-26-313204 |
| Document: 0001193125-26-313208-index.html | 0001193125-26-313208 |
| Document: 0001193125-26-313208.txt | 0001193125-26-313208 |
| 8-K Filing (THRM) — Batch item 5 | 0001193125-26-313204 |
| Document: thrm-20260723.htm | 0001193125-26-313208 |
| Document: 0001193125-26-313204-index-headers.html | 0001193125-26-313208 |
| Document: 0001193125-26-313204-index.html | 0001193125-26-313208 |
| Document: 0001193125-26-313204.txt | 0001193125-26-313208 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 21d ago | 8-K | $38.85 $36.35 | ▼ −6.43% | ▼ −6.21% | $31.30 (−19.43%) |
Sep 10, 2026 22d ago | Press Release | $38.33 $37.66 | ▼ −1.75% | ▼ −1.25% | $31.30 (−18.34%) |
Aug 13, 2026 7w ago | EFFECT | $43.07 $40.67 | ▼ −5.57% | ▼ −3.61% | $31.30 (−27.33%) |
Jul 23, 2026 10w ago | 425 / 8-K | $45.61 $42.32 | ▼ −7.21% | ▼ −7.69% | $31.30 (−31.37%) |
Jul 23, 2026 10w ago | Press Release | $45.61 $42.32 | ▼ −7.21% | ▼ −7.69% | $31.30 (−31.37%) |
Jul 22, 2026 10w ago | Press Release | $45.61 $42.32 | ▼ −7.21% | ▼ −7.69% | $31.30 (−31.37%) |
Jul 20, 2026 10w ago | Press Release | $36.64 $42.07 | ▲ +14.82% | ▲ +16.05% | $31.30 (−14.57%) |
Jul 7, 2026 12w ago | Press Release | $34.48 $35.89 | ▲ +4.09% | ▲ +3.23% | $31.30 (−9.22%) |
Jul 2, 2026 13w ago | 425 | $33.88 $35.68 | ▲ +5.31% | ▲ +4.38% | $31.30 (−7.62%) |
Jul 2, 2026 13w ago | 8-K | $33.88 $35.68 | ▲ +5.31% | ▲ +4.38% | $31.30 (−7.62%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access