Monitor the integration progress of the Modine deal and whether Gentherm can maintain its margin expansion and outperformance against light vehicle production in the coming quarters, especially given the $20M in incremental costs.
Price Chart
Executive Summary
Gentherm filed two Rule 425 communications on the same day, confirming its planned business combination with Modine's Performance Technologies division and reporting strong Q1 2026 financial results. The company highlighted record revenue, margin expansion, and progress on organic growth initiatives, while maintaining its full-year guidance despite rising cost pressures. The filings are part of an active M&A process to transform Gentherm into a diversified thermal management leader.
Key Financial Metrics
Key Facts
- Gentherm announced a strategic combination with Modine's Performance Technologies (SpinCo) to expand its product portfolio and enter new markets.
- Q1 2026 revenue was $394M, a record high, up 11.3% YoY, driven by strong automotive growth, especially in China.
- Adjusted EBITDA margin expanded 140 bps to 12.5%, reflecting improved operational execution.
- The company secured $395M in new automotive business awards and launched new products in the home and medical markets.
- Despite $20M in incremental annual costs from inflation, Gentherm maintained its 2026 guidance of $1.5B-$1.6B revenue and $175M-$195M adjusted EBITDA.
- The transaction with Modine is progressing on schedule, with HSR clearance received and a Q4 2026 closing expected.
Financial Impact
Record $394M revenue and 12.5% EBITDA margin in Q1 2026, with full-year guidance of $1.5B-$1.6B revenue and $175M-$195M EBITDA.
Risk Factors
- The $20M in incremental annual costs from inflation and logistics could pressure margins if recovery mechanisms with customers are delayed.
- The successful integration of Modine's Performance Technologies is critical to achieving the projected $25M in near-term cost synergies and $100M+ in commercial opportunities.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 425 Filing (THRM) — Batch item 1 | 0001193125-26-173741 |
| Document: 0001193125-26-173741-index-headers.html | 0001193125-26-173745 |
| Document: 0001193125-26-173741-index.html | 0001193125-26-173741 |
| Document: 0001193125-26-173741.txt | 0001193125-26-173741 |
| 425 Filing (THRM) — Batch item 5 | 0001193125-26-173745 |
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
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