The sharp adjusted EPS miss (-53.4% vs consensus) and declining profitability (gross margin -130bp, net loss) are the dominant signals despite the revenue beat and Modine deal closing. Monitor integration execution and margin recovery in Q4; the updated guidance implies a significant step-up in Q4 performance. The $340M remaining buyback authorization provides a floor but does not offset fundamental deterioration.
Price Chart
Executive Summary
Gentherm reported Q3 2026 revenue of $405.1M (+4.7% YoY), slightly above consensus of $402.7M, but GAAP EPS of -$0.08 and adjusted EPS of $0.33 both missed consensus of $0.71 by a wide margin. The company completed its combination with Modine Performance Technologies on October 1 and updated full-year guidance to include Modine's contribution, raising revenue guidance to $1.825B-$1.925B and Adjusted EBITDA to $210M-$230M. The sharp EPS miss and declining profitability overshadow the revenue beat and strategic transaction.
Key Financial Metrics
Key Facts
- Q3 2026 product revenues of $405.1M, up 4.7% YoY (4.4% ex-FX), vs consensus $402.7M
- GAAP diluted EPS of -$0.08 vs $0.49 YoY; adjusted diluted EPS of $0.33 vs $0.73 YoY and consensus $0.71
- Gross margin declined to 23.3% from 24.6% YoY due to FX, higher material costs, and inflation
- Net loss of $2.6M vs net income of $14.9M in prior year
- Adjusted EBITDA fell to $45.0M (11.1% of revenue) from $49.0M (12.7% of revenue) YoY
- Cash flow from operations dropped to $36.0M from $87.8M in the prior year
- Completed Modine Performance Technologies combination on October 1, 2026
- Full-year 2026 guidance updated: revenue $1.825B-$1.925B, Adjusted EBITDA $210M-$230M, Adjusted FCF $100M-$120M
- Repurchased $60M of common stock in October; $340M remaining under $400M buyback authorization
- Paid $63.5M special dividend ($2.07/share) on October 7 as part of Modine transaction
Financial Impact
Adjusted EPS of $0.33 missed consensus of $0.71 by 53.5%; revenue beat by ~0.6%
Risk Factors
- Integration risk from Modine Performance Technologies combination
- Continued gross margin compression from FX, material costs, and inflation
- Declining operating cash flow ($36M vs $87.8M YoY) limits financial flexibility
- Automotive production headwinds with light vehicle production expected to decrease at low single-digit rate
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-428275 |
| Document: thrm-20261022.htm | 0001193125-26-428275 |
| Document: 0001193125-26-428275-index-headers.html | 0001193125-26-428275 |
| Document: 0001193125-26-428275-index.html | 0001193125-26-428275 |
| Document: 0001193125-26-428275.txt | 0001193125-26-428275 |
| 8-K Data (Synthetic) | 0001193125-26-428275 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Insider Cluster | $29.00 | awaiting T+20 | — | $31.73 (+9.40%) |
Oct 22, 2026 5d ago | 8-K | $26.15 | awaiting T+20 | — | $31.73 (−21.32%) |
Oct 9, 2026 17d ago | 8-K/A | $30.92 | awaiting T+20 | — | $31.73 (+2.60%) |
Oct 6, 2026 20d ago | 3 | $30.38 | awaiting T+20 | — | $31.73 (+4.43%) |
Oct 1, 2026 25d ago | 8-K | $31.30 | awaiting T+20 | — | $31.73 (+1.36%) |
Oct 1, 2026 25d ago | Press Release | $31.30 | awaiting T+20 | — | $31.73 (+1.36%) |
Sep 17, 2026 5w ago | Press Release | $36.35 $29.04 | ▼ −20.11% | ▼ −20.31% | $31.73 (−12.72%) |
Sep 11, 2026 6w ago | 8-K | $38.85 $29.68 | ▼ −23.60% | ▼ −25.47% | $31.73 (−18.34%) |
Sep 10, 2026 6w ago | Press Release | $38.33 $29.93 | ▼ −21.91% | ▼ −24.04% | $31.73 (−17.23%) |
Aug 13, 2026 10w ago | EFFECT | $43.07 $38.85 | ▼ −9.80% | ▼ −8.05% | $31.73 (−26.34%) |
US Market Status
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