Gentherm announces Q3 adjusted EPS of 73 cents, surpassing consensus estimate of 65 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
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Q3 Financial Performance: Reports Q3 revenue of $386.87M, exceeding consensus estimates of $375.15M, indicating strong financial and operational performance.
New Business Awards: Secured $745M in Automotive New Business Awards, on track to exceed $2B for the year, reflecting ongoing commercial momentum.
Market Growth: Improved growth over market with new program launches and increased take rates in the China market, contributing to operational excellence.
Strategic Initiatives: Expanded into adjacent markets, such as furniture, showcasing confidence in scaling core technologies for profitable growth and long-term value creation.
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Analyst Views on THRM
Wall Street analysts forecast THRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for THRM is 43.33 USD with a low forecast of 42.00 USD and a high forecast of 44.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 35.840
Low
42.00
Averages
43.33
High
44.00
Current: 35.840
Low
42.00
Averages
43.33
High
44.00
About THRM
Gentherm Incorporated is a provider of thermal management and pneumatic comfort technologies. The Company operates in two segments: Automotive and Medical. The Automotive reporting segment comprises global automotive businesses, including the design, development, manufacturing and sales of its automotive climate and comfort solutions (including Climate Control Seats, Climate Control Interiors, lumbar and massage comfort solutions and electronic solutions for climate and comfort technologies), valve system solutions and other automotive products. The Medical reporting segment comprises the patient temperature management business in the medical industry. Patient temperature management includes temperature management systems across multiple product categories addressing the needs of hyper-hypothermia therapy in intensive care, normothermia in surgical procedures and additional warming/cooling therapies utilized in acute and chronic care departments and non-hospital facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gentherm to Merge with Modine Performance Tech, Targeting $25M Synergies
- Transaction Structure and Valuation: Gentherm's merger with Modine Performance Technologies is structured as a Reverse Morris Trust, with an estimated transaction valuation of approximately $1 billion, equating to a 6.8x multiple based on $147 million of synergy-adjusted EBITDA, targeting a close in Q4 2026.
- Revenue and Market Expansion: Post-merger, Gentherm's pro forma revenue base is expected to reach about $2.6 billion, nearly doubling its current scale, while shifting its revenue mix from light vehicles to commercial, heavy-duty equipment, and power generation markets, enhancing cross-selling capabilities.
- Cost Synergies and Growth Potential: Management anticipates achieving approximately $25 million in actionable annual cost synergies by the end of 2028, with revenue synergy potential ranging from $100 million to $500 million, indicating strong growth prospects post-merger.
- Operational Efficiency and Financial Performance: Gentherm aims to leverage Modine's established operating system and low capital intensity to enhance overall operational efficiency, with a synergy-adjusted EBITDA margin expected to reach around 13%, with a pathway to mid-teens in the future.
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Modine Sells Performance Tech to Gentherm for ~$1B, Stock Surges
- Transaction Size: Modine announced the sale of its performance technologies business to Gentherm for approximately $1 billion, representing a valuation of about 6.8 times the adjusted EBITDA for 2025, indicating strong market recognition of its assets.
- Shareholder Benefits: Before the transaction closes, Modine is set to receive a cash distribution of $210 million, while shareholders will receive around 21 million shares of newly issued Gentherm common stock, allowing them to hold approximately 40% of the combined company, enhancing long-term shareholder value.
- Synergy Potential: The combined company is projected to have revenue of $2.6 billion and an adjusted EBITDA margin of 13%, with expected annual synergies of $25 million through cost optimization and operational efficiencies, significantly improving overall financial performance.
- Strategic Implications: Analysts view this transaction as a positive strategic move; while the sale of the entire engine business was unexpected, it does not negatively impact Modine's long-term prospects and may strengthen its focus on climate solutions.
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