THRM Gentherm Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2025

 

 

GENTHERM INCORPORATED

(Exact name of Registrant as Specified in Its Charter)

 

 

Michigan			0-21810	95-4318554
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
28875 Cabot Drive
Novi, Michigan				48377
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (248) 348-9735

 

21680 Haggerty Road, Northville, MI 48167

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, no par value		THRM		The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On February 19, 2025, Gentherm Incorporated (the “Company”) publicly announced its financial results for the fourth quarter and full year for 2024 and provided 2025 guidance. A copy of the Company’s news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On February 19, 2025 at 8:00 a.m. Eastern Time, the Company will host a conference call to discuss the fourth quarter and full year 2024 financial results and 2025 guidance. A copy of the supplemental materials that will be used during the conference call is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information in Items 2.02 and 7.01 herein and the attached exhibits 99.1 and 99.2 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly stated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit 99.1		Company news release dated February 19, 2025 concerning financial results and guidance
Exhibit 99.2		Supplemental materials dated February 19, 2025
Exhibit 104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GENTHERM INCORPORATED
	By:		/s/ Wayne Kauffman
			Wayne Kauffman
			Senior Vice President, General Counsel and Secretary
Date: February 19, 2025

 

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Exhibit 99.1

Gentherm Reports 2024 Fourth Quarter and Full Year Results

Achieved 61% Year Over Year Net Income Growth; Record Annual Adjusted EBITDA of $183M

Secured Annual Automotive New Business Awards of $2.4 Billion

Establishes 2025 Guidance

NOVI, Michigan, February 19, 2025 /Global Newswire/ -- Gentherm (NASDAQ:THRM), a global market leader of innovative thermal management and pneumatic comfort technologies, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Bill Presley, the Company's President and CEO, said, “In 2024, the Company leveraged its culture of innovation to launch new products, record automotive new business awards well over $2 billion for the 2nd consecutive year, and achieved record Adjusted EBITDA. Gentherm has a strong foundation, unique capabilities and product offerings, as well as sustainable competitive advantages. As we look to the future, we will leverage these capabilities, scale our technologies, and optimize our operations to drive shareholder value.”

 

Fourth Quarter Highlights

 

Full Year 2024 Highlights

 

2024 Fourth Quarter Financial Review

Product revenues for the fourth quarter of 2024 decreased by $14.0 million, or 3.8%, as compared with the prior-year period. Excluding the impact of foreign currency translation, product revenues decreased 3.3% year over year.

Automotive revenues decreased 4.3% year over year. Adjusting for foreign currency translation, phasing out the non-automotive and contract manufacturing electronics business as well as one-time benefits from

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recoveries in the prior year, Automotive revenues decreased 1.8% year over year. Revenues from Automotive Climate and Comfort Solutions increased 1.7% in the fourth quarter compared to the prior-year period.

According to S&P Global Mobility’s mid-February report, actual light vehicle production increased by 0.4% in the fourth quarter when compared with the same quarter of 2023 in the Company’s key markets of North America, Europe, China, Japan, and South Korea.

Gentherm Medical revenue increased 8.4% year over year. Adjusting for the impact of foreign currency translation, Medical revenues increased 8.9%.

Gross margin rate decreased to 24.4% in the current-year period, as compared with 26.2% in the prior-year period. The decrease from the prior-year period was driven by product mix, higher freight costs, the impact of foreign exchange, and the costs related to our new plants opening in Monterrey, Mexico and Tangier, Morrocco.

Net research and development expenses of $21.1 million in the quarter decreased slightly compared to the prior-year period primarily as a result of lower third-party spend.

Selling, general and administrative expenses of $38.6 million in the quarter decreased $3.3 million versus the prior-year period. The year-over-year decrease was primarily driven by lower compensation expenses, partially offset by leadership transition expenses in 2024.

Restructuring expenses, net of $0.7 million in the current-year period, decreased $0.6 million, versus the prior-year period primarily as a result of higher costs associated with footprint optimization in the prior-year.

The Company recorded Adjusted EBITDA of $41.4 million in the quarter compared with $49.0 million in the prior-year period, a decrease of $7.6 million or 15.6%.

Income tax expense in the quarter was $20.8 million, as compared with income tax gain of $0.9 million in the prior-year period. The year-over-year increase was primarily driven by one-time tax settlements relating to prior period tax audits.

GAAP diluted earnings per share for the quarter was $0.49 compared with $0.56 for the prior-year period. Adjusted diluted earnings per share for the quarter was $0.29 compared with $0.90 for the prior-year period.

2024 Full Year Financial Review

For full year 2024, the Company reported product revenues of $1,456.1 million, a 0.9% decrease over the prior year. Excluding the impact of foreign currency translation, product revenues decreased 0.4% year over year.

 

In the Automotive segment, 2024 full-year revenue was $1,406.3 million, a 1.2% decrease compared to the prior year. Revenue increases in the Lumbar and Massage Comfort Solutions and Steering Wheel Heater product categories were offset by decreases in the Climate Control Seat and Seat Heater categories and automotive revenue not related to Automotive Climate and Comfort Solutions. Adjusting for foreign currency translation Automotive revenue decreased 0.7% year over year. Adjusting for foreign currency translation, phasing out the non-automotive and contract manufacturing electronics business as well as one-time benefits from recoveries in the prior year, Automotive revenue increased 0.8% year over year.

 

According to S&P Global Mobility’s mid-February 2025 report, actual light vehicle production decreased 1.0% for the full year 2024 compared to full year 2023 in the Company’s key markets of North America, Europe, China, Japan and South Korea.

 

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Medical segment revenue was $49.8 million for full year 2024, an 8.1% increase compared to the prior year. Adjusting for foreign currency translation, Medical revenues increased 8.2%.

 

Gross margin rate was 25.2% in 2024, a 130 basis point increase from 2023, primarily as a result of strong material performance, productivity, and the impact of our previously announced exit of the non-automotive electronics business, partially offset by annual price reductions, wage inflation, and the costs related to our new plants opening in Monterrey, Mexico and Tangier, Morrocco.

 

Net research and development expenses of $88.7 million in 2024 decreased 6.0% primarily as a result of lower project spend and a reduction in resources allocated to the battery performance solutions product category.

 

Selling, general and administrative expenses of $155.1 million in 2024 decreased $0.5 million, or 0.3%, versus the prior year period. The year over year decrease was primarily driven by acquisition and integration expenses in the prior year and lower compensation expenses, partially offset by leadership transition costs and increased investment in information technology in 2024.

 

The Company incurred $13.1 million in restructuring expenses, net in 2024, compared to $4.7 million in the prior year period primarily as a result of manufacturing footprint optimization and reductions to the global salaried workforce. The Company recorded impairment of goodwill charges of $19.5 million in 2023 related to the Medical segment.

 

The Company recorded Adjusted EBITDA of $182.9 million in 2024 compared with $180.6 million in the prior year, an increase of $2.3 million or 1.3%.

 

Income tax expense in 2024 was $37.3 million, as compared with $14.6 million in the prior year. The effective tax rate was 36.5% for 2024. This rate differed from the Federal statutory rate of 21%, primarily due to unfavorable geographic mix of earnings as well as the impact of one-time tax settlements relating to prior period tax audits. Excluding the impact of prior period tax audits, the effective tax rate was 26.9%.

 

GAAP diluted earnings per share for full year 2024 was $2.06 as compared with $1.22 for the prior year. Adjusted diluted earnings per share for full year 2024 was $2.33 as compared with $2.59 for the prior year.

The Company provides various non-GAAP financial measures in this release. See “Use of Non-GAAP Measures” below for additional information, including definitions, usefulness for investors and limitations, as well as reconciliations below to the most directly comparable GAAP financial measures.

Guidance

The Company is providing the following guidance for full year 2025:

Guidance assumptions:

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Conference Call

As previously announced, Gentherm will conduct a conference call today at 8:00 am Eastern Time to review these results. The dial-in number for the call is 1-877-407-4018 (callers in the U.S.) or +1-201-689-8471 (callers outside this U.S.). The passcode for the live call is 13751539.

A live webcast and one-year archived replay of the call can be accessed on the Events page of the Investor section of Gentherm's website at www.gentherm.com.

A telephonic replay will be available approximately two hours after the call until 11:59 pm Eastern Time on March 5, 2025. The replay can be accessed by dialing 1-844-512-2921 (callers in the U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode for the replay is 13751539.

Investor Contact
Gregory Blanchette
investors@gentherm.com 
248.308.1702

Media Contact
Melissa Fischer
media@gentherm.com 
248.289.9702

 

About Gentherm

Gentherm (NASDAQ: THRM) is a global market leader of innovative thermal management and pneumatic comfort technologies. Automotive products include variable temperature Climate Control Seats®, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems, lumbar and massage comfort solutions, valve system technologies, and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has more than 14,000 employees in facilities in the United States, Germany, China, Czech Republic, Hungary, Japan, Malta, Mexico, Morocco, North Macedonia, South Korea, United Kingdom, Ukraine, and Vietnam. For more information, go to www.gentherm.com.

Forward-Looking Statements

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Gentherm Incorporated's goals, beliefs, plans and expectations about its prospects for the future and other future events. The forward-looking statements included in this release are made as of the date hereof or as of the date specified herein and are based on management's reasonable expectations and beliefs. In making these statements we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we consider appropriate under the circumstances. Such statements are subject to a number of important assumptions, significant risks and uncertainties (some of which are beyond our control) and other factors that may cause actual results or performance to differ materially from that described in or indicated by the forward-looking statements, including but not limited to:

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The foregoing risks should be read in conjunction with the Company's reports filed with or furnished to the Securities and Exchange Commission (the “SEC”), including “Risk Factors,” in its most recent Annual Report on Form 10-K and subsequent SEC filings, for a discussion of these and other risks and uncertainties. In addition, with reasonable frequency, we have entered into business combinations, acquisitions, divestitures, strategic investments and other significant transactions. Such forward-looking statements do not include the potential impact of any such transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results.

Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Use of Non-GAAP Financial Measures

In addition to the results reported in accordance with GAAP throughout this release, the Company has provided here or elsewhere information regarding: adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”); Adjusted EBITDA margin; adjusted earnings per share (“Adjusted earnings per share” or “Adjusted EPS”); free cash flow; Net Debt, net leverage ratio (“net leverage”), revenue, segment revenue and product revenue excluding foreign currency translation and other specified gains and losses; Automotive Climate and Comfort Solutions revenues; and adjusted operating expenses, each a non-GAAP financial measure. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, non-cash stock based compensation expenses, restructuring expenses, net, unrealized currency gain or loss and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by product revenues. The Company defines Adjusted EPS as earnings adjusted by restructuring expenses, net, unrealized currency gain or loss and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines Free Cash Flow as Net cash provided by operating activities less Purchases of property and equipment. The Company defines Net Debt as the principal amount of all Consolidated Funded Indebtedness (as defined in the Credit Agreement) less cash and cash equivalents. The Company defines net leverage as Net Debt divided by Adjusted EBITDA for the trailing four fiscal quarters. The Company defines revenue, segment revenue or product revenue excluding foreign currency translation and other specified gains and losses as such revenue, excluding the estimated effects of foreign currency exchange on revenue by translating actual revenue using the prior period foreign currency exchange rates and excluding the other items specified in the reconciliation tables herein. The Company defines Automotive Climate and Comfort Solutions revenues as Automotive revenue excluding specified product revenues and the impact of non-automotive electronics and contract manufacturing electronics revenues. The Company defines adjusted operating expenses as operating expenses excluding related non-cash stock based compensation, restructuring expenses, net, and other losses not reflective of the Company’s ongoing operations.

The Company’s reconciliations are included in this release or can be found in the supplemental materials furnished as Exhibit 99.2 to the Company’s Form 8-K dated February 19, 2025.

In evaluating its business, the Company considers and uses Free Cash Flow and Net Debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management provides such non-GAAP financial measures so that investors will have the same financial information that management uses with the belief that it will assist investors in properly assessing the Company's performance on a period-over-period basis by excluding matters not indicative of the Company’s ongoing operating or liquidity results and therefore enhance the comparability of the Company's results and provide additional information for analyzing trends in the business. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur revenues, expenses, and cash and non-cash obligations that are the same as or

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similar to some of the adjustments in our presentation of non-GAAP financial measures. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There also can be no assurance that we will not modify the presentation of our non-GAAP financial measures in the future, and any such modification may be material. Other companies in our industry may define and calculate these non-GAAP financial measures differently than we do and those calculations may not be comparable to our metrics. These non-GAAP measures have limitations as analytical tools, and when assessing the Company's operating performance or liquidity, investors should not consider these non-GAAP measures in isolation, or as a substitute for net income (loss), revenue or other consolidated income statement or cash flow statement data prepared in accordance with GAAP.

Non-GAAP measures referenced in this release and other public communications may include estimates of future Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS. The Company has not reconciled the non-GAAP forward-looking guidance included in this release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to taxes and non-recurring items, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

 

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GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Product revenues		$	352,914			$	366,933			$	1,456,124			$	1,469,076
Cost of sales			266,810				270,637				1,089,693				1,117,452
Gross margin			86,104				96,296				366,431				351,624
Operating expenses:
Net research and development expenses			21,078				21,367				88,697				94,358
Selling, general and administrative expenses			38,646				41,899				155,108				155,579
Restructuring expenses, net			768				1,327				13,110				4,739
Impairment of intangible assets and property and equipment			1,971				—				2,501				—
Impairment of goodwill			—				—				—				19,509
Total operating expenses			62,463				64,593				259,416				274,185
Operating income			23,641				31,703				107,015				77,439
Interest expense, net			(3,344	)			(5,197	)			(15,300	)			(14,641	)
Foreign currency gain (loss)			15,812				(6,302	)			9,599				(5,918	)
Other (loss) income			(1	)			(2,984	)			951				(1,926	)
Earnings before income tax			36,108				17,220				102,265				54,954
Income tax expense (gain)			20,787				(867	)			37,318				14,611
Net income		$	15,321			$	18,087			$	64,947			$	40,343
Basic earnings per share		$	0.50			$	0.57			$	2.08			$	1.23
Diluted earnings per share		$	0.49			$	0.56			$	2.06			$	1.22
Weighted average number of shares – basic			30,912				31,974				31,293				32,778
Weighted average number of shares – diluted			31,054				32,200				31,476				33,067

 

 

 

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GENTHERM INCORPORATED

REVENUE BY PRODUCT CATEGORY AND RECONCILIATION OF FOREIGN CURRENCY TRANSLATION IMPACT

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended December 31,												Year Ended December 31,
		2024				2023				% Change				2024				2023				% Change
Climate Control Seat		$	116,031			$	121,797				(4.7	)%		$	468,820			$	482,665				(2.9	)%
Seat Heaters			70,752				77,456				(8.7	)%			297,866				308,588				(3.5	)%
Lumbar and Massage Comfort Solutions			45,494				35,321				28.8	%			178,584				144,923				23.2	%
Steering Wheel Heaters			42,824				38,777				10.4	%			169,763				153,943				10.3	%
Valve Systems			23,082				23,746				(2.8	)%			105,056				106,262				(1.1	)%
Automotive Cables			15,906				19,862				(19.9	)%			73,091				79,993				(8.6	)%
Battery Performance Solutions			11,643				18,346				(36.5	)%			58,183				75,484				(22.9	)%
Electronics			6,847				9,931				(31.1	)%			33,065				40,387				(18.1	)%
Other Automotive			6,255				8,709				(28.2	)%			21,850				30,707				(28.8	)%
Subtotal Automotive segment			338,834				353,945				(4.3	)%			1,406,278				1,422,952				(1.2	)%
Medical segment			14,080				12,988				8.4	%			49,846				46,124				8.1	%
Total Company		$	352,914			$	366,933				(3.8	)%		$	1,456,124			$	1,469,076				(0.9	)%
Foreign currency translation impact (a)			(1,995	)			—								(7,129	)			—
Total Company, excluding foreign currency translation impact		$	354,909			$	366,933				(3.3	)%		$	1,463,253			$	1,469,076				(0.4	)%
(a) Foreign currency translation impacts for the Automotive segment and Medical segment were $(1,931) and $(64), respectively, for the three months ended December 31, 2024. Foreign currency translation impacts for the Automotive segment and Medical segment were $(7,060) and $(70), respectively, for the twelve months ended December 31, 2024.

 

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GENTHERM INCORPORATED

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

AND ADJUSTED EBITDA MARGIN

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net income		$	15,321			$	18,087			$	64,947			$	40,343
Add back:
Depreciation and amortization			12,587				12,062				51,329				50,416
Income tax expense (benefit) (a)			20,787				(867	)			37,318				14,611
Interest expense, net (b)			3,344				5,197				15,300				14,641
Adjustments:
Non-cash stock based compensation			98				3,164				10,432				11,756
Restructuring expenses, net			768				1,327				13,110				4,739
Unrealized currency (gain) loss			(16,970	)			4,898				(10,719	)			9,125
Leadership transition expenses			3,802				—				3,802				—
Impairment of intangible assets and property and equipment			1,971				—				2,501				—
Acquisition and integration expenses			—				578				—				5,308
Impairment of goodwill			—				—				—				19,509
Non-automotive electronics inventory (benefit) charge			(103	)			575				(4,554	)			6,064
Other (c)			(231	)			4,001				(574	)			4,072
Adjusted EBITDA		$	41,374			$	49,022			$	182,892			$	180,584
Product revenues		$	352,914			$	366,933			$	1,456,124			$	1,469,076
Net income margin			4.3	%			4.9	%			4.5	%			2.7	%
Adjusted EBITDA margin			11.7	%			13.4	%			12.6	%			12.3	%
(a) Includes $2,423 of deferred income tax benefit associated with the goodwill impairment of the Medical reporting unit for the twelve months ended December 31, 2023.
(b) Includes $186 and $1,343 of interest expense for the three months and twelve months ended December 31, 2024, related to mark-to-market adjustment of our floating-to-fixed interest rate swap agreement with a notional amount of $100,000.
(c) Includes $2,900 of non-cash impairment charges related to our Carrar Ltd. Investment for the three and twelve months ended December 31, 2023.

 

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GENTHERM INCORPORATED

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

AND ADJUSTED EARNINGS PER SHARE

(Dollars in thousands, except per share data)

(Unaudited)

 

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net income		$	15,321			$	18,087			$	64,947			$	40,343
Non-cash purchase accounting impact			1,572				1,604				6,369				7,397
Restructuring expenses, net			768				1,327				13,110				4,739
Unrealized currency (gain) loss			(16,970	)			4,898				(10,719	)			9,125
Leadership transition expenses			3,802				—				3,802				—
Impairment of intangible assets and property and equipment			1,971				—				2,501				—
Acquisition and integration expenses			—				578				—				5,308
Impairment of goodwill			—				—				—				19,509
Non-automotive electronics inventory (benefit) charge			(103	)			575				(4,554	)			6,064
Other (a)			(231	)			4,001				(574	)			4,072
Tax effect of above			2,964				(2,179	)			(1,582	)			(10,814	)
Adjusted net income		$	9,094			$	28,891			$	73,300			$	85,743
Weighted average shares outstanding (in thousands):
Basic			30,912				31,974				31,293				32,778
Diluted			31,054				32,200				31,476				33,067
Earnings per share, as reported:
Basic		$	0.50			$	0.57			$	2.08			$	1.23
Diluted		$	0.49			$	0.56			$	2.06			$	1.22
Adjusted earnings per share:
Basic		$	0.29			$	0.90			$	2.34			$	2.62
Diluted		$	0.29			$	0.90			$	2.33			$	2.59
(a) Includes $2,900 of non-cash impairment charges related to our Carrar Ltd. Investment for the three and twelve months ended December 31, 2023.

 

 

 

 

 

 

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GENTHERM INCORPORATED

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands, except share data)

(Unaudited)

 

		December 31,
		2024				2023
ASSETS
Current Assets:
Cash and cash equivalents		$	134,134			$	149,673
Accounts receivable, net			258,112				253,579
Inventory, net			227,356				205,892
Other current assets			64,413				78,420
Total current assets			684,015				687,564
Property and equipment, net			252,970				245,234
Goodwill			99,603				104,073
Other intangible assets, net			57,251				66,482
Operating lease right-of-use assets			43,954				27,358
Deferred income tax assets			75,041				81,930
Other non-current assets			34,722				21,730
Total assets		$	1,247,556			$	1,234,371
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	226,815			$	215,827
Current lease liabilities			7,517				7,700
Current maturities of long-term debt			137				621
Other current liabilities			105,824				100,805
Total current liabilities			340,293				324,953
Long-term debt, less current maturities			220,064				222,217
Non-current lease liabilities			37,052				16,175
Pension benefit obligation			4,017				3,209
Other non-current liabilities			29,183				23,095
Total liabilities		$	630,609			$	589,649
Shareholders’ equity:
Common Stock:
No par value; 55,000,000 shares authorized 30,788,639 and 31,542,001 issued and outstanding at December 31, 2024 and December 31, 2023, respectively			2,049				50,503
Paid-in capital			4,290				—
Accumulated other comprehensive loss			(85,193	)			(30,160	)
Accumulated earnings			695,801				624,379
Total shareholders’ equity			616,947				644,722
Total liabilities and shareholders’ equity		$	1,247,556			$	1,234,371

 

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GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

		Year Ended December 31,
		2024				2023
Operating Activities:
Net income		$	64,947			$	40,343
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			52,975				50,948
Deferred income taxes			10,580				(13,072	)
Stock based compensation			10,432				11,627
Provisions for inventory			6,437				6,867
Impairment of intangible assets and property and equipment			2,501				—
Loss on disposition of property and equipment			(1,603	)			721
Impairment of goodwill			—				19,509
Other			(1,156	)			2,920
Changes in assets and liabilities:
Accounts receivable, net			(12,077	)			(4,195	)
Inventory			(34,195	)			6,907
Other assets			(44,696	)			(26,179	)
Accounts payable			16,222				31,029
Other liabilities			39,279				(8,160	)
Net cash provided by operating activities			109,646				119,265
Investing Activities:
Purchases of property and equipment			(73,314	)			(37,602	)
Proceeds from the sale of property and equipment			7,862				391
Proceeds from deferred purchase price of factored receivables			12,876				13,903
Cost of technology investments			(955	)			(815	)
Net cash used in investing activities			(53,531	)			(24,123	)
Financing Activities:
Borrowings on debt			68,000				60,000
Repayments of debt			(70,615	)			(72,280	)
Proceeds from the exercise of Common Stock options			5,791				263
Taxes withheld and paid on employee's share-based payment awards			(3,296	)			(2,940	)
Cash paid for the repurchase of Common Stock			(51,585	)			(91,094	)
Net cash used in financing activities			(51,705	)			(106,051	)
Foreign currency effect			(19,949	)			6,691
Net decrease in cash and cash equivalents			(15,539	)			(4,218	)
Cash and cash equivalents at beginning of period			149,673				153,891
Cash and cash equivalents at end of period		$	134,134			$	149,673
Supplemental disclosure of cash flow information:
Cash paid for taxes		$	20,837			$	23,273
Cash paid for interest			13,007				13,242

 

 

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GENTHERM INCORPORATED

OTHER NON-GAAP RECONCILIATIONS

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Automotive revenues		$	338,834			$	353,945			$	1,406,278			$	1,422,952
Less: Non-automotive electronics revenues and contract manufacturing electronics			2,755				5,729				15,719				27,866
Less: One-time benefits from recoveries and retrofits			—				3,877				—				7,974
Adjusted Automotive revenues			336,079				344,339				1,390,559				1,387,112
Foreign currency translation impact			(1,934	)			—				(6,982	)			—
Adjusted Automotive revenues, excluding foreign currency translation impact		$	338,013			$	344,339			$	1,397,541			$	1,387,112
Year over Year % change			(1.8	)%							0.8	%

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Automotive revenues		$	338,834			$	353,945			$	1,406,278			$	1,422,952
Less: Valve Systems			23,082				23,746				105,056				106,262
Less: Automotive Cables			15,906				19,862				73,091				79,993
Less: Battery Performance Solutions			11,643				18,346				58,183				75,484
Less: Non-automotive and contract manufacturing electronics			2,755				5,729				15,719				27,866
Automotive Climate and Comfort Solutions revenues			285,448				286,262				1,154,229				1,133,347
Less: One-time benefits from recoveries and retrofits			—				3,877				—				7,974
Adjusted Automotive Climate and Comfort Solutions revenues			285,448				282,385				1,154,229				1,125,373
Foreign currency translation impact			(1,630	)			—				(6,337	)			—
Adjusted Automotive Climate and Comfort Solutions revenues, excluding foreign currency translation impact		$	287,078			$	282,385			$	1,160,566			$	1,125,373
Year over Year % change			1.7	%							3.1	%

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
Total operating expenses		$	62,463			$	64,593			$	259,416			$	274,185
Restructuring expense, net			(768	)			(1,327	)			(13,110	)			(4,739	)
Non-cash stock based compensation			(192	)			(3,164	)			(9,909	)			(11,382	)
Leadership transition expenses			(3,802	)			—				(3,802	)			—
Impairment of intangible assets and property and equipment			(1,971	)			—				(2,501	)			—
Impairment of goodwill			—				—				—				(19,509	)
Acquisition and Integration expenses			—				(578	)			—				(5,308	)
Other			231				(1,139	)			(990	)			(1,729	)
Adjusted operating expenses		$	55,961			$	58,385			$	229,104			$	231,518

 

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Proprietary © Gentherm 2024 Fourth Quarter Results February 19, 2025 Exhibit 99.2

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Forward-Looking Statements Proprietary © Gentherm Except for historical information contained herein, statements in this presentation are forward-looking statements that are made by Gentherm Incorporated (the “Company”) pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements that address future operating, financial or business performance or strategies or expectations are forward-looking statements. The forward-looking statements included in this presentation are made as of the date specified herein and are based on management's reasonable expectations and beliefs. In making these statements we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we consider appropriate under the circumstances. Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its strategies or expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The forward-looking statements are subject to a number of significant assumptions, risks, uncertainties (some of which are out of our control) and other factors that may cause actual results or performance to differ materially from that expressed or implied by such statements. For a discussion of these risks and uncertainties and other factors, please see the Company’s most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission, including “Risk Factors.” In addition, the business outlook discussed in this presentation does not include the potential impact of any business combinations, acquisitions, divestitures, strategic investments and other significant transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results.

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OBSERVATIONS Profitable growth through conquest mapping, increasing scale and improving efficiency Customer’s Partner of Choice Revenue Growth Margin Expansion Cash Generation Strong Technology Foundation Opportunity to Drive Operational Improvement OPPORTUNITIES Map Conquests for Profitable Growth Broaden Application of Technologies Implement Business Process Standardization and Maximize Utilization OUTCOME Proprietary © Gentherm Initial Observations

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Industry Leading Technologies with Broad Market Application Core Technology Competencies Scalable Technology Platforms Way Forward Customer centric, systems-oriented approach Maintain industry leading, core technology platforms Leverage technology portability to drive scale Business process standardization THERMAL MANAGEMENT CCI™ Portfolio Blanketrol® III System Astopad® AIR MOVING DEVICES CCS® Portfolio WarmAir® CCS® Neck Conditioner PNEUMATIC SOLUTIONS Puls.A™ Pulsating Massage PCS™ Lumbar Support PCS™ Massage VALVE SYSTEMS Fuel Management Controlled Air Flow Special Solutions Proprietary © Gentherm 2023 Strategy Update Resistive Liquid Air Modality: Industry: Automotive Medical

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Proprietary © Gentherm 2022 2021 2023 2024 ClimateSense® Memory Seat Module IPS® CCS® Neck Conditioner ClimateSense® CCS® High- Power Series CCS® Neck Conditioner ClimateSense® Software Next Gen Control Units Increased Adoption of Next Generation Technologies Puls.A™ Massage CCS® CompactVent™ CCS® Quiet Blower Global EV Manufacturer ComfortScale™

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Delivered record financial performance while positioning Gentherm for future growth Highlights 02 $640M in Automotive New Business Awards 03 Continued strong launch activity; 18 different vehicles across 12 OEMs Record revenue and profitability for Medical Segment $2.4B in Automotive New Business Awards, led by accelerated adoption of innovations Record company Adjusted EBITDA of $183M Maintained net leverage ~0.5x while investing in operations and share repurchases 4Q FY Proprietary © Gentherm

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(Dollars in thousands, except per share data) 2024 2023 2024 2023 Product Revenues $ 352,914 $ 366,933 $ 1,456,124 $ 1,469,076   Automotive 338,834 353,945 1,406,278 1,422,952   Medical 14,080 12,988 49,846 46,124 Gross Margin 86,104 96,296 366,431 351,624 Gross Margin % 24.4% 26.2% 25.2% 23.9% Operating Expenses 62,463 64,593 259,416 274,185 Operating Income 23,641 31,703 107,015 77,439 Adjusted EBITDA 41,374 49,022 182,892 180,584 Adjusted EBITDA Margin 11.7% 13.4% 12.6% 12.3% Diluted EPS - As Adjusted $ 0.29 $ 0.90 $ 2.33 $ 2.59 Twelve Months Ended December 31 Three Months Ended December 31 Proprietary © Gentherm Select Income Statement Data

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Select Balance Sheet Data December 31, 2024 June 30, 2023 December 31, 2023 December 31, 2022 December 31, 2022 Cash and Cash Equivalents $ 134,134 $ 149,673 Total Assets  1,247,556 1,234,371 Debt 220,201 222,838    Current 137 621    Non-Current 220,064 222,217 Revolving LOC Availability 280,000 278,000 Total Liquidity 414,134 427,673 (Dollars in thousands) Proprietary © Gentherm

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2025E(1) Comments Product Revenues $1.4B – $1.5B ~2% growth (ex-fx) in declining market Adjusted EBITDA Margin 12% – 13% Expansion > 50 bps excluding footprint actions Adjusted Effective Tax Rate 26% – 29% ~ Flat year-over-year Capital Expenditures $70M – $80M Growth and footprint investments Based on the current forecast of customer orders, our expectations of near-term conditions, and light vehicle production in our key markets decreasing at low single digit rate for full year 2025 versus 2024, and a EUR to USD exchange rate of $1.03/Euro. These assumptions do not include any impact of potential changes to tariffs. Due to the inherent difficulty of forecasting the timing and amount of certain items that would impact net income margin, such as foreign currency gains and losses, we are unable to reasonably estimate net income margin, the GAAP financial measure most directly comparable to Adjusted EBITDA margin. Accordingly, we are unable to provide a reconciliation of Adjusted EBITDA margin to net income margin with respect to the guidance provided. Proprietary © Gentherm 2025 Guidance

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Appendix Proprietary © Gentherm

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Use of Non-GAAP Financial Measures In addition to the results reported herein in accordance with GAAP, the Company has provided here or may discuss on the related conference call adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”); Adjusted EBITDA margin; adjusted earnings per share (“Adjusted earnings per share” or “Adjusted EPS”); free cash flow; Net Debt; net leverage ratio (“net leverage”); revenue, segment revenue and product revenue excluding foreign currency translation and other specified gains and losses; Automotive Climate and Comfort Solutions revenues; and adjusted operating expenses, each a non-GAAP financial measure. See the Company’s earnings release dated February 19, 2025, for the definitions of each non-GAAP financial measure, information regarding why the Company utilizes such non-GAAP measures as supplemental measures of performance or liquidity, and their limitations, and for certain reconciliations of GAAP to non-GAAP historical financial measures. Proprietary © Gentherm

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(Dollars in thousands) 2024 2023 2024 2023 Net Income $ 15,321 $ 18,087 $ 64,947 $ 40,343 Add Back:      Depreciation and Amortization  12,587 12,062 51,329 50,416      Income Tax Expense (Benefit) 20,787 (867) 37,318 14,611      Interest Expense, net 3,344 5,197 15,300 14,641 Adjustments:     Non-Cash Stock-Based Compensation 98 3,164 10,432 11,756      Restructuring Expenses, net 768 1,327 13,110 4,739      Unrealized Currency (Gain) Loss  (16,970 ) 4,898 (10,719 ) 9,125 Leadership Transition Expenses 3,802 – 3,802 – Impairment of Intangible Assets and Property and Equipment 1,971 – 2,501 –      Acquisition and Integration Expenses – 578 – 5,308      Impairment of Goodwill – – – 19,509      Non-Automotive Electronics Inventory (Benefit) Charge (103 ) 575 (4,554 ) 6,064 Other (231 ) 4,001 (574 ) 4,072 Adjusted EBITDA  41,374 49,022 182,892 180,584 Product Revenues 352,914 366,933 1,456,124 1,469,076 Net Income Margin 4.3% 4.9% 4.5% 2.7% Adjusted EBITDA Margin 11.7% 13.4% 12.6% 12.3% Twelve Months Ended December 31 Three Months Ended December 31 Proprietary © Gentherm Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin

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Reconciliation of Adjusted EPS 2024 2023 2024 2023 Diluted EPS - As Reported $ 0.49 $ 0.56 $ 2.06 $ 1.22 Non-Cash Purchase Accounting Impacts 0.05 0.05 0.20 0.22 Restructuring Expenses, net 0.02 0.04 0.42 0.14 Unrealized Currency (Gain) Loss  (0.55 ) 0.15 (0.34 ) 0.28 Leadership Transition Expenses 0.12 – 0.12 – Impairment of Intangible Assets and Property and Equipment 0.06 – 0.08 – Acquisition and Integration Expenses – 0.02 – 0.16 Impairment of Goodwill – – – 0.59 Non-Automotive Electronics Inventory (Benefit) Charge – 0.02 (0.14 ) 0.18 Other (0.01 ) 0.12 (0.02 ) 0.12 Tax Effect of Above 0.10 (0.07) (0.05 ) (0.33 ) Rounding 0.01 0.01 – 0.01 Diluted EPS - As Adjusted 0.29 0.90 2.33 2.59 Three Months Ended December 31 Twelve Months Ended December 31 Proprietary © Gentherm

v3.25.0.1

Document And Entity Information	Feb. 19, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 19, 2025
Entity Registrant Name	GENTHERM INCORPORATED
Entity Central Index Key	0000903129
Entity Emerging Growth Company	false
Entity File Number	0-21810
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	95-4318554
Entity Address, Address Line One	28875 Cabot Drive
Entity Address, City or Town	Novi
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48377
City Area Code	(248)
Local Phone Number	348-9735
Entity Information, Former Legal or Registered Name	21680 Haggerty Road, Northville, MI 48167
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	THRM
Security Exchange Name	NASDAQ

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