Gentherm Inc. Posts Strong Q4 Revenue Growth Amid Electrification Shift

Gentherm Inc. delivered a robust fourth-quarter performance, reporting revenue of $518 million, a 12% increase compared to the same period last year. This growth was fueled by strong demand for its electric vehicle (EV)-focused thermal management solutions, particularly in North America and Europe. The company’s advanced heating and cooling technologies are increasingly adopted by OEMs transitioning to battery-electric platforms, where efficient thermal regulation is critical for range and battery longevity. The results reflect a strategic shift in the automotive industry toward electrification, with Gentherm securing new contracts with multiple Tier 1 suppliers and major automakers. The company’s gross margin improved to 24.1% in the quarter, up from 22.8% in Q4 2024, indicating better cost control and higher-margin product mix. Operating income reached $68 million, a 17% rise, underscoring improved operational efficiency. In a forward-looking move, Gentherm raised its 2025 full-year revenue guidance to a range of $2.12 billion to $2.18 billion, up from the previous estimate of $2.05 billion to $2.13 billion. The company also reiterated its target for adjusted EBITDA margin expansion to 13.5% by year-end 2025. These revisions reflect growing confidence in its position within the EV supply chain and increasing penetration in emerging markets. The stock responded positively to the earnings update, with shares rising 5.3% in after-hours trading. Investors are particularly focused on Gentherm’s ability to scale production capacity and maintain innovation leadership in thermal systems, which are expected to remain essential components in EV platforms for the foreseeable future.