Shares of Gentherm (NASDAQ: THRM) surged 10.63% in pre-market trading on Thursday following the release of the company's impressive third-quarter 2025 results and an upward revision of its full-year guidance. The thermal management technology firm reported better-than-expected earnings and revenue, demonstrating resilience in a challenging market environment.
Gentherm posted adjusted earnings per share of $0.73 for the third quarter, surpassing the analyst consensus estimate of $0.65 by 11.96%. While this represents a slight decrease from $0.75 per share in the same period last year, it still showcases the company's ability to maintain strong profitability. Quarterly sales reached $386.87 million, beating the analyst consensus estimate of $374.75 million by 3.23% and marking a 4.13% increase from the previous year.
The company's performance was driven by robust growth in key segments. Automotive Climate and Comfort Solutions revenue increased by 8.6% year-over-year, outperforming light vehicle production in relevant markets. Gentherm also secured $745 million in new automotive business awards during the quarter, including a significant contract with Mercedes-Benz for lumbar and massage solutions. This commercial momentum has kept the company on track to deliver over $2 billion in new business awards for the year.
In light of the strong results, Gentherm raised its full-year 2025 revenue guidance. The company now expects product revenues in the range of $1.47 billion to $1.49 billion, up from the previous guidance and surpassing the FactSet consensus estimate of $1.45 billion. This optimistic outlook, coupled with the company's ongoing operational excellence initiatives and strong cash generation, has clearly resonated with investors, driving the substantial pre-market stock price increase.
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