10-Q - Gentherm Inc (0000903129) (Filer)

Thu, Apr 24, 8:04 PM (24 days ago)

**Gentherm Incorporated (THRM) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $353.9M (down 0.6% YoY) - Automotive: $341.9M (down 0.8% YoY) - Medical: $12.0M (up 5.3% YoY) - **Gross Margin:** 24.4% (down from 24.9% YoY) - **Operating Income:** $17.1M (down 5.4% YoY) - **Net Income:** -$0.1M (down from $14.8M YoY) - **EPS:** -$0.00 (down from $0.47 YoY) - **Cash Flow from Operations:** -$13.3M (down from -$10.3M YoY) **Key Metrics & Trends:** - **Product Revenues:** Decreased due to unfavorable foreign currency impacts and pricing, partially offset by favorable automotive volumes. - **Cost of Sales:** Relatively unchanged, with higher automotive volumes and freight costs offset by material purchasing savings and favorable foreign currency impacts. - **Operating Expenses:** Increased due to higher research and development expenses, partially offset by decreased selling, general, and administrative expenses. - **Restructuring Expenses:** $4.5M (down from $7.2M YoY) related to employee separation costs and other restructuring actions. - **Foreign Currency Loss:** $10.3M (down from a gain of $2.5M YoY) - **Effective Tax Rate:** 106.1% (up from 19.3% YoY) due to unfavorable tax effects of stock-based compensation awards and a valuation allowance. **Uncertainties & Future Operations:** - **Tariffs & Global Trade:** Additional tariffs announced in April 2025 may impact results, but the company has measures to mitigate direct impacts. - **Restructuring Plans:** Ongoing restructuring in Europe and Asia to optimize manufacturing footprint, with expected completion by end of 2027 and first half of 2026, respectively. - **Light Vehicle Production:** Forecasted to decrease 2.4% in 2025, which may impact sales. - **Stock Repurchase Program:** $120.1M remaining authorization as of March 31, 2025. - **Debt:** $262.0M outstanding under the revolving credit facility, with $235.2M available for additional borrowings. **Segment Performance:** - **Automotive:** Decreased revenues due to unfavorable foreign currency impacts and pricing, partially offset by favorable volumes. - **Medical:** Increased revenues due to higher demand for patient temperature management systems. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $163.1M (up from $134.1M QoQ) - **Debt:** $262.0M outstanding, with $235.2M available for additional borrowings. - **Cash Flow from Operations:** -$13.3M (down from -$10.3M YoY) - **Cash Flow from Investing Activities:** -$10.5M (down from -$8.8M YoY) - **Cash Flow from Financing Activities:** $40.7M (up from -$1.5M YoY) **Market Risks:** - **Interest Rate Sensitivity:** A 100 basis point change in interest rates would impact annual interest expense by $2.6M. - **Foreign Currency Exchange Risks:** The company uses derivative contracts to manage exposure to foreign currency exchange rate fluctuations. **Controls & Procedures:** - No changes in internal control over financial reporting during the quarter. - No material pending litigation or legal proceedings.