Gentherm Inc. (THRM) Secures $2.2B in New Automotive Awards

Gentherm Incorporated (NASDAQ:THRM) is one of the best EV stocks to buy according to analysts. On February 19, Gentherm announced financial results for 2025, achieving a record annual product revenue of $1.5 billion. The company secured $2.2 billion in automotive new business awards and increased its operating cash flow by 7% to $116.8 million. The company is progressing on strategic initiatives like a planned combination with Modine Performance Technologies, expected to close by the end of 2026.

In Q4 alone, product revenues rose 8.5% year-over-year to $382.8 million, driven by an 11.1% increase in Automotive Climate and Comfort Solutions. However, net income fell to $3.0 million from $15.3 million in the previous year, and gross margin declined to 23.7% due to higher material costs and footprint realignment expenses. During this period, the company secured $485 million in new automotive awards and was selected by a second global furniture brand to provide comfort solutions starting in mid-2026. Adjusted diluted EPS for the quarter was $0.49, compared to $0.29 in the prior year.

Gentherm Inc. (THRM) Secures $2.2B in New Automotive Awards

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Gentherm Incorporated (NASDAQ:THRM) established its 2026 guidance with expected product revenues between $1.5 billion and $1.6 billion and Adjusted EBITDA ranging from $175 million to $195 million. The company also provided a preliminary revenue outlook for 2027 of approximately $1.7 billion. These projections are based on current customer orders, existing tariffs, and a forecast of a low single-digit decrease in light vehicle production for 2026.

Gentherm Incorporated (NASDAQ:THRM) designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the US, China, Germany, the Czech Republic, South Korea, Mexico, Slovakia, Romania, Japan, the UK, and internationally.

While we acknowledge the potential of THRM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than THRM and that has 100x upside potential, check out our report about this cheapest AI stock.

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