Gentherm Incorporated (THRM) Bundle
A Brief History of Gentherm Incorporated
Company Overview
Gentherm Incorporated is a global leader in thermal management technologies for the automotive and medical industries. The company specializes in the design and manufacturing of innovative solutions that enhance the comfort and safety of vehicles and medical devices.
Financial Performance
As of September 30, 2024, Gentherm reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenues | $371,512,000 | $366,195,000 | $5,317,000 (1.5%) |
| Cost of Sales | $276,639,000 | $279,985,000 | $(3,346,000) (1.2%) |
| Gross Margin | $94,873,000 | $86,210,000 | $8,663,000 (10.1%) |
| Operating Income | $32,337,000 | $23,741,000 | $8,596,000 (36.2%) |
| Net Income | $15,965,000 | $15,844,000 | $121,000 (0.8%) |
Revenue Breakdown by Segment
For the nine months ended September 30, 2024, product revenues by segment were as follows:
| Segment | Revenue | Change |
|---|---|---|
| Automotive | $1,067,444,000 | $(1,563,000) (0.1%) |
| Medical | $35,766,000 | $2,630,000 (7.9%) |
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, amounted to:
| Metric | Amount |
|---|---|
| R&D Expenses | $67,619,000 |
Stock Repurchase Programs
In 2024, Gentherm initiated a stock repurchase program with the following details:
| Program | Amount Authorized | Average Price Paid |
|---|---|---|
| 2024 Stock Repurchase Program | $150,000,000 | $48.97 |
Market Dynamics
Global light vehicle production volumes in key markets for the three months ended September 30, 2024, were:
| Region | Q3 2024 Volume (millions) | Q3 2023 Volume (millions) | Change |
|---|---|---|---|
| North America | 3.8 | 3.9 | (4.7%) |
| Europe | 3.7 | 3.9 | (6.1%) |
| Greater China | 7.4 | 7.6 | (2.7%) |
| Japan/South Korea | 2.9 | 3.1 | (6.2%) |
| Total | 17.7 | 18.6 | (4.5%) |
Future Outlook
As of October 2024, Gentherm anticipates a full-year 2024 light vehicle production volume decrease to approximately 73.9 million units, representing a 2.1% decline from 2023.
A Who Owns Gentherm Incorporated (THRM)
Major Shareholders
As of 2024, Gentherm Incorporated (THRM) has a diverse ownership structure consisting of institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership (%) | Type |
|---|---|---|
| BlackRock, Inc. | 10.5% | Institutional Investor |
| The Vanguard Group, Inc. | 9.8% | Institutional Investor |
| State Street Corporation | 8.2% | Institutional Investor |
| Invesco Ltd. | 5.7% | Institutional Investor |
| Dimensional Fund Advisors LP | 4.3% | Institutional Investor |
| Individual Shareholders | 61.5% | Retail Investors |
Recent Stock Performance
As of September 30, 2024, Gentherm's stock price was $52.65, reflecting a market capitalization of approximately $1.65 billion. The stock has shown a year-to-date performance of approximately 12% increase compared to the previous year.
Institutional Ownership Analysis
Institutional ownership plays a crucial role in the stock performance of Gentherm. The following table provides insights into the top institutional investors and their recent activity:
| Investor | Shares Owned | Change in Ownership (%) |
|---|---|---|
| BlackRock, Inc. | 3,200,000 | +1.2% |
| The Vanguard Group, Inc. | 2,950,000 | -0.5% |
| State Street Corporation | 2,500,000 | +0.8% |
| Invesco Ltd. | 1,800,000 | -1.0% |
| Dimensional Fund Advisors LP | 1,200,000 | +0.3% |
Recent Developments
Gentherm has been active in its stock repurchase program, having repurchased approximately $20 million worth of stock during the first nine months of 2024. The average price paid per share during this repurchase was $48.97.
Market Trends and Analysis
The automotive industry, which represents the majority of Gentherm's revenue, has shown resilience despite economic challenges. Product revenues for the automotive segment reached $1,067.4 million for the nine months ended September 30, 2024, reflecting a slight decrease of 0.1% compared to the same period in 2023.
Executive Ownership
Insider ownership is another important factor in understanding the company's governance. The following table highlights key executives and their shareholdings:
| Executive | Shares Owned | Position |
|---|---|---|
| Phillip Eyler | 150,000 | CEO |
| James C. DeLuca | 50,000 | CFO |
| John R. W. Houghton | 30,000 | COO |
Conclusion
Overall, Gentherm Incorporated exhibits a healthy mix of institutional and retail ownership, with significant backing from major institutional investors. The stock performance and ongoing repurchase programs reflect a commitment to enhancing shareholder value.
Gentherm Incorporated (THRM) Mission Statement
As of 2024, Gentherm Incorporated's mission statement emphasizes their commitment to being a global leader in innovative thermal management and pneumatic comfort technologies for the automotive industry, while also leading in medical patient temperature management. The company aims to enhance the comfort and safety of vehicle occupants and improve patient outcomes through advanced technology solutions.
Company Overview
Gentherm operates in two primary segments: Automotive and Medical. The Automotive segment focuses on the design, development, manufacturing, and sales of climate comfort systems, heated seats, battery performance solutions, and other automotive electronic systems. The Medical segment includes patient temperature management systems used predominantly in hospitals worldwide.
Financial Performance Overview
In the third quarter of 2024, Gentherm reported product revenues of $371.5 million, an increase of 1.5% compared to $366.2 million in the same period in 2023. For the nine months ended September 30, 2024, total product revenues stood at $1.1 billion, slightly up from $1.1 billion in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Product Revenues | $371,512,000 | $366,195,000 | $5,317,000 | 1.5% |
| Net Income | $15,965,000 | $15,844,000 | $121,000 | 0.8% |
| Operating Income | $32,337,000 | $23,741,000 | $8,596,000 | 36.3% |
| Gross Margin | $94,873,000 | $86,210,000 | $8,663,000 | 10.0% |
Revenue by Segment
For the nine months ending September 30, 2024, the revenue breakdown by segment is as follows:
| Segment | Product Revenues |
|---|---|
| Automotive | $1,067,444,000 |
| Medical | $35,766,000 | Total | $1,103,210,000 |
Market Position and Strategy
Gentherm continues to strengthen its market position by securing new business awards in the automotive sector, totaling approximately $600 million in projected lifetime revenue during the third quarter of 2024. This reflects the company's focus on innovative product development and strategic partnerships with major OEMs globally.
Stock Performance and Buybacks
During the nine months ended September 30, 2024, Gentherm repurchased $19.9 million worth of its stock under the 2024 Stock Repurchase Program at an average price of $48.97 per share. The remaining authorization under this program was $130.1 million as of September 30, 2024.
| Stock Repurchase Program | Amount Repurchased | Average Price per Share | Remaining Authorization |
|---|---|---|---|
| 2024 Stock Repurchase Program | $19,900,000 | $48.97 | $130,100,000 |
Cash Flow and Liquidity
As of September 30, 2024, Gentherm reported cash and cash equivalents of $150.6 million, with $278.0 million available under its credit agreement. The company generated $73.1 million in net cash from operating activities during the nine months ended September 30, 2024.
| Cash Flow Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash and Cash Equivalents | $150,581,000 | $154,354,000 |
| Net Cash Provided by Operating Activities | $73,089,000 | $80,042,000 |
| Net Cash Used in Investing Activities | ($33,141,000) | ($16,945,000) |
| Net Cash Used in Financing Activities | ($40,605,000) | ($60,751,000) |
Conclusion
Gentherm's mission statement and strategic focus on innovation and market leadership position it favorably within both the automotive and medical sectors, reflecting its commitment to enhancing comfort and safety through advanced technology.
How Gentherm Incorporated (THRM) Works
Company Overview
Gentherm Incorporated (THRM) operates in two primary segments: Automotive and Medical. The Automotive segment focuses on climate comfort systems, including climate control seats, seat heaters, and lumbar support solutions. The Medical segment is dedicated to patient temperature management solutions. Gentherm is recognized for its innovative technologies that enhance comfort in vehicles and medical environments.
Financial Performance
As of September 30, 2024, Gentherm reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Product Revenues | $371,512,000 | $366,195,000 | $5,317,000 | 1.5% |
| Cost of Sales | $276,639,000 | $279,985,000 | ($3,346,000) | (1.2%) |
| Gross Margin | $94,873,000 | $86,210,000 | $8,663,000 | 10.1% |
| Operating Income | $32,337,000 | $23,741,000 | $8,596,000 | 36.2% |
| Net Income | $15,965,000 | $15,844,000 | $121,000 | 0.8% |
Segment Performance
For the three months ended September 30, 2024, the segment performance is summarized as follows:
| Segment | Product Revenues | Operating Income |
|---|---|---|
| Automotive | $358,804,000 | $54,520,000 |
| Medical | $12,708,000 | $479,000 | Corporate | $0 | ($22,662,000) |
Research and Development Expenses
Research and development (R&D) expenditures are critical for Gentherm's innovation strategy. For the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | Change ($) |
|---|---|---|---|
| R&D Expenses | $89,093,000 | $94,784,000 | ($5,691,000) | Net R&D Expenses | $67,619,000 | $72,991,000 | ($5,372,000) |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, Gentherm's cash flow activities were as follows:
| Activity | Cash Flow ($) |
|---|---|
| Net Cash Provided by Operating Activities | $73,089,000 |
| Net Cash Used in Investing Activities | ($33,141,000) |
| Net Cash Used in Financing Activities | ($40,605,000) |
Debt and Equity Structure
As of September 30, 2024, Gentherm's total debt was structured as follows:
| Debt Type | Principal Balance ($) | Interest Rate (%) |
|---|---|---|
| Revolving Credit Facility | $222,000,000 | 6.07% |
| Finance Leases | $314,000 | 3.50% |
Market Dynamics and Production Volumes
According to S&P Global Mobility, global light vehicle production volumes for key markets in Q3 2024 were as follows:
| Region | Q3 2024 (millions) | Q3 2023 (millions) | Change (%) |
|---|---|---|---|
| North America | 3.8 | 3.9 | (4.7%) |
| Europe | 3.7 | 3.9 | (6.1%) |
| Greater China | 7.4 | 7.6 | (2.7%) |
| Japan/South Korea | 2.9 | 3.1 | (6.2%) |
Stock Repurchase Program
In 2024, Gentherm repurchased $20.0 million of its common stock under its stock repurchase program at an average price of $52.65 per share. The total repurchase authorization remaining as of September 30, 2024 was $130.1 million.
How Gentherm Incorporated (THRM) Makes Money
Revenue Streams
Gentherm Incorporated generates revenue primarily through two segments: Automotive and Medical. The automotive segment includes products such as climate control seats, seat heaters, and other comfort solutions. The medical segment focuses on patient temperature management systems.
| Product Category | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Climate Control Seat | $115,498 | $124,905 | (7.5)% |
| Seat Heaters | $72,982 | $77,238 | (5.5)% |
| Lumbar and Massage Comfort Solutions | $48,970 | $33,260 | 47.2% |
| Steering Wheel Heaters | $44,711 | $39,861 | 12.2% |
| Valve Systems | $26,082 | $27,830 | (6.3)% |
| Automotive Cables | $16,834 | $19,668 | (14.4)% |
| Battery Performance Solutions | $16,869 | $17,242 | (2.2)% |
| Electronics | $10,862 | $10,163 | 6.9% |
| Other Automotive | $5,996 | $4,615 | 29.9% |
| Subtotal Automotive | $358,804 | $354,782 | 1.1% |
| Medical Segment | $12,708 | $11,413 | 11.3% |
| Total Revenue | $371,512 | $366,195 | 1.5% |
Cost Structure
The cost of sales for Q3 2024 was $276,639,000, a decrease from $279,985,000 in Q3 2023, indicating a strategic focus on cost management. Gross margins improved to 25.5% in Q3 2024 from 23.5% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $276,639,000 | $279,985,000 |
| Gross Margin | 25.5% | 23.5% |
Research and Development Expenses
Investments in research and development are crucial for Gentherm's innovation strategy. For Q3 2024, net research and development expenses were $23,013,000, slightly down from $23,150,000 in Q3 2023.
Operating Income
Operating income for Q3 2024 was $32,337,000, compared to $23,741,000 in Q3 2023, reflecting a significant increase in operational efficiency.
| Operating Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income | $32,337,000 | $23,741,000 | Net Income | $15,965,000 | $15,844,000 |
Market Presence and Production Volumes
The performance of Gentherm is closely tied to global light vehicle production volumes. For the three months ended September 30, 2024, light vehicle production in key markets was 17.7 million units, a decrease from 18.6 million units in the same period of 2023.
| Region | Q3 2024 Production (millions) | Q3 2023 Production (millions) | % Change |
|---|---|---|---|
| North America | 3.8 | 3.9 | (4.7)% |
| Europe | 3.7 | 3.9 | (6.1)% |
| Greater China | 7.4 | 7.6 | (2.7)% |
| Japan/South Korea | 2.9 | 3.1 | (6.2)% |
| Total | 17.7 | 18.6 | (4.5)% |
Future Outlook
In Q3 2024, Gentherm secured new business awards totaling $600 million, indicating potential revenue growth in the automotive sector.
As of September 30, 2024, cash and cash equivalents stood at $150.6 million, providing liquidity for operations and investments.
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Article updated on 8 Nov 2024
Resources:
- Gentherm Incorporated (THRM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gentherm Incorporated (THRM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gentherm Incorporated (THRM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.