In This Article:
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Automotive New Business Awards: $640 million in Q4; $2.4 billion for the full year 2024.
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Adjusted EBITDA: $183 million for the full year 2024; $41.4 million in Q4, representing 11.7% of sales.
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Revenue: Decreased 3.8% in Q4 compared to the same period last year; full-year revenue decreased 0.9%.
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Net Leverage Ratio: Approximately 0.5 turns at year-end.
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Cash Flow from Operating Activities: $110 million for the year.
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Capital Expenditures: $65 million for the year.
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Share Repurchases: $50 million returned to shareholders in 2024.
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Adjusted Diluted Earnings Per Share: $0.29 in Q4 compared to $0.90 in the same quarter last year.
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Medical Segment Revenue: Increased 9% ex-FX in Q4 compared to the same period last year.
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2025 Revenue Outlook: Expected to be between $1.4 billion and $1.5 billion.
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2025 Adjusted EBITDA Margin Outlook: Expected to be in the range of 12% to 13%.
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Capital Expenditures for 2025: Expected to be in the range of $70 to $80 million.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Gentherm Inc (NASDAQ:THRM) has secured significant new business awards, including a Puls.A Award with BMW and a ComfortScale award with General Motors, indicating strong market acceptance of its technologies.
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The company has a strong technology foundation with scalable platforms in thermal management, air moving devices, pneumatic solutions, and valve systems, which are being leveraged across automotive and medical industries.
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Gentherm Inc (NASDAQ:THRM) is implementing strategic footprint optimization plans to reduce its production footprint by approximately 30%, aiming to improve margins and cash flow generation.
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The company has maintained a strong balance sheet with a net leverage ratio of 0.5 turns and ample liquidity, supporting future growth plans.
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Gentherm Inc (NASDAQ:THRM) is focusing on operational improvements through business process standardization, which is expected to increase margins and drive efficiency across the organization.
Negative Points
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Fourth quarter revenues decreased by 3.8% compared to the same period last year, with foreign exchange adjusted revenue decreasing by 3.3%.
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Adjusted EBITDA margin declined to 11.7% from 13.4% in the fourth quarter of the previous year, impacted by product mix, higher freight costs, and costs related to new plant openings.
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The company faces near-term headwinds due to footprint optimization actions, which are expected to result in one-time costs and production disruptions.
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Gentherm Inc (NASDAQ:THRM) anticipates a challenging market environment in 2025, with expected light vehicle production in key markets projected to decrease by roughly 1%.
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The company is experiencing revenue declines in certain segments, such as cables, BPS, and electronics, which are offsetting growth in other areas.