Gentherm (THRM) investor relations material

Strategic direction and market expansion

• Announced a strategic combination with Modine Performance Technologies to accelerate entry into commercial, off-highway, and power generation sectors, creating a $2.6 billion company and shifting revenue mix toward non-light vehicle markets.

• Focus on diversifying beyond automotive, targeting commercial vehicles, off-road, home, office, and medical markets.

• Ongoing M&A strategy and organic investments to enhance core thermal and flow management capabilities and enter adjacent markets.

• Cross-selling, product integration, and geographic expansion, especially in India, are key drivers for synergy and growth.

• Board authorized a new $400M stock repurchase program, tripling the previous authorization, to be in-market upon transaction closing.

Financial and operational outlook

• Projected $3.5B+ in combined revenue and $525M+ in EBITDA by 2030, with $25M in near-term cost synergies and $100M+ in commercial opportunities.

• Raised 2026 guidance, expecting $1.55B–$1.65B in product revenues and $185M–$200M in adjusted EBITDA, with margin expansion and strong free cash flow.

• Revenue growth expected to accelerate into 2027, driven by automotive launches, adjacent market expansion, and new medical products.

• Forecasted $1B+ in adjusted unlevered free cash flow generation through 2030, with a post-closing net leverage ratio of ~1.0x.

• 2025 financials highlighted $1.5B in revenue, 11.7% adjusted EBITDA margin, and a strong global presence across 13 countries.

Operational improvements and margin expansion

• Two-year global footprint consolidation plan to maximize revenue and operating income per square foot.

• Implementation of KPI-driven operating system to improve asset utilization, labor efficiency, and inventory management.

• Targeting 300 basis points of margin expansion over five years, driven by consolidation, pricing, and volume leverage.

• Margin expansion supported by footprint transitions, improved program margins, and a favorable business mix.

• Combined company aims for EBITDA margins above 15% by decade's end.