Gentherm Inc

F:QA4A

Raise: Gentherm raised full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted free cash flow after a strong first half and better-than-expected second-quarter performance.

Auto strength: Second-quarter revenue hit a record $416 million, helped by automotive volumes and climate and comfort products that kept growing faster than light-vehicle production.

Awards: The company booked about $690 million of Automotive New Business Awards in the quarter and more than $1 billion year to date, with management saying the pipeline still looks healthy.

Margin pressure: Adjusted EBITDA margin was 11.7%, held back by inflation recovery timing, footprint-related inventory reductions, and warranty accruals, though management said those warranty costs should not be a run-rate issue.

Strategic push: Gentherm highlighted expansion beyond auto, including new home-and-office customer wins, FDA clearance for ThermAffyx, and the $34 million acquisition of Innovative Medical Equipment.

Modine deal: Management said the Modine Performance Technologies combination is progressing well, expects closing early in the fourth quarter, and sees the merged company reaching over $3.5 billion of revenue by 2030.