Gross margins have compressed from 26.2% in 2023Q4 to 24.7% in 2026Q1, reflecting structural challenges in maintaining pricing power against automotive OEM requirements.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.53B | 1.49B | 1.46B | 1.47B | 1.2B | 1.05B | 913.1M | 971.68M | 1.04B | 985.68M | 917.6M | 856.45M | 811.3M | 662.08M | 554.98M | 369.59M | 112.4M | 60.92M | 63.61M | 63.63M | 50.61M | 35.74M | 32.71M | 29.04M | 15.27M | 6.45M | 6.89M | 784K | 770K | 1.31M | 7.4M |
| Revenue Growth % | 5.54% | 2.64% | -0.88% | 21.95% | 15.15% | 14.57% | -6.03% | -6.41% | 5.33% | 7.42% | 7.14% | 5.56% | 22.54% | 19.3% | 50.16% | 228.81% | 84.49% | -4.23% | -0.03% | 25.73% | 41.62% | 9.25% | 12.63% | 90.18% | 136.87% | -6.38% | 778.32% | 1.82% | -41.13% | -82.32% | -5.13% |
| Cost of Goods Sold | 1.17B | 1.14B | 1.09B | 1.12B | 931.01M | 742.52M | 644.99M | 683.35M | 743.65M | 674.57M | 622.56M | 580.07M | 569.62M | 487.32M | 413.05M | 274.84M | 79.66M | 45.17M | 45.09M | 42.3M | 34.11M | 25.07M | 24.21M | 23M | 11.98M | 5.45M | 6.27M | 2.47M | 1.41M | 2.61M | 11.3M |
| COGS % of Revenue | - | 76.47% | 74.84% | 76.06% | 77.28% | 70.98% | 70.64% | 70.33% | 71.62% | 68.44% | 67.85% | 67.73% | 70.21% | 73.6% | 74.43% | 74.36% | 70.87% | 74.13% | 70.88% | 66.48% | 67.4% | 70.16% | 74.01% | 79.2% | 78.47% | 84.54% | 91.11% | 314.92% | 183.38% | 199.62% | 152.7% |
| Gross Profit | 362.44M | 351.67M | 366.43M | 351.62M | 273.65M | 303.63M | 268.1M | 288.33M | 294.61M | 311.11M | 295.04M | 276.38M | 241.68M | 174.76M | 141.93M | 94.75M | 32.74M | 15.76M | 18.53M | 21.33M | 16.5M | 10.66M | 8.5M | 6.04M | 3.29M | 997K | 612K | -1.69M | -642K | -1.3M | -3.9M |
| Gross Margin % | 23.62% | 23.53% | 25.16% | 23.94% | 22.72% | 29.02% | 29.36% | 29.67% | 28.38% | 31.56% | 32.15% | 32.27% | 29.79% | 26.4% | 25.57% | 25.64% | 29.13% | 25.87% | 29.12% | 33.52% | 32.6% | 29.84% | 25.99% | 20.8% | 21.53% | 15.46% | 8.89% | -214.92% | -83.38% | -99.62% | -52.7% |
| Gross Profit Growth % | - | -4.03% | 4.21% | 28.49% | -9.87% | 13.25% | -7.02% | -2.13% | -5.3% | 5.45% | 6.75% | 14.36% | 38.29% | 23.14% | 49.8% | 189.4% | 107.75% | -14.94% | -13.13% | 29.26% | 54.71% | 25.46% | 40.74% | 83.7% | 229.79% | 62.91% | 136.32% | -162.46% | 50.73% | 66.59% | -262.5% |
| Operating Expenses | 290.16M | 273.62M | 259.42M | 274.19M | 225.34M | 188.63M | 178.89M | 204.07M | 232.07M | 222.1M | 192.92M | 155.06M | 143.25M | 124.38M | 105.12M | 70.55M | 20.61M | 14.85M | 13.97M | 13.62M | 10.99M | 8.1M | 7.71M | 7.59M | 9.46M | 8.38M | 10.19M | 5.96M | 7.3M | 6.54M | 5.9M |
| OpEx % of Revenue | - | 18.31% | 17.82% | 18.66% | 18.71% | 18.03% | 19.59% | 21% | 22.35% | 22.53% | 21.02% | 18.11% | 17.66% | 18.79% | 18.94% | 19.09% | 18.33% | 24.38% | 21.97% | 21.41% | 21.71% | 22.65% | 23.59% | 26.15% | 61.97% | 130.05% | 147.94% | 760.08% | 948.05% | 500.23% | 79.73% |
| Selling, General & Admin | 186.87M | 170.04M | 155.11M | 155.58M | 132.69M | 109.55M | 105.04M | 118.68M | 137.4M | 139.62M | 113.25M | 95.46M | 84.65M | 72.09M | 64.32M | 42.11M | 10.96M | 8.86M | 7.19M | 8.54M | 7.62M | 5.46M | 5.49M | 5.11M | 5.55M | 4.55M | 6.09M | 3.48M | 4.1M | 4.47M | 3.4M |
| SG&A % of Revenue | - | 11.38% | 10.65% | 10.59% | 11.02% | 10.47% | 11.5% | 12.21% | 13.23% | 14.16% | 12.34% | 11.15% | 10.43% | 10.89% | 11.59% | 11.39% | 9.75% | 14.54% | 11.3% | 13.42% | 15.06% | 15.28% | 16.78% | 17.6% | 36.36% | 70.54% | 88.41% | 444.01% | 532.21% | 341.82% | 45.95% |
| Research & Development | 101.53M | 107.09M | 117.83M | 125.69M | 85.72M | 75.21M | 68.04M | 91.03M | 98.66M | 94.52M | 79.58M | 69.21M | 66.41M | 52.2M | 43.19M | 28.44M | 9.65M | 5.99M | 6.78M | 5.08M | 3.37M | 2.63M | 2.23M | 2.49M | 3.91M | 3.84M | 4.1M | 2.48M | 3.2M | 2.07M | 2.1M |
| R&D % of Revenue | - | 7.17% | 8.09% | 8.56% | 7.12% | 7.19% | 7.45% | 9.37% | 9.5% | 9.59% | 8.67% | 8.08% | 8.19% | 7.88% | 7.78% | 7.7% | 8.59% | 9.84% | 10.66% | 7.99% | 6.65% | 7.37% | 6.81% | 8.56% | 25.6% | 59.5% | 59.53% | 316.07% | 415.84% | 158.41% | 28.38% |
| Other Operating Expenses | 0 | -3.52M | -13.52M | -7.09M | 6.93M | 3.86M | 5.8M | -5.64M | -3.99M | -12.04M | 83K | -9.61M | -7.81M | 90K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | 0 | 0 | 0 | 0 | 0 | 0 | 400K |
| Operating Income | 72.28M | 78.05M | 107.02M | 77.44M | 48.31M | 115.01M | 89.22M | 84.26M | 72.79M | 97.1M | 106.12M | 121.32M | 98.43M | 50.38M | 36.66M | 18.88M | 12.13M | 908K | 4.55M | 7.71M | 5.51M | 2.57M | 786K | -1.55M | -6.17M | -7.39M | -9.57M | -7.64M | -7.94M | -7.85M | -9.8M |
| Operating Margin % | 4.71% | 5.22% | 7.35% | 5.27% | 4.01% | 10.99% | 9.77% | 8.67% | 7.01% | 9.85% | 11.56% | 14.17% | 12.13% | 7.61% | 6.6% | 5.11% | 10.79% | 1.49% | 7.16% | 12.11% | 10.89% | 7.19% | 2.4% | -5.35% | -40.44% | -114.58% | -139.05% | -975% | -1031.43% | -599.85% | -132.43% |
| Operating Income Growth % | - | -27.07% | 38.19% | 60.31% | -58% | 28.91% | 5.88% | 15.76% | -25.04% | -8.5% | -12.53% | 23.25% | 95.37% | 37.45% | 94.14% | 55.64% | 1236.01% | -80.06% | -40.9% | 39.76% | 114.51% | 226.97% | 150.58% | 74.83% | 16.41% | 22.85% | -25.26% | 3.75% | -1.22% | 19.94% | -188.24% |
| EBITDA | 126.83M | 131.31M | 159.99M | 128.39M | 92.7M | 153.79M | 130.33M | 128.51M | 123.43M | 142.07M | 143.88M | 152.35M | 133.46M | 81.63M | 67.28M | 42.23M | 13.5M | 2.35M | 5.93M | 8.36M | 6M | 3.01M | 1.45M | -1.03M | -5.47M | -6.58M | -8.96M | -7.3M | -7.36M | -7.68M | -9.4M |
| EBITDA Margin % | 8.27% | 8.79% | 10.99% | 8.74% | 7.7% | 14.7% | 14.27% | 13.23% | 11.89% | 14.41% | 15.68% | 17.79% | 16.45% | 12.33% | 12.12% | 11.43% | 12.01% | 3.85% | 9.32% | 13.14% | 11.86% | 8.42% | 4.42% | -3.55% | -35.8% | -102.14% | -130.06% | -931.12% | -955.84% | -587.46% | -127.03% |
| EBITDA Growth % | -19.79% | -17.92% | 24.62% | 38.5% | -39.72% | 18% | 1.42% | 4.12% | -13.12% | -1.26% | -5.56% | 14.15% | 63.49% | 21.33% | 59.31% | 212.86% | 475.4% | -60.42% | -29.09% | 39.27% | 99.4% | 108.02% | 240.35% | 81.14% | 16.98% | 26.47% | -22.68% | 0.82% | 4.22% | 18.26% | -203.23% |
| D&A (Non-Cash Add-back) | 54.55M | 53.26M | 52.98M | 50.95M | 44.39M | 38.78M | 41.11M | 44.25M | 50.64M | 44.97M | 37.76M | 31.03M | 35.03M | 31.25M | 30.63M | 23.35M | 1.37M | 1.44M | 1.37M | 654K | 489K | 440K | 661K | 523K | 708K | 802K | 619K | 344K | 582K | 162K | 400K |
| EBIT | 75.14M | 49.65M | 122.63M | 101.69M | 55.23M | 118.86M | 95.02M | 97.18M | 87.56M | 97.1M | 112.86M | 121.32M | 99.51M | 52.8M | 36.66M | 21.53M | 12.28M | 908K | 4.55M | 7.71M | 5.51M | 2.57M | 786K | -1.55M | -6.17M | -7.54M | -9.57M | -7.64M | -7.94M | -7.9M | -9.8M |
| Net Interest Income | -12.89M | -13.81M | -15.3M | -14.64M | -4.29M | -2.76M | -4.56M | -4.76M | -4.94M | -4.88M | -3.26M | -2.61M | -3.26M | -3.54M | -4.14M | -3.51M | 25K | 10K | 837K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25K | 10K | 837K | 961K | 523K | 283K | 56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 12.89M | 13.81M | 15.3M | 14.64M | 4.29M | 2.76M | 4.56M | 4.76M | 4.94M | 4.88M | 3.26M | 2.61M | 3.26M | 3.54M | 4.14M | 3.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -30.91M | -42.22M | -4.75M | -22.48M | -9.93M | -1.15M | -7.66M | -25.11M | -14.67M | -27.84M | 4.44M | 7.62M | -4.21M | -4.15M | -3.98M | -1.94M | 232K | -299K | 948K | 1.14M | 694K | 484K | 273K | 139K | -138K | 0 | 0 | -36K | 0 | 2.42M | 0 |
| Pretax Income | 41.37M | 35.84M | 102.27M | 54.95M | 38.38M | 113.85M | 81.56M | 59.15M | 58.12M | 69.25M | 110.56M | 128.94M | 94.22M | 46.23M | 32.67M | 16.94M | 12.28M | 609K | 5.5M | 8.85M | 6.21M | 3.05M | 1.06M | -1.42M | -6.31M | 0 | 0 | -7.68M | 0 | -5.48M | 0 |
| Pretax Margin % | 2.7% | 2.4% | 7.02% | 3.74% | 3.19% | 10.88% | 8.93% | 6.09% | 5.6% | 7.03% | 12.05% | 15.05% | 11.61% | 6.98% | 5.89% | 4.58% | 10.92% | 1% | 8.65% | 13.9% | 12.26% | 8.55% | 3.24% | -4.87% | -41.29% | - | - | -979.59% | - | -419.19% | - |
| Income Tax | 18.73M | 17.55M | 37.32M | 14.61M | 13.94M | 20.42M | 21.87M | 21.64M | 16.22M | 34.03M | 33.97M | 33.55M | 24.1M | 11.1M | 8.35M | 5.05M | 2.92M | 325K | 1.94M | 1.47M | 2.69M | -13.49M | 0 | 0 | 0 | 304K | 1.7M | -69K | -238K | -2.43M | 200K |
| Effective Tax Rate % | 45.29% | 48.97% | 36.49% | 26.59% | 36.32% | 17.93% | 26.81% | 36.59% | 27.91% | 49.13% | 30.72% | 26.02% | 25.58% | 24% | 25.56% | 29.83% | 23.79% | 53.37% | 35.22% | 16.62% | 43.39% | -441.88% | 0% | 0% | 0% | - | - | 0.9% | - | 44.3% | - |
| Net Income | 22.63M | 18.29M | 64.95M | 40.34M | 24.44M | 93.43M | 59.69M | 37.51M | 41.9M | 35.23M | 76.6M | 95.39M | 70.12M | 33.82M | 17.87M | 10.34M | 9.95M | 723K | 3.56M | 7.38M | 3.51M | 16.55M | 1.06M | -1.42M | -6.31M | -7.69M | -11.27M | -7.58M | -7.7M | -5.42M | -10M |
| Net Margin % | 1.47% | 1.22% | 4.46% | 2.75% | 2.03% | 8.93% | 6.54% | 3.86% | 4.04% | 3.57% | 8.35% | 11.14% | 8.64% | 5.11% | 3.22% | 2.8% | 8.85% | 1.19% | 5.6% | 11.59% | 6.94% | 46.31% | 3.24% | -4.87% | -41.29% | -119.3% | -163.72% | -966.2% | -1000.52% | -414.14% | -135.14% |
| Net Income Growth % | -54.77% | -71.85% | 60.99% | 65.06% | -73.84% | 56.53% | 59.15% | -10.48% | 18.94% | -54.01% | -19.7% | 36.04% | 107.33% | 89.23% | 72.78% | 3.96% | 1276.21% | -79.71% | -51.67% | 109.87% | -78.77% | 1462.7% | 174.84% | 77.56% | 18.01% | 31.78% | -48.83% | 1.67% | -42.22% | 45.83% | -212.5% |
| Net Income (Continuing) | 22.63M | 18.29M | 64.95M | 40.34M | 24.44M | 93.43M | 59.69M | 48.87M | 41.9M | 35.23M | 76.6M | 95.39M | 70.12M | 35.13M | 24.32M | 11.89M | 9.36M | 284K | 3.56M | 7.38M | 3.51M | 16.55M | 1.06M | -1.42M | -6.31M | -7.69M | -11.98M | -7.58M | -7.7M | -5.1M | -10M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 53.35M | 44.19M | 0 | -439K | 0 | 0 | 0 | 0 | 0 | 19K | 2K | 44K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.74 | 0.60 | 2.06 | 1.22 | 0.73 | 2.79 | 1.81 | 1.47 | 1.16 | 0.96 | 2.09 | 2.62 | 1.95 | 0.94 | 0.39 | 0.09 | 0.44 | 0.03 | 0.16 | 0.33 | 0.16 | 0.76 | 0.05 | -0.12 | -0.64 | -1.66 | -3.43 | -3.97 | -20.17 | -16.18 | -12.29 |
| EPS Growth % | -53.5% | -70.87% | 68.85% | 67.12% | -73.84% | 54.14% | 23.13% | 26.72% | 20.83% | -54.07% | -20.23% | 34.36% | 107.45% | 141.03% | 333.33% | -79.55% | 1366.67% | -81.25% | -51.52% | 106.25% | -78.95% | 1420% | 141.67% | 81.25% | 61.45% | 51.6% | 13.6% | 80.32% | -24.66% | -31.65% | -211.14% |
| EPS (Basic) | - | 0.60 | 2.08 | 1.23 | 0.74 | 2.82 | 1.83 | 1.48 | 1.17 | 0.96 | 2.10 | 2.65 | 1.98 | 0.96 | 0.39 | 0.09 | 0.46 | 0.03 | 0.16 | 0.34 | 0.17 | 0.79 | 0.06 | -0.12 | -0.64 | -1.66 | -3.43 | -3.97 | -20.17 | -16.18 | -12.29 |
| Diluted Shares Outstanding | 30.76M | 30.94M | 31.48M | 33.07M | 33.5M | 33.51M | 33.03M | 33.3M | 36.18M | 36.81M | 36.6M | 36.48M | 36.05M | 34.12M | 28.86M | 23.45M | 22.5M | 21.77M | 22.37M | 22.63M | 20.7M | 16.12M | 14.74M | 11.47M | 9.86M | 4.63M | 3.28M | 1.91M | 382K | 334.88K | 814K |
| Basic Shares Outstanding | 30.52M | 30.48M | 31.29M | 32.78M | 33.13M | 33.09M | 32.67M | 33.12M | 35.92M | 36.72M | 36.45M | 36.03M | 35.41M | 33.65M | 28.35M | 22.61M | 21.72M | 21.4M | 21.98M | 21.64M | 19.88M | 15.5M | 13.51M | 11.47M | 9.86M | 4.63M | 3.28M | 1.91M | 382K | 334.88K | 814K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 0.99% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
OEM pricing and margin compression
According to the provided quarterly data, Gentherm's revenue growth has fluctuated significantly, reaching 11.3% in 2026Q1 after several periods of stagnation or contraction, suggesting that the company's top-line performance remains highly sensitive to the timing of automotive platform launches and broader light vehicle production cycles.
The recent acceleration in revenue appears to be a departure from the previous multi-quarter trend of flat or negative growth. Investors should monitor whether this uptick represents a sustainable shift in product adoption or merely a temporary alignment of OEM production schedules.
As reported in financial statements, Gentherm's gross margin has compressed from a peak of 26.2% in 2023Q4 to 24.7% in 2026Q1, indicating that the company faces persistent challenges in maintaining pricing power against the backdrop of industry-standard annual price reductions required by major automotive OEMs.
The inability to consistently hold gross margins above the 25% threshold suggests that the company's specialized thermal technology may be facing increased commoditization or cost-push inflation. This trend warrants further investigation into whether internal productivity gains are sufficient to offset the ongoing pricing pressure from automotive customers.
Based on the income statement figures, operating income has failed to scale proportionally with revenue, as evidenced by the 2026Q1 operating margin of 2.9% compared to the 8.7% margin observed in 2024Q3, suggesting that SG&A and R&D costs are currently outpacing the company's ability to drive operational efficiency.
The recent decline in operating margins implies that the company is struggling to achieve the necessary scale to leverage its fixed cost base effectively. This may indicate that investments in new thermal management technologies are currently weighing on profitability without providing an immediate corresponding boost to operating income.
As indicated by the quarterly data, net income has experienced extreme volatility, ranging from a loss of $128,000 in 2025Q1 to a high of $18.9 million in 2024Q2, which suggests that non-operating items or lumpy contract accounting may be distorting the underlying quality of reported earnings.
The significant variance in net income relative to operating income suggests that investors should focus on core operational metrics rather than bottom-line results. The inconsistency in earnings quality appears to be a recurring theme that complicates the assessment of the company's true profitability potential.
Based on the provided income statement, the persistent decline in net margins to 1.1% in 2026Q1 highlights a significant risk, as the company appears unable to protect its bottom line from rising operating expenses and the inherent cyclicality of the automotive parts manufacturing sector.
Short-term observers may argue that the company's thin net margins leave little room for error in the event of a broader automotive downturn. The reliance on high-volume OEM contracts, combined with rising R&D requirements, suggests that the company's profitability may remain under pressure for the foreseeable future.
Quick answers to the most common questions about buying THRM stock.
For fiscal year 2025, Gentherm Incorporated (THRM) reported total revenue of $1.49B. This represents a 20097.5% increase compared to $7.4M in 1996.
Gentherm Incorporated (THRM) is profitable, generating $18.3M in net income for the fiscal year ending 2025 with a net profit margin of 1.2%.
Gentherm Incorporated (THRM) reported an operating income of $78.1M, resulting in an operating profit margin of 5.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Gentherm Incorporated (THRM) generated $351.7M in gross profit for the year, representing a gross profit margin of 23.5%. This demonstrates the company's core pricing power and production efficiency.