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2025 Second Quarter Results July 24, 2025 Proprietary © Gentherm
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Forward-Looking Statements Proprietary © Gentherm Except for historical information contained herein, statements in this presentation are forward-looking statements that are made by Gentherm Incorporated (the “Company”) pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements that address future operating, financial or business performance or strategies or expectations are forward-looking statements. The forward-looking statements included in this presentation are made as of the date specified herein and are based on management's reasonable expectations and beliefs. In making these statements we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, third party information and projections from sources that management believes to be reputable, as well as other factors we consider appropriate under the circumstances. Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its strategies or expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The forward- looking statements are subject to a number of significant assumptions, risks, uncertainties (some of which are out of our control) and other factors that may cause actual results or performance to differ materially from that expressed or implied by such statements. For a discussion of these risks and uncertainties and other factors, please see the Company’s earnings release (dated July 24, 2025), most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission, including “Risk Factors.” In addition, the business outlook discussed in this presentation does not include the potential impact of any business combinations, acquisitions, divestitures, strategic investments and other significant transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results. Moreover, we operate in a very competitive and rapidly changing environment and new risks emerge from time to time.
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$620M 12.2% 3 Achieved results in line with expectations, while executing on strategic priorities Proprietary © Gentherm Second Quarter Highlights $32M $375M Automotive New Business Awards Adjusted EBITDA Margin Product Revenues YTD Operating Cash Flow → Awards include full comfort solutions portfolio on Ford F-Series, and continued Puls.A adoption → Automotive Climate and Comfort Solutions growth over market of 10 bps with strong performance in North America / Europe (+8%), weighed down by Asia ( -12%) → Improved Adjusted EBITDA margin by over 100 basis points sequentially vs. Q1 → Repurchased $10M of company shares
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4 Strategic Actions Progress Proprietary © Gentherm - Captured awards in commercial vehicles and powersports driven by an expanded focus on adjacent markets - Executed strategic partnership agreement to expand European distribution for Medical business Drive Strategic Profitable Growth - Ongoing deployment of standardized operating system - Conducted 5 manufacturing site visits / operating reviews to drive ops excellence and continuous improvement actions Build Operational Excellence - Strategic footprint realignment remains on track - Progressed M&A funnel build -out aligned with strategic priorities and core technology platforms Achieve Superior Financial Performance June site visit and operations review in Ukraine
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$620M in awards F-Series Industry leading products and OEM partnership resulted in winning full comfort solutions portfolio on one of the highest volume platforms globally Innovative Puls.A solution continues increasing in adoption, driving incremental content and growth Key awards improving mix with Chinese Domestic OEMs 9 program launches Ram 1500Xiaomi YU7 Thermal control unitThermal solutions 5Proprietary © Gentherm Second Quarter Automotive Highlights Awards Launches
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$376 $375 2Q24 2Q25 $401 $416 2Q24 2Q25 $49.9 $45.9 2Q24 2Q25 Revenue Adjusted EBITDA Liquidity $375M -1.6% ex-FX $45.9M 12.2% margin $416M +$15 million vs. PY • Record Quarterly Revenue for Automotive Climate and Comfort Solutions, up 2.5% ex -FX vs. PY • Planned exits in Other Automotive drove ($7M) of expected declines • Higher material costs, including unfavorable product mix, as well as higher labor costs and expenses related to our footprint realignment • 2Q direct tariff impact of ~15 bps • Net leverage remains at ~0.5x • $10M in share repurchases • Strong balance sheet enables flexibility to invest and return capital Proprietary © Gentherm 6 Second Quarter Financial Review 13.3% 12.2% Figures are presented in $ millions and % of revenue, except where noted
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Proprietary © Gentherm 7 2025 Guidance ❖ Guidance based on tariffs currently in effect as of today, our current forecast of customer orders and expectations of near-term conditions, flat to slightly decreasing light vehicle production in our relevant markets for full year 2025 versus 2024, and a EUR to USD exchange rate of $1.13/Euro. Does not contemplate the impact of recently enacted U.S. and Germa n tax reform, which is currently under evaluation. ❖ Due to the inherent difficulty of forecasting the timing and amount of certain items that would impact net income margin, such as foreign currency gains and losses, we are unable to reasonably estimate net income margin, the GAAP financial measure most directly comparable to Adjusted EBITDA margin. Accordingly, we are unable to provide a reconciliation of Adjusted EBITDA margin to net income margin with respect to the guidance provided. Full Year Guidance Range Narrowed Previous (April 24, 2025) Revised (July 24, 2025) Comments Product Revenues $1.4B – $1.5B $1.43B – $1.5B • Customer production schedules remain stable • Trending higher in-line with improved market sentiment Adjusted EBITDA Margin 11.5% – 13% 11.7% – 12.5% • 11.7% YTD with expected second half improvement • Full year net tariff impact of ~15-20 bps Adjusted Effective Tax Rate 26% – 29% No change • Recent tax reform under evaluation Capital Expenditures $70M – $80M $55M – $65M • Increased focus on driving higher capital equipment utilization
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8 Accelerating value-creation actions to deliver enhanced shareholder returns Continuous improvement mindset to drive margin expansion and solid cash flow conversion Strong financial position with ability to efficiently deploy capital and drive shareholder value Innovative leader uniquely positioned for profitable growth driven by scalable technology platforms and broad market applications Why Gentherm? Proprietary © Gentherm
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Appendix Proprietary © Gentherm
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Use of Non-GAAP Financial Measures Proprietary © Gentherm In addition to the results reported herein in accordance with GAAP, the Company has provided here or may discuss on the related conference call adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”); Adjusted EBITDA margin; adjusted earnings per share (“Adjusted earnings per share” or “Adjusted EPS”); free cash flow; net capital expenditures (“net CAPEX”); Net Debt; liquidity; net leverage ratio (“net leverage”); revenue, segment revenue and product revenue excluding foreign currency translation and other specified gains and losses; and adjusted operating expenses, each a non-GAAP financial measure. See the Company’s earnings release dated July 24, 2025, for the definitions of each non-GAAP financial measure, information regarding why the Company utilizes such non-GAAP measures as supplemental measures of performance or liquidity, and their limitations, and for certain reconciliations of GAAP to non- GAAP historical financial measures.
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(Dollars in thousands, except per share data) 2025 2024 2025 2024 Product Revenues $ 375,090 $ 375,683 $ 728,944 $ 731,698 Automotive 363,852 364,002 705,726 708,640 Medical 11,238 11,681 23,218 23,058 Gross Margin 89,762 96,701 176,227 185,454 Gross Margin % 23.9% 25.7% 24.2% 25.3% Operating Expenses 65,753 63,713 135,157 134,417 Operating Income 24,009 32,988 41,070 51,037 Adjusted EBITDA 45,897 49,873 85,238 93,415 Adjusted EBITDA Margin 12.2% 13.3% 11.7% 12.8% Diluted EPS - As Adjusted $ 0.54 $ 0.66 $ 1.05 $ 1.28 Six Months Ended June 30 Proprietary © Gentherm 11 Select Income Statement Data Three Months Ended June 30
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Proprietary © Gentherm 12 Select Balance Sheet Data June 30, 2025 December 31, 2024 Cash and Cash Equivalents $ 128,297 $ 134,134 Total Assets 1,361,401 1,247,556 Debt 209,146 220,201 Current 146 137 Non-Current 209,000 220,064 Revolving LOC Availability 287,970 280,000 Total Liquidity 416,267 414,134 (Dollars in thousands)
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(Dollars in thousands) 2025 2024 2025 2024 Net Income $ 477 $ 18,876 $ 349 $ 33,661 Add Back: Depreciation and Amortization 13,058 12,811 25,846 26,391 Income Tax Expense 2,057 9,544 4,269 13,086 Interest Expense, net 4,043 4,002 7,598 7,246 Adjustments: Non-Cash Stock-Based Compensation 3,992 3,610 6,589 7,407 Restructuring Expenses, net 2,108 2,442 6,622 9,680 Unrealized Currency Loss (Gain) 18,877 (497) 28,484 (2,353) Loss on Sale of Land and Building, net – – 2,196 – Leadership Transition Expenses 1,260 – 2,158 – Non-Automotive Electronics Inventory Benefit – (712) – (1,772) Other 25 (203) 1,127 69 Adjusted EBITDA 45,897 49,873 85,238 93,415 Product Revenues 375,090 375,683 728,944 731,698 Net Income Margin 0.1% 5.0% 0.0% 4.6% Adjusted EBITDA Margin 12.2% 13.3% 11.7% 12.8% Six Months Ended June 30 Proprietary © Gentherm 13 Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended June 30
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Proprietary © Gentherm 14 2025 2024 2025 2024 Diluted EPS - As Reported $ 0.02 $ 0.60 $ 0.01 $ 1.06 Amortization of acquisition related intangibles 0.05 0.05 0.10 0.10 Restructuring Expenses, net 0.07 0.08 0.22 0.31 Unrealized Currency Loss (Gain) 0.62 (0.02) 0.93 (0.07) Loss on Sale of Land and Building, net – – 0.07 – Leadership Transition Expenses 0.04 – 0.07 – Non-Automotive Electronics Inventory Benefit – (0.02) – (0.06) Other – (0.01) 0.04 – Tax Effect of Above (0.25) (0.01) (0.38) (0.06) Rounding (0.01) (0.01) (0.01) – Diluted EPS - As Adjusted 0.54 0.66 1.05 1.28 Six Months Ended June 30 Reconciliation of Adjusted EPS Three Months Ended June 30