Gentherm Inc (THRM) Stock Price & How to Invest

Gentherm Incorporated, based in Novi, Michigan, designs and makes thermal and pneumatic comfort products. Its core business is automotive climate and comfort: Climate Control Seats (heated, ventilated and cooled seats) generated about $218 million of the company's record ~$416 million of product revenue in Q2 2026, alongside steering wheel heaters, battery thermal products, lumbar and massage systems, and a small medical patient temperature management unit (~$11 million a quarter). On October 1, 2026 it completed a Reverse Morris Trust combination with Modine Manufacturing's Performance Technologies business (about $1.1 billion of revenue), which adds engine and battery cooling, radiators and coolers for commercial vehicles, off-highway equipment and power generation. Former Modine holders own roughly 43.6% of the combined company.

The investment picture is now about scale and mix. Standalone, Gentherm guided 2026 product revenue to $1.55 to $1.65 billion and adjusted EBITDA to $185 to $200 million, raised in July after it outgrew light vehicle production by about 14 points and booked ~$690 million of new automotive awards in one quarter. Management's deal case pointed to ~$2.6 billion of pro forma revenue, ~$322 million of adjusted EBITDA including ~$25 million of cost synergies, and net leverage near 1.0x. At roughly $30 a share and about 54 to 55 million shares after closing, the market value sits near $1.6 billion, so the stock is priced at a low multiple of combined EBITDA. Whether that discount closes depends on integration, synergy delivery, and the auto and heavy-truck cycles.

Gentherm began in 1991 in California as Amerigon, moved its base to Michigan in 2005, bought a majority stake in German seat-heater maker W.E.T. in 2011 and took the Gentherm name in 2012. It moved its headquarters from Northville to a new building in Novi, Michigan in early 2025. Full-year 2025 product revenue was about $1.50 billion, up 2.9%, split among Climate Control Seats ($793 million), Lumbar and Massage Comfort Solutions ($212 million, up 18.8%), Climate Control Interiors such as steering wheel heat ($198 million), Valve Systems ($97 million) and Medical ($50 million). GAAP net income fell to $18.3 million from $64.9 million in 2024. Before the merger the company had about 14,200 employees, the largest group (about 5,500) in Mexico. Bill Presley, formerly vice chairman and COO of Aptiv, has been CEO since January 1, 2025.

Integration is the largest new risk: combining two engineering and manufacturing organizations across many countries can disrupt customers and delay synergies. The legacy business is tied to light vehicle production, which management assumes will fall at a low single digit rate in 2026, and the acquired business adds exposure to the cyclical commercial truck and off-highway markets. Tariffs and trade policy affect a footprint spread across Mexico, Europe and Asia, and gross margin slipped to about 23.2% in Q2 2026 from 23.9% a year earlier. Customer concentration among large automakers and competition from bigger seat and thermal suppliers can pressure pricing. Customer concentration is high: Lear and Adient, which build complete seats, bought $234 million and $164 million of product in 2025 (16% and 11% of product revenue), and products ending up in General Motors and Volkswagen vehicles each represented 12%. About 36% of the workforce belongs to unions or works councils, and roughly 1,300 employees were based in Ukraine at the end of 2025. Medical carries goodwill whose estimated fair value exceeded carrying value by only about 25% at year-end 2025, a margin the company flagged as at risk in future impairment tests. Cash generation was soft in Q2 2026, with operating cash flow of $2.3 million versus $31.7 million a year earlier because of restructuring and merger costs, and Performance Technologies' gross margin fell 390 basis points to 16.5% in Modine's March quarter on material costs and tariffs.

8 analysts publish price targets on THRM, averaging $48.00 against a $31.30 price as of October 2026, or +53.4%. The published targets run from $34.00 to $59.00, a moderate spread, and the ratings split 6 buy, 3 hold, 0 sell. Over the last six months there have been 7 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full THRM forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Gentherm Inc. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Modine Performance Technologies integration. The October 2026 combination roughly doubles revenue and shifts the mix toward commercial vehicle, off-highway and power generation cooling. The most optimistic published target, $59.00, assumes this works close to its best case.

The case against. Integration is the largest new risk: combining two engineering and manufacturing organizations across many countries can disrupt customers and delay synergies. The most pessimistic target, $34.00, is roughly what THRM is worth if this bites instead.

Read the full bull and bear case on THRM, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Gentherm Inc's investor relations page or your broker.

• Revenue (TTM, standalone): ~$1.55B
• 2026 revenue guidance (standalone): ~$1.55B to $1.65B
• Pro forma combined revenue: ~$2.6B
• Q2 2026 adjusted EPS: ~$0.75
• Share price: ~$30
• Market cap (post-closing): ~$1.6B

Standalone figures exclude Modine Performance Technologies, which closed on October 1, 2026, so trailing ratios will shift sharply once combined results are reported. Against management's ~$322 million pro forma adjusted EBITDA (including synergies), the market value implies a low single digit to mid single digit EBITDA multiple before debt, a discount that reflects auto and truck cyclicality and integration uncertainty. On the balance sheet, standalone Gentherm ended June 2026 with $273 million of debt, $213 million of cash, net leverage of about 0.3x and $502 million of liquidity. At closing, the spun-off business borrowed $250 million under a delayed-draw term loan administered by Bank of America, priced at SOFR plus 1.125% to 2.0% depending on leverage, which now sits inside the combined company, and the special dividend paid out about $63.5 million. Share count rose to roughly 54.4 million after 23.7 million new shares went to Modine holders.

Other names that sit close to THRM: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get THRM exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so THRM sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where THRM fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

THRM is a value-priced bet on whether Gentherm can turn a seat-comfort auto supplier plus Modine's commercial vehicle and power generation cooling business into one higher-margin thermal platform.

Whether THRM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is THRM a buy or a sell?, and where the stock could go from here in the THRM stock forecast.

For income investors, whether THRM pays a dividend and how the payout looks is covered in does THRM pay a dividend? And to weigh THRM against a peer, read the full side-by-side comparisons: THRM vs BWA and THRM vs DAN.