Gentherm Reports 2024 Fourth Quarter and Full Year Results

Achieved 61% Year Over Year Net Income Growth; Record Annual Adjusted EBITDA of $183MSecured Annual Automotive New Business Awards of $2.4 BillionEstablishes 2025 Guidance NOVI, Mich., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Gentherm (NASDAQ:THRM), a global market leader of innovative thermal management and pneumatic comfort technologies, today announced its financial results for the fourth quarter and full year ended December 31, 2024. Bill Presley, the Company's President and CEO, said, “In 2024, the Company leveraged its culture of innovation to launch new products, record automotive new business awards well over $2 billion for the 2nd consecutive year, and achieved record Adjusted EBITDA. Gentherm has a strong foundation, unique capabilities and product offerings, as well as sustainable competitive advantages. As we look to the future, we will leverage these capabilities, scale our technologies, and optimize our operations to drive shareholder value.” Fourth Quarter Highlights Product revenues of $352.9 million decreased 3.8% from $366.9 million in the fourth quarter of 2023. Excluding the impact of foreign currency translation, product revenues decreased 3.3% year over yearAutomotive revenues decreased 4.3% year over year; excluding the impact of foreign currency translation, automotive revenues decreased 3.7% year over yearGAAP diluted earnings per share was $0.49 as compared with $0.56 for the prior-year periodAdjusted diluted earnings per share was $0.29. Adjusted diluted earnings per share in the prior-year period was $0.90Secured automotive new business awards totaling $640 million in the quarter Full Year 2024 Highlights Product revenues of $1,456.1 million decreased 0.9% from $1,469.1 million in 2023. Excluding the impact of foreign currency translation, product revenues decreased 0.4% year over yearAutomotive revenues decreased 1.2% year over year; excluding the impact of foreign currency translation, automotive revenues decreased 0.7% year over yearGAAP diluted earnings per share was $2.06 as compared with $1.22 for the prior yearAdjusted diluted earnings per share was $2.33. Adjusted diluted earnings per share in the prior year was $2.59Secured automotive new business awards totaling $2.4 billionMaintained net leverage ~0.5x while investing in operations, and share repurchasesRepurchased $50.2 million of the Company’s common stock 2024 Fourth Quarter Financial ReviewProduct revenues for the fourth quarter of 2024 decreased by $14.0 million, or 3.8%, as compared with the prior-year period. Excluding the impact of foreign currency translation, product revenues decreased 3.3% year over year. Automotive revenues decreased 4.3% year over year. Adjusting for foreign currency translation, phasing out the non-automotive and contract manufacturing electronics business as well as one-time benefits from recoveries in the prior year, Automotive revenues decreased 1.8% year over year. Revenues from Automotive Climate and Comfort Solutions increased 1.7% in the fourth quarter compared to the prior-year period. According to S&P Global Mobility’s mid-February report, actual light vehicle production increased by 0.4% in the fourth quarter when compared with the same quarter of 2023 in the Company’s key markets of North America, Europe, China, Japan, and South Korea. Gentherm Medical revenue increased 8.4% year over year. Adjusting for the impact of foreign currency translation, Medical revenues increased 8.9%. Gross margin rate decreased to 24.4% in the current-year period, as compared with 26.2% in the prior-year period. The decrease from the prior-year period was driven by product mix, higher freight costs, the impact of foreign exchange, and the costs related to our new plants opening in Monterrey, Mexico and Tangier, Morocco. Net research and development expenses of $21.1 million in the quarter decreased slightly compared to the prior-year period primarily as a result of lower third-party spend. Selling, general and administrative expenses of $38.6 million in the quarter decreased $3.3 million versus the prior-year period. The year-over-year decrease was primarily driven by lower compensation expenses, partially offset by leadership transition expenses in 2024. Restructuring expenses, net of $0.7 million in the current-year period, decreased $0.6 million, versus the prior-year period primarily as a result of higher costs associated with footprint optimization in the prior-year. The Company recorded Adjusted EBITDA of $41.4 million in the quarter compared with $49.0 million in the prior-year period, a decrease of $7.6 million or 15.6%. Income tax expense in the quarter was $20.8 million, as compared with income tax gain of $0.9 million in the prior-year period. The year-over-year increase was primarily driven by one-time tax settlements relating to prior period tax audits. GAAP diluted earnings per share for the quarter was $0.49 compared with $0.56 for the prior-year period. Adjusted diluted earnings per share for the quarter was $0.29 compared with $0.90 for the prior-year period. 2024 Full Year Financial Review For full year 2024, the Company reported product revenues of $1,456.1 million, a 0.9% decrease over the prior year. Excluding the impact of foreign currency translation, product revenues decreased 0.4% year over year. In the Automotive segment, 2024 full-year revenue was $1,406.3 million, a 1.2% decrease compared to the prior year. Revenue increases in the Lumbar and Massage Comfort Solutions and Steering Wheel Heater product categories were offset by decreases in the Climate Control Seat and Seat Heater categories and automotive revenue not related to Automotive Climate and Comfort Solutions. Adjusting for foreign currency translation Automotive revenue decreased 0.7% year over year. Adjusting for foreign currency translation, phasing out the non-automotive and contract manufacturing electronics business as well as one-time benefits from recoveries in the prior year, Automotive revenue increased 0.8% year over year. According to S&P Global Mobility’s mid-February 2025 report, actual light vehicle production decreased 1.0% for the full year 2024 compared to full year 2023 in the Company’s key markets of North America, Europe, China, Japan and South Korea. Medical segment revenue was $49.8 million for full year 2024, an 8.1% increase compared to the prior year. Adjusting for foreign currency translation, Medical revenues increased 8.2%. Gross margin rate was 25.2% in 2024, a 130 basis point increase from 2023, primarily as a result of strong material performance, productivity, and the impact of our previously announced exit of the non-automotive electronics business, partially offset by annual price reductions, wage inflation, and the costs related to our new plants opening in Monterrey, Mexico and Tangier, Morocco. Net research and development expenses of $88.7 million in 2024 decreased 6.0% primarily as a result of lower project spend and a reduction in resources allocated to the battery performance solutions product category. Selling, general and administrative expenses of $155.1 million in 2024 decreased $0.5 million, or 0.3%, versus the prior year period. The year over year decrease was primarily driven by acquisition and integration expenses in the prior year and lower compensation expenses, partially offset by leadership transition costs and increased investment in information technology in 2024. The Company incurred $13.1 million in restructuring expenses, net in 2024, compared to $4.7 million in the prior year period primarily as a result of manufacturing footprint optimization and reductions to the global salaried workforce. The Company recorded impairment of goodwill charges of $19.5 million in 2023 related to the Medical segment. The Company recorded Adjusted EBITDA of $182.9 million in 2024 compared with $180.6 million in the prior year, an increase of $2.3 million or 1.3%. Income tax expense in 2024 was $37.3 million, as compared with $14.6 million in the prior year. The effective tax rate was 36.5% for 2024. This rate differed from the Federal statutory rate of 21%, primarily due to unfavorable geographic mix of earnings as well as the impact of one-time tax settlements relating to prior period tax audits. Excluding the impact of prior period tax audits, the effective tax rate was 26.9%. GAAP diluted earnings per share for full year 2024 was $2.06 as compared with $1.22 for the prior year. Adjusted diluted earnings per share for full year 2024 was $2.33 as compared with $2.59 for the prior year. The Company provides various non-GAAP financial measures in this release. See “Use of Non-GAAP Measures” below for additional information, including definitions, usefulness for investors and limitations, as well as reconciliations below to the most directly comparable GAAP financial measures. Guidance The Company is providing the following guidance for full year 2025: Product revenues between $1.4 billion and $1.5 billionAdjusted EBITDA between 12% and 13% of product revenuesFull year effective tax rate between 26% and 29%Capital expenditures between $70 million and $80 million Guidance assumptions: Based on the current forecast of customer orders, our expectations of near-term conditions, and light vehicle production in our key markets decreasing at low single digit rate for full year 2025 versus 2024, and a EUR to USD exchange rate of $1.03/Euro. These assumptions do not include any impact of potential changes to tariffs. Conference CallAs previously announced, Gentherm will conduct a conference call today at 8:00 am Eastern Time to review these results. The dial-in number for the call is 1-877-407-4018 (callers in the U.S.) or +1-201-689-8471 (callers outside this U.S.). The passcode for the live call is 13751539. A live webcast and one-year archived replay of the call can be accessed on the Events page of the Investor section of Gentherm's website at www.gentherm.com. A telephonic replay will be available approximately two hours after the call until 11:59 pm Eastern Time on March 5, 2025. The replay can be accessed by dialing 1-844-512-2921 (callers in the U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode for the replay is 13751539. Investor Contact Gregory Blanchetteinvestors@gentherm.com  248.308.1702 Media Contact Melissa Fischer media@gentherm.com  248.289.9702 About GenthermGentherm (NASDAQ: THRM) is a global market leader of innovative thermal management and pneumatic comfort technologies. Automotive products include variable temperature Climate Control Seats®, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems, lumbar and massage comfort solutions, valve system technologies, and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has more than 14,000 employees in facilities in the United States, Germany, China, Czech Republic, Hungary, Japan, Malta, Mexico, Morocco, North Macedonia, South Korea, United Kingdom, Ukraine, and Vietnam. For more information, go to www.gentherm.com. Forward-Looking Statements Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Gentherm Incorporated's goals, beliefs, plans and expectations about its prospects for the future and other future events. The forward-looking statements included in this release are made as of the date hereof or 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, as well as other factors we consider appropriate under the circumstances. Such statements are subject to a number of important assumptions, significant risks and uncertainties (some of which are beyond our control) and other factors that may cause actual results or performance to differ materially from that described in or indicated by the forward-looking statements, including but not limited to: macroeconomic, geopolitical and similar global factors in the cyclical Automotive industry;increasing U.S. and global competition, including with non-traditional entrants;our ability to effectively manage new product launches and research and development, and the market acceptance of such products and technologies;the evolution and recent challenges of the automotive industry towards electric vehicles, autonomous vehicles and mobility on demand services, and related consumer behaviors and preferences;our ability to convert automotive new business awards into product revenues;the recent supply-constrained environment, and inflationary and other cost pressures;the production levels of our major customers and OEMs in our key markets and sudden fluctuations in such production levels;our business in China, which is subject to unique operational, competitive, regulatory and economic risks;the impact of our global operations, including our global supply chain, operations within Ukraine, and foreign currency and exchange risk;the impact of global economic and trade policies, including increases in duties, tariffs and taxation on the import or export of our products related to U.S. trade disputes;our ability to attract and retain highly skilled employees and wage inflation;a tightening labor market, labor shortages or work stoppages impacting us, our customers or our suppliers, such as recent labor strikes among certain OEMs and suppliers;our achievement of product cost reductions to offset customer-imposed price reductions or other pricing pressures;our product quality and safety and impact of product safety recalls and alleged defects in products;our ability to execute efforts to optimize our global supply chain and manufacturing footprint, including opening new facilities and transferring production;our ability to integrate our recent acquisitions and realize synergies, as well as to consummate additional strategic acquisitions, investments and exits, and achieve planned benefits;any security breaches and other disruptions to our information technology networks and systems, as well as privacy, data security and data protection risks, including risks associated with use of artificial intelligence capabilities in our business operations;any loss or insolvency of our key customers and OEMs, or key suppliers;our ability to project future sales volume based on third-party information, based on which we manage our business;the protection of our intellectual property in certain jurisdictions;our compliance with global anti-corruption laws and regulations;legal and regulatory proceedings and claims involving us or one of our major customers;the extensive regulation of our patient temperature management business;risks associated with our manufacturing processes;the effects of climate change and catastrophic events, as well as regulatory and stakeholder-imposed requirements to address climate change and other sustainability issues;our product quality and safety;our borrowing availability under our revolving credit facility, as well ability to access the capital markets, to support our planned growth; andour indebtedness and compliance with our debt covenants. The foregoing risks should be read in conjunction with the Company's reports filed with or furnished to the Securities and Exchange Commission (the “SEC”), including “Risk Factors,” in its most recent Annual Report on Form 10-K and subsequent SEC filings, for a discussion of these and other risks and uncertainties. In addition, with reasonable frequency, we have entered into business combinations, acquisitions, divestitures, strategic investments and other significant transactions. Such forward-looking statements do not include the potential impact of any such 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. 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 expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Use of Non-GAAP Financial Measures In addition to the results reported in accordance with GAAP throughout this release, the Company has provided here or elsewhere information regarding: 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 Debt, net leverage ratio (“net leverage”), revenue, segment revenue and product revenue excluding foreign currency translation and other specified gains and losses; Automotive Climate and Comfort Solutions revenues; and adjusted operating expenses, each a non-GAAP financial measure. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, non-cash stock based compensation expenses, restructuring expenses, net, unrealized currency gain or loss and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by product revenues. The Company defines Adjusted EPS as earnings adjusted by restructuring expenses, net, unrealized currency gain or loss and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines Free Cash Flow as Net cash provided by operating activities less Purchases of property and equipment. The Company defines Net Debt as the principal amount of all Consolidated Funded Indebtedness (as defined in the Credit Agreement) less cash and cash equivalents. The Company defines net leverage as Net Debt divided by Adjusted EBITDA for the trailing four fiscal quarters. The Company defines revenue, segment revenue or product revenue excluding foreign currency translation and other specified gains and losses as such revenue, excluding the estimated effects of foreign currency exchange on revenue by translating actual revenue using the prior period foreign currency exchange rates and excluding the other items specified in the reconciliation tables herein. The Company defines Automotive Climate and Comfort Solutions revenues as Automotive revenue excluding specified product revenues and the impact of non-automotive electronics and contract manufacturing electronics revenues. The Company defines adjusted operating expenses as operating expenses excluding related non-cash stock based compensation, restructuring expenses, net, and other losses not reflective of the Company’s ongoing operations. The Company’s reconciliations are included in this release or can be found in the supplemental materials furnished as Exhibit 99.2 to the Company’s Form 8-K dated February 19, 2025. In evaluating its business, the Company considers and uses Free Cash Flow and Net Debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management provides such non-GAAP financial measures so that investors will have the same financial information that management uses with the belief that it will assist investors in properly assessing the Company's performance on a period-over-period basis by excluding matters not indicative of the Company’s ongoing operating or liquidity results and therefore enhance the comparability of the Company's results and provide additional information for analyzing trends in the business. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur revenues, expenses, and cash and non-cash obligations that are the same as or similar to some of the adjustments in our presentation of non-GAAP financial measures. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There also can be no assurance that we will not modify the presentation of our non-GAAP financial measures in the future, and any such modification may be material. Other companies in our industry may define and calculate these non-GAAP financial measures differently than we do and those calculations may not be comparable to our metrics. These non-GAAP measures have limitations as analytical tools, and when assessing the Company's operating performance or liquidity, investors should not consider these non-GAAP measures in isolation, or as a substitute for net income (loss), revenue or other consolidated income statement or cash flow statement data prepared in accordance with GAAP. Non-GAAP measures referenced in this release and other public communications may include estimates of future Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS. The Company has not reconciled the non-GAAP forward-looking guidance included in this release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to taxes and non-recurring items, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. GENTHERM INCORPORATEDCONSOLIDATED CONDENSED STATEMENTS OF INCOME(Dollars in thousands, except per share data) (Unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Product revenues $352,914 $366,933 $1,456,124 $1,469,076 Cost of sales 266,810 270,637 1,089,693 1,117,452 Gross margin 86,104 96,296 366,431 351,624 Operating expenses: Net research and development expenses 21,078 21,367 88,697 94,358 Selling, general and administrative expenses 38,646 41,899 155,108 155,579 Restructuring expenses, net 768 1,327 13,110 4,739 Impairment of intangible assets and property and equipment 1,971 — 2,501 — Impairment of goodwill — — — 19,509 Total operating expenses 62,463 64,593 259,416 274,185 Operating income 23,641 31,703 107,015 77,439 Interest expense, net (3,344) (5,197) (15,300) (14,641)Foreign currency gain (loss) 15,812 (6,302) 9,599 (5,918)Other (loss) income (1) (2,984) 951 (1,926)Earnings before income tax 36,108 17,220 102,265 54,954 Income tax expense (gain) 20,787 (867) 37,318 14,611 Net income $15,321 $18,087 $64,947 $40,343 Basic earnings per share $0.50 $0.57 $2.08 $1.23 Diluted earnings per share $0.49 $0.56 $2.06 $1.22 Weighted average number of shares – basic 30,912 31,974 31,293 32,778 Weighted average number of shares – diluted 31,054 32,200 31,476 33,067 GENTHERM INCORPORATEDREVENUE BY PRODUCT CATEGORY AND RECONCILIATION OF FOREIGN CURRENCY TRANSLATION IMPACT(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 % Change 2024 2023 % Change Climate Control Seat $116,031 $121,797 (4.7)% $468,820 $482,665 (2.9)%Seat Heaters 70,752 77,456 (8.7)% 297,866 308,588 (3.5)%Lumbar and Massage Comfort Solutions 45,494 35,321 28.8% 178,584 144,923 23.2%Steering Wheel Heaters 42,824 38,777 10.4% 169,763 153,943 10.3%Valve Systems 23,082 23,746 (2.8)% 105,056 106,262 (1.1)%Automotive Cables 15,906 19,862 (19.9)% 73,091 79,993 (8.6)%Battery Performance Solutions 11,643 18,346 (36.5)% 58,183 75,484 (22.9)%Electronics 6,847 9,931 (31.1)% 33,065 40,387 (18.1)%Other Automotive 6,255 8,709 (28.2)% 21,850 30,707 (28.8)%Subtotal Automotive segment 338,834 353,945 (4.3)% 1,406,278 1,422,952 (1.2)%Medical segment 14,080 12,988 8.4% 49,846 46,124 8.1%Total Company $352,914 $366,933 (3.8)% $1,456,124 $1,469,076 (0.9)% Foreign currency translation impact(a) (1,995) — (7,129) — Total Company, excluding foreign currency translation impact $354,909 $366,933 (3.3)% $1,463,253 $1,469,076 (0.4)% (a) Foreign currency translation impacts for the Automotive segment and Medical segment were $(1,931) and $(64), respectively, for the three months ended December 31, 2024. Foreign currency translation impacts for the Automotive segment and Medical segment were $(7,060) and $(70), respectively, for the twelve months ended December 31, 2024. GENTHERM INCORPORATEDRECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN(Dollars in thousands)(Unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Net income $15,321 $18,087 $64,947 $40,343 Add back: Depreciation and amortization 12,587 12,062 51,329 50,416 Income tax expense (benefit) (a) 20,787 (867) 37,318 14,611 Interest expense, net (b) 3,344 5,197 15,300 14,641 Adjustments: Non-cash stock based compensation 98 3,164 10,432 11,756 Restructuring expenses, net 768 1,327 13,110 4,739 Unrealized currency (gain) loss (16,970) 4,898 (10,719) 9,125 Leadership transition expenses 3,802 — 3,802 — Impairment of intangible assets and property and equipment 1,971 — 2,501 — Acquisition and integration expenses — 578 — 5,308 Impairment of goodwill — — — 19,509 Non-automotive electronics inventory (benefit) charge (103) 575 (4,554) 6,064 Other (c) (231) 4,001 (574) 4,072 Adjusted EBITDA $41,374 $49,022 $182,892 $180,584 Product revenues $352,914 $366,933 $1,456,124 $1,469,076 Net income margin 4.3% 4.9% 4.5% 2.7%Adjusted EBITDA margin 11.7% 13.4% 12.6% 12.3% (a) Includes $2,423 of deferred income tax benefit associated with the goodwill impairment of the Medical reporting unit for the twelve months ended December 31, 2023. (b) Includes $186 and $1,343 of interest expense for the three months and twelve months ended December 31, 2024, related to mark-to-market adjustment of our floating-to-fixed interest rate swap agreement with a notional amount of $100,000. (c) Includes $2,900 of non-cash impairment charges related to our Carrar Ltd. Investment for the three and twelve months ended December 31, 2023. GENTHERM INCORPORATEDRECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE(Dollars in thousands, except per share data)(Unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Net income $15,321 $18,087 $64,947 $40,343 Non-cash purchase accounting impact 1,572 1,604 6,369 7,397 Restructuring expenses, net 768 1,327 13,110 4,739 Unrealized currency (gain) loss (16,970) 4,898 (10,719) 9,125 Leadership transition expenses 3,802 — 3,802 — Impairment of intangible assets and property and equipment 1,971 — 2,501 — Acquisition and integration expenses — 578 — 5,308 Impairment of goodwill — — — 19,509 Non-automotive electronics inventory (benefit) charge (103) 575 (4,554) 6,064 Other (a) (231) 4,001 (574) 4,072 Tax effect of above 2,964 (2,179) (1,582) (10,814)Adjusted net income $9,094 $28,891 $73,300 $85,743 Weighted average shares outstanding (in thousands): Basic 30,912 31,974 31,293 32,778 Diluted 31,054 32,200 31,476 33,067 Earnings per share, as reported: Basic $0.50 $0.57 $2.08 $1.23 Diluted $0.49 $0.56 $2.06 $1.22 Adjusted earnings per share: Basic $0.29 $0.90 $2.34 $2.62 Diluted $0.29 $0.90 $2.33 $2.59 (a) Includes $2,900 of non-cash impairment charges related to our Carrar Ltd. Investment for the three and twelve months ended December 31, 2023. GENTHERM INCORPORATEDCONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) December 31, 2024 2023 ASSETS Current Assets: Cash and cash equivalents $134,134 $149,673 Accounts receivable, net 258,112 253,579 Inventory, net 227,356 205,892 Other current assets 64,413 78,420 Total current assets 684,015 687,564 Property and equipment, net 252,970 245,234 Goodwill 99,603 104,073 Other intangible assets, net 57,251 66,482 Operating lease right-of-use assets 43,954 27,358 Deferred income tax assets 75,041 81,930 Other non-current assets 34,722 21,730 Total assets $1,247,556 $1,234,371 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $226,815 $215,827 Current lease liabilities 7,517 7,700 Current maturities of long-term debt 137 621 Other current liabilities 105,824 100,805 Total current liabilities 340,293 324,953 Long-term debt, less current maturities 220,064 222,217 Non-current lease liabilities 37,052 16,175 Pension benefit obligation 4,017 3,209 Other non-current liabilities 29,183 23,095 Total liabilities $630,609 $589,649 Shareholders’ equity: Common Stock: No par value; 55,000,000 shares authorized 30,788,639 and 31,542,001 issued and outstanding at December 31, 2024 and December 31, 2023, respectively 2,049 50,503 Paid-in capital 4,290 — Accumulated other comprehensive loss (85,193) (30,160)Accumulated earnings 695,801 624,379 Total shareholders’ equity 616,947 644,722 Total liabilities and shareholders’ equity $1,247,556 $1,234,371 GENTHERM INCORPORATED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited) Year Ended December 31, 2024 2023 Operating Activities: Net income $64,947 $40,343 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 52,975 50,948 Deferred income taxes 10,580 (13,072)Stock based compensation 10,432 11,627 Provisions for inventory 6,437 6,867 Impairment of intangible assets and property and equipment 2,501 — Loss on disposition of property and equipment (1,603) 721 Impairment of goodwill — 19,509 Other (1,156) 2,920 Changes in assets and liabilities: Accounts receivable, net (12,077) (4,195)Inventory (34,195) 6,907 Other assets (44,696) (26,179)Accounts payable 16,222 31,029 Other liabilities 39,279 (8,160)Net cash provided by operating activities 109,646 119,265 Investing Activities: Purchases of property and equipment (73,314) (37,602)Proceeds from the sale of property and equipment 7,862 391 Proceeds from deferred purchase price of factored receivables 12,876 13,903 Cost of technology investments (955) (815)Net cash used in investing activities (53,531) (24,123)Financing Activities: Borrowings on debt 68,000 60,000 Repayments of debt (70,615) (72,280)Proceeds from the exercise of Common Stock options 5,791 263 Taxes withheld and paid on employee's share-based payment awards (3,296) (2,940)Cash paid for the repurchase of Common Stock (51,585) (91,094)Net cash used in financing activities (51,705) (106,051)Foreign currency effect (19,949) 6,691 Net decrease in cash and cash equivalents (15,539) (4,218)Cash and cash equivalents at beginning of period 149,673 153,891 Cash and cash equivalents at end of period $134,134 $149,673 Supplemental disclosure of cash flow information: Cash paid for taxes $20,837 $23,273 Cash paid for interest 13,007 13,242 GENTHERM INCORPORATEDOTHER NON-GAAP RECONCILIATIONS(Dollars in thousands)(Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Automotive revenues $338,834 $353,945 $1,406,278 $1,422,952 Less: Non-automotive electronics revenues and contract manufacturing electronics 2,755 5,729 15,719 27,866 Less: One-time benefits from recoveries and retrofits — 3,877 — 7,974 Adjusted Automotive revenues 336,079 344,339 1,390,559 1,387,112 Foreign currency translation impact (1,934) — (6,982) — Adjusted Automotive revenues, excluding foreign currency translation impact $338,013 $344,339 $1,397,541 $1,387,112 Year over Year % change (1.8)% 0.8% Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Automotive revenues $338,834 $353,945 $1,406,278 $1,422,952 Less: Valve Systems 23,082 23,746 105,056 106,262 Less: Automotive Cables 15,906 19,862 73,091 79,993 Less: Battery Performance Solutions 11,643 18,346 58,183 75,484 Less: Non-automotive and contract manufacturing electronics 2,755 5,729 15,719 27,866 Automotive Climate and Comfort Solutions revenues 285,448 286,262 1,154,229 1,133,347 Less: One-time benefits from recoveries and retrofits — 3,877 — 7,974 Adjusted Automotive Climate and Comfort Solutions revenues 285,448 282,385 1,154,229 1,125,373 Foreign currency translation impact (1,630) — (6,337) — Adjusted Automotive Climate and Comfort Solutions revenues, excluding foreign currency translation impact $287,078 $282,385 $1,160,566 $1,125,373 Year over Year % change 1.7% 3.1% Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Total operating expenses $62,463 $64,593 $259,416 $274,185 Restructuring expense, net (768) (1,327) (13,110) (4,739)Non-cash stock based compensation (192) (3,164) (9,909) (11,382)Leadership transition expenses (3,802) — (3,802) — Impairment of intangible assets and property and equipment (1,971) — (2,501) — Impairment of goodwill — — — (19,509)Acquisition and Integration expenses — (578) — (5,308)Other 231 (1,139) (990) (1,729)Adjusted operating expenses $55,961 $58,385 $229,104 $231,518

Gentherm Reports 2024 Fourth Quarter and Full Year Results

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