# Gentherm Stock: It CRUSHED Earnings and Popped 26% — So Why We Say HOLD (THRM Q2 2026)

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/gentherm-stock-it-crushed-earnings-and-popped-26-so-why-we-say-hold-thrm-q2-2026
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/gentherm-stock-it-crushed-earnings-and-popped-26-so-why-we-say-hold-thrm-q2-2026.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-07-24T04:16:17+00:00
Episode link: https://chargedalpha.podbean.com/e/gentherm-stock-it-crushed-earnings-and-popped-26-%e2%80%94-so-why-we-say-hold-thrm-q2-2026/
Audio file: https://mcdn.podbean.com/mf/web/lhv0ro7dpefclt11/audio_r.mp3
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JSON: https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/gentherm-stock-it-crushed-earnings-and-popped-26-so-why-we-say-hold-thrm-q2-2026
Duration seconds: 843

## Resource

Gentherm (THRM) Q2 2026 — Gentherm (THRM), the world leader in automotive climate-controlled seats, reported a record Q2 2026: revenue rose 11% to a record $416.2M (+9.5% ex-FX), and ADJUSTED diluted EPS of $0.75 crushed the ~$0.56 estimate (+39% YoY). New automotive business awards hit $690M, management RAISED full-year guidance (revenue $1.55–1.65B, adj EBITDA $185–200M, adj FCF $85–100M), and the board authorized a new $400M buyback. The stock popped ~26% to ~$46, a fresh 52-week high. But under the beat: the $0.75 is ADJUSTED — GAAP EPS was $0.14, GAAP operating income FELL 55% to $10.7M, adjusted EBITDA margin compressed to 11.7% (−50 bps), and GAAP free cash flow was NEGATIVE (−$1.2M) as ~$13M of Modine merger costs and rising warranty accruals bit. Our owner-earnings DCF lands fair value near $42 — below the ~$46 price and below every Street target ($34–$44, avg ~$39). Our call: HOLD, 3/5. Gentherm (NASDAQ: THRM) is the quiet, under-covered world leader in automotive thermal comfort — climate-controlled seats, heated steering wheels, and the fast-growing lumbar-and-massage systems inside a huge share of the world's cars. Q2 2026 looked like a blowout: record revenue of $416.2M (+11%, +9.5% ex-FX), ADJUSTED diluted EPS of $0.75 vs the ~$0.56 estimate (+39% YoY), $690M of new automotive business awards, a raised full-year guide (revenue $1.55–1.65B, adj EBITDA $185–200M, adj FCF $85–100M), and a new $400M buyback. The stock gapped ~26% in a single day to ~$46, a fresh 52-week high. The engine of the growth is real and defensible: content-per-vehicle. Gentherm's core automotive climate revenue grew ~14 points FASTER than light-vehicle production, led by lumbar & massage (+38%) and China. So the debate isn't the top line — it's the fine print. That $0.75 is adju…

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