Gentherm Inc., a leader in thermal management and pneumatic comfort technologies, reported its second-quarter results for 2025, revealing a revenue of $375 million. The company achieved a quarterly record for its Automotive Climate and Comfort Solutions segment. However, the net income for the quarter saw a significant decline, registering at $0.5 million compared to $18.9 million in the previous year, primarily due to net unrealized foreign currency losses of $18.9 million. Adjusted EBITDA also decreased to $45.9 million, or 12.2% of revenue, from $49.9 million, or 13.3% of revenue, in the prior year, attributed mainly to a lower gross margin. The gross margin itself decreased by 180 basis points year over year, from 25.7% to 23.9%, affected by higher material and labor costs. In terms of guidance, Gentherm has narrowed its full-year product revenue forecast to a range of $1.43 billion to $1.5 billion. The adjusted EBITDA margin rate is expected to be between 11.7% and 12.5%. Capital expenditures have been revised downwards to a range of $55 million to $65 million. The company has also reported securing over $1 billion in automotive new business awards year to date, highlighting its strong performance and innovation in the market despite challenges.
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