The following is a summary of the Gentherm Incorporated (THRM) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 delivered record quarterly revenue of $376 million, directly linked to higher volumes and successful new product integrations.
Automotive revenues were $364 million, up approximately 1% compared to last year, driven by lumbar and massage gains.
Adjusted EBITDA in Q2 was $50 million, up nearly 18% from the previous year, with an EBITDA margin rate improvement to 13.3%.Adjusted diluted earnings per share were $0.66, compared to $0.58 in the second quarter of last year.
Business Progress:
Launched automotive solutions on 22 different vehicles across 11 OEMs, including high-profile brands like Ford, General Motors, and Toyota.
Introduced the CCS technology to new models like Toyota Camry and secured multiple new business awards including a notable award with Hyundai for a Genesis SUV incorporating Pulse A massage technology.
Strengthened pneumatic product line through strategic acquisitions and subsequent successful integrations, leading to significant new business awards.
Medical business grew revenue by 9% ex-FX, driven by increased sales of Blanketrol products and expanded hospital customer base in China.
Opportunities:
Strong demand for Gentherm's advanced technologies such as Climate Sense and Well Sense, which are poised to cater to the software-defined vehicles of the future.
Expansion into integrated product solutions combining multiple functions, such as the integration of foam, seat heat, and seat belt reminder, indicating potential for larger roles in customer supply chains.
Risks:
The global automotive production environment remains volatile, with reductions in orders from key customers and potential inventory adjustments affecting production schedules and new vehicle launches.
More details: Gentherm IR
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