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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