Gentherm Incorporated : 1Q 2025 Gentherm Incorporated Earnings Conference PresentationPDF

2025 First Quarter Results

April 24, 2025

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Operating Environment Update

Executing with agility in rapidly changing environment

Tariffs

Global Revenue Distribution and Manufacturing Footprint

• of revenue by region (2024 Revenue ~$1.5B)
  Countries with Gentherm manufacturing

40%	33%	15%	12%
North America	Europe	China	Rest of Asia

• Primarily in-region, for-region; Mexico for N. America (majority USMCA compliant)
• Working closely with customer / suppliers to mitigate direct tariff impact

Industry Volume

2025 Full Year Light Vehicle Production¹

Millions of units			Change
74.2	72.9	(2%)
11.9	11.8
30.6	30.5
16.6	16.6
15.1	14.0	(7%)
			February		April
			North America		Europe
			Greater China		Japan/S. Korea

• Limited OEM demand schedule changes to date
• Monitoring demand / inventory closely

Commercial and operational actions in place to minimize impact to Gentherm

¹S&P Global Mobility Mid-April and Mid-February Report

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Industry Leading Technologies with Broad Market Application

Scalable Technology Platforms

THERMAL	AIR MOVING	PNEUMATIC	VALVE
MANAGEMENT	DEVICES	SOLUTIONS	SYSTEMS

Way Forward

•	CCI Portfolio		•	CCS® Portfolio
•	Blanketrol® III System	•	WarmAir®
•	Astopad®		•	CCS® Neck Conditioner
	Industry:	Automotive		Medical

•	Puls.A	Pulsating Massage	•	Fluid Management
•	PCS	Lumbar Support	•	Controlled Air Flow
•	PCS	Massage		•	Special Solutions
	Modality:	Resistive	Liquid	Air

Customer centric, systems-oriented approach	Leverage technology portability to drive scale
Maintain industry leading, core technology platforms	Business process standardization

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Accelerating Growth in Medical through Enhanced PLM

Objective: Grow Medical addressable market by leveraging Gentherm core technology platforms

Current State

Existing Medical Products

Gentherm Core Technology Platforms

PLM Approach

Engaged Auto	"Read Across"
review of
Engineering
product
Team
portfolio

Leveraged	Identified
potential new
automotive
products for
components
medical market

Early Progress

Completed TWOproof

of concepts with

potential to greatly expand addressable market

Validated market

opportunity through

multiple voice of

customer meetings with

strong feedback

Scaling core technology across multiple end markets to drive profitable growth

* PLM = Product Lifecycle Management

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Strategic Actions Progress

Framework

Drive Strategic

Profitable Growth

Achieve

SuperiorBuild

FinancialOperational

PerformanceExcellence

Initial focus areas

• Accelerating Product Lifecycle Management
• Identified TAMs; Met with partners in new end markets and industries; Working channels
• Standardized factory floor KPIs
• Implementing Business Process Standardization (early focus on Production Control Standards)
• Accelerating strategic footprint plans
• Kicked off cash flow enhancement projects

Accelerating strategic actions to drive improved financial performance

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First Quarter Highlights

Driving Strategic

Profitable Growth

$400 million

Automotive New Business Awards led by Conquest Awards From Volvo and Japanese OEM

+300 bps

Automotive Climate and Comfort Solutions growth over market

Building Operational Excellence

11.1% Adj. EBITDA

Continued focus on driving operational performance and cost discipline in a challenging operating environment

17 Launches

Strong execution of new program launches across 11 OEMs driving future revenue growth

Achieving Superior Financial Performance

$15 million

Capital deployed to support growth and strategic footprint investments

~0.5x Net Leverage

Balance sheet remains strong providing security and flexibility with capital allocation priorities

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Automotive Highlights

Awards

$400M in awards

Milestone win

with first Lumbar and Massage Comfort Solution awarded by Japanese OEM

First commercial award

with Volvo for Climate Controlled Seats

Continued momentum

With Chinese Domestic OEMs

Launches

17 program launches

Lincoln Navigator

Audi Q5

Full suite of Gentherm products

Thermal and pneumatic solutions

BYD Xia

Global EV

Thermal solutions

Thermal and pneumatic solutions

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First Quarter Financial Review

Revenue

$354M

+1% ex-FX

$356	$354
1Q24	1Q25

• Continued strong growth of lumbar and massage comfort solutions
• Sustained momentum in medical with +6% growth ex-FX

Adjusted EBITDA

$39.3M

11.1% margin

$43.5	$39.3
12.2%	11.1%
1Q24	1Q25

• Strong net material performance offset by higher freight, product mix, and footprint realignment costs
• Driving to improve margins despite near-term headwinds

Liquidity

~$400M

Flat vs. PY

$403	$398
1Q24	1Q25

• Liquidity and net leverage of ~0.5x remained flat year over year
• Maintaining a strong balance sheet is a key priority

Figures are presented in $ millions and % of revenue, except where noted

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2025 Guidance

Revenue guidance remains unchanged, Adjusted EBITDA margin range expanded

	2025E(1)	Drivers vs. Initial Guidance
			↓	Projected decline in light vehicle production, primarily North America
Product Revenues	$1.4B	- $1.5B	↑	Tariff pass-through revenue
			↑	Foreign exchange favorability
Adjusted EBITDA Margin	11.5% - 13%	↓	Decremental margin impact from lower volume
↓	Dilution from tariff pass-through revenue
Adjusted Effective Tax Rate	26%	- 29%	•	No change
Capital Expenditures	$70M	- $80M	•	No change

1. Tariffs currently in effect as of today. Limited net impact from changes to customer demand schedules to date. A reduction in overall industry demand based on S&P Global Mobility's Light Vehicle Production Forecast from mid-April. Compared to the mid-February report, our total relevant markets declined 2% from 74.2 to 72.9 million units, with North America down 7% from 15.1 to 14.0 million units. EUR to USD exchange rate of ~$1.10/Euro.

• Adjusted EBITDA Margin guidance range was previously 12.0% - 13.0%.
• Due to the inherent difficulty of forecasting the timing and amount of certain items that would impact net income margin, such as foreign currency gains and losses, we are unable to reasonably estimate net income margin, the GAAP financial measure most directly comparable to Adjusted EBITDA margin. Accordingly, we are unable to provide a reconciliation of Adjusted EBITDA margin to net income margin with respect to the guidance provided.

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Why Gentherm?

Innovative leader uniquely positioned for profitable growth driven by scalable technology platforms and broad market applications

Continuous improvement	Strong financial position
mindset to drive margin	with ability to efficiently
expansion and solid cash	deploy capital and drive
flow conversion	shareholder value

Accelerating value-creation actions to deliver enhanced shareholder returns

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