Q2 2024 Gentherm Inc Earnings Call Transcript
Key Points
- Gentherm Inc (THRM) achieved record quarterly revenue of $376 million, outpacing the growth of light-vehicle production in key markets.
- The company secured $660 million in automotive new business awards in the second quarter, bringing the year-to-date total to $1.2 billion.
- Gentherm Inc (THRM) launched automotive solutions on 22 different vehicles across 11 OEMs, including major brands like Ford, General Motors, Hyundai, Mercedes, and Toyota.
- The company achieved its highest quarterly operating income in three years, with an adjusted EBITDA margin rate of 13.3%, a nearly 200 basis points improvement versus the prior year.
- Gentherm Inc (THRM) continues to expand its market share in lumbar and massage solutions, with significant new business awards and the introduction of innovative technologies like Pulse A Massage Technology.
- Revenue for the second quarter and the remainder of the year is lower than originally expected due to customers adjusting production schedules.
- The company faces headwinds from delayed new vehicle launches, lower than projected EV volumes, and increasing customer inventory on dealer lots.
- Gentherm Inc (THRM) experienced a decrease in automotive cables revenue by 6% due to lower volumes in North America.
- The company is phasing out certain battery performance solution products, leading to a decrease in BPS revenues by 17%.
- Gentherm Inc (THRM) noted challenges in the global automotive environment, with volatility in production impacting revenue expectations.
Greetings and welcome to Gentherm second quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Greg Blanchette, Senior Director, Investor Relations. Thank you, Mr. Blanchette, you may begin.
Thank you. Good morning, everyone, and thanks for joining us today. Gentherm's earnings results were released earlier this morning. A copy of the release is available at gentherm.com. Additionally, a webcast replay of today's call will be available later today on the Investor Relations section of Gentherm's website.
During this call, we will make forward-looking statements within the meaning of federal securities laws. These statements reflect our current views with respect to future events and financial performance and actual results may differ materially. We undertake no obligation to update them, except as required by law.
Please see Gentherm's earnings release and its SEC filings, including the latest 10-K and
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