The following is a summary of the Gentherm Incorporated (THRM) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Gentherm reported a 2% decrease in product revenues in Q1 2024, with automotive revenues down by 2% to $345 million.

• Adjusted EBITDA for the quarter was $44 million, up from $42 million in the previous year, due to supplier cost reductions, value engineering, and factory productivity.

• The company achieved higher-than-expected growth in adjusted EBITDA margin, reaching 12.2% in Q1 2024 compared to 11.4% in Q1 2023.

• Adjusted diluted earnings per share were up to $0.62 from $0.49 in the same quarter of the previous year.

• Despite lower revenue, gross margin rate improved through measures like factory productivity, Fit-for-Growth savings and lower freight costs, partially offset by wage inflation and annual price reductions.

Business Progress:

• Gentherm secured nearly $530 million of new business awards during the quarter despite a volatile automotive environment.

• The company launched its automotive solutions on 27 vehicles across 13 OEMs including BMW, General Motors, Great Wall, Honda, Li Auto, Stellantis, Subaru and Volkswagen.

• An extended advanced engineering lab and team were established in Hyderabad, India for software and technology development.

• The company initiated a partnership with US Med-Equip to provide patient temperature management solutions to the U.S. healthcare market, adding 21 new hospital customers in China.

• Gentherm's Fit-for-Growth initiative is on track to achieve $80 million of net savings between 2023 and 2026.

• Its ClimateSense software was booked with GM, sparking interest from other customers worldwide, and secured a deal to provide high-end lumbar and massage equipment for GM's next-gen truck platforms.

• An 80% win rate has been maintained for several quarters on thermal and pneumatic comfort solutions.

More details: Gentherm IR

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