Gentherm Incorporated (NASDAQ:THRM) Q1 2024 Earnings Conference Call April 30, 2024 8:00 AM ET

Company Participants

Yijing Brentano – Senior Vice President-Investor Relations
Phil Eyler – President and Chief Executive Officer
Matteo Anversa – Chief Financial Officer

Conference Call Participants

Matt Koranda – Roth Capital Partners
Luke Junk – Baird
Glenn Chin – Seaport Research Partners
Ryan Sigdahl – Craig-Hallum Capital Group
Ryan Brinkman – JPMorgan

Operator

Greetings and welcome to the Gentherm First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Yijing Brentano, SVP, Investor Relations. Thank you. You may begin.

Yijing Brentano

Thank you and good morning everyone and thanks for joining us today. Gentherm's earnings results were released earlier this morning, and 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 subsequent reports, for discussions of our risk factors and other risks and uncertainties underlying such forward-looking statements.

During this call, we will also discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release and investor presentation. On the call with me today are Phil Eyler, President and Chief Executive Officer; and Matteo Anversa, Chief Financial Officer. During their comments, Phil and Matteo will be referring to a presentation deck that we have made available on our website at gentherm.com/events. After their prepared remarks, we will be pleased to take your questions.

Now I'd like to turn the call over to Phil.

Phil Eyler

Thank you, Yijing. Good morning everyone and thank you for joining us today. I am proud of Gentherm's strong execution to start the year. While the global automotive environment remained volatile in the first quarter and near term light vehicle production volumes softened compared to what was forecasted by S&P Global just two months ago, we continue to see strong demand from our customers for our thermal comfort, massage and lumbar solutions, winning 80% of our quoted pursuits for thermal and pneumatic solutions during the quarter. We secured nearly $530 million of automotive new business awards, a record for the first quarter. Adjusting for the impact from foreign currency exchange and one-time recoveries, our automotive climate and comfort solutions revenues, which include primarily CCS, seat heaters, steering wheel heaters and lumbar and massage comfort solutions outperformed the light vehicle production in our relevant markets by approximately 300 basis points in the first quarter with many new launches and ramp ups still to come throughout 2024.