Gentherm Inc

Greetings and welcome to Gen Therm second quarter 2026 earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I'll now turn the conference over to Gregory Blanchette, Senior Director of Investor Relations. Thank you. You may begin.

Thank you and good morning, everyone. and thanks for joining us today. Jen Thurm's earnings results were released earlier this morning and a copy of the release is available at jenthurm.com. Additionally, a webcast replay of today's call will be available later today on the investor relations section of Jen Thurm'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 GenFirm's earnings release and its SEC filings, including the latest 10-K and subsequent reports for discussions of our risk factors and other significant assumptions, risks, and uncertainties underlying such forward-looking statements. During the 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 Bill Presley, President and Chief Executive Officer, and John Douyard, Chief Financial Officer. During their comments, they will be referring to a presentation deck that we've made available on the investor section of GenTherm's website. After the prepared remarks, we'd be pleased to take your questions. Now, I'd like to turn the call over to Bill.

Thank you, Greg, and good morning, everyone. Let's begin on slide three for an update on our business and the market. Strong commercial execution, where we continue to significantly outperform the market, combined with operational discipline, resulted in an excellent first half, positioning Gen Therm to deliver a solid year. Based on this performance, we are raising our full year 2026 guidance. We continue to monitor the macroeconomic and geopolitical environment, and at the same time, we are proactively managing inflationary pressures through discipline, commercial actions, and operational execution. As we look ahead, our priorities remain clear. We are focused on executing our strategy, capitalizing on the opportunities within our control, and driving sustainable, profitable growth for our shareholders. Strategic profitable growth is a cornerstone of our strategy, and we continue to achieve critical milestones that position us for long-term success. We have confidence that Gen Therm's automotive business will grow over market while we continue to build momentum beyond the light vehicle market. During the quarter, Gen Therm products were selected by two leading North American based furniture brands in the home and office market. In less than a year, we have successfully deployed our core technologies with five new customers and have visibility to 50 to 100 million of revenue in this market by 2028. A strong proof point that our technology platforms are readily transferable beyond automotive and that we are moving with speed to capture these opportunities. In the medical market, we remain focused on refreshing the product portfolio and expanding our customer commercial channels. I am pleased to announce that we have received FDA 510 clearance for Thermafix, an innovative new solution developed by leveraging our proven automotive technology and intellectual property. This is another powerful example of our ability to transfer differentiated automotive innovations into new markets where they solve meaningful customer challenges. Our patented solutions combine conductive air-free patient warming with securement technology to help prevent both hypothermia and patient movement during robotic surgical procedures. We are actively commercializing Thermafix and expect initial sales in the third quarter. We are encouraged by the strong market interest and as adoption grows, we believe Thermafix has the potential to establish a new standard of care while further validating the scalability of our technology platforms. In addition, on July 1st, we completed the strategic acquisition of innovative medical equipment. INE is the provider of the ThermoZone therapy device, which is a non-opioid thermal therapy solution designed to support pain management and recovery through controlled hot and cold therapy utilizing thermal electric devices. It is a great example of a strategic, disciplined bolt-on acquisition that accelerates our strategy. This acquisition builds upon our market-leading capabilities in thermal management while expanding our patient product portfolio. IME has a strong growth trajectory and broad reach into veteran administration hospitals and clinics, enabling attractive cross-selling opportunities of our combined thermal management portfolio. Please turn to slide four, where I will discuss some of our second quarter highlights. The GenThurn team delivered a solid second quarter, reflecting the consistent execution of our strategy and reinforcing our confidence in the path we are on. We secured approximately $690 million in automotive new business awards during the quarter, bringing our year-to-date total to more than $1 billion. These awards were in line with our expectations and reflect continued customer demand for our differentiated technologies. Just as important, our pursuit pipeline remains healthy, giving us confidence that 2026 will be another robust year for new business awards. Product revenue reached a quarterly record of $416 million, driven by automotive climate and comfort solutions growth that continue to outpace underlying light vehicle production. This performance exceeded our expectations and demonstrates the value we continue to create who differentiated technologies and disciplined commercial execution. Operationally, we continued to build momentum in the second quarter. Our initiatives to improve labor efficiency, equipment utilization, and inventory management are delivering measurable results, while the operating system we are implementing is driving greater rigor, consistency, and accountability across the organization. These improvements are strengthening our foundation to expand margins, positioning us to deliver higher cash flow conversion over time. Overall, we are executing well across the business. We are winning with customers, improving the quality of our operations, and investing in the capabilities that will support profitable growth. Moving to slide five. As we approach the close of our combination, With Modine Performance Technologies, I am increasingly confident in the strategic value this transaction will create. Together, we are building a fundamentally stronger company, one with greater scale, broader capabilities, and a more diversified portfolio positioned to deliver sustainable long-term growth. This combination transforms GenTherm into a global leader in thermal and precision flow management solutions. By bringing together two highly complementary businesses, we significantly expand our product portfolio of mission-critical technologies, strengthen our innovation capabilities, and create a platform with greater opportunities to serve our customers across a broader range of applications. Equally important, this transaction meaningfully diversifies our end-market exposure. Our light vehicle mix will decrease from approximately 97% today to roughly 63% while expanding our presence in attractive growing markets such as commercial vehicle, off-highway, and power generation. This creates a more balanced business with multiple growth engines. The combined company will have a clear path to exceed $3.5 billion in revenue by 2030 with an attractive financial profile supported by margin expansion, robust cash flow generation and disciplined capital allocation. Together, these strengths position us to invest in future growth, realize the benefits of the combination and create long-term value for our shareholders. I am excited about what lies ahead. The strategic rationale for this combination is compelling. Our integration planning is progressing well, and we believe the combined company will be better positioned than ever to deliver differentiated solutions for customers and Superior Returns for Shareholders. I will now hand it over to John to discuss an update on our integration activities and highlights for the quarter.