Gentex Q4 Earnings Call Highlights

Key Points

• Gentex's Q4 consolidated sales rose 19% to $644.4 million largely due to the Vox acquisition ($103.4M), while core Gentex revenue was essentially flat and core gross margin improved to 35.5%, the highest since H1 2021.
• Management flagged tariffs on China exports and higher commodity/DRAM costs as major headwinds—tariffs reduced gross margin by about 150 basis points in Q4 and represent roughly $45–$50 million of pressure entering 2026.
• Gentex guided 2026 consolidated revenue of $2.6–$2.7 billion (2027: $2.75–$2.85B), expects Vox to grow ~5% in 2026 and ultimately add about $40 million per year in cash flow, and is advancing key products including driver‑monitoring shipments to Volvo/Polestar, rising Full Display Mirror volumes, and a dimmable visor planned for H2 2027.

Gentex NASDAQ: GNTX reported fourth-quarter and full-year 2025 results that reflected the impact of its Vox acquisition, improving profitability in its core automotive business, and continued pressure from tariffs on exports to China. Management also provided guidance for 2026 and revenue expectations for 2027, while outlining a product roadmap centered on advanced mirrors, sensing systems, and new electrochromic applications such as dimmable visors.

Fourth-quarter results: sales up on Vox, core margins improve

For the fourth quarter of 2025, Gentex reported consolidated net sales of $644.4 million, up 19% from $541.6 million a year earlier. The company said Vox contributed $103.4 million in fourth-quarter revenue, while core Gentex revenue was $541 million and “essentially flat” year over year.

CEO Steve Downing said core performance in Gentex’s primary regions was stronger than the headline comparison, with revenue in those regions rising about 3% even as light vehicle production declined 2%, representing “a five-point outperformance” versus the market. Sales into China were $34.5 million, down 33% year over year due to tariffs.

Consolidated gross margin in the quarter was 34.8%, compared with 32.5% a year earlier. Core Gentex gross margin was 35.5%, which management described as the highest level since the first half of 2021. Downing attributed the improvement to favorable product mix, operational efficiencies, and purchasing cost reductions, partially offset by tariff-related costs. He said tariffs reduced gross margin by about 150 basis points versus last year.

Consolidated operating expenses were $104.4 million, up from $86.5 million, primarily due to the Vox acquisition. Core Gentex operating expenses included $800,000 in Gentex-specific severance expenses.

Fourth-quarter consolidated income from operations was $120.1 million, up from $89.8 million a year earlier. Core Gentex income from operations was $112.5 million, a 25.3% increase versus the prior-year quarter. Other loss totaled $8.7 million versus other income of $8 million last year, which management said was driven by a fair value adjustment related to its original Vox investment in the prior-year period. Gentex posted net income of $93 million, compared with $87.7 million, and earnings per diluted share of $0.43 versus $0.39.

Full-year 2025: revenue growth, but China tariffs weigh on core sales

For 2025, consolidated net sales were $2.53 billion, up 10% from $2.31 billion in 2024, including nine months of Vox-related revenue. Core Gentex sales were $2.27 billion, down 2% year over year, which management said was “primarily driven by lower demand” for exports to China due to tariffs.

Consolidated gross margin for the year was 34.2%, up from 33.3% in 2024, while core Gentex gross margin was 34.7%, a 140-basis-point increase. Management cited purchasing cost reductions, operational efficiencies, and product mix as key drivers, with unreimbursed tariff costs as an offset.

Full-year consolidated operating expenses were $392.8 million. Core Gentex operating expenses were $318.5 million, compared with $311.4 million in 2024, and included $10.4 million in Gentex-specific severance expenses. Vox operating expenses were $74.3 million from April through year-end.

Consolidated net income was $384.8 million, down from $404.5 million, and earnings per diluted share were $1.74 versus $1.76.

Cash flow, buybacks, and balance sheet items

CFO Kevin Nash said Gentex repurchased 3.8 million shares in the fourth quarter at an average price of $23.43. For the full year, the company repurchased 13.6 million shares at an average price of $23.48, totaling $319 million, and ended the year with 35.9 million shares remaining under its authorization.

Cash and cash equivalents were $145.6 million at year-end 2025, down from $233.3 million at year-end 2024, which Nash attributed primarily to the Vox acquisition and share repurchases, partially offset by operating cash flow. Operating cash flow for 2025 was $587.3 million, up from $498.2 million in 2024. Net capital expenditures were $120.6 million for 2025, compared to $141.4 million in the prior year.

Product and launch updates: driver monitoring, Full Display Mirror, and dimmable visor

COO and CTO Neil Boehm said the fourth quarter was “another strong launch quarter,” with more than 85% of launches tied to advanced interior and exterior auto-dimming mirrors and electronic features. He said driver monitoring, HomeLink, and Full Display Mirror were key growth drivers among advanced feature launches.

Boehm highlighted that Gentex began shipping driver monitoring systems to Volvo and Polestar in the fourth quarter. He said these driver monitoring mirrors include cameras, LED emitters, processing, and Gentex-developed software.

Full Display Mirror shipments totaled 3.19 million units in 2025, up about 8% from 2.96 million units in 2024. Looking ahead, Boehm said the company expects Full Display Mirror to grow by another 200,000 to 400,000 units in 2026.

At CES, Boehm said the product drawing the greatest interest in Gentex’s main booth was the dimmable visor. Gentex announced its first customer is in launch, with a target to begin shipping in the second half of 2027. Boehm also provided an update on large area devices, saying equipment for in-house wet coat capability was being installed, with plans to be operational in late Q1 or early Q2 to produce films for customer demonstrations.

2026 guidance and key risks: tariffs, commodity costs, and China exposure

For 2026, Gentex guided consolidated revenue (including Vox) of $2.6 billion to $2.7 billion. The company expects consolidated gross margin of 34% to 35% and consolidated operating expenses (excluding severance) of $410 million to $420 million. The effective tax rate is expected to be 16% to 18%, capital expenditures are projected at $125 million to $140 million, and depreciation and amortization is expected to be $100 million to $110 million.

For 2027, Gentex provided revenue guidance of $2.75 billion to $2.85 billion, based on the current S&P Global Mobility outlook and company estimates for Vox and other product categories.

In the Q&A, management discussed major drivers and risks behind the outlook, including:

• Tariffs and China exports: Downing said continued headwinds are expected for exporting into China because tariff rates and content economics “don’t support that additional cost.” He said if tariff rates drop significantly, Gentex would be positioned to compete again, but noted that in many cases Chinese OEMs are dropping the technology or using local suppliers.
• Commodity costs and tariffs as 2026 margin headwinds: Management cited precious metals (silver, gold, and ruthenium), as well as copper impacts on electronics, and a full year of tariff rates as key pressures. Downing said those items represent “probably $45 million or $50 million of headwinds” at the start of 2026.
• DRAM pricing: Management said RAM pricing had “gone through the roof” across versions, with some exposure in driver monitoring systems (DDR4) and pricing exposure in Full Display Mirror (DDR3). The company said it would seek customer compensation for higher costs, similar to how it navigated past component shortages.
• Vox integration and profitability: Downing said the company has addressed most integration challenges and continues to pursue cost improvements it believes will ultimately yield about $40 million per year in positive cash flow from Vox. In response to analyst questions, management said Vox is expected to grow about 5% in 2026 and indicated it was “about halfway to 60% of the way there” toward its profitability goals in 2026, with full run-rate expected in 2027.

Downing also said headcount actions are largely complete, with about “90% of everything we need to do” executed to be ready for 2026, though the company would react if market conditions softened further. Looking beyond 35%-36% gross margin, management characterized higher levels as more of a “best case scenario,” particularly given the current tariff and commodity environment.

About Gentex NASDAQ: GNTX

Gentex Corporation NASDAQ: GNTX is a global technology company specializing in the design and manufacture of automotive and aerospace products. The company's primary business centers on automatic-dimming rearview mirrors, advanced driver-assistance systems (ADAS), and camera-based driver monitoring technologies. In the automotive sector, Gentex supplies exterior and interior mirrors with integrated electronics, connectivity features, and safety capabilities to many of the world's leading original equipment manufacturers (OEMs).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.