Gentex Reports First Quarter 2025 Financial Results
Rhea-AI Summary
Gentex (NASDAQ: GNTX) reported Q1 2025 financial results with net sales of $576.8 million, down 2% year-over-year. The company faced challenges with gross profit margin of 33.2% and earnings per share of $0.42, an 11% decrease from Q1 2024.
Key highlights include net income of $94.9 million and income from operations of $113.0 million. The company repurchased 3.1 million shares at an average price of $24.52. Automotive sales declined to $563.9 million, with auto-dimming mirror unit shipments decreasing by 7%.
Due to tariff impacts and market conditions, Gentex has revised its 2025 guidance, now expecting revenue of $2.10-$2.2 billion for primary markets and $50-$120 million for China. The company completed a strategic merger with VOXX on April 1, 2025, expected to contribute $240-$280 million in revenue for 2025, subject to tariff impacts.
Positive
- Sequential gross margin improvement of 70 basis points from Q4 2024
- Strategic merger with VOXX completed, potentially adding $240-$280M in 2025 revenue
- Core operating expense growth contained at less than 3% for the quarter
- Strong balance sheet position enabling continued share repurchases
Negative
- Net sales decreased 2% year-over-year to $576.8 million
- Earnings per share declined 11% to $0.42
- Auto-dimming mirror unit shipments decreased 7%
- Production halted for China market due to tariff escalation
- Significant downward revision in 2025 revenue guidance
News Market Reaction
On the day this news was published, GNTX declined 2.78%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
ZEELAND, Mich., April 25, 2025 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics, today reported financial results for the three months ended March 31, 2025.
1st Quarter 2025 Summary
- Net sales of $576.8 million, a
2% decrease compared to the first quarter of 2024, versus light vehicle production that was down3% quarter over quarter in the Company's primary markets - Gross profit margin of
33.2% , an increase of 70 basis points from the fourth quarter of 2024 - Income from operations of
$113.0 million - Net income of $94.9 million
- Earnings per diluted share of
$0.42 , a decrease of11% from the first quarter of 2024 - 3.1 million shares repurchased during the quarter
For the first quarter of 2025, the Company reported net sales of
For the first quarter of 2025, the gross margin was
Operating expenses during the first quarter of 2025 increased by
Income from operations for the first quarter of 2025 was
Other income was
During the first quarter of 2025, the Company had an effective tax rate of
Net income for the first quarter of 2025 was
Earnings per diluted share for the first quarter of 2025 were
Automotive net sales in the first quarter of 2025 were
Other net sales in the first quarter of 2025, which includes dimmable aircraft windows, fire protection products, and medical devices, were
Share Repurchases
During the first quarter of 2025, the Company repurchased 3.1 million shares of its common stock at an average price of
Future Estimates
The Company’s current forecasts for light vehicle production for the second quarter of 2025 and full years 2025 and 2026 are based on the mid-April 2025 S&P Global Mobility forecast for light vehicle production in North America, Europe, Japan/Korea, and China. As a result of the current and expected tariff escalation in the China market, the Company has pro-actively halted production of interior and exterior mirrors destined for customers in the China market. Subsequently, many of the Company's customers based in China have canceled or paused orders at this time, while we work with these customers to better understand their ability and willingness to pay the elevated prices resulting from the new tariff rates.
Currently, global light vehicle production is expected to be down
Light vehicle production estimates for 2025 in North America, Europe, and Japan/Korea have weakened significantly since the beginning of the year and is currently forecasted to decline approximately
Lastly, light vehicle production for calendar year 2026 is now forecasted to be flat in our primary markets, compared to calendar year 2025. Second quarter 2025 and calendar years 2025 and 2026 forecasted light vehicle production volumes from S&P Global Mobility are shown below:
| Light Vehicle Production (per S&P Global Mobility mid-April light vehicle production forecast) | |||||||||||||
| (in Millions) | |||||||||||||
| Region | Q2 2025 | Q2 2024 | % Change | Calendar Year 2026 | Calendar Year 2025 | Calendar Year 2024 | 2026 vs 2025 % Change | 2025 vs 2024 % Change | |||||
| North America | 3.67 | 4.10 | (10 | )% | 14.50 | 14.01 | 15.45 | 3 | % | (9 | )% | ||
| Europe | 4.29 | 4.49 | (4 | )% | 16.72 | 16.64 | 17.17 | — | % | (3 | )% | ||
| Japan and Korea | 2.91 | 3.02 | (4 | )% | 11.19 | 11.76 | 11.98 | (5 | )% | (2 | )% | ||
| China | 7.31 | 6.99 | 5 | % | 30.61 | 30.50 | 30.09 | — | % | 1 | % | ||
| Total Light Vehicle Production | 18.18 | 18.60 | (2 | )% | 73.02 | 72.91 | 74.69 | — | % | (2 | )% | ||
Based on the current light vehicle production forecast and actual results for the first three months of 2025, as well as the pro-active decision of the Company to halt production and sales of product intended for the China market until customer agreements can be reached, the Company is making certain changes to its previously provided guidance for calendar year 2025 as shown in the table below.
| 2025 Annual Guidance - (excluding VOXX Merger) | ||
| As of January 31, 2025 | As of April 25, 2025 | |
| Revenue - Primary Markets | ||
| Revenue - China | Included above | |
| Gross Margin | ||
| Operating Expenses (excluding severance) | ||
| Tax Rate | ||
| Capital Expenditures | ||
| Depreciation & Amortization | ||
The Company's revenue guidance has been updated based on the current tariff environment and provides additional detail regarding revenue from the Company's primary markets, while separately identifying revenue from the China market. This additional detail regarding the Company’s revenue is included for the time being to allow investors to better understand the Company's exposure in the China market due to the impact that tariffs are expected to have on this market. Additionally, as noted, the revenue estimates above do not include any revenue from the recently completed merger with VOXX.
At this time, the Company is withdrawing revenue guidance for calendar year 2026 due to the significant uncertainty surrounding the China market as a result of the impact of incremental tariffs on Company exports to China; the economic impact of import and export tariffs on the Company's primary markets; and work being done to finalize a more complete financial picture of the recently completed merger with VOXX. The Company anticipates providing updated revenue guidance for calendar year 2026 once there is further clarity in the overall tariff landscape.
Merger with VOXX
On April 1, 2025, the Company closed on the strategic merger of VOXX, a global supplier of automotive and consumer electronics, as well as premium audio equipment. As of April 1, the Company expected to add between
Closing Remarks
"The last few months have been undeniably chaotic as we work to understand the impact that tariffs will have on our supply chain and sales channels. The extent of the impact to revenue for the year depends on how much our sales into the China market will be limited by the counter-tariffs that are in place for our exports, as well as, how much additional cost our OEM customers and consumers will be willing to pay for the additional import tariffs. While the tariffs will create some headwinds for the Company, we still believe that the product portfolio and the new technologies in development will provide a strong revenue trajectory over the next five years. In terms of profitability, we have made good strides in our gross margin recovery efforts, and will continue to execute the plan as well as additional opportunities that the team has identified to improve the long-term profitability of the business. In the short term, however, as we secure reimbursement for tariffs on imports, the gross margin percentage will be impacted as we add costs and reimbursements that don't include margin dollars. As we move through the year, we will be monitoring revenue closely and adjusting expenses to align to the market conditions. Lastly, the strength of the Company's balance sheet puts us in a favorable position to capitalize on the pull-back in our share price as we consider higher levels of share repurchases,” concluded Downing.
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “hope,” “intend,” "likely", “may,” “opinion,” “optimistic,” “plan,” “poised,” “predict,” “project,” “should,” “strategy,” “target,” “will,” "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control, and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; import and export duty and tariff rates with the countries with which we conduct business; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.
The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include, tariffs and supply chain constraints that have affected, are affecting and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of April 15, 2025 (http://www.gentex.com/forecast-disclaimer).
First Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, April 25, 2025. Participants who wish to ask questions may register for the call at https://register-conf.media-server.com/register/BId5094df774c442c5bda50fc086190a0e. It is recommended that participants join 10 minutes prior to the event start, although they may register ahead of the call and dial in at any time during the call. Participants may listen to the call via audio streaming https://edge.media-server.com/mmc/p/rg2tswaj. A webcast replay will be available approximately 24 hours after the conclusion of the call at http://ir.gentex.com/events-and-presentations/upcoming-past-events.
About the Company
Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics. Visit the Company’s web site at www.gentex.com.
Contact Information:
Gentex Investor & Media Contact
Josh O'Berski
616.931.3505
| GENTEX CORPORATION AUTO-DIMMING MIRROR SHIPMENTS (Thousands) | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | % Change | ||||
| North American Interior Mirrors | 2,249 | 2,262 | (1 | )% | ||
| North American Exterior Mirrors | 1,370 | 1,621 | (15 | )% | ||
| Total North American Mirror Units | 3,619 | 3,883 | (7 | )% | ||
| International Interior Mirrors | 5,140 | 5,554 | (7 | )% | ||
| International Exterior Mirrors | 2,783 | 3,034 | (8 | )% | ||
| Total International Mirror Units | 7,923 | 8,588 | (8 | )% | ||
| Total Interior Mirrors | 7,389 | 7,816 | (5 | )% | ||
| Total Exterior Mirrors | 4,153 | 4,655 | (11 | )% | ||
| Total Auto-Dimming Mirror Units | 11,542 | 12,471 | (7 | )% | ||
Note: Percent change and amounts may not total due to rounding.
| GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
| (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| Net Sales | $ | 576,773,090 | $ | 590,225,211 | ||
| Cost of Goods Sold | 385,039,503 | 387,987,605 | ||||
| Gross Profit | 191,733,587 | 202,237,606 | ||||
| Engineering, Research & Development | 45,924,364 | 42,181,986 | ||||
| Selling, General & Administrative | 29,933,005 | 30,709,308 | ||||
| Severance Expense | 2,889,112 | — | ||||
| Operating Expenses | 78,746,481 | 72,891,294 | ||||
| Income from Operations | 112,987,106 | 129,346,312 | ||||
| Other Income/(Loss) | 640,476 | (1,698,385 | ) | |||
| Income before Income Taxes | 113,627,582 | 127,647,927 | ||||
| Provision for Income Taxes | 18,753,537 | 19,417,213 | ||||
| Net Income | $ | 94,874,045 | $ | 108,230,714 | ||
| Earnings Per Share(1) | ||||||
| Basic | $ | 0.42 | $ | 0.47 | ||
| Diluted | $ | 0.42 | $ | 0.47 | ||
| Cash Dividends Declared per Share | $ | 0.120 | $ | 0.120 | ||
| (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. | ||||||
| GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| March 31, 2025 | December 31, 2024 | ||||
| (Unaudited) | (Note) | ||||
| ASSETS | |||||
| Cash and Cash Equivalents | $ | 286,558,598 | $ | 233,318,766 | |
| Short-Term Investments | 20,549,084 | 22,304,829 | |||
| Accounts Receivable, net | 330,625,348 | 295,344,353 | |||
| Inventories | 408,934,806 | 436,497,445 | |||
| Other Current Assets | 42,002,767 | 49,862,777 | |||
| Total Current Assets | 1,088,670,603 | 1,037,328,170 | |||
| Plant and Equipment - Net | 734,551,557 | 728,481,467 | |||
| Goodwill | 340,668,927 | 340,668,927 | |||
| Long-Term Investments | 300,626,514 | 339,604,044 | |||
| Intangible Assets, net | 190,832,346 | 195,157,160 | |||
| Patents and Other Assets, net | 127,199,281 | 119,581,207 | |||
| Total Other Assets | 959,327,068 | 995,011,338 | |||
| Total Assets | $ | 2,782,549,228 | $ | 2,760,820,975 | |
| LIABILITIES AND SHAREHOLDERS' INVESTMENT | |||||
| Current Liabilities | $ | 266,633,348 | $ | 252,692,676 | |
| Other Non-current Liabilities | 36,498,377 | 36,028,644 | |||
| Shareholders' Investment | 2,479,417,503 | 2,472,099,655 | |||
| Total Liabilities & Shareholders' Investment | $ | 2,782,549,228 | $ | 2,760,820,975 | |
Note: The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
This press release was published by a CLEAR® Verified individual.
FAQ
What caused Gentex (GNTX) Q1 2025 revenue decline?
How many shares did Gentex (GNTX) repurchase in Q1 2025?
What is Gentex's (GNTX) revised revenue guidance for 2025?
How will the VOXX merger impact Gentex (GNTX) revenue in 2025?
