Gentex misses Q4 sales estimates

Overview

• Digital vision supplier's Q4 net sales rose 19% yr/yr but missed analyst expectations

• Core Gentex Q4 gross margin improved by 300 basis points to 35.5%

• Company repurchased 3.8 mln shares in Q4, totaling $319 mln for 2025

Outlook

• Gentex expects 2026 revenue between $2.60 bln and $2.70 bln

• Company forecasts 2027 revenue between $2.75 bln and $2.85 bln

• Gentex projects 2026 gross margin of 34% to 35%

Result Drivers

• MARKET OUTPERFORMANCE - Core Gentex revenue was flat despite a 2% decline in light vehicle production, outperforming the market by 5 percentage points in primary regions

• VOXX CONTRIBUTION - VOXX acquisition added $103.4 mln to Q4 revenue, driven by seasonal sales

• GROSS MARGIN IMPROVEMENT - Gross margin increased due to favorable product mix, efficiencies, and cost reductions, partially offset by tariffs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Gentex Corp is $27.50, about 14.4% above its January 29 closing price of $24.04

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX7TdVkF

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