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Gentex Q2 Earnings Surpass Estimates, 2025 Guidance Raised

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Key Takeaways

  • GNTX posted Q2 EPS of 47 cents, up 27.03% year over year and above the consensus estimate of 40 cents.
  • Net sales rose 14.8% to $657.9M, led by the Automotive segment and boosted by improved gross margin.
  • GNTX raised 2025 sales guidance, including VOXX contribution of $240-$280M and higher China revenues.

Gentex Corporation’s (GNTX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of 47 cents beat the Zacks Consensus Estimate of 40 cents while increasing 27.03% year over year.

This Zeeland-based automotive products supplier reported net sales of $657.9 million, which beat the Zacks Consensus Estimate of $584 million and increased 14.8% from the year-ago period. The company recorded a gross margin of 34.2%, reflecting an increase of 130 basis points from the second quarter of 2024 due to a reduction in purchasing costs, improved mix and operational efficiencies.

Gentex Corporation Price, Consensus and EPS Surprise

Gentex Corporation Price, Consensus and EPS Surprise

Gentex Corporation price-consensus-eps-surprise-chart | Gentex Corporation Quote

Segmental Performance of GNTX

The Automotive segment’s net sales, contributing the most to Gentex’s revenues, totaled $566.5 million in the second quarter, up from $559.3 million reported in the year-ago quarter and beat our estimate of $548.9 million. In the reported quarter, auto-dimming mirror shipments in North America’s market decreased 8% to 3,746,000 units. Shipments fell 4% year over year in the international markets to 7,830,000 units. Total shipments declined 5% to 11,575,000 units.

Gentex’s Other net sales, which include dimmable aircraft windows, fire protection products and medical products, decreased from the year-ago quarter’s $13.6 million to $12.5 million and missed our estimate of $17.1 million.

The company completed VOXX’s acquisition on April 1, 2025. In the second quarter, VOXX recorded sales of $78.8 million.

GNTX’s Financial Tidbits

Total operating expenses rose 43.8% year over year to $106.77 million in second-quarter 2025. Engineering and R&D expenses increased to $51.47 million from $44 million recorded in the corresponding quarter of 2024. SG&A expenses increased to $48.52 million from $29.67 million recorded in the corresponding quarter of 2024.

GNTX paid a dividend of 12 cents per share in the quarter. Gentex repurchased 5.7 million shares of its common stock at an average price of $22.13 per share. As of July 25, 2025, the company had nearly 40.6 million shares authorized for repurchase, including its latest share repurchase plan. Gentex had cash and cash equivalents of about $119.8 million as of June 30, 2025.

GNTX Updates 2025 Guidance

Gentex has revised its guidance for 2025, after consolidating the VOXX merger. It expects consolidated revenues in the range of $2.44-$2.61 billion, up from previous guidance of $2.15-$2.32 billion.Gentex still expects 2025 sales from the primary market in the range of $2.10-$2.20 billion. However, it now expects sales from China’s market in the range of $100-$125 million, up from the previous expectation of $50-$120 million. Additionally, the VOXX segment sales are expected in the range of $240-$280 million.

Gentex (stand-alone) gross margin is projected in the band of 34-34.5%, up from the previous estimate of 33-34%. Capital expenditure is anticipated between $100 million and $125 million. Operating expenses are estimated in the band of $300-$310 million.

GNTX’s Zacks Rank & Other Stocks to Consider

GNTX carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Valmont Industries (VMI - Free Report) and XPeng Inc. (XPEV - Free Report) . While RACE sports a Zacks Rank #1 (Strong Buy) at present, GNTX & XPEV carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for RACE’s fiscal 2025 sales and earnings indicates year-over-year growth of 13.6% and 12.1%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 5 cents each in the past 30 days.

The Zacks Consensus Estimate for VMI’s 2025 sales implies year-over-year growth of 0.53%. EPS estimates for 2025 and 2026 have improved 37 cents and 60 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for XPEV’s 2025 sales and earnings indicates year-over-year growth of 102% and 66.7%, respectively. EPS estimates for 2025 have improved 7 cents in the past 90 days and the same for 2026 has increased a penny in the past 60 days.

 

 

 

 

 


 

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