Financial Data and Key Metrics Changes - For Q4 2025, consolidated net sales were $644.4 million, a 19% increase from $541.6 million in Q4 2024. Core Gentex revenue was $541 million, essentially flat year-over-year despite a 2% decline in light vehicle production [5][11] - Consolidated gross margin improved to 34.8% from 32.5% in the previous year, with core Gentex gross margin at 35.5%, a 300 basis point increase [6][10] - Consolidated net income for Q4 2025 was $93 million, compared to $87.7 million in Q4 2024, with earnings per diluted share rising to $0.43 from $0.39 [10][11] - For the full year 2025, consolidated net sales reached $2.53 billion, a 10% increase from $2.31 billion in 2024, while core Gentex sales declined by 2% to $2.27 billion [11][12] Business Line Data and Key Metrics Changes - Gentex Automotive generated $527.6 million in net sales for Q4 2025, down from $531.3 million in Q4 2024, with auto-dimming mirror shipments declining by 3% [15] - The "Other" category, including dimmable aircraft windows and medical products, saw Q4 net sales rise to $13.3 million from $10.3 million year-over-year [16] - Vox contributed $103.4 million in net sales during Q4 2025, with a total of $267.2 million for the nine-month period post-acquisition [17] Market Data and Key Metrics Changes - Sales into China totaled $34.5 million for Q4 2025, down 33% from the previous year due to tariffs [6] - Revenue in primary markets grew approximately 3% despite a 2% decline in light vehicle production, indicating a five-point outperformance relative to the underlying market [5] Company Strategy and Development Direction - The company aims to maintain gross margins in the 35%-36% range, achieved through cost control and operational efficiencies despite external headwinds [8][32] - Focus on innovation is emphasized as a key driver for growth, with ongoing product launches including driver monitoring systems and next-generation Full Display Mirrors [33] - The integration of Vox is progressing well, with expected annual positive cash flow improvements of approximately $40 million [31][63] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was marked by challenges such as tariff volatility and production declines in primary markets, yet the team delivered strong results [31][32] - For 2026, consolidated revenue is expected to be between $2.6 billion and $2.7 billion, with gross margins anticipated between 34% and 35% [29][30] - The company is preparing for a stable production environment in North America and Europe, while remaining cautious about the ongoing challenges in the China market [38][52] Other Important Information - The company repurchased 3.8 million shares in Q4 2025 at an average price of $23.43, totaling $319 million for the year [17] - Cash and cash equivalents decreased to $145.6 million from $233.3 million at year-end 2024, primarily due to acquisitions and share repurchases [18] Q&A Session Summary Question: Can you discuss the revenue guidance range and the risks involved? - Management acknowledged the uneven revenue growth in 2025 and highlighted potential stability in North America and Western Europe, while expressing concerns about the China market [36][37] Question: What factors contributed to the better-than-expected margins in Q4? - Positive product mix and operational efficiencies were noted, although tariff impacts were significant in the second half of the year [40][41] Question: What is the outlook for the China market? - Continued headwinds are expected due to high tariffs, with a potential rebound if tariff rates normalize [90] Question: How is the integration of Vox progressing? - The integration is on track, with expected annual growth of about 5% for Vox in 2026, and the core Gentex business is projected to grow by 2-3% [69][70] Question: What are the expectations for gross margins in 2026? - Management indicated that while there are opportunities for tariff recoveries, challenges remain with commodity pricing and tariffs impacting margins [46][50]

Financial Data and Key Metrics Changes - For Q4 2025, consolidated net sales were $644.4 million, a 19% increase from $541.6 million in Q4 2024. Core Gentex revenue was $541 million, essentially flat year-over-year [4][10] - Consolidated gross margin improved to 34.8% from 32.5% in Q4 2024, with core Gentex gross margin at 35.5%, a 300 basis point increase [5][11] - Consolidated net income for Q4 2025 was $93 million, compared to $87.7 million in Q4 2024, with earnings per diluted share at $0.43, up from $0.39 [9][10] Business Line Data and Key Metrics Changes - Gentex Automotive generated $527.6 million in net sales for Q4 2025, down from $531.3 million in Q4 2024, despite a 3% decline in auto-dimming mirror shipments [14] - The "Other" category, including dimmable aircraft windows and medical products, saw Q4 net sales rise to $13.3 million from $10.3 million in the prior year [14] - Vox contributed $103.4 million in net sales during Q4 2025, with a total of $267.2 million for the nine-month period from April to December 2025 [15] Market Data and Key Metrics Changes - Sales into China totaled $34.5 million for Q4 2025, down 33% from the previous year due to tariffs [5] - Revenue in primary markets grew approximately 3% despite a 2% decline in light vehicle production [4] Company Strategy and Development Direction - The company aims to maintain gross margins in the 35%-36% range, achieved through cost control and operational efficiencies [6][32] - Focus on innovation and product launches, including driver monitoring systems and dimmable visors, to drive growth [34] - The strategy includes leveraging core competencies to achieve above-market growth through existing and new technologies [34] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 faced challenges from tariffs, production declines, and cost inflation, yet the team delivered impressive results [31][32] - Expectations for 2026 include consolidated revenue guidance of $2.6 billion to $2.7 billion, with gross margins anticipated between 34% and 35% [30] - The company is optimistic about recovering tariff impacts through negotiations with customers [82] Other Important Information - Cash and cash equivalents decreased to $145.6 million from $233.3 million at year-end 2024, primarily due to acquisitions and share repurchases [16] - The company repurchased 3.8 million shares in Q4 at an average price of $23.43, totaling $319 million for the year [15] Q&A Session Summary Question: Can you discuss the revenue guidance range and the risks involved? - Management acknowledged the uneven performance in 2025 and noted potential stability in North America and Western Europe, while expressing concerns about the China market [38] Question: What were the drivers behind the better-than-expected gross margins? - Positive factors included product mix and operational efficiencies, while tariff impacts were significant headwinds [41] Question: What is the outlook for the China market? - Continued headwinds are expected due to high tariffs, but a drop in tariffs could improve competitiveness [91] Question: How is the integration of Vox progressing? - The integration is on track, with expected annual synergies of approximately $40 million [63] Question: What are the expectations for free cash flow and buybacks? - The company aims to maintain strong cash flow, with buybacks being a primary use of generated cash [85]

Core Viewpoint - Gentex (GNTX) reported quarterly earnings of $0.43 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.39 per share a year ago [1]. Financial Performance - The company posted revenues of $644.4 million for the quarter ended December 2025, which was 1.32% below the Zacks Consensus Estimate and an increase from $541.64 million year-over-year [2]. - Over the last four quarters, Gentex has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2]. Stock Performance - Gentex shares have increased approximately 3.3% since the beginning of the year, outperforming the S&P 500's gain of 1.8% [3]. - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45, with expected revenues of $656.65 million, and for the current fiscal year, the estimate is $1.93 on $2.68 billion in revenues [7]. - The estimate revisions trend for Gentex was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]. Industry Context - The Automotive - Original Equipment industry, to which Gentex belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8].

GNTX – Q4/YE 2025 Conference Call Updates 1 Safe Harbor for Forward Looking Statements This presentation 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 identif ...

Financial Performance - Consolidated net sales for Q4 2025 were $644.4 million, a 19% increase from $541.6 million in Q4 2024, with core Gentex revenue at $541.0 million, approximately flat year-over-year[3] - Consolidated net income attributable to Gentex for Q4 2025 was $93.0 million, compared to $87.7 million in Q4 2024, with earnings per diluted share at $0.43, up from $0.39[12] - For calendar year 2025, consolidated net sales reached $2.53 billion, a 10% increase from $2.31 billion in 2024, while core Gentex sales declined 2% to $2.27 billion[13] - The company reported a net income of $93.3 million for the fourth quarter of 2025, up from $87.7 million in the same quarter of 2024[35] - Net income attributable to Gentex Corporation was $378.7 million in 2025, down from $404.5 million in 2024, reflecting a decrease of about 6.4%[36] - Adjusted net income for Gentex Corporation, which excludes certain costs, was $389.7 million in 2025, compared to $413.7 million in 2024, indicating a decline of approximately 5.8%[44] Margins and Expenses - Consolidated gross margin for Q4 2025 was 34.8%, up from 32.5% in Q4 2024, while core Gentex gross margin improved to 35.5%, a 300 basis-point increase[6] - Consolidated operating expenses for calendar year 2025 increased 26% to $392.8 million, with VOXX accounting for $74.3 million of the increase[16] - The gross profit for Gentex Corporation was $787.4 million in 2025, with a gross margin of 34.7%, compared to a gross profit of $771.1 million and a margin of 33.3% in 2024[42] - Gentex Corporation's engineering, research, and development expenses were $185.3 million in 2025, compared to $181.5 million in 2024, showing an increase of approximately 2.2%[36] Shareholder Actions - The company repurchased 3.8 million shares at an average price of $23.43 per share in Q4 2025, totaling $319.0 million for the year[23] - The company declared cash dividends of $0.48 per share for both 2025 and 2024, maintaining the same level year-over-year[36] Future Outlook - The company expects 2026 revenue guidance between $2.60 billion and $2.70 billion, with a gross margin forecast of 34% to 35%[24] - The company anticipates calendar year 2027 revenue between $2.75 billion and $2.85 billion based on market conditions and product estimates[25] - The company aims to drive above-market growth through innovation and leveraging core competencies despite challenging market conditions[26] - The company anticipates continued challenges from tariffs, cost inflation, and market volatility, which may impact future performance[28] Market Performance - In 2025, the company faced a 29% year-over-year sales decline in China but offset this with increased sales in primary markets, outperforming the market by 3%[26] - VOXX contributed $103.4 million in revenue during Q4 2025, reflecting strong seasonal demand[21] Product Development - The company launched new products including driver-monitoring systems, next-generation full display mirrors, and a new premium audio product line that received multiple awards at CES[26] - The VOXX acquisition was completed in April 2025, with integration challenges mostly addressed, and planned cost improvement initiatives expected to yield approximately $40 million per year in positive cash flow[26] Assets and Liabilities - Total assets for Gentex Corporation increased to $2.93 billion in 2025 from $2.76 billion in 2024, marking a growth of about 6.2%[38] - Cash and cash equivalents decreased to $145.6 million in 2025 from $233.3 million in 2024, a decline of approximately 37.5%[38] - The company’s total current liabilities rose to $387.5 million in 2025, up from $252.7 million in 2024, reflecting an increase of about 53.2%[38] Shipping and Production - The total auto-dimming mirror units shipped in 2025 were 44,825, a 6% decrease from 47,654 units in 2024[34]

Core Insights - Gentex Corporation reported a consolidated net sales of $644.4 million for Q4 2025, a 19% increase from $541.6 million in Q4 2024, with VOXX contributing $103.4 million to this revenue [3][6] - The consolidated gross margin for Q4 2025 was 34.8%, up from 32.5% in Q4 2024, while the core Gentex gross margin was 35.5%, reflecting a 300 basis-point increase [4][6] - For the calendar year 2025, consolidated net sales reached $2.53 billion, a 10% increase from $2.31 billion in 2024, while core Gentex sales were $2.27 billion, a 2% decline compared to 2024 [12][16] Financial Performance - Consolidated income from operations for Q4 2025 was $120.1 million, compared to $89.8 million in Q4 2024, marking a significant increase [8] - The net income attributable to Gentex for Q4 2025 was $93.0 million, up from $87.7 million in Q4 2024, with earnings per diluted share increasing to $0.43 from $0.39 [11][6] - For the full year 2025, the consolidated net income attributable to Gentex was $384.8 million, down from $404.5 million in 2024, with earnings per diluted share at $1.74 compared to $1.76 in 2024 [16][17] Operational Highlights - Consolidated operating expenses in Q4 2025 were $104.4 million, up from $86.5 million in Q4 2024, primarily due to the VOXX acquisition [5] - Core Gentex operating expenses (excluding VOXX) were $79.8 million in Q4 2025, down from $86.5 million in Q4 2024, which included impairment charges [5][7] - The company repurchased 3.8 million shares in Q4 2025 at an average price of $23.43 per share, totaling $319.0 million for the year [21] Market and Product Insights - Gentex Automotive net sales for Q4 2025 were $527.6 million, slightly down from $531.3 million in Q4 2024, with a year-over-year decline in auto-dimming mirror shipments of 3% [18] - Other net sales, including products like dimmable aircraft windows and medical devices, increased to $13.3 million in Q4 2025 from $10.3 million in Q4 2024 [19] - VOXX's net sales contributed $267.2 million for the calendar year 2025, reflecting strong seasonal demand [20] Future Guidance - For 2026, the company expects consolidated revenue between $2.60 billion and $2.70 billion, with a gross margin target of 34% to 35% [24] - The company anticipates a slight decline in light vehicle production in its primary markets, with a forecasted total of 76.5 million units in 2026 [22][23] - The company aims to achieve approximately $40 million per year in positive cash flow from planned cost improvement initiatives [26]

Core Insights - The article highlights the introduction of a modern helmet named PURSUIT, specifically designed to enhance aircraft helmet-mounted display systems [1] Company and Industry Summary - The PURSUIT helmet represents a significant advancement in technology for modern fighters, indicating a trend towards more sophisticated equipment in the defense sector [1]

Core Viewpoint - Gentex (GNTX) is currently identified as a strong value stock, supported by its favorable Zacks Rank and various valuation metrics indicating it may be undervalued in the market [4][7]. Valuation Metrics - GNTX has a P/E ratio of 15.03, which is lower than the industry average of 17.80, suggesting it may be undervalued [4]. - The stock's P/B ratio stands at 2.59, compared to the industry average of 3.19, indicating a solid valuation relative to its book value [5]. - GNTX's P/CF ratio is 12.89, significantly lower than the industry's average of 26.23, further supporting the notion of undervaluation based on cash flow [6]. Historical Performance - Over the past 52 weeks, GNTX's Forward P/E has fluctuated between a high of 15.46 and a low of 10.60, with a median of 13.03, reflecting its valuation dynamics [4]. - The P/B ratio for GNTX has ranged from a high of 2.97 to a low of 1.89, with a median of 2.41 over the past year [5]. - The P/CF ratio has varied between 14.17 and 9.65, with a median of 12.00, indicating consistent cash flow performance [6].

Core Insights - Gentex Corporation has launched the new Ops-Core AMP Helmet Rail Mount with Vent Mode for its AMP Communication Headset, enhancing its product offerings in personal protection and situational awareness solutions [1] Company Overview - Gentex Corporation is recognized as a global leader in providing solutions for defense forces, emergency responders, and industrial personnel [1] Product Development - The new helmet rail mount was designed and developed with direct input from end-users, ensuring that it meets the needs and expectations of its target market [1] - The product maintains the trusted quality, form factor, adjustability, and durability of the original AMP Communication Headset [1]

Core Insights - Gentex Corporation has launched the newly redesigned Ops-Core FAST XP Helmet System, specifically tailored for law enforcement [1] - The helmet system is designed to meet the needs of specialized units, tactical teams, and patrol officers, providing protection, comfort, and stability for extended missions [1] Product Features - The FAST XP Helmet System offers uncompromising protection and reliability, addressing the real-world requirements of law enforcement [1] - It builds on the proven performance of its predecessor, indicating a focus on continuous improvement and innovation in ballistic helmet solutions [1]