```markdown [Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) This section encompasses Gentex Corporation's unaudited financial statements, management's analysis, market risk disclosures, and controls [Item 1. Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Gentex Corporation's unaudited condensed consolidated financial statements and detailed explanatory notes [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section details Gentex Corporation's financial position through its unaudited condensed consolidated balance sheets - The unaudited condensed consolidated balance sheets show the financial position of Gentex Corporation as of June 30, 2025, compared to December 31, 2024. Key changes include a **decrease in cash and cash equivalents**, an **increase in accounts receivable and inventories**, and an **increase in total liabilities**, primarily due to the VOXX acquisition and timing of payments[10](index=10&type=chunk) Balance Sheet Highlights (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :---------------- | :---------------- | :------- | | Cash and cash equivalents | $119,774,840 | $233,318,766 | $(113,543,926) | | Accounts receivable, net | $372,961,789 | $295,344,353 | $77,617,436 | | Inventories, net | $475,719,663 | $436,497,445 | $39,222,218 | | Total current assets | $1,061,976,626 | $1,037,328,170 | $24,648,456 | | Total assets | $2,813,817,336 | $2,760,820,975 | $52,996,361 | | Accounts payable | $204,675,277 | $168,314,912 | $36,360,365 | | Accrued liabilities | $128,326,091 | $84,377,764 | $43,948,327 | | Total current liabilities | $336,933,865 | $252,692,676 | $84,241,189 | | Total liabilities | $380,689,351 | $288,721,320 | $91,968,031 | | Total Shareholders' Investment | $2,430,637,724 | $2,472,099,655 | $(41,461,931) | [Unaudited Condensed Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) This section outlines Gentex Corporation's financial performance through its unaudited condensed consolidated statements of income - The unaudited condensed consolidated statements of income show an **increase in net sales and net income** for the three months ended June 30, 2025, compared to the same period in 2024, largely driven by the VOXX acquisition. For the six months, net sales increased, but net income slightly decreased[12](index=12&type=chunk) Income Statement Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------------- | :---------------- | :---------------- | :------- | :------- | | Net Sales | $657,858,210 | $572,925,778 | $84,932,432 | 14.8% | | Gross profit | $225,290,903 | $188,563,309 | $36,727,594 | 19.5% | | Income from operations | $118,520,135 | $114,884,022 | $3,636,113 | 3.2% | | Net Income Attributable to Gentex Corporation | $96,039,584 | $86,040,438 | $9,999,146 | 11.6% | | Basic EPS | $0.43 | $0.37 | $0.06 | 16.2% | | Diluted EPS | $0.43 | $0.37 | $0.06 | 16.2% | Income Statement Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------------- | :---------------- | :---------------- | :------- | :------- | | Net Sales | $1,234,631,300 | $1,163,150,989 | $71,480,311 | 6.1% | | Gross profit | $417,024,490 | $390,800,916 | $26,223,574 | 6.7% | | Income from operations | $231,507,241 | $244,230,334 | $(12,723,093) | -5.2% | | Net Income Attributable to Gentex Corporation | $190,913,629 | $194,271,153 | $(3,357,524) | -1.7% | | Basic EPS | $0.85 | $0.84 | $0.01 | 1.2% | | Diluted EPS | $0.85 | $0.84 | $0.01 | 1.2% | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents Gentex Corporation's unaudited condensed consolidated statements of comprehensive income - The unaudited condensed consolidated statements of comprehensive income show an **increase in comprehensive income** for both the three and six months ended June 30, 2025, compared to the prior year, primarily due to positive foreign currency translation adjustments and unrealized gains on debt securities, offsetting unrealized losses on derivatives[15](index=15&type=chunk) Comprehensive Income Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :---------------- | :---------------- | :------- | | Net income from consolidated operations | $95,650,450 | $86,040,438 | $9,610,012 | | Foreign currency translation adjustments | $2,109,011 | $(509,541) | $2,618,552 | | Unrealized losses on derivatives | $(1,245,367) | — | $(1,245,367) | | Unrealized gains on debt securities, net | $643,420 | $271 | $643,149 | | Comprehensive income from consolidated operations | $97,283,923 | $85,531,111 | $11,752,812 | Comprehensive Income Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :---------------- | :---------------- | :------- | | Net income from consolidated operations | $190,524,495 | $194,271,153 | $(3,746,658) | | Foreign currency translation adjustments | $1,763,781 | $(1,459,754) | $3,223,535 | | Unrealized losses on derivatives | $(1,245,367) | — | $(1,245,367) | | Unrealized gains on debt securities, net | $2,826,267 | $52,181 | $2,774,086 | | Comprehensive income from consolidated operations | $193,537,187 | $192,852,622 | $684,565 | [Unaudited Condensed Consolidated Statements of Shareholders' Investment](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Investment) This section details changes in Gentex Corporation's shareholders' investment over specified periods - The statements detail changes in shareholders' investment for the three and six months ended June 30, 2025 and 2024. The **total shareholders' investment decreased** for the six months ended June 30, 2025, primarily due to share repurchases and dividends, partially offset by net income[18](index=18&type=chunk) Shareholders' Investment Changes (Six Months Ended June 30, 2025) | Activity | Amount | | :------------------------------------------------ | :---------------- | | Balance as of January 1, 2025 | $2,472,099,655 | | Issuance of common stock from stock plan transactions | $6,350,684 | | Repurchases of common stock | $(202,167,048) | | Stock-based compensation expense | $16,160,289 | | Dividends declared ($0.24 per share) | $(53,321,754) | | Net income (loss) attributable to Gentex Corporation | $190,913,629 | | Other comprehensive income | $3,012,692 | | Balance as of June 30, 2025 | $2,430,637,724 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes Gentex Corporation's cash inflows and outflows from operating, investing, and financing activities - The statements show cash flows for the six months ended June 30, 2025 and 2024. **Net cash provided by operating activities increased**, while **net cash used for investing and financing activities also increased significantly**, leading to a **net decrease in cash and cash equivalents** for the 2025 period, primarily due to the VOXX acquisition and share repurchases[21](index=21&type=chunk) Cash Flow Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :---------------- | :---------------- | :------- | | Net cash provided by operating activities | $314,644,872 | $259,127,445 | $55,517,427 | | Net cash used for investing activities | $(181,358,214) | $(102,078,900) | $(79,279,314) | | Net cash used for financing activities | $(246,830,584) | $(123,241,613) | $(123,588,971) | | Net (decrease) increase in cash and cash equivalents | $(113,543,926) | $33,806,932 | $(147,350,858) | | Cash and cash equivalents, end of period | $119,774,840 | $260,241,951 | $(140,467,111) | - Key drivers for cash flow changes in H1 2025 include significant outflows for the **acquisition of businesses ($143.3 million)**, **repurchases of common stock ($198.9 million)**, and **cash dividends paid ($54.2 million)**[21](index=21&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited condensed consolidated financial statements - This section provides detailed explanations and disclosures for the unaudited condensed consolidated financial statements, covering accounting policies, recent accounting standard adoptions, specifics on goodwill, intangible assets, investments, inventories, earnings per share calculations, stock-based compensation, comprehensive income components, debt arrangements, equity changes, contingencies, segment reporting, income taxes, revenue disaggregation, leases, and significant acquisitions[23](index=23&type=chunk) [(1) Basis of Presentation](index=10&type=section&id=(1)%20Basis%20of%20Presentation) - The unaudited condensed consolidated financial statements are prepared under SEC rules and GAAP, with certain information condensed or omitted[23](index=23&type=chunk) - Management believes the statements fairly present the Company's financial position, results of operations, and cash flows, with all necessary adjustments being normal and recurring[23](index=23&type=chunk) [(2) Adoption of New Accounting Standards](index=10&type=section&id=(2)%20Adoption%20of%20New%20Accounting%20Standards) - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for the fiscal year ending December 31, 2025, requiring specific categories in rate reconciliation and additional information for significant reconciling items[24](index=24&type=chunk) - SEC Final Rule No. 33-11275 (Climate-Related Disclosures) is currently stayed by the SEC pending judicial review; the Company is evaluating its potential impact[25](index=25&type=chunk) - ASU No. 2024-03 (Disaggregation of Income Statement Expenses) is effective for fiscal years beginning after December 15, 2026, requiring tabular disaggregation of certain income statement expenses. The Company is evaluating its impact[26](index=26&type=chunk) - ASU 2025-03 (Business Combinations and Consolidation) is effective for annual periods beginning after December 15, 2026, providing guidance on determining the accounting acquirer in VIE acquisitions. The Company is evaluating its impact[27](index=27&type=chunk) [(3) Goodwill and Other Intangible Assets](index=11&type=section&id=(3)%20Goodwill%20and%20Other%20Intangible%20Assets) - **Goodwill remained stable at $340.7 million** as of June 30, 2025, with no interim impairment testing deemed necessary[28](index=28&type=chunk) Goodwill Carrying Value | Date | Amount | | :----------------- | :---------------- | | January 1, 2025 | $340,668,927 | | June 30, 2025 | $340,668,927 | - The Company's intangible assets, including HomeLink trade names, exclusive licensing agreements, and various technologies, totaled **$186.5 million net** as of June 30, 2025, a **decrease from $195.2 million** at December 31, 2024, primarily due to amortization[30](index=30&type=chunk)[31](index=31&type=chunk) - Amortization expense of patents and intangible assets was approximately **$4.7 million** for Q2 2025 (vs. **$4.4 million** in Q2 2024) and **$9.3 million** for H1 2025 (vs. **$8.7 million** in H1 2024). Estimated amortization expense for the remainder of 2025 is **$5.5 million**, and approximately **$3 million** for each of 2026-2029[31](index=31&type=chunk)[32](index=32&type=chunk) [(4) Investments](index=13&type=section&id=(4)%20Investments) - The Company's investment portfolio includes available-for-sale securities (government, asset-backed, municipal, and corporate bonds), an equity method investment in ASA, and strategic Technology Investments[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - The acquisition of VOXX on April 1, 2025, led to the reclassification of the VOXX investment and the acquisition of ASA. An **impairment charge of $6.2 million** was recorded for an equity method investment in Green Marbles LLC in Q2 2025 due to deteriorating financial performance[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) Investment (Loss) Income, Net | Period | 2025 | 2024 | | :-------------------------------- | :---------------- | :---------------- | | Three Months Ended June 30 | $(3,628,231) | $(12,393,771) | | Six Months Ended June 30 | $1,246,624 | $(15,762,295) | Fair Value Measurements (June 30, 2025) | Description | Total Fair Value | Level 1 | Level 2 | Level 3 | | :-------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Cash & Cash Equivalents | $119,774,840 | $119,774,840 | — | — | | Short-Term Investments | $9,067,033 | $966,611 | $8,100,422 | — | | Long-Term Investments | $101,010,623 | — | $101,010,623 | — | | **Total** | **$229,856,496** | **$120,741,451** | **$109,115,045** | **—** | - **Unrealized losses on available-for-sale securities totaled $1,202,448** as of June 30, 2025, compared to $1,968,473 at December 31, 2024[45](index=45&type=chunk) [(5) Inventories, net](index=18&type=section&id=(5)%20Inventories,%20net) - **Total inventories increased to $475.7 million** as of June 30, 2025, from $436.5 million at December 31, 2024, primarily driven by a **significant increase in finished goods**, partly due to the VOXX acquisition[47](index=47&type=chunk)[136](index=136&type=chunk) Inventories, net (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 | December 31, 2024 | Change | | :---------------- | :---------------- | :---------------- | :------- | | Raw materials | $282,343,416 | $307,098,829 | $(24,755,413) | | Work-in-process | $47,468,017 | $48,098,732 | $(630,715) | | Finished goods | $145,908,230 | $81,299,884 | $64,608,346 | | **Total Inventory** | **$475,719,663** | **$436,497,445** | **$39,222,218** | [(6) Earnings Per Share](index=18&type=section&id=(6)%20Earnings%20Per%20Share) - The Company calculates earnings per share using the two-class method due to unvested share-based payment awards with dividend rights[48](index=48&type=chunk) Basic and Diluted EPS (Three Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------- | :---------------- | :---------------- | | Net Income available to common shareholders | $94,627,353 | $84,837,701 | | Basic weighted average shares outstanding | 219,631,876 | 227,377,169 | | Net Income per share - Basic | $0.43 | $0.37 | | Net Income per share - Diluted | $0.43 | $0.37 | Basic and Diluted EPS (Six Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------- | :---------------- | :---------------- | | Net Income available to common shareholders | $187,439,850 | $191,488,981 | | Basic weighted average shares outstanding | 221,376,755 | 227,490,367 | | Net Income per share - Basic | $0.85 | $0.84 | | Net Income per share - Diluted | $0.85 | $0.84 | [(7) Stock-Based Compensation Plans](index=19&type=section&id=(7)%20Stock-Based%20Compensation%20Plans) - The Company recognized **$7.6 million in stock-based compensation expense** for Q2 2025 and **$16.3 million** for H1 2025, a decrease from the prior year[53](index=53&type=chunk) Total Stock-Based Compensation Expense | Period | 2025 | 2024 | | :-------------------------------- | :---------------- | :---------------- | | Three Months Ended June 30 | $7.6 million | $11.0 million | | Six Months Ended June 30 | $16.3 million | $21.5 million | - Unearned compensation costs as of June 30, 2025, include **$4.8 million for stock options**, **$56.1 million for restricted stock**, and **$13.1 million for performance shares**[56](index=56&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) [(8) Comprehensive Income (Loss)](index=21&type=section&id=(8)%20Comprehensive%20Income%20(Loss)) - Comprehensive income (loss) adjusts net income for non-owner sources, primarily unrealized gains/losses on debt securities, foreign currency translation adjustments, and derivative instruments[65](index=65&type=chunk) Net Current-Period Change in Accumulated Other Comprehensive Income (Loss) (Three Months Ended June 30, 2025) | Component | Amount | | :-------------------------------- | :---------------- | | Foreign currency translation adjustments | $2,109,011 | | Unrealized gains (losses) on debt securities | $508,302 | | Unrealized gains on derivatives | $(983,840) | - **Total accumulated other comprehensive loss at June 30, 2025, was $(3,396,649)**[66](index=66&type=chunk) [(9) Debt and Financing Arrangements](index=23&type=section&id=(9)%20Debt%20and%20Financing%20Arrangements) - The Company maintains a **$250.0 million unsecured revolving credit facility** with PNC, maturing in February 2026, with no outstanding balance as of June 30, 2025[68](index=68&type=chunk) - A subsidiary, VOXX (acquired April 1, 2025), has a **$3.9 million loan agreement** outstanding with shareholders of one of its joint ventures, secured by assets of its Onkyo subsidiary[70](index=70&type=chunk)[71](index=71&type=chunk) [(10) Equity](index=24&type=section&id=(10)%20Equity) - The Company's common stock decreased for the six months ended June 30, 2025, primarily due to **repurchases of 8.8 million shares**, partially offset by the issuance of **1.1 million shares** from stock plans, resulting in a **net decrease of 7.7 million shares**[72](index=72&type=chunk) - A cash dividend of **$0.120 per share** was declared in Q2 2025 (**$26.3 million**), consistent with Q2 2024[73](index=73&type=chunk) [(11) Contingencies](index=24&type=section&id=(11)%20Contingencies) - The Company is involved in various legal proceedings and claims in the normal course of business, including product liability and intellectual property matters[74](index=74&type=chunk) - Management does not believe any of these matters currently constitute material pending legal proceedings that would have a material adverse effect on the Company's financial position, results of operations, or cash flows[74](index=74&type=chunk) [(12) Segment Reporting](index=24&type=section&id=(12)%20Segment%20Reporting) - Effective April 1, 2025, following the VOXX acquisition, Gentex reorganized into nine operating segments under three reportable segments: Automotive Products, Premium Audio Products, and Other[76](index=76&type=chunk) Net Sales by Segment (Three Months Ended June 30) | Segment | 2025 | 2024 | | :---------------------- | :---------------- | :---------------- | | Automotive Products | $578,129,026 | $559,290,095 | | Premium Audio Products | $44,490,597 | — | | Other | $35,238,587 | $13,635,683 | | **Total** | **$657,858,210** | **$572,925,778** | Income (Loss) from Operations by Segment (Three Months Ended June 30) | Segment | 2025 | 2024 | | :---------------------- | :---------------- | :---------------- | | Automotive Products | $130,045,214 | $114,652,174 | | Premium Audio Products | $(2,086,649) | — | | Other | $(9,438,430) | $231,848 | | **Total** | **$118,520,135** | **$114,884,022** | [(13) Income Taxes](index=25&type=section&id=(13)%20Income%20Taxes) - The effective tax rate for Q2 2025 was **17.2%** (vs. 15.1% in Q2 2024) and for H1 2025 was **16.8%** (vs. 15.2% in H1 2024)[79](index=79&type=chunk) - The increase in effective tax rates was primarily due to lower tax benefits on stock-based compensation and reduced benefits from the foreign-derived intangible income (FDII) deduction in 2025[79](index=79&type=chunk) [(14) Revenue](index=26&type=section&id=(14)%20Revenue) - **Total revenue for Q2 2025 increased to $657.9 million** (from $572.9 million in Q2 2024), and for H1 2025 to **$1,234.6 million** (from $1,163.2 million in H1 2024), largely due to the VOXX acquisition[80](index=80&type=chunk) Total Revenue (Three Months Ended June 30) | Segment | 2025 | 2024 | | :---------------------- | :---------------- | :---------------- | | Automotive Products | $578,129,026 | $559,290,095 | | Premium Audio Products | $44,490,597 | — | | Other | $35,238,587 | $13,635,683 | | **Total Revenue** | **$657,858,210** | **$572,925,778** | Revenue by Major Source (Three Months Ended June 30, 2025) | Source | Amount | | :-------------------------- | :---------------- | | Automotive Mirrors & Electronics | $548,897,948 | | HomeLink Modules | $29,231,078 | | Premium Speaker Products | $32,430,491 | | Premium Receiver Products | $12,060,106 | | Fire Protection Products | $8,082,207 | | Aftermarket Products | $15,223,080 | | Consumer Electronic Products | $7,477,039 | - Assumed **$13.0 million in sales incentives liabilities** with the VOXX acquisition, accounted for as a reduction of net sales[83](index=83&type=chunk) [(15) Leases](index=28&type=section&id=(15)%20Leases) - The Company has operating leases for offices, vehicles, and equipment, with remaining terms ranging from less than 1 year to 7 years[84](index=84&type=chunk) - The **weighted average remaining lease term is 3 years**, with a **weighted average discount rate of 5.3%**[84](index=84&type=chunk) Future Minimum Lease Payments (as of June 30, 2025) | Year | Amount | | :------------------------------------------ | :---------------- | | 2025 (excluding H1 2025) | $1,945,507 | | 2026 | $2,960,319 | | 2027 | $2,135,249 | | 2028 | $1,645,337 | | 2029 | $772,904 | | Thereafter | $287,219 | | **Total future minimum lease payments** | **$9,746,535** | | Less imputed interest | $(729,590) | | **Total recognized lease liabilities** | **$9,016,945** | [(16) Acquisitions](index=28&type=section&id=(16)%20Acquisitions) - Gentex completed the acquisition of VOXX International Corporation on April 1, 2025, for **$148.3 million cash**, making it a wholly-owned subsidiary[86](index=86&type=chunk) - This strategic acquisition expands Gentex's portfolio into premium audio, automotive aftermarket electronics, consumer technologies, and enhances access to EyeLock iris biometric technology[89](index=89&type=chunk) - The Company also acquired GalvanEyes LLC in November 2024, gaining majority interest in BioCenturion, and subsequently acquired BioConnect Inc. on July 1, 2025, to further expand in the biometric industry[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - **Net sales attributable to VOXX in H1 2025 were $78.8 million**, with a **net loss of $4.0 million**. Acquisition costs for VOXX totaled **$3.1 million** in H1 2025[92](index=92&type=chunk) - GalvanEyes and BioCenturion contributed approximately **$1.1 million in revenue** and **$1.8 million in net loss** to H1 2025 results[95](index=95&type=chunk) - Acquisition costs for BioConnect totaled **$0.2 million** in H1 2025[99](index=99&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, and future outlook [RESULTS OF OPERATIONS: NON-GAAP MEASURES](index=33&type=section&id=RESULTS%20OF%20OPERATIONS:%20NON-GAAP%20MEASURES) This section introduces and explains the use of non-GAAP financial measures for evaluating core business performance - This subsection introduces the use of non-GAAP financial measures, such as Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income (Loss) from Operations, Adjusted Net Income (Loss) Attributable to Gentex Corporation, and Adjusted Earnings per Diluted Share Attributable to Gentex Corporation[100](index=100&type=chunk) - These non-GAAP measures are provided to help investors evaluate core business performance by excluding the impact of certain purchase price adjustments, acquisition-related costs, and severance costs, and are also used by management internally[100](index=100&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) [SECOND QUARTER 2025 VERSUS SECOND QUARTER 2024](index=33&type=section&id=SECOND%20QUARTER%202025%20VERSUS%20SECOND%20QUARTER%202024) This section analyzes Gentex Corporation's financial performance for Q2 2025 compared to Q2 2024 - Consolidated net sales for Q2 2025 **increased by 15% to $657.9 million**, with VOXX contributing **$78.8 million**. Core Gentex revenue increased **1%** despite a **2% decrease** in light vehicle production[101](index=101&type=chunk) - Gross margin improved to **34.2%** (**35.3% for core Gentex**), driven by cost reductions and improved product mix. Operating expenses rose **45%** due to the VOXX acquisition, acquisition-related costs, and severance expenses[106](index=106&type=chunk)[107](index=107&type=chunk) - Net income attributable to Gentex **increased 12% to $96.0 million**, and diluted EPS increased to **$0.43 from $0.37**[112](index=112&type=chunk)[113](index=113&type=chunk) Automotive Mirror Unit Shipments (Q2 2025 vs. Q2 2024, in thousands) | Metric | 2025 | 2024 | % Change | | :-------------------------- | :---- | :---- | :------- | | Total Auto-Dimming Mirror Units | 11,575 | 12,184 | (5)% | | Total Interior Mirrors | 7,534 | 7,535 | —% | | Total Exterior Mirrors | 4,041 | 4,649 | (13)% | [NON-GAAP FINANCIAL MEASURES](index=35&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES:) This section reconciles GAAP to non-GAAP financial measures for the three months ended June 30, 2025 - This section provides a reconciliation of GAAP to non-GAAP financial measures for the three months ended June 30, 2025. Adjustments primarily relate to inventory purchase price step-up, acquisition-related costs, and severance costs, aiming to provide a clearer view of core business performance[115](index=115&type=chunk)[118](index=118&type=chunk) Reconciliation of Non-GAAP Measures (Three Months Ended June 30, 2025) | Metric | GAAP | Adjustments | Non-GAAP | | :--------------------------------------- | :---------------- | :---------------- | :---------------- | | Gross Profit | $225,290,903 | $2,498,442 | $227,789,345 | | Gross Margin | 34.2% | N/A | 34.6% | | Operating Expenses | $106,770,768 | $(9,257,187) | $97,513,581 | | Income (Loss) from Operations | $118,520,135 | $11,755,629 | $130,275,764 | | Net Income Attributable to Gentex Corporation | $96,039,584 | $9,733,661 | $105,773,245 | | Diluted EPS | $0.43 | N/A | $0.47 | [SIX MONTHS ENDED JUNE 30, 2025 VERSUS SIX MONTHS ENDED JUNE 30, 2024](index=37&type=section&id=SIX%20MONTHS%20ENDED%20JUNE%2030,%202025%20VERSUS%20SIX%20MONTHS%20ENDED%20JUNE%2030,%202024) This section analyzes Gentex Corporation's financial performance for H1 2025 compared to H1 2024 - Consolidated net sales for H1 2025 **increased 6% to $1.23 billion**, with VOXX contributing **$78.8 million**. Core Gentex revenue **decreased 1%** due to lower China market sales and a **6% drop** in automotive mirror unit shipments[121](index=121&type=chunk)[122](index=122&type=chunk) - Gross margin slightly decreased to **66.2%** as a percentage of net sales, impacted by VOXX and tariffs. Operating expenses increased **26.6%** due to the VOXX acquisition, acquisition costs, and severance[124](index=124&type=chunk)[126](index=126&type=chunk) - Net income attributable to Gentex **decreased 2% to $190.9 million**, while diluted EPS slightly increased to **$0.85 from $0.84**[131](index=131&type=chunk)[132](index=132&type=chunk) [FINANCIAL CONDITION](index=39&type=section&id=FINANCIAL%20CONDITION:) This section discusses Gentex Corporation's financial position, including cash, receivables, inventories, and working capital - As of June 30, 2025, **cash and cash equivalents decreased by $113.5 million to $119.8 million**, primarily due to the VOXX acquisition, share repurchases, capital expenditures, and dividends[134](index=134&type=chunk) - Accounts receivable and inventories increased, while **working capital decreased to $725.0 million from $784.6 million**[136](index=136&type=chunk)[144](index=144&type=chunk) - The Company completed two building expansions in Q4 2024 (distribution center and manufacturing facility) and is constructing an on-site daycare, all funded by cash on hand[140](index=140&type=chunk)[141](index=141&type=chunk) Working Capital and Long-Term Investments | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------- | :---------------- | :---------------- | | Working Capital | $725,042,761 | $784,635,494 | | Fixed Income Long-Term Investments | $101,014,623 | $141,961,474 | | **Total** | **$826,057,384** | **$926,596,968** | [BUSINESS UPDATE](index=40&type=section&id=BUSINESS%20UPDATE) This section provides an update on Gentex Corporation's business performance and strategic initiatives - For Q2 2025, consolidated net sales **increased 15% to $657.9 million**, with core Gentex revenue up **1%** despite a **2% decrease** in global light vehicle production[145](index=145&type=chunk) - The Company launched **18 net new nameplates** for auto-dimming mirrors and electronic features, with over half including advanced features, bringing the total to **139 nameplates**[146](index=146&type=chunk) [PRODUCT UPDATE](index=40&type=section&id=PRODUCT%20UPDATE) This section details updates on Gentex Corporation's product lines, including new features and market expansions - China's new GB15084 regulations allow frameless inside mirrors, and the UN ECE is investigating glare, where auto-dimming mirrors can offer a solution[147](index=147&type=chunk)[148](index=148&type=chunk) - Full Display Mirror (FDM) production is shipping to **eighteen automakers and 139 nameplates**, with enhancements like a three-camera rear vision system and DVR capability with a new ReVu app[151](index=151&type=chunk)[152](index=152&type=chunk) - HomeLink is expanding with cloud-based connectivity and applications for various vehicle types, and the Integrated Toll Module (ITM) is shipping on Audi and Mercedes platforms[153](index=153&type=chunk) - Biometric solutions leveraging iris scanning are being integrated for vehicle security and personalization, with future plans to integrate with HomeLink[153](index=153&type=chunk) - The Company is providing variably dimmable windows for Boeing 787 Dreamliner and 777X aircraft, and Airbus now offers them as optional content[154](index=154&type=chunk) - Gentex is developing intelligent medical lighting systems with Mayo Clinic and has acquired eSight technology for low-vision smart glasses, with **e-Sight Go product shipments beginning in Q3 2024**[155](index=155&type=chunk)[156](index=156&type=chunk) - The PLACE fire protection product line, a suite of advanced smoke and carbon monoxide alarms, **began shipments in Q2 2025**[158](index=158&type=chunk) - The VOXX acquisition on April 1, 2025, strategically adds automotive OEM/aftermarket electronics, consumer technologies, and premium audio products to the portfolio[159](index=159&type=chunk) [OTHER](index=44&type=section&id=OTHER) This section addresses various other business aspects, including revenue composition, market challenges, and intellectual property - Automotive revenues constitute **88%-92% of total revenue**[160](index=160&type=chunk) - The Company faces ongoing challenges from tariffs, trade regulatory actions, pricing pressure from customers, and increased costs for raw materials, labor, and logistics[161](index=161&type=chunk) - It actively works to offset these pressures through cost reductions, productivity improvements, and customer negotiations[161](index=161&type=chunk) - The Company relies on patents and trade secrets for competitive advantage and does not have significant off-balance sheet arrangements[163](index=163&type=chunk)[164](index=164&type=chunk) [OUTLOOK](index=45&type=section&id=OUTLOOK) This section provides Gentex Corporation's revised full-year 2025 guidance and future market expectations - Gentex revised its full-year 2025 guidance due to reduced demand in the China market from counter-tariffs and the expected contribution from the VOXX acquisition[166](index=166&type=chunk) Light Vehicle Production Forecast (S&P Global Mobility, mid-July 2025) | Region | Q3 2025 vs Q3 2024 % Change | CY 2025 vs CY 2024 % Change | CY 2026 vs CY 2025 % Change | | :---------------- | :-------------------------- | :-------------------------- | :-------------------------- | | North America | —% | (4)% | (4)% | | Europe | (1)% | (3)% | —% | | Japan and Korea | 1% | (1)% | (4)% | | China | 1% | 4% | —% | | Total Global | —% | —% | (1)% | 2025 Annual Guidance (as of July 25, 2025) | Metric | Guidance | Previous Guidance | | :-------------------------------- | :---------------- | :---------------- | | Consolidated Revenue | $2.44 – $2.61 billion | $2.15 – $2.32 billion | | Gentex primary markets revenue | $2.10 – $2.20 billion | N/A | | Gentex China market revenue | $100 – $125 million | N/A | | VOXX Revenue estimate | $240 – $280 million | N/A | | Gross Margin (Consolidated) | 33% – 34% | N/A | | Gentex (stand-alone) Gross Margin | 34% – 34.5% | 33% – 34% | | VOXX (stand-alone) Gross Margin | 27% – 29% | N/A | | Operating Expenses (excl. severance) | $370 – $390 million | N/A | | Tax Rate | 16% – 17% | 15% – 17% | | Capital Expenditures | $100 – $125 million | Unchanged | | Depreciation & Amortization | $91 – $96 million | N/A | - The Company will continue to withhold 2026 revenue guidance due to ongoing geopolitical and market uncertainties[170](index=170&type=chunk) - A new share repurchase authorization of **40 million shares** was announced on July 16, 2025, bringing the total available for repurchase to approximately **40.6 million shares**[171](index=171&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=47&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES:) This section highlights the critical accounting policies requiring significant management estimates and assumptions - The preparation of financial statements requires management to make estimates and assumptions, which are continuously evaluated based on historical experience and reasonable assumptions[172](index=172&type=chunk) - While actual results have historically not differed materially, they may vary under different conditions. The Company refers to its Annual Report on Form 10-K for a comprehensive list of critical accounting policies[172](index=172&type=chunk)[173](index=173&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's exposure to market risks, including foreign exchange, interest rate, commodity, and tariff risks - The Company is subject to market risk exposures including foreign exchange rate risk, interest rate risk, commodity price risk, and tariffs[174](index=174&type=chunk) - Fluctuating interest rates could negatively impact financial performance due to realized losses on fixed income investments, impairment adjustments, and reduced demand for light vehicles[175](index=175&type=chunk) - Geopolitical environment, especially with China, and associated tariffs cause uncertainty, increase input costs, and disrupt automotive supply chains, negatively impacting the Company's business and financial condition[177](index=177&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and internal control over financial reporting - The Company's disclosure controls and procedures were evaluated and concluded to be effective as of June 30, 2025[178](index=178&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[179](index=179&type=chunk) [Part II - Other Information](index=49&type=section&id=Part%20II%20-%20Other%20Information) This section covers additional information including risk factors, equity security sales, exhibits, and official signatures [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Company's risk factors, noting no material changes except as described in this report - Information regarding risk factors appears in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I – Item 2 of this Form 10-Q and in Part I – Item 1A – Risk Factors of the Company's report on Form 10-K for the fiscal year ended December 31, 2024[183](index=183&type=chunk) - There have been no material changes to the risk factors previously disclosed in the Company's report on Form 10-K for the year ended December 31, 2024, except to the extent described in Part I – Item 2 and Item 3 of this Form 10-Q, and otherwise herein[183](index=183&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's share repurchase activities and available authorization for future repurchases - The Company repurchased **8.8 million shares of common stock** during the first six months of 2025 under its share repurchase plan[184](index=184&type=chunk) Share Repurchase Activity (Six Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share | | :---------------- | :------------------------------- | :------------------------------------ | | January 2025 | — | — | | February 2025 | 250,015 | $24.74 | | March 2025 | 2,850,336 | $24.50 | | April 2025 | 300,084 | $22.02 | | May 2025 | 2,400,790 | $22.39 | | June 2025 | 3,001,190 | $21.93 | | **2025 Total** | **8,802,415** | N/A | - As of June 30, 2025, **646,983 shares remained available for repurchase**. On July 16, 2025, a new authorization for **40 million shares** was announced, bringing the total available for repurchase to approximately **40.6 million shares**[185](index=185&type=chunk)[186](index=186&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section refers to the Exhibit Index for a comprehensive list of all accompanying exhibits - See Exhibit Index on Page 51 for a list of exhibits[187](index=187&type=chunk) [Signatures](index=50&type=section&id=Signatures) This section contains the official signatures certifying the report's compliance with regulatory requirements - The report is signed by Steven R. Downing (President and CEO) and Kevin C. Nash (VP, Finance, CFO, and Treasurer) on August 8, 2025[189](index=189&type=chunk) [Exhibit Index](index=51&type=section&id=Exhibit%20Index) This index lists all exhibits accompanying the Form 10-Q, including certifications and XBRL documents - The Exhibit Index includes CEO and CFO certifications (Exhibits 31.1, 31.2, 32) and Inline XBRL documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE)[191](index=191&type=chunk) ```

Core Insights - Gentex Corporation (GNTX) reported second-quarter 2025 adjusted earnings per share (EPS) of 47 cents, exceeding the Zacks Consensus Estimate of 40 cents and reflecting a year-over-year increase of 27.03% [1][10] - The company achieved net sales of $657.9 million, surpassing the Zacks Consensus Estimate of $584 million and marking a 14.8% increase from the previous year [2][10] - Gentex revised its 2025 revenue guidance upward to a range of $2.44-$2.61 billion, incorporating the VOXX acquisition and higher expected sales from China [7][10] Financial Performance - The gross margin for the quarter was reported at 34.2%, an increase of 130 basis points from the second quarter of 2024, attributed to reduced purchasing costs and operational efficiencies [2] - Total operating expenses rose by 43.8% year over year to $106.77 million, with engineering and R&D expenses increasing to $51.47 million and SG&A expenses rising to $48.52 million [5] - Gentex paid a dividend of 12 cents per share and repurchased 5.7 million shares at an average price of $22.13, with approximately 40.6 million shares authorized for repurchase as of July 25, 2025 [6] Segment Performance - The Automotive segment generated net sales of $566.5 million, up from $559.3 million in the prior year and exceeding estimates of $548.9 million [3] - Auto-dimming mirror shipments in North America decreased by 8% to 3,746,000 units, while international shipments fell by 4% to 7,830,000 units, leading to a total shipment decline of 5% to 11,575,000 units [3] - Other net sales, including dimmable aircraft windows and fire protection products, decreased from $13.6 million to $12.5 million, missing estimates of $17.1 million [4] Guidance and Projections - The company expects consolidated revenues for 2025 to be between $2.44 billion and $2.61 billion, with primary market sales projected at $2.10-$2.20 billion and China market sales revised to $100-$125 million [7] - The VOXX segment is anticipated to contribute sales in the range of $240-$280 million [7] - Gentex's gross margin is projected to be between 34% and 34.5%, with capital expenditures expected to be between $100 million and $125 million [8]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $657.9 million, a 15% increase year-over-year. Core Gentex revenue was $579 million, reflecting a 1% growth despite a 2% decline in light vehicle production [6][10] - Consolidated gross margin improved to 34.2% from 32.9% in the same quarter last year, while core Gentex gross margin rose to 35.3%, a 240 basis point improvement [7][10] - Consolidated net income increased by 12% to $96 million, with adjusted net income rising 23% to $105.8 million [10] Business Line Data and Key Metrics Changes - Gentex Automotive net sales were $566.5 million, impacted by lower-than-expected sales in China but offset by increased advanced feature mirror sales [11] - Revenue from other product lines, including dimmable aircraft windows and fire protection devices, decreased to $12.5 million from $13.6 million year-over-year [11] Market Data and Key Metrics Changes - Sales into China were approximately $33 million, significantly below the forecast of $50 million to $60 million due to tariffs and reduced demand [6][10] - The company expects light vehicle production in primary markets to decline by approximately 3% year-over-year for 2025, with North American production projected to fall by about 4% [25][26] Company Strategy and Development Direction - The company completed the acquisition of VOXX on April 1, focusing on aligning product strategies and optimizing customer relationships [5][11] - Gentex is committed to advancing its Full Display Mirror technology and investing in next-generation camera and display technologies [20][24] - The launch of the PLACE product line marks a significant milestone in expanding Gentex's presence in the smart home market [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the China market due to tariffs and decreasing OEM profitability, leading to decontenting of features [38][82] - The company revised its full-year 2025 revenue guidance to a range of $2.44 billion to $2.61 billion, reflecting the impact of tariffs and the VOXX acquisition [26][27] - Management expressed optimism about margin improvement initiatives and operational efficiencies, targeting a long-term gross margin of 35% to 36% [29][90] Other Important Information - The company repurchased 5.7 million shares at an average price of $22.13 per share during the quarter, with a total of 8.8 million shares repurchased year-to-date [12] - Cash and cash equivalents decreased to $119.8 million from $233.3 million at year-end, primarily due to the VOXX acquisition and share repurchases [14] Q&A Session Summary Question: Insights on gross margin improvement - Management noted that gross margin improvements are a result of internal efforts and operational efficiencies, with expectations for continued positive trends in the second half of the year [33][34] Question: Strategic outlook for the China market - The biggest challenge in China is the impact of counter tariffs, leading to reduced sales and decontenting by OEMs [36][38] Question: Updates on larger devices and production timelines - Management is optimistic about bringing large area devices to production within the next 24 months, with potential for earlier timelines [40] Question: VOXX revenue and operational synergies - Management expects to achieve operational synergies and cost savings from the VOXX acquisition over the next 12 to 18 months [46] Question: Future margin expectations for VOXX - Management anticipates a 200 to 300 basis point improvement in VOXX's gross margin over the next two years [72] Question: Core Gentex mirror business production outlook - Management expects Q3 production to be similar to Q2, with potential softening in Q4 due to market conditions [55] Question: Factors affecting the China market recovery - Management identified decontenting as the primary reason for the lack of recovery in the China market, alongside local competition and existing inventory [82]

Core Insights - Gentex (GNTX) reported revenue of $657.86 million for Q2 2025, a year-over-year increase of 14.8% and an EPS of $0.47, up from $0.37 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $583.51 million by 12.74%, and the EPS also surpassed the consensus estimate of $0.40 by 17.5% [1] Financial Performance Metrics - Gentex's stock has returned +8% over the past month, outperforming the Zacks S&P 500 composite's +4.6% change [3] - The company holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3] Auto-Dimming Mirror Shipments - Total Interior Mirrors shipped: 7.53 million, exceeding the average estimate of 7.46 million [4] - Total Exterior Mirrors shipped: 4.04 million, below the average estimate of 4.34 million [4] - Total Auto-Dimming Mirror Units shipped: 11.58 million, slightly below the average estimate of 11.8 million [4] - North American Mirror Units shipped: 3.75 million, below the average estimate of 3.94 million [4] - International Exterior Mirrors shipped: 2.52 million, below the average estimate of 2.72 million [4] - North American Exterior Mirrors shipped: 1.52 million, below the average estimate of 1.63 million [4] - Total International Mirror Units shipped: 7.83 million, slightly below the average estimate of 7.86 million [4] - International Interior Mirrors shipped: 5.31 million, above the average estimate of 5.14 million [4] - North American Interior Mirrors shipped: 2.22 million, below the average estimate of 2.32 million [4] Revenue Breakdown - Revenue from Other products: $12.5 million, below the average estimate of $16.14 million, representing an 8.1% decrease year-over-year [4] - Revenue from Automotive Products: $566.5 million, slightly below the average estimate of $574.89 million, with a year-over-year increase of 1.3% [4]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2025 were $657.9 million, a 15% increase year-over-year [6] - Core Gentex revenue was $579 million, reflecting a 1% growth despite a 2% decline in light vehicle production [6] - Consolidated gross margin improved to 34.2% from 32.9% in the previous year [7] - Consolidated net income increased by 12% to $96 million, with adjusted net income rising 23% to $105.8 million [11] - Earnings per share (EPS) rose 16% to $0.43, and adjusted EPS increased 27% to $0.47 [11] Business Line Data and Key Metrics Changes - Gentex Automotive net sales were $566.5 million, impacted by lower sales in China but offset by advanced feature mirror sales [12] - Revenue from other product lines decreased to $12.5 million from $13.6 million year-over-year [12] - VOXX contributed $78.8 million in net sales during the quarter [12] Market Data and Key Metrics Changes - Sales into China were approximately $33 million, significantly below the forecast of $50 million to $60 million [6] - The company anticipates a decline in light vehicle production in primary markets by approximately 1% in Q3 and 6% in Q4 [26] Company Strategy and Development Direction - The company completed the acquisition of VOXX and is focusing on aligning product strategies and optimizing customer relationships [5][12] - Gentex is committed to advancing Full Display Mirror technology and investing in next-generation camera and display technologies [21] - The launch of the PLACE product line marks a significant milestone in expanding Gentex's presence in the smart home market [24] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to tariffs and reduced demand in China, but operational efficiencies are improving [30] - The company revised its full-year 2025 revenue guidance to between $2.44 billion and $2.61 billion, reflecting the impact of tariffs and the VOXX acquisition [27] - The effective tax rate is expected to be between 16% and 17%, up from previous estimates [28] Other Important Information - The company repurchased 5.7 million shares at an average price of $22.13 per share during the quarter [13] - Cash and cash equivalents decreased to $119.8 million from $233.3 million at year-end, primarily due to the VOXX acquisition and share repurchases [14] Q&A Session Summary Question: Insights on gross margin improvement - Management indicated that margin improvement efforts are showing positive results, with operational efficiencies contributing significantly [34][35] Question: Strategic thoughts on the China market - The primary challenge in China is decontenting due to OEM profitability pressures, with tariffs also impacting sales [39][40] Question: Updates on larger devices and production timelines - Management expressed confidence in achieving production within the next 24 months, with potential for earlier success [41][42] Question: VOXX revenue and operational synergies - Management highlighted potential synergies from combining operations, with expectations for improved operating expenses over time [44][45] Question: Core Gentex mirror business production outlook - Management expects Q3 production to be similar to Q2, with anticipated softening in Q4 [53] Question: Future revenue expectations from China - Management projected a decline in China sales, estimating a run rate of approximately $25 million per quarter in the back half of the year [63] Question: Tariff reimbursement expectations - Management expects to recover most, if not all, of the unreimbursed tariff costs from the previous quarter [83]

Core Viewpoint - Gentex (GNTX) reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and showing an increase from $0.37 per share a year ago, representing an earnings surprise of +17.50% [1][2] Financial Performance - The company posted revenues of $657.86 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 12.74%, compared to $572.93 million in the same quarter last year [2] - Over the last four quarters, Gentex has exceeded consensus EPS estimates two times and topped revenue estimates once [2] Stock Performance - Gentex shares have declined approximately 17.9% since the beginning of the year, while the S&P 500 has gained 8.2% [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 $0.48 on revenues of $628.81 million, and for the current fiscal year, it is $1.73 on revenues of $2.38 billion [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 in the top 35% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Gentex reported strong Q2 2025 financial results, with consolidated net sales increasing 15% and diluted EPS rising by 16%, driven by the VOXX acquisition and improved margins [Financial Summary](index=1&type=section&id=Financial%20Summary) Gentex reported strong Q2 2025 financial results, with consolidated net sales increasing 15% to $657.9 million, primarily driven by the VOXX acquisition Financial Summary Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Net Sales | $657.9 million | $572.9 million | 15% | | Core Gentex Net Sales (excl. VOXX) | $579.0 million | N/A | 1% | | Consolidated Gross Margin | 34.2% | 32.9% | +130 bps | | Core Gentex Gross Margin (excl. VOXX) | 35.3% | 32.9% | +240 bps | | Consolidated Net Income Attributable to Gentex | $96.0 million | $86.0 million | 12% | | Consolidated Diluted EPS Attributable to Gentex | $0.43 | $0.37 | 16% | | Consolidated Adjusted Diluted EPS Attributable to Gentex | $0.47 | N/A | 27% | - VOXX acquisition, completed on April 1, 2025, contributed **$78.8 million** of revenue for the second quarter of 2025[4](index=4&type=chunk) - The Company repurchased **5.7 million shares** totaling **$126.2 million** during the quarter[5](index=5&type=chunk) [Detailed Financial Performance (Q2 2025 vs Q2 2024)](index=1&type=section&id=Detailed%20Financial%20Performance) The company's detailed financial performance for Q2 2025 shows significant growth in net sales and gross margin, alongside increased operating expenses due to the VOXX acquisition [Net Sales Analysis](index=1&type=section&id=Net%20Sales%20Analysis) Consolidated net sales increased by 15% year-over-year, largely due to the VOXX acquisition Net Sales Performance | Metric | Q2 2025 | Q2 2024 | % Change | Notes | | :--- | :--- | :--- | :--- | :--- | | Consolidated Net Sales | $657.9 million | $572.9 million | 15% | Includes VOXX | | Core Gentex Net Sales | $579.0 million | N/A | 1% | Excludes VOXX | - VOXX contributed **$78.8 million** in revenue for the second quarter of 2025[4](index=4&type=chunk) - Light vehicle production in the Company's primary markets decreased by approximately **2%** versus the second quarter of 2024[4](index=4&type=chunk) [Gross Margin Analysis](index=1&type=section&id=Gross%20Margin%20Analysis) Consolidated gross margin improved to 34.2%, and core Gentex gross margin significantly increased by 240 basis points to 35.3% year-over-year Gross Margin Performance | Metric | Q2 2025 | Q2 2024 | Change (bps) | | :--- | :--- | :--- | :--- | | Consolidated Gross Margin | 34.2% | 32.9% | +130 | | Core Gentex Gross Margin (excluding VOXX) | 35.3% | 32.9% | +240 | | Consolidated Adjusted Gross Margin | 34.6% | N/A | N/A | - The quarter-over-quarter improvement in gross margin was primarily driven by purchasing cost reductions, improved mix, and operational efficiencies, partially offset by tariff-related costs[6](index=6&type=chunk) - Core Gentex gross margin (excluding VOXX) increased **210 basis points** sequentially from the first quarter of 2025[5](index=5&type=chunk)[6](index=6&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Consolidated operating expenses increased significantly due to the VOXX acquisition and one-time acquisition and severance costs Operating Expenses Overview | Metric | Q2 2025 | Q2 2024 | Change | Notes | | :--- | :--- | :--- | :--- | :--- | | Consolidated Operating Expenses | $106.8 million | $73.7 million | +$33.1 million | Includes VOXX | | VOXX contribution to increase | $23.9 million | N/A | N/A | Excl. acquisition/severance | | Acquisition-related costs | $2.5 million | — | N/A | Consolidated | | Severance-related expenses | $6.8 million | — | N/A | Consolidated | | Core Gentex Operating Expenses (excl. VOXX) | $80.7 million | $73.7 million | +$7.0 million | | - Core Gentex operating expenses, when adjusted for one-time acquisition and severance costs, were down slightly on a quarter-over-quarter basis[9](index=9&type=chunk) [Income from Operations](index=3&type=section&id=Income%20from%20Operations) Consolidated income from operations saw a modest increase, while core Gentex income from operations grew by 8%, and 14% on an adjusted basis, reflecting strong underlying performance Income from Operations Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Income from Operations | $118.5 million | $114.9 million | 3.1% | | Core Gentex Income from Operations (excl. VOXX) | $123.8 million | N/A | 8% | | Core Gentex Adjusted Income from Operations | $130.9 million | N/A | 14.0% | - Adjusted income from operations excludes one-time expenses incurred during the quarter[9](index=9&type=chunk) [Other Income/Loss & Tax Rate](index=3&type=section&id=Other%20Income%2FLoss%20%26%20Tax%20Rate) The company reported a lower total other loss compared to the prior year, despite an impairment related to an equity method investment Other Income/Loss and Tax Rate | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Other Loss | $3.0 million | $13.6 million | | Effective Tax Rate | 17.2% | 15.1% | - Q2 2025 other loss included an impairment of **$6.2 million** related to one of the Company's equity method investments[10](index=10&type=chunk) - The quarter-over-quarter change in the effective tax rate was primarily driven by lower tax benefits related to stock-based compensation and a reduced benefit from the Foreign-Derived Intangible Income (FDII) deduction[11](index=11&type=chunk) [Net Income & EPS](index=3&type=section&id=Net%20Income%20%26%20EPS) Consolidated net income attributable to Gentex increased by 12%, and diluted EPS rose by 16% Net Income and EPS Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Net Income Attributable to Gentex | $96.0 million | $86.0 million | 12% | | Consolidated Adjusted Net Income Attributable to Gentex | $105.8 million | N/A | 23% | | Consolidated Diluted EPS Attributable to Gentex | $0.43 | $0.37 | 16% | | Consolidated Adjusted Diluted EPS Attributable to Gentex | $0.47 | N/A | 27% | - The improvement in net income was primarily driven by higher income from operations, supported by gross margin expansion and slightly lower operating expenses[12](index=12&type=chunk) - Adjusted figures exclude acquisition-related expenses and severance costs[12](index=12&type=chunk)[13](index=13&type=chunk) [Revenue by Product Category](index=4&type=section&id=Revenue%20By%20Category) Revenue analysis by product category highlights the impact of the VOXX acquisition, alongside varied performance in Gentex Automotive and Other product lines [Gentex Automotive](index=4&type=section&id=Gentex%20Automotive) Gentex Automotive net sales were $566.5 million, negatively impacted by lower-than-expected sales in China due to counter-tariffs, but offset by increased advanced feature mirror sales Gentex Automotive Net Sales | Metric | Q2 2025 | | :--- | :--- | | Gentex Automotive Net Sales | $566.5 million | - Sales into China for Gentex during the quarter were approximately **$33 million**, compared to a beginning-of-year forecast of **$50 to $60 million**[6](index=6&type=chunk) - Increased advanced feature mirror sales (Full Display Mirror - FDM) more than offset the negative effects of lower sales into the China market[6](index=6&type=chunk)[14](index=14&type=chunk) [Gentex Other Product Lines](index=4&type=section&id=Gentex%20Other) Net sales from Gentex's Other product lines, which include dimmable aircraft windows, fire protection products, medical devices, and biometrics, decreased slightly year-over-year Gentex Other Net Sales | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gentex Other Net Sales | $12.5 million | $13.6 million | [VOXX Contribution](index=4&type=section&id=VOXX) VOXX, acquired on April 1, 2025, contributed $78.8 million in net sales during Q2 2025, with the company focusing on post-acquisition integration, product strategy alignment, and operational synergies VOXX Net Sales Contribution | Metric | Q2 2025 | | :--- | :--- | | VOXX Net Sales Contribution | $78.8 million | - The Company continues to work through the post-acquisition transition, with a focus on aligning product strategies, optimizing customer relationships, and identifying operational synergies[16](index=16&type=chunk) [Capital Allocation](index=4&type=section&id=Share%20Repurchases) Gentex demonstrated commitment to capital allocation through significant share repurchases and a new authorization for future buybacks [Share Repurchases](index=4&type=section&id=Share%20Repurchases) Gentex repurchased 5.7 million shares for $126.2 million in Q2 2025 and authorized an additional 40 million shares for future repurchases Share Repurchase Activity | Metric | Q2 2025 | Year-to-Date 2025 | | :--- | :--- | :--- | | Shares Repurchased | 5.7 million | 8.8 million | | Total Value | $126.2 million | $202.2 million | | Average Price per Share | $22.13 | $22.97 | - A new share repurchase authorization of an additional **40 million shares** was announced on July 16, 2025, representing more than **18%** of outstanding shares[17](index=17&type=chunk) - The Company intends to continue repurchasing shares in support of its capital allocation strategy, with variations based on macroeconomic issues, market trends, and other factors[17](index=17&type=chunk) [Outlook and Guidance](index=4&type=section&id=Future%20Estimates) The company revised its 2025 annual guidance based on updated light vehicle production forecasts and the VOXX acquisition, while withholding 2026 guidance due to market uncertainties [Light Vehicle Production Forecast](index=5&type=section&id=Light%20Vehicle%20Production%20Forecast) Based on the mid-July 2025 S&P Global Mobility outlook, global light vehicle production is expected to be relatively flat in Q3 2025, but decline in Q4 2025 and for the full year 2025 Light Vehicle Production Forecast Summary | Region | Q3 2025 vs Q3 2024 | Full Year 2025 vs 2024 | | :--- | :--- | :--- | | Global LV Production (Q3) | Flat | N/A | | Primary Markets LV Production (Q3) | Down ~1% | Down 3% | | Global LV Production (Q4) | Down ~6% | N/A | | North America LV Production (2025) | N/A | Down ~4% | Detailed Light Vehicle Production Forecast | Region | Q3 2025 (Millions) | Q3 2024 (Millions) | % Change (QoQ) | Calendar Year 2025 (Millions) | Calendar Year 2024 (Millions) | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North America | 3.78 | 3.77 | —% | 14.85 | 15.45 | (4)% | | Europe | 3.69 | 3.73 | (1)% | 16.74 | 17.17 | (3)% | | Japan and Korea | 2.92 | 2.90 | 1% | 11.87 | 11.98 | (1)% | | China | 7.36 | 7.30 | 1% | 31.23 | 30.09 | 4% | | Total Light Vehicle Production | 17.75 | 17.70 | —% | 74.69 | 74.69 | —% | - Full-year 2025 production in the Company's primary markets is expected to be down **3%** year-over-year, a notable downgrade from earlier forecasts[19](index=19&type=chunk) [2025 Annual Guidance (as of July 25, 2025)](index=5&type=section&id=2025%20Annual%20Guidance) Gentex has revised its full-year 2025 guidance, reflecting updated light vehicle production forecasts, Q1 2025 results, reduced demand in China due to tariffs, and the expected contribution from the VOXX acquisition 2025 Annual Guidance Metrics | Metric | New Consolidated Guidance | Previous Guidance | Notes | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $2.44 – $2.61 billion | $2.15 – $2.32 billion | Includes VOXX | | Gentex primary markets Revenue | $2.10 – $2.20 billion | N/A | | | Gentex China market Revenue | $100 – $125 million | N/A | | | VOXX Revenue estimate | $240 – $280 million | N/A | | | Gross Margin | 33% – 34% | N/A | Consolidated | | Gentex (stand-alone) Gross Margin | 34% – 34.5% | 33% – 34% | | | VOXX (stand-alone) Gross Margin | 27% – 29% | N/A | | | Operating Expenses (excl. severance) | $370 – $390 million | N/A | Consolidated | | Gentex Operating Expenses | $300 – $310 million | Unchanged | | | VOXX Operating Expenses | $70 – $80 million | N/A | | | Tax Rate | 16% – 17% | 15% – 17% | | | Capital Expenditures | $100 – $125 million | Unchanged | | | Depreciation & Amortization | $91 – $98 million | N/A | Consolidated | | Gentex D&A | $90 – $95 million | N/A | | | VOXX D&A | $1 – $3 million | N/A | | - The updated guidance reflects the anticipated impact of all known tariffs effective as of July 25, 2025[19](index=19&type=chunk) [2026 Guidance Status](index=6&type=section&id=2026%20Guidance%20Status) The company will withhold revenue guidance for calendar year 2026 due to the current geopolitical environment, tariff landscape, and evolving customer sourcing strategies, awaiting clearer visibility - The Company will continue to withhold revenue guidance for calendar year 2026 until it has the required visibility needed to support future guidance[21](index=21&type=chunk) [Management Commentary](index=6&type=section&id=Closing%20Remarks) Management commentary emphasizes strong operational performance, strategic integration of VOXX, and continued progress in advanced technology development despite market challenges [CEO's Remarks](index=6&type=section&id=CEO%27s%20Remarks) CEO Steve Downing highlighted a productive quarter despite global trade uncertainty and lower light vehicle production, emphasizing progress on profitability, operational efficiency, and margin improvement initiatives, alongside VOXX integration efforts - The second quarter was productive, with continued progress on the path to improved profitability, despite global trade uncertainty and lower than expected light vehicle production[22](index=22&type=chunk) - Operational efficiency is improving significantly, driving strong revenue and profitability improvements[22](index=22&type=chunk) - The Company will continue executing margin improvement initiatives targeted to achieve a core margin profile of **35-36%**[22](index=22&type=chunk) - Working with the VOXX team to ensure the combined organization is appropriately structured to support long-term profitability and shareholder value[22](index=22&type=chunk) [CTO/COO's Remarks](index=6&type=section&id=CTO%2FCOO%27s%20Remarks) CTO and COO Neil Boehm noted significant strides in large area device development for dimmable glass applications and continued progress on Driver Monitoring System (DMS) platforms for key customers, expressing confidence in the technology roadmap - Significant strides in the development of large area devices, creating opportunities for dimmable visor, sunroof, side-window, and panoramic roof applications globally[23](index=23&type=chunk) - Continued progress on launches of Driver Monitoring System (DMS) platforms for four key customers, driven by accelerating demand for safety and driver-assist technology[23](index=23&type=chunk) - Confidence in the strength of the technology roadmap and the team's ability to deliver scalable technology platforms[23](index=23&type=chunk) [Additional Information](index=6&type=section&id=Additional%20Information) This section provides essential disclaimers for forward-looking statements, details for the quarterly conference call, and an overview of Gentex Corporation [Safe Harbor for Forward-Looking Statements](index=6&type=section&id=Safe%20Harbor%20for%20Forward-Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, outlining various risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, including changes in industry conditions, consumer preferences, competition, supply shortages, and tariffs[25](index=25&type=chunk)[26](index=26&type=chunk) - Readers are cautioned not to place undue reliance on these statements and should read them in conjunction with additional information about risks and uncertainties identified in the Company's latest Form 10-K and Form 10-Q[25](index=25&type=chunk)[26](index=26&type=chunk) [Second Quarter Conference Call](index=7&type=section&id=Second%20Quarter%20Conference%20Call) Details for the live simulcast conference call on July 25, 2025, including registration and audio streaming links, and information about the webcast replay - A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, July 25, 2025[27](index=27&type=chunk) - Participants can register for the call at https://register-conf.media-server.com/register/BIf7f0798ab37d4c09a79f5e827fe371a6 or listen via audio streaming at https://edge.media-server.com/mmc/p/93tvjya6/[27](index=27&type=chunk)[28](index=28&type=chunk) - 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[28](index=28&type=chunk) [About the Company](index=8&type=section&id=About%20the%20Company) Gentex Corporation, founded in 1974, is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics - Gentex Corporation (NASDAQ: GNTX) is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics[2](index=2&type=chunk)[29](index=29&type=chunk) [Financial Statements and Non-GAAP Reconciliation](index=9&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliation) Detailed financial statements and non-GAAP reconciliations provide a comprehensive view of the company's Q2 2025 performance, balance sheet, and adjusted financial metrics [Auto-Dimming Mirror Shipments](index=9&type=section&id=AUTO-DIMMING%20MIRROR%20SHIPMENTS) Total auto-dimming mirror unit shipments decreased by 5% in Q2 2025 and 6% year-to-date, primarily driven by declines in North American and International Exterior Mirrors Auto-Dimming Mirror Shipments | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | % Change (QoQ) | YTD 2025 (Thousands) | YTD 2024 (Thousands) | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North American Interior Mirrors | 2,221 | 2,346 | (5)% | 4,470 | 4,608 | (3)% | | North American Exterior Mirrors | 1,524 | 1,705 | (11)% | 2,895 | 3,326 | (13)% | | Total North American Mirror Units | 3,746 | 4,051 | (8)% | 7,365 | 7,934 | (7)% | | International Interior Mirrors | 5,313 | 5,189 | 2% | 10,453 | 10,744 | (3)% | | International Exterior Mirrors | 2,517 | 2,944 | (15)% | 5,300 | 5,978 | (11)% | | Total International Mirror Units | 7,830 | 8,133 | (4)% | 15,753 | 16,721 | (6)% | | Total Interior Mirrors | 7,534 | 7,535 | —% | 14,923 | 15,352 | (3)% | | Total Exterior Mirrors | 4,041 | 4,649 | (13)% | 8,194 | 9,304 | (12)% | | **Total Auto-Dimming Mirror Units** | **11,575** | **12,184** | **(5)%** | **23,118** | **24,655** | **(6)%** | [Condensed Consolidated Statements of Income](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated statements of income show significant increases in net sales and gross profit for both the three and six months ended June 30, 2025, largely influenced by the VOXX acquisition Three Months Ended June 30, 2025 and 2024 (Consolidated) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Sales | $657,858,210 | $572,925,778 | | Gross Profit | $225,290,903 | $188,563,309 | | Operating Expenses | $106,770,768 | $73,679,287 | | Income from Operations | $118,520,135 | $114,884,022 | | Net Income Attributable to Gentex Corporation | $96,039,584 | $86,040,438 | | Diluted EPS | $0.43 | $0.37 | Six Months Ended June 30, 2025 and 2024 (Consolidated) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Sales | $1,234,631,300 | $1,163,150,989 | | Gross Profit | $417,024,490 | $390,800,916 | | Operating Expenses | $185,517,249 | $146,570,582 | | Income from Operations | $231,507,241 | $244,230,334 | | Net Income Attributable to Gentex Corporation | $190,913,629 | $194,271,153 | | Diluted EPS | $0.85 | $0.84 | - VOXX contributed **$78,833,552** to Net Sales for both the three and six months ended June 30, 2025[32](index=32&type=chunk)[33](index=33&type=chunk) - Severance Expense of **$6,784,136** was incurred in Q2 2025 and **$9,673,248** year-to-date 2025[32](index=32&type=chunk)[33](index=33&type=chunk) [Condensed Consolidated Balance Sheets](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet as of June 30, 2025, shows an increase in total assets, primarily driven by increases in accounts receivable, inventories, and plant and equipment, while cash and short-term investments decreased Condensed Consolidated Balance Sheets | Asset/Liability | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $2,813,817,336 | $2,760,820,975 | | Cash and Cash Equivalents | $119,774,840 | $233,318,766 | | Accounts Receivable, net | $372,961,789 | $295,344,353 | | Inventories | $475,719,663 | $436,497,445 | | Plant and Equipment - Net | $783,863,952 | $728,481,467 | | Total Current Liabilities | $336,933,865 | $252,692,676 | | Shareholders' Investment | $2,430,637,724 | $2,472,099,655 | - Goodwill remained unchanged at **$340,668,927**[35](index=35&type=chunk) - Long-Term Investments decreased from **$339,604,044** at December 31, 2024, to **$267,045,895** at June 30, 2025[35](index=35&type=chunk) [Reconciliation of Non-GAAP Measures](index=13&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES) This section provides reconciliations of non-GAAP financial measures to their closest GAAP equivalents, primarily by excluding purchase price adjustments, acquisition-related costs, and severance costs - Non-GAAP financial measures (Adjusted Gross Profit, Gross Margin, Operating Expenses, Income from Operations, Net Income, and Diluted EPS) are presented to provide insight into the Company's core performance and trends[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) - Adjustments for Q2 2025 primarily exclude inventory purchase price step-up adjustments (ASC 805), acquisition-related costs, and severance costs[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) Q2 2025 Adjusted Non-GAAP Metrics (Consolidated) | Metric | GAAP (Q2 2025) | Adjustments | Non-GAAP (Q2 2025) | | :--- | :--- | :--- | :--- | | Gross Profit | $225,290,903 | +$2,498,442 | $227,789,345 | | Gross Margin | 34.2% | N/A | 34.6% | | Operating Expenses | $106,770,768 | -$9,257,187 | $97,513,581 | | Income from Operations | $118,520,135 | +$11,755,629 | $130,275,764 | | Net Income Attributable to Gentex | $96,039,584 | +$9,733,661 | $105,773,245 | | Diluted EPS | $0.43 | N/A | $0.47 |

Core Insights - Gentex Corporation reported a consolidated net sales of $657.9 million for Q2 2025, a 15% increase from $572.9 million in Q2 2024, driven by the acquisition of VOXX which contributed $78.8 million in revenue [3][4][9] - Core Gentex revenue, excluding VOXX, was $579.0 million, reflecting a 1% increase despite a 2% decline in light vehicle production in primary markets [3][4][9] - The consolidated gross margin improved to 34.2%, up from 32.9% in Q2 2024, while the core Gentex gross margin reached 35.3%, a 240 basis-point increase [3][4][9] Financial Performance - Consolidated net income attributable to Gentex was $96.0 million, a 12% increase compared to $86.0 million in Q2 2024 [9][10] - Earnings per diluted share attributable to Gentex increased by 16% to $0.43 from $0.37 in Q2 2024, with adjusted earnings per diluted share rising 27% to $0.47 [10][9] - Operating expenses for Q2 2025 were $106.8 million, up from $73.7 million in Q2 2024, primarily due to the VOXX acquisition [5][6] Market Dynamics - Sales into the China market were approximately $33 million, significantly below the forecast of $50 to $60 million, impacted by tariffs and counter-tariffs [3][4] - The company anticipates a 3% decline in full-year 2025 production in primary markets, with North America projected to fall approximately 4% [16][17] Future Guidance - The updated consolidated revenue guidance for 2025 is set between $2.44 billion and $2.61 billion, an increase from the previous range of $2.15 billion to $2.32 billion [17] - The company will withhold revenue guidance for 2026 due to the current geopolitical and tariff landscape [18] Share Repurchase Activity - During Q2 2025, the company repurchased 5.7 million shares for a total of $126.2 million, with a new authorization for an additional 40 million shares [15]

Core Insights - Value investing remains a preferred strategy for identifying strong stocks across various market conditions [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category [3] Company Analysis: Gentex (GNTX) - Gentex (GNTX) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong value potential [4] - The Forward P/E ratio for GNTX is 12.93, significantly lower than the industry average of 21.78, with a 52-week range of 10.60 to 15.46 [4] - GNTX's PEG ratio stands at 1.07, compared to the industry average of 1.36, with a 52-week range of 0.75 to 1.08 [5] - The P/B ratio for GNTX is 2.1, which is attractive compared to the industry average of 3.68, with a 12-month range of 1.89 to 3.32 [6] Company Analysis: Gentherm (THRM) - Gentherm (THRM) has a Zacks Rank of 1 (Strong Buy) and a Value score of A, indicating strong value characteristics [7] - THRM's P/B ratio is 1.47, also lower than the industry average of 3.68, with a 52-week range of 1.11 to 2.70 [7] Overall Value Assessment - Both GNTX and THRM are considered undervalued based on their financial metrics, supported by a strong earnings outlook [8]

Core Viewpoint - Gentex (GNTX) is expected to report quarterly earnings of $0.40 per share, an increase of 8.1% year-over-year, with revenues projected at $576.51 million, reflecting a 0.6% increase compared to the same period last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate for the quarter has been revised upward by 0.5%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts forecast 'Revenue- Other' to reach $16.14 million, representing an 18.7% increase from the prior-year quarter [4]. - The consensus estimate for 'Revenue- Automotive Products' is $574.89 million, indicating a 2.8% increase from the year-ago quarter [5]. Shipment Estimates - 'Auto-Dimming Mirror Shipments - Total Interior Mirrors' are expected to reach 7.46 million, slightly down from 7.54 million reported in the same quarter last year [5]. - 'Auto-Dimming Mirror Shipments - Total Exterior Mirrors' are projected at 4.34 million, down from 4.65 million in the previous year [6]. - Total 'Auto-Dimming Mirror Shipments' are expected to be 11.80 million, compared to 12.18 million reported last year [6]. - 'Auto-Dimming Mirror Shipments - Total North American Mirror Units' are estimated at 3.94 million, down from 4.05 million last year [7]. - 'Auto-Dimming Mirror Shipments - International Exterior Mirrors' are projected to be 2.72 million, down from 2.94 million in the same quarter last year [7]. - 'Auto-Dimming Mirror Shipments - North American Exterior Mirrors' are expected to reach 1.63 million, down from 1.71 million last year [8]. - 'Auto-Dimming Mirror Shipments - Total International Mirror Units' are projected at 7.86 million, down from 8.13 million reported last year [8]. - 'Auto-Dimming Mirror Shipments - International Interior Mirrors' are expected to be 5.14 million, slightly down from 5.19 million last year [9]. - 'Auto-Dimming Mirror Shipments - North American Interior Mirrors' are estimated at 2.32 million, down from 2.35 million last year [9]. Stock Performance - Over the past month, Gentex shares have returned +7.3%, outperforming the Zacks S&P 500 composite's +5.9% change, with a Zacks Rank 2 (Buy) indicating potential for further outperformance [10].