Gentex(GNTX) - 2024 Q4 - Annual Results

Financial Performance - For Q4 2024, the company reported net sales of $541.6 million, an 8% decrease from $589.1 million in Q4 2023[3] - The gross profit margin for Q4 2024 was 32.5%, down from 34.5% in Q4 2023, primarily due to lower sales levels and a weaker product mix[4] - For the full year 2024, net sales reached $2.31 billion, a 1% increase from $2.30 billion in 2023, marking the highest annual sales in company history[8] - Net income for the full year 2024 was $404.49 million, compared to $428.40 million in 2023, representing a decline of 6%[30] - Earnings per share (EPS) for Q4 2024 were $0.39, down from $0.50 in Q4 2023[30] Shipments and Production - Full Display Mirror (FDM) unit shipments for 2024 totaled 2.96 million, representing a 21% increase compared to 2023[3] - Total auto-dimming mirror units shipped in Q4 2024 were 10,777 thousand, a 13% decrease compared to 12,356 thousand in Q4 2023[28] - North American interior mirror shipments decreased by 3% year-over-year, totaling 2,004 thousand units in Q4 2024[28] - International exterior mirror shipments fell by 15% year-over-year, totaling 2,656 thousand units in Q4 2024[28] Expenses and Investments - Operating expenses for Q4 2024 increased by 22% to $86.5 million, influenced by staffing and engineering-related professional fees[5] - The company reported an impairment expense of $8.86 million in Q4 2024, which was not present in Q4 2023[30] - The company plans to continue investing in engineering capabilities and new technologies to support product launches and achieve sustainable growth[21] Shareholder Returns - The company returned $316.5 million to shareholders in 2024, a 23% increase from the previous year, including $206.1 million in share repurchases[3] Tax and Forecast - The effective tax rate for 2024 was 14.3%, down from 15.2% in 2023, due to increased benefits from foreign derived intangible income deductions[12] - The company forecasts 2025 revenue between $2.40 billion and $2.45 billion, with a gross margin target of 33.5% to 34.5%[20] - Light vehicle production in 2025 is expected to decrease by 3% in North America and Europe compared to 2024, while total production is projected to increase by 2% in 2026[19] Assets and Cash - Total assets increased to $2.76 billion as of December 31, 2024, up from $2.61 billion a year earlier[32] - Cash and cash equivalents rose to $233.32 million, compared to $226.44 million at the end of 2023[32]