Gentex(US:GNTX)2025-05-06 18:08Financial Performance - Net sales for Q1 2025 were $576.8 million, a decrease of 2% compared to $590.2 million in Q1 2024[102]. - Automotive net sales in Q1 2025 were $563.9 million, down 2% from $577.6 million in Q1 2024, with a 7% decrease in auto-dimming mirror unit shipments to 11.5 million units[81]. - Net income for Q1 2025 was $94.9 million, down from $108.2 million in Q1 2024, with earnings per diluted share decreasing to $0.42 from $0.47[90]. - Cash flow from operating activities increased by $18.6 million to $148.5 million in Q1 2025 compared to $129.9 million in the same period last year[95]. Expenses and Costs - Cost of goods sold as a percentage of net sales increased to 66.8% in Q1 2025 from 65.7% in Q1 2024, primarily due to lower sales levels and new tariff costs[84]. - Total operating expenses rose by 8% to $78.7 million in Q1 2025, influenced by a $2.9 million severance expense[85]. - Engineering, research, and development expenses increased by $3.7 million in Q1 2025, primarily due to staffing and professional fees[86]. Market and Production Insights - The light vehicle production forecast for Q2 2025 is 18.18 million units, a 2% decrease from Q2 2024[122]. - The Company expects light vehicle production in North America to decrease by 10% in Q2 2025 compared to Q2 2024[122]. - The Company has halted production of mirrors for the China market due to tariff escalations, leading to canceled or paused orders from customers[121]. Strategic Initiatives - The company reported 21 net new nameplate launches of auto-dimming mirrors in Q1 2025, with advanced feature launches making up 60% of these[103]. - The Company launched the Gentex ReVu app in Q1 2025, allowing users to download images or recordings from the Full Display Mirror with DVR capability[109]. - The Company expanded its distribution center by 300,000 square feet at a cost of approximately $40 million, funded with cash and cash equivalents[97]. - The Company closed the strategic merger with VOXX, expecting to add between $325 and $375 million in annualized revenue[127]. Revenue Projections - Revenue in North America, Europe, and Japan/Korea is expected to be between $2.1 and $2.2 billion[125]. - Revenue in the China market is expected to be between $50 and $120 million[125]. - Expected revenue contribution from the VOXX merger for calendar year 2025 is approximately $240 to $280 million[127]. - The Company has withdrawn revenue guidance for calendar year 2026 due to significant uncertainty surrounding the China market[124]. Shareholder Actions - The company has a share repurchase plan, having repurchased 3,100,351 shares in Q1 2025, with 6,349,047 shares remaining under the plan[101]. - The Company has 6.3 million shares remaining available for repurchase under the share repurchase plan[126]. Future Expectations - Gross Margin is expected to be between 33% and 34%[125]. - Operating Expenses are expected to be approximately $300 to $310 million[125]. - Capital Expenditures are expected to be between $100 and $125 million[125]. - Estimated Annual Tax Rate is expected to be between 15% and 17%[125].