Gentex(US:GNTX)2026-01-30 13:00Financial 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]