Gentex Reports Fourth Quarter and Year End 2024 Financial Results

Core Insights - Gentex Corporation reported a decrease in net sales for Q4 2024, totaling $541.6 million, down 8% from$ 589.1 million in Q4 2023, attributed to a 6% decline in light vehicle production in key markets [3][6] - The company achieved a record annual net sales of $2.31 billion for 2024, a 1% increase from$ 2.30 billion in 2023, despite a more than 4% decrease in light vehicle production [8][11] - The gross 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 [3][9] Fourth Quarter 2024 Highlights - Net sales were $541.6 million, a decrease of 8% year-over-year [3][6] - Gross profit margin was 32.5%, down from 34.5% in Q4 2023 [3][9] - Income from operations was$ 89.8 million, compared to $132.8 million in Q4 2023 [5][6] - Net income for Q4 2024 was$ 87.7 million, down from $116.9 million in Q4 2023 [7][11] - Earnings per diluted share were$ 0.39, compared to $0.50 in Q4 2023 [7][12] Calendar Year 2024 Highlights - Total net sales reached$ 2.31 billion, marking a new annual sales record [6][8] - Gross profit margin for the year was 33.3%, slightly up from 33.2% in 2023 [9][11] - Net income for the year was $404.5 million, down from$ 428.4 million in 2023 [11][12] - Earnings per diluted share for the year were $1.76, compared to$ 1.84 in 2023 [12][11] - Full Display Mirror unit shipments increased by 21% to 2.96 million units [6][13] Operating Expenses and Financial Performance - Operating expenses in Q4 2024 rose 22% to $86.5 million, influenced by staffing and engineering-related fees [4][10] - For the full year, operating expenses increased 17% to$ 311.4 million [10] - The effective tax rate for Q4 2024 was 10.3%, down from 15.2% in 2023 [7][11] Shareholder Returns - The company returned $316.5 million to shareholders in 2024, a 23% increase from the previous year [6] - Share repurchases totaled$ 206.1 million for the year, with 6.4 million shares repurchased [15] Future Guidance - For 2025, the company forecasts revenue between $2.40 billion and$ 2.45 billion, with a gross margin target of 33.5% to 34.5% [18] - Light vehicle production is expected to decline further in 2025, but the company anticipates revenue growth driven by new product launches [20][19]