Gentex Reports Second Quarter 2025 Financial Results

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]