Gentex Q3 Earnings Miss Estimates, 2025 Revenue Guidance Raised

Core Insights - Gentex Corporation's third-quarter 2025 adjusted earnings per share (EPS) of 46 cents missed the Zacks Consensus Estimate of 47 cents and decreased by 13.2% year over year [1][10] - The company reported net sales of $655.2 million, which lagged behind the Zacks Consensus Estimate of $674 million but represented an 8% increase from the previous year [2][10] Financial Performance - Gentex's gross margin improved to 34.4%, an increase of 90 basis points from the third quarter of 2024, attributed to reduced purchasing costs, improved product mix, and operational efficiencies [2] - Total operating expenses rose by 31.3% year over year to $102.84 million, with engineering and R&D expenses increasing to $52.63 million and SG&A expenses rising to $49.69 million [5] Segmental Performance - The Automotive segment's net sales totaled $558 million, down from $596.5 million in the year-ago quarter and below the estimate of $587.5 million, with total shipments declining by 8% to 11,246,000 units [3] - Other net sales, including dimmable aircraft windows and fire protection products, increased slightly from $12 million to $12.5 million [4] Shareholder Returns - Gentex paid a dividend of 12 cents per share and repurchased 1 million shares at an average price of $28.18 per share, with nearly 39.6 million shares authorized for repurchase as of September 30, 2025 [6] Guidance Update - The company revised its 2025 revenue guidance to a range of $2.5-$2.6 billion, up from the previous guidance of $2.44-$2.61 billion, reflecting the impact of the VOXX merger [7] - Sales from the primary market are now expected to be between $2.14-$2.15 billion, and sales from China are projected to be between $135-$145 million, an increase from earlier estimates [7][8]