Gentex Q4 Earnings Match Estimates, Revenues Increase Y/Y

Core Insights - Gentex Corporation (GNTX) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 43 cents, matching the Zacks Consensus Estimate and increasing from 39 cents a year ago [1][9] - The company achieved net sales of $644.4 million, which was below the Zacks Consensus Estimate of $653 million but represented a 19% increase from the previous year [2][9] - Gentex's core gross margin improved to 35.5%, reflecting a 300 basis point increase from the fourth quarter of 2024, driven by reduced purchasing costs, improved product mix, and operational efficiencies [2][9] Revenue Breakdown - Gentex Automotive net sales were $527.6 million in the fourth quarter, down from $531.3 million in the same quarter last year, missing the estimate of $563.2 million [3] - Auto-dimming mirror shipments in North America decreased by 2% to 3,371,000 units, while international shipments fell by 3% to 7,091,000 units, leading to a total shipment decline of 3% to 10,462,000 units [3] - Other net sales, including dimmable aircraft windows and medical products, increased from $10.3 million to $13.3 million year over year [4] Financial Performance - Total operating expenses rose by 20.7% year over year to $104.42 million in the fourth quarter of 2025 [5] - Engineering and R&D expenses increased to $53.23 million from $47.06 million in the corresponding quarter of 2024, while SG&A expenses rose to $49.73 million from $30.53 million [5] - Gentex repurchased 3.8 million shares at an average price of $23.43 per share, with nearly 35.9 million shares authorized for repurchase as of December 31, 2025 [6] 2026 Guidance - Gentex expects net sales for 2026 to be in the range of $2.60 billion to $2.70 billion, compared to $2.53 billion in 2025 [7] - The projected gross margin for 2026 is estimated to be between 34% and 35%, slightly above the 34.2% reported in 2025 [7] - Capital expenditure is anticipated to be between $125 million and $140 million, with operating expenses estimated at $410 million to $420 million [7] Market Position - Gentex currently holds a Zacks Rank of 2 (Buy) [8] - Other top-ranked stocks in the automotive sector include Ford Motor (F), REV Group (REVG), and PHINIA Inc. (PHIN), each with a Zacks Rank of 1 (Strong Buy) [8]