Core Insights - Gentex Corporation (GNTX) reported second-quarter 2025 adjusted earnings per share (EPS) of 47 cents, exceeding the Zacks Consensus Estimate of 40 cents and reflecting a year-over-year increase of 27.03% [1][10] - The company achieved net sales of $657.9 million, surpassing the Zacks Consensus Estimate of $584 million and marking a 14.8% increase from the previous year [2][10] - Gentex revised its 2025 revenue guidance upward to a range of $2.44-$2.61 billion, incorporating the VOXX acquisition and higher expected sales from China [7][10] Financial Performance - The gross margin for the quarter was reported at 34.2%, an increase of 130 basis points from the second quarter of 2024, attributed to reduced purchasing costs and operational efficiencies [2] - Total operating expenses rose by 43.8% year over year to $106.77 million, with engineering and R&D expenses increasing to $51.47 million and SG&A expenses rising to $48.52 million [5] - Gentex paid a dividend of 12 cents per share and repurchased 5.7 million shares at an average price of $22.13, with approximately 40.6 million shares authorized for repurchase as of July 25, 2025 [6] Segment Performance - The Automotive segment generated net sales of $566.5 million, up from $559.3 million in the prior year and exceeding estimates of $548.9 million [3] - Auto-dimming mirror shipments in North America decreased by 8% to 3,746,000 units, while international shipments fell by 4% to 7,830,000 units, leading to a total shipment decline of 5% to 11,575,000 units [3] - Other net sales, including dimmable aircraft windows and fire protection products, decreased from $13.6 million to $12.5 million, missing estimates of $17.1 million [4] Guidance and Projections - The company expects consolidated revenues for 2025 to be between $2.44 billion and $2.61 billion, with primary market sales projected at $2.10-$2.20 billion and China market sales revised to $100-$125 million [7] - The VOXX segment is anticipated to contribute sales in the range of $240-$280 million [7] - Gentex's gross margin is projected to be between 34% and 34.5%, with capital expenditures expected to be between $100 million and $125 million [8]