Core Insights - Gentex reported a consolidated gross margin of 34.8% for Q4 2025, an increase from 32.5% year-over-year, with core Gentex gross margin reaching 35.5%, the highest since H1 2021, attributed to favorable product mix and operational efficiencies despite tariff-related costs impacting margins by approximately 150 basis points [1][6][9] Financial Performance - For Q4 2025, consolidated net sales were $644.4 million, a 19% increase from $541.6 million in the previous year, with Vox contributing $103.4 million to this revenue [3][6] - Full-year 2025 consolidated net sales reached $2.53 billion, up 10% from $2.31 billion in 2024, while core Gentex sales decreased by 2% year-over-year to $2.27 billion due to lower demand for exports to China [8][11] - Consolidated net income for 2025 was $384.8 million, down from $404.5 million, with earnings per diluted share at $1.74 compared to $1.76 the previous year [11] Operational Highlights - Gentex's consolidated operating expenses for 2025 were $392.8 million, with core Gentex operating expenses at $318.5 million, reflecting an increase due to the Vox acquisition [10] - The company reported a consolidated income from operations of $120.1 million for Q4, up from $89.8 million a year earlier, with core Gentex income from operations increasing by 25.3% [7] Product Development and Future Guidance - Gentex provided guidance for 2026 consolidated revenue between $2.6 billion and $2.7 billion, with expectations for Vox to grow approximately 5% and contribute about $40 million in annual cash flow [5][17] - The company is advancing key products, including driver-monitoring systems for Volvo/Polestar and a dimmable visor expected to launch in H2 2027 [5][15][16] Challenges and Market Conditions - Management highlighted tariffs on exports to China and rising commodity costs as significant headwinds, with tariffs expected to pressure margins by $45–$50 million entering 2026 [6][19] - The company anticipates consolidated gross margin for 2026 to be between 34% and 35%, with operating expenses projected at $410 million to $420 million [17]