Gentex (GNTX) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $576.8M, down 2% year-over-year, driven by a 7% decline in automotive mirror shipments and halted China production due to tariffs.

• Net income was $94.9M, down from $108.2M year-over-year; EPS was $0.42 versus $0.47.

• Gross margin declined to 33.2% from 34.3% year-over-year, affected by lower revenue, unfavorable mix, and new tariffs, but improved 70 bps sequentially.

• Operating expenses rose 8% to $78.7M, including $2.9M in severance and $0.9M in one-time VOXX merger costs.

• VOXX merger closed April 1, 2025, expected to add $240M–$280M to 2025 revenue, though tariff-related price increases may impact demand.

Financial highlights

• Automotive net sales were $563.9M, down from $577.6M year-over-year; auto-dimming mirror shipments fell 7%.

• Other net sales (aircraft, fire protection, medical, biometric) were $12.9M, up slightly from $12.6M.

• Cash and equivalents rose to $286.6M at quarter-end; investments fell to $321.2M; inventories decreased to $408.9M.

• Q1 operating cash flow was $148.5M, up from $129.9M; capex was $36.7M, up from $31.9M.

• 3.1M shares repurchased at $24.52 average; 6.3M shares remain authorized for buyback.

Outlook and guidance

• 2025 revenue in primary markets expected at $2.1B–$2.2B; China revenue forecasted at $50M–$120M, down ~$100M from initial forecast.

• Gross margin for 2025 expected at 33%–34%, with a 50–100 bps headwind from tariffs.

• Operating expenses forecasted at $300M–$310M; tax rate 15%–17%; capex $100M–$125M.

• 2026 revenue guidance withdrawn due to China/tariff uncertainty and VOXX merger integration.

• VOXX merger expected to add $240M–$280M to 2025 revenue, $325M–$375M annualized, but subject to tariff-related demand risks.