Gentex (GNTX) Q1 2026 earnings summary

Executive summary

• Consolidated net sales for Q1 2026 reached $675.4 million, up 17% year-over-year, with VOXX contributing $88.6 million and core revenue up 2% despite a 3% decline in global light vehicle production.

• Adjusted net income was $103.7 million, with adjusted EPS at $0.48; GAAP net income was $98.5 million and diluted EPS was $0.46.

• Share repurchases totaled 3.3 million shares for $71.6 million, with 32.6 million shares remaining authorized.

• Growth was driven by advanced features, new technology launches, and favorable product mix, offsetting lower vehicle production.

• VOXX integration is progressing well, achieving profitability and exceeding revenue forecasts, especially in premium audio.

Financial highlights

• Consolidated gross margin improved to 33.8% from 33.2% year-over-year; core Gentex gross margin rose to 34%.

• Operating expenses were $105 million, up from $78.7 million, mainly due to the VOXX acquisition and impairment charges.

• Income from operations was $123.7 million consolidated; adjusted income from operations for core Gentex was $121.4 million.

• Cash and cash equivalents increased to $164.8 million; operating cash flow was $137.1 million, down from $148.5 million due to working capital changes.

• Earnings per diluted share were $0.46, up from $0.42; adjusted EPS was $0.48, up from $0.43.

Outlook and guidance

• 2026 consolidated revenue guidance raised to $2.65–$2.75 billion; gross margin expected at 34–35%.

• Operating expenses (excluding severance/impairments) forecasted at $410–$420 million; effective tax rate 16–18%.

• Capital expenditures projected at $125–$140 million; depreciation/amortization at $100–$110 million.

• 2027 revenue expected between $2.8–$2.9 billion.

• Light vehicle production in primary markets expected to decline 2% in 2026.