Gentex (GNTX) Q2 2025 earnings summary

Executive summary

• Completed VOXX acquisition on April 1, 2025, integrating financials and expanding product lines; VOXX contributed $78.8M in Q2 revenue.

• Consolidated net sales rose 15% year-over-year to $657.9M; core revenue up 1% despite a 2% decline in light vehicle production.

• Net income attributable to shareholders increased 12% to $96.0M; adjusted net income up 23% to $105.8M.

• Adjusted EPS was $0.47, a 27% increase year-over-year.

• Margin improvement initiatives and advanced feature sales offset challenges from tariffs and weak China demand.

Financial highlights

• Consolidated gross margin improved to 34.2% (up from 32.9%); adjusted gross margin was 34.6%.

• Operating expenses rose to $106.8M, mainly due to VOXX acquisition and $6.8M in severance costs.

• Cash and equivalents fell to $119.8M from $233.3M at year-end, reflecting the VOXX acquisition and share repurchases.

• Cash flow from operations for H1 2025 was $314.6M, up $55.5M year-over-year.

• 8.8M shares repurchased in H1 2025; new 40M share repurchase authorization announced.

Outlook and guidance

• 2025 consolidated revenue guidance raised to $2.44–$2.61B, with VOXX expected to contribute $240–$280M.

• Gross margin guidance: 33–34% consolidated; core Gentex margin 34–34.5%.

• Operating expenses (ex-severance): $370M–$390M; capex: $100M–$125M; tax rate: 16–17%.

• Withholding 2026 revenue guidance due to geopolitical and tariff uncertainties.

• Full-year 2025 light vehicle production in primary markets forecasted to decline 3% year-over-year.