Latest news with #Gentex
Yahoo
28-07-2025
- Automotive
- Yahoo
Gentex (GNTX) Surges 19.5% on Impressive Earnings
We recently published . Gentex Corporation (NASDAQ:GNTX) is one of the biggest performers recently. Gentex soared by 19.52 percent week-on-week, ending at $27.42 on Friday versus $22.94 on July 18, as investor sentiment was boosted by its impressive earnings performance in the second quarter of the year despite a cautious outlook for the remainder of 2025. In its earnings statement, Gentex Corporation (NASDAQ:GNTX) said attributable net income grew by 11.6 percent to $96 million from $86 million in the same period last year, excluding the impact of its acquisition of VOXX International Corp. Meanwhile, net sales increased by 14.8 percent to $657.86 million from $572.92 million year-on-year. Looking ahead, Gentex Corporation (NASDAQ:GNTX) said it expects global light vehicle production for the third quarter of the year to end relatively flat versus the same period last year, while light vehicle production in its primary markets is expected to dip by 1 percent year-on-year. Copyright: dolgachov / 123RF Stock Photo For the fourth quarter, global light vehicle production is predicted to drop by 6 percent year-on-year across its primary markets, including China. While we acknowledge the potential of GNTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-07-2025
- Automotive
- Yahoo
Gentex Corp (GNTX) Q2 2025 Earnings Call Highlights: Strong Sales Growth Amid China Challenges
Consolidated Net Sales: $657.9 million, a 15% increase over the previous year. Core Gentex Revenue: $579 million, a 1% growth despite a 2% decline in light vehicle production. VOXX Revenue: $78.8 million for the quarter. Sales into China: Approximately $33 million, below the forecast of $50 million to $60 million. Consolidated Gross Margin: 34.2%, up from 32.9% last year. Core Gentex Gross Margin: 35.3%, a 240-basis-point improvement year-over-year. Operating Expenses: $106.8 million, up from $73.7 million last year, primarily due to the VOXX acquisition. Consolidated Income from Operations: $118.5 million, compared to $114.9 million last year. Core Gentex Operating Income: $123.8 million, an 8% increase year-over-year. Consolidated Net Income: $96 million, up 12% from $86 million last year. Adjusted Net Income: $105.8 million, a 23% increase versus last year. Consolidated Earnings Per Share (EPS): $0.43, up 16% from last year. Adjusted EPS: $0.47, a 27% increase over last year. Automotive Net Sales: $566.5 million, impacted by lower sales in China but offset by increased advanced feature mirror sales. Other Product Lines Sales: $12.5 million, down from $13.6 million last year. Share Repurchases: 5.7 million shares repurchased at an average price of $22.13 per share, totaling $126.2 million. Cash and Cash Equivalents: $119.8 million, down from $233.3 million at year-end. Capital Expenditures: $31.1 million for the quarter, compared to $31.8 million last year. Depreciation and Amortization: $27.4 million for the quarter, including $0.8 million from VOXX. Warning! GuruFocus has detected 4 Warning Signs with GNTX. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Gentex Corp (NASDAQ:GNTX) reported a 15% increase in consolidated net sales for the second quarter of 2025, reaching $657.9 million. Core Gentex revenue grew by 1% despite a 2% decline in light vehicle production in primary markets. The acquisition of VOXX contributed $78.8 million to the quarter's revenue, aiding overall growth. Consolidated gross margin improved to 34.2%, up from 32.9% last year, driven by cost reductions and operational efficiencies. Gentex Corp (NASDAQ:GNTX) announced a new share repurchase authorization for an additional 40 million shares, enhancing shareholder value. Negative Points Sales into China were significantly lower than forecasted, at $33 million compared to the expected $50 million to $60 million, due to tariffs. Operating expenses increased to $106.8 million from $73.7 million last year, primarily due to the VOXX acquisition. The effective tax rate rose to 17.2% from 15.1% last year, impacting net income. Gentex Corp (NASDAQ:GNTX) faced challenges in the China market due to counter-tariffs and reduced demand, affecting revenue. Cash and cash equivalents decreased to $119.8 million from $233.3 million at year-end, impacted by the VOXX acquisition and share repurchases. Q & A Highlights Q: Can you discuss the factors contributing to the improvement in gross margin this quarter? A: Steven Downing, President and CEO, explained that the margin improvement is a result of ongoing efforts over the past two years, despite various headwinds. Key contributors include purchasing cost reductions, labor and overhead savings, and operational efficiencies. These improvements are expected to continue into the second half of the year as commodity pricing remains stable and operational efficiencies are maintained. Q: How is Gentex approaching the challenges in the China market, especially with tariffs and competition? A: Steven Downing noted that the primary challenge in China is the high counter-tariffs on exports from the US, which have led to customers reconsidering their use of Gentex products. Additionally, the profitability challenges faced by OEMs in China have resulted in decontenting. Gentex is exploring ways to grow in this market despite these challenges, but has not yet found a winning formula. Q: What is the outlook for large area devices, and could production be accelerated? A: Neil Boehm, CTO, stated that significant progress has been made in optimizing production lines for large area devices, with improvements in technical aspects like dimming speed and film durability. While the target is to bring this technology to production within 24 months, there is potential for acceleration depending on customer alignment and technical advancements. Q: What are the expectations for VOXX's operating expenses and potential synergies? A: Steven Downing indicated that there are opportunities for synergies and cost savings by integrating VOXX with Gentex, particularly in back-office functions and ERP systems. Over the next 12 to 18 months, the goal is to bring VOXX's operating expenses closer to Gentex's levels on a percentage of sales basis. Q: How is the Full Display Mirror (FDM) product performing, and what is driving the increased shipment expectations? A: Steven Downing highlighted that the increase in FDM shipment expectations is due to a combination of strong launch cadence and positive take rates. The company has gained confidence in meeting these numbers based on the strong performance in the first half of the year and continued commitment from OEMs to their product launch cycles. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
25-07-2025
- Business
- Globe and Mail
Gentex Reports Second Quarter 2025 Financial Results
ZEELAND, Mich., July 25, 2025 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics, today reported financial results for the three and six months ended June 30, 2025. Second Quarter 2025 Highlights Gentex completed its acquisition of VOXX International Corporation ('VOXX') Gentex and VOXX Consolidated net sales totaled $657.9 million, a 15% increase compared to the second quarter of 2024, which did not include VOXX Core Gentex net sales (excluding VOXX) totaled $579.0 million in the second quarter of 2025, a 1% quarter-over-quarter increase, versus a 2% decline in light vehicle production in the Company's primary markets Consolidated gross margin of 34.2%, an increase of 130 basis points from the second quarter of 2024, which did not include VOXX Core Gentex gross margin (excluding VOXX) of 35.3%, an increase of 240 basis points compared to 32.9% in the second quarter of 2024 Core Gentex gross margin (excluding VOXX) increased 210 basis points sequentially from the first quarter of 2025 Severance related expenses of $6.2 million for Gentex and an additional $0.6 million for VOXX were incurred during the quarter Consolidated income from operations of $118.5 million Consolidated net income attributable to Gentex of $96.0 million a 12% increase vs. the second quarter of 2024, which did not include VOXX Consolidated earnings per diluted share attributable to Gentex of $0.43, an increase of 16% from the second quarter of 2024, which did not include VOXX Consolidated adjusted earnings per diluted share attributable to Gentex of $0.47 after removing expenses related to acquisition costs and severance related charges during the quarter 5.7 million shares repurchased during the quarter totaling $126.2 million Financial Summary For the second quarter of 2025, the Company reported consolidated net sales of Gentex and VOXX of $657.9 million, a 15% increase compared to net sales of $572.9 million in the second quarter of 2024, which did not include VOXX. Gentex completed its acquisition of VOXX on April 1, 2025, which contributed $78.8 million of revenue for the second quarter of 2025. Core Gentex revenue (excluding VOXX) was $579.0 million in the second quarter of 2025 which was a 1% increase versus the second quarter of 2024 in comparison to light vehicle production in the Company's primary markets that decreased by approximately 2% versus the second quarter of 2024. 'Given the overall weak light vehicle production in our primary regions, we are very pleased with our sales levels this quarter," said Gentex President and CEO, Steve Downing. "This is particularly notable given the impact that tariffs and counter-tariffs have had on demand for our products, especially in the China market. Overall sales into China for Gentex during the quarter were approximately $33 million compared to our beginning-of-year forecast of $50 to $60 million for second quarter sales into the domestic China market. Despite revenue headwinds related to tariffs and reduced sales into the China market, the Company more than offset these challenges through strong growth in Full Display Mirror (FDM) and other advanced features, along with incremental revenue from the VOXX acquisition." For the second quarter of 2025, the Company's consolidated gross margin was 34.2%, compared to a gross margin of 32.9% for the second quarter of 2024, which did not include VOXX. The core Gentex gross margin (excluding VOXX) was 35.3%, representing a 240 basis-point increase compared to the second quarter of 2024. The quarter-over-quarter improvement in gross margin was primarily driven by purchasing cost reductions, improved mix, and operational efficiencies, that were partially offset by tariff related costs that were not reimbursed in the quarter. The consolidated adjusted gross margin was 34.6%, reflecting the exclusion of a $2.5 million expense related to purchase accounting adjustments recorded under ASC 805, " Business Combinations," in connection with the VOXX acquisition. "On a quarter-over-quarter basis, the core margin improvement of 240 basis points was a reflection of product mix tailwinds combined with successful implementation of the margin improvement initiatives the Gentex team has been focusing on for the last year. Sequentially, the Gentex core gross margin improved by 210 basis points, and was driven by many of the same factors that helped improve margins quarter-over-quarter. In an incredibly difficult operating environment, this quarter's gross margin performance is a testament to the hard work and discipline the entire team at Gentex has put into this margin improvement effort,' said Downing. Consolidated operating expenses during the second quarter of 2025 were $106.8 million, compared to operating expenses of $73.7 million in the second quarter of 2024, which did not include VOXX. The increase was primarily due to the VOXX acquisition, which accounted for $23.9 million of the increase (excluding acquisition and severance costs). Additionally, the Company incurred $2.5 million in acquisition-related costs and $6.8 million in severance related expenses, neither of which were present in the second quarter of 2024. Core Gentex operating expenses (excluding VOXX) were $80.7 million compared to $73.7 million during the second quarter of 2024. The increase in core Gentex operating expenses included $1.0 million in acquisition-related costs and $6.2 million attributable to Gentex-specific severance expenses. 'Operating expenses have moderated substantially in 2025, which is in line with our expectations, strategy, and execution stemming from our cost reduction programs. During the second quarter, the Company incurred severance-related expenses of $6.8 million, of which $6.2 million were related to core Gentex operating expenses, and were driven by early retirement incentives offered to long-tenured employees. The Company also incurred approximately $2.5 million in transaction costs, of which $1 million was related to core Gentex operating expenses during the quarter,' said Downing. "Adjusting for those items, core Gentex operating expenses were down slightly on a quarter-over-quarter basis." Consolidated income from operations for the second quarter of 2025 was $118.5 million, compared to income from operations of $114.9 million for the second quarter of 2024, which did not include VOXX. Core Gentex income from operations (excluding VOXX) was $123.8 million, representing an 8% increase versus the second quarter of 2024. 'When adjusting operating income for the one-time expenses incurred during the quarter, the second quarter core Gentex income from operations was $130.9 million, representing a 14.0% increase compared to the second quarter of 2024", said Downing. Total other loss was $3.0 million during the second quarter of 2025, compared to $13.6 million in the second quarter of 2024. During the second quarter of 2025, this other loss included an impairment of $6.2 million related to one of the Company's equity method investments. In comparison, the second quarter of 2024 included a $16.6 million loss resulting from the fair value adjustment of its investment in VOXX. During the second quarter of 2025, the Company had an effective tax rate of 17.2%, compared to an effective tax rate of 15.1% during the second quarter of 2024. The quarter-over-quarter change in the effective tax rate was primarily driven by lower tax benefits related to stock-based compensation compared to the second quarter of 2024, as well as a reduced benefit from the Foreign-Derived Intangible Income (FDII) deduction. Consolidated net income attributable to Gentex for the second quarter of 2025 was $96.0 million, a 12% increase compared to net income of $86.0 million for the second quarter of 2024, which did not include VOXX. The improvement was primarily driven by higher income from operations, supported by gross margin expansion and slightly lower operating expenses. Consolidated adjusted net income attributable to Gentex of $105.8 million was up 23% on a quarter-over-quarter basis, when adjusted for acquisition-related expenses and severance costs. Consolidated earnings per diluted share attributable to Gentex for the second quarter of 2025 were $0.43, up 16%, compared to earnings per diluted share of $0.37 for the second quarter of 2024, which did not include VOXX. Adjusted earnings per diluted share attributable to Gentex were $0.47, a 27% increase when adjusted for acquisition-related expenses and severance costs. Revenue By Category Gentex Automotive Gentex Automotive net sales were $566.5 million, in the second quarter of 2025, which were negatively affected by the Company's lower than expected sales into the China market due to the impact of counter-tariffs, but were more than offset by increased advanced feature mirror sales. Gentex Other Net sales from Gentex's Other product lines, which include dimmable aircraft windows, fire protection products, medical devices, and biometrics, were $12.5 million in the second quarter of 2025, compared to $13.6 million in the second quarter of 2024. VOXX VOXX net sales contributed $78.8 million during the second quarter of 2025. The Company continues to work through the post-acquisition transition, with a focus on aligning product strategies, optimizing customer relationships, and identifying operational synergies across both businesses. Share Repurchases During the second quarter of 2025, the Company repurchased 5.7 million shares of its common stock at an average price of $22.13 per share for a total of $126.2 million. Year-to-date, the Company has repurchased 8.8 million shares for a total of $202.2 million, at an average price of $22.97 per share. On July 16, 2025, the Company announced a new share repurchase authorization from the Board of Directors of an additional 40 million shares, representing more than 18% of the Company's outstanding shares as of June 30, 2025. This new authorization is in addition to the Company's existing repurchase authorization. With this new authorization, as of July 25, 2025, the Company now has approximately 40.6 million shares authorized for repurchase under the repurchase plan. The Company intends to continue to repurchase additional shares of its common stock in the future in support of the previously disclosed capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic issues, market trends, and other factors that the Company deems appropriate. Future Estimates The Company's light vehicle production forecast for the third quarter of 2025 and the remainder of the calendar year is based on the mid-July 2025 S&P Global Mobility outlook for North America, Europe, Japan/Korea, and China. Global light vehicle production for the third quarter of 2025 is expected to be relatively flat versus the third quarter of 2024, while light vehicle production in our primary markets is expected to be down approximately 1% in the third quarter of 2025 versus the third quarter of 2024. Global light vehicle production for the fourth quarter of 2025 is expected to be down approximately 6% versus the fourth quarter of 2024, including China, as well as across Gentex's primary markets of North America, Europe, and Japan/Korea. Full-year 2025 production in the Company's primary markets is expected to be down 3% year-over-year, a notable downgrade from earlier forecasts, and production in North America is projected to fall approximately 4% in 2025 compared to 2024. Third quarter 2025 and calendar years 2025 and 2026 forecasted vehicle production volumes from S&P Global Mobility are shown below: Light Vehicle Production (per S&P Global Mobility mid-July light vehicle production forecast) (in Millions) Region Q3 2025 Q3 2024 % Change Calendar Year 2026 Calendar Year 2025 Calendar Year 2024 2026 vs 2025 % Change 2025 vs 2024 % Change North America 3.78 3.77 — % 14.32 14.85 15.45 (4)% (4)% Europe 3.69 3.73 (1)% 16.80 16.74 17.17 — % (3)% Japan and Korea 2.92 2.90 1 % 11.34 11.87 11.98 (4)% (1)% China 7.36 7.30 1 % 31.24 31.23 30.09 — % 4 % Total Light Vehicle Production 17.75 17.70 — % 73.70 74.69 74.69 (1)% — % Based on the updated light vehicle production forecast, first-half 2025 results, reduced demand in the China market stemming from recently implemented counter-tariffs, and the expected incremental sales contribution from the VOXX acquisition, Gentex is revising its full-year 2025 guidance. The updated guidance reflects the anticipated impact of all known tariffs effective as of July 25, 2025. 2025 Annual Guidance (as of July 25, 2025) Consolidated Revenue: $2.44 – $2.61 billion (New consolidated guidance, previously: $2.15 – $2.32 billion) Gentex primary markets: $2.10 – $2.20 billion Gentex China market: $100 – $125 million VOXX Revenue estimate: $240 – $280 million Gross Margin: 33% – 34% (New consolidated guidance) Gentex (stand-alone): 34% – 34.5% (Previously 33% - 34%) VOXX (stand-alone): 27% – 29% Operating Expenses (New consolidated guidance, excluding severance): $370 – $390 million Gentex: $300 – $310 million (unchanged) VOXX: $70 – $80 million Tax Rate: 16% – 17% (previously: 15% – 17%) Capital Expenditures: $100 – $125 million (unchanged) Depreciation & Amortization: $91 – $98 million (New consolidated guidance) Gentex: $90 – $95 million VOXX: $1 - $3 million Given the current geopolitical environment, tariff landscape, and evolving customer sourcing strategies, the Company will continue to withhold revenue guidance for calendar year 2026 until we have the required visibility needed to support future guidance. Closing Remarks 'The second quarter began with a flurry of activity that has not slowed down. We closed the VOXX acquisition on April 1st and then moved very quickly into a chaotic period of global trade uncertainty that lasted for the entire quarter and remains unresolved. It was, nevertheless, a very productive quarter, as we continued to make progress on our path to improved profitability. Our teams are performing at a very high level and our operational efficiency is improving significantly versus the same time last year. These improvements played a key role in driving strong revenue and profitability improvements, despite revenue reductions in the domestic China market and the lower than expected light vehicle production in our primary markets. Over the next several quarters, the Company will continue executing the margin improvement initiatives that are targeted to get the core margin profile in line with our long-term target of 35 - 36%. While we are working on those targets, we are also working with the VOXX team to ensure the combined organization is appropriately structured to support long-term profitability and shareholder value,' concluded Downing. 'On the product front, we continue to make significant strides in the development of large area devices and we remain very confident that the technology breakthroughs we have made in the last year will create significant opportunities for our dimmable visor, sunroof, side-window, and panoramic roof applications globally,' said CTO and COO, Neil Boehm. 'Additionally, we continue to make progress on our launches of Driver Monitoring System ("DMS") platforms for four key customers as demand for safety and driver-assist technology continues to accelerate across global markets. We are increasingly confident in the strength of our technology roadmap and our team's ability to deliver the best scalable technology platforms that create value for our customers and end consumers,' concluded Boehm. Safe Harbor for Forward-Looking Statements This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'goal,' 'guidance,' 'hope,' 'intend,' "likely", 'may,' 'opinion,' 'optimistic,' 'plan,' 'poised,' 'predict,' 'project,' 'should,' 'strategy,' 'target,' 'will,' "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading 'Risk Factors' in the Company's latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include tariffs that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of July 16, 2025 ( Second Quarter Conference Call A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, July 25, 2025. Participants who wish to ask questions may register for the call at It is recommended that participants join 10 minutes prior to the event start, although they may register ahead of the call and dial in at any time during the call. Participants may listen to the call via audio streaming A webcast replay will be available approximately 24 hours after the conclusion of the call at About the Company Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics. Visit the Company's web site at Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change North American Interior Mirrors 2,221 2,346 (5)% 4,470 4,608 (3)% North American Exterior Mirrors 1,524 1,705 (11)% 2,895 3,326 (13)% Total North American Mirror Units 3,746 4,051 (8)% 7,365 7,934 (7)% International Interior Mirrors 5,313 5,189 2 % 10,453 10,744 (3)% International Exterior Mirrors 2,517 2,944 (15)% 5,300 5,978 (11)% Total International Mirror Units 7,830 8,133 (4)% 15,753 16,721 (6)% Total Interior Mirrors 7,534 7,535 — % 14,923 15,352 (3)% Total Exterior Mirrors 4,041 4,649 (13)% 8,194 9,304 (12)% Total Auto-Dimming Mirror Units 11,575 12,184 (5)% 23,118 24,655 (6)% Note: Percent change and amounts may not total due to rounding. GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended June 30, 2025 and 2024 Supplemental Information Consolidated Gentex VOXX 2025 2024 Net Sales $ 579,024,658 $ 78,833,552 $ 657,858,210 $ 572,925,778 Cost of Goods Sold 374,545,311 58,021,996 432,567,307 384,362,469 Gross Profit 204,479,347 20,811,556 225,290,903 188,563,309 Engineering, Research & Development 45,444,027 6,027,250 51,471,277 44,003,994 Selling, General & Administrative 29,077,498 19,437,857 48,515,355 29,675,293 Severance Expense 6,196,902 587,234 6,784,136 — Operating Expenses 80,718,427 26,052,341 106,770,768 73,679,287 Income (Loss) from Operations 123,760,920 (5,240,785) 118,520,135 114,884,022 Other (Loss)/Income (3,141,223) 91,227 (3,049,996) (13,553,043) Income (Loss) before Income Taxes 120,619,697 (5,149,558) 115,470,139 101,330,979 Income Tax Provision (Benefit) 20,537,066 (717,377) 19,819,689 15,290,541 Net Income (Loss) 100,082,631 (4,432,181) $ 95,650,450 $ 86,040,438 Less: Net loss attributable to non-controlling interest — (389,134) (389,134) — Net Income (Loss) Attributable to Gentex Corporation $ 100,082,631 $ (4,043,047) $ 96,039,584 $ 86,040,438 Earnings Per Share Attributable to Gentex Corporation (1) Basic $ 0.45 $ (0.02) $ 0.43 $ 0.37 Diluted $ 0.45 $ (0.02) $ 0.43 $ 0.37 Cash Dividends Declared per Share $ 0.120 $ 0.120 (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Six Months Ended June 30, 2025 and 2024 Supplemental Information Gentex VOXX 2025 2024 Net Sales $ 1,155,797,748 $ 78,833,552 $ 1,234,631,300 $ 1,163,150,989 Cost of Goods Sold 759,584,814 58,021,996 817,606,810 772,350,073 Gross Profit 396,212,934 20,811,556 417,024,490 390,800,916 Engineering, Research & Development 91,368,391 6,027,250 97,395,641 86,185,980 Selling, General & Administrative 59,010,503 19,437,857 78,448,360 60,384,602 Severance Expense 9,086,014 587,234 9,673,248 — Operating Expenses 159,464,908 26,052,341 185,517,249 146,570,582 Income (Loss) from Operations 236,748,026 (5,240,785) 231,507,241 244,230,334 Other (Loss)/Income (2,500,747) 91,227 (2,409,520) (15,251,428) Income before Income Taxes 234,247,279 (5,149,558) 229,097,721 228,978,906 Provision for Income Taxes 39,290,603 (717,377) 38,573,226 34,707,753 Net Income (Loss) 194,956,676 (4,432,181) $ 190,524,495 $ 194,271,153 Less: Net loss attributable to non-controlling interest — (389,134) (389,134) — Net Income (Loss) Attributable to Gentex Corporation $ 194,956,676 $ (4,043,047) $ 190,913,629 $ 194,271,153 Earnings Per Share Attributable to Gentex Corporation (1) Basic $ 0.86 $ (0.02) $ 0.85 $ 0.84 Diluted $ 0.86 $ (0.02) $ 0.85 $ 0.84 Cash Dividends Declared per Share $ 0.240 $ 0.240 (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2025 December 31, 2024 (Unaudited) (Note) ASSETS Cash and Cash Equivalents $ 119,774,840 $ 233,318,766 Short-Term Investments 21,303,330 22,304,829 Accounts Receivable, net 372,961,789 295,344,353 Inventories 475,719,663 436,497,445 Other Current Assets 72,217,004 49,862,777 Total Current Assets 1,061,976,626 1,037,328,170 Plant and Equipment - Net 783,863,952 728,481,467 Goodwill 340,668,927 340,668,927 Long-Term Investments 267,045,895 339,604,044 Intangible Assets, net 186,550,142 195,157,160 Patents and Other Assets, net 173,711,794 119,581,207 Total Other Assets 967,976,758 995,011,338 Total Assets $ 2,813,817,336 $ 2,760,820,975 LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities $ 336,933,865 $ 252,692,676 Other Non-current Liabilities 43,755,486 36,028,644 Redeemable Non-controlling Interest 2,490,261 — Shareholders' Investment 2,430,637,724 2,472,099,655 Total Liabilities & Shareholders' Investment $ 2,813,817,336 $ 2,760,820,975 Note: The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. GENTEX CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) In this press release, the Company has provided information regarding certain non-GAAP financial measures, which are reconciled to their closest GAAP financial measure in the following schedules. Use of the term "adjusted" or "excluding" in connection with a financial measure identifies and reflects a non-GAAP financial measure. Non-GAAP Financial Measures: The Company has presented Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, and Adjusted Operating Income (Loss) as supplemental measures of the Company's performance. Current quarter Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Operating Income (Loss) exclude certain purchase price adjustments pursuant to ASC 805, acquisition related costs, and severance costs set forth in the table below. Current quarter Adjusted Gross Margin is defined as Adjusted Gross Profit divided by Net Sales. (Unaudited) Three Months Ended June 30, Gentex VOXX Consolidated 2025 Consolidated 2024 Gross Profit - GAAP $ 204,479,347 $ 20,811,556 $ 225,290,903 $ 188,563,309 Inventory purchase price step-up adjustments pursuance to ASC 805 — 2,498,442 2,498,442 — Adjusted Gross Profit - (Non-GAAP) $ 204,479,347 $ 23,309,998 $ 227,789,345 $ 188,563,309 Gross Margin - GAAP 35.3 % 26.4 % 34.2 % 32.9 % Adjusted Gross Margin - (Non-GAAP) 35.3 % 29.6 % 34.6 % 32.9 % Operating Expenses - GAAP 80,718,427 26,052,341 106,770,768 73,679,287 Less: Acquisition Related Costs 957,207 1,515,844 2,473,051 — Severance Costs 6,196,902 587,234 6,784,136 — Adjusted Operating Expenses - (Non-GAAP) $ 73,564,318 $ 23,949,263 $ 97,513,581 $ 73,679,287 Income (Loss) from Operations - GAAP 123,760,920 (5,240,785) $ 118,520,135 $ 114,884,022 Inventory purchase price step-up adjustments pursuance to ASC 805 — 2,498,442 2,498,442 — Acquisition Related Costs 957,207 1,515,844 2,473,051 — Severance Costs 6,196,902 587,234 6,784,136 — Adjusted Income (Loss) from Operations - (Non-GAAP) $ 130,915,029 $ (639,265) $ 130,275,764 $ 114,884,022 Adjusted Net Income and Adjusted Earnings per Diluted Share: Adjusted Net Income and Adjusted Earnings per Diluted Share are presented as supplemental measures of the Company's performance. Adjusted Net Income is defined as Net Income (Loss) adjusted for purchase price adjustments pursuant to ASC 805, acquisition related costs, and severance costs during the second quarter of 2025. Adjusted Earnings per Diluted Share is defined as Adjusted Net Income (Loss) divided by weighted average diluted shares outstanding. (Unaudited) Three Months Ended June 30, Gentex VOXX Consolidated 2025 Consolidated 2024 Net Income (Loss) Attributable to Gentex Corporation - GAAP $ 100,082,631 $ (4,043,047) $ 96,039,584 $ 86,040,438 Inventory purchase price step-up adjustments pursuance to ASC 805, net of tax — 2,068,710 2,068,710 — Acquisition Related Costs, net of tax 792,567 1,255,119 2,047,686 — Severance Costs, net of tax 5,131,035 486,230 5,617,265 — Net Income (Loss) Attributable to Gentex Corporation - (Non-GAAP) $ 106,006,233 $ (232,988) $ 105,773,245 $ 86,040,438 Adjusted Basic Earnings Per Share: Basic $ 0.48 $ — $ 0.47 $ 0.37 Diluted $ 0.48 $ — $ 0.47 $ 0.37 The Company believes that the presentation of these non-GAAP financial measures provides insight into the Company's core performance and trends with respect to the same. Management of the Company similarly uses such non-GAAP financial measures in assessing the business internally. This press release was published by a CLEAR® Verified individual.
Yahoo
25-07-2025
- Automotive
- Yahoo
Gentex Reports Second Quarter 2025 Financial Results
ZEELAND, Mich., July 25, 2025 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics, today reported financial results for the three and six months ended June 30, 2025. Second Quarter 2025 Highlights Gentex completed its acquisition of VOXX International Corporation ('VOXX') Gentex and VOXX Consolidated net sales totaled $657.9 million, a 15% increase compared to the second quarter of 2024, which did not include VOXX Core Gentex net sales (excluding VOXX) totaled $579.0 million in the second quarter of 2025, a 1% quarter-over-quarter increase, versus a 2% decline in light vehicle production in the Company's primary markets Consolidated gross margin of 34.2%, an increase of 130 basis points from the second quarter of 2024, which did not include VOXX Core Gentex gross margin (excluding VOXX) of 35.3%, an increase of 240 basis points compared to 32.9% in the second quarter of 2024 Core Gentex gross margin (excluding VOXX) increased 210 basis points sequentially from the first quarter of 2025 Severance related expenses of $6.2 million for Gentex and an additional $0.6 million for VOXX were incurred during the quarter Consolidated income from operations of $118.5 million Consolidated net income attributable to Gentex of $96.0 million a 12% increase vs. the second quarter of 2024, which did not include VOXX Consolidated earnings per diluted share attributable to Gentex of $0.43, an increase of 16% from the second quarter of 2024, which did not include VOXX Consolidated adjusted earnings per diluted share attributable to Gentex of $0.47 after removing expenses related to acquisition costs and severance related charges during the quarter 5.7 million shares repurchased during the quarter totaling $126.2 million Financial SummaryFor the second quarter of 2025, the Company reported consolidated net sales of Gentex and VOXX of $657.9 million, a 15% increase compared to net sales of $572.9 million in the second quarter of 2024, which did not include VOXX. Gentex completed its acquisition of VOXX on April 1, 2025, which contributed $78.8 million of revenue for the second quarter of 2025. Core Gentex revenue (excluding VOXX) was $579.0 million in the second quarter of 2025 which was a 1% increase versus the second quarter of 2024 in comparison to light vehicle production in the Company's primary markets that decreased by approximately 2% versus the second quarter of 2024. 'Given the overall weak light vehicle production in our primary regions, we are very pleased with our sales levels this quarter," said Gentex President and CEO, Steve Downing. "This is particularly notable given the impact that tariffs and counter-tariffs have had on demand for our products, especially in the China market. Overall sales into China for Gentex during the quarter were approximately $33 million compared to our beginning-of-year forecast of $50 to $60 million for second quarter sales into the domestic China market. Despite revenue headwinds related to tariffs and reduced sales into the China market, the Company more than offset these challenges through strong growth in Full Display Mirror (FDM) and other advanced features, along with incremental revenue from the VOXX acquisition." For the second quarter of 2025, the Company's consolidated gross margin was 34.2%, compared to a gross margin of 32.9% for the second quarter of 2024, which did not include VOXX. The core Gentex gross margin (excluding VOXX) was 35.3%, representing a 240 basis-point increase compared to the second quarter of 2024. The quarter-over-quarter improvement in gross margin was primarily driven by purchasing cost reductions, improved mix, and operational efficiencies, that were partially offset by tariff related costs that were not reimbursed in the quarter. The consolidated adjusted gross margin was 34.6%, reflecting the exclusion of a $2.5 million expense related to purchase accounting adjustments recorded under ASC 805, "Business Combinations," in connection with the VOXX acquisition. "On a quarter-over-quarter basis, the core margin improvement of 240 basis points was a reflection of product mix tailwinds combined with successful implementation of the margin improvement initiatives the Gentex team has been focusing on for the last year. Sequentially, the Gentex core gross margin improved by 210 basis points, and was driven by many of the same factors that helped improve margins quarter-over-quarter. In an incredibly difficult operating environment, this quarter's gross margin performance is a testament to the hard work and discipline the entire team at Gentex has put into this margin improvement effort,' said Downing. Consolidated operating expenses during the second quarter of 2025 were $106.8 million, compared to operating expenses of $73.7 million in the second quarter of 2024, which did not include VOXX. The increase was primarily due to the VOXX acquisition, which accounted for $23.9 million of the increase (excluding acquisition and severance costs). Additionally, the Company incurred $2.5 million in acquisition-related costs and $6.8 million in severance related expenses, neither of which were present in the second quarter of 2024. Core Gentex operating expenses (excluding VOXX) were $80.7 million compared to $73.7 million during the second quarter of 2024. The increase in core Gentex operating expenses included $1.0 million in acquisition-related costs and $6.2 million attributable to Gentex-specific severance expenses. 'Operating expenses have moderated substantially in 2025, which is in line with our expectations, strategy, and execution stemming from our cost reduction programs. During the second quarter, the Company incurred severance-related expenses of $6.8 million, of which $6.2 million were related to core Gentex operating expenses, and were driven by early retirement incentives offered to long-tenured employees. The Company also incurred approximately $2.5 million in transaction costs, of which $1 million was related to core Gentex operating expenses during the quarter,' said Downing. "Adjusting for those items, core Gentex operating expenses were down slightly on a quarter-over-quarter basis." Consolidated income from operations for the second quarter of 2025 was $118.5 million, compared to income from operations of $114.9 million for the second quarter of 2024, which did not include VOXX. Core Gentex income from operations (excluding VOXX) was $123.8 million, representing an 8% increase versus the second quarter of 2024. 'When adjusting operating income for the one-time expenses incurred during the quarter, the second quarter core Gentex income from operations was $130.9 million, representing a 14.0% increase compared to the second quarter of 2024", said Downing. Total other loss was $3.0 million during the second quarter of 2025, compared to $13.6 million in the second quarter of 2024. During the second quarter of 2025, this other loss included an impairment of $6.2 million related to one of the Company's equity method investments. In comparison, the second quarter of 2024 included a $16.6 million loss resulting from the fair value adjustment of its investment in VOXX. During the second quarter of 2025, the Company had an effective tax rate of 17.2%, compared to an effective tax rate of 15.1% during the second quarter of 2024. The quarter-over-quarter change in the effective tax rate was primarily driven by lower tax benefits related to stock-based compensation compared to the second quarter of 2024, as well as a reduced benefit from the Foreign-Derived Intangible Income (FDII) deduction. Consolidated net income attributable to Gentex for the second quarter of 2025 was $96.0 million, a 12% increase compared to net income of $86.0 million for the second quarter of 2024, which did not include VOXX. The improvement was primarily driven by higher income from operations, supported by gross margin expansion and slightly lower operating expenses. Consolidated adjusted net income attributable to Gentex of $105.8 million was up 23% on a quarter-over-quarter basis, when adjusted for acquisition-related expenses and severance costs. Consolidated earnings per diluted share attributable to Gentex for the second quarter of 2025 were $0.43, up 16%, compared to earnings per diluted share of $0.37 for the second quarter of 2024, which did not include VOXX. Adjusted earnings per diluted share attributable to Gentex were $0.47, a 27% increase when adjusted for acquisition-related expenses and severance costs. Revenue By CategoryGentex AutomotiveGentex Automotive net sales were $566.5 million, in the second quarter of 2025, which were negatively affected by the Company's lower than expected sales into the China market due to the impact of counter-tariffs, but were more than offset by increased advanced feature mirror sales. Gentex OtherNet sales from Gentex's Other product lines, which include dimmable aircraft windows, fire protection products, medical devices, and biometrics, were $12.5 million in the second quarter of 2025, compared to $13.6 million in the second quarter of 2024. VOXXVOXX net sales contributed $78.8 million during the second quarter of 2025. The Company continues to work through the post-acquisition transition, with a focus on aligning product strategies, optimizing customer relationships, and identifying operational synergies across both businesses. Share RepurchasesDuring the second quarter of 2025, the Company repurchased 5.7 million shares of its common stock at an average price of $22.13 per share for a total of $126.2 million. Year-to-date, the Company has repurchased 8.8 million shares for a total of $202.2 million, at an average price of $22.97 per share. On July 16, 2025, the Company announced a new share repurchase authorization from the Board of Directors of an additional 40 million shares, representing more than 18% of the Company's outstanding shares as of June 30, 2025. This new authorization is in addition to the Company's existing repurchase authorization. With this new authorization, as of July 25, 2025, the Company now has approximately 40.6 million shares authorized for repurchase under the repurchase plan. The Company intends to continue to repurchase additional shares of its common stock in the future in support of the previously disclosed capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic issues, market trends, and other factors that the Company deems appropriate. Future EstimatesThe Company's light vehicle production forecast for the third quarter of 2025 and the remainder of the calendar year is based on the mid-July 2025 S&P Global Mobility outlook for North America, Europe, Japan/Korea, and China. Global light vehicle production for the third quarter of 2025 is expected to be relatively flat versus the third quarter of 2024, while light vehicle production in our primary markets is expected to be down approximately 1% in the third quarter of 2025 versus the third quarter of 2024. Global light vehicle production for the fourth quarter of 2025 is expected to be down approximately 6% versus the fourth quarter of 2024, including China, as well as across Gentex's primary markets of North America, Europe, and Japan/Korea. Full-year 2025 production in the Company's primary markets is expected to be down 3% year-over-year, a notable downgrade from earlier forecasts, and production in North America is projected to fall approximately 4% in 2025 compared to 2024. Third quarter 2025 and calendar years 2025 and 2026 forecasted vehicle production volumes from S&P Global Mobility are shown below: Light Vehicle Production (per S&P Global Mobility mid-July light vehicle production forecast)Region Q3 2025 Q3 2024 % Change Calendar Year 2026 Calendar Year 2025 Calendar Year 2024 2026 vs 2025% Change 2025 vs 2024% Change North America 3.78 3.77 — % 14.32 14.85 15.45 (4)% (4)% Europe 3.69 3.73 (1)% 16.80 16.74 17.17 — % (3)% Japan and Korea 2.92 2.90 1 % 11.34 11.87 11.98 (4)% (1)% China 7.36 7.30 1 % 31.24 31.23 30.09 — % 4 % Total Light Vehicle Production 17.75 17.70 — % 73.70 74.69 74.69 (1)% — % Based on the updated light vehicle production forecast, first-half 2025 results, reduced demand in the China market stemming from recently implemented counter-tariffs, and the expected incremental sales contribution from the VOXX acquisition, Gentex is revising its full-year 2025 guidance. The updated guidance reflects the anticipated impact of all known tariffs effective as of July 25, 2025. 2025 Annual Guidance Consolidated Revenue: $2.44 – $2.61 billion (New consolidated guidance, previously: $2.15 – $2.32 billion) Gentex primary markets: $2.10 – $2.20 billion Gentex China market: $100 – $125 million VOXX Revenue estimate: $240 – $280 million Gross Margin: 33% – 34% (New consolidated guidance) Gentex (stand-alone): 34% – 34.5% (Previously 33% - 34%) VOXX (stand-alone): 27% – 29% Operating Expenses (New consolidated guidance, excluding severance): $370 – $390 million Gentex: $300 – $310 million (unchanged) VOXX: $70 – $80 million Tax Rate: 16% – 17% (previously: 15% – 17%) Capital Expenditures: $100 – $125 million (unchanged) Depreciation & Amortization: $91 – $98 million (New consolidated guidance) Gentex: $90 – $95 million VOXX: $1 - $3 million Given the current geopolitical environment, tariff landscape, and evolving customer sourcing strategies, the Company will continue to withhold revenue guidance for calendar year 2026 until we have the required visibility needed to support future guidance. Closing Remarks'The second quarter began with a flurry of activity that has not slowed down. We closed the VOXX acquisition on April 1st and then moved very quickly into a chaotic period of global trade uncertainty that lasted for the entire quarter and remains unresolved. It was, nevertheless, a very productive quarter, as we continued to make progress on our path to improved profitability. Our teams are performing at a very high level and our operational efficiency is improving significantly versus the same time last year. These improvements played a key role in driving strong revenue and profitability improvements, despite revenue reductions in the domestic China market and the lower than expected light vehicle production in our primary markets. Over the next several quarters, the Company will continue executing the margin improvement initiatives that are targeted to get the core margin profile in line with our long-term target of 35 - 36%. While we are working on those targets, we are also working with the VOXX team to ensure the combined organization is appropriately structured to support long-term profitability and shareholder value,' concluded Downing. 'On the product front, we continue to make significant strides in the development of large area devices and we remain very confident that the technology breakthroughs we have made in the last year will create significant opportunities for our dimmable visor, sunroof, side-window, and panoramic roof applications globally,' said CTO and COO, Neil Boehm. 'Additionally, we continue to make progress on our launches of Driver Monitoring System ("DMS") platforms for four key customers as demand for safety and driver-assist technology continues to accelerate across global markets. We are increasingly confident in the strength of our technology roadmap and our team's ability to deliver the best scalable technology platforms that create value for our customers and end consumers,' concluded Boehm. Safe Harbor for Forward-Looking StatementsThis news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'goal,' 'guidance,' 'hope,' 'intend,' "likely", 'may,' 'opinion,' 'optimistic,' 'plan,' 'poised,' 'predict,' 'project,' 'should,' 'strategy,' 'target,' 'will,' "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading 'Risk Factors' in the Company's latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include tariffs that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of July 16, 2025 ( Second Quarter Conference CallA conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, July 25, 2025. Participants who wish to ask questions may register for the call at It is recommended that participants join 10 minutes prior to the event start, although they may register ahead of the call and dial in at any time during the call. Participants may listen to the call via audio streaming A webcast replay will be available approximately 24 hours after the conclusion of the call at About the CompanyFounded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics. Visit the Company's web site at Contact Information:Gentex Investor & Media ContactJosh O'Berski616.931.3505 GENTEX CORPORATIONAUTO-DIMMING MIRROR SHIPMENTS Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change North American Interior Mirrors 2,221 2,346 (5)% 4,470 4,608 (3)% North American Exterior Mirrors 1,524 1,705 (11)% 2,895 3,326 (13)% Total North American Mirror Units 3,746 4,051 (8)% 7,365 7,934 (7)% International Interior Mirrors 5,313 5,189 2 % 10,453 10,744 (3)% International Exterior Mirrors 2,517 2,944 (15)% 5,300 5,978 (11)% Total International Mirror Units 7,830 8,133 (4)% 15,753 16,721 (6)% Total Interior Mirrors 7,534 7,535 — % 14,923 15,352 (3)% Total Exterior Mirrors 4,041 4,649 (13)% 8,194 9,304 (12)% Total Auto-Dimming Mirror Units 11,575 12,184 (5)% 23,118 24,655 (6)% Note: Percent change and amounts may not total due to rounding. GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended June 30, 2025 and 2024 Supplemental Information Consolidated Gentex VOXX 2025 2024 Net Sales $ 579,024,658 $ 78,833,552 $ 657,858,210 $ 572,925,778 Cost of Goods Sold 374,545,311 58,021,996 432,567,307 384,362,469 Gross Profit 204,479,347 20,811,556 225,290,903 188,563,309 Engineering, Research & Development 45,444,027 6,027,250 51,471,277 44,003,994 Selling, General & Administrative 29,077,498 19,437,857 48,515,355 29,675,293 Severance Expense 6,196,902 587,234 6,784,136 — Operating Expenses 80,718,427 26,052,341 106,770,768 73,679,287 Income (Loss) from Operations 123,760,920 (5,240,785 ) 118,520,135 114,884,022 Other (Loss)/Income (3,141,223 ) 91,227 (3,049,996 ) (13,553,043 ) Income (Loss) before Income Taxes 120,619,697 (5,149,558 ) 115,470,139 101,330,979 Income Tax Provision (Benefit) 20,537,066 (717,377 ) 19,819,689 15,290,541 Net Income (Loss) 100,082,631 (4,432,181 ) $ 95,650,450 $ 86,040,438 Less: Net loss attributable to non-controlling interest — (389,134 ) (389,134 ) — Net Income (Loss) Attributable to Gentex Corporation $ 100,082,631 $ (4,043,047 ) $ 96,039,584 $ 86,040,438 Earnings Per Share Attributable to Gentex Corporation(1) Basic $ 0.45 $ (0.02 ) $ 0.43 $ 0.37 Diluted $ 0.45 $ (0.02 ) $ 0.43 $ 0.37 Cash Dividends Declared per Share $ 0.120 $ 0.120 (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Six Months Ended June 30, 2025 and 2024 Supplemental Information Gentex VOXX 2025 2024 Net Sales $ 1,155,797,748 $ 78,833,552 $ 1,234,631,300 $ 1,163,150,989 Cost of Goods Sold 759,584,814 58,021,996 817,606,810 772,350,073 Gross Profit 396,212,934 20,811,556 417,024,490 390,800,916 Engineering, Research & Development 91,368,391 6,027,250 97,395,641 86,185,980 Selling, General & Administrative 59,010,503 19,437,857 78,448,360 60,384,602 Severance Expense 9,086,014 587,234 9,673,248 — Operating Expenses 159,464,908 26,052,341 185,517,249 146,570,582 Income (Loss) from Operations 236,748,026 (5,240,785 ) 231,507,241 244,230,334 Other (Loss)/Income (2,500,747 ) 91,227 (2,409,520 ) (15,251,428 ) Income before Income Taxes 234,247,279 (5,149,558 ) 229,097,721 228,978,906 Provision for Income Taxes 39,290,603 (717,377 ) 38,573,226 34,707,753 Net Income (Loss) 194,956,676 (4,432,181 ) $ 190,524,495 $ 194,271,153 Less: Net loss attributable to non-controlling interest — (389,134 ) (389,134 ) — Net Income (Loss) Attributable to Gentex Corporation $ 194,956,676 $ (4,043,047 ) $ 190,913,629 $ 194,271,153 Earnings Per Share Attributable to Gentex Corporation(1) Basic $ 0.86 $ (0.02 ) $ 0.85 $ 0.84 Diluted $ 0.86 $ (0.02 ) $ 0.85 $ 0.84 Cash Dividends Declared per Share $ 0.240 $ 0.240 (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. GENTEX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2025 December 31, 2024 (Unaudited) (Note) ASSETS Cash and Cash Equivalents $ 119,774,840 $ 233,318,766 Short-Term Investments 21,303,330 22,304,829 Accounts Receivable, net 372,961,789 295,344,353 Inventories 475,719,663 436,497,445 Other Current Assets 72,217,004 49,862,777 Total Current Assets 1,061,976,626 1,037,328,170 Plant and Equipment - Net 783,863,952 728,481,467 Goodwill 340,668,927 340,668,927 Long-Term Investments 267,045,895 339,604,044 Intangible Assets, net 186,550,142 195,157,160 Patents and Other Assets, net 173,711,794 119,581,207 Total Other Assets 967,976,758 995,011,338 Total Assets $ 2,813,817,336 $ 2,760,820,975 LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities $ 336,933,865 $ 252,692,676 Other Non-current Liabilities 43,755,486 36,028,644 Redeemable Non-controlling Interest 2,490,261 — Shareholders' Investment 2,430,637,724 2,472,099,655 Total Liabilities & Shareholders' Investment $ 2,813,817,336 $ 2,760,820,975 Note: The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. GENTEX CORPORATION AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES (Unaudited) In this press release, the Company has provided information regarding certain non-GAAP financial measures, which are reconciled to their closest GAAP financial measure in the following schedules. Use of the term "adjusted" or "excluding" in connection with a financial measure identifies and reflects a non-GAAP financial measure. Non-GAAP Financial Measures: The Company has presented Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, and Adjusted Operating Income (Loss) as supplemental measures of the Company's performance. Current quarter Adjusted Gross Profit, Adjusted Operating Expenses, and Adjusted Operating Income (Loss) exclude certain purchase price adjustments pursuant to ASC 805, acquisition related costs, and severance costs set forth in the table below. Current quarter Adjusted Gross Margin is defined as Adjusted Gross Profit divided by Net Sales. (Unaudited) Three Months Ended June 30, Gentex VOXX Consolidated 2025 Consolidated 2024 Gross Profit - GAAP $ 204,479,347 $ 20,811,556 $ 225,290,903 $ 188,563,309 Inventory purchase price step-up adjustments pursuance to ASC 805 — 2,498,442 2,498,442 — Adjusted Gross Profit - (Non-GAAP) $ 204,479,347 $ 23,309,998 $ 227,789,345 $ 188,563,309 Gross Margin - GAAP 35.3 % 26.4 % 34.2 % 32.9 % Adjusted Gross Margin - (Non-GAAP) 35.3 % 29.6 % 34.6 % 32.9 % Operating Expenses - GAAP 80,718,427 26,052,341 106,770,768 73,679,287 Less: Acquisition Related Costs 957,207 1,515,844 2,473,051 — Severance Costs 6,196,902 587,234 6,784,136 — Adjusted Operating Expenses - (Non-GAAP) $ 73,564,318 $ 23,949,263 $ 97,513,581 $ 73,679,287 Income (Loss) from Operations - GAAP 123,760,920 (5,240,785 ) $ 118,520,135 $ 114,884,022 Inventory purchase price step-up adjustments pursuance to ASC 805 — 2,498,442 2,498,442 — Acquisition Related Costs 957,207 1,515,844 2,473,051 — Severance Costs 6,196,902 587,234 6,784,136 — Adjusted Income (Loss) from Operations - (Non-GAAP) $ 130,915,029 $ (639,265 ) $ 130,275,764 $ 114,884,022 Adjusted Net Income and Adjusted Earnings per Diluted Share: Adjusted Net Income and Adjusted Earnings per Diluted Share are presented as supplemental measures of the Company's performance. Adjusted Net Income is defined as Net Income (Loss) adjusted for purchase price adjustments pursuant to ASC 805, acquisition related costs, and severance costs during the second quarter of 2025. Adjusted Earnings per Diluted Share is defined as Adjusted Net Income (Loss) divided by weighted average diluted shares outstanding. (Unaudited) Three Months Ended June 30, Gentex VOXX Consolidated 2025 Consolidated 2024 Net Income (Loss) Attributable to Gentex Corporation - GAAP $ 100,082,631 $ (4,043,047 ) $ 96,039,584 $ 86,040,438 Inventory purchase price step-up adjustments pursuance to ASC 805, net of tax — 2,068,710 2,068,710 — Acquisition Related Costs, net of tax 792,567 1,255,119 2,047,686 — Severance Costs, net of tax 5,131,035 486,230 5,617,265 — Net Income (Loss) Attributable to Gentex Corporation - (Non-GAAP) $ 106,006,233 $ (232,988 ) $ 105,773,245 $ 86,040,438 Adjusted Basic Earnings Per Share: Basic $ 0.48 $ — $ 0.47 $ 0.37 Diluted $ 0.48 $ — $ 0.47 $ 0.37 The Company believes that the presentation of these non-GAAP financial measures provides insight into the Company's core performance and trends with respect to the same. Management of the Company similarly uses such non-GAAP financial measures in assessing the business internally. This press release was published by a CLEAR® Verified individual.
Globe and Mail
22-07-2025
- Automotive
- Globe and Mail
Gentex Corporation Recognizes Boyd as their Supplier of the Year
Boyd, a leader in precision materials that address customer needs in advanced display optimization and battery thermal runaway protection, today announced it was awarded Supplier of the Year by Gentex. Boyd was selected based on its outstanding performance in innovation, quality, delivery support, and dedication to Gentex throughout 2024. This press release features multimedia. View the full release here: Leaders from Boyd and Gentex meet as Boyd is recognized as a Gentex Supplier of the Year. Boyd was awarded for outstanding performance in innovation, quality, delivery support, and dedication to Gentex in 2024. 'Boyd is honored to be recognized for performance excellence by a customer like Gentex,' said Doug Britt, Boyd Chief Executive Officer. 'We are committed to customer excellence, quality, reliability, and innovation, and we endeavor to deliver this experience consistently to our global customers. The Boyd team works hard on behalf of our customers, and this recognition is due to their effort, contribution, and customer commitment.' 'I would like to thank Boyd for their exceptional support and performance in 2024,' said Craig Piersma, Gentex Vice President of Marketing and Corporate Communications. 'Gentex's collaboration with outstanding suppliers like Boyd help us continue to deliver innovative automotive driver vision and safety systems.' Boyd automotive technologies can be found in advanced onboard displays and vision systems, ruggedized EV batteries, onboard compute modules, ADAS modules, sensors and safety systems, power management systems, and converter and inverter systems. Boyd's electric vehicle and transportation solutions are designed to safely and reliably operate in extreme environmental conditions. These advanced precision material technologies are compact and lightweight to maximize weight and energy efficiency. Boyd's eMobility innovation helps customers introduce batteries and onboard electronics, displays, and compute modules with increasingly greater power densities and higher system performance levels. Boyd's fast prototype lab and in-house testing lab help customers achieve faster time to market solutions. Boyd's global design and manufacturing capabilities for engineered materials spans over 20 sites across North America, Europe, and Asia Pacific. Boyd's automotive facilities operate under IATF 16949 quality management systems, helping customers safely accelerate new model, feature, and technology introduction with regional scalability. About Boyd Boyd is the trusted global innovator of sustainable solutions that make our customers' products better, safer, faster, and more reliable. Our innovative engineered materials and thermal solutions advance our customers' technology to maximize performance in the world's most advanced data centers; enhance reliability and extend range for electric and autonomous vehicles; advance the accuracy of cutting-edge personal healthcare and diagnostic systems; enable performance-critical aircraft and security technologies; and accelerate innovation in next-generation electronics and human-machine-interface. Core to Boyd's global manufacturing is a deep commitment to protecting the environment with sustainable, scalable, lean, strategically located regional operations that reduce waste and minimize carbon footprint. We empower our employees, develop their potential, and inspire them to do the right things with integrity and accountability to champion our customers' success.
