Gentex Corporation GNTX, a supplier of automatic-dimming rear-view mirrors and electronics to the automotive industry, fire protection products to the fire protection market and dimmable aircraft windows to the aviation market, has reported its fourth-quarter 2025 results. It reported adjusted EPS of 43 cents, which increased from 39 cents reported a year ago. Its net sales of $644.4 million increased 19% from the year-ago period.
While Gentex expects some hiccups due to commodity pricing and tariffs, growth in Full Display Mirror (FDM) shipments and the acquisition of VOXX International boost the stock’s prospects after the fourth-quarter earnings release.
Expected Rise in FDM Shipments, VOXX Acquisition to Aid GNTX
Gentex aims at generating meaningful growth, driven by product launches, improved product mix, unique technology platforms and the adoption of other value-add features. FDM is a key growth engine of the firm and is likely to boost top-line growth. In 2025, the company shipped 3.19 million FDM units, rising nearly 8% year over year. Demand continues to remain strong, with the fourth quarter witnessing multiple new OEM launches. The demand has held up even where EV launches slowed because ICE/hybrid platforms are adopting the technology. GNTX projects a 200,000-400,000 increase in FDM units in 2026 compared to 2025.
Gentex is riding high on strategic acquisitions. The acquisition of BioConnect in November 2025 will strengthen Gentex’s position in the security and access control sector and bring in valuable expertise to support the development of advanced biometric technologies for its existing markets. The acquisition of VOXX International, completed in April 2025, has expanded Gentex’s product portfolio by adding VOXX’s automotive, consumer electronics and audio businesses. Portfolio expansion will boost the company’s top-line growth. It expects 2026 consolidated revenues in the range of $2.6-$2.7 billion, up from $2.53 billion in 2025. The company expects 2027 revenues in the range of $2.75-$2.85 billion.
The firm’s growth avenues in tech products diversify and enhance prospects. Penetration for HomeLink is likely to grow as the demand for connectivity to homes increases. Gentex’s HomeLink Connect app enables users to control their existing home automation devices. Collaboration with Solace (for wireless tech and data technology) and ADASKY (for thermal image sensors) bodes well.
Gentex’s healthy balance and investor-friendly moves add to the appeal. No debt and a strong cash position add to its strengths. The firm’s high current ratio of 2.9 compares favorably with the industry’s 1.9 and increases the firm’s financial flexibility to tap growth opportunities. Further, Gentex remains committed to preserving shareholder value via buybacks and dividends. In 2025, GNTX repurchased 13.6 million shares. As of Dec. 31, 2025, the company had nearly 35.9 million shares remaining under its repurchase authorization. Gentex’s ROE of 16% compares favorably with the industry’s 7.2%, underscoring management's efficiency in rewarding shareholders.
Concerns
Gentex will face two primary challenges in 2026. The first relates to commodity pricing, particularly in precious metals. Its exposure primarily includes silver, gold, and ruthenium. The company also anticipates some pressure from copper pricing and broader market dynamics, especially given copper’s impact on circuit boards and other electronic components. The second major challenge is tariffs. Together, increased commodity costs and tariffs are expected to represent approximately $45-$50 million in 2026.
Conclusion
Gentex’s consistent earnings growth, strong revenue momentum and expanding technology-driven portfolio bolster its outlook. Rising demand for Full Display Mirrors, resilient across ICE, hybrid and EV platforms, provides a solid growth engine, while strategic acquisitions like VOXX and BioConnect diversify revenue streams and enhance long-term prospects.
Gentex’s debt-free balance sheet, strong cash position and superior ROE highlight financial strength and operational efficiency. Despite near-term pressures from commodities and tariffs, robust guidance, innovation-led growth and shareholder-friendly buybacks position Gentex as an attractive long-term investment opportunity. GNTX carries a Zacks Rank #2 (Buy) at present.
Other Stocks to Consider
Some other top-ranked stocks in the auto space are Modine Manufacturing Company MOD, Ford Motor Company F and REV Group, Inc. REVG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 17.2% and 14.3%, respectively. The EPS estimate for fiscal 2026 has improved a penny in the past 60 days. The EPS estimate for fiscal 2027 has improved 9 cents in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for REVG’s fiscal 2026 sales and earnings implies year-over-year growth of 8.1% and 37.8%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 20 cents and 26 cents, respectively, in the past 60 days.
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Ford Motor Company (F): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Modine Manufacturing Company (MOD): Free Stock Analysis Report REV Group, Inc. (REVG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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