Gentex's Q1 Earnings Meet Estimates, Revenues Decline Y/Y

Gentex Corporation’s GNTX first-quarter 2025 adjusted earnings per share (EPS) of 43 cents matched the Zacks Consensus Estimate but decreased 8.5% year over year.

This Zeeland-based automotive products supplier reported net sales of $576.8 million, which missed the Zacks Consensus Estimate of $587 million and fell 2.3% from the year-ago period. The company recorded a gross margin of 33.2%, reflecting a decline of 110 basis points from the first quarter of 2024 due to lower sales, an unfavorable product mix and new tariff costs in the first quarter of 2025.

Gentex Corporation Price, Consensus and EPS Surprise

Gentex Corporation price-consensus-eps-surprise-chart | Gentex Corporation Quote

Segmental Performance of GNTX

The Automotive segment’s net sales, contributing the most to Gentex’s revenues, totaled $563.9 million in the first quarter, down from $577.6 million reported in the year-ago quarter and missed our estimate of $570.4 million. In the reported quarter, auto-dimming mirror shipments in North America’s market decreased 7% to 3,619,000 units. Shipments fell 8% year over year in the international markets to 7,923,000 units. Total shipments declined 7% to 11,542,000 units.

Other net sales, which include dimmable aircraft windows, fire protection products and medical products, increased from the year-ago quarter’s $12.6 million to $12.9 million but lagged our estimate of $15.2 million. Fire protection sales decreased 1.5% year over year, while dimmable aircraft window sales decreased 15.5% year over year. Other net sales included biometric product sales of $0.9 million and eSight Go medical devices sales of $0.4 million.

GNTX’s Financial Tidbits

Total operating expenses rose 8% year over year to $78.7 million in first-quarter 2025. Engineering and R&D expenses increased to $45.92 million from $42.18 million recorded in the corresponding quarter of 2024. SG&A expenses fell to $29.93 million from $30.71 million recorded in the corresponding quarter of 2024.

GNTX paid a dividend of 12 cents per share in the quarter. It repurchased 3.1 million shares of its common stock at an average price of $24.52 per share. As of March 31, 2025, the company had nearly 6.3 million shares remaining for buyback, per its previously announced share repurchase plan. Gentex had cash and cash equivalents of about $286.6 million as of March 31, 2025.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

GNTX Updates 2025 Guidance

Gentex has revised its guidance for 2025, which excludes the effects of the VOXX merger. It expects 2025 sales from the primary market in the range of $2.10-$2.2 billion and sales from China’s market in the range of $50-$120 million. The company's sales from China’s market are currently being included to show how exposed it is to the country, especially given the expected impact of tariffs on that market.

The gross margin is projected in the band of 33-34% compared with the previous guidance of 33.5-34.5%. Capital expenditure is anticipated between $100 million and $125 million compared with the previous estimate of $125-$150 million. Operating expenses are estimated in the band of $300-$310 million compared with the previous estimate of $310-$320 million.

GNTX’s Zacks Rank

GNTX carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Peer Releases

Autoliv Inc. ALV reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter. The figure beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year.

Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion. Operating cash flow in the quarter under review was $77 million and capital expenditure amounted to $93 million, resulting in a negative free cash flow of $16 million. In the quarter, ALV paid a dividend of 70 cents per share and repurchased 0.5 million shares.

Mobileye Global Inc. MBLY reported first-quarter 2025 adjusted earnings per share of 8 cents. The figure was in line with the Zacks Consensus Estimate. The company reported a loss of 7 cents per share in the year-ago quarter. Total revenues amounted to $438 million, beating the Zacks Consensus Estimate of $434 million. The metric also rose 83% year over year.

MBLY had cash and cash equivalents of $1.51 billion as of March 29, 2025, compared with $1.43 billion as of Dec. 28, 2024. Operating cash flow for the three months ended March 29, 2025, was $109 million. Capex was $14 million during the same time frame.

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