- Gentex (GNTX, Financial) reports a 2% decrease in Q1 2025 net sales to $576.8 million year-over-year.
- Earnings per share fell by 11% compared to Q1 2024, reaching $0.42.
- Revised 2025 revenue guidance estimates $2.10-$2.2 billion for primary markets and $50-$120 million for China.
Gentex Corporation (GNTX) has announced its financial results for the first quarter of 2025, showing a decline in net sales to $576.8 million, a 2% drop compared to the same period in 2024. Earnings per share decreased by 11% to $0.42, primarily due to weaker automotive production and tariffs impacting profitability.
The company's gross profit margin was reported at 33.2%, improving by 70 basis points from the fourth quarter of 2024, yet below the 34.3% recorded in the first quarter of the previous year. Operating expenses rose by 8% to $78.7 million, influenced by severance expenses and costs associated with the merger of VOXX International Corp.
The strategic merger with VOXX completed on April 1, 2025, is anticipated to contribute between $240 million and $280 million in revenue for the year. Despite the merger, Gentex adjusted its 2025 revenue guidance given the current market conditions and tariff impacts, now projecting $2.10-$2.2 billion in primary markets and $50-$120 million from China.
Automotive sales amounted to $563.9 million during the quarter, with a 7% decline in auto-dimming mirror unit shipments. Despite these challenges, the company remains committed to capital return strategies, repurchasing 3.1 million shares at an average price of $24.52.
Gentex faces uncertainty for 2025 and beyond, with halts in production for China due to escalated tariffs affecting revenue forecasts. The company is also cautious about the VOXX merger's impact on revenue in light of potential tariff-driven price increases affecting consumer demand.
