Gentex Corporation (GNTX) Earnings
Gentex Corporation is expected to report next earnings on October 23, 2026 (in NaN days), with a consensus EPS estimate of $0.52. GNTX has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise +5.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 24, 2026 | $0.50 | $0.58 | +15.8% | $651M | -3.3% |
| Apr 24, 2026 | $0.44 | $0.48 | +9.1% | $675M | +4.2% |
| Jan 30, 2026 | $0.43 | $0.43 | +0.2% | $644M | -1.7% |
| Oct 24, 2025 | $0.47 | $0.46 | -3.2% | $655M | -2.2% |
| Jul 25, 2025 | $0.40 | $0.47 | +17.8% | $658M | +0.3% |
| Apr 25, 2025 | $0.43 | $0.43 | +0.0% | $577M | -5.8% |
| Jan 31, 2025 | $0.49 | $0.39 | -20.6% | $542M | -12.1% |
| Oct 25, 2024 | $0.48 | $0.53 | +10.2% | $609M | +3.1% |
| Jul 26, 2024 | $0.52 | $0.37 | -29.1% | $573M | -7.8% |
| Apr 26, 2024 | $0.48 | $0.47 | -2.5% | $590M | -2.2% |
| Jan 26, 2024 | $0.44 | $0.50 | +13.4% | $589M | +4.8% |
| Oct 27, 2023 | $0.44 | $0.45 | +2.7% | $576M | +1.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 24, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Financial Performance * Q2 2026 net sales totaled $651.3 million, a 1% year-over-year decrease from $657.9 million in Q2 2025. * Gross margin was 37%, up 280 basis points from 34.2% year-over-year, boosted by $18 million in IEPA tariff reimbursements and favorable product mix; excluding this benefit, gross margin still improved 50 basis points sequentially from Q1 2026. * Net income attributable to Gentex was $114.7 million, up 19% year-over-year; diluted EPS was 54 cents, up 26% year-over-year, hitting a record for Q2. * Q2 2026 free cash flow reached $161.7 million, up 20% year-over-year; year-to-date free cash flow hit $281.8 million, up 14% year-over-year. * The company repurchased 2.7 million shares for $66 million in Q2 2026, with 29.9 million shares remaining in the authorized repurchase plan as of quarter end. - New Product Launches * Over 75% of Q2 2026 automotive launches included advanced features, including Home Link, Full Display Mirror (FDM), in-cabin monitoring, and advanced exterior auto-dimming mirrors. * FDM launched on multiple new vehicle platforms in Q2, including the Jeep Recon, Infiniti QX65, McLaren W1, Toyota Century SUV, and new Subaru nameplates; 2026 year-to-date shipments are on track to hit the projected 200,000-400,000 unit year-over-year growth target. * Driver Monitoring System (DMS) and In-Cabin Monitoring System (ICMS) began shipping to BMW for the iX3 and Kia for the EV2, in line with long-term growth projections. * Premium audio launched multiple new limited-edition and premium products across Klipsch and Onkyo that received strong market demand. - Supply Chain and Manufacturing Expansion * International customers are increasingly requiring regional localized production, creating headwinds for export-focused U.S. manufacturing. * Gentex is progressing with construction of a new manufacturing plant in Morocco, targeted to start production in 2028, to serve European customers. The company has signed a letter of intent, selected a site, and received government support; initial production will cover base electrochromic mirrors and advanced electronic modules. * Management expects the Morocco expansion will not meaningfully increase operating expenses or create excess capacity at existing U.S. facilities, as core components will still be sourced from existing facilities. * Gentex is pursuing a new electronics contract manufacturing (EMS) opportunity in the U.S. enabled by geopolitical demand for localized manufacturing; the company expects to announce its first award by the end of Q3 2026, with start of production targeted for late 2028 to early 2029. * Internal development of large-area dimmable devices (for visors and sunroofs) at Gentex's Zeeland, Michigan facility has progressed significantly, with most technical challenges resolved and production scaling preparation underway.
Guidance
- Full year 2026 consolidated revenue guidance is maintained at $2.65-$2.75 billion, in line with prior expectations. - Full year 2026 gross margin guidance is raised to 34.5%-35.5%, up from the prior range. - Full year 2026 operating expense guidance is lowered to $405-$415 million. - Full year 2026 effective tax rate guidance is lowered to 16%-17%. - Full year 2026 capital expenditure guidance is lowered to $115-$125 million; depreciation and amortization guidance remains unchanged at $100-$110 million. - Full year 2027 revenue guidance is maintained at $2.8-$2.9 billion, representing mid-single digit growth over 2026 expectations. - Global light vehicle production is projected to decline ~3% for full year 2026, and be relatively flat in 2027, with all forecasted growth coming from emerging markets, while Gentex's core markets of North America, Europe, Japan, and Korea are expected to see continued weakness.
Segment performance
- Automotive: Net sales of $560.1 million, down 3% year-over-year from $578.1 million in Q2 2025. This segment represents 86% of total company net sales. The decline reflects lower light vehicle production and reduced base auto-dimming mirror shipments, partially offset by favorable product mix, new technology launches, and higher vehicle content per vehicle. - Premium Audio: Net sales of $51.7 million, up 16% year-over-year from $44.5 million in Q2 2025. This segment represents approximately 8% of total company net sales. Growth was driven by strong performance from the Powered Systems and Onkyo brands, supported by new product introductions and continued demand across premium audio categories. - Other Products (includes aerospace, fire protection, medical technologies, biometrics, and automotive aftermarket): Net sales of $39.4 million, up 12% year-over-year from Q2 2025. Combined with Premium Audio, non-automotive revenue represented 14% of total company revenue in the quarter. Growth was driven by strong aerospace performance and continued growth in biometric and accessory product revenues.
Risks & headwinds
- Ongoing tariff and geopolitical disruptions have caused a steady decline in Gentex's China revenue, which is expected to continue declining through 2026 and 2027, putting downward pressure on overall margins and revenue growth. - The European base interior mirror business is facing steep year-over-year declines driven by the China export tariff impact, lost volume on Volkswagen programs, and broader weak light vehicle production volumes among European automakers. - Higher commodity and precious metals costs continue to put pressure on gross margins, partially offset by operational efficiency and favorable product mix. - Uncertainty around ongoing tariff policy changes creates volatility in cost forecasting, leading management to take a conservative approach to full year guidance. - Supply chain and electronics component shortages are expected to create headwinds in the second half of 2026. - New emerging technologies have slightly lower average margins than Gentex's legacy core business, creating near-term pressure on overall corporate margins until higher-margin new product lines (such as dimmable visors) ramp to meaningful volume.
Analyst Q&A
Q: The first anticipated EMS electronics manufacturing award is expected to be announced by end of Q3 2026; what is its approximate revenue opportunity?
A: Management expects the first award to represent $100-200 million in annual revenue once fully ramped, with revenue growing significantly beyond that as additional awards are secured after 2029. Production is targeted to start in late 2028 to early 2029.
Q: Why did Gentex select Morocco for its new European regional manufacturing plant over low-cost Eastern European locations, and are there already customer commitments for the facility?
A: Management already has multiple customer commitments for the plant. Morocco was selected after evaluating geopolitical stability, long-term inflation projections, favorable trade and duty agreements with both the EU and U.S., reliable energy supply, and attractive government incentive programs, making it a clear fit for Gentex's needs compared to other locations.
Q: What is Gentex's full year 2026 expectation for China revenue, and will the decline stabilize soon?
A: Management expects full year 2026 China revenue to hit approximately $100 million, down from $150 million in 2025, and expects China revenue to continue declining into 2027, with no near-term stabilization.
Q: What is the source of 2027 growth given stagnant light vehicle production and ongoing China declines? How does the growth stack up to underlying market production?
A: Gentex expects to continue outperforming underlying global light vehicle production by a high single-digit margin in 2026, consistent with past performance. Growth will be driven by expanding FDM volume, ramping DMS/ICMS, early contribution from dimmable visors in the second half of 2027, and continued growth in premium audio. Without China and European base mirror losses, the company would be reporting double-digit overall revenue growth.