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1. Company Snapshot

1.a. Company Description

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally.It operates through Automotive Products and Other segments.The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers.


It also provides variable dimmable windows to aircraft manufacturers and airline operators.In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products.The company sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems.


Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

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1.b. Last Insights on GNTX

Gentex Corporation's recent performance was negatively impacted by mixed Q3 2025 results, with revenue growth driven by the VOXX acquisition but core automotive sales declining. The company's EPS dropped from $0.53 to $0.46, and net profits fell to $101 million, missing analyst expectations. Despite short-term challenges, management raised full-year revenue and gross margin guidance, citing progress in tariff recovery and growth in advanced FDM products. A quarterly cash dividend of $0.12 per share was also declared. (Source: Gentex Corporation's Q3 2025 Earnings Call Transcript)

1.c. Company Highlights

2. Gentex's Q4 and Full-Year 2025 Earnings: A Resilient Performance Amidst Challenges

Gentex reported consolidated net sales of $644.4 million for Q4 2025, a 19% increase from the same period last year, while core Gentex revenue was $541 million, essentially flat compared to the previous year. The consolidated gross margin for 2025 was 34.8%, a 2.3% increase from last year, driven by favorable product mix, operational efficiencies, and purchasing cost reductions. Earnings per diluted share were $1.74 for the full year, compared to $1.76 last year. The company's actual EPS for Q4 was $0.43, in line with estimates.

Publication Date: Feb -08

📋 Highlights
  • Revenue Growth and Tariff Impact:: Q4 consolidated net sales rose 19% to $644.4M, but China sales fell 33% due to tariffs, while primary market revenue grew 3% despite 2% light vehicle production decline.
  • Gross Margin Improvement:: 2025 consolidated gross margin hit 34.8% (+2.3% YoY), with core margin at 35.5% (+300 bps), driven by product mix and cost efficiencies, offset by tariff costs.
  • 2026 Revenue Guidance:: Full-year revenue projected to reach $2.6–2.7B, with 2027 expected to grow further to $2.75–2.85B, supported by DMS launches and FDM growth.
  • Cost and Synergy Progress:: $40M VOXX synergy target halfway achieved (post-acquisition), plus $800K in core Gentex severance costs in Q4 for cost restructuring.
  • Tariff Recovery and Margin Goals:: Targeting $19–20M in net tariff recovery via price adjustments, with core gross margin aiming for 35–36% by 2026 despite ongoing challenges.

Revenue Growth Drivers and Challenges

The company's revenue growth was driven by a 3% increase in primary markets despite a 2% decline in light vehicle production. However, sales into China declined 33% due to tariffs. Steve Downing, President and CEO, noted that the upside risk to revenue guidance comes from stability in the North American market and Western Europe, while the risk factor is the deterioration in the China market.

Gross Margin Expansion and Operating Expenses

The gross margin improvement was a highlight, with the core Gentex gross margin reaching 35.5%, a 300 basis point increase. Operating expenses for Q4 were $104.4 million, primarily due to the VOXX acquisition. The company is focusing on expanding gross margin and improving operating cost structure through early retirement programs and reduced third-party spend.

Outlook and Guidance

For 2026, Gentex expects consolidated revenue of $2.6 billion to $2.7 billion, consolidated gross margin of 34% to 35%, and consolidated operating expenses of $410 million to $420 million. The company anticipates growth driven by full-year launches of driver monitoring systems and continued full display mirror growth. Analysts estimate next year's revenue growth at 4.5%.

Valuation and Metrics

Gentex's current P/E Ratio is 14.02, and the P/S Ratio is 2.08. The Dividend Yield is 1.99%, and the Free Cash Flow Yield is 8.92%. These metrics suggest that the market is pricing in a moderate growth rate, and the company's ability to deliver on its guidance will be crucial in determining the stock's performance.

3. NewsRoom

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Gentex Corporation, Under Its Ops-Core® Brand, Announces Sponsorship of the Alliance Police Training Facility

Feb -10

Source: prnewswire.com

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Thrivent Financial for Lutherans Decreases Stake in Gentex Corporation $GNTX

Feb -08

Source: defenseworld.net

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How to Approach Gentex Stock After Q4 Earnings Release?

Feb -03

Source: zacks.com

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Gentex Q4 Earnings Match Estimates, Revenues Increase Y/Y

Feb -02

Source: zacks.com

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Gentex Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

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Gentex (GNTX) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -30

Source: zacks.com

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Gentex Corporation (GNTX) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

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Gentex (GNTX) Matches Q4 Earnings Estimates

Jan -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.96%)

6. Segments

Automotive Products

Expected Growth: 8%

Gentex Corporation's 8% growth in Automotive Products is driven by increasing demand for advanced safety features, such as automatic dimming mirrors and driver-assist systems, in new vehicles. Additionally, growing adoption of autonomous vehicles and electrification of the automotive industry are fueling growth. Furthermore, Gentex's innovative products, such as smart rearview mirrors, are gaining traction with major OEMs, contributing to the segment's growth.

Other

Expected Growth: 6%

Gentex Corporation's 6% growth in 'Other' segment is driven by increasing demand for auto-dimming mirrors, expansion in global markets, and rising adoption of advanced driver-assistance systems (ADAS). Additionally, the company's diversification into new markets, such as aerospace and fire protection, contributes to its growth momentum.

7. Detailed Products

Night Vision Goggles

Gentex Corporation's Night Vision Goggles are designed for military and law enforcement use, providing enhanced visibility in low-light environments.

Ballistic Helmets

Gentex Corporation's Ballistic Helmets offer advanced protection for military and law enforcement personnel, providing superior impact resistance and fragmentation protection.

Communication Headsets

Gentex Corporation's Communication Headsets provide clear and reliable communication for military and law enforcement personnel, even in high-noise environments.

Advanced Combat Helmets

Gentex Corporation's Advanced Combat Helmets offer enhanced protection and comfort for military personnel, with advanced materials and design.

Flight Helmets

Gentex Corporation's Flight Helmets are designed for military and civilian pilots, providing advanced protection and comfort during flight operations.

Crew Served Weapon Mounts

Gentex Corporation's Crew Served Weapon Mounts provide stable and accurate weapon mounting solutions for military vehicles and platforms.

8. Gentex Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Gentex Corporation faces moderate threat from substitutes, as there are limited alternatives to its advanced helmet systems and communication equipment. However, the company's focus on innovation and quality helps to mitigate this threat.

Bargaining Power Of Customers

Gentex Corporation's customers, primarily military and law enforcement agencies, have limited bargaining power due to the specialized nature of the company's products and its strong brand reputation.

Bargaining Power Of Suppliers

Gentex Corporation's suppliers of raw materials and components have moderate bargaining power, as the company relies on a few key suppliers for critical components. However, the company's strong relationships with suppliers help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for Gentex Corporation, as the company's products require significant investment in research and development, and the barriers to entry are high due to the specialized nature of the industry.

Intensity Of Rivalry

The intensity of rivalry in the industry is high, as Gentex Corporation competes with other established players in the defense and aerospace industry. However, the company's strong brand reputation and focus on innovation help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.15%
Debt Cost 3.95%
Equity Weight 99.85%
Equity Cost 8.81%
WACC 8.80%
Leverage 0.15%

11. Quality Control: Gentex Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.17$

Current Price

24.17$

Potential

-0.00%

Expected Cash-Flows