Gentex Reports Mixed Q3 2025 Results with Revenue Drops in Europe, China

Gentex Corp reported an 8% increase in consolidated net sales to $655.2 million in Q3 2025, driven partly by the VOXX acquisition, despite a 6% decline in core Gentex revenue due to tariff impacts and reduced demand in Europe and China. The company's consolidated gross margin improved to 34.4%, with core gross margin rising 140 basis points to 34.9%, reflecting enhanced operational efficiency. However, net income fell to $101 million from $122.5 million the previous year, influenced by tariff-related costs and increased operating expenses from VOXX integration. Analysts project Gentex's earnings to accelerate at 12.3% annually and revenue by 6.4%, supported by manufacturing automation and a focus on high-margin products, suggesting margin improvements despite industry-wide cost pressures. Gentex shares trade at a discount with a price-to-earnings ratio of 13.1x compared to the industry's 18.5x, indicating potential undervaluation and investor interest. Guidance for 2025 anticipates slight production declines in primary markets, impacted by delayed EV programs and removal of tax credits, with additional headwinds expected in China over the next 18 months.