Auto electronics firm Gentex misses Q3 sales estimates amid Europe production issues

Gentex

24/10/2025 13:14

Overview

Gentex Q3 2025 consolidated sales up 8% yr/yr, but missed analyst expectations

Core Gentex Q3 2025 revenue fell 6% yr/yr, excluding VOXX contribution

Company repurchased 1.0 mln shares for $28.3 mln during Q3 2025

Outlook

Gentex raises full-year 2025 revenue guidance to $2.50-$2.60 bln from $2.44-$2.61 bln

Company expects full-year 2025 gross margin of 33.5%-34%

Gentex anticipates 2025 China market revenue of $135-$145 mln, up from $100-$125 mln

Result Drivers

VOXX ACQUISITION - VOXX contributed $84.9 mln to Q3 2025 revenue, aiding overall sales growth

REGIONAL PERFORMANCE - North American OEM revenue rose 5% qtr/qtr due to robust production schedules and increased content per vehicle, while European revenue fell 14% due to production challenges and a weaker vehicle mix

GROSS MARGIN IMPROVEMENT - Core Gentex gross margin rose by 140 basis points due to favorable North American mix, cost reductions, and operational efficiencies, partially offset by tariff costs, per CEO Steve Downing

REGIONAL PERFORMANCE - North American revenue rose 5% due to strong production schedules and increased content per vehicle, while European revenue fell 14% due to production challenges and a weaker vehicle mix, per CEO Steve Downing

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$655.20 mln
$660.60 mln (6 Analysts)
Q3 EPS
$0.46
Q3 Net Income
$101 mln
Q3 Gross Margin
34.40%
Q3 Operating Expenses
$102.80 mln
Q3 Operating Income
$122.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Gentex Corp is $30.50, about 13.7% above its October 23 closing price of $26.32

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX16C3ql

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)