Gentex Q2 sales miss on lower light vehicle production

Gentex

24/07/2026 13:17

    

    Overview
  
US automotive tech supplier's Q2 sales fell 1% yr/yr, missing analyst expectations
Adjusted EPS for Q2 rose 16% yr/yr to $0.58, despite lower automotive revenue
Company repurchased 2.7 mln shares for $66 mln during the quarter

    

    Outlook
  
Gentex maintains 2026 revenue guidance at $2.65–$2.75 bln
Company raises 2026 gross margin outlook to 34.5%–35.5% from 34%–35%
Gentex expects 2027 revenue between $2.80 and $2.90 bln

    

    Result Drivers
  
AUTOMOTIVE WEAKNESS - Automotive revenue declined 3% yr/yr, driven by lower light vehicle production and reduced base auto-dimming mirror shipments, especially in international markets
NON-AUTOMOTIVE GROWTH - Premium Audio revenue rose 16% and Other Products revenue grew 12% yr/yr, led by strong performance in aerospace, biometrics, and accessory products
GROSS MARGIN IMPROVEMENT - Gross margin rose 280 basis points yr/yr, aided by $18 mln of IEEPA tariff reimbursements and favorable product mix, partly offset by higher commodity costs

    
Company press release: ID:nGNX9ryWsc

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Sales
Miss
$651.30 mln
$669.54 mln (7 Analysts)
Q2 EPS
 
$0.54
 
Q2 Net Income
 
$114.70 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $26.00, about 9.2% above its July 23 closing price of $23.80
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

    

    Reuters Recommended Reads
  
July 23 - Gentherm Q2 adjusted EBITDA beats estimates, sets $400 million buyback
July 23 - Visteon Q2 sales slightly beat on new product launch ramps
July 22 - Valeo first-half sales fall, but beat market expectations

    
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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.)