Gentex Q2 sales miss on lower light vehicle production

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

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.)