Gentex (GNTX) Q4 2025 Earnings Call Transcript

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Friday, January 30, 2026 astatine 9:30 a.m. ET

• Chief Executive Officer — Steve Downing

• Chief Financial Officer — Kevin Nash

• Chief Technology Officer — Neil Boehm

• Director of Investor Relations — Josh O'Berski

Steve Downing for our prepared remarks. Thank you, Josh. For 2025, the institution reported

Steve Downing: consolidated nett income of $644.4 million, an summation of 19% compared to nett income of $541.6 cardinal for the 4th fourth of past year. VOXX contributed $103.4 cardinal of gross during the 4th quarter, and the halfway Gentex gross was $541 million. While halfway Gentex gross was fundamentally level compared to the 4th fourth of past year, our show wrong our superior markets was notably stronger. Revenue successful these regions grew astir 3% compared to a 2% diminution successful airy conveyance production, representing a five-point outperformance comparative to the underlying market. Sales into China totaled $34.5 cardinal for the quarter, down 33% from past twelvemonth owed to the interaction of tariffs.

The consolidated gross borderline successful 2025 was 34.8% compared with a gross borderline of 32.5% successful the 4th fourth of past year, which did not see VOXX. The halfway Gentex gross borderline was 35.5%, representing a 300 ground constituent summation compared to past year, and is the highest gross borderline since 2021. The summation successful gross borderline was the effect of favorable merchandise mix, operational efficiencies, and purchasing outgo reductions partially offset by tariff-related costs. The dependable betterment successful gross borderline reflects the company's disciplined absorption connected outgo control, productivity, and execution.

Over the past 2 years, we established and announced a people of getting backmost to the 35% to 36% gross borderline range, and the squad has accomplished this extremity done unbelievable grit and determination contempt the outer headwinds. It is besides absorbing to enactment that the gross borderline betterment was partially offset by incremental tariff-related costs, which reduced gross borderline by astir 150 ground points versus past year. Consolidated operating expenses during the 4th fourth were $104.4 cardinal compared to operating expenses of $86.5 cardinal successful the 4th fourth of past year. The summation was chiefly owed to the VOXX acquisition, which accounted for $24.6 cardinal of the increase. The halfway Gentex operating expenses included $800,000 successful Gentex-specific severance expenses.

Over the past twelvemonth and a half, the institution has been focused connected expanding the gross borderline arsenic good arsenic improving our operating outgo structure. This effort included aboriginal status programs aimed astatine decreasing headcount and reduced third-party walk to little ongoing operating expenses portion making definite our cardinal exertion and merchandise initiatives proceed to determination forward. Consolidated income from operations for the 4th fourth was $120.1 cardinal compared to income from operations of $89.8 cardinal past year, which did not see VOXX. Core Gentex income from operations was $112.5 million, a 25.3% summation versus the 4th fourth of past year. Total different nonaccomplishment was $8.7 cardinal during the 4th fourth compared to different income of $8 cardinal past year.