Gentex misses Q1 estimates, cuts 2025 outlook amid tariff concerns

ZEELAND, Michigan - Gentex Corporation (NASDAQ:GNTX) reported first quarter earnings that fell short of analyst expectations and lowered its full-year revenue guidance, citing tariff impacts and weaker trim-mix in light vehicle production. The auto parts maker’s stock fell 2.1% following the announcement.

The company posted adjusted earnings per share of $0.42 for Q1 2025, missing the analyst consensus of $0.43. Revenue came in at $576.8 million, in line with estimates of $578.68 million and down 2% YoY.

Gentex attributed the revenue decline to a 3% drop in light vehicle production in its primary markets of North America, Europe, and Japan/Korea. The company also noted weakness in trim-mix across all major regions, particularly impacting exterior mirror unit shipments.

"The trim-mix impacted take rates for several features, but especially exterior mirror unit shipments, which were 15% down quarter over quarter in North America, and 8% internationally," said Gentex President and CEO Steve Downing.

For the full year 2025, Gentex now expects revenue of $2.1-2.2 billion, down from its previous forecast of $2.4-2.45 billion and below the analyst consensus of $2.5 billion. The company cited tariff concerns, particularly in the China market, as a key factor in the reduced outlook.

Gentex has proactively halted production of mirrors destined for customers in China due to new tariff rates. The company is working with affected customers to address pricing issues resulting from the elevated tariffs.

Despite the challenges, Gentex reported a sequential improvement in gross margin to 33.2% in Q1, up 70 basis points from Q4 2024. The company remains focused on cost improvement initiatives to offset margin pressures from tariff impacts.

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