Gentex (GNTX) investor relations material

Executive summary

• Consolidated net sales reached $675.4 million for Q1 2026, up 17% year-over-year, with VOXX contributing $88.6 million and core revenue up 2% despite a 3% decline in global light vehicle production.

• Adjusted net income was $103.7 million, with adjusted EPS at $0.48; diluted EPS was $0.46.

• 3.3 million shares were repurchased for $71.6 million, with 32.6 million shares remaining authorized.

• VOXX integration is progressing well, achieving profitability and exceeding revenue forecasts, especially in premium audio.

Financial highlights

• Consolidated gross margin was 33.8%, with core Gentex gross margin at 34.0%, up 80 basis points year-over-year.

• Consolidated operating expenses were $105 million, up from $78.7 million, mainly due to VOXX acquisition and impairment charges.

• Income from operations was $123.7 million consolidated, $121.4 million adjusted for core Gentex.

• Cash and cash equivalents increased to $164.8 million; operating cash flow was $137.1 million, down from $148.5 million due to working capital changes.

• Total other loss was $5.6 million, primarily due to lower investment income and impairment charges.

Outlook and guidance

• 2026 consolidated revenue guidance raised to $2.65–$2.75 billion; gross margin expected at 34–35%.

• 2027 revenue guidance set at $2.8–$2.9 billion.

• Operating expenses (excluding severance/impairments) forecasted at $410–$420 million; effective tax rate 16–18%.

• Capital expenditures projected at $125–$140 million; depreciation/amortization at $100–$110 million.

• Light vehicle production in primary markets expected to decline 2% in 2026.