Gentex (GNTX) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $647.7M, down 1% from $655.2M YoY and ~$35M below the beginning-of-quarter forecast due to customer issues and delayed launches.

• North American automotive revenue grew 3% despite a 5% production decline; non-automotive revenue rose ~17% to 15% of total revenue.

• Nine-month sales rose 4% to $1.97B and net income rose 4% to $303.7M; comparison reflects VOXX included for nine months in 2026 versus six months in 2025.

Financial highlights

• Q3 gross profit was $216.3M versus $225.2M; gross margin was 33.4% versus 34.4%, pressured by precious-metal costs, unfavorable mix and lower sales leverage.

• GAAP operating income was $115.1M versus $122.3M; adjusted operating income was $118.8M versus $123.4M YoY.

• Net income attributable to shareholders was $90.6M versus $101.0M; adjusted net income was $97.8M versus $103.7M. Diluted EPS was $0.43 versus $0.46; adjusted EPS was $0.47 in both periods.

• GAAP operating expenses were $101.3M versus $102.8M; adjusted expenses were $97.5M versus $101.8M YoY.

• Nine-month gross profit was $686.0M versus $642.2M and operating income was $380.1M versus $353.8M; diluted EPS was $1.44 versus $1.31.

Outlook and guidance

• FY2026 revenue guidance was revised to ~$2.65B from $2.65B–$2.75B; gross margin to 34.0%–34.5% from 34.5%–35.5%, including $10M–$15M of Q4 costs with recoveries expected in H1 2027.

• FY2026 operating expenses, excluding severance and impairments, are projected at $395M–$410M; tax rate 16%–16.5%, capex $100M–$115M and D&A $100M–$105M.

• FY2027 revenue outlook remains $2.80B–$2.90B despite ~1% lower production in primary markets; DMS and ICMS revenue target is $80M–$100M in 2027.

• FDM shipments are targeted to rise 200K–400K units versus 2025; dimmable visor production is expected in Q4 2027, and Morocco production is targeted for Q4 2027.