Gentex Q4 Sales Jump 19% to $644.4M with Record 35.5% Margin
Gentex reported Q4 net sales of $644.4 million, up 19% year-over-year with core revenue of $541.0 million flat despite a 2% decline in light-vehicle production. Earnings per diluted share rose to $0.43 from $0.39 as core gross margin widened 300 basis points to 35.5%.
1. Fourth Quarter Net Sales and Revenue Performance
Gentex reported consolidated net sales of $644.4 million for the quarter ended December 31, 2025, marking a 19% increase over the $541.6 million recorded in the same period of 2024. Core Gentex revenue, which excludes the VOXX acquisition, was $541.0 million, effectively flat year-over-year despite a 2% decline in light-vehicle production in its primary markets. Notably, sales into China reached $34.5 million, overcoming tariff headwinds, and VOXX contributed $103.4 million, driven largely by seasonal strength.
2. Gross Margin Expansion Drives Profitability
The consolidated gross margin expanded to 34.8% in Q4 2025 from 32.5% a year earlier, while core Gentex gross margin climbed to 35.5%, up 300 basis points. Management attributed the improvement to a favorable product mix, operational efficiencies and purchasing cost reductions, partially offset by approximately 150 basis points of tariff-related costs. This represents the highest quarterly margin since the first half of 2021 and achieves the company’s long-standing target range of 35%–36%.
3. Operating Expenses, Income from Operations and EPS
Consolidated operating expenses rose to $104.4 million in the quarter, reflecting $24.6 million of VOXX-related costs; core Gentex expenses declined to $79.8 million, down from $86.5 million in Q4 2024, which included $8.9 million of nonrecurring goodwill impairment. Income from operations totaled $120.1 million, up from $89.8 million, while core Gentex operating income rose 25.3% year-over-year to $112.5 million. Net income attributable to Gentex was $93.0 million, and diluted earnings per share reached $0.43, compared with $0.39 in the prior year period.
4. Full Year 2025 Results and Capital Return
For the calendar year, consolidated net sales grew 10% to $2.53 billion, with core Gentex revenue of $2.27 billion representing a 2% decline versus 2024 due to tariff impacts in China. Full-year consolidated gross margin improved to 34.2%, while core gross margin rose 140 basis points to 34.7%. Operating income increased to $473.9 million, and net income attributable to Gentex was $384.8 million, yielding $1.74 per diluted share. The company returned $425.9 million to shareholders—$319.0 million in share repurchases and $106.9 million in dividends—a 35% increase over the prior year.