Gentex Corporation Reports Q1 2025 Financial Results with Decrease in Net Income and Sales

Gentex Corporation reported its financial results for the first quarter of 2025, revealing a net income of $94.9 million, a decrease from $108.2 million in the same period last year. The company's earnings per diluted share were $0.42, down from $0.47 in the first quarter of 2024. Total net sales for the quarter were $576.8 million, reflecting a 2% decline from $590.2 million in the prior year. This decrease was primarily attributed to a 7% drop in automotive mirror unit shipments, which fell to 11.5 million units compared to 12.5 million units in the first quarter of 2024.

In terms of operational metrics, the cost of goods sold as a percentage of net sales increased to 66.8%, up from 65.7% in the previous year, largely due to new tariff costs and an unfavorable product mix. Total operating expenses rose by 8% to $78.7 million, influenced by a $2.9 million severance expense and increased engineering and research costs. The company also reported a significant increase in cash flow from operating activities, which rose to $148.5 million from $129.9 million year-over-year, driven by changes in working capital.

Gentex's balance sheet showed total assets of $2.78 billion as of March 31, 2025, a slight increase from $2.76 billion at the end of 2024. Cash and cash equivalents increased to $286.6 million, up from $233.3 million, while accounts receivable rose by approximately $35.3 million, reflecting higher sales levels. The company’s inventory decreased to $408.9 million, down from $436.5 million, primarily due to reductions in raw materials and finished goods.

Strategically, Gentex completed the merger with VOXX International on April 1, 2025, which is expected to contribute between $240 million and $280 million in revenue for the year, excluding any impacts from tariffs. The merger aims to enhance Gentex's product offerings in automotive and consumer electronics. The company also incurred $0.9 million in acquisition costs related to this merger during the first quarter. Looking ahead, Gentex anticipates revenue in its primary markets to be between $2.1 billion and $2.2 billion for 2025, while revenue from the China market is projected to be between $50 million and $120 million, contingent on resolving tariff-related issues.