GNTX

Image source: The Motley Fool. Oct. 23, 2026 - Vice President of Investor Relations - Josh O'Berski - President and CEO - Steven R. Downing - COO and CTO - Neil Boehm - Vice President of Finance and CFO - Kevin C. Nash Operator: Good day, and thank you for standing by. Welcome to the Gentex report third quarter 26 financial results. At this time, all participants are in a listen only mode. After the speakers' presentation, we will open for questions. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's call is being recorded. I would now like to hand it over to our first speaker, Josh O'Berski, vice president of investor relations. Please go ahead. Josh O'Berski: Thank you. Good morning, and thank you for joining us today for our third quarter 26 earnings conference call. I am Josh O'Berski, Gentex Vice President of Investor. And with me today are Steven R. Downing, President and CEO; Neil Boehm, COO and CTO Kevin C. Nash, vice president of finance and CFO. Please note that a replay of this conference call webcast along with edited transcripts will be available following the call in the Investors section of our website at ir.gentex.com. Many of the statements made during today's call are forward looking and reflect our current expectations. These statements involve a number of risks and uncertainties, both known and unknown, including those described in our press release issued this morning and in our annual report on Form 10-K for the year ended 12/31/2025, as well as general economic conditions. Actual results may differ materially from these expressed or implied in these forward looking statements if risks or uncertainties materialize or if our assumptions prove to be incorrect. Ahead of our prepared remarks, I would like to remind the investment community that we will be participating in both the SEMA show from November 3rd through 6th, the 27 Consumer Electronics Show from January 6th through 9th, both in Las Vegas before our next call. At both of these events, there will be booth tours, product demonstrations, and an opportunity to see the future of our technology on display. If you are interested in joining us at these events, please reach out to me after this call or talk to your favorite analyst to join their scheduled booth tour. Now hand the call over to Steven R. Downing for our prepared remarks. Steven R. Downing: Thank you, Josh. For the third quarter, net sales were $647.7 million compared with $655.2 million in the third quarter of last year. Automotive unit performance was generally in line with our expectations, but revenue came in approximately $35 million below our beginning of quarter forecast due to certain customer issues and delayed launches. In North America, automotive revenue increased approximately 3% despite a 5% decline in regional light vehicle production. In Europe, revenue, excluding the Volkswagen program loss, increased approximately 13%. However, the Volkswagen headwind more than offset that underlying growth. Globally, automotive revenue excluding the previously discussed headwinds in China and at Volkswagen, increased approximately 2% despite global light vehicle production declining by more than 2%. That performance reflects the continued content growth we have been seeing across our primary automotive markets. Outside of automotive, premium audio revenue increased approximately 27% to $54.7 million, while aerospace, biometrics, fire protection, and automotive aftermarket revenue collectively increased about 5%. Overall, our third quarter results demonstrate the resilience of the business and the continued benefits of our strategy to grow through technology, product mix, and diversification. So despite the challenges in China and Europe, sales were relatively flat year over year. Strong performance in North America driven by continued adoption of advanced feature content and growth across our nonautomotive product lines, helped offset those headwinds. In Europe, the continued rollout of DMS and ICMS products help mitigate lower vehicle production and mirror unit shipments. Reinforcing the value of increasing content per vehicle. China remained a headwind with the industry conditions we have discussed continuing to pressure unit shipments and revenue. On the positive side, our diversification strategy continued to gain momentum. Nonautomotive revenue increased approximately 17% and represented 15% of total company revenue in the quarter compared with 12% in the third quarter of last year. Gross margin for the third quarter was 33.4% compared with 34.4% in the third quarter of 2020 5. The year over year decline was primarily driven by higher precious metals costs, unfavorable product mix and reduced operating leverage from lower than anticipated sales. While gross margin was below our expectations, the underlying drivers were relatively concentrated to just a couple of areas. Precious metal inflation has increased our bill of material costs over the last several quarters, and the sales shortfall relative to our forecast reduced our expected operating leverage. Our operations teams continue to perform well, and we remain focused on engineering solutions and other cost reduction opportunities to help offset inflation across several commodity areas. Consolidated operating expenses were $1.013 billion in the third quarter compared with $102.8 million last year. On an adjusted basis, operating expenses were $97.5 million compared with $101.8 million last year, Excluding impairment, acquisition related, and severance costs. The reduction in operating expenses on both a GAAP and adjusted basis reflects our continued focus on managing spending as sales growth has moderated during 2026. While we continue to focus on operating expenses, we are also supporting a significant number of launches and core R&D initiatives that are important to our long term growth. As we shared at our Analyst and Investor Day in August, we are making meaningful progress on the dimmable visor program. Which is scheduled to launch late next year. And we continue to move our large area device project closer to a qualified product with a scalable manufacturing footprint. Income from operations was $115.1 million for the third quarter, compared with $122.3 million last year. Adjusted income from operations was $118.8 million compared with $123.4 million in the third quarter of last year. Our effective tax rate for the quarter was 15.5%, compared with 16.3% in the third quarter of last year. Net income attributable to Gentex was $90.6 million, compared with $101 million last year. Adjusted net income attributable to Gentex was $97.8 million compared with $103.7 million in the third quarter of 2020 5. Diluted earnings per share attributable to Gentex were $0.43 compared with $0.46 in the third quarter of last year. On an adjusted basis, diluted earnings per share of $0.47 in both periods. I will now hand the call over to Kevin for some further financial details. Kevin C. Nash: Thanks, Steven. Automotive net sales were $552.5 million in the third quarter of 2020 6. Compared to $573.7 million in the third quarter of 2020 5. Automotive revenue performance during the quarter reflected expected unit trends and strong content growth across the company's primary markets. Reported results include discrete headwinds in China and from the VW program loss. Excluding these items, automotive revenue increased approximately 2% quarter over quarter led by significant North American market outgrowth and a 13% growth in Europe. Supported by favorable product mix and increased electronic content per vehicle. Net sales from the premium audio category were $54.7 million in the third quarter of 2020 6 compared with $43 million in the third quarter of 2020 5. An increase of approximately 27%. The increase was driven primarily by higher sales of home separates and systems products. Home separates growth reflected increased sales of Reference Premiere speakers, while systems growth was led by Flexis, second generation of the 5s, 7s, and 9s, and ProMedia products. Net sales from the other products category were $40.5 million in the third quarter of 2020 6 which was a 5% increase compared to the third quarter of 2020 5. Growth was driven primarily by aerospace and fire protection revenues, which increased a 13%, 5%, 36%, respectively, but were partially offset by lower aftermarket and accessory sales. During the third quarter of 2020 6, the company repurchased 5.7 million shares of its common stock at an average price of $23.44 per share, a total of $132.6 million. Year to date, the company has repurchased 11.6 million shares for a total of $270.2 million at an average price of $23.28 per share. And as of September thirtieth of 20 sixth, approximately 24.3 million shares remain available for repurchase under the previously announced share repurchase plan. Turning to the balance sheet. Our comparisons today are based on 09/30/2026 versus 12/31/2025. Starting with liquidity. Cash and cash equivalents were $134.4 million at quarter end compared to $145.6 million at year end, And short term and long term investments totaled $242.9 million compared to $278.4 million at the end of 2025. Accounts receivable was $404.6 million at September 30, compared to $368.5 million at year end. Reflecting the timing of sales and collections during the quarter. Inventories totaled $550.1 million September 30 compared to $516.3 million at year end primarily reflecting higher raw material balances associated with electronic components and precious metal related materials. And accounts payable was $263.6 million at September 30 compared to $249 million at year end. Primarily driven by timing of payments and inventory purchases. Preliminary cash flow from operations was $83.5 million for the quarter, compared with $147 million in the third quarter of 2020 The decline was primarily driven by working capital changes. Higher inventories along with higher accounts receivable due to sales and collection timing partially offset by higher payables levels. And for the first 9 months of 26, preliminary cash flow from operations totaled $405.2 million compared to $461.6 million the same period of 2025, also due to changes in working capital. Capital expenditures were $17.7 million for the third quarter compared with $35.6 million in the third quarter of 2025. And for the first 9 months of 2026, capital expenditures totaled $53.9 million compared with $103.4 million in the same period of 2025. And depreciation and amortization expense was $25.7 million in the third quarter of 2020 compared to $25.9 million last year. And for the first 9 months of 2026, depreciation and amortization expense totaled approximately $77.1 million compared with $78.8 million in the same period of 2025. I will now hand the call over to Neil for a product update. Neil Boehm: Thank you, Kevin. I would like to begin by thanking all of the analysts and investors that traveled to our facilities in Zeeland, Michigan in August. For our analyst and investor day. it is not always easy to get here, but being at our facilities allows us to demonstrate the progress and latest direction for many of our products. Investors were able to see the latest full display mirror, driver monitoring, and large area device products. It was also a great opportunity for us to take people on tours of the facilities. And see the capital and automation that has been put in place to support all of these technologies. So, again, you for taking the time to check out what we do. Now for a quick review of launches and product updates. In the third quarter of 2020 6, we continued to have strong feature launches of our automotive products. Automotive features like full display mirror, in cabin monitoring, HomeLink, and advanced feature auto-dimming mirrors accounted for over 80% of our launches in the quarter. it is clear that even with the headwinds facing our industry, the consumer demand for advanced features continues to grow. Full display mirror continues to perform well for Gentex. And the market acceptance has only increased for the product. At Cadillac, Gentex's full display mirror helped the Cadillac Escalade earn the comfort and convenience award in J. D. Power's 2026 U.S. Tech Experience index study. By enabling better visibility, eliminating blind spots, and requiring very little learning or adjustment from users. At our Analyst Day, we announced that we had launched as an accessory platform for Ford on the Super Duty. We believe there is further opportunity to continue rolling this out across their lineup and to drive increased volume on their high end trim packages. In Europe, full display mirror continues its steady progress. Launching this quarter on the DS7 and gaining traction at other customers in the region. 2026, we are still on target to achieve our 200 thousand to 400 thousand full display mirror unit increase over what we shipped in 2025. Driver monitoring and in cabin monitoring system launches continue to be strong. We are pleased to have launched on the Genesis GV 90 along with a handful of additional platforms at Hyundai, Kia, and BMW. These programs continue to grow through this year and into 2027. And we expect continued launches at these OEMs to help drive our $80 million to $100 million revenue target from DMS and ICMS for 2027. Customer interest in our dimmable visor large area device technology remains strong. Our first dimmable visor program remains on track with a start of production plan for the fourth quarter of 2020 7. We are actively working with other OEMs on the product design and testing to secure additional awards later this year and into early 27. The large area device product continues to improve in performance and durability, As we have been able to work through many of our biggest challenges, we are progressing well to move this to a production ready product. In September, our teams at Premium Audio took place in New York Fashion Week in collaboration with Luar, Our cinema speakers normally behind the theater screens or front and center, blending cultural relevancy with premium audio performance. The party continues at Klipsch Fest our homegrown celebration taking place on November 6th and 7th at our global Klipsch headquarters in Indianapolis. We will be wrapping up the 80th anniversary celebrations for Klipsch and Onkyo with a 2 day listening experience artifacts and memorabilia from the last 80 years facility tours, live listening demos, and a chance to experience a fleet of well equipped automotive and adventure vehicles. The premium audio teams have also been busy gearing up for the launch of our flagship headphone system, the Stratus series. Which hits the market in November along with the fan favorite Reference Premiere 3 passive home theater loudspeakers. On the Bluetooth speaker front, our music series Gen 2 will be launching this holiday season alongside Onkyo's Japanese design inspired creator series. GigaXtend-AIO all in 1 powered tabletop speaker system. So go out and purchase these awesome products. The holidays will never sound so good. These first 9 months of 2026 have been busy and rapidly changing in many ways. But the teams at Gentex have continued to deliver on the things that help set us apart from our peers. Quality, consistency, innovation. I will now hand the call back over to Steven for guidance and closing remarks. Steven R. Downing: Thanks, Neil. I think that is the first time I have ever heard you say cultural relevance. The company's light vehicle production assumptions are based on the mid-October 2026 S&P Global Mobility Outlook. Global light vehicle production is forecast to decline approximately 4% in the fourth quarter of 2020 6 and approximately 2% for full year 2026 compared with last year. Global production is expected to increase approximately 1% in 2027, However, production in our primary automotive markets of North America, Europe, and Japan Korea is forecast to decline approximately 1% with the only growth in LVP coming from China and other markets. Based on actual results for the first 9 months of 26, the light vehicle production forecast, and our expectations for the automotive, premium audio, and other products categories we are updating certain elements of our full year 2026 guidance. Consolidated revenue is now expected to be approximately $2.5 billion for the year. Gross margin is now expected to be between 34%-34.5% for the year. This range includes an estimated $10 million to $15 million of incremental cost increases expected in the fourth quarter with related recoveries not anticipated until the first half of 2027. Operating expenses, excluding severance and impairments, are now expected to be between $395 million and $410 million. The tax rate is now expected to be between 16% and 16.5%, Capital expenditures are now expected to be between $101 million to $115 million, and depreciation and amortization is now expected to be between $100 million and $105 million. Based on the mid-October 2026 S&P Global Mobility light vehicle production forecast, our current expectations for automotive, premium audio, and other products revenue, and despite the lower revenue for 2026, we are maintaining our 2027 revenue outlook of $2.8 billion to $2.9 billion This outlook represents a 6% to 9% revenue growth compared with our updated 2026 guidance despite light vehicle production in our primary markets being forecast to decline approximately 1%. We believe this represents a significant acceleration in outgrowth of the underlying market and reflects the increasing contribution from new technology higher content per vehicle, and our diversified customer base. As we look ahead, we are increasingly confident in the growth opportunities in front of us. We are beginning to see the impact of our broader product and growth are reflected in our forward outlook. This acceleration in growth is being driven by new technology, higher content per vehicle, and a more diversified customer base. The progress we demonstrated at our analyst and investor day in August also shows how far several of these programs have advanced towards commercialization. Our interior visor program and large area device portfolio continue to move forward Launches of our fourth generation full display mirror are now in full swing. And our engineering teams continue to improve product design and cost while delivering some of the most advanced technology and features we have ever offered. We are also pleased to have secured our first PCBA business award during the quarter with production expected to begin in 2029. This is another opportunity to leverage Gentex's advanced manufacturing capabilities and new products and markets and we are actively pursuing additional PCBA opportunities with similar production timing. While the new technology and launches are keeping us very busy, we are also actively managing the challenges developing across the supply chain. Strong demand for memory and other electronic components is creating supply constraints and cost pressure across the electronics industry. And precious metal pricing remains volatile after significant increase over the last year. We expect these pressures to continue into the fourth quarter and our teams are working with customers on appropriate reimbursement while our engineering teams pursue design changes and other cost reduction opportunities. Taken together, we believe that the higher content, new product launches, diversification, and expansion into new markets are changing the growth profile of Gentex. If we execute on these growth opportunities while continuing to offset the cost pressures facing the industry, we believe we can create meaningful long term value for our shareholders. That completes our prepared comments for today. We can now proceed to questions. Operator: Thank you. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for a name to be announced. To withdraw your question, please press *11 again. Please stand by while we compile the Q&A roster. 1 moment for our first question. Our first question will come from the line of Joseph Spak from UBS. Your line is open. Joseph Spak: Thanks. Good morning, everyone. Steven R. Downing: Good morning. Joseph Spak: I guess just to start, obviously, you know, a little bit more cost pressure here. At the end of the year, and, you know, you talked about the 10 to in the fourth quarter and you are expected to get that back in the first half. But like, it seems like, as you alluded to this, like, there is just sort of more general pressure. So, like, while you are gonna get back you know, in the first half next year, some of these costs are incurring now, Like, can you get to for lack of a better term, par in 2027 sort of be more real time, or you are always sort of playing catch up and you know, to that extent, does that add some risk that, you know, the 2027 gross margin is below the midterm level you laid out at the, Analyst Day? Steven R. Downing: Yeah. I mean, I think if you look at the delay, I mean, it is pretty normal in this industry. I mean, obviously, and, you know, we will get into some details probably about DRAM and the cost and what is happening with RAM pricing. But, obviously, that creates a bit of a headwind for us immediately because it takes a while for the customers to agree to what that new pricing is and so that is. Hence the delay, and terms of reimbursement. So you are always. Anytime there is escalating prices like this in our industry in particular, you are always behind that curve a little bit, but you do catch up. Now I would say the. You know, if you look at the precious metals, and what is going on in the rest of the commodities, some of those are more difficult to recover. The electronics piece is pretty cut and dry. it is just about timing of getting that back. And so, yeah, there definitely is some headwinds heading into next year. The 1 thing we have in our favor though is despite the headwinds on the bill material side, if we hit the growth rates we are talking about, we have not had a tailwind of the operational efficiency side of a growth rate like that in a bit. And so those can help offset quite a bit of the margin headwinds created by bill of material increases just through operational efficiency and the higher growth rate. And, obviously, the contribution margin on incremental sales always helps offset that as well. Joseph Spak: Okay. Thanks. Thanks for that. And then just, know, I noticed you did not give shipments in the release this quarter. It sounds. If I was following your math, it sounded like the VW and China headwinds, which you, you know, you have you have talked about for a while was, like, 6 percentage points, I think, to auto. But is there any sort of, like, high level commentary you give us for the auto business in terms of you know, what you know, between mirror volume, price, and mix, that sort of gets you to that, you know, reported 4% decline? Steven R. Downing: Yeah. If you look at you are talking about the 4% in terms of automotive, light vehicle production? Yeah. Yeah. Well, we will we will talk. If we talk units for a minute, you know, units were down, I think, about a million units on a year over year basis. And it is almost all tied directly to those 2 causes that you mentioned, both the China reductions and the Volkswagen loss. Okay. So then price. So then the rest. The difference the difference in that. Right. The difference in that is the growth in the other regions and in increased content. Okay. Okay. I will pass it on. Thanks. Analyst: Thanks. Operator: Thank you. 1 moment for our next question. Next question will come from the line of Rajat Gupta from JPM. Your line is open. Rajat Gupta: Great. Thanks for taking the questions. I mean, it looks like you feel comfortable retrading the 27% outlook know, despite. I think, like, it is 2 quarters in a row where you know, you know, revenue has come in weaker. Than expected. Like, how should we get comfortable with that outlook Have you figured out any offsets? You know, already, you know, to some of the challenges you are seeing right now? Or is it just some delays from this year that are pushing it into next year? Yeah. And then maybe, you know, if you could give us any sense of, like, how much it is, like, the 2027 revenue is kind of contracted versus, you know, dependent on more wins? Thanks. Steven R. Downing: Yeah. So, that is a great question. If you look at it, there is. You are absolutely right. The quarter came in this year lighter than anticipated. We kind of referenced it in the press release, but really, it was driven by a couple OEM launches. And 1 of them. And 1 of them was also. It was also impacted by the Hyundai Kia strike. The union strike in. On the ground there. And so that, I think that took a good 60, 70 thousand units out of production for us during that during the third quarter. Unfortunately for us, it was also where we were launching DMS and ICMS and FDM. And so you had a disproportionate impact due to those units because it is where we were launching some of our highest content. So not only did it delay those products, but then the ramp up was slower because as they were come. As the strike was ending and they are getting back online, the volumes come in as high as we were expecting. And then the other 1 was, Neil mentioned the, f 53 launch. It was a little late. Little later than we and the launch volumes were not quite what we expected. So the big misses were there. So if you take those out of it, we view those as onetime in nature. And so should not impact go forward in 2027. Like we mentioned before, the growth for 2027 is really driven by additional full display mirror growth, additional ICMS, and driver monitoring awards. And then the other reason why we feel confident in keeping in keeping that guidance is, we had. VOXX team had announced that they have done a deal with Alpine to take over distribution for Alpine products. And so if you look at that, that is gonna be another tailwind heading into next year that we were not anticipating initially when we very. When we gave our very first 2027 guidance. Rajat Gupta: Understood. that is that is helpful. And then just to tie a bow to, like, the previous question around, like, just know, just margin and recovery into next year. You know, any early prelim color you can give us you know, on the margins for next year? You know, what are the puts and takes we should keep in mind? And do you expect to you know, improve gross margins on an annualized basis? You know, like, just how you are gonna manage OpEx, you know, just given some of the choppiness here? Thanks. Steven R. Downing: No. I mean, if I was doing the way too early college football top 25, I would probably say, you know, next year is next year is probably more in that 33 to 34% range. And, obviously, we are shaking out a lot of deals right now with our supply base on what is going on with the electronic supply constraints and there. there is there is a lot of them right now. I mean, we are not talking about just RAM anymore. You are starting to talk about issues with raw PCBs. there is a there is a lot of pressure on the industry right now. So we are still trying to fight through that. So if I were if I were given that way too early prediction, I would say that is probably the right range to think about it. The headwinds are actually probably would tend to drive that below that. But we believe with the growth and some of the new launches, we will that will help offset some of those headwinds we are seeing on the bill material side. Got it. Rajat Gupta: And then OpEx would be would be contained? In that background. Steven R. Downing: Yeah. I imagine. Yep. Yep. Understood. Thanks for the color, good luck. Analyst: Yeah. Operator: Thank you. Thank you. Our next question will come from the line of Davis Baker from Robert W. Baird. Your line is open. Davis Baker: Hey. Good morning, guys. Thanks for taking the questions. Maybe to start, could you provide some additional color on what you are seeing in the components market? Just given the incremental tightening in supply? And then along the same lines, just advantages of your internal PCB capacity in this environment? Neil Boehm: Sure. Yeah. I. A little bit color just on electronic components, and Steven will add some more on top of it. You know, we are seeing the impact. Obviously, the DDR and the memory piece has been a significant challenge for several quarters and will continue, into 2027 as well. So that is obviously everybody knows about that 1. Circuit boards is another 1 that is really jumped up as a cost, and it is not actually the circuit board itself. it is actually subcomponents multiple tiers below that material is getting consumed and replaced for data center circuit boards. So we are starting to see multiple tiers below the supply is getting tighter to be able to build automotive boards. Which means prices are gonna continue to move upward. Those are big ones. there is a lot of activity around passive devices as well, but at this stage, those are all manageable and contained. But as we look into 2027, they will all. There will be additional constraints put in some of those areas. Steven R. Downing: And to put this and to put this in the like, just kind of rough ballparks, I mean, what we are seeing from our existing supply base is wild. Anywhere from 8x to 10x price increases on a per unit basis. So I mean, literally, a component that cost $4 or $5 this. Earlier this year is now $40. And so that is a lot of the headwinds that we are kinda working through right now, both how to how to manage that with our customer base, how to make sure we are getting appropriate reimbursement, and then also longer term realizing that, you know, that type of cost structure will not support the business model for these products. So we have gotta engineer our way out of those. Neil Boehm: Solutions. Yeah. Back to the component shortage days. 5 years, 4 years ago, where we learned how to iterate designs and drive VAVE cost savings initiatives through. The teams have been doing a great job on that with precious metals this year, so we have been able to start driving some improvements and savings that we will see some good savings through or lack of increases in 2027. But also with products like our full display mirror generation 4, as that starts, we are launching that actively at multiple customers That rollout begins in 2028. That product does not use the DDR. So we have designs that working on to get around these challenges. it is just gonna take through 2027 to get them get them deployed. Davis Baker: Davis, so you also asked about PCB capacity. Correct? Yeah. Neil Boehm: I just saw that. it is an advantage in the environment. Yeah. Steven R. Downing: So we are we are sitting really good. I mean, obviously, with some of the reductions in volumes, we have seen, we have, we do have capacity in our electronics manufacturing footprint. As we prepare for the PCBA, award that we talked about in the prepared comments, we are actively working on what does that floor space need to look like. We feel like to get started, we have plenty as it is, but we are, not opposed to adding additional capacity. Depending on the size and profitability of the awards. And so it is something that we will continue to monitor, and we are excited about looking forward to because it is a very unique footprint from a geography standpoint, where we manufacture. And it definitely has a lot of appeal right now to many customers in terms of our location in The US and our ability to do high end electronics. In a very efficient manner. So it is something that we keep looking at and pushing hard for, and quite frankly, I mean, we are really excited about this opportunity outside of automotive as well. Alright. Thanks, guys. I will take the rest offline. Good luck with the rest the day. Analyst: Thanks, David. Thanks, Davis. Operator: Thank you. Our next question will come from the line of James Picariello from BNP Paribas. Your line is open. James Picariello: Hey. Good morning, everybody. Steven R. Downing: Just Good morning. James Picariello: On the implied for on the implied 2 revenue guide, right, if we assume continued strong growth in the other segment it would still imply a mid single digit type growth rate for auto sales, maybe something around 4%. On a year over year basis. Can you just share the visibility you have terms of the bridge to see that inflection on a year over year basis for the fourth quarter? Because obviously, the first 3 quarters, given the China challenges, issues with the VW business, we have not seen that type of growth rate thus far this year. Steven R. Downing: Yeah. I mean, we are. All of our short term forecasts are built based customer orders. As they have been consistently, but they do not usually also predict strikes. So, I mean, the nice part about getting back to production is some of those launches that we said were delayed. DMS, I ICMS, and FDM, you know, the volume starts to pick back up in the fourth quarter. Where they were kinda lacking in Q3. So that is where you start to get visibility. But, yeah, our Q4 numbers are really based on primarily customer orders. And if you look at the from the box or the PAC side, this ends up being the strongest part of their season as well. And we are seeing good demand as you have seen the sales growth on a year over year basis all year. And that is and that is really been driven by brand new products. Right. So know, the growth that we have seen earlier in the year, we would not expect to not produce similar outgrowth versus last year given the, demand for the newer products. Yep. Got it. Well, thank you. James Picariello: And then just back on the electronic sourcing for next year and the inflationary recoveries that will be the swing. Be a swing factor. So this year on yesterday, almost doubled their expectation for DRAM and semis recoveries. For next year relative to a high forecast that they already had in place. And they tied it back to the 2022 time frame. We saw all that significant inflationary pressure on semis. Just curious if you would relate it back to that time period as well in terms of what you are. How you. How you are thinking about next year? And if you could, remind us what the level of recoveries were for, you know, back in 2022, if that is a good context for you guys? Thank you. Steven R. Downing: Yes. I. I would say, first of all, we are not in our forecast right now for next year. We are really not modeling significant price increases due to the recovery. So I mean, and the reason why we are saying that is there is gonna be a combination of a recovery period and. But we are hopeful that we can get through that recovery period in fairly short order. And move on to, like, what Neil was describing, which is redesigns It keeps the price point more attainable for our customer base and the consumer. But there is definitely a tailwind from a pure revenue basis, from pricing. The potential for price increases. The issue is obviously there is virtually no margin on those once you do recover once you recover the actual cost change. So, you know, we are looking at this on a pure baseline basis. We are not building in any of that growth tied to recoveries helping drive that price. Understood. Analyst: Thanks. James? Operator: Thank you. Next question comes from the line of Mark Delaney from Goldman Sachs. Your line is open. Mark Delaney: Yes. Good morning, thank you for taking the questions. Another 1, if I could, please, around the scope of the cost challenges. I think the electronics and semiconductor buy from Gentex has been running at least previously at about an 800 million annualized level. I know you spoke about some components seem pretty substantial increases, but I imagine it is it is only certain pieces of the buy. So I do not know if you could help us with where that $800 million would be running at with current spot rates and help us sensitize the scope of the cost issues that the company is currently seeing. Steven R. Downing: Wanna go. I am I am going off of a mixture of, like, 26 updates and 27 forecast. So it is probably. I would not quote me on this exact number. But I think the last thing I looked at was somewhere in the $900 million range, and that might have included some of the price increases that we are talking about. But that is the. You are you are right. 800 kinda hits. Probably over the trailing 12 is probably about right. As we kind of right now and look forward, it is probably gonna be closer to that $900 million range, maybe even more depending on if we hit our sales growth levels. Neil Boehm: If you try to back it up to 22, it is really hard to make a direct comparison to what we saw there. I mean, I would say it was different it was different in that, like, you really had a handful of mic that really drove the vast majority of cost increases. Mhmm. But there were other deflationary areas too. I mean, like LCDs were still deflationary. Passes. Yeah. And the passes were still pretty stable. Yeah. it is I would not I would not say it is dissimilar from a from a strategic standpoint. it is just totally different areas of the electronics buy that are that are now inflationary. Mark Delaney: Understood. And you have met a question around supply chain. As you look at the growth you are expecting to drive and 2027, I know that the cost of driving that growth will be higher with where you are seeing components come in at. But just in terms of the availability, maybe just speak a bit more around getting enough volume of these parts for next year to support all of these different opportunities in front of Gentex. Steven R. Downing: Yeah. No. that is a great question. that is the. Probably the most challenging part. I mean, once you even agree on pricing, you still have the you still have the potential for constraints. Mhmm. 1 of the things we always work hard on that is why Kevin talked a little bit about inventories being higher, know, we try to make sure we have plenty of inventory on hand, and, obviously, the value of that inventory rises as the price goes up. But, you know, we are not shy about making sure we secure as much as we can and keep it in, on hand. So we are constantly working with the supply base. I would say the immediate risk right there is still a DDR. it is probably the most constrained commodity right now. As we move forward, though, as Neil mentioned, as a lot of the raw circuit board manufacturers have changed their manufacturing process, over to what is needed for. Their process, what is needed over for data centers. Obviously, that is removed some capacity from the automotive support side. it is something that we are looking at very carefully now. We obviously have multiple suppliers. We can rely on, but trying to make sure we secure that capacity for next year becomes really important. Especially given the growth rate that we are seeing. Yeah. Mark Delaney: Just 1 last follow-up there, and then I will I will pass it on. But just you know, kinda how far are you with that process, Mark? You kinda halfway there? I know maybe it is just kinda early in the planning phase, so maybe that is just typical not to kinda be fully secured for an extra as long as I just get a little bit more color around how far along you are some of those supply discussions and how much more work is left to be done. Thank you. Steven R. Downing: Yeah. Yeah. No. Thanks, Mark. I would say for most things, we are clear through the end of the year through most things we are probably good all the way through midpoint next year. Yep. there is just a handful of there that we are worried about, you know, between now and the and midpoint next year. Beyond that, you know, if you start looking at those levels, once we get through the first half of the year, as long. Those run rates should be pretty close to what they end the year run rates are. So if we can get through the first half, we should be pretty good for the second half. But, obviously, that is a lot of work that goes into the supply base, giving them longer term leads, making sure we have above out year forecast that give them the planning they need to be able to pull that off. So it is, it is it is a lot of work. I would say we are probably about halfway through next year where we feel pretty good. Thank you. Operator: 1 moment for our next question. Our next question will come from the line of Matthew Mayes from B. Riley Securities. Your line is open. Analyst: Hi. Congrats on the first PCBA award. I am just wondering, can you share the type of customer and roughly the annual revenue and whether it lines up with $1.50 to 200 million you framed and always Yep. Steven R. Downing: No. Thank. First of all, thanks. it is. It was a lot of work going into that. So I appreciate that. It is an auto. 1 of our existing automotive customers. And that first award is annualized at about $180 million a year roughly. Got it. Analyst: Alright. Great. that is helpful. And in terms of advisers, I am wondering, like, is there any update on adding adviser customers ahead of the late 27 launch? Neil Boehm: Yeah. I mean, I mentioned it briefly that a lot of work going on there. We got 3 additional customers that are pretty active and doing evaluations, but nothing to announce yet as far as a sale or closure of a deal yet. Analyst: Got it. Last question for me. Just a quick 1. In terms of capital allocation, you roughly doubled the buyback this quarter. Just wondering how we should think about that pace going forward and the possible dividend increases, if any. Steven R. Downing: Yeah. I think I think right now from a total return standpoint, we are probably gonna tend to focus more on the share repurchase side. Obviously, you know, we have we have been. The stock has not performed at all really well over the last year and so I. When we look at these prices versus what our growth rate and our cash generation is over the next couple years, we struggle to understand the stock price. And so when we see downturns like this, we tend to get more aggressive like what you saw in Q2. So I think what you will see out of us is probably very similar in what we did in Q2 as we move through the end of this year and then the next. Got it. Great. That was all for me. Thanks for taking my questions. Analyst: Thanks, Matthew. Thanks, Matthew. Operator: Thank you. And as a reminder, that is 11 for questions. Star 1. Our next question will come from the line of David Whiston from Morningstar. Your line is open. David Whiston: Thanks. Good morning. On precious metal inflation, is there any kind of major obvious fix that would be out there beyond your control such as the Iran war ending or anything like that? Steven R. Downing: Is this go well beyond any kind of geopolitical conflicts? it is it is it is well beyond that. I mean, you look at if you look at our primary. If you look at ones that are hurting the most, right, silver, gold, and ruthenium. Those are the 3 biggest commodity areas that have hurt from a pricing standpoint. The silver and gold are interesting because they are industrial products. Obviously, there is been a big move to. Towards investment grade as well. And so you see this surge in demand, data centers, you know, electronic. Custom electronics, these type of products all use silver and gold. And so the demand has gone up on the industrial side. it is also gone up on the investment grade side. And so it is just been a lot of pressure there. Ruthenium is a much more thinly traded commodity. Kevin C. Nash: Very difficult. Steven R. Downing: I mean, I think Kevin, that is probably up 500% in the last year and a half. Mhmm. And so that 1's been kind of a runaway train. Our real approach there is less about, you know, getting help from supply is not gonna increase dramatically in either of these No. Case. James to lower cost. So 1 of the things that Neil team has been working on very hard is how do we create VAVE opportunities that reduce the amount of material that needs to be used in each of our products and the teams have already launched and executed a handful of those. We have a bunch more that we will be rolling out over the next 18 months. And so the goal is to just to minimize the headwind associated with those with those commodity prices. Okay. David Whiston: Thanks. And then on China, I know maybe it is little early to ask this, but do you see any chance of real improvement there in 2027 versus 2026? Steven R. Downing: No. I mean, our plan our plan right now is that you know, we think we are basically at kind of a stable level of what our China business will be. There will probably be likely a little bit of headwinds yet, but we are not expecting any tailwinds anytime soon. Okay. And are there any other major supply chain constraints out there? David Whiston: No. Steven R. Downing: I would say. I wanna say, I think we hit most of them. I mean, if you look at you know, DDR and raw PCBs, or those would probably be the biggest Okay. Thank you. Analyst: Thanks, David. Thanks, David. Operator: Thank you. I am not showing any further questions in the queue at this moment. I will now turn it back over to Josh for closing remarks. Josh O'Berski: Alright. Thank you everyone for your time and questions today. We look forward to seeing our customers and investors at CEMA and CES. Other than that, we hope everyone has a good weekend and good rest of your day. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Gentex (GNTX) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Revenue performance was impacted by approximately $35 million in customer-specific issues and delayed launches, despite automotive unit performance aligning with internal expectations. - North American automotive revenue grew 3% even as regional production fell 5%, demonstrating the company's ability to outpace market declines through increased feature content per vehicle. - China remains a persistent headwind due to challenging industry conditions that continue to pressure both unit shipments and overall revenue. - The diversification strategy gained significant momentum, with non-automotive revenue rising 17% to represent 15% of total company revenue, up from 12% in the prior year. - Gross margin compression was primarily driven by higher precious metals costs, unfavorable product mix, and reduced operating leverage resulting from the sales shortfall. - Management is aggressively managing operating expenses, excluding one-time costs, to align with moderated sales growth while maintaining R&D for long-term initiatives. - The company secured its first PCBA business award during the quarter, leveraging advanced manufacturing capabilities for a non-mirror application expected to start in 2029. - Management maintained its 2027 revenue target of $2.8 billion to $2.9 billion, assuming significant market outgrowth driven by new technology launches and a diversified customer base. - The 2027 outlook includes an expected $80 million to $100 million in revenue from Driver Monitoring (DMS) and In-Cabin Monitoring (ICMS) systems. - Fourth quarter 2026 gross margins are expected to face $10 million to $15 million in incremental cost increases, with reimbursement from customers not anticipated until the first half of 2027. - The dimmable visor program remains on track for a fourth-quarter 2027 production start, with active testing underway to secure additional OEM awards. - Future margin recovery is dependent on engineering solutions to bypass expensive components, such as the Gen 4 Full Display Mirror which eliminates the need for costly DDR memory. - Precious metal volatility, specifically in silver, gold, and ruthenium, continues to pressure the bill of materials, with ruthenium prices up approximately 500% over the last 18 months. - Supply constraints in the electronics industry have led to extreme price spikes, with some components increasing 8x to 10x in cost on a per-unit basis. - A labor strike at Hyundai-Kia in the third quarter resulted in a loss of approximately 60,000 to 70,000 units, disproportionately affecting high-content products like FDM and DMS. - The loss of a major Volkswagen program continues to serve as a significant regional headwind in Europe, offsetting underlying growth in other European accounts. - Management attributed the Q3 miss to one-time events like the Hyundai-Kia strike and delayed launches, which are not expected to impact 2027 performance. - Confidence is bolstered by a new distribution deal for Alpine products and the continued ramp-up of high-value electronic features. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - DDR memory remains the most constrained commodity, but new pressures are emerging in raw PCBs as manufacturers shift capacity toward data center demand. - Management noted that some components previously costing $4 or $5 have spiked to $40, necessitating aggressive customer reimbursement negotiations and engineering redesigns. - Early projections suggest a 33% to 34% range, as growth-driven operational efficiencies are expected to partially offset persistent bill-of-material headwinds. - Management clarified that they are not currently modeling significant margin gains from inflationary recoveries, as those typically carry zero margin. - The company doubled its buyback pace this quarter because management believes the current stock price does not reflect the company's growth rate and cash generation potential. - Capital allocation will continue to prioritize share repurchases over dividend increases while the stock remains at these levels. - The award is with an existing automotive customer and is expected to generate approximately $180 million in annualized revenue starting in 2029. - This represents a strategic move to utilize excess manufacturing capacity for high-end electronics outside of traditional mirror products.

Gentex (GNTX) came out with quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -7.84%. A quarter ago, it was expected that this maker of automatic-dimming rearview mirrors and other products would post earnings of $0.5 per share when it actually produced earnings of $0.58, delivering a surprise of +16%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Gentex, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $647.71 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 3.21%. This compares to year-ago revenues of $655.24 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Gentex shares have lost about 6.6% since the beginning of the year versus the S&P 500's gain of 12%. While Gentex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Gentex was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $667.3 million in revenues for the coming quarter and $2.06 on $2.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Ferrari (RACE), has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3. This luxury sports car maker is expected to post quarterly earnings of $2.66 per share in its upcoming report, which represents a year-over-year change of +6.4%. The consensus EPS estimate for the quarter has been revised 2.1% lower over the last 30 days to the current level. Ferrari's revenues are expected to be $2.11 billion, up 2.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gentex Corporation (GNTX) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Gentex Corporation? Here are five stocks we like better. - Q3 performance weakened: Revenue fell to $647.7 million and net income declined to $90.6 million, as customer issues, delayed launches, lower China sales and the loss of a Volkswagen program left sales about $35 million below forecast. - Growth areas provided some offset: Non-automotive revenue rose 17%, while advanced automotive features such as Full Display Mirror and driver-monitoring systems continued gaining traction. Gentex also secured a PCBA award expected to generate about $180 million in annualized revenue beginning in 2029. - 2026 guidance was reduced, but 2027 remains intact: Gentex now expects approximately $2.65 billion in 2026 revenue and 34%–34.5% gross margins, pressured by precious-metals and electronics costs. The company maintained its 2027 revenue outlook of $2.8 billion–$2.9 billion and repurchased $132.6 million of shares during Q3. - Miso Robotics stock: Is an IPO coming soon? Gentex (NASDAQ:GNTX) reported third-quarter 2026 net sales of $647.7 million, down from $655.2 million a year earlier, as customer issues and delayed product launches caused revenue to fall about $35 million below the company's beginning-of-quarter forecast. Net income attributable to Gentex declined to $90.6 million from $101 million in the prior-year quarter, while diluted earnings per share fell to $0.43 from $0.46. On an adjusted basis, net income was $97.8 million, compared with $103.7 million a year earlier, while adjusted diluted EPS was unchanged at $0.47. → The AI Buildout Is Only 15% Complete—Here Is Where the Next Dollar Actually Goes - Analysts Recommend These Stocks To Cushion The Automotive Slump "Automotive unit performance was generally in line with our expectations," President and CEO Steve Downing said. "But revenue came in approximately $35 million below our beginning of quarter forecast due to certain customer issues and delayed launches." Automotive net sales were $552.5 million, compared with $573.7 million in the third quarter of 2025. The company cited discrete headwinds from lower business in China and the loss of a Volkswagen program. Excluding those items, automotive revenue increased about 2% despite a more than 2% decline in global light-vehicle production, according to management. → GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? In North America, automotive revenue rose about 3% despite a 5% decline in regional light-vehicle production. In Europe, revenue excluding the Volkswagen program loss increased approximately 13%, aided by favorable product mix and higher electronic content per vehicle. During the question-and-answer session, Downing said automotive unit shipments declined by roughly 1 million units year over year, with most of that reduction tied directly to China and the Volkswagen loss. He said growth in other regions and increased vehicle content helped offset those declines. → Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Management also pointed to launch timing and a Hyundai Kia labor strike as contributors to the quarterly revenue shortfall. Downing said the strike reduced Gentex production by an estimated 60,000 to 70,000 units during the quarter and disproportionately affected launches involving driver-monitoring systems, in-cabin monitoring systems and Full Display Mirror products. Non-automotive revenue increased approximately 17% and represented 15% of total company revenue, up from 12% a year earlier. Premium audio revenue climbed 27% to $54.7 million, led by increased sales of home separates and systems products, including Reference Premiere speakers, Flexus products and other systems offerings. Revenue from the company's other products category rose 5% to $40.5 million. Aerospace revenue increased 135% and fire-protection revenue rose 36%, partly offset by lower aftermarket and accessory sales. Chief Operating Officer and Chief Technology Officer Neil Boehm said advanced automotive features accounted for more than 80% of launches during the quarter. These included Full Display Mirror, in-cabin monitoring, HomeLink and advanced feature OEC mirrors. Gentex remains on track to increase Full Display Mirror unit shipments by 200,000 to 400,000 units in 2026 from 2025 levels, Boehm said. The company also reiterated a target of $80 million to $100 million in 2027 revenue from driver-monitoring and in-cabin monitoring systems. The company's first Dimmable Visor program remains scheduled for fourth-quarter 2027 start of production. Gentex said it is working with other original equipment manufacturers on product design and testing in pursuit of additional awards. Its large-area device technology is also progressing toward a production-ready product, according to management. Third-quarter gross margin was 33.4%, down from 34.4% a year earlier. Gentex attributed the decline to higher precious-metals costs, unfavorable product mix and lower operating leverage stemming from sales that fell short of expectations. Adjusted operating expenses declined to $97.5 million from $101.8 million, excluding impairment, acquisition-related and severance costs. Adjusted income from operations was $118.8 million, compared with $123.4 million in the prior-year period. Downing said the company faces substantial cost pressure in certain electronic components, particularly DDR memory, as well as raw printed circuit boards. He said some component prices being quoted by suppliers were eight to 10 times higher than earlier in the year. Gentex expects to pursue customer reimbursement for electronics inflation while also redesigning products to reduce costs. "The electronics piece is pretty cut and dry," Downing said, referring to the recovery process. "It is just about timing of getting that back." He added that precious-metals inflation can be more difficult to recover. The company said it was generally secure on supply through year-end and for most requirements through the midpoint of 2027, though DDR memory and raw printed circuit boards remain areas of concern. Gentex has increased inventory holdings in part to secure components, management said. Gentex updated its full-year 2026 outlook, now expecting consolidated revenue of approximately $2.65 billion. The company forecasts gross margin between 34% and 34.5%, including an estimated $10 million to $15 million of incremental fourth-quarter cost increases that it does not expect to recover until the first half of 2027. - Operating expenses, excluding severance and impairments: $395 million to $410 million - Effective tax rate: 16% to 16.5% - Capital expenditures: $100 million to $115 million - Depreciation and amortization: $100 million to $105 million Despite lowering its 2026 revenue expectation, Gentex maintained its 2027 revenue outlook of $2.8 billion to $2.9 billion. That range represents 6% to 9% growth from the updated 2026 forecast, even as light-vehicle production in Gentex's primary markets of North America, Europe and Japan/Korea is expected to decline about 1%. The outlook is supported by anticipated growth in Full Display Mirror, driver-monitoring and in-cabin monitoring products, as well as an expected contribution from Alpine distribution following a deal announced by the company's VOXX business, according to Downing. Gentex also announced its first printed circuit board assembly, or PCBA, business award during the quarter. Downing said the award came from an existing automotive customer, is expected to begin production in 2029 and represents roughly $180 million in annualized revenue. On capital allocation, Gentex repurchased 5.7 million shares during the third quarter for $132.6 million, at an average price of $23.44 per share. Through the first nine months of 2026, the company repurchased 11.6 million shares for $270.2 million. Approximately 24.3 million shares remained authorized for repurchase as of Sept. 30. Gentex Corporation (NASDAQ:GNTX) is a technology manufacturer headquartered in Zeeland, Michigan. Founded in 1974, the company develops products primarily for the automotive industry, along with selected applications in the aerospace and fire-protection markets. Gentex is best known for its automatic-dimming rearview and side-view mirrors, which use electrochromic technology to reduce glare. Its automotive product portfolio also includes camera-based driver-assistance systems, digital vision and sensing technologies, connected-car products, overhead console systems, and HomeLink universal garage-door and home-control systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Gentex Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

ZEELAND, Mich., Oct. 23, 2026 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, and consumer electronics, today reported financial results for the three and nine months ended September 30, 2026. Third Quarter 2026 Highlights - Net sales of $647.7 million - North American automotive revenue growth outpaced regional light vehicle production by approximately 800 basis points - Gross margin of 33.4% - Income from operations (GAAP) $115.1 million; adjusted income from operations (non-GAAP) $118.8 million - Net income attributable to Gentex (GAAP) $90.6 million; adjusted net income attributable to Gentex (non‑GAAP) $97.8 million - Earnings per diluted share attributable to Gentex (GAAP) $0.43; adjusted earnings per diluted share (non‑GAAP) $0.47 - Share repurchases: 5.7 million shares repurchased during the quarter for a total of $132.6 million - Awarded first printed circuit board assembly ("PCBA") contract with production expected to begin in 2029 Financial Summary For the third quarter of 2026, the Company reported net sales of $647.7 million, compared to net sales of $655.2 million in the third quarter of 2025. Automotive unit performance during the quarter was consistent with expectations; however, revenue for the quarter was approximately $35 million below the Company's forecast at the beginning of the quarter due to certain customer issues and delayed launches in the quarter. North American automotive revenue for the third quarter of 2026 increased approximately 3% compared to the third quarter of 2025 despite a 5% decline in regional light vehicle production. In Europe, automotive revenue performance produced a 13% year-over-year growth rate, apart from the Volkswagen program loss, which more than offset the growth in the rest of the region. Globally, automotive revenue performance achieved a 2% year over year growth apart from the previously announced headwinds in China and with VW. This performance occurred despite global light vehicle production declining by more than 2% year over year during the third quarter of 2026. Automotive revenue was driven from content growth across the Company's primary automotive markets. In addition, revenue from the Company's other product categories grew meaningfully, led by a 27% year-over-year increase in Premium Audio revenue to $54.7 million, while Other Products, including Aerospace, Biometrics, Fire Protection, and Automotive Aftermarket, revenue collectively increased by 5% year over year. "Our third quarter results demonstrate the resilience of our business and the continued benefits of our strategy to grow through technology, product mix, and diversification," said Steve Downing, President and CEO. "Despite continued challenges in China and Europe, we delivered third quarter net sales that were relatively flat compared to the third quarter of 2025 even though revenue was approximately $35 million below our beginning-of-quarter forecast. Our results benefited from strong performance in North America through continued adoption of our advanced feature content, and from growth across our non-automotive product lines. In Europe, the continued rollout of DMS and ICMS products helped offset lower vehicle production and mirror unit shipments, which demonstrates the necessity and value of increasing content per vehicle. China remained a known headwind during the quarter, with previously discussed industry conditions continuing to pressure both unit shipments and revenue. Outside of automotive, our diversification strategy is gaining momentum, with non-automotive revenue increasing approximately 17% year over year and representing 15% of total Company revenue during the third quarter. In comparison, in the third quarter of 2025, non-automotive revenue was approximately 12% of total revenue." For the third quarter of 2026, the Company's gross margin was 33.4%, compared to a gross margin of 34.4% for the third quarter of 2025. The year-over-year change was primarily driven by higher precious metal costs and the impact of lower-than-anticipated sales, which resulted in unfavorable product mix and reduced operating leverage during the quarter. "While gross margin was below our expectations for the quarter, the underlying drivers were relatively concentrated. The higher precious metal costs which increased bill of material costs has been an ongoing headwind over the last few quarters as these commodity prices have increased significantly. And despite the impressive performance from the operations teams, the sales shortfall versus our beginning of quarter forecast reduced operating leverage for the quarter. We remain focused and confident in the Company's ability to engineer solutions to help offset the inflationary cost environment that exists in a number of different commodity areas," remarked Downing. Consolidated operating expenses during the third quarter of 2026 were $101.3 million, compared to operating expenses of $102.8 million in the third quarter of 2025. On a non-GAAP basis, adjusted operating expenses were $97.5 million in the third quarter of 2026, compared to $101.8 million in the third quarter of 2025, when adjusted for certain impairment and severance expenses during each of the quarters. "The decrease in operating expenses on a GAAP and an adjusted basis reflects the Company's continued focus on managing operating expenses as sales growth has moderated during 2026. Despite the decrease in operating expenses, our teams continue to execute on a significant number of launches and core R&D initiatives that are imperative for us to achieve our strategic growth initiatives," said Gentex COO and CTO Neil Boehm. "As demonstrated during our Shareholder and Investor Day in August, the Company is making meaningful progress on the development and launch of our dimmable visor product, which is scheduled to launch late next year. The team also continues to move our large area device R&D project closer to a qualified product, with a volume manufacturing footprint that can scale to support the significant volume we are expecting from customers once the product is fully validated," concluded Boehm. Income from operations for the third quarter of 2026 was $115.1 million, compared to income from operations of $122.3 million for the third quarter of 2025. On a non-GAAP basis, adjusted income from operations was $118.8 million in the third quarter of 2026, compared to $123.4 million in the third quarter of 2025. Total other loss was $7.8 million during the third quarter of 2026, compared to other loss of $1.8 million in the third quarter of 2025. On a non-GAAP basis, adjusted other loss was $3.1 million in the third quarter of 2026, compared to other income of $0.4 million in the third quarter of 2025. The year-over-year change primarily reflects certain credit loss reserves and investment-related charges, partially offset by higher investment income and gains on asset and investment sales. During the third quarter of 2026, the Company had an effective tax rate of 15.5%, compared to an effective tax rate of 16.3% during the third quarter of 2025. Net income attributable to Gentex for the third quarter of 2026 was $90.6 million, compared to $101.0 million in the third quarter of 2025. On a non-GAAP basis, adjusted net income attributable to Gentex was $97.8 million in the third quarter of 2026, compared to $103.7 million in the third quarter of 2025. Earnings per diluted share attributable to Gentex for the third quarter of 2026 were $0.43, compared to earnings per diluted share of $0.46 for the third quarter of 2025. On a non-GAAP basis, adjusted earnings per diluted share were $0.47 for the third quarter of 2026, and for the third quarter of 2025. Segment Revenue Automotive Automotive net sales were $552.5 million in the third quarter of 2026, compared to $573.7 million in the third quarter of 2025. Automotive revenue performance during the quarter reflected expected unit trends and strong content growth across the Company's primary markets. Reported results included discrete headwinds in China and from the VW program loss. Excluding these items, automotive revenue increased approximately 2% quarter over quarter, led by significant North American market outgrowth and a 13% growth in Europe (excluding the VW program loss), supported by favorable product mix and increased electronic content per vehicle. Premium Audio Net sales from the Premium Audio category were $54.7 million in the third quarter of 2026, compared to $43.0 million in the third quarter of 2025, an increase of approximately 27%. Other Products Net sales from the Other Products category were $40.5 million in the third quarter of 2026, which was a 5% increase compared to the third quarter of 2025. Growth was driven primarily by Aerospace and Fire Protection revenues, which increased 135% and 36%, respectively, but were partially offset by lower aftermarket and accessory sales. Share Repurchases During the third quarter of 2026, the Company repurchased 5.7 million shares of its common stock at an average price of $23.44 per share, for a total of $132.6 million. Year-to-date, the Company has repurchased 11.6 million shares for a total of $270.2 million, at an average price of $23.28 per share. As of September 30, 2026, the Company had approximately 24.3 million shares remaining available for repurchase under its previously announced share repurchase plan. The Company intends to continue to repurchase additional shares of its common stock in support of the previously disclosed capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic issues, market trends, and other factors that the Company deems appropriate. Future Estimates The Company's light vehicle production assumptions are based on the mid-October 2026 Mobility Global outlook. Global light vehicle production is forecast to decline approximately 4% in the fourth quarter of 2026 and approximately 2% for full-year 2026, compared with the respective prior-year periods. Global light vehicle production is expected to increase approximately 1% in 2027, compared to 2026; however, production in the Company's primary automotive markets of North America, Europe, and Japan/Korea is forecasted to decline approximately 1%, with growth concentrated in China and other markets. Forecasted production volumes for the fourth quarter of 2026 and calendar years 2026 and 2027 are presented below. Light Vehicle Production (Mobility Global mid-Oct light vehicle production forecast) (in Millions) Region | Q4 2026 | Q4 2025 | % Change | | Calendar Year 2027 | Calendar Year 2026 | Calendar Year 2025 | | 2027 vs 2026 % Change | 2026 vs 2025 % Change North America | 3.50 | 3.58 | (2 | ) | % | | 15.10 | 14.99 | 15.27 | | 1 | | % | (2 | ) | % Europe | 4.28 | 4.34 | (1 | ) | % | | 16.90 | 17.16 | 17.05 | | (2 | ) | % | 1 | | % Japan and Korea | 3.18 | 3.10 | 3 | | % | | 11.87 | 12.26 | 12.07 | | (3 | ) | % | 2 | | % China | 8.98 | 9.79 | (8 | ) | % | | 31.52 | 31.01 | 33.10 | | 2 | | % | (6 | ) | % Total Light Vehicle Production | 19.94 | 20.81 | (4 | ) | % | | 75.39 | 75.42 | 77.49 | | — | | % | (3 | ) | % | | | | | | | | | | | | | | Based on actual results for the first nine months of 2026, the updated Mobility Global light vehicle production forecast, and the Company's expectations for its Automotive, Premium Audio, and Other Products categories, the Company is updating certain elements of its full-year 2026 guidance as set forth below. The updated guidance reflects the anticipated impact of all known tariffs effective as of October 23, 2026. 2026 Annual Guidance (as of October 23, 2026) - Consolidated Revenue: Approximately $2.65 billion (previously $2.65 – $2.75 billion) - Gross Margin: 34.0% – 34.5% (previously 34.5% – 35.5%). The updated guidance includes an estimated $10 million to $15 million of incremental cost increases that are expected in the fourth quarter of 2026, with related recoveries not anticipated to be reimbursed until the first half of 2027. - Operating Expenses (excluding severance and impairments): $395 – $410 million (previously $405 - $415 million) - Tax Rate: 16% – 16.5% (previously 16% - 17%) - Capital Expenditures: $100 – $115 million (previously $115 - $125 million) - Depreciation & Amortization: $100 – $105 million (previously $100 - $110 million) 2027 Revenue Guidance Based on the mid-October 2026 Mobility Global light vehicle production forecast and the Company's current expectations for Automotive, Premium Audio, and Other Products revenue, the Company is maintaining its 2027 revenue outlook of $2.80 billion to $2.90 billion. This outlook assumes light vehicle production in the Company's primary markets declines approximately 1% in 2027. Closing Remarks "As we look ahead, we are increasingly confident in the growth opportunities in front of us," said Downing. "We are beginning to see the impact of our broader product and growth strategy reflected in our forward-looking guidance. Despite a light vehicle production environment in our primary markets that is currently expected to decline approximately 1% in 2027, we are maintaining our 2027 revenue outlook of $2.80 billion to $2.90 billion, which is a significant acceleration in outgrowth versus the underlying market. We believe the growing divergence between our revenue expectations and the underlying light vehicle production environment reflects the increasing contribution from new technology, higher content per vehicle, and our diversifying customer base. The progress we demonstrated at our Shareholder and Investor Day in August provides further evidence of how far several of these programs have advanced towards commercialization, including our interior visor program and the large area device product portfolio. Launches of our fourth-generation FDM are now in full swing, and our engineering teams continue to improve product design and cost while delivering some of the most advanced technology and features we have ever offered our customers. We are also pleased to announce that during the third quarter we secured our first PCBA business award, with production currently expected to begin in 2029. This award represents another important opportunity to leverage Gentex's advanced manufacturing capabilities in new products and markets, and we are actively pursuing additional PCBA opportunities with anticipated production timelines beginning in or around the same period. While we remain optimistic regarding our future growth opportunities, we are actively managing the challenges developing across the supply chain. Significant demand for memory and other electronic components is creating supply constraints and cost pressure across much of the electronics industry. Additionally, precious metals pricing is increasingly volatile with many of the metals used in our core products experiencing significant cost increases over the last year. And while these cost headwinds are expected to continue into the fourth quarter, our teams are actively engaged with our customers to establish the need for appropriate reimbursement. Additionally, our engineering teams are committed to pursuing design changes and other cost-reduction opportunities to mitigate these pressures. We believe the combination of higher content, new product launches, diversification, and expansion into new markets is changing the growth profile of the Company. We are also convinced that achieving our growth objectives while we focus our internal efforts to offset the many cost pressures facing the industry can combine with our aggressive approach to share repurchases to create meaningful long-term shareholder value," concluded Downing. Safe Harbor for Forward-Looking Statements This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as "anticipate," "believe," "confident," "could," "estimate," "expect," "forecast," "future," "goal," "guidance," "hope," "intend," "likely", "may," "opinion," "optimistic," "outlook," "plan," "poised," "predict," "project," "should," "strategy," "target," "will," "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control and could cause the Company's results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers, including the ability to be reimbursed for increasing costs; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); delays in program launches; changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates and uncertainties in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; our ability to successfully develop and commercialize new products and new markets (such as PCBA); and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading "Risk Factors" in the Company's most recent Form 10-K and subsequent Form 10-Q filed with the SEC, which risks and uncertainties include tariffs and supply chain constraints that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by Mobility Global Light Vehicle Production Forecast of October 15, 2026 (http://www.gentex.com/forecast-disclaimer). Third Quarter Conference Call A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, October 23, 2026. Participants who wish to ask questions may register for the call at https://register-conf.media-server.com/register/BIf16d76cd30ef4ccb9104c3f057fb46e5. It is recommended that participants join 10 minutes prior to the event start, although they may register ahead of the call and dial in at any time during the call. Participants may listen to the call via audio streaming https://edge.media-server.com/mmc/p/xisihger. A webcast replay will be available approximately 24 hours after the conclusion of the call at https://ir.gentex.com/events-and-presentations/upcoming-past-events. About the Company Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, and consumer electronics. Visit the Company's web site at http://www.gentex.com. Contact Information: Gentex Investor & Media Contact Josh O'Berski 616.931.3505 GENTEX CORPORATION AUTOMOTIVE SALES BY REGION (Thousands) | | Three Months Ended September 30, | Nine Months Ended September 30, Region | | Q3 2026 | | Q3 2025 | | % Change | | YTD 2026 | | YTD 2025 | | % Change North America | | $ | 263,279 | | $ | 255,942 | | 3 | | % | | $ | 781,212 | | $ | 709,760 | | 10 | | % Europe+ | | | 126,624 | | | 126,798 | | — | | % | | | 419,508 | | | 423,080 | | (1 | ) | % Japan/Korea | | | 129,005 | | | 140,126 | | (8 | ) | % | | | 380,147 | | | 429,393 | | (11 | ) | % China | | | 22,072 | | | 39,107 | | (44 | ) | % | | | 82,686 | | | 115,143 | | (28 | ) | % Rest of World | | | 11,541 | | | 11,686 | | (1 | ) | % | | | 29,976 | | | 38,277 | | (22 | ) | % Total | | $ | 552,521 | | $ | 573,659 | | (4 | ) | % | | $ | 1,693,529 | | $ | 1,715,653 | | (1 | ) | % | | | | | | | | | | | | | | | | | | +VW's European business represented an approximately $16.6 million quarter over quarter revenue headwind and a $37.5 million year to date revenue headwind during the third quarter. GENTEX CORPORATION LIGHT VEHICLE PRODUCTION BY REGION (Thousands) | Three Months Ended September 30, | Nine Months Ended September 30, Region | Q3 2026 | | Q3 2025 | | % Change | | | YTD 2026 | | YTD 2025 | | % Change North America* | 3,785 | | 3,970 | | (5 | ) | % | | 11,484 | | 11,696 | | (2 | ) | % Europe* | 3,905 | | 3,872 | | 1 | | % | | 12,879 | | 12,710 | | 1 | | % Japan/Korea* | 2,893 | | 2,923 | | (1 | ) | % | | 9,074 | | 8,993 | | 1 | | % China | 7,875 | | 8,366 | | (6 | ) | % | | 22,022 | | 23,304 | | (6 | ) | % Rest of World | 4,274 | | 3,966 | | 8 | | % | | 12,325 | | 11,577 | | 6 | | % Total | 22,732 | | 23,097 | | (2 | ) | % | | 67,784 | | 68,280 | | (1 | ) | % | | | | | | | | | | | | | | | *Primary Markets | 10,583 | | 10,765 | | (2 | ) | % | | 33,437 | | 33,399 | | — | | % | | | | | | | | | | | | | | | GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME | | (Unaudited) | | (Unaudited) | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Net Sales | | | 647,709,651 | | | | 655,236,055 | | | | 1,974,452,482 | | | | 1,889,867,355 | | | | | | | | | Cost of Goods Sold | | | 431,378,974 | | | | 430,069,318 | | | | 1,288,497,162 | | | | 1,247,676,128 | Gross Profit | | | 216,330,677 | | | | 225,166,737 | | | | 685,955,320 | | | | 642,191,227 | | | | | | | | | Engineering, Research & Development | | | 51,568,685 | | | | 52,634,707 | | | | 152,480,305 | | | | 150,030,348 | Selling, General & Administrative | | | 45,925,812 | | | | 49,686,902 | | | | 145,755,108 | | | | 128,135,262 | Impairment Charges | | | 3,000,000 | | | | — | | | | 5,800,000 | | | | — | Severance Expense | | | 776,979 | | | | 518,190 | | | | 1,862,392 | | | | 10,191,438 | Operating Expenses | | | 101,271,476 | | | | 102,839,799 | | | | 305,897,805 | | | | 288,357,048 | | | | | | | | | Income from Operations | | | 115,059,201 | | | | 122,326,938 | | | | 380,057,515 | | | | 353,834,179 | | | | | | | | | Other Income/(Loss) | | | (7,842,477 | ) | | | (1,756,230 | ) | | | (17,964,539 | ) | | | (4,165,750 | ) Income (Loss) Before Income Taxes | | | 107,216,724 | | | | 120,570,708 | | | | 362,092,976 | | | | 349,668,429 | | | | | | | | | Income Tax Provision | | | 16,651,840 | | | | 19,684,004 | | | | 58,923,261 | | | | 58,257,230 | | | | | | | | | Net Income (Loss) | | | 90,564,884 | | | | 100,886,704 | | | | 303,169,715 | | | | 291,411,199 | Less: Net Income (Loss) attributable to non-controlling interest | | | — | | | | (81,206 | ) | | | (539,730 | ) | | | (470,340 | ) Net Income (Loss) Attributable to Gentex Corporation | | $ | 90,564,884 | | | $ | 100,967,910 | | | $ | 303,709,445 | | | $ | 291,881,539 | | | | | | | | | Earnings Per Share Attributable to Gentex Corporation(1) | | | | | | | | Basic | | $ | 0.43 | | | $ | 0.46 | | | $ | 1.44 | | | $ | 1.31 | Diluted | | $ | 0.43 | | | $ | 0.46 | | | $ | 1.44 | | | $ | 1.31 | | | | | | | | | Cash Dividends Declared per Share | | $ | 0.12 | | | $ | 0.12 | | | $ | 0.36 | | | $ | 0.36 | | | | | | | | | (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | | September 30, 2026 | | December 31, 2025 | | (Unaudited) | | (Note) ASSETS | | | | Cash and Cash Equivalents | | $ | 136,444,273 | | $ | 145,645,715 Short-Term Investments | | | 9,225,472 | | | 5,386,566 Accounts Receivable, net | | | 404,572,897 | | | 368,517,569 Inventories, net | | | 550,087,498 | | | 516,253,617 Other Current Assets | | | 80,554,516 | | | 92,631,001 Total Current Assets | | | 1,180,884,656 | | | 1,128,434,468 | | | | Plant and Equipment - Net | | | 775,713,271 | | | 790,935,378 | | | | Goodwill | | | 360,854,260 | | | 357,211,919 Long-Term Investments | | | 233,639,174 | | | 272,975,939 Intangible Assets, net | | | 180,793,694 | | | 189,341,387 Deferred Tax Asset | | | 118,557,294 | | | 108,338,592 Patents and Other Assets, net | | | 90,043,020 | | | 81,355,151 Total Other Assets | | | 983,887,442 | | | 1,009,222,988 | | | | Total Assets | | $ | 2,940,485,369 | | $ | 2,928,592,834 | | | | LIABILITIES AND SHAREHOLDERS' INVESTMENT | | | | Current Liabilities | | $ | 404,425,501 | | $ | 387,542,969 Other Non-current Liabilities | | | 50,945,536 | | | 49,209,006 Deferred Income Taxes | | | 1,209,205 | | | 908,922 Redeemable Non-controlling Interest | | | — | | | 3,102,213 Shareholders' Investment | | | 2,483,905,127 | | | 2,487,829,724 Total Liabilities & Shareholders' Investment | | $ | 2,940,485,369 | | $ | 2,928,592,834 | | | | | | Note: The condensed consolidated balance sheet at December 31, 2025 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. GENTEX CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) In this press release, the Company has provided information regarding certain non-GAAP financial measures, which are reconciled to their most directly comparable GAAP financial measure in the following schedules. Use of the term "adjusted" or "excluding" in connection with a financial measure identifies and reflects a non-GAAP financial measure. Beginning in the first quarter of 2026, the Company revised its non-GAAP presentation to include Adjusted Other (Loss) Income. As a result, prior-period non-GAAP measures presented herein have been revised to conform to the current presentation. Management believes the revised presentation enhances period-over-period comparability and provides investors with a more consistent view of the Company's performance. These revisions affect only the presentation of non-GAAP financial measures and do not affect the Company's previously reported GAAP results. Non-GAAP Financial Measures: The Company has presented Adjusted Operating Expenses, Adjusted Income from Operations, and Adjusted Other (Loss) Income as supplemental measures of the Company's performance. Current quarter Adjusted Operating Expenses, Adjusted Income from Operations, and Adjusted Other (Loss) Income exclude impairment charges, acquisition related costs, and severance costs, in each case as set forth in the table below. | | (Unaudited) | | Three Months Ended September 30, | | Consolidated 2026 | Consolidated 2025 | | | Operating Expenses - GAAP | | $ | 101,271,476 | | $ | 102,839,799 | Less: | | | Impairment Charge - Intangible Assets | | | 3,000,000 | | | — | Acquisition Related Costs | | | — | | | 568,040 | Severance Costs | | | 776,979 | | | 518,190 | Adjusted Operating Expenses - (Non-GAAP) | | $ | 97,494,497 | | $ | 101,753,569 | | | | Income from Operations - GAAP | | $ | 115,059,201 | | $ | 122,326,938 | Less: | | | Impairment Charge - Intangible Assets | | | 3,000,000 | | | — | Acquisition Related Costs | | | — | | | 568,040 | Severance Costs | | | 776,979 | | | 518,190 | Adjusted Income from Operations - (Non-GAAP) | | $ | 118,836,180 | | $ | 123,413,168 | | | | Other (Loss) Income - GAAP | | $ | (7,842,477 | ) | $ | (1,756,230 | ) Less: | | | Impairment Charge - Technology Investment | | | (4,744,703 | ) | | (2,194,148 | ) Adjusted Other (Loss) Income - (Non-GAAP) | | $ | (3,097,774 | ) | $ | 437,918 | | | | | | | | Adjusted Net Income and Adjusted Earnings per Share: Adjusted Net Income and Adjusted Earnings per Share are presented as supplemental measures of the Company's performance. Adjusted Net Income is defined as Net Income adjusted for impairment charges, acquisition related costs, and severance costs during the third quarter of 2026 and third quarter of 2025. Adjusted Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding. | | (Unaudited) | | Three Months Ended September 30, | | 2026 Consolidated | 2025 Consolidated | | | Net Income Attributable to Gentex Corporation - GAAP | | $ | 90,564,884 | $ | 100,967,910 Impairment Charges - Intangible Assets, net of tax | | | 2,534,070 | | — Acquisition Related Costs, net of tax | | | — | | 475,304 Severance Costs, net of tax | | | 656,306 | | 433,592 Impairment Charges - Technology Investment, net of tax | | | 4,007,803 | | 1,835,938 Net Income (Loss) Attributable to Gentex Corporation - (Non-GAAP) | | $ | 97,763,063 | $ | 103,712,744 | | | Adjusted Earnings Per Share: | | | Basic | | $ | 0.47 | $ | 0.47 Diluted | | $ | 0.47 | $ | 0.47 | | | The Company believes that the presentation of these non-GAAP financial measures provides insight into the Company's core performance and trends with respect to the same. Management of the Company similarly uses such non-GAAP financial measures in assessing the business internally. This press release was published by a CLEAR® Verified individual.

Wall Street expects a year-over-year decline in earnings on lower revenues when Camping World (CWH) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This recreational vehicle retailer and services provider is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -62.8%. Revenues are expected to be $1.68 billion, down 6.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 12.5% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Camping World, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Camping World will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Camping World would post earnings of $0.56 per share when it actually produced earnings of $0.57, delivering a surprise of +1.79%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Camping World doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Automotive - Original Equipment industry, Gentex (GNTX), is soon expected to post earnings of $0.51 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +10.9%. This quarter's revenue is expected to be $669.17 million, up 2.1% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Gentex has been revised 0.7% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.66%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Gentex will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Camping World (CWH) : Free Stock Analysis Report Gentex Corporation (GNTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Gentex (GNTX), which belongs to the Zacks Automotive - Original Equipment industry, could be a great candidate to consider. This maker of automatic-dimming rearview mirrors and other products has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 12.55%. For the last reported quarter, Gentex came out with earnings of $0.58 per share versus the Zacks Consensus Estimate of $0.5 per share, representing a surprise of 16.00%. For the previous quarter, the company was expected to post earnings of $0.44 per share and it actually produced earnings of $0.48 per share, delivering a surprise of 9.09%. For Gentex, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Gentex currently has an Earnings ESP of +0.66%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 23, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gentex Corporation (GNTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Gentex (GNTX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This maker of automatic-dimming rearview mirrors and other products is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $669.17 million, up 2.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Gentex, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.66%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Gentex will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Gentex would post earnings of $0.5 per share when it actually produced earnings of $0.58, delivering a surprise of +16.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Gentex appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Automotive - Original Equipment industry, Visteon (VC), is soon expected to post earnings of $2.35 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +9.3%. This quarter's revenue is expected to be $936.99 million, up 2.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Visteon has been revised 1.3% down to the current level. Nevertheless, the company now has an Earnings ESP of -4.05%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Visteon will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gentex Corporation (GNTX) : Free Stock Analysis Report Visteon Corporation (VC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research