Why Gentex Stock Is Gaining Today?

Could a company defy industry trends and still post impressive gains? Gentex Corporation‘s GNTX latest earnings report raises eyebrows as it surges ahead despite a sluggish global auto market and tariff challenges.

Gentex Corporation GNTX shares are trading higher on Friday after the company reported quarterly earnings per share of 43 cents, beating the analyst consensus estimate of 37 cents.

• GNTX stock is surging on strong momentum. Check the price action here.

Consolidated adjusted earnings per diluted share attributable to Gentex was 47 cents, after removing expenses related to acquisition costs and severance-related charges during the quarter.

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Quarterly sales of $657.9 million (+15% year over year) outpaced the Street view of $604.874 million.

Gentex completed its acquisition of VOXX on April 1, which contributed $78.8 million of revenue for the second quarter of 2025.

“Given the overall weak light vehicle production in our primary regions, we are very pleased with our sales levels this quarter,” said Gentex President and CEO, Steve Downing. “This is particularly notable given the impact that tariffs and counter-tariffs have had on demand for our products, especially in the China market.”

Overall sales into China for Gentex during the quarter were approximately $33 million compared to the beginning-of-year forecast of $50 million to $60 million for second quarter sales into the domestic China market.

For the second quarter, the company’s consolidated gross margin was 34.2%, compared to a gross margin of 32.9% in the year-ago period, which did not include VOXX. 

The consolidated adjusted gross margin was 34.6%, reflecting the exclusion of a $2.5 million expense related to purchase accounting adjustments recorded under ASC 805, “Business Combinations,” in connection with the VOXX acquisition. 

Gentex expects third quarter 2025 global vehicle production to remain flat, with a 1% decline in its key markets.

Fourth quarter production is forecasted to fall 6% year-over-year, including sharp declines across China and other core regions.

For full-year 2025, production in Gentex’s primary markets is projected to drop 3%, with North America down 4%.

Outlook: Gentex raised its 2025 sales guidance to $2.44 billion–$2.61 billion, up from $2.15 billion–$2.32 billion. The updated forecast tops the Street estimate of $2.435 billion.

“Over the next several quarters, the company will continue executing the margin improvement initiatives that are targeted to get the core margin profile in line with our long-term target of 35% – 36%,” Downing added.

GNTX Price Action: Gentex shares were up 14.62% at $27.05 at the time of publication on Friday, according to Benzinga Pro.

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