GNTX earnings analysis
What we found in GNTX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Gentex delivered Q2 GAAP diluted EPS of $0.54, up from $0.43 a year ago, despite a 1% revenue decline to $651.3 million. Margin performance was strong, with gross margin rising to 37.0% and calculated operating margin reaching 21.7%, though approximately $18 million of tariff reimbursements materially aided cost of goods sold. Automotive weakness remains the key offset: automotive sales fell to $560.2 million and mirror shipments declined 10%, while management maintained its $2.65 billion-$2.75 billion FY2026 revenue outlook amid an expected 3% global light-vehicle-production decline.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Earnings rose despite modest sales decline
- Q2 revenue was $651.3 million, down 1% year over year from $657.9 million and down 3.5% sequentially from $675 million in Q1 2026. Despite the sales decline, GAAP diluted EPS rose to $0.54 from $0.43 a year ago and $0.46 in Q1 2026.
- Gross margin expanded sharply
- GAAP gross margin expanded to 37.0% from 34.2% in Q2 2025 and 33.9% in Q1 2026. Approximately $18 million of IEEPA tariff reimbursements reduced Q2 cost of goods sold, alongside favorable mix.
- Operating leverage drove profit growth
- GAAP operating income increased to $141.3 million from $118.5 million in Q2 2025; the calculated operating margin rose to 21.7% from 18.0%. Operating expenses fell to $99.7 million from $106.8 million, primarily because the prior year included severance costs.
- Non-auto categories grew
- Premium Audio sales increased $7.2 million year over year to $51.7 million, while Other sales rose 12% to $39.4 million. Dimmable aircraft-window sales grew to $6.5 million from $4.0 million, and security/access-control sales were $2.7 million, up $2.5 million.
- Cash generation and liquidity strengthened
- Six-month operating cash flow reached a record first-half $321.7 million, up $7.0 million year over year, while capex declined to $36.2 million from $67.8 million. Cash increased $87.8 million to $233.4 million and working capital increased to $825.8 million from $740.9 million.
- Margin outlook raised; capex outlook reduced
- Management maintained FY2026 revenue guidance of $2.65 billion-$2.75 billion, raised gross-margin guidance by 50 basis points to 34.5%-35.5%, and cut capex guidance to $115 million-$125 million from $125 million-$140 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Automotive volumes and international demand weakened
- Automotive sales declined to $560.2 million from $578.1 million, while total auto-dimming mirror shipments fell 10% to 10.416 million units. International interior-mirror shipments declined 26% to 3.928 million units, reflecting lower production and demand in key overseas markets.
- Tariff reimbursement benefit may not recur
- The 37.0% Q2 gross margin benefited from approximately $18 million of tariff reimbursements. Gentex has directly paid approximately $42 million of IEEPA tariffs, and management says the availability, amount, and timing of further refunds are uncertain.
- Investment impairments and credit losses increased
- Other loss increased to $4.5 million from $3.0 million, including a $9.4 million technology-investment impairment and a $2.9 million increase in loan-receivable credit-loss reserves. Six-month technology-investment impairments totaled $12.2 million.
- 2026 vehicle-production outlook remains negative
- The company forecasts global light-vehicle production to decline 3% in 2026 to 75.49 million units from 77.49 million in 2025; China is forecast to decline 5% to 31.58 million units. Automotive represented approximately 86% of first-half revenue, making production conditions material.
- Receivables and inventories increased
- Accounts receivable increased approximately $17.8 million and inventories increased to $519.0 million from $516.3 million at year-end. The working-capital build can pressure cash conversion if customer payment timing or demand weakens.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.54
- Gross margin
- 37.0%
- Operating margin
- 21.7%
- Segment
- Automotive net sales: $560.2 million, down from $578.1 million in Q2 2025 (-$17.9 million).
- Segment
- Premium Audio Product net sales: $51.7 million, up from $44.5 million in Q2 2025 (+$7.2 million).
- Segment
- Other net sales: $39.4 million, up from $35.2 million in Q2 2025 (+12%).
What they said about what is next.
FY2026 consolidated revenue outlook remains $2.65 billion-$2.75 billion. Gross-margin outlook was raised to 34.5%-35.5% from 34.0%-35.0%; operating-expense outlook was reduced to $405 million-$415 million from $410 million-$420 million; capex was reduced to $115 million-$125 million from $125 million-$140 million. The company continues to expect 2027 revenue of $2.80 billion-$2.90 billion.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Gentex delivered a strong performance in Q1 2026 with consolidated revenue of $675.4 million, up 17% year-over-year, surpassing estimates. The reported diluted EPS of $0.46 also exceeded projections, reflecting core…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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