Gentex Narrows 2026 Sales Range After a Miss

The Tip Desk · October 27, 2026 · 4 min read

Gentex lowered full-year 2026 revenue to about $2.65 billion from a $2.65–$2.75 billion range and trimmed gross-margin guidance to 34.0%–34.5% after third-quarter sales of $647.7 million ran about $35 million below its start-of-quarter forecast.

Gentex Corporation (GNTX), a supplier of digital vision, connected-car systems, dimmable glass, fire-protection technologies and consumer electronics, lowered its 2026 revenue outlook to approximately $2.65 billion, the bottom of its previous $2.65 billion to $2.75 billion range, and narrowed its gross-margin outlook after third-quarter sales of $647.7 million came in about $35 million below the forecast it had set at the start of the quarter.

The company said automotive unit performance was consistent with expectations, but revenue missed because of certain customer issues and delayed launches. Gross-margin guidance was reduced to 34.0%–34.5% from 34.5%–35.5%. The updated margin range includes an estimated $10 million to $15 million of incremental cost increases expected in the fourth quarter, with related recoveries not anticipated to be reimbursed until the first half of 2027.

Gross margin in the third quarter was 33.4%, down from 34.4% a year earlier. Gentex attributed the year-over-year decline primarily to higher precious-metal costs and to lower-than-anticipated sales that produced unfavorable product mix and reduced operating leverage. Sequentially, the margin also fell from 37.0% in the second quarter, a period that had included about $18 million of IEEPA tariff reimbursements that reduced cost of goods sold.

Automotive net sales were $552.5 million, versus $573.7 million in the third quarter of 2025. Excluding China and the Volkswagen program loss, automotive revenue increased approximately 2% quarter over quarter. North American automotive revenue rose about 3% year over year despite a 5% decline in regional light-vehicle production, outpacing production by about 800 basis points. China automotive revenue fell 44% year over year to $22.1 million. Japan/Korea automotive revenue fell 8% to $129.0 million. Europe automotive revenue was essentially unchanged at $126.6 million, with VW’s European business an approximately $16.6 million quarter-over-quarter headwind.

Non-automotive lines continued to expand. Premium Audio net sales were $54.7 million, up about 27% from $43.0 million a year earlier. Other Products net sales were $40.5 million, up 5% year over year, with Aerospace up 135% and Fire Protection up 36%, partially offset by lower aftermarket and accessory sales. Non-automotive revenue increased approximately 17% year over year and represented 15% of total company revenue, versus about 12% in the third quarter of 2025.

GAAP income from operations was $115.1 million, versus $122.3 million a year earlier; adjusted income from operations was $118.8 million, versus $123.4 million. GAAP net income attributable to Gentex was $90.6 million, versus $101.0 million; adjusted net income was $97.8 million, versus $103.7 million. Diluted earnings were $0.43 a share, versus $0.46; adjusted diluted earnings were $0.47 in both periods. Consolidated operating expenses were $101.3 million, versus $102.8 million a year earlier.

The company repurchased 5.7 million shares in the quarter for $132.6 million at an average $23.44 a share, versus 2.7 million shares for $66.0 million in the second quarter. Year-to-date, it had repurchased 11.6 million shares for $270.2 million, leaving about 24.3 million shares available under the plan.

Operating-expense guidance excluding severance and impairments was lowered to $395 million–$410 million from $405 million–$415 million. Capital-expenditure guidance was cut to $100 million–$115 million from $115 million–$125 million. Depreciation and amortization guidance was $100 million–$105 million, versus $100 million–$110 million. Tax-rate guidance was 16%–16.5%, versus a prior 16%–17%.

Gentex maintained its 2027 revenue outlook of $2.80 billion to $2.90 billion, assuming light-vehicle production in its primary markets declines approximately 1% in 2027. The company’s narrative forecast said global light-vehicle production would decline about 4% in the fourth quarter of 2026 and about 2% for full-year 2026, then increase about 1% in 2027, with growth concentrated in China and other markets. Its accompanying Mobility Global table showed a 3% full-year 2026 decline (75.42 million versus 77.49 million) and global production essentially flat in 2027 (75.39 million).

During the third quarter the company awarded its first printed-circuit-board-assembly contract, with production expected to begin in 2029, and said it is pursuing additional PCBA opportunities with anticipated production timelines beginning in or around the same period. President and CEO Steve Downing said the company is actively managing supply-chain constraints, including memory and electronic-component shortages and volatile precious-metals pricing, and that engineering teams are pursuing design changes and cost-reduction opportunities.