Gentex Cuts 2026 Revenue Outlook to $2.65 Billion and Announces Annual Contract Worth About $180 Million
Key Facts
Gentex cut its revenue outlook for fiscal 2026 to about $2.65 billion, while announcing that it had won its first contract to assemble printed circuit boards, with an annual value of about $180 million. CEO Steve Downing said on the earnings call that the contract is with an existing automotive customer and that production is expected to begin in 2029. The contract announcement comes as the company posted quarterly sales below year-earlier levels, while quarterly revenue was about $35 million below the company’s forecast at the start of the period. These developments place a new manufacturing opportunity alongside near-term pressure on sales and margins. The company also cut its full-year gross margin outlook, while leaving its 2027 revenue range unchanged.
Gentex reported third-quarter 2026 net sales of about $647.7 million, compared with $655.2 million in the same period of 2025. The company said quarterly revenue was about $35 million below its forecast at the start of the period, citing problems at some customers and delayed product launches. Automotive sales fell to $552.5 million from $573.7 million a year earlier. The company said China and the loss of a Volkswagen program weighed on the segment, while automotive sales in Europe rose 13% excluding the program’s impact. The comparison shows that weaker automotive sales coincided with growth in some other categories, but did not prevent an overall year-over-year decline in sales.
Gross margin fell to 33.4% in the third quarter from 34.4% in the year-earlier period. Gentex attributed the decline mainly to higher precious-metal costs, a less favorable product mix and lower operating leverage as sales came in below expectations. Net income attributable to the company under generally accepted accounting principles was $90.6 million, while diluted earnings per share were $0.43. Adjusted diluted earnings per share were $0.47. The company now expects 2026 gross margin of 34.0%–34.5%, compared with its previous range of 34.5%–35.5%. It therefore cut its margin outlook alongside its annual revenue estimate.
Gentex updated its 2026 revenue outlook to about $2.65 billion, from a previous range of $2.65 billion to $2.75 billion. The company said global light-vehicle production is expected to decline by about 4% in the fourth quarter of 2026 compared with the same period of 2025, and by about 2% for the full year compared with 2025. By contrast, it kept its 2027 revenue outlook at $2.80–$2.90 billion. That outlook is based on an assumption that vehicle production in the company’s key markets will decline by about 1% in 2027. The estimates underscore the company’s reliance on the trajectory of vehicle production as it seeks to add new manufacturing business. Production under the new contract is scheduled to begin in 2029, according to the company and its CEO.
The premium audio category posted third-quarter sales of $54.7 million, up from $43.0 million a year earlier, an increase of about 27%. Revenue from non-automotive products also rose by about 17% year over year, accounting for 15% of total revenue, compared with about 12% in the third quarter of 2025. The figures reflect growth in activities outside traditional automotive sales, alongside a decline in automotive segment sales during the period. In the same quarter, Gentex repurchased 5.7 million shares at an average price of $23.44 per share, for a total of $132.6 million. The company said about 24.3 million shares remained available for repurchase as of September 30, 2026.