GENTEX CORP
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 4, 2026
GNTX$19.88-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0000355811-26-000026
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000355811-26-000048
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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Added paragraphs (50)
Current report
SECOND QUARTER 2026 VERSUS SECOND QUARTER 2025
Current report
Net Sales. Consolidated net sales for the second quarter of 2026 decreased by $6.6 million or 1%, when compared with the second quarter of 2025.
Current report
Premium Audio Product net sales increased during the second quarter of 2026 to $51.7 million compared to $44.5 million in the second quarter of 2025.
Current report
Cost of Goods Sold. For the second quarter of 2026, the Company's consolidated gross margin was 37.0% compared to 34.2% in the same quarter last year. The quarter over quarter increase in the gross margin resulted primarily from approximately $18 million of IEEPA tariff reimbursements received during the quarter, that reduced cost of goods sold as well as favorable product mix, which was partially offset by commodity price increases and the reduction in overall sales levels compared to the second quarter of last year. The Company recognized refunds of tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") during the second quarter of 2026. As of June 30, 2026, the Company had received approximately $38 million of IEEPA tariff reimbursements, of which approximately $18 million was recorded as a reduction of cost of goods sold. Since the inception of the IEEPA tariffs, the Company has directly paid approximately $42 million of such tariffs, excluding amounts incurred indirectly through suppliers, which was partially offset by approximately $5 million of recoveries from customers. The Company continues to evaluate and pursue tariff refund opportunities where appropriate; however, the availability, amount, and timing of any additional refunds remain uncertain and are subject to ongoing legal, regulatory, and administrative developments.
Current report
SIX MONTHS ENDED JUNE 30, 2026 VERSUS SIX MONTHS ENDED JUNE 30, 2025
Current report
On April 1, 2025, the Company completed its acquisition of VOXX. As such VOXX results were only consolidated with the Company's for the last three months of the six months ended June 30, 2025. During the six months ended June 30, 2026, VOXX's results have been included for the entire period.
Current report
Net Sales. Net sales for the six months ended June 30, 2026, increased by $92.1 million or 7%, when compared with the same period in 2025, despite light vehicle production that declined 2% in the Company's primary markets period over period. The increase was primarily driven by the inclusion of VOXX results for the full six-month period in 2026, compared to only three months in the comparable 2025 period.
Current report
Automotive net sales declined $1.0 million or 0.1%, when comparing the six months ended June 30, 2026 to the same period in 2025. Sales during the six months ended June 30, 2026, were negatively impacted by lower sales into the China market, as well as lower sales in Europe due to vehicle mix and certain customer-specific product challenges. There was an 8% decrease in automotive mirror unit shipments in the six months ended June 30, 2026, to 21.3 million units, compared with 23.1 million units in the same period in 2025, which was driven by a 12% period over period decrease in interior auto-dimming mirror unit shipments. VOXX automotive net sales contributed $27.8 million as a result of being included in the consolidated Company results for the full year to date period.
Current report
Premium Audio Product net sales increased to $103.6 million for the six months ended June 30, 2026, from $44.5 million for the six months ended June 30, 2025. This increase was primarily attributable to the timing of the VOXX acquisition, which occurred on April 1, 2025. Accordingly, the six months ended June 30, 2025 included Premium Audio Product net sales only for the period from April 1, 2025 through June 30, 2025, and did not include comparable sales for the three months ended March 31, 2025. Premium Audio Products also generated positive operating income during the six months ended June 30, 2026, reflecting the continued benefits of integration activities, operating improvements, and cost management initiatives implemented following the VOXX acquisition.
Current report
Other net sales were $82.2 million for the six months ended June 30, 2026, compared to $48.1 million in the same period of 2025, an increase of 71% (due in part to the inclusion of VOXX sales for the entire six month period, compared to only three months being included in the same prior year period). Other net sales for the six months ended June 30, 2026, included biometric product sales of $5.7 million, primarily generated from the Company's BioConnect subsidiary acquired on July 1, 2025. Fire protection sales were $17.1 million in the six months ended June 30, 2026, compared to $14.8 million in the same period of last year. Dimmable aircraft window sales increased during the six months ended June 30, 2026 to $14.9 million, compared to $8.9 million in the same period of last year.
Current report
Cost of Goods Sold. As a percentage of net sales, cost of goods sold decreased to 64.6% for the six months ended June 30, 2026, versus 66.2% in the same period last year. The improvement in the gross margin for the six months ended June 30, 2026 was driven by tariff refunds, purchasing cost reductions, improved product mix, and operational efficiencies. The Company recognized refunds of tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") during the second quarter of 2026. As of June 30, 2026, the Company had received approximately $38 million of IEEPA tariff reimbursements, of which approximately $18 million was recorded as a reduction of cost of goods sold. Since the inception of the IEEPA tariffs, the Company has directly paid approximately $42 million of such tariffs, excluding amounts incurred indirectly through suppliers, which was partially offset by approximately $5 million of recoveries from customers. The Company continues to evaluate and pursue tariff refund opportunities where appropriate; however, the availability, amount, and timing of any additional refunds remain uncertain and are subject to ongoing legal, regulatory, and administrative developments.
Current report
Operating Expenses. Total operating expenses were $204.6 million in the six months ended June 30, 2026, an increase of 10% or $19.1 million, compared to $185.5 million for the same period in 2025. The increase was primarily attributable to the acquisition of VOXX, which contributed approximately $18.9 million of additional operating expenses as a result of being included in the Company's consolidated results for the full six-month period in 2026, compared to only three months in the comparable 2025 period. The increase also included $2.8 million of impairment charges and severance expenses of $1.0 million.
Current report
E, R & D for the six months ended June 30, 2026 increased by $3.5 million, compared to the same period in 2025, primarily due to increased staffing costs, engineering-related professional fees, and the acquisition of VOXX, which was completed on April 1, 2025. As a result, VOXX-related research and development expenses were included in the Company's consolidated results for the full six-month period in 2026, compared to only three months in the comparable 2025 period.
Current report
S, G & A for the six months ended June 30, 2026 increased $21.4 million to $99.8 million, when compared to $78.4 million for the same period in 2025. S, G & A was approximately 8% of net sales in the six months ended June 30, 2026, and approximately 6% of net sales in the same period in 2025. S, G & A increased on a period over period basis primarily due to the VOXX acquisition, as VOXX was included in the Company's operations for the entire six month year to date period, compared to only three months of the same prior year six month period.
Current report
Total Other (Loss) Income, Net. Total other loss, net, for the six months ended June 30, 2026, was $10.1 million, compared to a net loss of $2.4 million for the same period last year. During the six months ended June 30, 2026, the total other loss, net, included impairments of $12.2 million related to two of the Company's technology investments, as well as credit loss reserves of $5.0 million related to loans receivable. In comparison, the six months ended June 30, 2025, included a loss of $6.2 million resulting from a loss due to impairment of one of the Company's technology investments.
Current report
Net Income Attributable to Gentex Corporation. Net income attributable to Gentex Corporation for the six months ended June 30, 2026 increased by $22.2 million or 12% to $213.1 million, compared to $190.5 million in the same period last year. The increase in net income for the six months ended June 30, 2026, was primarily the result of higher income from operations partially offset by higher operating expenses compared to the same prior period.
Current report
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 current presentation. Management believes the revised presentation enhances period over period comparability and provides investors with a more consistent review of Company performance. These revisions affect only the presentation of non-GAAP measures and do not affect the Company's previously reported GAAP results.
Current report
During the second quarter of 2026, the Company continued to execute on strategic growth initiatives across its Automotive Products and Premium Audio segments. More than 75% of the Company's automotive product launches during the quarter included advanced-feature content, led by HomeLink®, Full Display Mirror® ("FDM"), Driver Monitoring Systems ("DMS"), In-Cabin Monitoring Systems ("ICMS"), and advanced exterior mirror programs.
Current report
FDM adoption continued to expand globally through new vehicle platform launches. First-half 2026 FDM shipments remained consistent with the Company's previously communicated expectation of year-over-year growth of approximately 200,000 to 400,000 units. The Company also expanded shipments of its DMS and ICMS technologies through new vehicle launches with BMW and Kia and continued to advance discussions with additional customers.
Current report
Within the Premium Audio segment, the Company continued integration activities following the acquisition of VOXX and made progress toward previously established profitability objectives through operational improvement initiatives, cost management efforts, and product innovation. During the quarter, Klipsch and Onkyo introduced several new products, while the VOXX and PAC businesses continued to develop new product categories and customer relationships intended to support future growth.
Current report
The Company also continued advancing plans for a manufacturing facility in Morocco to support increasing customer demand for regional production capabilities in Europe. During the quarter, the Company signed a letter of intent, selected a site location, and continued development activities toward a targeted start of production in 2028.
Current report
The Company remains focused on innovation, operational efficiency, quality, gross margin expansion, operating expense management, and disciplined capital allocation. Investments in emerging technologies and product categories, including dimmable visors and sunroofs, fourth-generation FDM, DMS and ICMS technologies, advanced manufacturing capabilities, and other market expansion initiatives, are expected to support future growth opportunities.
Current report
In addition, the Company continued to advance its electronics contract manufacturing initiative. Increased interest in localized manufacturing has generated opportunities to leverage the Company's electronics manufacturing expertise. The Company currently manufactures between 40 million and 50 million electronic modules annually for customers across the automotive, fire protection, aerospace, and medical device industries. The Company remains engaged with prospective customers regarding advanced electronics manufacturing opportunities and expects to continue development activities related to potential future program awards.
Current report
In 2024, the United Nations Economic Commission for Europe ("UN ECE") established the Task Force on Glare Prevention ("TF-GP") to evaluate the impact of glare from vehicle headlamps on road safety and to consider potential regulatory and technical recommendations related to glare mitigation. The task force is assessing the prevalence and effects of headlamp glare and developing recommendations intended to improve driver visibility and safety. The Company believes its auto-dimming rearview mirror technologies may be well-positioned to address certain glare-reduction objectives that could result from future industry standards or regulatory developments
Current report
Gentex's Full Display Mirror® (FDM) continues to be a key contributor to revenue and remains one of the Company's most successful advanced vision products. FDM combines a traditional auto-dimming rearview mirror with an integrated digital display and camera system, allowing drivers to switch between a conventional reflective mirror and a live video view from a rear-facing camera. This dual-mode functionality provides a wider, less obstructed field of vision while maintaining the familiarity and safety benefits of a traditional mirror. The ability to seamlessly revert to mirror mode remains an important feature for both customer preference and vehicle safety requirements.
Current report
Since its initial production launch in 2015, FDM has evolved to include additional imaging and display capabilities. In 2020, the Company introduced Digital Video Recording (DVR) functionality, enabling simultaneous recording from forward- and rear-facing cameras. In 2025, Gentex launched its next-generation FDM platform featuring Dynamic View Assist, which uses higher-resolution imaging and advanced software to automatically optimize the displayed view based on driving conditions. Features include dynamic view expansion, reverse-view enhancement, and picture-in-picture functionality designed to improve driver awareness and usability.
Current report
Building on its expertise in optics, cameras, displays, and image processing, Gentex has also developed camera-based visibility solutions that extend beyond rear vision applications. These systems can integrate video feeds from multiple vehicle-mounted cameras, including cameras housed within exterior mirrors, to provide enhanced rearward and sideward visibility. As vehicle architectures continue to evolve and regional regulations increasingly permit camera- based visibility systems, Gentex remains well-positioned to support a range of customer requirements with both traditional mirror-based and camera-enabled solutions.
Current report
The Company's Driver Monitoring Systems (DMS) and In-Cabin Monitoring Systems (ICMS) continue to progress in line with our long-term growth expectations. These technologies utilize advanced camera and sensing systems to monitor driver attention, occupant presence, and in-cabin activity in support of vehicle safety objectives and emerging regulatory requirements. During the second quarter of 2026, we began shipping DMS and ICMS products on new vehicle programs with BMW and Kia, while continued shipments to Rivian, Volvo, and Polestar contributed to year-over-year revenue growth. We continue to expand our customer base and believe these technologies represent meaningful opportunities for long-term growth as in-cabin sensing adoption increases across the automotive industry.
Current report
While camera-based visibility technologies are expected to gain broader adoption over time, we believe mirrors remain a highly effective, reliable, and cost-efficient solution for many applications. Nevertheless, we continue to invest in camera, imaging, sensing, and display technologies to support evolving customer requirements and emerging vehicle architectures. As adoption of camera-based systems, advanced driver assistance technologies, and automated driving features continues to increase, competition within these markets is expected to grow.
Current report
HomeLink® remains the automotive industry's leading vehicle-to-home automation solution and is one of the Company's longest-standing and most widely adopted products. Integrated into the vehicle, HomeLink® enables drivers to conveniently operate garage doors, security gates, home lighting, and other radio-frequency-controlled devices through in-vehicle controls. Its broad compatibility, ease of use, and proven reliability have contributed to widespread adoption across a diverse range of vehicle platforms and manufacturers.
Current report
Building on the success of HomeLink®, the Company introduced HomeLink Connect®, a smartphone-enabled platform that expands vehicle-to-home connectivity through cloud-based integration. HomeLink Connect® allows users to trigger customized home automation functions directly from the vehicle, including control of smart locks, security systems, thermostats, lighting, and other connected devices. By leveraging smartphone and cloud connectivity, the platform provides automakers with a flexible and secure approach to home automation without requiring integration of third-party software into vehicle systems. In 2021, Volkswagen became the first automaker to launch a Bluetooth®-enabled mirror integrated with HomeLink Connect® functionality.
Current report
The Company has also expanded its connectivity portfolio through its Integrated Toll Module® (ITM®), a vehicle-integrated tolling solution developed in partnership with TransCore. ITM® enables motorists to access electronic tolling networks without the need for a traditional windshield-mounted transponder, allowing toll collection functionality to be seamlessly incorporated into the vehicle. The Company's mirror-mounted solution simplifies travel across tolling networks while supporting interoperability across transportation systems in North America. Today, ITM® is featured on multiple Audi platforms as well as the Mercedes-Benz EQS. In recognition of its innovation and commercial success, ITM® received an Automotive News PACE Award in 2020.
Current report
The Company continues to invest in advanced biometric technologies designed to enhance vehicle security, personalization, and connected services. Its biometric authentication platform utilizes iris recognition technology to securely identify vehicle occupants and enable personalized vehicle settings, including mirror positions, seating configurations, infotainment preferences, and climate controls. The technology also has potential applications in vehicle access, start authorization, tolling transactions, and future mobility services. Over time, the Company intends to leverage biometric authentication across multiple product platforms, including HomeLink® and HomeLink Connect®, to further enhance convenience, security, and personalization for vehicle occupants.
Current report
As vehicles become increasingly connected and software-defined, the Company believes its expertise in electronics, sensing, connectivity, and integrated vehicle systems positions it to address evolving customer requirements while expanding opportunities beyond its traditional mirror product portfolio.
Current report
Dimmable Products
Current report
The Company's dimmable glass technologies support both aerospace and automotive applications. The Company's variable dimmable window technology is currently featured on the Boeing 787 Dreamliner family and has also been selected for the Boeing 777X and Airbus A350 programs. Production shipments for the Boeing 777X began in 2019, while Airbus commenced production of aircraft equipped with the Company's optional dimmable window technology on the A350 platform in 2021. The Company continues to engage with aircraft manufacturers regarding additional opportunities for its dimmable window technology and related aerospace applications. These programs demonstrate the Company's ability to leverage its expertise in electro-optical technologies across multiple transportation markets.
Current report
The Company continues to expand its portfolio of dimmable glass technologies beyond aerospace and traditional automotive mirror applications. During 2026, the Company was awarded its first production program for its Dimmable
Current report
Visor technology, with start of production currently expected in 2027. The product leverages the Company's electrochromic technology to reduce glare while maintaining driver visibility and represents a new application of the Company's core dimmable glass expertise. The Company also continues to advance development of its Large Area Device ("LAD") technologies for automotive glazing applications, including panoramic roof and other large-area dimmable glass solutions. Current development efforts remain focused on product performance, durability, and manufacturing scalability as the Company works toward future commercialization opportunities
Current report
The Company continues to expand its presence in the biometric authentication market through strategic acquisitions and investments that leverage its expertise in optics, imaging, sensing, and software technologies. Biometric solutions are increasingly being adopted across automotive, security, healthcare, aerospace, and enterprise applications to enhance security, improve user convenience, and enable personalized experiences.
Current report
In 2024, the Company acquired GalvanEyes, LLC, the managing partner and 50% owner of the BioCenturion joint venture. BioCenturion develops biometric authentication solutions designed to secure physical and digital environments through advanced identity verification technologies. The business possesses a substantial intellectual property portfolio, including more than 100 granted and pending patents, supporting secure, high-speed, touchless authentication across multiple industries and use cases.
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Previous report
FIRST QUARTER 2026 VERSUS FIRST QUARTER 2025
Previous report
Net Sales. Consolidated net sales for the first quarter of 2026 increased by $98.7 million or 17%, when compared with the first quarter of 2025, which did not include VOXX. VOXX, one hundred percent of which was acquired on April 1, 2025, contributed $88.6 million of revenue for the first quarter of 2026. Core Gentex revenue (excluding VOXX) was $586.8 million in the first quarter of 2026, representing a 2% quarter over quarter increase, despite global light vehicle production that was down approximately 3% compared to the first quarter of 2025.
Previous report
Cost of Goods Sold. For the first quarter of 2026, the Company's consolidated gross margin was 33.8% compared to 33.2% in the same quarter last year, which did not include VOXX. The quarter over quarter increase in the gross margin resulted primarily from operational efficiencies and improved product mix, which was partially offset by tariff related costs and commodity price increases. The core Gentex gross margin (excluding VOXX) was 34.0% in the first quarter of 2026, representing an 80 basis-point increase compared to the first quarter of 2025, which did not include VOXX.
Previous report
The Company has not recognized any potential refund of IEEPA tariffs in its first quarter financial results. The Company remains in the process of assessing the impact of the invalidation of IEEPA tariffs by the U.S. Supreme Court. As of March 31, 2026, the Company estimates that approximately $15 million of IEEPA tariff costs have been capitalized in inventory, which have not yet been expensed as of that date. Since the inception of the IEEPA tariffs, the Company (including VOXX) has directly paid a cumulative total of approximately $42 million (excluding amounts paid indirectly through suppliers), partially offset by approximately $5 million of costs recovered from customers. While the Company is pursuing refunds as it determines appropriate, the availability, amount, and timing of any potential refunds remains highly uncertain and subject to further legal, regulatory, and administrative developments. As such, the Company is unable to conclude any recovery is probable and reasonably estimable as of March 26, 2026.
Previous report
During the fourth quarter of 2025, the Company completed construction of the previously announced Gentex Discovery Preschool, an on-site daycare and preschool designed to provide Company employees with convenient, cost-effective access to quality childcare. The total cost of the building project was approximately $20 million and was funded with cash on hand.
Previous report
For the first quarter of 2026, the Company reported net sales of $675.4 million, compared to net sales of $576.8 million in the first quarter of 2025 (which did not include VOXX), a 17% increase quarter over quarter. Core Gentex revenue (excluding VOXX) for the first quarter of 2026 increased 2% versus the first quarter of 2025, despite a global decline in light vehicle production of approximately 3% in the first quarter of 2026, compared to the first quarter of 2025.
Previous report
During the three months ended March 31, 2026, over 65% of the Company's mirror launches were interior and exterior auto-dimming mirrors with advanced electronic features, with HomeLink®and Full Display Mirror®, ("FDM") as the primary drivers of growth.
Previous report
In 2024, the United Nations Economic Commission (UN ECE) established a working group (Task Force Glare Protection) on the subject of glare in road traffic. The Task Force Glare Protection will investigate the burden and danger of road glare from vehicle headlamps and initiate necessary measures. The Company believes its auto-dimming mirror products can be a solution for necessary measures initiated by this UN ECE task force.
Previous report
The Company's FDM began production in 2015. Current automotive design trends are yielding vehicles with small rear windows that are often further obstructed by headrests, passengers, and roof support pillars, which can significantly hinder the mirror’s rearward view. The Company's FDM is an intelligent rear vision system that uses a custom, internally or externally mounted video camera and mirror-integrated video display to optimize a vehicle driver’s rearward view. This rear vision system consists of a hybrid FDM that offers bi-modal functionality. In mirror mode, the product functions as an auto-dimming rearview mirror which means that during nighttime driving, digital light sensors talk to one another via a microprocessor to automatically darken the mirror when glare is detected. With the flip of a switch, the mirror enters display mode, and a clear, bright display appears through the mirror’s reflective surface, providing a wide, unobstructed rearward view. The bi-modality of the FDM is essential, because in the event of any failure of the camera or display, the product is able to function as a mirror, which meets long-standing safety requirements in the automotive industry. In addition, the driver has the ability to switch between modes to accommodate usage preferences for various weather conditions, lighting conditions, and driving tasks. FDM remained a leading performer for the Company for the first quarter of 2026.
Previous report
To enhance capability and usability of the FDM, the Company previously introduced its three-camera rear vision system that streams rear video in multiple composite views to its FDM. The Company believes it is the industry’s first practical and comprehensive rear vision solution designed to meet automaker, driver, safety, and regulatory requirements. The Company's rear vision system, known generally as a camera monitoring system ("CMS"), uses three cameras to provide a comprehensive view of the sides and rear of the vehicle. The side-view cameras are discretely housed in downsized, automatic-dimming exterior mirrors. Their video feeds are combined with that of a roof-mounted or rear window-based camera and stitched together into multiple composite views, which are streamed to the driver using the FDM. During any failures due to weather conditions or otherwise that disrupt the digital view, drivers can still safely use the interior and exterior mirrors. The system also supports user preference by permitting drivers to use standard mirror views, camera views, or both. The system can also be tuned to meet the various regulatory field-of-view requirements around the world by using different types of flat and curved glass, combined with simple alterations to the video viewing modes. Downsized exterior mirrors provide automakers with significant weight savings and fuel efficiency improvements. To further enhance safety, the Company's CMS solution can also work in conjunction with a vehicle’s side blind zone warning system. When a trailing vehicle enters a side blind zone, a warning indicator illuminates in both the interior and exterior mirrors, while the corresponding side-view video feed appears in the display until the vehicle passes. CMS solutions also helped drive revenue growth in the first quarter of 2026, compared to the first quarter of 2025, with CMS product shipping to Rivian, Volvo, and Polestar. The Company expects to begin shipping CMS products to additional OEM customers in the second and third quarters of 2026.
Previous report
The Company began shipping FDM with Digital Video Recording ("DVR") capability in 2020. This mirror and system launched in the Japan market and combines the superior functionality of the FDM with the added capability to record video from the rearward facing and forward-facing cameras simultaneously. In 2025, the Company introduced its next-generation FDM, which incorporates the Company’s Dynamic View Assist, a series of dynamic viewing modes that can enhance driving safety and make using a digital mirror feel more natural. By utilizing a higher resolution imager, the FDM can automatically expand the mirror’s digital view, digitally tilt downward, while reversing, and can display picture in picture functions.
Previous report
In July 2016, a revision to UN-ECE Regulation 46 was published with an effective date of June 18, 2016, which allows for camera monitoring systems to replace mirrors in Japan and European countries. Since January 2017, camera monitoring systems are also permitted as an alternative to replace mirrors in the Korea market. China released an updated version of its GB15084, effective in 2023, which allows for camera monitoring systems, frameless mirrors and aspheric (free form) glass surfaces. Notwithstanding the foregoing, the Company continues to believe rearview mirrors provide a robust, simple and cost-effective means to view the surrounding areas of a vehicle and remain a primary safety function for rear vision today. Cameras, when used as the primary rear vision delivery mechanism, have some inherent limitations, such as: electrical failure; cameras being blocked or obstructed; depth perception challenges; and viewing angles of the camera. Nonetheless, the Company continues designing and manufacturing not only rearview mirrors, but CMOS imagers and video displays as well. The Company believes that combining video displays with mirrors may well provide a more robust product by addressing all driving conditions in a single solution that can be controlled by the driver. The Company has also previously announced that it continues development in the areas of imager performance, camera dynamic range, lens design, image processing from the camera to the display, and camera lens cleaning. The Company acknowledges that as such technology evolves over time, such as cameras replacing mirrors and/or autonomous driving, there is increased competition.
Previous report
The Company's HomeLink® products are the auto industry's most widely used and trusted car-to-home communication system. The system consists of two or three in-vehicle buttons that can be programmed to operate garage doors, security gates, home lighting, and other radio-frequency-controlled devices. In 2017, the Company demonstrated the next generation of HomeLink®, commonly referred to as HomeLink Connect®, a smartphone app that uses both RF and wireless cloud-based connectivity to deliver complete vehicle-to-home automation. With HomeLink Connect®, a HomeLink® button press communicates with the HomeLink Connect®app on the user’s smartphone. The app contains predefined, user-programmed actions, from single device operations to entire home automation scenes. The app, in turn, communicates to the home’s smart hub over the cloud, activating the appropriate devices, including security systems, door locks, thermostats, lighting, and other home automation devices, providing comprehensive vehicle-to-home automation. The ability to prepare the home for arrival or departure can occur with one button press. For automakers, this functionality allows them to offer customizable, yet proven solutions without the engineering efforts or security concerns associated with integrating third party software into the vehicle’s computer network. In 2021, the Company announced Volkswagen as the first automaker to offer Bluetooth® enabled mirror for home automation that works in conjunction with HomeLink Connect®.
Previous report
In 2016, the Company announced a partnership with TransCore to provide automobile manufacturers with a vehicle-integrated tolling solution that enables motorists to drive on nearly all U.S. toll roads without a traditional toll tag on the windshield. The interior mirror is the optimal location for a vehicle-integrated toll transponder, and it eliminates the need to affix multiple toll tags to the windshield and helps automakers seamlessly integrate toll collection into the car. The Company's Integrated Toll Module® or ITM®simplifies and expedites local, regional, and national travel and provides transportation agencies with an interoperability solution without costly infrastructure changes to the thousands of miles of toll lanes throughout North America. Currently, the Company is shipping ITM® on 11 Audi platforms, as well as on the Mercedes EQS model. In 2020, the Company was honored with an Automotive News PACE Award for its ITM® product, which recognizes automotive suppliers for superior innovation, technological advancement, and business performance.
Previous report
Further, the Company previously announced an embedded biometric solution for vehicles that leverages iris scanning technology to create a secure environment in the vehicle. There are many use cases for authentication, which range from vehicle security to start functionality to personalization of mirrors, music, seat location, and temperature, to the ability to control transactions not only for the ITM® system, but also the ride sharing car of the future. The Company believes iris recognition is among the most secure forms of biometric identification, with a false acceptance rate as low as one in 10 million, far superior to facial, voice, and other current biometric systems. The Company's future plans include integrating biometric authentication with many of its other electronic features, including HomeLink® and HomeLink Connect®. The biometric system will allow HomeLink® to provide added security and convenience for multiple drivers by activating the unique home automation presets of different authorized users.
Previous report
Dimmable Aircraft Windows
Previous report
The Company continues to manufacture and sell variable dimmable windows for the passenger compartment on the Boeing 787 Dreamliner series of aircraft. The Company continues to work with other aircraft manufacturers that have an interest in this technology regarding potential additional programs. The Company also previously announced that its latest generation of dimmable aircraft windows would be offered as optional content on the Boeing 777X aircraft. In 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program. As also previously announced, Airbus is now offering, as optional content, the Company's dimmable aircraft windows on its aircraft, with production having begun in 2021.
Previous report
In 2024, the Company acquired GalvanEyes, LLC, which is the managing partner and 50% owner of the BioCenturion joint venture with Eyelock, a majority-owned subsidiary of VOXX. BioCenturion specializes in creating and deploying authentication solutions to help clients secure their worlds, optimize their workloads, and organize their data through customized biometric solutions. BioCenturion's significant IP portfolio, including more than 100 patents granted, patents pending, and proprietary technology enables a high-speed, convenient, touchless, contactless, frictionless, and secure authentication of individuals across different business verticals. With the acquisition of VOXX on April 1, 2025, which included its majority-owned subsidiary EyeLock®, and the subsequent acquisition of the remaining interest in EyeLock® in August 2025, the Company now owns 100% of BioCenturion. These acquisitions have also enabled the Company to gain full access to the EyeLock® iris biometric technology, which will provide more product applications in the Company's automotive, aerospace, and medical markets. In July 2025, the Company acquired BioConnect, a multi-modal biometric authentication platform provider for physical and digital access control, serving a number of industries. The Company intends to utilize this acquisition to further expand its reach in the biometric space.
Previous report
With the acquisition of VOXX on April 1, 2025, the Company made strategic additions to its portfolio of products, as VOXX's product lines both complement the Company's existing businesses and will help the Company continue to expand in the consumer technology and connected home space. During the first quarter of 2026, the teams at Klipsch, Onkyo, and Integra launched premium audio products that were showcased at CES in January of 2026, including the The Fives®, The Sevens®, and The Nines® powered speaker products.
Previous report
•Gross Margin: 34% – 35%(no change)
Previous report
•Tax Rate: 16% – 18%(no change)
Previous report
•Capital Expenditures: $125 – $140 million (no change)
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Previous wording
Core Gentex Automotive net sales (excluding VOXX) for the first quarter of 2026 were $566.2 million, an increase compared with automotive net sales of $563.9 million in the first quarter of 2025, despite the quarter over quarter decline in global light vehicle production and 6% decrease in total mirror unit shipments in the first quarter of 2026, compared to the first quarter of 2025.
Current wording
Automotive net sales for the second quarter of 2026 were $560.2 million, a decrease compared with automotive net sales of $578.1 million in the second quarter of 2025. This reflects lower global light vehicle production and a 10% decrease in total mirror unit shipments in the second quarter of 2026, compared to the second quarter of 2025.
Previous wording
Core Gentex Other net sales (excluding VOXX) were $20.5 million in the first quarter of 2026, compared to $12.9 million in the first quarter of 2025, an increase of 59%. Other net sales for the first quarter of 2026 included security and access control sales of $3.0 million, an increase of $2.1 million over the first quarter of 2025, primarily generated from the Company's BioConnect subsidiary acquired on July 1, 2025. Dimmable aircraft window sales increased during the first quarter of 2026 to $8.3 million, compared to $4.9 million in the same quarter of last year. Fire protection sales were $8.8 million in the first quarter of 2026, compared to $6.7 million in the same quarter of last year.
Current wording
Other net sales were $39.4 million in the second quarter of 2026, compared to $35.2 million in the second quarter of 2025, an increase of 12%. Other net sales for the second quarter of 2026 included security and access control sales of $2.7 million, an increase of $2.5 million over the second quarter of 2025, primarily generated from the Company's BioConnect subsidiary acquired on July 1, 2025. Dimmable aircraft window sales increased during the second quarter of 2026 to $6.5 million, compared to $4.0 million in the same quarter of last year. Fire protection sales were $8.3 million in the second quarter of 2026, compared to $8.1 million in the same quarter of last year.
Previous wording
Operating Expenses. Consolidated operating expenses were $105.0 million in the first quarter of 2026, compared to $78.7 million in the first quarter of 2025, which did not include VOXX. The increase was primarily due to the VOXX acquisition, which accounted for $23.2 million of the increase. Consolidated operating expenses for the quarter were also impacted by intangible asset impairment charges of $2.8 million related to In-Process R&D previously acquired by the Company. On a non-GAAP basis, core Gentex adjusted operating expenses were $78.3 million in the first quarter of 2026, compared to $75.0 million in the first quarter of 2025, when excluding the impact of intangible asset impairment charges, acquisition related costs, and severance costs in each of the quarters, for comparability.
Current wording
Operating Expenses. Consolidated operating expenses were $99.7 million in the second quarter of 2026, compared to $106.8 million in the second quarter of 2025. The quarter over quarter decrease was primarily due to prior year severance costs. On a non-GAAP basis, adjusted operating expenses were $99.3 million in the second quarter of 2026, compared to $97.5 million in the second quarter of 2025, when excluding the impact of acquisition related costs, severance costs, and purchase price step-up charges in each of the quarters, for comparability.
Previous wording
Engineering, research and development expenses for the first quarter of 2026 increased by $5.7 million, when compared with the first quarter of 2025, primarily due to the VOXX acquisition, as well as staffing and engineering related professional fees.
Current wording
Engineering, research and development expenses ("E, R&D") for the second quarter of 2026 decreased by $2.2 million, when compared with the second quarter of 2025, primarily due to lower engineering related professional fees.
Previous wording
Selling, general and administrative ("S, G & A") expenses increased by $19.9 million for the first quarter of 2026, compared to the first quarter of 2025, primarily due to the VOXX acquisition. S, G & A expenses were approximately 7% of net sales in the first quarter of 2026, compared to 5% in the first quarter of 2025, which did not include VOXX.
Current wording
Selling, general and administrative expenses ("S, G & A") increased by $1.5 million for the second quarter of 2026, compared to the second quarter of 2025. S, G & A was approximately 8% of net sales in the second quarter of 2026, compared to 7% in the second quarter of 2025.
Previous wording
Other (Loss) Income, Net. Total Other loss, net for the first quarter of 2026 was $5.6 million, when compared with total Other income, net, of $0.6 million for the first quarter of 2025. The quarter over quarter decline was driven by lower investment income, as well as an impairment charge of $2.7 million related to one of the Company's technology investments and an increase in credit loss reserves related to loans receivable of $2.2 million during the first quarter of 2026.
Current wording
Other (Loss) Income, Net. Total Other loss, net for the second quarter of 2026 was $4.5 million, when compared with total Other loss, net, of $3.0 million for the second quarter of 2025. The quarter over quarter increase in Other loss was driven by an impairment charge of $9.4 million related to one of the Company's technology investments and an increase in credit loss reserves related to loans receivable of $2.9 million each, during the second quarter of 2026 partially offset by higher investment income and gains on asset sales.
Previous wording
Provision for Income Taxes. The effective tax rate was 16.6% for, and an income tax expense of $19.6 million was recorded in, the first quarter of 2026, compared to an effective tax rate of 16.5% for, and an income tax expense of $18.8 million recorded in, the same quarter of 2025. Generally, effective tax rates for the Company differ from statutory federal income tax rates due to provisions for state and local income taxes, the FDDEI deduction, and research and development tax credits.
Current wording
Provision for Income Taxes. The effective tax rate was 16.5% for, and an income tax expense of $22.6 million was recorded in, the second quarter of 2026, compared to an effective tax rate of 17.2% for, and an income tax expense of $19.8 million recorded in, the same quarter of 2025. Generally, effective tax rates for the Company differ from statutory federal income tax rates due to provisions for state and local income taxes, the FDDEI deduction, and research and development tax credits.
Previous wording
Net Income Attributable to Gentex Corporation. Consolidated net income attributable to Gentex for the first quarter of 2026 was $98.5 million, an increase of 4% compared to net income attributable to Gentex of $94.9 million in the first quarter of 2025, which did not include VOXX. The quarter over quarter increase in net income for the first quarter of 2026 was due to higher sales and income from operations compared to the same quarter last year. Non-GAAP consolidated net income attributable to Gentex was $103.7 million in the first quarter of 2026, compared to $98.0 million in the first quarter of 2025 (which did not include VOXX), when adjusting for the impact of impairment charges, acquisition related costs, and severance costs in each of the quarters, for comparability.
Current wording
Net Income Attributable to Gentex Corporation. Net income attributable to Gentex for the second quarter of 2026 was $114.7 million, an increase of 19% compared to net income attributable to Gentex of $96.0 million in the second quarter of 2025. Non-GAAP consolidated net income attributable to Gentex was $122.9 million in the second quarter of 2026, compared to $110.9 million in the second quarter of 2025, when adjusting for the impact of impairment charges, acquisition related costs, severance costs, and inventory purchase price step-up charges in each of the quarters, for comparability.
Previous wording
Earnings Per Share Attributable to Gentex Corporation. The Company had consolidated earnings per diluted share attributable to Gentex for the first quarter of 2026 of $0.46, which compared to earnings per diluted share of $0.42 for the first quarter of 2025, which did not include VOXX. Earnings per diluted share were also positively impacted by the increase in sales and improved profitability of the Company, partially offset by other losses incurred in the first quarter of 2026. On a non-GAAP basis, consolidated adjusted earnings per diluted share attributable to Gentex were $0.48 for the first quarter of 2026, compared to $0.43 for the first quarter of 2025 (which did not include VOXX), excluding the impact of impairment charges, acquisition related costs, and severance costs in each of the quarters, for comparability.
Current wording
Earnings Per Share Attributable to Gentex Corporation. The Company had earnings per diluted share attributable to Gentex for the second quarter of 2026 of $0.54, which compared to earnings per diluted share attributable to Gentex of $0.43 for the second quarter of 2025. Quarter over quarter earnings per diluted share attributable to Gentex were also positively impacted by the increase in sales and improved profitability of the Company, partially offset by other losses incurred in the second quarter of 2026. On a non-GAAP basis, adjusted earnings per diluted share were $0.58 for the second quarter of 2026, compared to $0.50 for the second quarter of 2025, excluding the impact of impairment charges, acquisition related costs, severance costs, and inventory purchase price step-up charges in each of the quarters, for comparability.
Previous wording
Financial information for the three months ended March 31, 2026 is provided in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, the Company believes that it is useful for the three months ended March 31, 2026 to provide certain non-GAAP measures, including Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Other (Loss) Income, Adjusted Net Income Attributable to Gentex Corporation, and Adjusted Earnings per Share, with the adjustments set forth in the "Reconciliation of Non-GAAP Measures" table below. This non-GAAP financial information allows investors to evaluate current performance in the Company's core business in relation to historical performance by excluding the impact of certain impairment charges, acquisition related costs, and severance costs set forth in the table below.
Current wording
Adjusted Earnings per Share, with the adjustments set forth in the "Reconciliation of Non-GAAP Measures" table below. This non-GAAP financial information allows investors to evaluate current performance in the Company's business in relation to historical performance by excluding the impact of certain inventory purchase price step-up adjustment, impairment charges, acquisition related costs, and severance costs set forth in the table below.
Previous wording
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. A reconciliation of Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Other (Loss) Income, Adjusted Net Income Attributable to Gentex Corporation, and Adjusted Earnings per Share to the most directly comparable GAAP measures is provided in the "Reconciliation of non-GAAP Measures" tables below. Like all non-GAAP financial measures, these non-GAAP measures are intended to supplement, not to replace, GAAP measures.
Current wording
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. A reconciliation of Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Other (Loss) Income, Adjusted Net Income Attributable to Gentex Corporation, and Adjusted Earnings per Share to the most directly comparable GAAP measures is provided in the "Reconciliation of non-GAAP Measures" tables below. Like all non-GAAP financial measures, these non-GAAP measures are intended to supplement, not to replace, GAAP measures. All non-GAAP financial measures are subject to inherent limitations because not all of the expenses required by GAAP are included.
Previous wording
Adjusted Net Income and Adjusted Earnings per Share: Adjusted Net Income Attributable to Gentex Corporation and Adjusted Earnings per Share are also presented as supplemental measures of the Company's performance for the same reasons set forth above. Adjusted Net Income is defined as Net Income adjusted for impairment charges, acquisition related costs and severance costs during the first quarter of 2026 and 2025. Adjusted Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding.
Current wording
Adjusted Net Income and Adjusted Earnings per Share: Adjusted Net Income Attributable to Gentex Corporation and Adjusted Earnings per Share are also presented as supplemental measures of the Company's performance for the same reasons set forth above. Adjusted Net Income is defined as Net Income adjusted for inventory purchase price step-up adjustment, impairment charges, acquisition related costs and severance costs during the second quarter of
Previous wording
The Company's cash and cash equivalents as of March 31, 2026 were $164.8 million, an increase of $19.1 million, compared to $145.6 million as of December 31, 2025. The increase was primarily due to cash flows from operations, including increases in accounts payable and accrued liabilities, offset by cash outflows related to share repurchases, dividend payments, capital expenditures, and investment purchases during the three months ended March 31, 2026.
Current wording
The Company's cash and cash equivalents as of June 30, 2026 were $233.4 million, an increase of $87.8 million, compared to $145.6 million as of December 31, 2025. The increase was primarily due to cash flows from operations, including increases in accounts payable and accrued liabilities, partially offset by cash outflows related to share repurchases, dividend payments, capital expenditures, and investment purchases during the six months ended June 30, 2026.
Previous wording
Short-term investments as of March 31, 2026 were $10.3 million, an increase from $5.4 million as of December 31, 2025, and long-term investments were $270.1 million as of March 31, 2026, down from $273.0 million as of December 31, 2025.
Current wording
Short-term investments as of June 30, 2026 were $9.4 million, an increase from $5.4 million as of December 31, 2025, and long-term investments were $238.5 million as of June 30, 2026, down from $273.0 million as of December 31, 2025.
Previous wording
Accounts receivable as of March 31, 2026 increased approximately $51.0 million compared to December 31, 2025, primarily due to the timing of customer payments during the three months ended March 31, 2026.
Current wording
Accounts receivable as of June 30, 2026 increased approximately $17.8 million compared to December 31, 2025, primarily due to the timing of customer payments during the six months ended June 30, 2026.
Previous wording
Inventories as of March 31, 2026 were $523.5 million, compared to $516.3 million as of December 31, 2025, primarily due to an increase in work-in-process inventory at March 31, 2026.
Current wording
Inventories as of June 30, 2026 were $519.0 million, compared to $516.3 million as of December 31, 2025, primarily due to an increase in work-in-process inventory at June 30, 2026.
Previous wording
Accounts payable as of March 31, 2026 increased approximately $27.7 million to $276.6 million, compared to December 31, 2025, primarily driven by timing of payments within the period.
Current wording
Accounts payable as of June 30, 2026 decreased approximately $0.7 million to $248.3 million, compared to December 31, 2025, primarily driven by timing of payments within the period.
Previous wording
Accrued liabilities as of March 31, 2026 increased approximately $29.3 million compared to December 31, 2025, primarily due to an increase in income taxes payable.
Current wording
Accrued liabilities as of June 30, 2026 increased approximately $18.4 million compared to December 31, 2025, primarily due to an increase in income taxes payable.
Previous wording
Cash flow from operating activities for the three months ended March 31, 2026 decreased $11.4 million to $137.1 million, compared with $148.5 million during the same period last year, primarily due to changes in working capital.
Current wording
Cash flow from operating activities for the six months ended June 30, 2026 increased $7.0 million to $321.7 million, compared with $314.6 million during the same period last year, primarily due to changes in working capital. Operating cash flow for the first six months of 2026 was the highest first-half operating cash flow in the Company's history. The Company continues to benefit from strong profitability, disciplined working capital management, and cash generation, which supported ongoing investments in growth initiatives, share repurchases, and dividend payments during the period.
Previous wording
Capital expenditures for the three months ended March 31, 2026 were approximately $17.0 million, compared with approximately $36.7 million for the same period last year. The decrease was primarily due to the timing of completion and commencement of projects, including the completion of the Gentex Discovery Preschool in 2025, as further described below.
Current wording
Capital expenditures for the six months ended June 30, 2026 were approximately $36.2 million, compared with approximately $67.8 million for the same period last year. The decrease was in part due to the timing of completion and commencement of projects.
Previous wording
The Company believes its existing and planned facilities are currently suitable, adequate, and have the capacity required for current and near-term planned business. Nevertheless, the Company continues to evaluate longer term facility needs.
Current wording
The Company believes its existing and planned facilities are suitable, adequate, and have sufficient capacity to support current operations and anticipated near-term business needs. The Company continues to evaluate its longer-term facility requirements as part of its ongoing strategic planning process.
Previous wording
The Company estimates that it currently has building capacity to manufacture approximately 42 - 45 million interior automatic-dimming mirror units annually, and approximately 19 - 22 million exterior mirror units annually, based on current product mix. The Company also evaluates equipment capacity on an ongoing basis and adds equipment as needed.
Current wording
Based on current product mix, the Company estimates it has annual manufacturing capacity of approximately 42 million to 45 million interior automatic-dimming mirror units and 19 million to 22 million exterior mirror units. The Company continually evaluates equipment capacity and invests in additional equipment as needed to support customer demand and future growth.
Previous wording
Management considers the current working capital and long-term investments, in addition to internally generated cash flow, its Credit Agreement, and credit worthiness, to be sufficient to cover anticipated cash needs for the foreseeable future considering its contractual obligations and commitments.
Current wording
Management believes that current working capital, long-term investments, internally generated cash flow, available borrowing capacity under its Credit Agreement, and overall creditworthiness will be sufficient to fund anticipated operating, investing, and financing needs for the foreseeable future, including existing contractual obligations and commitments.
Previous wording
The Company has a previously announced share repurchase plan under which the Board of Directors has authorized the repurchase of shares of the Company's common stock, which remains a part of the broader publicly disclosed capital allocation strategy. Future share repurchases may vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including, but not limited to, the market price of the stock, anti-dilutive effect of repurchases, and available cash). During the three months ended March 31, 2026, the Company repurchased 3,252,696 shares. The Company had 32,747,032 shares remaining available for repurchase under the plan as of March 31, 2026, as is further detailed in Part II, Item 2 of this Form 10-Q.
Current wording
The Company has a previously announced share repurchase plan under which the Board of Directors has authorized the repurchase of shares of the Company's common stock, which remains a part of the broader publicly disclosed capital allocation strategy. Future share repurchases may vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including, but not limited to, the market price of the stock, anti-dilutive effect of repurchases, and available cash). During the three and six months ended June 30, 2026, the Company repurchased 2,696,740 and 5,949,436 shares respectively. The Company has 29,912,872 shares remaining under the plan as of June 30, 2026, as is further detailed in Part II, Item 2 of this Form 10-Q.
Previous wording
In 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic. This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care. The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize illumination for surgical and patient-care environments. The
Current wording
In 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic. This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care. The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize illumination for surgical and patient-care environments. The Company continues to further develop and work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.
Previous wording
During 2025, the Company began shipments of its PLACE product line. PLACE is a suite of advanced, multi-functional smoke and carbon monoxide alarms designed to elevate home safety, comfort, and security through room-specific intelligence. The system is managed via an intuitive mobile app and features an industry-first low-frequency sounder, engineered to improve alarm effectiveness for deep sleepers, children, and individuals with hearing impairments. It also aligns with emerging safety standards, including updated residential codes adopted in states like California.
Current wording
During 2025, the Company began shipments of its PLACE® product line. PLACE® is a suite of advanced smoke and carbon monoxide alarms designed to enhance residential safety through room-specific functionality and mobile application connectivity. The product line incorporates an industry-first low-frequency sounder intended to improve alarm effectiveness for certain populations, including children, deep sleepers, and individuals with hearing impairments, and is designed to support evolving residential safety standards and code requirements. The Company believes the PLACE® product portfolio expands its presence in the residential safety market while leveraging its long-standing expertise in fire protection technologies.
Previous wording
Automotive revenues represented approximately 86% of the Company's total revenue during the three months ended March 31, 2026, consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and other automotive electronics.
Current wording
Automotive revenues represented approximately 86% of the Company's total revenue during the six months ended June 30, 2026, consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and other automotive electronics. The Company continues to experience changes in regional vehicle production and customer demand patterns, including ongoing competitive pressures and lower production levels within certain international markets, particularly China.
Previous wording
The Company believes that its patents and trade secrets provide it with a competitive advantage in dimmable devices, electronics, and other features that it offers for the automotive, premium audio, fire protection, aerospace, medical, consumer electronics, and access and control, and biometrics industries. Claims of patent infringement, however, can be costly and time-consuming to address. To that end, the Company obtains intellectual property rights in the ordinary course of business to strengthen its intellectual property portfolio and to minimize the risk of infringement.
Current wording
The Company believes that its patents and trade secrets provide it with a competitive advantage in dimmable devices, electronics, and other features that it offers for the automotive, premium audio, fire protection, aerospace, medical, consumer electronics, and access and control, and biometrics industries. Claims of patent infringement, however, can be costly and time-consuming to address. To that end, the Company obtains intellectual property rights in the ordinary course of business to strengthen its intellectual property portfolio and to minimize risks of infringement.
Previous wording
The Company’s light vehicle production forecast for the second quarter of 2026 and full years 2026 and 2027 are based on the mid-April 2026 S&P Global Mobility outlook for North America, Europe, Japan/Korea, and China (see table below). Based on the S&P Global mobility forecast, global light vehicle production for the second quarter of 2026 is expected to decline 2% versus the second quarter of 2025, while light vehicle production in the Company's primary markets is expected to be down over 3% quarter over quarter. Full-year 2026 production in the Company's primary markets is also expected to decline 2% year over year based on the S&P Global mobility forecast. Forecasted light vehicle production volumes from S&P Global Mobility for the second quarter of 2026 and calendar years 2026 and 2027 are shown below:
Current wording
The Company's light vehicle production forecasts for the third quarter of 2026 and full years 2026 and 2027 are based on the mid-July 2026 Mobility Global outlook for North America, Europe, Japan/Korea, and China (see table below). Based on this outlook, global light vehicle production is expected to decline approximately 2% in the third quarter of 2026 compared to the same prior-year period and approximately 3% for the full year 2026 compared to 2025.
Previous wording
Based on the updated light vehicle production forecast and actual results for the first three months of 2026, as well as the Company’s estimates for premium audio, aerospace, medical, fire protection, and consumer electronic products, the Company has made certain changes to its full-year 2026 guidance. This most recent guidance reflects the anticipated impact of all known tariffs effective as of April 24, 2026.
Current wording
Based on actual results for the first six months of 2026, the updated Mobility Global light vehicle production forecast, and the Company's current expectations for its Automotive, Premium Audio, and Other product categories, the Company is updating certain elements of its full-year 2026 guidance, as outlined below. The updated guidance reflects the anticipated impact of all known tariffs in effect as of July 24, 2026.
Previous wording
•Consolidated Revenue: $2.65 – $2.75 billion(previously: $2.60 – $2.70 billion)
Current wording
•Consolidated Revenue: $2.65 – $2.75 billion(no change)
Previous wording
•Operating Expenses(excluding severance and impairments): $410 – $420 million (no change)
Current wording
•Operating Expenses(excluding severance and impairments): $405 – $415 million (previously $410 - $420m)
Previous wording
Based on the mid‑April 2026 S&P Global Mobility light‑vehicle production outlook and the Company’s estimates for premium audio, aerospace, medical, fire protection, and consumer electronics products, the Company continues to expect calendar‑year 2027 revenue to range between $2.80 billion and $2.90 billion.
Current wording
Based on the mid‑July 2026 Mobility Global light‑vehicle production forecast and the Company’s expectations for Automotive, Premium Audio, and Other Product sales, the Company continues to expect calendar-year 2027 revenue to range between $2.80 billion and $2.90 billion.
Previous wording
Ongoing uncertainties remain, including: prolonged and intensifying trade wars, including the impacts of tariffs already in place, and potential additional future tariffs, trade restrictions, and retaliatory measures; the war in Iran; the Ukraine-Russia war; the Israel-Hamas war; light vehicle production levels; impacts of regulation changes; automotive plant shutdowns; vehicle sales rates, especially in Europe, Asia and North America; OEM strategies and cost pressures; supply chain constraints: customer inventory management and the impact of potential automotive customer (including their Tier 1 suppliers) and supplier bankruptcies; etc., all of which are disrupting and will further disrupt shipments to customers, disrupt global capital flows, and heighten market volatility.
Current wording
Ongoing uncertainties remain, including: prolonged and intensifying trade wars, including the impacts of tariffs already in place, and potential additional future tariffs, trade restrictions, and retaliatory measures; the conflict involving Iran; the Ukraine-Russia war; the Israel-Hamas war; light vehicle production levels; impacts of regulation changes; automotive plant shutdowns; vehicle sales rates, especially in Europe, Asia and North America; OEM strategies and cost pressures; supply chain constraints: customer inventory management and the impact of potential automotive customer (including their Tier 1 suppliers) and supplier bankruptcies; etc., all of which are disrupting and will further disrupt shipments to customers, disrupt global capital flows, and heighten market volatility.
Previous wording
In accordance with the previously announced share repurchase plan, the Company will consider the appropriateness of continuing to repurchase additional shares of common stock in the future in support of the capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including the market price of the stock, anti-dilutive effect of repurchases, and available cash). As of March 31, 2026, the Company had 32.7 million shares remaining available for repurchase under the previously announced share repurchase plan.
Current wording
In accordance with the previously announced share repurchase plan, the Company will consider the appropriateness of continuing to repurchase additional shares of common stock in the future in support of the capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including the market price of the stock, anti-dilutive effect of repurchases, and available cash). As of June 30, 2026, the Company had 29.9 million shares remaining available for repurchase under the previously announced share repurchase plan.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Provision for Income Taxes. The effective tax rate was 16.6% for the six months ended June 30, 2026, compared to 16.8% for the same period of 2025. Generally, effective tax rates for the Company differ from statutory federal income tax rates, due to provisions for state and local income taxes, the FDDEI deduction, and research and development tax credits.
Current report — wording carried from elsewhere
Earnings Per Share Attributable to Gentex Corporation. The Company had earnings per diluted share attributable to Gentex for the six months ended June 30, 2026 of $1.00, compared to earnings per diluted share of $0.85 for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Financial information for the three and six months ended June 30, 2026 is provided in accordance with GAAP. In addition, the Company believes that it is useful for the three and six months ended June 30, 2026 to provide certain non-GAAP measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Income from Operations, Adjusted Other (Loss) Income, Adjusted Net Income Attributable to Gentex Corporation, and
Current report — wording carried from elsewhere
2026 and 2025, as applicable. Adjusted Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
All non-GAAP financial measures are subject to inherent limitations because not all of the expenses required by GAAP are included.
Previous report — wording carried elsewhere
Company continues to further develop and work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.