Gentex (GNTX) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, April 24, 2026 astatine 11:48 AM CDT 30 min read

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Friday, April 24, 2026 astatine 9:30 a.m. ET

• Chief Executive Officer — Steven Downing

• Chief Financial Officer — Kevin Nash

• Chief Technology Officer — Neil Boehm

• Vice President, Investor Relations — Josh O'Berski

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Steven Downing: Thank you, Josh. For the archetypal 4th of 2026, the institution reported consolidated nett income of $675.4 cardinal a 17% summation compared to $576.8 cardinal successful the archetypal 4th of past year, which did not see VOXX. VOXX contributed $88.6 cardinal of gross during the 4th portion Core Gentex gross totaled $586.8 million, which was a 2% summation contempt planetary airy conveyance accumulation that declined much than 3% versus past year. Core Gentex gross maturation was driven by spot successful Advanced Features crossed respective regions, helping offset little airy conveyance accumulation and ongoing portion measurement headwinds.

In North America, gross accrued astir 6% contempt a 2% diminution successful airy conveyance production, driven chiefly by continued maturation and penetration of FDM shipments. In Europe, Japan and Korea, auto-dimming reflector portion shipments declined by astir 8% versus past year. However, gross for these combined regions declined lone 2%, reflecting favorable merchandise premix driven by the palmy motorboat of a Cabin Monitoring System successful Europe and continued FDM growth. In China, archetypal 4th gross totaled astir $28 million, down 29% versus past year, reflecting the ongoing interaction of tariffs connected our exports to China.

Overall, fixed the continued challenges facing galore of our customers, our gross maturation continues to beryllium driven by expanding physics contented and the adoption of caller technologies. As an example, VOXX was a agleam spot during the 4th with gross coming successful astir 9% supra our opening of 4th forecast, driven by stronger-than-anticipated income successful the Premium Audio segment. Consolidated gross borderline for the archetypal 4th of 2026 was 33.8% compared to 33.2% successful the archetypal 4th of past year. Core Gentex's gross borderline was 34% representing an 80 ground constituent summation versus past year. Gross borderline benefited from operational efficiencies and favorable merchandise mix, partially offset by the interaction of tariff-related costs and higher commodity prices.

Year-over-year, the institution delivered astir 200 ground points of operational gross borderline betterment driven by beardown execution and merchandise premix contempt the headwinds created by tariffs and commodity terms increases. First 4th consolidated operating expenses totaled $105 cardinal compared to $78.7 cardinal past year, which did not see VOXX. The summation was chiefly owed to the VOXX acquisition, which accounted for $23.2 cardinal of the alteration arsenic good arsenic $2.8 cardinal of impairment charges. On a non-GAAP basis, Core Gentex's adjusted operating expenses were $78.3 cardinal compared to $75 cardinal successful the archetypal 4th of past twelvemonth erstwhile we exclude impairment charges, acquisition-related costs and severance.