Shares of Gentex Corporation (NASDAQ:GNTX) rose nearly 4% on Friday after the company reported first-quarter results that came in ahead of analyst expectations.
Strong Top- and Bottom-Line Performance
Gentex posted adjusted earnings per share of $0.48, beating the $0.45 consensus estimate.
Revenue reached $675.4 million, exceeding forecasts of $648.71 million and marking a 17% increase from $576.8 million in the same period last year.
The stock gained about 3.78% following the announcement, reflecting a positive market response.
Growth Supported by Acquisition and Core Business
The increase in revenue was partly driven by the VOXX acquisition, which contributed $88.6 million.
Core Gentex revenue totalled $586.8 million, rising 2% year-on-year despite a more than 3% decline in global light vehicle production.
Margins Improve Despite Cost Pressures
Core gross margin expanded by 80 basis points to 34.0% compared with the first quarter of 2025, supported by operational efficiencies and a favourable product mix.
These gains were partially offset by higher tariff-related costs and increases in commodity prices.
“Given the difficult market conditions for many of our customers, the Company’s revenue growth continues to be driven by expanding electronic content and new technologies,” said Steve Downing.
Guidance Raised, Buybacks Continue
For fiscal 2026, Gentex increased its revenue outlook to a range of $2.65 billion to $2.75 billion, up from the previous $2.60 billion to $2.70 billion range. The midpoint of $2.70 billion is broadly in line with the $2.65 billion consensus estimate.
The company maintained its gross margin guidance of 34% to 35%.
Gentex also repurchased 3.3 million shares during the quarter for $71.6 million, at an average price of $22.01 per share.
Profit Edges Higher
Net income attributable to Gentex rose to $98.5 million, compared with $94.9 million in the first quarter of 2025.