Gentex Q1 Impacted By Tariff Uncertainty, Suspends Mirror Production For Chinese Market

Gentex Corporation (NASDAQ:GNTX) shares are trading lower on Friday after the first-quarter results were reported.

The company reported quarterly earnings per share of 42 cents, in line with the analyst consensus estimate. Revenues of $576.8 million (down 2% year over year) outpaced the street view of $571.97 million.

For the first quarter of 2025, the gross margin was 33.2%, compared to a gross margin of 34.3% in the year-ago period, due to lower revenue, an unfavorable product mix and new tariff costs.

 In addition to the revenue headwinds, the gross margin was also impacted by new tariff expenses of approximately $650,000 in the quarter.

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Automotive net sales in the first quarter of 2025 were $563.9 million compared to $577.6 million in the first quarter of 2024. Auto-dimming mirror unit shipments decreased by 7% year over year.

As a result of the current and expected tariff escalation in the Chinese market, the company said it has proactively halted production of interior and exterior mirrors destined for customers in the Chinese market. Subsequently, many of the company’s customers based in China have canceled or paused orders at this time.

Outlook: Gentex has revised its full-year 2025 sales outlook to a range of $2.15 billion to $2.32 billion, down from the previous $2.40 billion to $2.45 billion range and below the $2.52 billion estimate.

The company now expects gross margins between 33% and 34%, slightly lower than its earlier forecast of 33.5% to 34.5%.

“In the short term, however, as we secure reimbursement for tariffs on imports, the gross margin percentage will be impacted as we add costs and reimbursements that don’t include margin dollars. As we move through the year, we will be monitoring revenue closely and adjusting expenses to align to the market conditions,” said Gentex President and CEO Steve Downing. 

GNTX Price Action: Gentex shares are trading lower by 1.41% to $21.66 at publication Friday.

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Photo: Generic auto rearview mirror photo by Evgenius1985 via Shutterstock