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# Gentex Cuts Margin Outlook, Caps Revenue Near $2.65 Billion After $35 Million Sales Shortfall
- URL: https://www.bullished.co/gentex-cuts-margin-outlook-caps-revenue-near-2-65-billion-after-35-million-sales-shortfall-2e4951cf/
- Published: 2026-10-23T12:17:12.000Z
- Updated: 2026-10-23T12:17:12.000Z
- Description: The mirror maker's third-quarter sales came in about $35 million under its own forecast, and cost pressure is expected to last into the fourth quarter.
- Author: Matteo Parrino
- Tags: Earnings, GNTX, Industry: Consumer Discretionary

[Gentex](https://www.bullished.co/tag/gntx/), which makes auto-dimming rearview mirrors and related electronics for carmakers, reported third-quarter net sales of [$647.7 million](https://www.sec.gov/Archives/edgar/data/0000355811/000035581126000060/gntx-20261023.htm?ref=bullished.co), down from $655.2 million a year earlier and about $35 million below its own beginning-of-quarter forecast. The company lowered its 2026 gross margin outlook and trimmed the top of its revenue range, citing customer issues, delayed launches and rising precious metal costs.

## Guidance comes down

In its [updated 2026 guidance](https://www.sec.gov/Archives/edgar/data/0000355811/000035581126000060/exhibit99109302026.htm?ref=bullished.co), Gentex now sees revenue of approximately $2.65 billion, against a prior range of $2.65 billion to $2.75 billion. Gross margin is expected at 34.0% to 34.5%, versus 34.5% to 35.5% before.

The margin forecast includes an estimated $10 million to $15 million of added costs in the fourth quarter. Recoveries from customers are not expected until the first half of 2027, the company said. Operating expenses, capital spending, depreciation and the tax rate ranges were also narrowed or lowered.

The 2027 revenue outlook of $2.80 billion to $2.90 billion was maintained.

## Margin squeezed by metals

Gross margin fell to 33.4% from 34.4%. The company pointed to higher precious metal costs and lower sales, which hurt product mix and operating leverage.

Net income was $90.6 million, or $0.43 per diluted share, versus $0.46 a year earlier. On an adjusted basis, earnings were $0.47 in both periods.

CEO Steve Downing said the margin drivers were "relatively concentrated" and said precious metal costs have been "an ongoing headwind over the last few quarters." Automotive unit performance matched expectations, the company said.

## Diversification versus China and Volkswagen

Automotive sales fell to $552.5 million from $573.7 million. China sales dropped 44% to $22.1 million, and the loss of a Volkswagen program weighed on Europe. North American automotive revenue rose about 3% while regional vehicle production fell 5%.

Premium Audio sales climbed about 27% to $54.7 million. Non-automotive revenue rose about 17% and made up 15% of sales, against about 12% a year earlier. Automotive mirrors and electronics were 89% of sales in 2025, according to the company's annual report.

Gentex also said it won its first printed circuit board assembly contract, with production expected to begin in 2029.

## Buybacks above the recent price

Gentex repurchased 5.7 million shares for $132.6 million in the quarter, at an average $23.44\. Shares closed at $21.74 on Thursday, up 3.52%, before the report. About 24.3 million shares remained available under the buyback plan as of September 30.

Downing said cost headwinds are expected to continue into the fourth quarter and that the company is working with customers on reimbursement.

Management scheduled a conference call for 9:30 a.m. ET Friday to discuss the results.

### Sources

- [8-K Filing — GENTEX CORP (GNTX)](https://www.sec.gov/Archives/edgar/data/0000355811/000035581126000060/gntx-20261023.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exhibit99109302026.htm — GENTEX CORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000355811/000035581126000060/exhibit99109302026.htm?ref=bullished.co) — SEC EDGAR

### More on Gentex

- [Dimensional Fund Advisors Reports 5% Passive Stake In Gentex, 10,550,621 Shares](https://www.bullished.co/dimensional-fund-advisors-reports-5-passive-stake-in-gentex-10-550-621-shares-6310deef/)

[All Gentex (GNTX) coverage →](https://www.bullished.co/tag/gntx/)