> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# 'This Is Wild': Gentex CEO Says Some Suppliers Now Charge 8 To 10 Times More Per Part
- URL: https://www.bullished.co/this-is-wild-gentex-ceo-says-some-suppliers-now-charge-8-to-10-times-more-per-part/
- Published: 2026-10-23T14:47:14.000Z
- Updated: 2026-10-23T14:47:14.000Z
- Description: Gentex guides full-year gross margin to 34% to 34.5%, including $10 million to $15 million of added fourth-quarter costs.
- Author: Matteo Parrino
- Tags: Earnings, GNTX, Industry: Consumer Discretionary

[Gentex](https://www.bullished.co/tag/gntx/), which makes automatic-dimming rearview mirrors for carmakers, is paying its existing suppliers "anywhere from 8 to 10x price increases on a per unit basis" on some electronic components, CEO Steve Downing said on the company's third-quarter [earnings call](https://www.benzinga.com/news/26/10/62555463/gentex-narrows-fy2026-sales-guidance-2-650b-2-750b-2-650b-vs-2-671b-est?ref=bullished.co) on Friday. He added that "this is wild."

## From $4 to $40 a part

Downing gave a concrete case: a component that cost "$4 or $5 earlier this year is now $40." That cost structure, he said, "won't support the business model for these products," so the company has to redesign its way out.

COO and CTO Neil Boehm said memory chips have been a challenge for several quarters and will remain one in 2027\. Circuit boards have also jumped, he said, because materials several tiers down are being diverted to data-center boards. The fourth-generation full display mirror, whose rollout begins in 2028, does not use that memory, Boehm said.

Downing put Gentex's electronics buy at about $800 million over the trailing 12 months. Looking ahead, he said it is likely closer to $900 million, though he cautioned against quoting him on the exact number.

## Margin guidance and the recovery lag

Gentex now expects full-year gross margin of 34% to 34.5%. That range includes an estimated $10 million to $15 million of added fourth-quarter costs, with related recoveries not anticipated until the first half of 2027\. Full-year revenue is now expected at about [$2.65 billion](https://www.benzinga.com/news/26/10/62555463/gentex-narrows-fy2026-sales-guidance-2-650b-2-750b-2-650b-vs-2-671b-est?ref=bullished.co).

Third-quarter gross margin was 33.4%, against 34.4% a year earlier, on higher precious-metals costs, unfavorable mix and weaker operating leverage. Net sales were [$647.7 million](https://finance.yahoo.com/markets/stocks/articles/gentex-q3-earnings-snapshot-121133382.html?ref=bullished.co) versus $655.2 million, about $35 million below the company's own forecast, Downing said, after customer issues and delayed launches, including a Hyundai Kia strike.

An analyst at UBS asked whether Gentex is always playing catch-up. Downing said that in escalating markets "you're always behind that curve a little bit but you do catch up," calling electronics recovery "pretty cut and dry" while precious metals are harder to recoup.

For 2027, he said that in a "way too early college football top 25" guess, gross margin is probably in a 33% to 34% range for the year, and that the headwinds "would tend to drive that below that."

## Buybacks and the 2027 outlook

Gentex kept its 2027 revenue outlook of [$2.8 billion](https://finance.yahoo.com/markets/stocks/articles/gentex-q3-earnings-snapshot-121133382.html?ref=bullished.co) to $2.9 billion, which it described as 6% to 9% growth over the updated 2026 guidance. Downing said the company is not modeling significant price increases from cost recoveries, since there is virtually no margin on them.

The company bought back 5.7 million shares for $132.6 million in the quarter at an average $23.44\. Downing said repurchases will stay the focus, adding that "we struggle to understand the stock price." Gentex's market value was $4.6 billion on Friday morning.

Downing said that for most parts supply is secured through the end of the year and about halfway through next year, with a handful of commodities still worrying him before midyear.

### Sources

- [Gentex Narrows FY2026 Sales Guidance from $2....](https://www.benzinga.com/news/26/10/62555463/gentex-narrows-fy2026-sales-guidance-2-650b-2-750b-2-650b-vs-2-671b-est?ref=bullished.co) — benzinga.com
- [Gentex: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/gentex-q3-earnings-snapshot-121133382.html?ref=bullished.co) — Associated Press
- [Will Gentex (GNTX) Beat Estimates Again in Its Next Earnings Report?](https://finance.yahoo.com/markets/stocks/articles/gentex-gntx-beat-estimates-again-151004600.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Gentex (GNTX) Lags Q3 Earnings and Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/gentex-gntx-lags-q3-earnings-121501538.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Intellistake and NanoAi Meet Prospective Defense Customers at AUSA 2026 as U.S. Army Prioritizes Speed, Autonomy and Soldier Protection](https://finance.yahoo.com/news/intellistake-nanoai-meet-prospective-defense-070100997.html?ref=bullished.co) — Yahoo Finance

### More on Gentex

- [Gentex Holds 2027 Revenue Target At $2.8 Billion To $2.9 Billion After Third-Quarter Miss](https://www.bullished.co/gentex-holds-2027-revenue-target-at-2-8-billion-to-2-9-billion-after-third-quarter-miss-8936aff2/)
- [Gentex Cuts Margin Outlook, Caps Revenue Near $2.65 Billion After $35 Million Sales Shortfall](https://www.bullished.co/gentex-cuts-margin-outlook-caps-revenue-near-2-65-billion-after-35-million-sales-shortfall-2e4951cf/)
- [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/)