Gentex cuts 2026 sales and margin targets after $35 million revenue shortfall

Gentex lowered parts of its 2026 outlook after third-quarter sales came in about $35 million below its own forecast because of customer issues and delayed launches, according to its 8-K earnings release.

Net sales were $647.7 million, compared with $655.2 million a year earlier. Net income fell to $90.6 million, or $0.43 a share, from $101.0 million, or $0.46. Adjusted EPS was $0.47, unchanged from a year ago. Gross margin narrowed to 33.4% from 34.4% on higher precious metal costs and weaker operating leverage.

Guidance trimmed

Gentex now expects 2026 revenue of approximately $2.65 billion, the bottom of its previous $2.65 billion to $2.75 billion range. It cut its gross margin target to 34.0% to 34.5% from 34.5% to 35.5%, including $10 million to $15 million of extra fourth-quarter costs it doesn't expect to recover until the first half of 2027. It also lowered its operating expense and capital spending ranges.

The company kept its 2027 revenue outlook of $2.80 billion to $2.90 billion, even though it expects light vehicle production in its main markets to fall about 1% next year.

Mixed picture by region

North American automotive revenue rose about 3% while regional vehicle production fell 5%. China remained a headwind, and the loss of a Volkswagen program more than offset 13% growth elsewhere in Europe.

Outside autos, Premium Audio revenue rose 27% to $54.7 million, and non-automotive sales made up about 15% of total revenue, up from about 12% a year ago. Gentex also won its first printed circuit board assembly contract, with production expected to start in 2029.

"Our third quarter results demonstrate the resilience of our business," President and CEO Steve Downing said in the release.

Gentex repurchased 5.7 million shares for $132.6 million during the quarter.

By the numbers

• Net sales: $647.7 million, versus $655.2 million
• EPS: $0.43 GAAP; $0.47 adjusted
• Gross margin: 33.4%
• 2026 revenue guidance: about $2.65 billion
• Q3 buybacks: $132.6 million

Sources

1. Gentex Corporation, Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0000355811-26-000060

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