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Gentex Q2 Profit Beats Estimates as Tariff Reimbursements Lift Margins

IEEPA tariff reimbursements raised gross margin enough to let Gentex hold its 2026 revenue outlook.

Overview

  • Gentex reported second-quarter 2026 net sales of $651.3 million and GAAP earnings per share of $0.54 with adjusted EPS of $0.58.
  • Gross margin widened to 37.0%, a 280 basis-point gain year over year, driven in part by about $18 million of IEEPA tariff reimbursements that lowered cost of goods sold.
  • Automotive revenue fell and mirror shipments declined, with China showing roughly a 20% drop while North American demand remained comparatively strong.
  • Non-automotive lines grew and now make up about 14% of revenue, led by a 16% quarter‑over‑quarter jump in Premium Audio to $51.7 million.
  • Management kept 2026 revenue guidance at $2.65–$2.75 billion, gave a 2027 revenue range of $2.80–$2.90 billion, and continued share repurchases that totaled $66.0 million in Q2.