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Sep 30, 2024
Gentex Q3 2024 Earnings Report
Gentex's Q3 2024 performance was marked by record quarterly sales and increased net income, despite headwinds in light vehicle production.
Key Takeaways
Gentex reported record net sales of $608.5 million for Q3 2024, a 6% increase year-over-year, despite a 6% decline in light vehicle production in its primary markets. Net income increased by 17% to $122.5 million, with earnings per diluted share rising by 18% to $0.53.
Net sales reached a new quarterly record of $608.5 million, a 6% increase compared to Q3 2023.
Gross profit margin improved to 33.5%, a 60 basis point increase from the second quarter of 2024.
Net income increased by 17% to $122.5 million compared to the third quarter of 2023.
Earnings per diluted share increased by 18% to $0.53 compared to the third quarter of 2023.
Gentex
Gentex
Forward Guidance
The company expects record revenue in 2024 and 2025 despite changes in light vehicle production. 2025 revenue estimates are updated to approximately $2.45 - $2.55 billion.
Positive Outlook
- Company continues to be on pace for record revenue in 2024 and 2025.
- 12% outperformance versus the underlying vehicle production numbers in primary markets during the third quarter.
- Renewed confidence in the ability to continue to outperform the market.
- Teams have done a phenomenal job creating and executing margin recovery plan
- Intend to address a slower growth environment with increased cost focus, expense control and lower capital expenditures that more closely align with updated revenue expectations.
Challenges Ahead
- Actual and forecasted light vehicle production deterioration has impacted total revenue estimates for 2024 and 2025.
- Industry conditions have created a slower growth environment
- Timeline to achieve targeted gross margin of 35 - 36% will likely push into the 2025 calendar year
- Light vehicle production in primary markets is expected to be down 6% in Q4 2024 compared to Q4 2023.
- Light vehicle production in North America, Europe, Japan/Korea and China is now forecasted to decline approximately 2% for calendar year 2024.