Recently, U.S. automotive mirror supplier Gentex Corp. announced that despite facing market fluctuations and supply chain challenges, the company maintained steady operations throughout 2024.
For the full year of 2024, Gentex reported net sales of $2.31 billion, a 1% increase compared to $2.30 billion in 2023. Of this, automotive net sales reached $2.26 billion, higher than $2.25 billion in 2023. The gross margin was 33.3%, up from 33.2% in 2023, mainly due to lower raw material costs. However, net profit for the year was $404.5 million, a 5.6% decline from $428.4 million in 2023. Diluted earnings per share (EPS) were $1.76, down from $1.84 in 2023. Operating expenses increased by 17% to $311.4 million, compared to $266.9 million in 2023.
In Q4 of 2024, Gentex reported net sales of $541.6 million, an 8% decrease compared to $589.1 million in Q4 2023. Automotive net sales for the quarter were $531.3 million, down from $578.7 million in the same period of 2023. Operating profit was $89.8 million, down from $132.8 million in Q4 2023. Net profit was $87.7 million, lower than $116.9 million in the same period of 2023. Diluted EPS for the quarter was $0.39, compared to $0.50 in Q4 2023. The gross margin dropped to 32.5% from 34.5% in Q4 2023, mainly due to lower-than-expected sales, weak product mix, and insufficient fixed cost absorption. Operating expenses were $86.5 million, a 22% increase year-over-year.
According to S&P Global Mobility's mid-January forecast for light vehicle production, global light vehicle production is expected to decrease by 1% to 73.8 million units in 2025. In North America, production is expected to drop by 3% to 15.1 million units; in Europe, a 3% decline is expected to 16.6 million units; in Japan and South Korea, production is expected to fall by 1% to 11.9 million units; while in China, production is expected to remain flat at 30.2 million units.
Gentex has stated that based on these production forecasts, it expects revenue for 2025 to be between $2.4 billion and $2.45 billion, with a gross margin of 33.5% to 34.5%, and operating expenses in the range of $310 million to $320 million.
Additionally, in 2024, Gentex repurchased 6.4 million shares of its common stock at an average price of $32.20 per share, totaling $206.1 million. In Q4 2024, the company repurchased 603,396 shares at an average price of $30.54 per share. Under the previously announced stock repurchase plan, the company still has 9.4 million shares available for repurchase. The company plans to continue repurchasing additional common stock in the future to support its previously disclosed capital allocation strategy, though stock repurchases may vary and will consider macroeconomic factors and market trends.
