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Gentex posts record Q2 EPS, but the margin story has strings attached

7/24/2026

Gentex Corporation (NASDAQ: GNTX) delivered record second-quarter earnings per diluted share of $0.54, a 26% gain over Q2 2025, even as net sales slipped 1% to $651.3 million.

The case for the Zeeland, Michigan auto supplier is a margin expansion story.

The risk is that the story includes $18 million of IEEPA tariff reimbursements that reduced cost of goods sold, while the core automotive business contracted in China, Europe, and the Japan/Korea region.

Gross margin climbs 280 basis points, partly on tariff relief The 37.0% gross margin is the headline number. It beat Q2 2025 by 280 basis points and Q1 2026 by 320 basis points.