Gentex Corporation: Organic Growth Miss and 2H GM Guide Below Consensus; Full Year EBIT Guide Maintained (ex-IEEPA) with 2H Revenue Acceleration Embedded; Expect Negative Reaction Today

Research evidence excerpt

Gentex Corporation: Organic Growth Miss and 2H GM Guide Below Consensus; Full Year EBIT Guide Maintained (ex-IEEPA) with 2H Revenue Acceleration Embedded; Expect Negative Reaction Today

J P M O R G A N North America Equity Research

24 July 2026

Gentex Corporation

Organic Growth Miss and 2H GM Guide Below Neutral

Consensus; Full Year EBIT Guide Maintained (ex- GNTX, GNTX US

IEEPA) with 2H Revenue Acceleration Embedded; Price (23 Jul 26):$23.80

Expect Negative Reaction Today

Autos & Auto Parts

Quick take: In-line EPS (~$0.51 vs. JPMe/cons $0.50) after one-time IEEPA Rajat Gupta AC

benefit adjustment, though a miss on revenue and implied 2H gross margin (1-212) 622-6382

guide modestly below JPMe/consensus. Given the sharp decel in international rajat.gupta@jpmorgan.com

growth and full year revenue guide maintained, investors are likely to view the Yash Beswala

above-consensus 2H guide as aggressive, a key question for the call. Net-net, (1-212) 622-0028

even though full year EBIT was maintained (ex-2Q IEEPA COGS benefit), the yash.beswala@jpmchase.com

miss on organic growth, a key anchor for GNTX’s significant EV/EBITDA Jash Patwa

premium (~30%), is likely to drive a negative reaction today. (1-212) 622-5472

jash.patwa@jpmchase.com

J.P. Morgan Securities LLC

Quick 2Q26 results summary ((Table 1GNTX2Q26DetailsvsJPMEstimates): GNTX reported 2Q results featuring a

revenue miss but on a solidly higher gross margin of 37.0% vs. JPMe/consensus

for 33.7%/33.9%, which was helped favorably by a one-time IEEPA refund of $38

mn (of which ~$18 mn flowed through COGS/P&L) adjusted for which gross

margin would stand at 34.2%, a slight beat. EBIT of $142 mn adjusted for the

IEEPA refund would have tracked $124 mn, a slight miss vs. both JPMe/consensus

for $126 mn.