Gentex Corporation (GNTX) shares took a hit Friday, falling despite matching profit expectations, as China tariff chaos dragged down quarterly revenue and spooked investors.

The auto supplier posted fourth-quarter adjusted earnings of 43 cents per share, right in line with analyst estimates. But revenue came in at $644.4 million, up 19% year over year yet still short of the $651.9 million Wall Street was expecting.

Breaking Down the Numbers

Here's where things get interesting. That 19% revenue jump looks impressive until you realize it includes $103.4 million from VOXX, an acquisition. Strip that out, and core Gentex revenue was $541.0 million—basically flat compared to last year.

But flat isn't necessarily bad when light-vehicle production across North America, Europe, and Japan/Korea dropped 2% during the quarter. In fact, Gentex managed to grow revenue in those regions by roughly 3%, a five-point outperformance relative to the underlying market.

"Revenue in these regions grew approximately 3% quarter-over-quarter, compared to a 2% decline in light-vehicle production, representing a five-point outperformance relative to the underlying market," said CEO Steve Downing.

The real pain point? China. Sales into the region totaled just $34.5 million for the quarter, hammered by what Downing called "the volatility of tariffs, counter-tariffs, weakening production in our primary markets, and cost inflation."

"We came into 2025 with a focus on growth and improving profitability and hoping for a stable end market. Instead, we were confronted with a dynamic marketplace," Downing explained.

China sales plunged 29% year over year, a brutal decline that the company managed to offset through stronger performance in its primary markets. "This year our sales teams were able to offset a 29% year-over-year sales decline in China through increased sales in our primary markets that out-performed the market by 3% despite the turbulence in those markets," the company noted.

The Bright Side: Margins Are Expanding

While revenue disappointed, profitability improved. The consolidated gross margin in the fourth quarter hit 34.8%, up from 32.5% a year earlier. Operating income jumped to $120.1 million from $89.8 million in the same period last year.

Gentex ended the quarter with $145.6 million in cash and equivalents.

Looking Ahead

For fiscal 2026, Gentex is forecasting revenue between $2.60 billion and $2.70 billion, roughly in line with the analyst consensus of $2.66 billion. The company expects consolidated gross margins of 34% to 35% and capital spending between $125 million and $140 million.

Gentex shares were trading down 5.41% at $22.74 Friday afternoon.