By Dean Seal

Gentex is forecasting weaker 2025 revenue growth than Wall Street had been expecting after reporting falling sales and earnings in the fourth quarter, sending shares lower.

The Zeeland, Mich., car-safety technology company posted a profit of $87.7 million, compared with $116.9 million in the same quarter a year ago. Earnings were 39 cents a share, missing analyst estimates by 10 cents, according to FactSet.

Sales fell 8% to $541.6 million, well below the $601 million expected by analysts, according to FactSet.

The stock dropped 12% to $24.95 in premarket trading. Shares were changing hands at $33.13 this time a year ago.

Light vehicle production was down 6% from last quarter in the company's primary markets of North America, Europe, Japan and Korea. Shifts in the mix of vehicle builds it sold also drove the shortfall.

Chief Executive Steve Downing said several original equipment manufacturers and other top customers tried to adjust their incoming inventory levels and built a weaker mix of vehicles than they had in prior quarters. About half of the shortfall compared with company guidance was from lower-than-expected shipments of full display mirror units, Downing said.

The lower sales and weaker product mix dented margins, as Gentex couldn't leverage its overhead costs, the company said.

For 2025, Gentex forecasts $2.4 billion to $2.45 billion in revenue, which would be up from $2.31 billion last year. Analysts polled by FactSet had been projecting $2.58 billion.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

January 31, 2025 08:34 ET (13:34 GMT)

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