Jing tai q2 net profit grows 12% year-on-year

According to a report from Gasgoo Auto News, U.S. automotive rearview mirror supplier Gentex Corp. recently released its first quarterly report since acquiring consumer and automotive electronics manufacturer VOXX International Corporation.

The image source: Jingtai

Acquiring VOXX is a strategic move.

On April 1st, Gentex officially completed the acquisition of VOXX. This acquisition proved highly effective: in the second quarter of this year, VOXX contributed $78.7 million in net sales to Gentex; the combined net sales of Gentex and VOXX amounted to $657.9 million, representing a 15% increase compared to the $572.9 million in the same period last year when VOXX's net sales were not included.

Excluding the contribution from VOXX, Gentex's core revenue for the second quarter this year reached $579 million, a slight year-on-year increase of 1%, while the light vehicle production in the company's main markets declined by approximately 2% year-on-year. During this period, light vehicle production in the Chinese market also slowed down. In April this year, Gentex suspended the production of rearview mirrors for Chinese automotive customers, citing tariff issues.

At the same time, Gentay announced that its consolidated operating profit for the second quarter of this year was $118.5 million, higher than the operating profit of $114.9 million in the same period last year (excluding VOXX); core operating profit (excluding VOXX) was $123.8 million, an increase of 8% year-on-year; consolidated net profit attributable to Gentay was $96 million, up 12% from $86 million in the same period last year (excluding VOXX).

Gentex CEO Steve Downing stated in a press release: "Given the impact of tariffs and counter-tariffs on the demand for our products, especially in the Chinese market, achieving such financial results is particularly noteworthy. In the second quarter of this year, Gentex's total sales in the Chinese market were approximately $33 million, while at the beginning of this year, we expected sales in the Chinese market for the second quarter to be between $50 million and $60 million."

Based on the financial performance in the second quarter, Gentex currently expects its full-year 2025 consolidated revenue to reach $2.44 billion to $2.61 billion (previously expected to be $2.15 billion to $2.32 billion). Of this, revenue from Gentex's main markets will reach $2.10 billion to $2.20 billion, revenue in the Chinese market will reach $100 million to $125 million, and VOXX's revenue will reach $240 million to $280 million. The consolidated gross margin is expected to be 33% to 34%, with Gentex's standalone gross margin reaching 34% to 34.5% (previously expected to be "33% to 34%"), and VOXX's standalone gross margin reaching 27% to 29%.

Image source: Jingtai

After VOXX's sales declined, Gentex first announced its acquisition plan last December. Prior to the acquisition, Gentex already held nearly 32% of VOXX's shares, and Steve Downing was also a member of VOXX's board of directors at that time.

In its statement announcing the final agreement with VOXX, Gentai said: “The acquisition of VOXX is a strategic addition to Gentai’s product portfolio. VOXX’s revenue mainly comes from automotive OEM and aftermarket businesses as well as the consumer electronics industry.”

Notably, while other auto parts suppliers saw a decline in revenue in the second quarter of this year, Gentex successfully mitigated the impact of tariff uncertainties and the slowdown in electric vehicle production through this acquisition.

Steve Downing stated in the press release: "Despite facing revenue headwinds related to tariffs and a decline in sales in the Chinese market, the company is well-equipped to address these challenges through strong growth in full display mirrors (FDM) and other advanced features, along with additional revenue from the acquisition of VOXX."

Growth of the core product portfolio

The acquisition of VOXX is just the latest move by Gentex to expand its core product portfolio.

JingTai recently participated in the Series B financing of PhotoniCare Inc. in collaboration with Michigan Capital Network, with a total financing amount of $4.6 million. PhotoniCare is a company based in Illinois, USA, and it has developed an otoscope that can help diagnose and monitor middle ear infections. In 2024, JingTai also invested in Jolt Energy Storage Technologies, a company focused on low-cost energy storage technology.

Neil Boehm, Chief Operating Officer of JingTai, stated in a press release on April 1st: "The products, capabilities, and market expertise brought by VOXX complement our existing business lines."

In the 2025 global automotive parts suppliers top 100 list released by Automotive News, Gentex is ranked 91st, with sales to global car manufacturers of $2.3 billion in 2024.

Klaus Stricker, a partner and co-leader of the automotive practice at Bain & Company, told Automotive News that it is becoming an increasingly apparent trend for automotive parts suppliers to diversify into other business areas. "We believe that from our collaborations with some leading suppliers, we can observe a broader trend—they are actively exploring opportunities outside the automotive industry, particularly possibilities beyond the passenger car sector."

However, the automotive industry had already been cutting production before the recent tariff dilemma and the slowdown in electric vehicle demand. Therefore, it is almost logical for auto parts suppliers to seek to expand their business into other industries.

Klaus Stricker said, "In the past few decades, that is, before the COVID pandemic, the automotive industry was a global growth industry. Therefore, we saw its annual growth rate reach 2% or 3%, but now, this industry has suddenly come to a standstill or even begun to shrink."

Additionally, other Tier 1 automotive parts suppliers, such as LG Energy Solution, have adopted different strategies by applying existing products to new fields, such as the production of energy storage batteries.

Supplier Q2 FinancialsMixed performance

Overall, in the second quarter of this year, the performance of auto parts suppliers was mixed, with some suppliers being more impacted by tariff uncertainties and various market pressures than others.

Plante Moran is one of the largest audit, tax, consulting, and wealth management firms in the United States. Mark Barrot, the partner and head of automotive and mobility at Plante Moran, said in an interview with Automotive News, "The situation is indeed mixed. I believe that the suppliers who perform better often have a strong cost awareness and have genuinely considered what it takes to remain competitive in this market."

Underperforming suppliers have been affected by various factors, including tariff issues and decreased production, which are largely beyond their control. Mark Barrot said, "It's not that those poorly performing companies are doing the wrong things; they may just be in an environment that is not very favorable to them."