Gentex Corporation (NASDAQ:GNTX) Q4 2023 Earnings Call Transcript

Ronald Jewsikow: Okay, that’s helpful. And then on the ’25 guide specifically, if we think about kind of the 8% year-over-year number that you guys are guiding towards at the midpoint, how should we think about FDM contribution, traditional electrochromics and other products? And then I guess, more importantly, what will be needed to drive revenue growth closer to the 10% year-over-year implied at the high end of the guidance?

Steven Downing: Yes, I think what would be needed to get to the higher end would be some help on LVP and then obviously, stabilization in take rates, especially of FDM. Those would be the two big takeaways for ’24, right? Those would be the things that would actually help us get to the high end of that range.

Kevin Nash: And then most of the LVP is growing in China in that 25% range, not North America or, right, Japan, Korea.

Ronald Jewsikow: Okay. No, that’s helpful color. And then just sneak one more in, a bit of a follow-up on kind of the cadence for this year. But I know in a normal year, you start getting better pricing from your supply base closer to midyear. Is that still a good way to think about this year? I know we’re kind of not in a normal environment right now. Or are you already seeing better pricing from your Tier 2s?

Kevin Nash: Yes, I think we’ve — the pricing is fairly locked in. It’s just a matter of burning through that inventory, which is on average about 2 to 3 months for us. So that’s one Steve referred to it earlier as contracts are pretty much locked in, or I wouldn’t say 100%, but we feel pretty good about it. Starting in the end of the first quarter into the second is when you start to see the benefit of that roll through the financials.

Operator: And I would now like to turn the conference back over to Josh O’Berski for closing remarks.

Josh O’Berski: Thank you, everyone, for your time and questions today. As a reminder, Gentex will be hosting an Analyst and Investor Day on the morning of March 19, 2024, in New York at the Nasdaq building in Times Square. If you’re interested in attending, please reach out to me directly, and we can follow up from there. Thanks again for the questions today, hope everyone has a great weekend.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.