SMP

A month has gone by since the last earnings report for Standard Motor Products (SMP). Shares have lost about 2.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Standard Motor Products due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Standard Motor reported second-quarter 2026 adjusted earnings of $1.40 per share, up 8.6% year over year but below the Zacks Consensus Estimate of $1.42 by 1.4%. Reported net sales rose 1.6% to $501.6 million and missed the consensus mark of $509 million by 1.5%.Vehicle Control softness weighed on the quarter, while Temperature Control, Nissens and Engineered Solutions posted growth. Customer point-of-sale demand in Vehicle Control remained positive, and adjusted EBITDA reached a record $63.5 million. Vehicle Control adjusted net sales declined 1.6% year over year to $198.6 million. The decline reflected customer order timing after a strong first quarter and a significant drop in wire sets as customers adjusted inventories around the category's secular decline.Temperature Control adjusted net sales jumped 15.7% to $152.0 million. Preseason order timing shifted more heavily into the second quarter and outweighed cooler, wetter weather in May and early June. Year-to-date adjusted sales were up 9.6%. Nissens Automotive adjusted net sales increased 4.8% to $94.9 million. Local-currency sales rose 2.3%, with stronger currency conversion providing additional support. Engine efficiency products were a bright spot, while air-conditioning demand faced a late start to the European summer.Engineered Solutions adjusted net sales climbed 16.8% to $82.0 million as demand improved across end markets. Management expects growth to moderate in the second half as comparisons become tougher following the recovery that began in the latter half of 2025. Gross profit rose to $164.6 million from $150.9 million, while gross margin expanded to 32.8% from 30.6%. Operating income increased to $50.8 million from $42.8 million, lifting operating margin to 10.1% from 8.7%.Selling, general and administrative expenses increased to $113.5 million from $107.5 million. Vehicle Control profitability was pressured by higher distribution costs tied to the Shawnee, Kansas, warehouse transition, freight expense and inflation, while Engineered Solutions faced inflationary pressure on gross margin. For the first six months of 2026, operating cash flow was $58.3 million compared with $5.9 million used in the year-ago period. The $64.2 million improvement reflected lower inventory and the timing of tariff refunds. Capital expenditures were $14.9 million.Inventory declined to $684.2 million from $727.9 million at year-end 2025. Net debt fell to $510.2 million from $599.4 million at the end of the first quarter, and net debt leverage improved to 2.5 times from 3.0 times. During the quarter, SMP completed a joint venture with Techstrong and acquired 50% of its Thailand sensor manufacturing operation. Management expects the arrangement to broaden Vehicle Control manufacturing, diversify the supply chain and provide a lower-cost production base.The company also continued to pursue cross-selling opportunities with Nissens. Newly launched European categories include ignition coils and air-conditioning hoses, both sourced from manufacturing operations already within SMP's broader network. Standard Motor reaffirmed its 2026 outlook for low to mid-single-digit sales growth and an adjusted EBITDA margin of 11% to 12%. The company expects tougher second-half comparisons in Temperature Control and Engineered Solutions and less benefit from foreign-currency translation in Nissens.The outlook excludes ongoing tariff changes, significant inflationary effects from the Middle East conflict and higher interest rates affecting customer supply-chain financing programs. SMP expects about $30 million of interest expense, a 27.5% to 28% tax rate and $45 million to $50 million of depreciation and amortization for 2026. The board also approved a 33-cent quarterly dividend payable Sept. 1, 2026, to shareholders of record Aug. 14. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -10.9% due to these changes. Currently, Standard Motor Products has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Standard Motor Products has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Standard Motor Products is part of the Zacks Automotive - Replacement Parts industry. Over the past month, LKQ (LKQ), a stock from the same industry, has gained 2.6%. The company reported its results for the quarter ended June 2026 more than a month ago. LKQ reported revenues of $3.41 billion in the last reported quarter, representing a year-over-year change of -6.4%. EPS of $0.67 for the same period compares with $0.87 a year ago. For the current quarter, LKQ is expected to post earnings of $0.70 per share, indicating a change of -16.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.9% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for LKQ. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report LKQ Corporation (LKQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 11 a.m. ET Vice President of Investor Relations - Anthony Cristello Chairman and Chief Executive Officer - Eric Sills Chief Financial Officer - Nathan Iles Operator: Hello, and welcome, everyone, joining today's Standard Motor Products Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this call is being recorded, and we are standing by, should you need any assistance. It is now my pleasure to turn the meeting over to Tony Cristello, Vice President of Investor Relations. Please go ahead. Anthony Cristello: Well, thank you, and good morning, everyone. Thank you for joining us on Standard Motor Products Second Quarter 2026 Earnings Conference Call. With me today are Eric Sills, Chairman and Chief Executive Officer; and Nathan Iles, Chief Financial Officer. On our call today, Eric will give an overview of our performance in the quarter, and Nathan will then discuss our financial results. Eric will then provide some concluding remarks and open the call up for Q&A. Before we begin this morning, I'd like to remind you that some of the material we'll be discussing today may include forward-looking statements regarding our business and expected financial results. When we use words like anticipate, believe, estimate or expect, these are generally forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us and certain assumptions made by us, and we cannot assure you that they will prove correct. You should also read our filings with the Securities and Exchange Commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements. I'll now turn the call over to Eric Sills, our CEO. Eric Sills: Well, thank you, Tony, and good morning, everyone. Welcome to our second quarter earnings call. Overall, we were quite pleased with our performance in the quarter as our top line grew by nearly 7% when adjusting for the accounting treatment of tariff refunds received in the period, which Nathan will explain further in his remarks. And year-to-date, we are now up nearly 8%. We also generated a record-setting $63.5 million in adjusted EBITDA in the quarter, along with strong operating cash flows. I'll walk through each operating segment separately, and please note that all future mentions of sales through my remarks are also adjusted for the tariff refunds. Vehicle Control sales were down slightly in the quarter. Much of this was related to customer order patterns, which can vary quarter-to-quarter based on timing of pipeline orders and other dynamics. Importantly, customer POS was up in the quarter, demonstrating that this was more related to typical flexing of their purchasing patterns. Additionally, when looking at the product categories within the segment, our wire set business was off significantly, making up most of the quarter's shortfall. As we've previously explained, this is a category in secular decline dropping by mid-single digits each year, and our customers have, therefore, been adjusting their stocking positions accordingly and thus slowed purchases in the quarter. Year-to-date, the segment remains up nearly 5% as pipeline orders generated a very strong first quarter. Our other North American aftermarket segment, Temperature Control, had a very strong quarter with adjusted sales up nearly 16%. As discussed on our first quarter call, the first half of the year is significantly impacted by the timing of preseason orders and 2026 was shifted more into the second quarter. This more than offset the slower start to the selling season as May and parts of June were unseasonably cool and wet across much of the country. Year-to-date, we remain up nearly 10%. But as we've always said about the seasonal category, individual quarters are less important than the full year. And while more favorable weather pattern has kicked in across much of the country, we are going up against very strong comps as we are up almost 15% in last year's third quarter. Next, I'll speak about Nissens Automotive, our European aftermarket business. Sales in the quarter were up nearly 5%, which was roughly split between actual growth in local currency and the impact of stronger currency conversion. And looking at the product categories, we are very pleased with the sizable growth in engine efficiency products driven by items such as turbos and other engine management, where we are clearly gaining shelf space. The soft spot was within air conditioning, which was impacted by a late start to the European summer, similar to the U.S. Europe has since set all records for heat, and we feel good about a recovery for our AC products. Lastly, as previously discussed, we recently launched 2 new categories in Europe, leveraging the synergies with our legacy business. And while it is early days without much impact yet on our numbers, we are pleased with our momentum. Next, let me speak to our non-aftermarket segment, Engineered Solutions. The strong demand experienced in the first quarter continued with second quarter sales up nearly 17%, bringing year-to-date growth to nearly 15%. As a reminder, 2025 was a tale of 2 halves, a soft first half followed by a rebound. And while that rebound has continued, the second half of this year is going against more challenging comps. Finally, as announced a few weeks ago, we are pleased to have entered into a joint venture agreement with our long-standing partner, Techstrong, where we acquired 50% of their Thailand operation focused on sensor manufacturing to support our Vehicle Control segment. We see this as an excellent strategic investment hitting on several key pillars. It reinforces our commitment to being a basic manufacturer of the products. It provides additional control of our supply chain and it launches a low-cost manufacturing operation on which to build, that derisks us from China. Before handing it over to Nathan to provide details, I would like to mention recent leadership changes previously announced. After well over 40 years of dedicated service, Jim Burke has elected to step down as Chief Operating Officer. Over these years, the contributions that Jim has made are far too numerous to count and I consider them a major part of our company's success. Jim is staying on as Executive Adviser and remains a member of our Board, so I look forward to continuing to work closely with him. At the same time, we announced that Sunil Bhandari has joined us as Chief Operations Officer, with responsibility for all of our operations globally, including manufacturing, distribution, engineering, procurement and supply chain. Sunil brings with him 25 years of global business and operations leadership, including the last 14 years at Eaton Corporation and a strong record of driving operational execution. I look forward to seeing all that Sunil can do for us. So now let me hand this over to Nathan. Nathan Iles: All right. Thank you, Eric, and good morning, everyone. As we go through the numbers, I'll first give some color on the results for the quarter by segment and at the consolidated level, and then I'll cover some balance sheet and cash flow metrics and finish with an update on our financial outlook for the full year of 2026. Before I talk about our second quarter results, I would like to note that we received refunds in Q2 for amounts previously paid under the IEEPA tariff regime. As per our normal practice of treating tariffs as a pass-through cost, accounting for these tariffs impacted both our sales and cost of goods sold during the quarter. I'll be discussing our results on a non-GAAP basis and excluding the impact of accounting for tariff refunds. First, looking at our Vehicle Control segment results, you can see on the slide that net sales of $198.6 million in Q2 were down 1.6% as we saw a continued secular decline in our wire set category during the quarter, as Eric said. Sales in our Engine Management product categories continue to be up both the quarter and year so far, beating year-to-date sales to be up 4.7% for the segment despite impacts from wire sales. Vehicle Control's adjusted EBITDA of 8.6% in the second quarter was a little lower than last year. While we've seen some improvement in our gross margin rate, our operating expenses as a percent of sales increased as a result of some elevated distribution costs related to ramping up our new warehouse in Shawnee, Kansas, some higher freight expense and general inflation and SG&A costs. Next, looking at Temperature Control. Net sales in the quarter for that segment of $152 million were up 15.7% for the reasons Eric noted before. Temperature Control's adjusted EBITDA increased in Q2 to 18.2% as good sales volumes led to a higher gross margin rate and operating expenses improved as well. Turning to Nissens. Sales grew there by $4.4 million or 4.8%, reflecting some impact of currency conversion, but also continued sales growth of 2.3% in local currency, even though we were up against a difficult comparison where last year had very robust orders in the first half of the year. Adjusted EBITDA for Nissens of 19% of net sales in Q2 was higher than last year, mainly as a result of improvements in gross margin rate and SG&A expenses. It's important to note that while we had some currency transaction losses that impacted this segment in the first quarter, we saw those stabilize in Q2, helping the segment return to normal profit level. Sales for our Engineered Solutions segment in the quarter were up 16.8%, and we were pleased to see growth across most markets. The second quarter marked the last quarter of easier comparisons given market cycles, and we expect the sales growth rate for this segment will slow through the remainder of the year. Adjusted EBITDA for Engineered Solutions in the quarter of 9.7% was down from last year as the gross margin was lower due to inflationary headwinds, but partly offset by improved operating expense leverage on higher sales. To wrap up our results discussion and put it all together across the 4 segments for the quarter, consolidated net sales increased 6.7%, while adjusted EBITDA was 12.1% of net sales and $4.4 million better than last year. Further, non-GAAP diluted earnings per share were up 8.6% to $1.40 in the quarter. Looking now at cash flows. Cash generated from operations for the first 6 months of $58.3 million were $64.2 million better than last year, driven by a significant reduction in inventory levels in the first half of the year as well as timing of tariff refunds received. We were pleased to see the improvement in inventory after coming into the year with some higher balances to support our sales growth this year. Investing activities show capital expenditures of $14.9 million, which is lower than last year as capital spending related to our new DC is complete. Our financing activities show payments of $14.7 million of dividends as well as $24 million in repayments on our credit agreement. Our net debt stood at $510.2 million, down significantly from Q2 last year. We finished the quarter with a leverage ratio of 2.5x EBITDA and believe we are on track to get to our stated target of 2x by the end of 2026. Before I finish, I want to give an update on our sales and profit expectations for the full year of 2026, which is unchanged from before. We expect sales growth to be in the low to mid-single-digit percentage range, driven by continued momentum in North America and Europe and more stable market conditions in our Engineered Solutions segment. This range is lower than the growth we saw through the first half of the year. But keep in mind, we've now lapped tariff pricing that went into effect last year. Our Engineered Solutions and Temperature Control segments will face more difficult comparisons in the second half, and we will lose some tailwinds from the foreign currency translation that has helped the Nissens business as the U.S. to euro rate stabilized. Our outlook for adjusted EBITDA margin is a range of 11% to 12% and reflects margin benefits of sales growth, but also continued margin compression from passing through tariffs at cost and elevated distribution costs as we ramp up our new warehouse. As we noted in our release this morning and the slide notes, our outlook does not include the impact of ongoing changes in the tariff environment, inflationary impacts from the conflict in the Middle East or changes in interest rates on our customers' supply chain financing programs. In connection with our adjusted EBITDA outlook, we expect interest expense on outstanding debt to be about $30 million for the full year, our income tax rate to be in the range of 27.5% to 28% and depreciation and amortization to increase to $45 million to $50 million as we'll have a full year of depreciation on distribution center investments and also continue to invest in our business generally. To wrap up, we're very pleased with how our year has started with strong sales growth and good profitability. We thank everyone in the company for helping us turn in these results. Thank you for your time. I'll turn the call back to Eric for some final comments. Eric Sills: Thank you, Nathan. In closing, let me spend a moment discussing how we are viewing things for the balance of the year and beyond. Even in the face of a challenging environment, we have enjoyed several consecutive quarters of solid performance. We operate in strong and stable markets and believe we are outperforming due to a combination of structural advantages, customer relationships and execution. We've made great strides in diversifying our business with new product categories, geographies and end markets, all with a focus on seeking complementary benefits. We're certainly in the midst of complicated times. It remains unknown what impact the conflict in the Middle East will have either on cost or potentially on supply chain disruption, but we have a strong track record of navigating these challenges with robust and resilient supply chains and a favorable manufacturing footprint. Within our legacy business, North American aftermarket, we believe we excel. The industry itself continues to demonstrate its stability and resilience in the face of turbulent times. And within it, we believe we tend to outperform with a business model that targets repair professionals with quality products and brands they trust. Nissens is a fantastic new leg to our stool and is exceeding our expectations. They're a great company in their own right. And as part of S&P, they provide great business diversity while being similar enough to generate meaningful synergies, both to the top and bottom line. Our Engineered Solutions business continues its rebound and is a strong complement to our core business, and so we remain very bullish about our future. And that concludes our prepared remarks. We'll now turn it back over to the moderator to open it up for questions. Operator: [Operator Instructions] We'll take our first question from Scott Stember with ROTH Capital. Scott Stember: Congrats, Jim, on the retirement. You will be missed. So just quick questions on the tariffs. Now that you received your IEEPA refund. Those are gone, but we have some replacement with 301s. What does the go-forward net tariff landscape look for you? Is there some improvement? And then the other question is whether it's related to the IEEPA and any lower pricing environment, do you -- how should we look at potential givebacks to customers within guidance and how we should look at that being reflected in the numbers? Eric Sills: Very good. Thank you, Scott, and thank you for the kind remarks about Jim. I'm sure he appreciates it. And I'm sure he'd still love to go have a beer with you at some point. All right. I'll tackle the first part of your question about the ongoing tariff regime. As you mentioned, there's been a lot of change, but it's really been replacement tariffs. So the IEEPAs were declared illegal and were eliminated immediately. They put in place the Section 122 tariffs. Those stayed in place for 150 days, and those were immediately replaced by the Section 301 tariff. There was a couple of other changes in the middle of that treatment of steel and aluminum derivatives and some other noise as well. It all nets to a very nominal reduction in our total tariff exposure. So as we have been saying really since tariffs became a topic back in 2018, our approach has been to pass these through dollar for dollar and make changes as they occur, albeit with a timing offset of, say, 90 to 120 days. So this has been no different. Again, all those changes that I just described all net to a small reduction and with a timing offset, that's what you see. But it doesn't have a major impact on the top line. Related to the second part of your question about treatment of the refunds, Nathan described the accounting treatment in the period. And in the spirit of that same basic philosophy and transparency and fairness that we've had with customers, we're certainly not going to get into any specific customer discussions that we're having on this call, but we do expect a sharing of these refunds as we did pass them along to begin. Scott Stember: Got it. And then in Temperature Control, obviously, some timing of sell-in is helping, but we can all see the record heat that we're seeing across the country in many parts in July and into August. Can you maybe just share with us at POS, what you saw in the quarter? And if you're seeing any subsequent catch-up in the last like 6 weeks since the quarter ended? Eric Sills: So what we saw within the second quarter on customer POS was pretty soft, especially in the month of May, which was really an unseasonably cool and wet month and really the beginning of June, you saw that as well. So overall, the second quarter, while their purchases from us were up, again, as in my prepared remarks, I said it was largely due to the preseason volume, their sales out in that second quarter were soft. But now it has picked back up, and this is now only directional. And -- but as the summer has continued and as you are now seeing that heat and we've had our periods here in the Northeast kind of up and down, but much of the country has remained really pretty solidly warm, we are seeing that POS rebound. It's -- we're still at the halfway mark, so we don't want to get ahead of ourselves. It's a long season and it seems over the last few years to be getting longer and longer. So it's too early to really predict how the full year is going to turn out, but it is nice to see it has rebounded. Scott Stember: Got it. And then last question on Nissens. I know that, obviously, the market has been soft there, but you've been outperforming. What are you seeing maybe on a market-by-market basis? Any change to the narrative over the last few quarters? Eric Sills: It's really an ongoing story, which is not altogether dissimilar to what we have here in North America, which is why you hear that the overall market across the continent has had some softness. That's largely been on product categories that are more discretionary than ours. And also similar to what we've seen here, the summer started slowly there, but now it's just crazy hot across Europe and has been really for much of the summer. And obviously, air conditioning is a major category for Nissens. We are -- we have customers across the entire continent. So while you're going to have some potential ups and downs country by country, region by region, we're pan-European. And so those do tend to just kind of cancel themselves out. So as we go forward for the second half of this year, pretty much, as we said, we continue to see trends continue, and we're pleased. Operator: [Operator Instructions] We'll take our next question from Bret Jordan with Jefferies. Bret Jordan: You called out Vehicle Control at customer POS up. Could you sort of give us an order of magnitude? And is that up in units, price? And I guess, both? What's the composition of up? Eric Sills: Yes. Thanks, Bret. And what we did see in the quarter for POS was, as you said, which was just reflecting what I said, was continued to be positive. There was a modest softening, but it was still up in the low single digits in terms of the split between pricing and units, it was certainly more towards the pricing side, but the units stayed strong as well. Bret Jordan: Okay. And then when we think about this IEEPA conversation with your customers, is it the kind of thing where if you -- there was going to be sort of a giveback, is it cutting them a check? Or is it sort of giving them lower prices going forward to offset the higher prices they paid around IEEPA? So how do we think about like how that transaction might work? Eric Sills: Well, it's a fair question. I'm not going to get into the details of this, and it's still in discussions with individual customers. And so the mechanics, we're not going to be talking about that. Bret Jordan: All right. Do I get a free question then since we didn't do that one? Eric Sills: For you, absolutely. Take 2. Bret Jordan: All right. You talked about new categories in Europe that were synergistic. Could we talk maybe about what you're doing in expanding categories in Europe? Eric Sills: Yes. Well, this is one of the things that really drew us to Nissens where we can really cross-pollinate the 2 categories that we launched in the beginning of the year, one was a Vehicle Control category, which is a major one for us here in the U.S., which is ignition coils and very well suited for launching in Europe because we make all of our coils in Europe, in Poland. And so it gives you that local-for-local selling strategy there, which while certainly there's a lot of other coil suppliers there, it gives us a really differentiated program. So that was the first one, and we're starting to see a certain amount of traction. The other was an air conditioning category that was a part of the AC system that was a gap for them, which was hoses. Here, too, we're a basic manufacturer out of one of our joint ventures in China, which was relatively easy to accelerate a program for them with good market coverage. And so both of these were launched in the beginning of this year, and we're in ramp stage. But I think what it shows is that we're developing a nice business model of identifying areas where we can help each other through an accelerated launch. These are obviously things we could have done organically without our help, but because we bring a source of supply. Hopefully, it's out of our own plants as these last 2 were, it really allows acceleration. We did similar things for them broadening their offering here in North America. North America is a small part of their business. But not only did it allow broader coverage for things that they didn't have, but we've been able to help open some doors here for them. And so we're definitely seeing the synergies on helping them expand what they do. And now we're looking at the converse, which is what can they do to help us with our legacy business. And we're in the process of putting together a category that you'll -- I'm sure you'll come by our booth in APEX in a couple of months and happy to show you around what we're doing there. So we're just really getting started on the growth synergies between the two companies, but we really see that's where the complementary businesses help each. Operator: At this time, there are no further questions. I will turn the meeting back over to Tony Cristello. Anthony Cristello: Thank you, and we want to thank everyone for participating in our conference call today. We understand there's a lot of information presented, and we'll be happy to answer any follow-up questions you may have. Our contact information is available on our press release or Investor Relations website. Hope you have a great day. Thank you. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SMP (SMP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Standard Motor Products, Inc.? Here are five stocks we like better. Standard Motor Products reported solid second-quarter results, with consolidated sales up 6.7%, record adjusted EBITDA of $63.5 million and significantly improved operating cash flow. The company maintained its 2026 outlook for low- to mid-single-digit sales growth and an adjusted EBITDA margin of 11% to 12%. Performance varied by segment: Temperature Control sales rose 15.7%, Engineered Solutions increased 16.8% and Nissens Automotive grew 4.8%, while Vehicle Control declined 1.6% amid weaker wire-set sales and customer ordering patterns. The company reduced debt and ended the quarter with leverage of 2.5 times EBITDA, targeting 2 times by year-end 2026. It also announced a Thailand sensor-manufacturing joint venture with Techstrong to strengthen supply-chain control and reduce exposure to China. Standard Motor Products Stock is Ready to Roar Standard Motor Products (NYSE:SMP) reported second-quarter results marked by 6.7% consolidated sales growth, record adjusted EBITDA of $63.5 million and improved operating cash flow, while maintaining its full-year outlook amid tariff changes, weather-related demand variability and more difficult comparisons in the second half. Chief Executive Officer Eric Sills said the company’s top-line growth was nearly 7% after adjusting for the accounting treatment of tariff refunds received during the quarter. Year-to-date adjusted sales growth was nearly 8%. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Financial Officer Nathan Iles said the company received refunds during the quarter for tariffs previously paid under the IEPA tariff regime. Because Standard Motor Products treats tariffs as a pass-through cost, the refunds affected both sales and cost of goods sold. The company discussed its operating results excluding that accounting impact. Vehicle Control sales declined 1.6% to $198.6 million during the quarter. Sills attributed much of the decline to customer ordering patterns and a significant drop in wire set sales, a category he said is in secular decline at a mid-single-digit annual rate. Customer point-of-sale activity increased during the quarter, which Sills said indicated that the sales decline reflected purchasing patterns rather than end-market demand. → No Hangover: Revisiting Microsoft One Week After Earnings Vehicle Control sales were up 4.7% year-to-date, supported by strong first-quarter pipeline orders and growth in engine management products. The segment’s adjusted EBITDA margin was 8.6%, lower than a year earlier, as higher distribution costs related to the ramp-up of the company’s Shawnee, Kansas, warehouse, freight expense and inflation in selling, general and administrative costs outweighed gross-margin improvement. Temperature Control posted sales of $152 million, up 15.7% from a year earlier. The segment benefited from the timing of preseason orders shifting more heavily into the second quarter. The gain offset slower selling-season demand during May and part of June, when Sills said weather was unseasonably cool and wet across much of the U.S. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Temperature Control adjusted EBITDA margin increased to 18.2%, reflecting stronger volumes, a higher gross-margin rate and improved operating expenses. Although point-of-sale activity was soft in the second quarter, Sills said it had rebounded as hotter weather developed across much of the country. He cautioned that it was still too early to predict the full-year outcome for the seasonal business. Nissens Automotive, the company’s European aftermarket business, increased sales by $4.4 million, or 4.8%. The growth included a 2.3% increase in local currency and a benefit from currency conversion. Sills highlighted growth in engine-efficiency products, including turbochargers and engine-management parts, which he said reflected gains in shelf space. Air-conditioning sales in Europe were affected by a late start to the summer, though Sills said record heat across the region had since supported expectations for a recovery in air-conditioning products. Nissens’ adjusted EBITDA margin rose to 19% of net sales, aided by higher gross margins, improved SG&A expenses and stabilization in currency transaction losses that had affected the first quarter. Engineered Solutions sales increased 16.8%, with growth across most markets. Its adjusted EBITDA margin declined to 9.7% as inflationary pressures reduced gross margin, partly offset by better operating-expense leverage on higher revenue. Management said the segment’s growth rate is expected to moderate during the remainder of the year as it faces tougher comparisons. For the first six months of 2026, cash generated from operations totaled $58.3 million, an improvement of $64.2 million from the prior-year period. Iles said the increase was driven by lower inventory levels and the timing of tariff refunds. Capital expenditures were $14.9 million, lower than the previous year as spending tied to the new distribution center was completed. The company paid $14.7 million in dividends and repaid $24 million under its credit agreements during the period. Net debt was $510.2 million at quarter-end, down significantly from the second quarter of 2025. Standard Motor Products ended the quarter with leverage of 2.5 times EBITDA and said it remains on track to reach its target of 2 times EBITDA by the end of 2026. The company also announced a joint venture with longtime partner Techstrong, acquiring a 50% interest in Techstrong’s Thailand sensor-manufacturing operation. Sills said the investment will support Vehicle Control, strengthen supply-chain control and provide a low-cost manufacturing base that reduces exposure to China. Separately, longtime Chief Operating Officer Jim Burke stepped down after more than 40 years with the company. Burke will remain an executive adviser and board member. Sunil Bhandari joined as chief operations officer, overseeing global manufacturing, distribution, engineering, procurement and supply chain. Standard Motor Products reaffirmed its 2026 outlook for low- to mid-single-digit sales growth and an adjusted EBITDA margin of 11% to 12%. Interest expense is expected to be about $30 million for the full year. The income tax rate is projected at 27.5% to 28%. Depreciation and amortization are expected to rise to $45 million to $50 million. Iles said the outlook assumes continued momentum in North America and Europe and more stable conditions in Engineered Solutions. However, management expects tougher second-half comparisons in Temperature Control and Engineered Solutions, while currency translation benefits for Nissens may diminish if the U.S. dollar-to-euro exchange rate stabilizes. The outlook does not include potential effects from further tariff changes, inflationary pressures associated with the Middle East conflict or changes in interest rates affecting customer supply-chain financing programs. Sills said the company expects to share tariff refunds with customers because the tariffs were originally passed through, though he did not provide details on the mechanics of those discussions. Standard Motor Products, Inc, headquartered in Long Island City, New York, is a leading manufacturer and distributor of aftermarket and original equipment automotive parts. Since its founding in 1919, the company has focused on engineering, testing, and supplying ignition and temperature management products for passenger cars and light trucks. Its product lineup includes ignition coils, spark plug wires, sensors, switches, heating and air conditioning controls, and related electronic components. The company operates through two primary segments: Engine Management and Temperature Control. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Standard Motor Products Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Standard Motor Products (SMP) came out with quarterly earnings of $1.4 per share, missing the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.41%. A quarter ago, it was expected that this auto parts maker would post earnings of $0.73 per share when it actually produced earnings of $0.82, delivering a surprise of +12.33%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Standard Motor Products, which belongs to the Zacks Automotive - Replacement Parts industry, posted revenues of $501.6 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.47%. This compares to year-ago revenues of $493.85 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Standard Motor Products shares have added about 5.2% since the beginning of the year versus the S&P 500's gain of 11%. While Standard Motor Products has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Standard Motor Products was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.56 on $513.3 million in revenues for the coming quarter and $4.40 on $1.87 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Replacement Parts is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Auto-Tires-Trucks sector, Aeva Technologies, Inc. (AEVA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level. Aeva Technologies, Inc.'s revenues are expected to be $6.13 million, up 11.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report Aeva Technologies, Inc. (AEVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second quarter net sales of $501.6 million with adjusted net sales up 6.7% to $526.7 million Second quarter diluted earnings per share of $1.39 with non-GAAP diluted earnings per share of $1.40 up 8.6% Year-to-date 2026 operating cash flow improved $64.2 million; Net debt leverage declined to 2.5x Reaffirming full-year guidance of low to mid-single digit sales growth and adjusted EBITDA margin of 11% - 12% NEW YORK, Aug. 4, 2026 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and six months ended June 30, 2026. Consolidated net sales for the second quarter of 2026 were $501.6 million, compared to consolidated net sales of $493.9 million during the same quarter in 2025. Consolidated adjusted net sales for the second quarter of 2026 were $526.7 million, compared to consolidated adjusted net sales of $493.9 million during the same quarter in 2025. Earnings from continuing operations for the second quarter of 2026 were $31.8 million or $1.39 per diluted share, compared to earnings of $26.3 million or $1.17 per diluted share in the second quarter of 2025. Non-GAAP earnings from continuing operations for the second quarter of 2026 were $31.9 million or $1.40 per diluted share, compared to $28.9 million or $1.29 per diluted share in the second quarter of 2025. Consolidated net sales for the six months ended June 30, 2026 were $952.8 million, compared to consolidated net sales of $907.2 million during the comparable period in 2025. Consolidated adjusted net sales for the six months ended June 30, 2026 were $977.9 million, compared to consolidated adjusted net sales of $907.2 million during the comparable period in 2025. Earnings from continuing operations for the six months ended June 30, 2026 were $50.1 million or $2.20 per diluted share, compared to $40.0 million or $1.79 per diluted share in the comparable period of 2025. Non-GAAP earnings from continuing operations for the six months ended June 30, 2026 and 2025 were $50.5 million or $2.23 per diluted share and $46.9 million or $2.10 per diluted share, respectively. Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "Overall we were pleased with our second quarter. Adjusted net sales for the quarter, excluding the impact of accounting treatment for tariff refunds received in the quarter, increased 6.7% with three of our four operating segments showing strong gains, while adjusted EBITDA increased to a record-setting $63.5 million." Second Quarter Highlights: North American Aftermarket Segments Vehicle Control adjusted net sales decreased 1.6% in the second quarter, largely due to timing of customer orders as we come off of a very strong first quarter. Year-to-date adjusted net sales are up 4.7% for the segment. Our wire sets category was down significantly, making up the majority of the segment shortfall, reflecting a combination of slow secular decline and customers right-sizing their inventories accordingly. Customer POS for the segment continued to be positive throughout the quarter, demonstrating ongoing demand for our non-discretionary offering. We were pleased to consummate our joint venture with Techstrong in the quarter, as previously announced. This will strengthen our Vehicle Control operations by expanding our breadth of manufacturing, further diversifying our global supply chain, and creating a long-term cost-effective operation on which to build. We welcome them to the SMP family. Temperature Control adjusted net sales increased 15.7%, as the timing of our preseason orders fell more heavily into our second quarter this year, driving strong results despite the cooler, wetter weather in May. Year-to-date adjusted net sales are up 9.6%. Ultimately this seasonal segment's full-year performance will be determined by the length and intensity of the selling season and as we enter our third quarter weather trends appear to be favorable for sales in many of our markets, however we are up against a strong comparison in the second half of the year. Nissens Nissens adjusted net sales increased 4.8% to $94.9 million, driven by a combination of 2.3% sales growth in local currency as well as a stronger currency conversion. Year-to-date we are up 8.0% for the segment. We are pleased with the gains in our engine efficiency product categories, and as we head into the third quarter, record temperatures across Europe bode well for our air conditioning products. Further, we are encouraged by the early results seen in our recently launched product categories and view these products as steady contributors to growth in future years. Engineered Solutions Adjusted net sales in the Engineered Solutions segment showed strong growth of 16.8% over last year's soft second quarter as demand continues to recover. Sales growth improvement was seen across all end-markets, and we are pleased to see the segment demand stabilize. We expect this to continue, though the comparison will get tougher in the second half of the year. Profitability & Balance Sheet Adjusted EBITDA for the quarter increased to $63.5 million, up from $59.1 million last year, driven by solid performance across our Temperature Control, Nissens and Engineered Solutions segments. Vehicle Control EBITDA was negatively impacted by increased distribution and associated expenses related to our Shawnee, Kansas distribution center transition. From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $510.2 million, down from $599.4 million at the end of the first quarter, reflecting debt paydown as we move into our seasonally stronger cash-generating quarters. Importantly, we reduced our inventory to $684.2 million from $727.9 million at December 31, 2025. Our net debt leverage decreased to 2.5x from 3.0x in the first quarter of 2026, and we continue to target reducing net debt levels to 2.0x adjusted EBITDA by the end of 2026. 2026 Guidance Update Our outlook for the full year of 2026 reaffirms our expectation that sales growth will be in the low to mid-single digit range driven by ongoing tailwinds for professional grade non-discretionary products in the North American aftermarket, continuing momentum in our European business, and an ongoing recovery in Engineered Solutions, offset by a lapping of both tariff pricing and the benefits of stronger currency conversion. Further, we reaffirm our expectation that adjusted EBITDA will be in a range of 11% -12%. Note that our guidance excludes the impact of ongoing changes in the tariff landscape, any significant inflationary impact from the conflict in the Middle East, or increase in interest rates impacting our customers' supply chain financing programs. We intend to address these pressures with our usual combination of cost savings and pricing programs. Dividends The Board of Directors has approved payment of a quarterly dividend of 33 cents per share on the common stock outstanding, which will be paid on September 1, 2026 to stockholders of record on August 14, 2026. Closing Remarks In closing, Mr. Sills commented, "As we head into the second half of the year, we are encouraged by the performance across all our segments. The resiliency of the aftermarket in both North America and Europe remains intact, evidenced by strong demand for our non-discretionary products, and we are pleased with the ongoing momentum in our Engineered Solutions business. I would like to thank our employees for their hard work and commitment to our continued success." Conference Call Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Tuesday, August 4, 2026. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q2'26 Earnings Call Webcast link. Investors may also listen to the call by dialing 800-445-7795 (domestic) or 785-424-1699 (international). The conference call ID code is SMP2Q2026. Our playback will be made available for dial in immediately following the call. For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call. The playback number is 800-723-0389 (domestic) or 402-220-2647 (international). Forward-Looking Statements Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release. Use and Definition of Non-GAAP Measures We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance and balance sheet health. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. When we provide our expectations for adjusted EBITDA, adjusted EBITDA margin and net debt leverage, a reconciliation of this non-GAAP financial measure to the corresponding GAAP measures is not available without unreasonable effort due to potentially high variability and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Below are our non-GAAP financial measures: — 201,699Temperature ControlAC System Components119,294104,777Other Thermal Components25,45426,588Total Temperature Control144,7487,227151,975131,365—131,365Nissens AutomotiveAir Conditioning39,32940,441Engine Cooling36,27135,082Engine Efficiency19,07515,014Total Nissens Automotive94,67523994,91490,537—90,537Engineered SolutionsLight Vehicle24,67521,780Commercial Vehicle21,53721,836Construction/Agriculture11,0169,584All Other22,81417,052Total Engineered Solutions80,0422,00682,04870,252—70,252Intersegment sales(778)—(778)———Total$ 501,599$ 25,123$ 526,722$ 493,853$ —$ 493,853 View original content to download multimedia:https://www.prnewswire.com/news-releases/standard-motor-products-inc-releases-second-quarter-2026-results-and-quarterly-dividend-302842333.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Top-line growth of nearly 7% was driven by strong demand in Temperature Control and Engineered Solutions, offsetting secular declines in legacy categories. Vehicle Control performance was impacted by a mid-single-digit annual decline in the wire set business, leading customers to aggressively adjust stocking positions. Temperature Control growth of 16% reflected a strategic shift of preseason orders into the second quarter, successfully mitigating a cool start to the selling season. Engineered Solutions saw a 17% rebound as the segment recovered from a soft prior year, though management notes this marks the end of easier year-over-year comparisons. The Nissens acquisition is delivering on strategic goals through engine efficiency product growth and the launch of two new synergistic categories in Europe. The new Thailand joint venture serves as a critical strategic pivot to derisk the supply chain from China while establishing a low-cost manufacturing base for sensors. Management attributes outperformance to a business model focused on repair professionals and the ability to maintain resilient supply chains during geopolitical uncertainty. Full-year 2026 sales growth is expected in the low to mid-single-digit range, assuming a deceleration in the second half due to more challenging comparisons. Adjusted EBITDA margin guidance of 11% to 12% accounts for ongoing margin compression from passing through tariffs at cost and elevated distribution ramp-up expenses. The company is targeting a leverage ratio of 2.0x by the end of 2026, supported by significant inventory reductions and strong operating cash flows. Guidance excludes potential inflationary impacts from Middle East conflicts and changes in interest rates affecting customer supply chain financing. Future growth strategy focuses on 'cross-pollinating' product categories between North American operations and the Nissens European platform. Accounting for IEEPA tariff refunds impacted both sales and cost of goods sold; management intends to share these refunds with customers following the regime's elimination. Distribution costs remain elevated due to the operational ramp-up of the new Shawnee, Kansas warehouse facility. A significant leadership transition occurred with Sunil Bhandari joining as COO to oversee global operations following Jim Burke's retirement after 40 years. Currency translation tailwinds for the Nissens business are expected to diminish as the U.S. dollar to Euro exchange rate stabilizes. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the replacement of IEEPA with Section 301 tariffs results in only a nominal reduction in total tariff exposure. The company maintains a dollar-for-dollar pass-through philosophy with a 90 to 120-day timing offset. Specific mechanics of sharing tariff refunds with customers remain under individual discussion and were not disclosed. Point-of-sale (POS) data was soft in May and early June due to weather, but has since rebounded as record heat patterns emerged across the U.S. Management cautioned that while the rebound is positive, the full-year outcome remains dependent on the duration of the summer selling season. Standard Motor Products launched ignition coils in Europe by leveraging its existing manufacturing plant in Poland to provide a 'local-for-local' strategy. The company introduced AC hoses to the Nissens portfolio by utilizing its joint venture manufacturing base in China to fill a previous product gap. Management indicated that further 'growth synergies' and category expansions will be showcased at upcoming industry events like APEX.

This article first appeared on GuruFocus. Consolidated Net Sales: Increased 6.7% in Q2 2026, adjusted for tariff refund accounting. Adjusted EBITDA: Record-setting $63.5 million in Q2 2026, with margin at 12.1% of net sales. Non-GAAP Diluted EPS: Up 8.6% to $1.40 in Q2 2026. Vehicle Control Sales: Down 1.6% to $198.6 million in Q2, with year-to-date sales up 4.7%. Temperature Control Sales: Up 15.7% to $152 million in Q2, with adjusted EBITDA margin of 18.2%. Nissan (European Aftermarket) Sales: Up 4.8% ($4.4 million) in Q2, with 2.3% growth in local currency; adjusted EBITDA margin of 19%. Engineered Solutions Sales: Up 16.8% in Q2, with adjusted EBITDA margin of 9.7%. Operating Cash Flow: $58.3 million for the first six months of 2026, $64.2 million better than last year. Capital Expenditures: $14.9 million in the first half of 2026. Net Debt: $510.2 million at quarter-end, with leverage ratio of 2.5 times EBITDA. Full-Year 2026 Outlook: Sales growth expected in low to mid-single-digit percentage range; adjusted EBITDA margin expected between 11% and 12%. Warning! GuruFocus has detected 5 Warning Signs with SMP. Is SMP fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated sales grew nearly 7% in Q2 2026, with year-to-date growth of almost 8%. Record-setting adjusted EBITDA of $63.5 million in the quarter, with strong operating cash flows. Temperature control segment saw a strong quarter with adjusted sales up nearly 16%. Engineered solutions segment continued strong demand with Q2 sales up nearly 17%. Nissan's European business grew sales nearly 5% in Q2, with continued local currency growth of 2.3%. Cash flow from operations improved significantly, up $64.2 million year-to-date, driven by inventory reduction and tariff refunds. Net debt decreased significantly, with leverage ratio at 2.5 times EBITDA, on track to reach 2 times by end of 2026. Entered into a strategic joint venture with Techstrong to acquire 50% of their Thailand sensor manufacturing operation, enhancing supply chain control and de-risking from China. New product categories launched in Europe are gaining momentum, leveraging synergies with legacy business. Customer POS in vehicle control was up in the quarter, indicating underlying demand strength. Vehicle control sales were down slightly in Q2, impacted by customer order patterns and secular decline in wire set business. Wire set business continues to decline by mid-single-digits annually, affecting segment performance. Temperature control segment faced a slow start to the selling season due to unseasonably cool and wet weather in May and early June. Elevated distribution costs related to ramping up the new warehouse in Shawnee, Kansas, and higher freight expenses pressured operating expenses. Engineered solutions segment's adjusted EBITDA margin decreased due to inflationary headwinds on gross margin. Full-year 2026 sales growth outlook is lower than first-half performance due to lapping tariff pricing and difficult comparisons in second half. Adjusted EBITDA margin outlook reflects continued margin compression from passing through tariffs at cost and elevated distribution costs. Uncertainty remains regarding the impact of the Middle East conflict on costs and supply chain. Tariff refunds are expected to be shared with customers, potentially impacting future revenue. Nissan's air conditioning products were impacted by a late start to the European summer, though recovery is expected. Q: What does the go-forward net tariff landscape look for the company after receiving the IEEPA refund, and how should we look at potential give-backs to customers within guidance?A: Eric Sills, Chairman and CEO, explained that the tariff changes have been replacement tariffs, netting to a very nominal reduction in total tariff exposure. The company's approach remains to pass tariffs through dollar for dollar with a timing offset of 90 to 120 days. Regarding refunds, while not getting into specific customer discussions, the company expects a sharing of these refunds with customers, consistent with their philosophy of transparency and fairness. Q: In temperature control, what did you see at POS in the quarter, and are you seeing any subsequent catch-up in the last six weeks since the quarter ended?A: Eric Sills noted that customer POS was soft in the second quarter, especially in May and early June due to unseasonably cool and wet weather. However, as the summer has progressed with record heat across much of the country, POS has rebounded. He cautioned that it's still early to predict the full year, but the rebound is encouraging. Q: Can you give an order of magnitude on the vehicle control customer POS increase, and is it up in units, price, or both?A: Eric Sills stated that POS in the quarter was up in the low single-digits. The split between pricing and units was more weighted toward the pricing side, but unit sales remained strong as well. Q: Regarding the IEEPA refunds, is the give-back to customers a check or lower prices going forward to offset the higher prices they paid?A: Eric Sills declined to provide specific mechanics, stating that discussions with individual customers are ongoing and the company will not comment on the details of those negotiations. Q: Can you talk about the new synergistic categories you're expanding in Europe?A: Eric Sills detailed two new categories launched in Europe at the beginning of the year: ignition coils, which are manufactured in Poland, and AC hoses, sourced from a joint venture in China. Both leverage the company's manufacturing capabilities to accelerate market entry. He emphasized that this cross-pollination strategy is just beginning, with more growth synergies expected between the legacy business and Nissens. Q: What are you seeing on a market-by-market basis in Europe, and has the narrative changed over the last few quarters?A: Eric Sills explained that the European market story is similar to North America, with softness in more discretionary product categories. The summer started slowly but has since become extremely hot across Europe, which should benefit their air conditioning category. As a pan-European company, regional ups and downs tend to cancel out, and they expect trends to continue in the second half. Q: How should we think about the second-half comparisons for the Engineered Solutions segment?A: Nathan Iles, CFO, noted that the second quarter marked the last quarter of easier comparisons given market cycles. The company expects the sales growth rate for this segment to slow through the remainder of the year as they face more challenging comps. Q: Can you provide an update on the company's leverage and cash flow position?A: Nathan Iles reported that cash generated from operations for the first six months was $58.3 million, a $64.2 million improvement year-over-year, driven by significant inventory reductions and tariff refund timing. Net debt stood at $510.2 million, with a leverage ratio of 2.5 times EBITDA, and the company remains on track to reach its stated target of 2 times by the end of 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Douglas Dynamics (PLOW) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +31.18%. A quarter ago, it was expected that this snowplow maker would post earnings of $0.12 per share when it actually produced earnings of $0.36, delivering a surprise of +200%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Douglas Dynamics, which belongs to the Zacks Automotive - Replacement Parts industry, posted revenues of $214.65 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $194.33 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Douglas Dynamics shares have added about 35.2% since the beginning of the year versus the S&P 500's gain of 9.4%. While Douglas Dynamics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Douglas Dynamics was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $216.1 million in revenues for the coming quarter and $2.85 on $768.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Replacement Parts is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Standard Motor Products (SMP), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This auto parts maker is expected to post quarterly earnings of $1.42 per share in its upcoming report, which represents a year-over-year change of +10.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Standard Motor Products' revenues are expected to be $509.1 million, up 3.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Douglas Dynamics, Inc. (PLOW) : Free Stock Analysis Report Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Standard Motor Products, Inc. SMP reported first-quarter 2026 adjusted earnings of 82 cents per share, up 1.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of 73 cents by 12.3%. Net sales increased 9.1% year over year to $451.2 million and topped the Zacks Consensus Estimate of $422 million by about 6.8%. Adjusted EBITDA rose to $44.5 million from $42.8 million a year ago, supported by steady aftermarket demand and solid execution across segments. Standard Motor Products, Inc. price-consensus-eps-surprise-chart | Standard Motor Products, Inc. Quote Vehicle Control sales grew 11.2% year over year to $213.8 million, driven by customer pipeline orders tied to assortment expansion, alongside generally favorable demand trends. Temperature Control sales increased 0.7% to $89.5 million, lapping a record prior-year quarter. Nissens Automotive sales increased 12.4% to $74.4 million. The rise was attributed to the growth in currency translation, while local-currency sales were also higher against a tougher comparison after unusually robust customer order patterns in the prior year. Engineered Solutions sales rose 12.6% year over year to $74.3 million, reflecting improving demand conditions and stronger activity at certain customers, particularly within commercial vehicle and powersports end markets. Gross profit rose to $139.2 million from $124.7 million a year ago, with gross margin improving to 30.8% from 30.2%. Operating income climbed to $34.1 million from $24.5 million, and operating margin expanded to 7.6% from 5.9%. Selling, general and administrative expenses were $104.8 million compared with $99.8 million in the prior-year quarter. The company expects nominal tariff pass-through pricing in its North American aftermarket operations to weigh on rate-based margins when tariffs are passed through at cost. On an operating profit basis, Vehicle Control delivered $20.2 million, while Temperature Control's operating profit increased to $10.6 million from $7.8 million. Nissens Automotive generated an operating profit of $7.9 million. Engineered Solutions produced $1.7 million, down from $3.2 million a year ago, as inflationary headwinds and manufacturing variances pressured profitability despite the sales rebound. Cash used in operating activities was $41.9 million in the quarter, down from $60.2 million used a year ago. This was due to a stronger preparedness on inventory entering the year, as sales ramp seasonally during the first quarter. SMP ended the quarter with $59.2 million in cash compared with $72 million at year-end 2025. Long-term debt was $609.3 million at March 31, 2026, compared with $566.7 million at Dec. 31, 2025, reflecting the typical seasonal working capital build early in the year. For 2026, SMP reaffirmed expectations for low to mid-single-digit sales growth and an adjusted EBITDA margin range of 11-12%. The company also reiterated that the outlook excludes the impact of ongoing tariff changes. The company declared a quarterly dividend of 33 cents per share, payable on June 1, 2026, to stockholders of record on May 15. SMP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year. Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation. Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition. Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents per share a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features. Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million. PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes. On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report Gentex Corporation (GNTX) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research