SRI

Interested in Stoneridge, Inc.? Here are five stocks we like better. Second-quarter results exceeded expectations: Revenue rose more than 15% year over year to $181 million, with core organic growth of nearly 8%. Adjusted EBITDA increased to $5.5 million, while operating efficiency improved despite lower gross margins. MirrorEye remained the key growth driver: Quarterly revenue reached a record $37 million, up 39% year over year, and Stoneridge secured a bus and coach program worth an estimated $42 million in lifetime revenue, with commercialization expected in 2027. Balance-sheet and outlook trends strengthened: Net debt declined by $39 million and operating cash flow improved 38% year over year. Stoneridge reaffirmed its 2026 guidance of $645 million–$670 million in revenue and $20 million–$25 million in adjusted EBITDA. Stoneridge (NYSE:SRI) reported second-quarter 2026 results that exceeded its internal expectations, supported by organic sales growth, record MirrorEye revenue, improved cost discipline and stronger cash generation. The company reaffirmed its full-year revenue and adjusted EBITDA outlook while citing improving conditions in commercial vehicle markets. President and Chief Executive Officer Natalia Noblet said Stoneridge’s revenue, excluding foreign-currency effects and revenue tied to a Mexico Manufacturing Agreement following the sale of its Control Devices segment, grew nearly 8% from a year earlier. She described the result as the company’s fastest organic growth rate in more than two years. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company sold its Control Devices business on Jan. 30, 2026, and has retrospectively presented that operation as discontinued operations for all periods discussed. Prior-period segment information was also recast to align with the current reporting structure. Chief Financial Officer Scott Humphrey said second-quarter revenue totaled $181 million, up more than 15% from the prior-year quarter. The increase included about $4 million from favorable currency translation and $7 million of contract manufacturing revenue associated with the Mexico Manufacturing Agreement. Excluding those items, core revenue rose nearly 8%. → No Hangover: Revisiting Microsoft One Week After Earnings Growth was led by North American commercial vehicle activity, record MirrorEye sales and double-digit expansion at Stoneridge Brazil, Humphrey said. Stoneridge’s organic revenue growth outpaced its weighted average OEM end markets, which declined nearly 2% during the quarter, according to Noblet. Adjusted gross profit margin declined 277 basis points year over year to 20.3%. Humphrey attributed the decline to higher material expense from currency translation losses, discrete inventory-related costs associated with a shift in North American MirrorEye adoption from retrofit products toward factory-built systems, and lower sales of the Smart 2 tachograph following the completion of a European regulatory retrofit campaign in 2025. → MarketBeat Week in Review – 08/03 - 08/07 Despite the gross-margin pressure, adjusted operating income margin improved by 100 basis points. Selling, general and administrative expense fell to 14.3% of revenue, an improvement of 182 basis points from a year earlier. Humphrey said that while quarterly sales increased by $24 million year over year, SG&A expense increased by less than $400,000. Adjusted EBITDA was $5.5 million, representing the company’s highest quarterly adjusted EBITDA from continuing operations in two years. Adjusted EBITDA margin expanded 251 basis points to 3% of sales. MirrorEye, Stoneridge’s camera-monitoring technology, generated a quarterly record of $37 million in revenue, up 39% from the prior-year period and 10% from the first quarter of 2026. Noblet said the growth reflected European OEM programs, continued market penetration and take-rate strength, along with the ramp-up of recently launched North American programs. Stoneridge announced a new bus and coach program award with a leading global commercial vehicle manufacturer. The program represents an estimated $42 million in lifetime revenue and is expected to reach full commercialization in 2027. The award uses the MirrorEye MP II system, which was designed for buses and coaches and includes Blind Spot Information System and Moving Off Information System capabilities, as well as digital video output for recording and analysis. Noblet said MirrorEye systems are now used in more than 20 bus and coach programs, in addition to truck applications and expansion into agriculture and off-highway markets. During the question-and-answer session, Noblet said the technology’s North American Class 8 opportunity is concentrated among four key OEMs, while Europe has roughly four to five principal OEMs. She said European MirrorEye take rates are about 35% to 50%, depending on the vehicle model, while North American take rates are about 5% to 15% depending on the customer. Noblet also said Stoneridge is pursuing agriculture and heavy-equipment applications for MirrorEye and other vision products, with dedicated teams serving those customer segments in North America and Europe. Stoneridge Brazil reported record second-quarter revenue of $20.5 million, up 38% from the prior year. Excluding an approximately $2 million currency-translation benefit, revenue increased nearly 26%. Humphrey said the quarter benefited from a temporary competitive supply disruption, while also reflecting Stoneridge’s efforts to realign its product lineup and expand business with new and existing OEM customers. Brazil adjusted operating income was about $2.3 million, or 11.2% of sales, with adjusted operating margin improving 464 basis points year over year. As of June 30, Stoneridge held approximately $72 million in cash and had $151 million in total debt, compared with $46 million in cash and $164 million in total debt a year earlier. The company said net debt declined by $39 million, aided by proceeds from the Control Devices sale and tighter working-capital management. Inventory declined by about $5 million year over year, while electronics segment days in inventory fell by 15 days. Cash from operations totaled just over $12 million in the quarter, a 38% improvement from the prior year. Stoneridge is pursuing a refinancing to replace its existing credit facility, which matures in July 2027. Humphrey said the company has had constructive discussions with banking partners and remains on schedule to complete the process by the end of November. The company reaffirmed its 2026 guidance for revenue of $645 million to $670 million and adjusted EBITDA of $20 million to $25 million. Stoneridge expects both revenue and EBITDA to improve year over year in the second half, supported by commercial vehicle production, MirrorEye adoption and continued momentum in Brazil. Humphrey said third- and fourth-quarter revenue is expected to be modestly below second-quarter levels due primarily to normal seasonality. However, EBITDA is expected to improve sequentially during the remainder of the year through operational efficiencies, overhead actions and inflationary cost recovery measures. Stoneridge expects product-mix and strategic inventory costs experienced in the second quarter to become less significant during the rest of 2026. The company also expects working-capital investment to increase later in the year as several OEM programs prepare to ramp in early 2027, which could affect the timing of cash generation. Stoneridge, Inc (NYSE: SRI) is a global developer and manufacturer of highly engineered electrical and electronic components for the automotive and commercial vehicle markets. The company's product offerings span a range of safety, convenience and control systems, delivering tailored solutions that help original equipment manufacturers (OEMs) meet increasingly stringent regulatory and performance requirements. Among Stoneridge's core products are rearview and side-view mirror systems, camera-based advanced driver assistance systems (ADAS) and interior and exterior lighting solutions. 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 "Stoneridge Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stoneridge Inc (NYSE:SRI) reported its fastest organic revenue growth in over two years, with core sales up nearly 8% year-over-year, significantly outpacing the market. Mirror Eye technology achieved another quarterly sales record of $37 million, up 39% year-over-year, driven by strong European OEM adoption and North American program ramps. The company secured a new $42 million bus and coach OEM award, its largest to date, with full commercialization expected in 2027. Adjusted EBITDA more than doubled to $5.5 million, the highest in eight quarters, with margin expansion of 251 basis points year-over-year. Working capital discipline improved cash flow, with operating cash flow up 38% year-over-year and net debt reduced by nearly $40 million over the past 12 months. IHS forecasts for 2026 now project 5.5% growth in Stoneridge's weighted average OEM markets, up from 1.8% expected in May, signaling improving demand. Adjusted gross profit margin declined 277 basis points year-over-year to 20.3%, impacted by higher material costs, currency translation losses, and inventory-related charges. Lower sales of the Smart 2 tachograph product, following the completion of last year's European regulatory retrofit campaign, weighed on gross margins. The company faces ongoing macroeconomic and geopolitical uncertainty in key regions, which could impact demand. 2027 IHS growth forecasts were revised down to 5.4% from 10% three months ago, though absolute volumes remain largely unchanged. Significant OEM program ramps expected in early 2027 will require additional working capital investment, potentially causing near-term cash flow variability. The refinancing process for the existing credit facility, maturing in July 2027, is still ongoing and not yet completed. Warning! GuruFocus has detected 4 Warning Signs with SRI. Is SRI fairly valued? Test your thesis with our free DCF calculator. Q: With Mirror Eye now in the Class 8 business and having a majority of the OEMs, is it fair to assume that growth will now be driven primarily by take rates on the product going forward? A: Natalia Noble (President and CEO): Yes, absolutely. In Europe, the technology is more mature, with take rates around 35% to 50% depending on the vehicle model. In North America, we currently see take rates around 5% to 15% depending on the customer, and we expect these to grow as the technology matures. Q: You mentioned expansion into off-highway applications like agriculture. What other markets are you targeting for Mirror Eye technology? A: Natalia Noble (President and CEO): We are actively focusing on off-highway, agriculture, and heavy equipment segments with our Mirror Eye and other vision products. We have dedicated teams in North America and Europe working closely with customers in these new verticals, and we are seeing good traction. Q: Can you provide more detail on the new bus and coach program award and its significance? A: Natalia Noble (President and CEO): We announced a new bus and coach program with a leading global commercial vehicle manufacturer, representing $42 million in estimated lifetime revenue with full commercialization expected in 2027. This is our largest program to date in that segment and reflects the successful launch of our Mirror Eye MP2 system, which integrates advanced safety capabilities like blind spot information and moving object information systems. Q: What is driving the strong organic growth in the second quarter, and how does this compare to the overall market? A: Natalia Noble (President and CEO): Our organic revenue grew nearly 8% year-over-year, which was the fastest rate in over two years. This significantly outpaced our weighted average OEM market, which declined nearly 2% for the quarter. The growth was driven by record Mirror Eye sales, strong performance in Brazil, and signs of stabilization in European and North American commercial vehicle markets. Q: Can you elaborate on the gross margin decline in the second quarter and what the outlook is for the rest of the year? A: Scott Humphrey (CFO): Adjusted gross profit margin declined 277 basis points to 20.3%. This was due to higher material expense from currency translation losses, discrete inventory-related costs from the shift of Mirror Eye adoption from retrofit to factory-built products, and lower sales of our smart 2 tachograph product. However, assuming constant currency, we anticipate these items will have a lesser impact on profitability over the balance of the year. Q: What is the current status of the refinancing process for the existing credit facility? A: Scott Humphrey (CFO): We initiated a refinancing process in April to replace our existing credit facility, which matures in July 2027. We have had constructive conversations with our banking partners and are on schedule to complete the refinancing process by the end of November. Our top priority is maintaining a prudent capital structure that supports our near and long-term growth objectives. Q: How is the company's working capital and cash flow performance trending? A: Scott Humphrey (CFO): Working capital discipline was a highlight, with cash from operations totaling just over $12 million, a 38% improvement versus last year. We reduced inventory on hand by approximately $5 million and lowered the electronics segment's days in inventory by 15 days year-over-year. Net debt decreased by nearly $40 million over the past 12 months. Q: What are the expectations for the second half of 2026 regarding revenue and EBITDA? A: Scott Humphrey (CFO): We are reaffirming our full year 2026 guidance of revenue in the range of $645 to $670 million and adjusted EBITDA in the range of $20 to $25 million. Both third and fourth quarter revenue are expected to be modestly lower than second quarter levels due to normal seasonality, but EBITDA should improve sequentially driven by operational efficiencies and inflationary cost recovery measures. Q: Can you provide more detail on the performance of Stoneridge Brazil in the quarter? A: Scott Humphrey (CFO): Stoneridge Brazil delivered an outstanding quarter with record sales of $20.5 million, up 38% versus the prior year. Excluding a roughly $2 million benefit from currency translation, revenue was up nearly 26%. Adjusted operating income reached approximately $2.3 million, with margins improving 464 basis points year-over-year to 11.2%, driven by record gross profit and improved fixed cost leverage. Q: What are the updated market forecasts for 2026 and 2027, and how does this impact the company's outlook? A: Natalia Noble (President and CEO): IHS forecasts now suggest our weighted average OEM end markets will grow by 5.5% year-over-year in 2026, up from the 1.8% expected in May. For 2027, IHS anticipates an additional 5.4% growth, which is down from the 10% expected three months ago, but on an absolute volume basis, the 2027 forecast is largely unchanged. The revision appears to be influenced by timing of orders and deliveries favoring 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Strengthening Demand & Expense Control Underpin 2Q Performance NOVI, Mich., Aug. 5, 2026 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the second quarter ended June 30, 2026. 2026 Second Quarter Highlights: Sales growth of 15.1% YoY to $181.4 million Record quarterly MirrorEye revenue of ~$37 million (+39% YoY) Record quarterly revenue for Stoneridge Brazil of $20.5 million Net loss from continuing operations of $5.3 million, or $0.19 per share; improved from a net loss of $11.1 million, or $0.40 per share, in the prior year Adjusted EBITDA of $5.5 million; best quarterly performance in 24 months Reaffirming 2026 guidance ranges "Our second quarter performance reflects disciplined execution of our strategy as we improve our cost structure and focus our resources on the opportunities that will drive long-term value," said Natalia Noblet, president and chief executive officer. "In Brazil, our strategic shift toward high-value OEM programs continues to position the business for more sustainable, profitable growth. With strong execution across the business, we remain confident in our strategy and are reaffirming our full-year guidance for 2026." The exhibits attached hereto provide reconciliation details on normalizing adjustments of non-GAAP financial measures used in this press release. Second Quarter Results & Commentary Consolidated net sales from continuing operations of $181.4 million increased 15.1% YoY. On a core basis, excluding favorable currency translation of $4.4 million and Mexico Manufacturing Agreement revenue of $7.1 million related to the sale of the Control Devices business, revenue improved 7.8% YoY. The North American commercial vehicle market and Stoneridge Brazil were the primary contributors to second quarter growth. Gross margin decreased 277 basis points to 20.3% from 23.1% in the second quarter of 2025 as cost leverage on higher sales and benefits from targeted expense control initiatives were more than offset by a combination of higher material costs, stemming from unfavorable currency, strategic inventory-related actions and adverse product mix following the completion of a European regulatory retrofit campaign. Consolidated net loss from continuing operations totaled $(5.3) million, or $(0.19) per share, compared to a net loss of $(11.1) million, or $(0.40) per share, for the quarter ended June 30, 2025. Non-GAAP adjusted EBITDA totaled $5.5 million, or 3.0% of sales, compared to $0.8 million, or 0.5% of sales, in the year ago period. Second Quarter GAAP Segment Results & Commentary Electronics second quarter sales of $160.9 million increased by $18.2 million, or 12.8%, relative to the second quarter of 2025. Excluding a favorable foreign currency translation impact of $2.6 million and Mexico Manufacturing Agreement revenue related to the sale of the Control Devices business, revenue improved 6.0% YoY. Revenue growth against the second quarter of 2025 was primarily driven by the North American commercial vehicle market. Second quarter adjusted operating margin increased by 12 basis points YoY to 3.0% as the benefits of a higher revenue base and implemented cost initiatives more than offset the cumulative impacts of unfavorable mix, currency and strategic inventory-related actions. Stoneridge Brazil second quarter sales of $20.5 million increased by $5.6 million, or 37.6%. Excluding a favorable foreign currency translation impact of $1.8 million, sales improved by 25.7%. Higher OEM sales were the primary driver of growth during the quarter. Second quarter adjusted operating income of $2.3 million, or 11.2% of sales, increased 135.5%, or 464 basis points, compared to the second quarter of 2025 as higher sales volume more than offset increased SG&A expense. Cash and Debt Balances As of June 30, 2026, cash and cash equivalents totaled $71.5 million with total debt of $151.1 million, resulting in net debt of $79.6 million. The $38.5 million decrease in net debt compared to December 31, 2025 reflects the deployment of proceeds from the sale of the Control Devices business in January and tighter control of working capital during the first half of the year. The Company's Credit Facility is due to mature on July 1, 2027. The company expects to refinance the credit facility, and is currently engaged in a global refinancing process. 2026 Outlook & Management Commentary The Company is reaffirming the 2026 guidance ranges that were most recently updated in May. "We are encouraged by our progress in the second quarter, and believe initiatives to generate operational efficiencies and enhance profitability are beginning to materialize," said Noblet. "We are also seeing promising signs across the European and North American commercial vehicle markets, which should support growth over the balance 2026. However, we believe it prudent to balance these positives against ongoing macroeconomic and geopolitical uncertainty. We continue to focus on material cost reductions, quality improvements as well as inflationary cost recovery, and remain committed to executing our long-term strategic plan as we navigate the challenging external environment." The Company has not provided a reconciliation of its full-year 2026 guidance for adjusted gross margin, adjusted operating margin, and adjusted EBITDA (or adjusted EBITDA margin) to the most directly comparable GAAP financial measures because the Company is unable to provide such reconciliations without unreasonable effort. This is due to the inherent difficulty of forecasting with the required precision the timing and amount of various items that have not yet occurred, are out of the Company's control, or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable reconciling information, which could be material to future results calculated in accordance with GAAP. The Company's actual results calculated in accordance with GAAP may vary materially from these non-GAAP financial measures presented herein. Conference Call on the WebA live Internet broadcast of Stoneridge's conference call regarding 2026 second quarter results can be accessed at 8:00 a.m. Eastern Time on Thursday, August 6, 2026, at www.stoneridge.com, which will also offer a webcast replay. About Stoneridge, Inc.Stoneridge, Inc., headquartered in Novi, Michigan, is a global supplier of safe and efficient electronic systems and technologies. Our systems and products power vehicle intelligence, while enabling safety and security for on- and off-highway transportation sectors around the world. Additional information about Stoneridge can be found at www.stoneridge.com. Forward-Looking StatementsStatements in this press release contain "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this press release and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) strategic focus following the sale of the Control Devices segment, (iii) acquisition strategy, (iv) investments and new product development, (v) growth opportunities related to awarded business, and (vi) operational expectations. Forward-looking statements may be identified by the words "will," "may," "should," "could," "would," "designed to," "believes," "plans," "projects," "intends," "expects," "estimates," "anticipates," "continue," and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors: the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output; fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with or reimbursements from our customers or other cost reduction actions, as necessary; global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries; tariffs specifically in countries where we have significant direct or indirect manufacturing or supply chain exposure and our ability to either mitigate the impact of tariffs or pass any incremental costs to our customers; our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions; the reduced purchases, loss, financial distress or bankruptcy of a major customer or supplier; the costs and timing of business realignment, facility closures or similar actions; a significant change in commercial, automotive, off-highway or agricultural vehicle production; competitive market conditions and resulting effects on sales and pricing; foreign currency fluctuations and our ability to manage those impacts; customer acceptance of new products; our ability to successfully launch/produce products for awarded business; adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, or our customers' products; our ability to protect our intellectual property and successfully defend against assertions made against us; liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers; labor disruptions at our facilities, or at any of our significant customers or suppliers; business disruptions due to natural disasters or other disasters outside of our control; the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving credit facility; capital availability or costs, including changes in interest rates; refinancing risk and access to capital markets and liquidity; the failure to achieve the successful integration of any acquired company or business; risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; the items described in Part I, Item 1A ("Risk Factors") in the Company's most recent Form 10-K. The forward-looking statements contained herein represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, except as required by law, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise. Use of Non-GAAP Financial Information This press release contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2026 and 2025 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably estimate. In evaluating its business, the Company considers and uses net debt as a supplemental measure of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position and results of operations. In particular, management believes that adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net loss from continuing operations, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and net debt are useful measures in assessing the Company's financial performance by excluding certain items that are not indicative of the Company's core operating performance or that may obscure trends useful in evaluating the Company's continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company's results of operations and provide improved comparability between fiscal periods. Adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income loss from continuing operations, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and net debt should not be considered in isolation or as a substitute for gross profit, operating income (loss), income (loss) before tax, income tax expense (benefit), loss from continuing operations, net income (loss), EPS, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP. Because not all companies calculate non-GAAP financial measures in the same manner, the non-GAAP financial measures presented in this press release may not be comparable to similarly titled measures used by other companies, and the Company's use of these measures may vary from that of other companies in its industry. CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Regulation G Non-GAAP Financial Measure Reconciliations Exhibit 1 – Reconciliation of Adjusted Gross Profit Exhibit 2 - Reconciliation of Adjusted Operating Loss Exhibit 3 – Reconciliation of Q2 Adjusted Tax Rate Exhibit 4 - Reconciliation of Adjusted Net Loss and EPS Exhibit 5 – Reconciliation of Adjusted EBITDA Exhibit 6 – Segment Adjusted Operating Income Exhibit 7 – Reconciliation of Net Debt View original content to download multimedia:https://www.prnewswire.com/news-releases/stoneridge-reports-second-quarter-2026-results-302843860.html

Image source: The Motley Fool. May 7, 2026 President and Chief Executive Officer — Natalia Noblet Interim Chief Financial Officer — Robert Hartman Need a quote from a Motley Fool analyst? Email [email protected] Natalia Noblet, our President and Chief Executive Officer; and Bob Hartman, our Interim Chief Financial Officer. Before we begin, I would like to inform you that as a result of the sale of its Control Devices business segment on January 30, 2026, the company has applied the provisions of discontinued operations accounting guidance and has retrospectively presented the financial results of the Control Devices segment as discontinued operations in the accompanying presentation for all periods presented. Additionally, in connection with the retrospective presentation of Control Devices as discontinued operations prior period segment information has been recast to conform to current period presentation. More information on the basis of presentation will be included in the Form 10-Q, which will be filed with the Securities and Exchange Commission. During today's call, we will be referring to certain non-GAAP financial measures. Please see Slide 2 of the presentation for a more detailed description of these non-GAAP measures and the appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. In addition, certain statements today may be forward-looking statements. Forward-looking statements include statements that are not historical in nature and include information concerning our future results or plans. Although we believe that such statements are based upon reasonable assumptions, you should understand that these statements are subject to risks and uncertainties and actual results may differ materially. Additional information about such factors and uncertainties that could cause actual results to differ may be found on Page 3 of the presentation and in our Form 10-Q under the heading Forward-Looking Statements. After Natalia and Bob have finished their formal remarks, we will then open up the call to questions. And with that, I will hand the call over to Natalia. Natalia Noblet: Thank you, Kelly, and good morning, everyone. It is a privilege to speak with you today in my first earnings call as President and CEO and at a time when our industry is being fundamentally transformed with continued shift to automation and connected vehicle technologies as well as focus on advanced safety and vehicle efficiency. Our product portfolio is directly aligned with this transformation and represents significant growth opportunities. Now turning to the first quarter. Let me begin on Page 4. This quarter marks the next phase of our long-term strategy as we advance our key priorities to drive shareholder value. We made progress through disciplined execution, improved manufacturing and quality performance, net tariff-related recoveries and organization-wide cost control. More specifically, compared to the fourth quarter of prior year, first quarter adjusted gross margin expanded by 400 basis points and adjusted operating margin improved by 180 basis points. This resulted in adjusted EBITDA of $2 million, which exceeded our previous expectations of approximately breakeven EBITDA performance. European commercial vehicle market is at late cycle normalization and transitioning to moderate growth while North American market remains at the bottom of the production cycle with signals of recovery. Although we see the first positive signals in these end markets, macroeconomic and geopolitical headwinds continue to persist. That said, our first quarter revenue grew by 9.2% compared to the fourth quarter of prior year. This resulted in market outperformance compared to our weighted average OEM end market, which declined by 9.1% over the same period. As previously announced, MirrorEye set another quarterly sales record generating $33 million in sales, an increase of 11% compared to the fourth quarter of 2025. Similarly, Stoneridge Brazil OEM sales continue to grow as our local business accelerates resulting in first quarter sales growth of more than 54% and our off-highway sales improved compared to the fourth quarter as well. As previously mentioned, adjusted gross margin improved by 400 basis points compared to the fourth quarter. This demonstrates progress on our excellence in execution initiatives and in particular, company-wide quality improvements, manufacturing productivity and the recent tariff-related recoveries, including agreements with customers and the benefit of the tariff refund process. We remain committed to driving structural cost reductions by streamlining our SG&A costs to more effectively support our company's current structure and are on track with our commitment to reduce costs by at least $5 million this year. Our priority is delivering outstanding value to customers while collaborating with all of our partners to advance next-generation technologies for safer and more efficient transportation. We are excited to announce 2 major business awards totaling approximately $135 million of estimated lifetime revenue. First, we are announcing an award for an OEM integrated MirrorEye program with our fourth North American customer. We now have OEM programs with all 4 major Class 8 truck manufacturers in North America. Second, we are announcing a next-generation electronic controls program for a global off-highway manufacturer in Europe representing the increasing demand for integrated intelligence systems. Both of these awards highlight our ability to deliver reliable, high-performance solutions for our customers and build on our already strong backlog of growth products. I will provide more details on these awards later on the call. Additionally, we are reaffirming our base full year 2026 guidance. However, we are adjusting revenue and operating guidance ranges for the incremental impact of contract manufacturing associated with the sale of Control Devices. Bob will discuss this guidance update in more detail later on the call. Turning to Slide 5. As just mentioned, both the European and North American commercial vehicle end markets remain at low production levels. Europe went through a downturn, but significantly milder than North America and the market is expected to normalize this year. North America, however, went through a deep downcycle and now we see early signs of recovery in trucking demand and order intake growth. At the time of our fourth quarter call, IHS production forecasts were indicating growth of 7.1% for our weighted average OEM end market. As you can see from the chart on Slide 5, updated IHS production forecasts have now been reduced and are now indicating that our weighted average OEM end market will grow by just 1.8%. These updated forecasts are now more in line with our initial full year 2026 guidance expectation. Although we see the first signs of recovery in these end markets especially for the second half of this year, inflationary pressure and geopolitical headwinds continue to persist. Turning to Page 6. MirrorEye continues to gain momentum driven by increasing market acceptance as well as the continued ramp-up of recently launched programs in North America. At the same time, we are executing on new business opportunities with key strategic OEM customers as evidenced by our new program announcement with the fourth major OEM in North America. As already mentioned, first quarter MirrorEye sales set yet another quarterly record with $33 million. This represents 11% growth compared to the fourth quarter of 2025 and 32% year-over-year driven largely by our European OEM programs with continued strength in market penetration and take rates supported by our customers' focused marketing of this best-in-class innovative technology. Complementing this growth is the continued ramp-up of recently launched OEM programs in North America. While program ramp-ups remain in the early stages, we are seeing increased order strength and continue to receive positive feedback from the market. As we pass through the ramp-up phase, we are focused on engineering optimization that will allow us to benefit from platform approach while adding product features at the same time. With volume increase and maturity gain, we will also see higher capacity utilization and material cost improvement through supply chain optimization. By executing those key activities, we can fully realize the value of our technology. In addition to strong commercial performance and as previously announced, Stoneridge has now surpassed 150,000 MirrorEye systems produced globally marking a major milestone in the systems life cycle. This achievement reflects the growing confidence of OEM partners and fleet operators as well as Stoneridge's ability to scale production while maintaining the highest standards of quality and reliability. Reaching 150,000 systems is more than a production milestone. It's a testament to the trust our customers place in MirrorEye every day. As adoption accelerates, we remain focused on continuous innovation and production efficiency. Building on our momentum and success of the MirrorEye platform, we are excited to announce that we have been awarded the OEM integrated CMS program with yet another major North American Class 8 truck manufacturer. As announced last year, we began offering our standard version as an option on the current heavy-duty truck model. Through continued strength of this customer relationship and the trust we have built to create a foundation for continuous collaboration, we were awarded the custom program based on our next-generation camera monitoring system. This program is expected to launch in 2028 with estimated lifetime revenue of approximately $70 million and estimated peak annual revenue of approximately $20 million. We now have MirrorEye programs with 4 major OEMs in North America resulting in significant market share. MirrorEye and our strategy to create long-term growth for the platform is paying off with additional business awards and expansion across the global OEMs. We are deploying the resources necessary to optimize this growth platform and create long-term value for our shareholders. Turning to Slide 7. In addition to MirrorEye, we continue to win new programs in our other key product categories. As part of our strategy to expand our electronic control business, we secured a business award for a next-generation control program with a leading global off-highway vehicle manufacturer in Europe. Replacing our current generation control, this program will deliver upgraded products for the main electronic unit on several construction equipment platforms, including wheel loaders, articulated haulers and excavators. The program is expected to launch in the first quarter of 2028 and is projected to generate total lifetime revenue of approximately $65 million with estimated peak annual revenue of approximately $15 million. This replacement business with a long-standing strategic customer reflects our ability to consistently deliver exceptional customer service and reliable high-performance solutions to our customers. As the commercial vehicles are moving towards software-defined vehicles architecture, we are prepared to enable this transformation with our scalable ECU platform products. We expect this award to continue to position us for future business wins. Stoneridge remains focused on consistently delivering innovative next-generation solutions that meet our customers' evolving needs. And with that, I will turn the call over to Bob for the financial update. Robert Hartman: Thank you, Natalia. Page 9 summarizes our key financial metrics for the first quarter of 2026 compared to the fourth quarter. Sales in the first quarter were $160.8 million, which were relatively consistent with our prior expectations. First quarter revenue grew by 9.2% compared with the fourth quarter driven by quarterly record sales for MirrorEye as well as higher sales in the Brazilian OEM business and off-highway end markets. This growth was partially offset by continued pressure in the commercial vehicle end markets. During the quarter, we also recognized $3.8 million of revenue from contract manufacturing related to the Mexico supply agreement associated with the sale of Control Devices. Driven by execution of key company initiatives, margins continued to expand in the first quarter. Continuous improvement in manufacturing performance, including company-wide efforts to reduce quality-related costs as well as favorable net tariff-related recoveries, contributed to the 400 basis point improvement in adjusted gross margin over the fourth quarter of last year. As a result of our continued efforts to remediate tariff-related costs incurred, we recognized a favorable net tariff benefit during the quarter resulting from both customer reimbursement agreements and IEEPA tariff refunds. First quarter adjusted operating income improved by 180 basis points relative to the fourth quarter of 2025. This was primarily driven by the gross margin improvement partially offset by higher SG&A due in part to the normalization of incentive-based compensation and higher D&D primarily driven by lower customer reimbursements. As Natalia mentioned earlier on the call, we remain committed to the $5 million structural cost reduction target this year. First quarter adjusted EBITDA was $2 million, which was above our previous expectations of approximately breakeven performance. Excluding nonoperating income and expenses primarily related to the foreign currency impact on intercompany balances, first quarter adjusted EBITDA expanded by 170 basis points compared with the fourth quarter. In summary, during the quarter, our top line and margin expansion demonstrated solid progress towards our long-term goals. Turning to Slide 10. As Natalia mentioned earlier on in the call, we are adjusting our full year 2026 guidance ranges to reflect the incremental impact of contract manufacturing revenue expected to be recognized this year from the Mexico supply agreement related to the sale of Control Devices. While the estimated benefit of this agreement was previously included in our adjusted EBITDA guidance as nonoperating other income net, we are updating full year revenue and operating margin guidance ranges to align with the revised revenue recognition treatment. As such, we are updating our full year revenue guidance by $20 million. This results in full year revenue guidance of $645 million to $670 million and adjusted operating margin of approximately breakeven to 0.5%. Adjusted EBITDA guidance remains unchanged at $20 million to $25 million resulting in 3.1% to 3.7% of sales. That said, our base guidance remains unchanged supported by our solid progress to start the year. While commercial vehicle production volume forecasts are continuing to improve, macroeconomic and geopolitical volatility continues to persist. We remain confident in our initial outlook and the meaningful progress we are making across our key initiatives. Furthermore, we also remain focused on driving organizational efficiencies and have already taken actions to reduce structural cost to better align our cost base with the company's current scale, which will position us to deliver sustainable long-term performance. As it relates to the cadence of our guidance, we are expecting second quarter revenue to be slightly above the first quarter. We are expecting EBITDA to continue to improve in the second half of the year aligning with expected revenue growth and the ramp-up of benefits from material and structural cost improvements. This expected cadence would result in improved EBITDA in the second half of the year compared with the first half. In summary, we are still expecting revenue growth, continuous improvement in our operating performance and structural cost reductions to drive EBITDA expansion in 2026. Page 11 summarizes our key financial metrics specific to Electronics. First quarter sales of $144.9 million were 8.7% higher than sales in the fourth quarter. Stoneridge-specific growth factors continued to offset production volume headwinds. More specifically, MirrorEye set another record for quarterly sales growing to $33 million or 11% relative to the fourth quarter of 2025. Furthermore, our sales in the European and North American off-highway end markets increased compared with the fourth quarter driven by stronger market adoption of our products. This growth was partially offset by lower Smart 2 tachograph sales in Europe as expected due to the completion of the regulatory retrofit campaign. Also included in first quarter sales was $3.8 million of contract manufacturing revenue from the Mexico supply agreement related to the sale of the Control Devices segment. First quarter adjusted operating margin expanded by approximately 260 basis points compared with the fourth quarter of the prior year driven by higher gross margin as a result of manufacturing performance improvements, reduced quality-related costs and the favorable impact of net tariff recoveries. The impact of contract manufacturing under the Mexico supply agreement, which began in the first quarter of 2026, was incremental to the fourth quarter. This was partially offset by higher SG&A driven by normalized incentive compensation and higher D&D costs primarily driven by lower customer reimbursements. We remain confident that Stoneridge-specific growth drivers, including MirrorEye, will drive market outperformance going forward. We will continue to focus our efforts on material cost and manufacturing performance including quality-related cost improvements to build a more efficient scalable operation that consistently delivers high quality products and results. Page 12 summarizes our key financial metrics specific to Stoneridge Brazil. Stoneridge Brazil's first quarter sales totaled $18.1 million, which represents a $1.6 million or 9.4% growth relative to the fourth quarter of last year. This increase was driven by higher local OEM sales, which expanded 54% compared with the fourth quarter. We remain focused on expanding our local OEM business to grow our presence in Brazil and unlock opportunities with our global customers. First quarter adjusted operating income of $1.7 million or 9.5% of sales improved by 140 basis points compared with fourth quarter 2025 primarily driven by fixed cost leverage on higher sales and lower SG&A costs due to lower incentive compensation. This was offset by unfavorable sales mix caused by a lower proportion of service fee revenue. We continue to shift our portfolio in Brazil to more closely align with our global growth initiatives and further expand our local OEM programs to support our global customers such as our second quarter launch of an audio product for a global automotive OEM. Brazil remains a critical engineering center where we utilize their local capabilities to cost effectively support our global business. Turning to Page 13. In the first quarter, net debt improved by approximately $42 million compared to the fourth quarter as the proceeds from the sale of Control Devices were used to pay down our debt balances. We remain focused on driving strong cash flow conversion through both disciplined working capital management and capital expenditure oversight. As a result of these efforts, we reduced inventory balances by approximately $16 million year-over-year while continuing to scrutinize capital expenditures. As disclosed last quarter, we completed an amendment of our current credit facility to extend the maturity date to July 1, 2027, to allow ample time to refinance. In April, we initiated this refinancing process to replace our existing credit facility with a capital structure that will more align with the long-term structure of the company and support future growth opportunities. We are targeting completion of the refinancing process by November of this year. Finally, based on our current EBITDA guidance and our amended covenant ratios, we expect to remain in compliance with all of our covenant ratios and have sufficient liquidity to navigate continuing volatility. With that, I will turn it over to Natalia to provide an update on our progress against our key priorities. Natalia Noblet: Thank you, Bob. Turning to Slide 14. To summarize. In the first quarter, we advanced our key strategic priorities driven by our focus on technology-led products, excellence in execution and the strong performance culture enabling meaningful progress across shareholder value of market outperformance, margin expansion and cash flow conversion. First, our focus on advanced technology solutions continues to drive market outperformance. Our top line growth exceeded our weighted average OEM end markets by more than 15% driven by execution in our core programs, including MirrorEye, the Brazilian OEM business and off-highway products. Furthermore, our strong customer intimacy and deep customer integration resulted in the new business awards I outlined earlier on the call. Driven by our robust backlog and differentiated innovative technologies, we expect to drive market outperformance of 2x to 3x over the long term. Second, driven by our focus on excellence in execution, we made meaningful progress towards improving margins and advancing long-term sustainable performance. We continue to reinforce strong consistent practices across our processes to enhance operational efficiency and product reliability, which in return have driven modestly lower quality-related costs compared to the fourth quarter primarily thanks to lower warranty-related costs. As a result, first quarter gross margin expanded by 400 basis points compared to the fourth quarter of prior year. In addition to margin performance, we are focused on cash flow conversion through disciplined working capital improvement and capital allocation. We continue to prioritize cash generation and a strong balance sheet through operating performance, inventory reduction and strict capital spending. As Bob already mentioned, we have reduced our year-over-year inventory balances through working capital initiatives and have significantly reduced our net debt compared to year-end through the use of proceeds of the sale of Control Devices. These actions have strengthened our balance sheet and strengthened our financial position going forward. As a team, we are also mobilized to mitigate arising inflationary pressures especially in semiconductor space and volume uncertainty due to the current market and geopolitical situation. By fostering a culture of accountability, creativity, collaboration and continuous improvement; we are focused to execute our plan for this and next years to come. And with that, I will turn the call over to questions. Operator: [Operator Instructions] As we have no questions, I would now like to turn the conference over back to Ms. Natalia Noblet for closing remarks. Natalia Noblet: Thank you for joining us for the call. I know your time is very important. And as always, we truly appreciate your willingness to engage us today. While the external environment remains dynamic with ongoing inflationary and geopolitical risks, we are focused on what we can control. We are executing with discipline, strengthening our operations and focusing to mitigate risks. We remain committed to delivering consistent performance, improving results and creating sustainable value for our shareholders. Thank you again and we look forward to updating you on our progress next quarter. Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Stoneridge, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stoneridge wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. 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. Stoneridge (SRI) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Q1 Performance Demonstrates Solid Progress Continued Strong Momentum with Program Awards for MirrorEyeﾮ and Electronic Controls NOVI, Mich., May 7, 2026 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2026. 2026 First Quarter Results Sales of $160.8 million Growth of 9.2% vs. Q4 2025 Gross profit of $35.0 million (21.7% of sales) Gross margin improvement of 400 basis points vs. adjusted gross margin of Q4 2025 Operating loss of $(9.0) million ((5.6)% of sales) Adjusted operating loss of $(3.0) million ((1.8)% of sales) Adjusted operating margin improvement of 180 basis points vs. Q4 2025 Loss from continuing operations of $(14.6) million ((9.1)% of sales) Adjusted loss from continuing operations of $(8.5) million ((5.3)% of sales) Net loss of $(27.0) million ((16.8)% of sales) Includes loss on disposal of sale of Control Devices of $9.2 million Adjusted net loss of $(20.9) million ((13.0)% of sales) Adjusted EBITDA of $2.0 million (1.3% of sales) 2026 Full-Year Guidance Updating guidance to reflect the incremental impact of the contract manufacturing revenue associated with the sale of Control Devices (the "Mexico Supply Agreement") Revenue guidance of $645 million - $670 million, an increase of $20 million vs. prior expectations Adjusted operating margin guidance of approximately break-even to 0.5%, an increase of approximately 50 basis points vs. prior expectations Reaffirming full-year adjusted EBITDA guidance of $20 million - $25 million Previous EBITDA guidance incorporated the full impact of the Mexico Supply Agreement as non-operating other income, net The exhibits attached hereto provide reconciliation details on normalizing adjustments of non-GAAP financial measures used in this press release. "The first quarter represents solid progress to start the year and an important step forward in executing our long-term strategy," said Natalia Noblet, president and chief executive officer. "Our results were driven by improved manufacturing performance, reduced quality-related costs, favorable net tariff recoveries, and cost control across the organization. MirrorEye continues to be a key growth driver, delivering record first quarter sales and accelerating momentum with global OEMs in the commercial vehicle end markets. We remain focused on driving earnings expansion as we capitalize on our portfolio of advanced technologies and drive cost efficiencies to improve profitability." Noblet continued, "Our priority is to deliver outstanding value to customers while collaborating with our partners to advance next-generation technologies for safer and more efficient transportation. Today, we are announcing two major business awards totaling over $135 million of estimated lifetime revenue, including an OEM-integrated MirrorEye program with our fourth North American OEM customer, and a next-generation electronic controls program for a global off-highway manufacturer. These awards highlight our ability to deliver reliable, high-performance solutions for our customers while continuing to build on our strong backlog of growth products." 2026 Quarter in Review Electronics first quarter sales of $144.9 million increased by $11.6 million, or 8.7%, relative to the fourth quarter of 2025. This was primarily driven by higher sales in the European and North American commercial vehicle end markets, including MirrorEye, incremental contract manufacturing revenue related to the sale of Control Devices, and higher off-highway sales. First quarter adjusted operating margin of 2.8% increased by 260 basis points compared to the fourth quarter of 2025, primarily driven by contribution on higher sales, lower direct material and overhead costs, including net tariff-related recoveries, partially offset by higher SG&A and D&D costs. Relative to the first quarter of 2025, Electronics first quarter sales increased by $4.3 million, or 3.1%. This was primarily driven by favorable foreign translation impact of $12.9 million, higher MirrorEye sales, incremental contract manufacturing revenue, and higher sales in the North American commercial vehicle and European off-highway end markets. These increases were partially offset by lower sales in the European commercial vehicle end market, including lower sales for the Smart 2 tachograph due to the end of a regulatory retrofit campaign. First quarter adjusted operating margin of 2.8% decreased by 210 basis points compared to the first quarter of 2025, primarily driven by higher material costs due to sales mix and the impact of foreign currency, offset by lower D&D and quality-related costs. Stoneridge Brazil first quarter sales of $18.1 million increased by $1.6 million, or 9.4%, relative to the fourth quarter of 2025, primarily driven by higher OEM sales in the Brazilian market and favorable foreign currency translation. First quarter adjusted operating income of $1.7 million, or 9.5% of sales, increased by $0.4 million, or 140 basis points, relative to the fourth quarter of 2025, primarily driven by fixed cost leverage on higher sales and lower SG&A costs, partially offset by unfavorable sales mix from a lower proportion of monitoring fees. Relative to the first quarter of 2025, Stoneridge Brazil first quarter sales increased by $3.7 million, or 25.9%. This increase was primarily driven by higher OEM sales in the Brazilian market and the foreign currency translation impact of approximately $1.6 million. First quarter adjusted operating income of $1.7 million, or 9.5% of sales, increased $1.1 million, or 550 basis points, compared to the first quarter of 2025 primarily due to contribution from higher sales and lower material costs. Cash and Debt Balances As of March 31, 2026, Stoneridge had cash and cash equivalents totaling $70.5 million and total debt of $156.5 million resulting in net debt of $85.9 million. Net debt improved by $42.0 million compared to December 31, 2025 primarily from the use of proceeds from the sale of Control Devices to pay down debt. Bob Hartman, interim chief financial officer, commented, "We remain focused on driving strong cash flow conversion through disciplined working capital management and capital expenditures. As part of this effort, we reduced inventory balances by approximately $16 million compared to the first quarter of prior year. Recently, we also initiated a process to refinance our existing credit facility to better align our capital structure with the current Company structure. The refinancing will provide financial flexibility as well as support our future growth initiatives. We expect to complete this process by November of this year." 2026 Outlook The Company is updating its full-year revenue and operating guidance ranges to reflect the incremental impact of contract manufacturing revenue from the Mexico Supply Agreement related to the sale of Control Devices. This agreement was previously guided as non-operating other income, net and therefore only included in our adjusted EBITDA guidance. The Company is reaffirming its previously provided full-year EBITDA guidance. Hartman commented, "We are first reaffirming our base full-year guidance, supported by the solid start to the year and continued execution across our business. While macroeconomic volatility and inflationary pressures persist, we remain confident in our initial outlook and the meaningful progress we are making across our key initiatives. We also remain focused on driving organizational efficiencies and have already taken decisive actions to reduce structural costs to better align our cost base with the Company's current scale, positioning us to deliver sustainable long-term performance." Hartman continued, "We are also updating our guidance to reflect contract manufacturing revenue from the Mexico Supply Agreement. While the estimated benefit of this agreement was previously included in our adjusted EBITDA guidance as non-operating other income, net, we are updating our full-year revenue guidance by $20 million to reflect the estimated impact. We are also updating our overall adjusted operating margin guidance by approximately 50 basis points." As a result, the Company is updating its full-year revenue guidance to $645 million to $670 million and adjusted operating margin guidance to approximately break-even to 0.5%. The Company is reaffirming its adjusted gross margin guidance to 21.5% to 22.0% and adjusted EBITDA guidance of $20 million to $25 million. Conference Call on the Web A live Internet broadcast of Stoneridge's conference call regarding 2026 first quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, May 7, 2026, at www.stoneridge.com, which will also offer a webcast replay. About Stoneridge, Inc. Stoneridge, Inc., headquartered in Novi, Michigan, is a global supplier of safe and efficient electronic systems and technologies. Our systems and products power vehicle intelligence, while enabling safety and security for on- and off-highway transportation sectors around the world. Additional information about Stoneridge can be found at www.stoneridge.com. Forward-Looking Statements Statements in this press release contain "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this press release and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) strategic focus following the sale of the Control Devices segment, (iii) acquisition strategy, (iv) investments and new product development, (v) growth opportunities related to awarded business, and (vi) operational expectations. Forward-looking statements may be identified by the words "will," "may," "should," "could," "would," "designed to," "believes," "plans," "projects," "intends," "expects," "estimates," "anticipates," "continue," and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors: the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output; fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary; global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries; tariffs specifically in countries where we have significant direct or indirect manufacturing or supply chain exposure and our ability to either mitigate the impact of tariffs or pass any incremental costs to our customers; our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions; the reduced purchases, loss, financial distress or bankruptcy of a major customer or supplier; the costs and timing of business realignment, facility closures or similar actions; a significant change in commercial, automotive, off-highway or agricultural vehicle production; competitive market conditions and resulting effects on sales and pricing; foreign currency fluctuations and our ability to manage those impacts; customer acceptance of new products; our ability to successfully launch/produce products for awarded business; adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, or our customers' products; our ability to protect our intellectual property and successfully defend against assertions made against us; liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers; labor disruptions at our facilities, or at any of our significant customers or suppliers; business disruptions due to natural disasters or other disasters outside of our control; the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving credit facility; capital availability or costs, including changes in interest rates; refinancing risk and access to capital markets and liquidity; the failure to achieve the successful integration of any acquired company or business; risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; as a result of the sale of the Company's Control Devices business in January 2026, the Company will operate as a two-segment business; the 2025 financial statements are not representative of the Company's future operating profile; and the items described in Part I, Item 1A ("Risk Factors") in the Company's most recent Form 10-K. The forward-looking statements contained herein represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, except as required by law, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise. Use of Non-GAAP Financial Information This press release contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2026 and 2025 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably estimate. In evaluating its business, the Company considers and uses free cash flow and net debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position and results of operations. In particular, management believes that adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net loss from continuing operations, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and net debt are useful measures in assessing the Company's financial performance by excluding certain items that are not indicative of the Company's core operating performance or that may obscure trends useful in evaluating the Company's continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company's results of operations and provide improved comparability between fiscal periods. Adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income loss from continuing operations, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and net debt should not be considered in isolation or as a substitute for gross profit, operating income (loss), income (loss) before tax, income tax expense (benefit), loss from continuing operations, net income (loss), EPS, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP. View original content to download multimedia:https://www.prnewswire.com/news-releases/stoneridge-reports-first-quarter-2026-results-302764885.html

MirrorEye was the growth engine: MirrorEye sales topped about $111 million in 2025 (roughly 70% YoY growth, OEM revenue +84%) and management expects it to grow by roughly $50 million to at least $160 million in 2026, driven by higher take rates and new Daimler/Volvo programs. Portfolio focus and cash/organizational improvements: Stoneridge completed the sale of Control Devices for a $59 million base price to concentrate on higher‑return businesses, generated about $19 million of adjusted free cash flow in 2025, and achieved material and quality cost improvements that helped protect margins despite lower volumes. Conservative 2026 guidance and near‑term headwinds: Management is guiding to roughly 4.2% revenue growth at the midpoint and $22.5 million midpoint EBITDA (Q1 roughly break‑even), while noting risks from tariffs, FX, incremental Q4 quality costs (~$3.3M), and an expected ~$12M decline in aftermarket Smart 2 tachograph sales in 2026. Interested in Stoneridge, Inc.? Here are five stocks we like better. Stoneridge (NYSE:SRI) executives told investors the company navigated a difficult 2025 operating environment by leaning on growth in its MirrorEye camera-monitor platform, pursuing cost and quality improvements, and generating positive free cash flow, even as commercial vehicle production declined meaningfully versus expectations. President and CEO Jim Zizelman said Stoneridge’s “focused growth strategy,” continuous improvement efforts on material and quality-related costs, and structural cost controls helped the company “successfully navigate another year marked by very challenging macroeconomic conditions.” He highlighted that the company outperformed its weighted average OEM end markets by 150 basis points in 2025, despite lower production volumes across the transportation industry. → Alphabet’s Pullback May Be Opening a New Entry Point A key driver was MirrorEye, which Zizelman said delivered sales of over $110 million, representing about 70% growth versus the prior year. He later added that MirrorEye OEM revenue grew 84% year-over-year as European take rates increased and new programs launched with Daimler and Volvo in North America. Chief Financial Officer Matthew Horvath provided additional detail, stating that electronics segment MirrorEye sales totaled $111 million in 2025, up $45 million, or 69%, from 2024. He also said MirrorEye bus revenue grew by approximately 34% on strong market feedback for the latest-generation camera systems. → D-Wave Keeps Delivering Good News—So Why Is It Falling? Zizelman said Stoneridge announced approximately $830 million in estimated lifetime revenue from new business awards in 2025 spanning electronics and Stoneridge Brazil. He described this as including the largest business award in company history—an extension of a global OEM MirrorEye program—as well as the largest OEM program award in Stoneridge Brazil’s history, plus additional programs tied to secondary displays, the Smart 2 tachograph, and other electronic control products. The company also emphasized its shift in focus following the sale of its Control Devices segment. Zizelman noted Stoneridge completed the sale for a base purchase price of $59 million, calling it an important milestone that would allow the company to concentrate on “highest growth, highest return businesses,” reduce organizational complexity, and use proceeds to pay down debt and reduce interest expense. → Tesla’s Big China Sales Spike Didn’t Excite Investors—Here’s Why Incoming CEO Natalia Noblet said the divestiture allows Stoneridge to focus resources and maintain its global footprint across Europe, North America, and Brazil, supported by engineering resources in those regions and partnerships in India. She framed the company’s current portfolio around industry trends toward automation and connected vehicle technologies, with offerings in vision and safety (including MirrorEye), vehicle intelligence and electronic controls (including driver information systems and secondary displays), and connectivity products (including telematics, tachographs, and digital services). While management described progress in 2025, Zizelman acknowledged fourth-quarter results “did underperform” prior expectations. He said the (now-divested) Control Devices segment underperformed by about $2 million due primarily to foreign exchange impacts and incremental tariffs. He added that tariffs affected the remaining business by another $1.2 million in the quarter versus expectations. Zizelman said the company expects to recover a “significant portion, if not all” of incremental tariff costs, but noted timing differences between when tariffs are incurred and when recoveries are realized. He also said the fourth quarter included approximately $3.3 million of incremental quality-related costs versus expectations, tied to legacy warranty issues and settlements with key customers. He characterized those settlements as allowing Stoneridge to move beyond historical issues and focus on stronger relationships and future growth, while reinforcing the need to improve quality earlier in product development. On profitability, Zizelman said adjusted operating margin was pressured by the decline in sales and macro headwinds including tariff impacts and reduced production at certain customers. He said Stoneridge partially mitigated the impact through improved material costs (an 80-basis-point improvement year-over-year) and a $6.6 million reduction in quality-related costs, which he said contributed another 50 basis points to operating performance. Excluding other non-operating expense of $3.6 million—primarily adverse foreign currency impacts—Zizelman said full-year adjusted EBITDA was $28.6 million, or 3.3% of sales, down 60 basis points versus the prior year. He also pointed to a decremental contribution margin of 14.2% versus a historical average of 25%–30% as evidence of operational actions that helped limit the downside from lower volumes. Management repeatedly highlighted cash performance. Zizelman said adjusted free cash flow was approximately $19 million in 2025, driven by an $18.7 million improvement in inventory balances. Interim CFO Robert Hartman outlined management’s view that end markets are expected to begin recovering in 2026, citing third-party production forecasts indicating North American OEM production could improve 9.8% and European production 6.6%, for expected weighted average end market growth of 7.1% in 2026. However, he said Stoneridge is taking a “relatively conservative approach” to revenue expectations by assuming OEM end markets remain flat, citing geopolitical volatility. Within that framework, Hartman said the company expects MirrorEye to grow by approximately $50 million to at least $160 million in 2026—about 45% growth—driven by maturing OEM programs, improving take rates in Europe and North America, and customer marketing efforts highlighting safety, fuel economy, and driver comfort benefits. He also said the company expects significant growth in MirrorEye bus programs due to strong feedback on the latest camera system. Hartman noted a headwind in the Smart 2 tachograph business: after two strong years of aftermarket sales tied to regulatory requirements, Stoneridge expects a decline of roughly $12 million in 2026 versus 2025, while OEM Smart 2 programs are expected to be flat year-over-year. Based on midpoint guidance, Hartman said Stoneridge expects revenue growth of approximately 4.2% in 2026, primarily from MirrorEye growth. He also said the company expects structural cost reductions to provide at least $5 million of benefit in 2026, though incentive compensation and wage increases are expected to create a $6.7 million year-over-year headwind. The company’s midpoint 2026 EBITDA guidance is $22.5 million, with management expecting approximately break-even EBITDA in the first quarter as volumes start low, followed by improvement through the year, particularly in the second half. The call also included significant leadership updates. Zizelman reiterated he will remain CEO through March 31, with Noblet becoming president and CEO effective April 1. Zizelman said he will stay on the board and serve as a strategic advisor through May 20, when his retirement becomes effective. On the finance side, Horvath said this was his final earnings call and that Chief Accounting Officer Robert Hartman will serve as interim CFO upon Horvath’s resignation effective March 31. Looking beyond 2026, Noblet discussed medium- and long-term targets. She said the company currently estimates revenue of at least $750 million in 2027 and expects revenue of $850 million to $1 billion by 2030, driven by market recovery and continued expansion of MirrorEye and other technology offerings. She also discussed expectations for EBITDA improvement tied to revenue growth and execution on cost, quality, and structural initiatives. Stoneridge, Inc (NYSE: SRI) is a global developer and manufacturer of highly engineered electrical and electronic components for the automotive and commercial vehicle markets. The company's product offerings span a range of safety, convenience and control systems, delivering tailored solutions that help original equipment manufacturers (OEMs) meet increasingly stringent regulatory and performance requirements. Among Stoneridge's core products are rearview and side-view mirror systems, camera-based advanced driver assistance systems (ADAS) and interior and exterior lighting solutions. The article "Stoneridge Q4 Earnings Call Highlights" was originally published by MarketBeat.