#USA #New York #Automotive Parts #Standard Motor Products #Nissens Automotive

Standard Motor Products, Inc. Announces Second Quarter Results

Standard Motor Products, Inc. (NYSE: SMP), a key player in the automotive parts industry, has recently disclosed its financial results for the second quarter of 2025, showcasing exceptional performance and strategic growth. The company reported net sales of $493.9 million, which represents a remarkable 26.7% increase compared to $389.8 million in the same quarter last year. Additionally, the company has raised its full-year sales growth guidance amid ongoing success.

Financial Highlights

During the second quarter, Standard Motor Products achieved earnings from continuing operations of $26.3 million or $1.17 per diluted share, up from $18.0 million or $0.81 per diluted share in Q2 2024. Excluding certain non-operational gains and losses, the adjusted earnings from continuing operations increased to $28.9 million or $1.29 per diluted share, marking a 31.6% rise from the previous year's $21.7 million or $0.98.

The company's consolidated total sales for the first half of 2025 reached $907.2 million, a notable increase from $721.2 million in the same timeframe last year. Standard Motor Products' ability to adapt and thrive amidst challenges reflects its strong market position and robust product offerings.

Strong Demand Across Segments

The North American aftermarket segments experienced steady growth, with Vehicle Control sales rising by nearly 7% and Temperature Control sales increasing by 5.5%. Despite challenging comparisons to last year's impressive growth, the company expects continued upward momentum in sales as early pre-season orders prepare customers for upcoming demand.

The integration of Nissens Automotive, acquired eight months prior, has proven beneficial, contributing $90.5 million in sales during the Q2 2025. Nissens maintained an adjusted EBITDA margin of 18.0%, exceeding internal expectations, demonstrating strong performance in its markets.

Strategic Investments and Expansion

In addition to impressive financials, Standard Motor Products has opened a new state-of-the-art distribution center in Shawnee, Kansas, aimed at enhancing distribution efficiency across the United States. This facility increases the company's total distribution footprint and is a crucial aspect of their strategy to better serve customer needs as demand continues to grow.

The company’s leaders are optimistic about achieving significant cost reduction synergies from the Nissens acquisition, forecasting between $8-12 million within 24 months. This indicates a focus not only on growth but also on operational efficiencies.

Navigating Challenges and Future Outlook

Standard Motor Products has sidestepped potential pitfalls associated with tariffs, leveraging its diverse global footprint for a competitive edge. More than half of its U.S. sales derive from North American-manufactured, USMCA-compliant products. The company has implemented effective strategies for mitigating tariff impacts while maintaining profitability.

James Sills, Chairman and CEO, expressed satisfaction with the company's trajectory, noting, “Our North American aftermarket segments reported the strongest first half results in our history.” His insights underline a promising outlook for continued growth driven by strong market demand and strategic initiatives.

In conclusion, with its impressive second-quarter results, new product offerings, strategic acquisitions, and operational improvements, Standard Motor Products, Inc. is well-positioned for continued success in the dynamic automotive parts sector.

Upcoming Conference Call

Standard Motor Products will host a conference call at 11:00 AM ET on August 5, 2025, to discuss the results in greater detail. Investors can participate through the company’s website or by dialing in for an interactive session.