#United States #New York #Automotive Parts #Standard Motor Products #Q1 2025

Standard Motor Products, Inc. Q1 2025 Results Overview

On April 30, 2025, Standard Motor Products, Inc. (NYSE: SMP), a recognized leader in the automotive parts manufacturing sector, delivered robust financial results for the first quarter of 2025. The report highlighted a significant increase in net sales, reaching $413.4 million, up an impressive 24.7% compared to $331.4 million during the same quarter in the previous year.

The company's earnings from continuing operations also saw a notable rise. For Q1 2025, earnings stood at $13.7 million, translating to $0.61 per diluted share, compared to $9.9 million or $0.44 per diluted share recorded in Q1 2024. Notably, when excluding non-operational fluctuations, adjusted earnings soared to $0.81 per diluted share, marking an astounding 80% growth year-on-year.

Eric Sills, the Chairman and CEO of Standard Motor Products, expressed satisfaction with the company's performance, stating, "We are very pleased with the first quarter results which exceeded our expectations. Sales for the quarter were up nearly 25%, and excluding the impact of the recent acquisition of Nissens Automotive, sales were up nearly 5%." This solid performance was attributed to strong demand across various market segments, particularly in North America, which showcased the company’s ability to withstand economic fluctuations.

The company's segments performed variably:

• - Vehicle Control: Sales advanced by 3.7%, sustaining a positive trend seen from the previous year.
• - Temperature Control: This segment excelled with a substantial 24.1% increase in sales, fueled by robust pre-season orders and consumer sell-through.
• - Engineered Solutions: This segment experienced an 11.2% decline due to weakening in specific end markets. However, an improved customer and product mix led to increased profitability.
• - Nissens Automotive: The newly acquired segment contributed $66.2 million in sales, showcasing an adjusted EBITDA margin of 17.3%, aligning with long-term growth strategies.

From a profitability standpoint, adjusted EBITDA surged to $42.8 million, a significant leap from last year's $22.9 million. This increase was credited to both organic performance improvements and contributions from Nissens. Adjusted EBITDA margin rose to 10.4%, reflecting efficient cost management and optimization strategies put in place by the company.

The company also acknowledged the potential risks associated with recent tariffs, assessing their impact while leveraging their diverse global manufacturing base to mitigate these challenges. Significantly, over half of their U.S. sales come from domestically manufactured products that comply with USMCA agreements, rendering them largely tariff-exempt.

Looking ahead, Standard Motor Products affirmed its growth forecast for the year at mid-teens, while expecting adjusted EBITDA margins to range from 10% to 11%. It is essential to note that these projections exclude tariff impacts due to the current climate of uncertainty.

In a positive move for shareholders, the Board of Directors declared a quarterly dividend of 31 cents per share, scheduled for payment on June 2, 2025.

In conclusion, Sills remarked, "We are excited about the strong start to 2025. The underlying fundamentals of the aftermarket have proven to be resilient, particularly in challenging economic times. Our strategies are poised to enhance shareholder value and awareness while we navigate the potential uncertainties ahead."

Standard Motor Products' financial outlook, buoyed by technological advancements and strategic integrations, continues to position the company favorably within the automotive parts industry landscape. Investors and stakeholders eagerly anticipate further developments as the integration of Nissens progresses, fostering long-term growth and operational synergy.