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Stoneridge Reports Third Quarter Results for 2025

Stoneridge, Inc. has announced its financial results for the third quarter ending September 30, 2025. The company reported sales reaching $210.3 million, demonstrating resilience amid challenging market conditions, particularly in North America. Despite headwinds in customer production volume and economic uncertainty within the commercial vehicle sector, Stoneridge continues to make significant strides in key operational areas.

Financial Highlights

The third quarter closed with a gross profit of $42.8 million, accounting for 20.3% of overall sales. Although the operating loss was $3.3 million, up from a year prior, adjusted operating income stood at $2.4 million. In terms of net income, Stoneridge posted a loss of $9.4 million, translating to $(0.34) loss per share. However, adjusted net loss was restricted to $5.1 million ($(0.18) adjusted loss per share).

The adjusted EBITDA was reported at $9.3 million, equating to 4.4% of sales. Excluding the non-operating foreign currency expense of $2.4 million, adjusted EBITDA improved to $11.7 million, or 5.6% of sales.

Growth Initiatives

Stoneridge’s President and CEO, Jim Zizelman, emphasized the ongoing development and expansion of the company’s product lines, particularly highlighting the impressive 78% year-to-date growth in sales for the MirrorEye system. This new technology enhances visibility for drivers of commercial vehicles, correlating positively with safety and operational efficiency. The company has also secured new product program awards totaling over $185 million in estimated lifetime revenue, including a notable MirrorEye OEM program with an additional truck manufacturer set to launch in 2028, projected to yield $55 million in revenue.

In Europe, the company continues to register robust take rates for the MirrorEye systems, which are becoming standard in various heavy-duty truck models. North American OEMs also express favorable feedback regarding their systems, boosting expectations for improved market penetration moving forward.

Challenges and Future Outlook

Despite these advancements, Stoneridge faces ongoing challenges, including reduced production volumes primarily in the North American commercial vehicle sector, leading to updated full-year guidance that now anticipates total sales of between $860 million and $870 million. As economic dynamics evolve, the company remains vigilant and adaptable, focusing on managing its capital efficiently and optimizing shareholder value.

Stoneridge has updated its adjusted EBITDA guidance to a range of $30 million to $32 million, reflecting the expected impacts from the foreign currency expense and reduced customer production volumes. The company is keen on developing and implementing strategies to bolster cash flow, including careful management of inventory and capital expenditures.

Financial Stability and Debt Management

As of September 30, 2025, Stoneridge's cash and cash equivalents totaled $54.0 million, with total debt at $171.1 million. The company is committed to maintaining compliance with its credit facility covenants, including a leverage ratio intended not to exceed 4.50x. The strategic review of the Control Devices division is ongoing, indicating potential divestitures that could further enhance the company’s financial flexibility.

As growth opportunities abound despite market challenges, Stoneridge, Inc. is poised to harness its technology and customer relationships effectively, aiming for sustained profitability and expansion in the competitive landscape of vehicle electronics and technology in the years to come.

For further details regarding its financial performance, including interactive webinars and updates, investors can visit Stoneridge’s investor relations page.