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Stoneridge, Inc. Reports First Quarter 2025 Financial Results

Stoneridge, Inc., a leading global supplier of electronic systems, recently disclosed its financial results for the first quarter of 2025. The report highlights a robust performance, indicating both growth and operational improvements amidst fluctuating market dynamics.

Financial Highlights

For the first quarter ended March 31, 2025, Stoneridge achieved total sales of $217.9 million, with a gross profit of $46.3 million, which represents 21.2% of total sales. Notably, the adjusted gross profit reached $47.7 million, equating to 21.9% of sales. However, there was an operating loss of approximately $3.2 million (1.5% of sales), leading to an adjusted operating loss of $0.4 million. The net loss stood at $7.2 million, while the adjusted net loss was approximately $5.1 million.

Despite these losses, adjusted EBITDA managed to reach $7.6 million, representing 3.5% of total sales, indicating a year-on-year growth trajectory in operational performance. According to Jim Zizelman, CEO of Stoneridge, the quarter reflected significant margin expansions due to improved materials cost management and reduced quality-related expenses, resulting in better operating margins across all segments.

Segment Performance

Electronics

The Electronics segment recorded sales of $140.5 million, a dip of 6.0% when compared to the previous quarter. This was primarily due to decreased production volumes within the commercial vehicle market. However, the launch of the MirrorEye technology and strong demand for the SMART 2 tachograph have been positive counterbalances, driving sales in this segment. The adjusted operating margin for Electronics improved by 130 basis points, reaching 4.9%, facilitated by a reduction in quality costs and a streamlined approach to materials.

Control Devices

Conversely, the Control Devices segment saw a sales increase to $69.9 million, marking a 10.6% increase from the fourth quarter of 2024. This surge was driven by heightened production volumes for North American passenger vehicle clients. The adjusted operating margin for this segment rose significantly to 2.2%, up by 470 basis points, reflecting enhanced sales and lower departmental costs.

Stoneridge Brazil

Stoneridge's operations in Brazil also performed well, achieving sales of $14.4 million, a 15.9% increase, primarily propelled by improved OEM sales. The segment's operating income rose to $0.6 million, improving profitability in the region.

Future Guidance

Looking ahead, Stoneridge remains committed to maintaining its previously announced full-year guidance for 2025, expecting sales to range between $860 million to $890 million. The strategic focus will continue to be on operational excellence by maintaining cost containment strategies, expanding product lines like MirrorEye, and capitalizing on market opportunities. Matt Horvath, CFO, emphasized the importance of navigating market volatility and maintaining compliance with financial covenants, indicating an optimistic outlook despite external pressures.

In summary, Stoneridge, Inc.'s Q1 2025 performance reflects a resilience even amidst challenges, marking solid financial management and strategic growth initiatives that are expected to pave the way for a successful year ahead.