#United States #Novi #Q2 2025 #Stoneridge #MirrorEye

Stoneridge Reports Second Quarter 2025 Results

Stoneridge, Inc. has announced impressive financial results for the second quarter of 2025, showcasing significant sales milestones and strategic advancements. With a total revenue of $228 million and a gross profit margin of 21.5%, the company continues to innovate and expand amid intense market challenges.

Highlights of the Report

In Q2, Stoneridge's MirrorEye® system set another quarterly sales record, driven by a notable increase of 21% compared to the previous quarter. This remarkable growth is attributed primarily to new OEM programs launched in North America during the first half of the year. Reflecting on the performance, CEO Jim Zizelman noted, “Our momentum is a testament to our focus on managing factors within our control.”

Additionally, Stoneridge announced the largest business award in its history for the global MirrorEye program, bringing an estimated lifetime revenue of approximately $535 million. This contract is expected to peak at an annual revenue of around $140 million. The company also secured a record OEM business award valued at approximately $85 million in Brazil, cementing its status as a reliable partner in the region.

Financial Performance Details

Despite the encouraging revenue figures, Stoneridge faced challenges with an operating loss of $2.6 million and a net loss of $9.4 million for the quarter. Adjusted operating income stood at $0.4 million, and adjusted EBITDA reached $4.6 million, which reflects non-operating foreign currency expenses. Excluding these costs, the adjusted EBITDA would have been $8.1 million, showcasing the business's potential profitability.

The company’s strategic adjustments, including a successful global cash repatriation program, contributed to a substantial debt reduction of $38.8 million, placing the total debt at $164.4 million. CFO Matt Horvath emphasized that liquidity remains strong, with a focus on cash management and attractive debt reductions.

Strategic Initiatives and Future Outlook

In light of ongoing industry changes, Stoneridge is conducting a review of strategic alternatives for its Control Devices business segment. This realignment aims to enhance focus and resources for its growth endeavors, ensuring that each division can reach its full potential.

Zizelman reiterated, “With record business wins in our core segments, we are positioned to maximize shareholder value and drive sustainable success.” The future looks promising as the company maintains its full-year revenue guidance of $860 million to $890 million, despite market volatilities. Adjusted EBITDA for 2025 has been updated, with an expectation to achieve $34 million to $38 million as operational efficiency continues to improve.

Furthermore, Stoneridge anticipates favorable foreign currency fluctuations to help offset production volume challenges, particularly in the North American commercial vehicle market.

Conclusion

Stoneridge's Q2 2025 results not only highlight its resilience and growth trajectory but also exemplify its commitment to innovation in the automotive technology sector. As it navigates through challenges, the momentum built from its strategic initiatives positions the company for long-term success. Investors and stakeholders alike can anticipate continued developments as Stoneridge pursues its vision for future growth and profitability.