0001043337-26-000023
SEC filingStoneridge, Inc. (SRI) reported FY 2025 net sales of $861.3 million, down 5.2% from $908.3 million in 2024, driven by lower production volumes in commercial vehicle, automotive, and off-highway markets across Control Devices (-6.2% to $274.5M), Electronics (-7.0% to $526.4M), and partially offset by Stoneridge Brazil (+21.6% to $60.4M). Gross margin contracted to 19.9% from 20.8% due to lower sales leverage, higher tariffs, and business realignment costs, leading to an operating loss of $38.6 million versus near-breakeven in 2024. Net loss widened to $102.8 million or -$4 per share from -$16.5 million or -$0.60 per share, impacted by $21.6 million impairment of Control Devices assets, $47.4 million tax provision including U.S. valuation allowance, and unfavorable FX. Operating cash flow remained positive at $34.0 million, supported by working capital reductions including $30.8 million inventory decrease, while free cash flow was approximately $12.1 million after $21.9 million capex. Balance sheet shows $66.3 million cash, $180.9 million revolving credit debt, and $179.8 million equity. Post-January 2026 Control Devices sale, focus shifts to Electronics growth via MirrorEye and Stoneridge Brazil OEM expansion, targeting outperformance amid 6-10% commercial vehicle production growth forecasts.
Stoneridge, Inc. posted FY 2025 net sales of $861.3M, a 5.2% YoY decline from $908.3M, reflecting lower customer production in commercial vehicle (51% of sales), automotive (29%), and off-highway (13%) markets. Operating loss expanded to -$38.6M from -$0.4M, driven by $21.6M Control Devices impairment, higher SG&A ($125.6M vs $117.5M), and gross margin compression to 19.9% from 20.8% amid lower volumes and tariffs. Net loss surged to -$102.8M or -$4.00 diluted EPS from -$16.5M or -$0.60, exacerbated by $47.4M tax provision (including U.S. deferred tax valuation allowance) versus $2.9M prior. Cash from operations held at $34.0M despite larger loss, aided by inventory reduction.
Segment sales: Control Devices $274.5M (-6.2% YoY) due to North American automotive end-of-life and China declines; Electronics $526.4M (-7.0%) from North American/European commercial vehicle softness, offset by MirrorEye ramps and European off-highway gains; Stoneridge Brazil $60.4M (+21.6%) on OEM growth despite FX headwinds. Geographically: North America 45.5% ($392.3M, -12.3%), South America 7.0% (+21.6%), Europe/Other 47.4% (-0.7%), with $20.7M favorable FX translation. Top customers Volvo (18%), PACCAR (15%), Traton (11%).
Gross margin fell to 19.9% from 20.8% on lower fixed cost leverage, higher tariffs (partially reimbursed), and $3.6M realignment costs; material costs improved to 56.8% of sales. Operating margin -4.5% reflected impairments, $62.5M D&D (down YoY), and SG&A rise from strategic review costs. Segment margins pressured by volumes, partially mitigated by material savings and lower quality costs.
Operating cash $34.0M (down from $47.7M) via $30.8M inventory cut, -$17.3M receivables use, offset by net loss. Investing -$21.8M (capex $21.9M). Financing -$25.3M (net revolver paydown). Ending cash $66.3M (net change -$5.6M). Total assets $551.2M, current ratio solid with $361.9M assets vs $157.6M liabilities; debt $180.9M revolver (long-term post-amendment), equity $179.8M.
Post-Control Devices sale (Jan 2026), focus on Electronics (MirrorEye growth, connected trailer) and Stoneridge Brazil OEM expansion amid 6.0% Europe/9.8% North America commercial vehicle forecasts. D&D to rise for next-gen products; cost actions target margins. Risks: tariffs, FX, customer concentrations, covenant compliance (amended to 2027), cyclical markets, supply chain.