Stoneridge Reports First Quarter 2025 Results

Rhea-AI Summary

Stoneridge reported its Q1 2025 financial results with sales of $217.9 million and an adjusted EBITDA of $7.6 million (3.5% of sales). The company experienced notable quarter-to-quarter margin improvements across all segments, with MirrorEye and SMART 2 Tachograph achieving record quarterly sales.

Key financial metrics include:

• Gross profit: $46.3 million (21.2% of sales)
• Operating loss: $(3.2) million
• Net loss: $(7.2) million
• Loss per share: $(0.26)

The company maintained its full-year 2025 guidance, projecting sales of $860-890 million and adjusted EBITDA of $38-42 million. Despite tariff uncertainties, Stoneridge reported positive free cash flow of $4.9 million and implemented strategic measures to mitigate potential tariff impacts. The company's debt position showed total debt of $203.2 million against cash and equivalents of $79.1 million.

Positive

• Record quarterly sales for MirrorEye (24% increase) and SMART 2 tachograph products
• Gross margin improved by 210 basis points with material cost improvements
• Positive free cash flow of $4.9M, up $1.5M year-over-year
• 91% of Mexico-manufactured products are USMCA certified, reducing tariff exposure
• Quarter-to-quarter operating margin improved across all segments
• Quality-related costs reduced by $2.5M compared to Q4 2024

Negative

• Net loss of $7.2M (-3.3% of sales)
• Operating loss of $3.2M (-1.5% of sales)
• Electronics segment sales decreased 10% year-over-year
• Control Devices sales decreased 10.4% year-over-year
• High leverage ratio at 3.97x (though within compliance)
• Total debt of $203.2M against $79.1M cash position

Insights

Financial Analyst

Stoneridge shows operational improvement despite Q1 losses; maintains 2025 guidance amid tariff concerns and sequential margin growth.

Stoneridge reported $217.9 million in Q1 2025 revenue with a net loss of $(7.2) million, but demonstrated significant sequential margin improvements across all business segments. The company achieved a 210% basis point improvement in adjusted gross margin through material cost reductions and lowered quality-related costs by $2.5 million compared to Q4 2024.

Despite ongoing challenges, Stoneridge generated positive free cash flow of $4.9 million - an increase of $1.5 million year-over-year - highlighting effective inventory management. Two flagship products, MirrorEye and SMART 2 tachograph, achieved record quarterly sales, with MirrorEye increasing 24% as OEM programs ramped up.

The balance sheet shows $79.1 million in cash against $203.2 million in total debt. The company's adjusted net debt to EBITDA ratio stands at 3.97x versus a 6.00x covenant requirement, providing sufficient headroom while management targets a more conservative 2.0-2.5x ratio by year-end.

Management is navigating potential tariff impacts proactively, noting that 91% of products manufactured in Mexico and sold to U.S. customers are USMCA-certified and currently not subject to tariffs. The company has secured price increases with certain customers to offset potential tariff costs.

Despite market uncertainties, Stoneridge maintained its full-year 2025 guidance ranges: sales of $860-890 million, adjusted gross margin of 22.0-22.5%, adjusted operating margin of 0.75-1.25%, adjusted EBITDA of $38-42 million, and free cash flow of $25-30 million.

Supply Chain Strategist

Stoneridge's tariff mitigation strategy shows supply chain resilience; Mexico manufacturing with 91% USMCA certification provides competitive advantage.

Stoneridge's Q1 results reveal sophisticated supply chain risk management amid increasing tariff concerns. Their Mexico-based manufacturing facility in Juarez represents a strategic advantage, with 91% of products sold to U.S. customers already USMCA-certified and exempt from current tariffs. This certification buffer provides significant protection against trade disruptions that competitors with different manufacturing footprints might face.

The company has implemented multi-layered mitigation tactics beyond just certification. Management disclosed successful price increase negotiations with customers for products affected by tariffs, showing supply chain leverage and strong customer relationships. Their strategic sourcing approach appears to have addressed most component purchase complexities, demonstrating effective supplier management despite global uncertainties.

Material cost improvements contributed significantly to the 210% basis point gross margin expansion compared to Q4, highlighting effective procurement strategies and supplier negotiations. The $2.5 million reduction in quality-related costs suggests improved supplier quality management processes.

Inventory optimization efforts yielded positive free cash flow of $4.9 million, indicating supply chain efficiency improvements regardless of sales fluctuations. The company's ability to generate cash while maintaining appropriate inventory levels demonstrates supply chain maturity in balancing service levels with working capital requirements.

While acknowledging potential macroeconomic disruptions, Stoneridge's supply chain appears well-positioned to navigate trade complexities through its strategic manufacturing footprint, customer relationship leverage, and procurement excellence.

Strong Quarter-to-Quarter Margin Progression

MirrorEye® and SMART 2 Tachograph Set Quarterly Sales Records

Maintaining Previously Provided Full-Year 2025 Guidance

2025 First Quarter Results

• Sales of $217.9 million
• Gross profit of $46.3 million (21.2% of sales)
• Adjusted gross profit of $47.7 million (21.9% of sales)
• Operating loss of $(3.2) million ((1.5)% of sales)
• Adjusted operating loss of $(0.4) million ((0.2)% of sales)
• Net loss of $(7.2) million ((3.3)% of sales)
• Adjusted net loss of $(5.1) million ((2.4)% of sales)
• Adjusted EBITDA of $7.6 million (3.5% of sales)

 2025 Full-Year Guidance

• Maintaining previously provided full-year 2025 guidance ranges

NOVI, Mich., April 30, 2025 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2025. 

The Company announced first quarter sales of $217.9 million, gross profit of $46.3 million (21.2% of sales) and adjusted gross profit of $47.7 million (21.9% of sales). Operating loss was $(3.2) million ((1.5)% of sales) while adjusted operating loss was $(0.4) million ((0.2)% of sales). Net loss was $(7.2) million and adjusted net loss was $(5.1) million. Loss per share (EPS) was $(0.26) and adjusted EPS was $(0.19). Adjusted EBITDA was $7.6 million (3.5% of sales).

The exhibits attached hereto provide reconciliation detail on normalizing adjustments of non-GAAP financial measures used in this press release.

Jim Zizelman, president and chief executive officer, commented, "During the first quarter, we drove significant margin expansion by continuing to focus on material cost improvement and reduced quality-related costs, resulting in quarter-to-quarter operating margin performance improvement in all of our segments. Overall adjusted gross margin improved by 210 basis points driven by material cost improvement and a $2.5 million reduction in quality-related costs relative to the fourth quarter of last year. First quarter adjusted EBITDA was $7.6 million, an improvement of $1.6 million over the fourth quarter. Finally, our focus on cash and inventory management drove positive free cash flow of approximately $4.9 million, an increase of approximately $1.5 million versus the first quarter of last year. Sales remained flat relative to the fourth quarter of last year, as expected, highlighted by record quarterly sales for both MirrorEye and SMART 2, including a 24% increase in MirrorEye sales as previously launched OEM programs continued to ramp-up, along with strong sales in the global bus market." 

Zizelman concluded, "We continue to monitor potential direct and indirect impacts related to tariffs. Although we saw very little direct impact of tariffs in the first quarter, we continued to implement mitigation strategies to further offset potential tariffs that have been discussed or are scheduled to be implemented. Our primary tariff exposure is related to products manufactured in our Juarez, Mexico facility and sold to U.S. customers receiving the product for U.S. consumption. Approximately 91% of these product sales are USMCA certified and are currently not subject to tariffs. Additionally, we have successfully addressed most of the complexities in component purchases through the strength of our current supply chain structure. We have and will continue to implement mitigation activities for existing and proposed tariffs through strategic supply chain sourcing and customer pricing strategies to mitigate any cost increases that may occur. For example, we have already secured, or are well down the path of securing, price increases with certain customers that have products that are impacted by tariffs. That said, we recognize that there is increased uncertainty in consumer demand and production volumes caused by the implementation of the tariffs. We will continue to monitor shifts in macroeconomic policies and the impacts on our business to ensure that we act quickly to offset any incremental costs, as we have done historically."

First Quarter in Review

Electronics first quarter sales of $140.5 million decreased by 6.0% relative to the fourth quarter of 2024. This was primarily driven by lower production volumes in the commercial vehicle end market and lower off-highway sales, offset by the continued growth of MirrorEye and continued strong demand for the Company's next generation tachograph, the SMART 2. First quarter adjusted operating margin of 4.9% increased by 130 basis points relative to the fourth quarter of 2024, due in part to lower quality-related costs.

Control Devices first quarter sales of $69.9 million increased by 10.6% relative to the fourth quarter of 2024 driven by higher production volumes for the Company's North American passenger vehicle customers. First quarter adjusted operating margin of 2.2% increased by 470 basis points relative to the fourth quarter of 2024, primarily due to contribution on higher sales as well as lower D&D and reduced quality-related costs.

Stoneridge Brazil first quarter sales of $14.4 million increased by $2.0 million, or 15.9%, relative to the fourth quarter of 2024, driven by higher OEM sales. First quarter operating income of $0.6 million increased by approximately $0.5 million relative to the fourth quarter of 2024, primarily due to contribution on higher sales.

Relative to the first quarter of 2024, Electronics first quarter sales decreased by 10.0%. This decrease was primarily driven by lower production volumes in the North American and European commercial vehicle end markets, partially mitigated by higher MirrorEye revenue, including the ramp-up of recently launched OEM programs and higher sales for the SMART 2 tachograph. First quarter adjusted operating margin of 4.9% increased by 40 basis points relative to the first quarter of 2024, driven by improved gross margin offset by higher D&D expense as customer reimbursements declined more than spending, as well as lower contribution from lower sales.

Relative to the first quarter of 2024, Control Devices first quarter sales decreased by 10.4%. This decrease was primarily due to lower customer production volumes in the North American passenger vehicle end market, as well as the expected wind-down of end-of-life programs. First quarter adjusted operating margin of 2.2% decreased by 60 basis points relative to the first quarter of 2024, primarily due to reduced contribution on lower sales, partially offset by lower D&D and reduced quality-related costs.

Relative to the first quarter of 2024, Stoneridge Brazil first quarter sales increased by $2.2 million, or 18.0%. This increase was primarily driven by higher OEM product sales. First quarter operating income of $0.6 million increased by approximately $0.4 million relative to the first quarter of 2024.

Cash and Debt Balances

As of March 31, 2025, Stoneridge had cash and cash equivalents totaling $79.1 million and total debt of $203.2 million. During the first quarter of 2025, the Company generated $10.9 million in net cash provided by operating activities and $4.9 million in free cash flow, an increase of $1.8 million and $1.5 million, respectively, over the first quarter of 2024.

For Credit Facility compliance purposes, adjusted net debt was $148.9 million while adjusted EBITDA for the trailing twelve months was $37.5 million, resulting in an adjusted net debt to trailing twelve-month EBITDA compliance leverage ratio of 3.97x relative to a required leverage ratio of not greater than 6.00x as per the amended Credit Facility agreement.

The Company continues to expect to remain compliant with all amended compliance ratios and is maintaining the previously communicated targeted compliance net debt to EBITDA leverage ratio of 2.0x to 2.5x by the end of the year, relative to a 3.50x leverage ratio requirement by the end of the year.

2025 and Future Outlook

The Company is maintaining its guidance ranges for its full-year 2025 performance including sales guidance of $860 million to $890 million, adjusted gross margin guidance of 22.0% to 22.5%, adjusted operating margin guidance of 0.75% to 1.25%, and adjusted EBITDA guidance of $38 million to $42 million, or approximately 4.4% to 4.7% of sales. The Company is also maintaining its full-year 2025 guidance for free cash flow of $25 million to $30 million.

Matt Horvath, chief financial officer, commented, "We delivered a strong first quarter that exceeded our previously outlined expectations across each of our key metrics. Operating margins improved compared to the previous quarter in each of our segments driven by lower quality-related costs, material cost reductions, structural cost control and our long-standing focus on operational excellence. Sales for our key growth products achieved record sales and cash performance exceeded our expectations as we remain focused on working capital improvement through inventory management and strict management of capital expenditures."

Horvath continued, "We are taking a deliberate and thoughtful approach for the remainder of the year as we expect some volatility in our end markets and supply chains as a result of volatile macroeconomic and political factors, including tariff uncertainties. That said, we are maintaining our full-year guidance ranges based on our first quarter outperformance and run-rate margin improvement, as well as our original, relatively conservative assumptions related to vehicle production volumes. Even considering the most recent external production forecasts, we expect to perform within our previously provided EBITDA guidance range. Consistent with the outperformance we saw in the first quarter, we expect continued progress on our material cost improvement initiatives and quality-related costs for the remainder of the year. We will continue to manage structural costs and make adjustments as necessary to align our operating structure with current market conditions." 

Horvath concluded, "We remain focused on building a strong foundation for continued earnings expansion as we capitalize on our impressive portfolio of advanced technologies. Stoneridge remains well positioned to continue to outperform our underlying markets and drive margin expansion resulting in long-term shareholder value creation."

Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2025 first quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, May 1, 2025, at www.stoneridge.com, which will also offer a webcast replay.

About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global supplier of safe and efficient electronic systems and technologies. Our systems and products power vehicle intelligence, while enabling safety and security for on- and off-highway transportation sectors around the world. Additional information about Stoneridge can be found at www.stoneridge.com. 

Forward-Looking Statements
Statements in this press release contain "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business, and (v) operational expectations. Forward-looking statements may be identified by the words "will," "may," "should," "designed to," "believes," "plans," "projects," "intends," "expects," "estimates," "anticipates," "continue," and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:

• the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;
• fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;
• global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries;
• tariffs specifically in countries where we have significant direct or indirect manufacturing or supply chain exposure and our ability to either mitigate the impact of tariffs or pass any incremental costs to our customers;
• our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
• the reduced purchases, loss, financial distress or bankruptcy of a major customer or supplier;
• the costs and timing of business realignment, facility closures or similar actions;
• a significant change in commercial, automotive, off-highway or agricultural vehicle production;
• competitive market conditions and resulting effects on sales and pricing;
• foreign currency fluctuations and our ability to manage those impacts;
• customer acceptance of new products;
• our ability to successfully launch/produce products for awarded business;
• adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, or our customers' products;
• our ability to protect our intellectual property and successfully defend against assertions made against us;
• liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
• labor disruptions at our facilities, or at any of our significant customers or suppliers;
• business disruptions due to natural disasters or other disasters outside of our control;
• the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;
• capital availability or costs, including changes in interest rates;
• the failure to achieve the successful integration of any acquired company or business;
• risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; and
• the items described in Part I, Item IA ("Risk Factors") in the Company's 2024 Form 10-K.

The forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.

Use of Non-GAAP Financial Information

This press release contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2025 and 2024 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

In evaluating its business, the Company considers and uses free cash flow and net debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position and results of operations. In particular, management believes that adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted debt, adjusted net debt, adjusted cash and free cash flow are useful measures in assessing the Company's financial performance by excluding certain items that are not indicative of the Company's core operating performance or that may obscure trends useful in evaluating the Company's continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company's results of operations and provide improved comparability between fiscal periods.

Adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted debt, adjusted net debt, adjusted cash and free cash flow should not be considered in isolation or as a substitute for gross profit, operating income (loss), income (loss) before tax, income tax expense (benefit), net income (loss), EPS, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)		March 31, 2025		December 31, 2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$            79,109		$            71,832
Accounts receivable, less reserves of $699 and $1,060, respectively		156,683		137,766
Inventories, net		151,794		151,337
Prepaid expenses and other current assets		30,435		26,579
Total current assets		418,021		387,514
Long-term assets:
Property, plant and equipment, net		99,289		97,667
Intangible assets, net		41,260		39,677
Goodwill		34,610		33,085
Operating lease right-of-use asset		9,607		10,050
Investments and other long-term assets, net		54,572		53,563
Total long-term assets		239,338		234,042
Total assets		$         657,359		$         621,556
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$            97,037		$            83,478
Accrued expenses and other current liabilities		78,127		66,494
Total current liabilities		175,164		149,972
Long-term liabilities:
Revolving credit facility		203,186		201,577
Deferred income taxes		5,344		5,321
Operating lease long-term liability		6,186		6,484
Other long-term liabilities		14,383		12,942
Total long-term liabilities		229,099		226,324
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued		—		—
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,846 and 27,695 shares outstanding at March 31,2025 and December 31, 2024, respectively, with no stated value		—		—
Additional paid-in capital		221,130		225,712
Common Shares held in treasury, 1,120 and 1,271 shares at March 31,2025 and December 31, 2024, respectively, at cost		(32,936)		(38,424)
Retained earnings		172,789		179,985
Accumulated other comprehensive loss		(107,887)		(122,013)
Total shareholders' equity		253,096		245,260
Total liabilities and shareholders' equity		$         657,359		$         621,556

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
		Three months ended March 31,
(in thousands, except per share data)		2025		2024
Net sales		$         217,890		$         239,157
Costs and expenses:
Cost of goods sold		171,593		190,800
Selling, general and administrative		31,696		30,423
Design and development		17,826		17,603
Operating (loss) income		(3,225)		331
Interest expense, net		3,167		3,634
Equity in (earnings) loss of investee		(294)		277
Other (income) expense, net		(466)		2,036
Loss before income taxes		(5,632)		(5,616)
Provision for income taxes		1,564		510
Net loss		$            (7,196)		$            (6,126)
Loss per share:
Basic		$              (0.26)		$              (0.22)
Diluted		$              (0.26)		$              (0.22)
Weighted-average shares outstanding:
Basic		27,680		27,529
Diluted		27,680		27,529

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31, (in thousands)		2025		2024
OPERATING ACTIVITIES:
Net loss		$              (7,196)		$              (6,126)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation		5,428		6,601
Amortization, including accretion of deferred financing costs		2,054		2,164
Deferred income taxes		(402)		(2,279)
(Earnings) loss of equity method investee		(294)		277
Loss on sale of fixed assets		4		266
Share-based compensation expense		1,136		1,092
Excess tax deficiency related to share-based compensation expense		440		230
Changes in operating assets and liabilities:
Accounts receivable, net		(14,610)		(6,676)
Inventories, net		5,263		3,699
Prepaid expenses and other assets		(1,379)		1,377
Accounts payable		10,792		(709)
Accrued expenses and other liabilities		9,661		9,193
Net cash provided by operating activities		10,897		9,109
INVESTING ACTIVITIES:
Capital expenditures, including intangibles		(6,070)		(5,795)
Proceeds from sale of fixed assets		82		81
Net cash used for investing activities		(5,988)		(5,714)
FINANCING ACTIVITIES:
Revolving credit facility borrowings		—		30,500
Revolving credit facility payments		—		(24,500)
Proceeds from issuance of debt		6,699		7,798
Repayments of debt		(7,260)		(7,790)
Repurchase of Common Shares to satisfy employee tax withholding		(226)		(620)
Net cash (used for) provided by financing activities		(787)		5,388
Effect of exchange rate changes on cash and cash equivalents		3,155		(1,184)
Net change in cash and cash equivalents		7,277		7,599
Cash and cash equivalents at beginning of period		71,832		40,841
Cash and cash equivalents at end of period		$             79,109		$             48,440
Supplemental disclosure of cash flow information:
Cash paid for interest, net		$               3,309		$               4,194
Cash paid for income taxes, net		$               1,852		$               2,653

 

Regulation G Non-GAAP Financial Measure Reconciliations
Exhibit 1 – Reconciliation of Adjusted Gross Profit
(USD in millions)	Q1 2024		Q1 2025
Gross Profit	$         48.4		$         46.3
Add: Pre-Tax Business Realignment Costs	—		1.4
Adjusted Gross Profit	$         48.4		$         47.7
Exhibit 2 - Reconciliation of Adjusted Operating Income (Loss)
(USD in millions)	Q1 2024		Q1 2025
Operating Income (Loss)	$           0.3		$         (3.2)
Add: Pre-Tax Business Realignment Costs	—		2.8
Adjusted Operating Income (Loss)	$           0.3		$         (0.4)

 

Exhibit 3 – Reconciliation of Adjusted Tax Rate
(USD in millions)	Q1 2025		Tax Rate
Loss Before Tax	$            (5.6)
Add: Pre-Tax Business Realignment Costs	2.8
Adjusted Loss Before Tax	$            (2.8)
Income Tax Expense	$             1.6		(27.8) %
Add: Tax Impact from Pre-Tax Adjustments	0.8
Adjusted Income Tax Expense on Adjusted Loss Before Tax	$             2.3		(82.6) %

 

Exhibit 4 - Reconciliation of Adjusted Net Loss and EPS
(USD in millions, except EPS)	Q1 2025		Q1 2025 EPS
Net Loss	$             (7.2)		$           (0.26)
Add: After-Tax Business Realignment Costs	2.1		0.07
Adjusted Net Loss	$             (5.1)		$           (0.19)

 

Exhibit 5 – Reconciliation of Adjusted EBITDA
(USD in millions)		Q1 2024		Q2 2024		Q3 2024		Q4 2024		Q1 2025
Income (Loss) Before Tax		$     (5.6)		$       1.9		$     (3.7)		$     (6.2)		$     (5.6)
Interest expense, net		3.6		3.8		3.6		3.4		3.2
Depreciation and amortization		8.6		8.5		8.8		8.3		7.3
EBITDA		$       6.6		$     14.2		$       8.8		$       5.5		$       4.8
Add: Pre-Tax Business Realignment Costs		—		1.9		0.3		0.4		2.8
Add: Pre-Tax Environmental Remediation Costs		—		—		0.2		—		—
Adjusted EBITDA		$       6.6		$     16.1		$       9.2		$       6.0		$       7.6

 

Exhibit 6 – Segment Adjusted Operating Income (Loss)
Reconciliation of Control Devices Adjusted Operating Income (Loss)
(USD in millions)	Q1 2024		Q4 2024		Q1 2025
Control Devices Operating Income (Loss)	$          2.2		$          (1.8)		$           1.2
Add: Pre-Tax Business Realignment Costs	—		0.2		0.4
Control Devices Adjusted Operating Income (Loss)	$          2.2		$          (1.6)		$           1.5
Reconciliation of Electronics Adjusted Operating Income
(USD in millions)	Q1 2024		Q4 2024		Q1 2025
Electronics Operating Income	$          7.1		$            5.1		$          5.5
Add: Pre-Tax Business Realignment Costs	—		0.2		1.4
Electronics Adjusted Operating Income	$          7.1		$            5.3		$          6.9

 

Exhibit 7 – Reconciliation of Free Cash Flow
(USD in millions)	Q1 2024		Q1 2025
Cash Flow from Operating Activities	$           9.1		$         10.9
Capital Expenditures, including Intangibles	(5.8)		(6.1)
Proceeds from Sale of Fixed Assets	0.1		0.1
Free Cash Flow	$           3.4		$           4.9

 

Exhibit 8 – Reconciliation of Compliance Leverage Ratio
Reconciliation of Adjusted EBITDA for Compliance Calculation
(USD in millions)	Q2 2024		Q3 2024		Q4 2024		Q1 2025
Income (Loss) Before Tax	$       1.9		$     (3.7)		$     (6.2)		$     (5.6)
Interest Expense, net	3.8		3.6		3.4		3.2
Depreciation and Amortization	8.5		8.8		8.3		7.3
EBITDA	$     14.2		$       8.8		$       5.5		$       4.8
Compliance adjustments:
Add: Non-Cash Impairment Charges and Write-offs or Write Downs	—		—		0.4		—
Add: Adjustments from Foreign Currency Impact	(2.4)		(0.6)		(1.1)		(2.1)
Add: Extraordinary, Non-recurring or Unusual Items	—		—		—		—
Add: Cash Restructuring Charges	0.5		0.7		0.3		1.6
Add: Charges for Transactions, Amendments, and Refinances	—		—		—		—
Add: Adjustment to Autotech Fund II Investment	0.1		0.8		0.2		(0.3)
Add: Accrual-based Expenses	7.1		1.3		6.4		7.3
Less: Cash Payments for Accrual-based Expenses	(3.7)		(3.3)		(2.8)		(6.1)
Adjusted EBITDA (Compliance)	$     15.8		$       7.6		$       8.9		$       5.3
Adjusted TTM EBITDA (Compliance)							$     37.5
Reconciliation of Adjusted Cash for Compliance Calculation
(USD in millions)							Q1 2025
Total Cash and Cash Equivalents							$       79.1
Less: 35% of Cash in Foreign Locations							(23.3)
Total Adjusted Cash (Compliance)							$       55.8
Reconciliation of Adjusted Debt for Compliance Calculation
(USD in millions)							Q1 2025
Total Debt							$     203.2
Outstanding Letters of Credit							1.5
Total Adjusted Debt (Compliance)							$     204.7
Adjusted Net Debt (Compliance)							$     148.9
Compliance Leverage Ratio (Net Debt / TTM EBITDA)							3.97x
Compliance Leverage Ratio Maximum Requirement							6.00x

 

 

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SOURCE Stoneridge, Inc.

FAQ

What were Stoneridge (SRI) Q1 2025 financial results?

Stoneridge reported Q1 2025 sales of $217.9M, with a net loss of $7.2M. The company had an adjusted EBITDA of $7.6M (3.5% of sales) and adjusted EPS of $(0.19). They maintained positive free cash flow of $4.9M, showing a $1.5M improvement from Q1 2024.

How did MirrorEye and SMART 2 perform for Stoneridge (SRI) in Q1 2025?

Both MirrorEye and SMART 2 achieved record quarterly sales in Q1 2025. MirrorEye specifically saw a 24% increase in sales due to previously launched OEM programs ramping up, along with strong performance in the global bus market.

What is Stoneridge's (SRI) full-year 2025 financial guidance?

Stoneridge maintains its 2025 guidance with sales of $860M-$890M, adjusted gross margin of 22.0-22.5%, adjusted operating margin of 0.75-1.25%, adjusted EBITDA of $38M-$42M, and free cash flow of $25M-$30M.

How is Stoneridge (SRI) managing tariff impacts in 2025?

91% of Stoneridge's Juarez, Mexico facility products are USMCA certified and not subject to tariffs. The company is implementing mitigation strategies through strategic supply chain sourcing and customer pricing adjustments to offset potential tariff impacts.

What is Stoneridge's (SRI) debt position as of Q1 2025?

As of March 31, 2025, Stoneridge had $79.1M in cash and cash equivalents with total debt of $203.2M. Their adjusted net debt was $148.9M with a compliance leverage ratio of 3.97x, well within their required ratio of 6.00x.