Stoneridge Reports First Quarter 2026 Results
Rhea-AI Summary
Stoneridge (NYSE: SRI) reported Q1 2026 results for the quarter ended March 31, 2026. Sales were $160.8 million, gross profit $35.0 million (21.7% of sales), and adjusted EBITDA was $2.0 million. The company updated full‑year revenue guidance to $645M–$670M and reaffirmed adjusted EBITDA of $20M–$25M. Stoneridge announced two program awards totaling over $135 million estimated lifetime revenue and reported net debt improvement to $85.9 million as of March 31, 2026.
Positive
- Updated full‑year revenue guidance increased by $20 million to $645M–$670M
- Reaffirmed adjusted EBITDA guidance of $20M–$25M
- Two program awards totaling > $135 million estimated lifetime revenue
- Net debt improved by $42.0 million to $85.9 million as of March 31, 2026
Negative
- Reported net loss of $(27.0) million for Q1 2026
- Recorded loss on disposal related to sale of Control Devices of $9.2 million included in net loss
News Market Reaction – SRI
On the day this news was published, SRI gained 8.07%, reflecting a notable positive market reaction. Argus tracked a peak move of +18.9% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $17M to the company's valuation, bringing the market cap to $221.65M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Argus momentum scanner shows 2 peers (HLLY, CVGI) moving down together (median move about -5.4%), indicating broader sector dynamics rather than a purely stock-specific pattern.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Negative | -16.3% | Updated 2025 guidance lower and reported ongoing net losses despite sales growth. |
| Aug 06 | Q2 2025 earnings | Positive | +9.3% | Strong MirrorEye growth, record awards and debt reduction with maintained revenue guidance. |
| Apr 30 | Q1 2025 earnings | Positive | +7.5% | Margin improvement across segments and record MirrorEye and tachograph sales with guidance kept. |
| Feb 26 | Q4 2024 earnings | Positive | +20.7% | Solid 2024 revenue, cash flow improvement and strong 2025–2026 revenue and EBITDA targets. |
| Oct 30 | Q3 2024 earnings | Negative | -24.7% | Losses with reduced 2024 guidance despite MirrorEye progress and upcoming platform launches. |
Earnings releases have historically triggered sizable moves that generally align with the tone of results and guidance, with both sharp rallies and selloffs around updates.
Over the last several earnings cycles, Stoneridge has combined continued net losses with growing MirrorEye momentum and evolving guidance. Q3 and Q2 2025 highlighted major MirrorEye awards, debt reduction and guidance adjustments, while Q1 2025 and Q4 2024 emphasized margin progress and ambitious multi‑year revenue and EBITDA targets. These new Q1 2026 results extend that pattern: improving margins, positive adjusted EBITDA, and higher revenue/operating-margin guidance while the company remains loss‑making and focused on executing its strategy.
Historical Comparison
In the past five earnings releases, SRI’s average move was -0.69%, with sharp reactions tied to changes in guidance and MirrorEye milestones. This Q1 2026 report fits that pattern of balancing improving operations with ongoing losses.
Earnings updates show a transition from 2024’s higher revenue and ambitious 2025–2026 targets toward 2025–2026 periods marked by guidance resets, large MirrorEye awards, and continued but narrowing losses, framing Q1 2026’s margin gains and modest guidance lift.
Market Pulse Summary
The stock moved +8.1% in the session following this news. A strong positive reaction aligns with Q1 2026’s mix of improving fundamentals and raised guidance. The company delivered sales of $160.8M, gross margin of 21.7%, and positive adjusted EBITDA, while still posting a GAAP net loss of $(27.0)M. Historically, earnings moves averaged about -0.69%, so a large rally could reflect renewed confidence but may be sensitive to execution and future guidance updates.
Key Terms
adjusted EBITDA financial
net debt financial
free cash flow financial
non-GAAP financial measures financial
EBITDA financial
AI-generated analysis. Not financial advice.
Q1 Performance Demonstrates Solid Progress
Continued Strong Momentum with Program Awards for MirrorEye® and Electronic Controls
2026 First Quarter Results
- Sales of
$160.8 million - Growth of
9.2% vs. Q4 2025
- Growth of
- Gross profit of
$35.0 million 21.7% of sales)- Gross margin improvement of 400 basis points vs. adjusted gross margin of Q4 2025
- Operating loss of
$(9.0) million - Adjusted operating loss of
$(3.0) million - Adjusted operating margin improvement of 180 basis points vs. Q4 2025
- Loss from continuing operations of
$(14.6) million - Adjusted loss from continuing operations of
$(8.5) million
- Adjusted loss from continuing operations of
- Net loss of
$(27.0) million - Includes loss on disposal of sale of Control Devices of
$9.2 million
- Includes loss on disposal of sale of Control Devices of
- Adjusted net loss of
$(20.9) million - Adjusted EBITDA of
$2.0 million 1.3% of sales)
2026 Full-Year Guidance
- Updating guidance to reflect the incremental impact of the contract manufacturing revenue associated with the sale of Control Devices (the "Mexico Supply Agreement")
- Revenue guidance of
$645 million $670 million $20 million
- Adjusted operating margin guidance of approximately break-even to
0.5% , an increase of approximately 50 basis points vs. prior expectations
- Revenue guidance of
- Reaffirming full-year adjusted EBITDA guidance of
$20 million $25 million - Previous EBITDA guidance incorporated the full impact of the Mexico Supply Agreement as non-operating other income, net
The exhibits attached hereto provide reconciliation details on normalizing adjustments of non-GAAP financial measures used in this press release.
"The first quarter represents solid progress to start the year and an important step forward in executing our long-term strategy," said Natalia Noblet, president and chief executive officer. "Our results were driven by improved manufacturing performance, reduced quality-related costs, favorable net tariff recoveries, and cost control across the organization. MirrorEye continues to be a key growth driver, delivering record first quarter sales and accelerating momentum with global OEMs in the commercial vehicle end markets. We remain focused on driving earnings expansion as we capitalize on our portfolio of advanced technologies and drive cost efficiencies to improve profitability."
Noblet continued, "Our priority is to deliver outstanding value to customers while collaborating with our partners to advance next-generation technologies for safer and more efficient transportation. Today, we are announcing two major business awards totaling over
2026 Quarter in Review
Electronics first quarter sales of
Relative to the first quarter of 2025, Electronics first quarter sales increased by
Stoneridge Brazil first quarter sales of
Relative to the first quarter of 2025, Stoneridge Brazil first quarter sales increased by
Cash and Debt Balances
As of March 31, 2026, Stoneridge had cash and cash equivalents totaling
Bob Hartman, interim chief financial officer, commented, "We remain focused on driving strong cash flow conversion through disciplined working capital management and capital expenditures. As part of this effort, we reduced inventory balances by approximately
2026 Outlook
The Company is updating its full-year revenue and operating guidance ranges to reflect the incremental impact of contract manufacturing revenue from the Mexico Supply Agreement related to the sale of Control Devices. This agreement was previously guided as non-operating other income, net and therefore only included in our adjusted EBITDA guidance. The Company is reaffirming its previously provided full-year EBITDA guidance.
Hartman commented, "We are first reaffirming our base full-year guidance, supported by the solid start to the year and continued execution across our business. While macroeconomic volatility and inflationary pressures persist, we remain confident in our initial outlook and the meaningful progress we are making across our key initiatives. We also remain focused on driving organizational efficiencies and have already taken decisive actions to reduce structural costs to better align our cost base with the Company's current scale, positioning us to deliver sustainable long-term performance."
Hartman continued, "We are also updating our guidance to reflect contract manufacturing revenue from the Mexico Supply Agreement. While the estimated benefit of this agreement was previously included in our adjusted EBITDA guidance as non-operating other income, net, we are updating our full-year revenue guidance by
As a result, the Company is updating its full-year revenue guidance to
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2026 first quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, May 7, 2026, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in
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 press release 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) strategic focus following the sale of the Control Devices segment, (iii) acquisition strategy, (iv) investments and new product development, (v) growth opportunities related to awarded business, and (vi) operational expectations. Forward-looking statements may be identified by the words "will," "may," "should," "could," "would," "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;
- refinancing risk and access to capital markets and liquidity;
- 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;
- as a result of the sale of the Company's Control Devices business in January 2026, the Company will operate as a two-segment business; the 2025 financial statements are not representative of the Company's future operating profile; and
- the items described in Part I, Item 1A ("Risk Factors") in the Company's most recent Form 10-K.
The forward-looking statements contained herein represent our estimates only as of the date of this filing 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, except as required by law, 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
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 loss from continuing operations, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and net debt 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 from continuing operations, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and net debt should not be considered in isolation or as a substitute for gross profit, operating income (loss), income (loss) before tax, income tax expense (benefit), loss from continuing operations, 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, | December 31, | ||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 70,536 | $ 53,057 | ||
Accounts receivable, less reserves of | 141,051 | 89,019 | ||
Inventories, net | 111,252 | 106,422 | ||
Prepaid expenses and other current assets | 25,202 | 26,956 | ||
Current assets of discontinued operations | — | 106,044 | ||
Total current assets | 348,041 | 381,498 | ||
Long-term assets: | ||||
Property, plant and equipment, net | 60,231 | 62,659 | ||
Intangible assets, net | 35,509 | 37,632 | ||
Goodwill | 36,959 | 37,590 | ||
Operating lease right-of-use asset | 9,020 | 9,570 | ||
Investments and other long-term assets, net | 22,545 | 22,167 | ||
Total long-term assets | 164,264 | 169,618 | ||
Total assets | $ 512,305 | $ 551,116 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accounts payable | $ 103,494 | $ 62,398 | ||
Accrued expenses and other current liabilities | 68,230 | 65,131 | ||
Current liabilities of discontinued operations | — | 34,688 | ||
Total current liabilities | 171,724 | 162,217 | ||
Long-term liabilities: | ||||
Revolving credit facility | 156,470 | 180,942 | ||
Deferred income taxes | 8,967 | 9,972 | ||
Operating lease long-term liability | 6,190 | 6,601 | ||
Other long-term liabilities | 11,815 | 11,605 | ||
Total long-term liabilities | 183,442 | 209,120 | ||
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 | — | — | ||
Additional paid-in capital | 215,639 | 219,186 | ||
Common Shares held in treasury, 730 and 948 shares at March 31, 2026 and | (20,341) | (27,457) | ||
Retained earnings | 50,190 | 77,150 | ||
Accumulated other comprehensive loss | (88,349) | (89,100) | ||
Total shareholders' equity | 157,139 | 179,779 | ||
Total liabilities and shareholders' equity | $ 512,305 | $ 551,116 | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
Three months ended | ||||
(in thousands, except per share data) | 2026 | 2025 | ||
Net sales | $ 160,847 | $ 149,057 | ||
Costs and expenses: | ||||
Cost of goods sold | 125,891 | 113,807 | ||
Selling, general and administrative | 32,529 | 25,865 | ||
Design and development | 11,405 | 13,691 | ||
Operating loss | (8,978) | (4,306) | ||
Interest expense, net | 3,685 | 3,242 | ||
Equity in loss (earnings) of investee | 231 | (294) | ||
Other expense (income), net | 470 | (825) | ||
Loss before income taxes from continuing operations | (13,364) | (6,429) | ||
Provision for income taxes from continuing operations | 1,218 | 1,575 | ||
Loss from continuing operations | (14,582) | (8,004) | ||
Discontinued operations: | ||||
Loss (income) from discontinued operations, net of tax | 3,180 | (808) | ||
Loss on disposal, net of tax | 9,198 | — | ||
Loss (income) from discontinued operations | 12,378 | (808) | ||
Net loss | $ (26,960) | $ (7,196) | ||
Loss per share from continuing operations: | ||||
Basic | $ (0.52) | $ (0.29) | ||
Diluted | $ (0.52) | $ (0.29) | ||
(Loss) income per share from discontinued operations: | ||||
Basic | $ (0.44) | $ 0.03 | ||
Diluted | $ (0.44) | $ 0.03 | ||
Loss per share from Stoneridge Inc.: | ||||
Basic | $ (0.97) | $ (0.26) | ||
Diluted | $ (0.97) | $ (0.26) | ||
Weighted-average shares outstanding: | ||||
Basic | 27,898 | 27,680 | ||
Diluted | 27,898 | 27,680 | ||
Regulation G Non-GAAP Financial Measure Reconciliations |
Exhibit 1 – Reconciliation of Adjusted Gross Profit |
(USD in millions) | Q4 2025 | Q1 2026 | |
Gross Profit | $ 26.0 | $ 35.0 | |
Add: Pre-Tax Business Realignment Costs | 0.1 | — | |
Adjusted Gross Profit | $ 26.0 | $ 35.0 |
Exhibit 2 - Reconciliation of Adjusted Operating Loss |
Reconciliation of Adjusted Operating Loss | |||
(USD in millions) | Q4 2025 | Q1 2026 | |
Operating Loss | $ (5.5) | $ (9.0) | |
Add: Pre-Tax Business Realignment Costs | 0.1 | 0.4 | |
Add: Pre-Tax Share-Based Compensation Accelerated Vesting | — | 3.2 | |
Add: Pre-Tax Control Devices Sale Transaction Bonuses | — | 2.0 | |
Add: Pre-Tax Brazilian Indirect Taxes | — | 0.4 | |
Adjusted Operating Loss | $ (5.4) | $ (3.0) | |
Exhibit 3 – Reconciliation of Q1 Adjusted Tax Rate |
(USD in millions) | Q1 2026 | Tax Rate | |
Loss Before Tax | $ (13.4) | ||
Add: Pre-Tax Business Realignment Costs | 0.4 | ||
Add: Pre-Tax Share-Based Compensation Accelerated Vesting | 3.2 | ||
Add: Pre-Tax Control Devices Sale Transaction Bonuses | 2.0 | ||
Add: Pre-Tax Brazilian Indirect Taxes | 0.4 | ||
Add: Pre-Tax Deferred Financing Fee Write-Off | 0.2 | ||
Adjusted Loss Before Tax | $ (7.2) | ||
Income Tax Expense | $ 1.2 | (9.1) % | |
Add: Tax Impact from Pre-Tax Adjustments | 0.1 | ||
Add: After-Tax Impact of Valuation Allowances, net | — | ||
Adjusted Income Tax Expense on Adjusted Loss Before Tax | $ 1.4 | (19.0) % |
Exhibit 4 - Reconciliation of Adjusted Net Loss and EPS |
Reconciliation of Q1 2026 Adjusted Net Income and EPS | |||
(USD in millions, except EPS) | Q1 2026 | Q1 2026 EPS | |
Net Loss | $ (27.0) | $ (0.97) | |
Add: After-Tax Business Realignment Costs | 0.4 | 0.01 | |
Add: After-Tax Share-Based Compensation Accelerated Vesting | 3.2 | 0.12 | |
Add: After-Tax Control Devices Sale Transaction Bonuses | 2.0 | 0.07 | |
Add: After-Tax Brazilian Indirect Taxes | 0.3 | 0.01 | |
Add: After-Tax Deferred Financing Fee Write-Off | 0.2 | 0.01 | |
Adjusted Net Loss | $ (20.9) | $ (0.75) | |
Exhibit 5 – Reconciliation of Adjusted EBITDA |
Reconciliation of Adjusted EBITDA | |||
(USD in millions) | Q4 2025 | Q1 2026 | |
Loss Before Income Taxes from Continuing Operations | $ (5.3) | $ (13.4) | |
Interest expense, net | 3.5 | 3.7 | |
Depreciation and amortization | 5.0 | 5.7 | |
EBITDA | $ 3.2 | $ (4.0) | |
Add: Pre-Tax Business Realignment Costs | 0.1 | 0.4 | |
Add: Pre-Tax Share-Based Compensation Accelerated Vesting | — | 3.2 | |
Add: Pre-Tax Control Devices Sale Transaction Bonuses | — | 2.0 | |
Add: Pre-Tax Brazilian Indirect Taxes | — | 0.4 | |
Adjusted EBITDA | $ 3.2 | $ 2.0 | |
Exhibit 6 – Segment Adjusted Operating Income |
Reconciliation of Electronics Adjusted Operating Income | |||||
(USD in millions) | Q1 2025 | Q4 2025 | Q1 2026 | ||
Electronics Operating Income | $ 5.5 | $ 0.2 | $ 3.7 | ||
Add: Pre-Tax Business Realignment Costs | 1.4 | 0.1 | 0.4 | ||
Electronics Adjusted Operating Income | $ 6.9 | $ 0.3 | $ 4.1 | ||
Reconciliation of Stoneridge Brazil Adjusted Operating Income | |||||
(USD in millions) | Q1 2025 | Q4 2025 | Q1 2026 | ||
Stoneridge Brazil Operating Income | $ 0.6 | $ 1.3 | $ 1.3 | ||
Add: Pre-Tax Brazilian Indirect Taxes | — | — | 0.4 | ||
Stoneridge Brazil Adjusted Operating Income | $ 0.6 | $ 1.3 | $ 1.7 | ||
Exhibit 7 – Reconciliation of Net Debt |
(USD in millions) | Q4 2025 | Q1 2026 | |
Total Debt | $ 180.9 | $ 156.5 | |
Cash and Cash Equivalents | 53.1 | 70.5 | |
Net Debt | $ 127.9 | $ 85.9 |
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SOURCE Stoneridge, Inc.