Stoneridge Reports Fourth Quarter and Full-Year 2025 Results

Rhea-AI Summary

Stoneridge (NYSE: SRI) reported Q4 2025 sales of $205.2 million and full-year sales of $861.3 million. Q4 net loss was $(76.9) million including a pre-tax impairment of Control Devices assets of $(21.6) million and tax valuation allowances of $44.5 million. Adjusted EBITDA for 2025 was $25.0 million and adjusted free cash flow was $19.0 million. MirrorEye revenue grew 69% to $111 million in 2025. The company issued 2026 guidance of $625M–$650M (midpoint $638M) and adjusted EBITDA guidance of $20M–$25M, and targets $715M revenue and $44M EBITDA for 2027.

Positive

• MirrorEye sales +69% to $111 million in 2025
• Adjusted EBITDA of $25.0 million for full-year 2025
• Adjusted free cash flow of $19.0 million in 2025
• 2026 revenue midpoint $638 million guidance
• Targeting at least $715 million revenue in 2027
• 2027 EBITDA target of at least $44 million

Negative

• Q4 2025 net loss of $(76.9) million
• Full-year 2025 net loss of $(102.8) million
• Pre-tax impairment of Control Devices assets $(21.6) million
• Recorded tax valuation allowances of $44.5 million
• Net debt of $114.7 million as of Dec 31, 2025
• Adjusted net debt to TTM EBITDA leverage 3.46x

Key Figures

Q4 2025 Sales: $205.2M Q4 Net Loss: $(76.9)M Q4 Adjusted EBITDA: $3.4M +5 more

8 metrics

Q4 2025 Sales $205.2M Fourth quarter 2025 sales

Q4 Net Loss $(76.9)M Q4 2025 net loss, 37.5% of sales

Q4 Adjusted EBITDA $3.4M Q4 2025 adjusted EBITDA, 1.7% of sales

2025 Sales $861.3M Full-year 2025 sales

2025 Adjusted EBITDA $25.0M Full-year 2025 adjusted EBITDA, 2.9% of sales

2026 Revenue Midpoint $638M 2026 revenue guidance midpoint, 4.2% growth vs. $612M base

2026 EBITDA Midpoint $22.5M Midpoint of 2026 adjusted EBITDA guidance range

2027 EBITDA Target $44M 2027 EBITDA target for remaining company

Market Reality Check

Price: $7.66 Vol: Volume 155,855 vs. 20‑day...

normal vol

$7.66 Last Close

Volume Volume 155,855 vs. 20‑day average 152,491 (relative volume 1.02x) shows typical interest ahead of results. normal

Technical Shares at $7.66 trade above the 200-day MA $6.98, sitting 21.11% below the 52-week high and 116.38% above the 52-week low.

Peers on Argus

Momentum data flags only CVGI moving with downside pressure (~-4.11%) and no bro...

1 Down

Momentum data flags only CVGI moving with downside pressure (~-4.11%) and no broad auto‑parts momentum. Other high‑affinity peers (STRT, HYLN, CAAS, LAZR, CVGI) show mixed, mostly modest moves, suggesting the reaction to this detailed earnings, guidance, and strategy update is largely stock‑specific rather than sector‑driven.

Historical Context

5 past events · Latest: Mar 02 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 02	Earnings call webcast	Neutral	-2.2%	Announced webcast details for upcoming Q4 2025 earnings conference call.
Feb 26	Board appointment	Positive	+1.3%	Added activist‑backed independent director under cooperation agreement with 22NW.
Feb 23	CEO succession	Positive	-0.4%	Announced planned CEO transition to Natalia Noblet following Control Devices sale.
Feb 02	CFO departure	Neutral	+0.1%	Disclosed planned resignation of CFO and interim coverage by long‑tenured executive.
Feb 02	Asset divestiture	Positive	+15.3%	Completed sale of Control Devices segment to refocus on core Electronics and Brazil.

Pattern Detected

Recent news has focused on portfolio reshaping and governance changes, with the Control Devices sale drawing the strongest positive reaction.

Recent Company History

Over the last several weeks, Stoneridge has executed a strategic reshaping and governance refresh. On Feb 2, 2026, it completed the sale of the Control Devices segment for $59 million, with shares rising 15.35%. That same day it announced its CFO’s planned departure. Subsequent filings detailed an activist stake and cooperation agreement with 22NW, plus a leadership succession making Natalia Noblet CEO on Apr 1, 2026. Today’s Q4 and full‑year 2025 results, together with 2026–2030 revenue and EBITDA targets, extend this transformation narrative with explicit growth and margin objectives for the remaining businesses.

Market Pulse Summary

This announcement combines backward-looking 2025 results with a multi‑year roadmap. Stoneridge repor...

Analysis

This announcement combines backward-looking 2025 results with a multi‑year roadmap. Stoneridge reported $861.3M in 2025 sales and $25.0M in adjusted EBITDA, then guided to $625M–$650M revenue and $20M–$25M adjusted EBITDA for 2026, plus at least $715M revenue and $44M EBITDA in 2027. Investors may focus on execution of MirrorEye growth, structural cost reductions, and the extended credit facility while monitoring leadership transition, activist involvement, and progress toward 2030 revenue and EBITDA targets of $850M–$1B and $80M–$120M.

Key Terms

ebitda, adjusted ebitda, gross profit, operating loss, +4 more

8 terms

ebitda financial

"Issues 2026 Midpoint EBITDA Guidance of $22.5 Million and 2027 EBITDA Target of $44 Million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

adjusted ebitda financial

"Adjusted EBITDA of $3.4 million (1.7% of sales)"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

gross profit financial

"Gross profit was $33.2 million (16.2% of sales) and adjusted gross profit was $33.2 million"

Gross profit is the amount a business keeps from sales after subtracting the direct costs to make or buy the products or services sold — like the money left from a lemonade stand after paying for lemons, sugar and cups. Investors watch gross profit to judge how well a company’s core operations and pricing cover those direct costs, revealing its basic profitability and whether margins are improving or shrinking over time.

operating loss financial

"Operating loss was $(29.5) million ((14.4)% of sales)"

Operating loss occurs when a company’s regular business activities—sales of goods or services—bring in less money than it costs to run the business, like a shop whose daily sales don’t cover rent and wages. For investors, it signals that the core business isn’t currently profitable, which can increase cash burn, affect future dividends or financing needs, and change how the company’s value and risk are judged.

adjusted operating loss financial

"adjusted operating loss was $(6.7) million ((3.3)% of sales)"

Adjusted operating loss is the company’s operating loss after removing one-time or unusual charges and income that management believes do not reflect ongoing business performance, such as major restructuring costs or gains from selling an asset. Investors use it like looking at a household’s monthly bills after excluding a single big repair bill — it helps show the underlying health of operations, but can be shaped by choices about what to exclude.

net debt financial

"total debt of $180.9 million resulting in net debt of $114.7 million"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

credit facility financial

"entered into an amendment to its current credit facility to extend the maturity date"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

leverage ratio financial

"resulting in an adjusted net debt to trailing twelve-month EBITDA compliance leverage ratio of 3.46x"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

AI-generated analysis. Not financial advice.

Outperformed End-Markets by 150 Basis Points in 2025 Driven by MirrorEye® Growth of 69%
Drove Improvements in Material Cost of 80 bps and Quality-Related Costs of $6.6 Million in 2025
Issues 2026 Midpoint EBITDA Guidance of $22.5 Million and 2027 EBITDA Target of $44 Million

2025 Fourth Quarter Results

• Sales of $205.2 million
• Net loss of $(76.9) million ((37.5)% of sales)
  • Includes the after-tax impairment of Control Devices assets of $(16.7) million and income tax expense related to the recording of valuation allowances of $(44.5) million, net

• Adjusted net loss of $(14.7) million ((7.2)% of sales)
• Adjusted EBITDA of $3.4 million (1.7% of sales)

 2026 Full-Year Guidance

• Revenue guidance of $625 million - $650 million (midpoint of $638 million) represents growth of 4.2% vs. 2025 sales (excluding Control Devices) of $612 million
  
  • Guidance conservatively assumes flat end market growth based on current customer expectations (IHS third party production data expects 7.1% year-over-year growth based on our weighted-average OEM end markets)
  • Expecting continued market outperformance led by MirrorEye growth of at least 45%

• Adjusted EBITDA of $20 million to $25 million (adjusted EBITDA margin of 3.2% to 3.8%)
  • Contribution margin from incremental sales, continued performance improvements and structural cost reductions of $5 million expected to drive significant margin improvement. 

 2027 Financial Targets

• 2027 revenue target of at least $715 million driven by improving market conditions and continued growth in MirrorEye
  • Incremental growth opportunities with our aftermarket, off-highway and Brazilian OEM businesses

• 2027 EBITDA expected of at least $44 million based on contribution on incremental revenue
  • Continued material cost, quality-related cost and structural cost improvement could expand targeted 2027 EBITDA above contribution-based target.

NOVI, Mich., March 11, 2026 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the fourth quarter ended December 31, 2025.

The Company announced fourth quarter sales of $205.2 million. Gross profit was $33.2 million (16.2% of sales) and adjusted gross profit was $33.2 million (16.2% of sales). Operating loss was $(29.5) million ((14.4)% of sales) while adjusted operating loss was $(6.7) million ((3.3)% of sales). Operating loss was adjusted to account for the pre-tax impairment of Control Devices assets of $(21.6) million among other non-recurring expenses as outlined in Exhibit 2. Net loss was $(76.9) million and adjusted net loss was $(14.7) million. Net loss was adjusted to account for the previously discussed impairment as well as the recording of tax valuation allowances of $44.5 million net, among other non-recurring expenses as outlined in Exhibit 4. Loss per share (EPS) was $(2.76) and adjusted EPS was $(0.53). Adjusted EBITDA was $3.4 million (1.7% of sales).

The Company announced full-year sales of $861.3 million, gross profit of $171.2 million (19.9% of sales) and adjusted gross profit of $173.6 million (20.2% of sales). Operating loss was $(38.6) million ((4.5)% of sales) and adjusted operating loss was $(4.3) million ((0.5)% of sales). Operating loss was adjusted to account for the pre-tax impairment of Control Devices assets of $(21.6) million among other non-recurring expenses as outlined in Exhibit 2. Net loss was $(102.8) million and adjusted net loss was $(31.9) million. Net loss was primarily adjusted to account for the previously discussed asset impairment as well as the recording of tax valuation allowances of $44.5 million net, among other non-recurring expenses as outlined in Exhibit 4. Loss per share was $(3.70) and adjusted EPS was $(1.15). Adjusted EBITDA was $25.0 million (2.9% of sales).

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

Jim Zizelman, president and chief executive officer, commented, "In 2025, our focused growth strategy, material and quality-related cost improvements, and structural cost control enabled us to navigate another year marked by challenging macroeconomic conditions. Driven by continued momentum with our MirrorEye programs, we outperformed our weighted average end markets by 150 basis points compared to the prior year. MirrorEye sales were $111 million in 2025, which represents 69% growth compared to the prior year, driven by the continued ramp-up of OEM programs in Europe, improved take rates, and two new program launches in North America. Our continued efforts to improve manufacturing performance resulted in an 80-basis point improvement in material costs and an overall reduction in quality-related costs of $6.6 million. We are proud of our ability to continuously outperform our end markets, even in a challenging vehicle production environment, while minimizing the impact on our bottom line. Finally, our focus on reducing inventory, which declined by $18.7 million this year, drove adjusted free cash flow of $19 million." 

Zizelman continued, "Earlier this year, we completed the sale of our Control Devices segment. As a result of this sale, we will now focus our resources on our highest growth, highest return businesses and reduce overall organizational complexity leading to a clear, focused strategy for the Company. Natalia Noblet, as the named president and chief executive officer effective April 1st, will continue the strategic vision of the Company, advancing the rigor and discipline we have built over the last several years to drive long-term sustainable performance."

Natalia Noblet, incoming president and chief executive officer, commented, "As president and CEO, my priority will be to continue delivering superior customer value proposition through advanced technology solutions that solve critical challenges and help our customers achieve their long-term goals. Second, my team and I will be focused on excellence in execution to sharpen our strategy and drive financial performance. We will continue to embed rigor and discipline in all our processes to drive operational efficiency and continuous improvement. We are committed to organizational efficiencies to streamline costs to better align our structure with our global goals. Finally, when passion, processes, and priorities are aligned, a strong performance culture emerges — one that consistently delivers long-term value. As the outcome, we expect to drive market outperformance, margin expansion and cash flow conversion to create value for shareholders, customers and employees."

Noblet continued, "Our advanced product portfolio is directly aligned with industry trends including more automated and connected vehicle technologies, focused on advanced safety and vehicle efficiency. We have built a substantial and growing backlog of awarded programs, and we expect to continue this momentum in the coming years."

Fourth Quarter in Review

Electronics fourth quarter sales of $133.2 million decreased by 10.8%, relative to the fourth quarter of 2024. This was primarily driven by lower commercial vehicle production volumes in Europe and North America, partially offset by incremental MirrorEye sales and favorable foreign exchange translation. Fourth quarter adjusted operating margin of 0.2% decreased by 330 basis points compared to the fourth quarter of 2024, primarily driven by lower contribution on lower sales and higher overhead costs, partially offset by lower D&D due to higher customer reimbursements.

Stoneridge Brazil fourth quarter sales of $16.6 million increased by $4.1 million, or 33.3%, relative to the fourth quarter of 2024. This increase was primarily driven by increased OEM and aftermarket sales. Fourth quarter operating income of $1.3 million increased by approximately $1.2 million compared to the fourth quarter of 2024 primarily due to increased sales and favorable foreign exchange impact on material purchases.

Control Devices fourth quarter sales of $64.4 million increased by 2.0%, relative to the fourth quarter of 2024. This increase was primarily due to higher passenger vehicle sales in North America and China. Fourth quarter adjusted operating margin of (2.3)% improved by 20 basis points compared to the fourth quarter of 2024, primarily driven by lower SG&A and engineering costs.

Full-Year in Review

Electronics full-year sales of $551.4 million decreased by (7.3)% relative to 2024. This decrease was primarily driven by lower customer production volumes in the North American and European commercial vehicle end markets, partially offset by incremental MirrorEye sales driven by the ramp up of a previously launched European OEM program and two additional OEM program launches in North America. Full-year adjusted operating margin of 3.3% decreased by 140 basis points compared to 2024, driven by lower contribution from lower sales and higher overhead costs offset by lower direct material, quality-related and engineering costs.

Stoneridge Brazil full-year sales of $65.1 million increased by 29.9% relative to 2024. This increase was primarily due to OEM sales that almost doubled compared to 2024. Full-year operating margin of 8.6% increased by approximately 660 basis points compared to 2024, primarily driven by increased contribution from incremental sales.

Control Devices full-year sales of $277.9 million decreased by (6.2)% relative to 2024. This decrease was primarily due to the production volume decline in the North American passenger vehicle end market as well as lower sales in the China automotive and off-highway end markets. Full-year adjusted operating margin of 1.6% decreased by 60 basis points compared to 2024, primarily due to lower contribution on lower sales as well as unfavorable mix offset by lower engineering costs.

Cash and Debt Balances

As of December 31, 2025, Stoneridge had cash and cash equivalents totaling $66.3 million and total debt of $180.9 million resulting in net debt of $114.7 million. For the twelve months ending December 31, 2025, the Company generated $34.0 million in net cash provided by operating activities and $19.0 million in adjusted free cash flow.

The Company has entered into an amendment to its current credit facility to extend the maturity date to July 1, 2027 to allow ample time to refinance the existing credit facility and align the long-term capital structure with the structure of the Company after the sale of Control Devices. The Company expects to remain in compliance with all of the amended covenant ratios.

For credit facility compliance purposes, adjusted net debt was $137.7 million while adjusted EBITDA for the trailing twelve months was $39.8 million, resulting in an adjusted net debt to trailing twelve-month EBITDA compliance leverage ratio of 3.46x relative to a required leverage ratio of not greater than 3.75x as per the amended credit facility agreement.

2026 and Future Outlook

The Company is issuing its full-year 2026 sales guidance range of $625 million to $650 million, gross margin guidance of 21.5% to 22.0%, adjusted operating margin guidance of approximately break-even, and adjusted EBITDA guidance of $20 million to $25 million, or approximately 3.2% to 3.8% of sales.

Bob Hartman, chief accounting officer and incoming interim chief financial officer commented, "We are introducing our full-year 2026 guidance ranges, including midpoint revenue of $638 million, representing 4.2% year-over-year growth relative to the 2025 sales for the remaining company. Our revenue guidance assumes that OEM production volumes will remain broadly in line with 2025. That said, based on our weighted average end-markets, IHS is forecasting 7.1% growth in 2026. However, we believe continued geopolitical volatility warrants some level of conservatism. We expect continued strong growth in MirrorEye this year, driven by improved customer take rates and the continued ramp up of recently launched OEM programs, resulting in expected MirrorEye revenue of at least $160 million, or approximately 45% growth. As Natalia outlined previously, we will continue to drive material cost and quality-related improvements as well as reducing our structural costs, which we expect to result in expanded margins. As a result, we expect EBITDA of $20 million to $25 million in 2026."

Noblet continued, "Finally, today we are providing both short-term and long-term revenue and EBITDA targets. Looking at 2027, our weighted-average end markets are expected to grow by 6.6% relative to 2026. In addition, we expect the continued ramp-up and increased customer take rates for our existing MirrorEye OEM programs to drive growth of at least $35 million incremental to 2026. Based on market expectations and MirrorEye-related growth, we are targeting at least $715 million of revenue in 2027. We have additional opportunities to outperform this target, including growth in our aftermarket, off-highway and Brazilian OEM businesses. Based on the contribution margin on expected revenue growth, we are targeting 2027 EBITDA of at least $44 million, or almost double our expected EBITDA in 2026. Incremental to that contribution-based target would be our continued focus on improving material costs, quality-related costs and structural cost reductions to align with our current company structure." 

Noblet concluded, "Similarly, we have updated our long-term targets to reflect continued strong growth expectations in our key product categories resulting in a 2030 revenue target of $850 million to $1 billion, implying revenue growth of 2x to 3x our weighted-average end market growth. This results in our expected 2030 EBITDA target of $80 million to $120 million, implying an EBITDA margin range of approximately 9.5% to 12.0%. 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 fourth quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, March 12, 2026, 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 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 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 estimate.

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 sales excluding Control Devices, 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 EBITDA excluding Control Devices, adjusted debt, net debt, adjusted net debt, adjusted cash, free cash flow, and adjusted 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.

Sales excluding Control Devices, 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 EBITDA excluding Control Devices, adjusted debt, net debt, adjusted net debt, adjusted cash, free cash flow, and adjusted free cash flow should not be considered in isolation or as a substitute for sales, 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.

 

CONSOLIDATED BALANCE SHEETS
(in thousands)		December 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$           66,252		$           71,832
Accounts receivable, less reserves of $383 and $1,060, respectively		131,430		137,766
Inventories, net		132,673		151,337
Prepaid expenses and other current assets		31,514		26,579
Total current assets		361,869		387,514
Long-term assets:
Property, plant and equipment, net		78,922		97,667
Intangible assets, net		37,973		39,677
Goodwill		37,590		33,085
Operating lease right-of-use asset		12,513		10,050
Investments and other long-term assets, net		22,321		53,563
Total long-term assets		189,319		234,042
Total assets		$         551,188		$         621,556
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$           82,235		$           83,478
Accrued expenses and other current liabilities		75,321		66,494
Total current liabilities		157,556		149,972
Long-term liabilities:
Revolving credit facility		180,942		201,577
Deferred income taxes		9,972		5,321
Operating lease long-term liability		9,014		6,484
Other long-term liabilities		13,925		12,942
Total long-term liabilities		213,853		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 28,018 and 27,695 shares outstanding at December 31, 2025 and December 31, 2024, respectively, with no stated value		—		—
Additional paid-in capital		219,186		225,712
Common Shares held in treasury, 948 and 1,271 shares at December 31, 2025 and December 31, 2024, respectively, at cost		(27,457)		(38,424)
Retained earnings		77,150		179,985
Accumulated other comprehensive loss		(89,100)		(122,013)
Total shareholders' equity		179,779		245,260
Total liabilities and shareholders' equity		$         551,188		$         621,556

 

CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended December 31, (in thousands, except per share data)		2025		2024		2023
Net sales		$         861,263		$         908,295		$         975,818
Costs and expenses:
Cost of goods sold		690,109		719,042		774,512
Selling, general and administrative		125,605		117,460		117,395
Impairment of Control Devices assets		21,628		—		—
Design and development		62,527		72,174		71,075
Operating (loss) income		(38,606)		(381)		12,836
Interest expense, net		13,578		14,447		13,000
Equity in (earnings) loss of investee		(340)		1,292		522
Other expense (income), net		3,608		(2,523)		1,236
Loss before income taxes		(55,452)		(13,597)		(1,922)
Provision for income taxes		47,383		2,927		3,261
Net loss		$       (102,835)		$         (16,524)		$           (5,183)
Loss per share:
Basic		$             (3.70)		$             (0.60)		$             (0.19)
Diluted		$             (3.70)		$             (0.60)		$             (0.19)
Weighted-average shares outstanding:
Basic		27,797		27,596		27,443
Diluted		27,797		27,596		27,443

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended December 31, (in thousands)		2025		2024		2023
OPERATING ACTIVITIES:
Net loss		$              (102,835)		$                (16,524)		$                  (5,183)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation		23,731		26,140		26,749
Amortization, including accretion and write-off of deferred financing costs		9,955		8,852		8,132
Deferred income taxes		37,079		(5,742)		(4,038)
Impairment of Control Devices assets		21,628		—		—
(Gain) loss of equity method investee		(340)		1,292		522
Loss (gain) on sale of fixed assets		146		257		(860)
Share-based compensation expense		4,801		4,094		3,322
Excess tax deficiency related to share-based compensation expense		475		248		230
Changes in operating assets and liabilities:
Accounts receivable, net		17,341		20,170		(5,854)
Inventories, net		30,765		26,904		(31,563)
Prepaid expenses and other assets		(7,489)		877		16,625
Accounts payable		(8,780)		(24,624)		1,090
Accrued expenses and other liabilities		7,545		5,804		(4,226)
Net cash provided by operating activities		34,022		47,748		4,946
INVESTING ACTIVITIES:
Capital expenditures, including intangibles		(21,850)		(24,303)		(38,498)
Proceeds from sale of fixed assets		399		385		1,869
Investment in venture capital fund, net		(372)		(550)		(350)
Net cash used for investing activities		(21,823)		(24,468)		(36,979)
FINANCING ACTIVITIES:
Revolving credit facility borrowings		49,000		135,500		117,369
Revolving credit facility payments		(73,191)		(121,500)		(96,568)
Proceeds from issuance of debt		19,888		31,661		35,757
Repayments of debt		(19,882)		(33,745)		(35,102)
Other financing costs		(777)		—		(2,251)
Repurchase of Common Shares to satisfy employee tax withholding		(340)		(795)		(1,720)
Net cash (used for) provided by financing activities		(25,302)		11,121		17,485
Effect of exchange rate changes on cash and cash equivalents		7,523		(3,410)		591
Net change in cash and cash equivalents		(5,580)		30,991		(13,957)
Cash and cash equivalents at beginning of period		71,832		40,841		54,798
Cash and cash equivalents at end of period		$                 66,252		$                 71,832		$                 40,841
Supplemental disclosure of cash flow information:
Cash paid for interest		$                 14,166		$                 15,458		$                 13,007
Cash paid for income taxes, net		$                 10,337		$                   9,255		$                 10,302

 

Regulation G Non-GAAP Financial Measure Reconciliations
Exhibit 1 – Reconciliation of Adjusted Gross Profit
(USD in millions)	Q4 2024		2024		Q4 2025		2025
Gross Profit	$         42.7		$      189.3		$         33.2		$      171.2
Add: Pre-Tax Business Realignment Costs	0.4		0.5		0.1		2.4
Adjusted Gross Profit	$         43.1		$      189.8		$         33.2		$      173.6
Exhibit 2 - Reconciliation of Adjusted Operating Income (Loss)
(USD in millions)	Q4 2024		2024		Q4 2025		2025
Operating Income (Loss)	$       (4.4)		$       (0.4)		$     (29.5)		$       (38.6)
Add: Pre-Tax Business Realignment Costs	0.4		2.6		(0.1)		6.4
Add: Pre-Tax Environmental Remediation Costs	—		0.2		—		—
Add: Pre-Tax Strategic Review Costs	—		—		1.3		6.0
Add: Pre-Tax Share-Based Compensation Accelerated Vesting	—		—		—		0.3
Add: Pre-Tax Impairment of Control Devices Assets	—		—		21.6		21.6
Adjusted Operating Income (Loss)	$       (4.0)		$         2.4		$       (6.7)		$         (4.3)

 

Exhibit 3 – Reconciliation of Adjusted Tax Rate
Reconciliation of Q4 2025 Adjusted Tax Rate
(USD in millions)	Q4 2025		Tax Rate
Loss Before Tax	$          (31.0)
Add: Pre-Tax Business Realignment Costs	(0.1)
Add: Pre-Tax Strategic Review Costs	1.3
Add: Pre-Tax Deferred Financing Fee Write Off	0.2
Add: Pre-Tax Impairment of Control Devices Assets	21.6
Adjusted Loss Before Tax	$            (8.0)
Income Tax Expense	$           45.9		nm
Add: Tax Impact from Pre-Tax Adjustments	5.3
Add: After-Tax Impact of Valuation Allowances, net	(44.5)
Adjusted Income Tax Expense on Adjusted Loss Before Tax	$             6.7		(83.3) %
Reconciliation of YTD 2025 Adjusted Tax Rate
(USD in millions)	2025		Tax Rate
Loss Before Tax	$          (55.5)
Add: Pre-Tax Business Realignment Costs	6.4
Add: Pre-Tax Deferred Financing Fee Write Off	0.2
Add: Pre-Tax Impairment of Control Devices Assets	21.6
Add: Pre-Tax Strategic Review Costs	6.0
Add: Pre-Tax Share-Based Compensation Accelerated Vesting	0.3
Adjusted Loss Before Tax	$          (20.9)
Income Tax Expense	47.4		(85.4) %
Add: Tax Impact from Pre-Tax Adjustments	8.1
Add: After-Tax Impact of Valuation Allowances, net	(44.5)
Adjusted Income Tax Expense	$            11.0		(52.7) %

 

Exhibit 4 - Reconciliation of Adjusted Net Loss and EPS
Reconciliation of Q4 2025 Adjusted Net Income and EPS
(USD in millions, except EPS)	Q4 2025		Q4 2025 EPS
Net Loss	$           (76.9)		$           (2.76)
Add: After-Tax Business Realignment Costs	(0.1)		—
Add: After-Tax Deferred Financing Fee Write Off	0.1		0.01
Add: After-Tax Strategic Review Costs	1.0		0.04
Add: After-Tax Impairment of Control Devices Assets	16.7		0.60
Add: After-Tax Impact of Valuation Allowances, net	44.5		1.60
Adjusted Net Loss	$           (14.7)		$           (0.53)
Reconciliation of Full-Year 2025 Adjusted Net Income and EPS
(USD in millions, except EPS)	2025		2025 EPS
Net Loss	$          (102.8)		$           (3.70)
Add: After-Tax Business Realignment Costs	4.8		0.17
Add: After-Tax Deferred Financing Fee Write Off	0.1		0.01
Add: After-Tax Share-Based Compensation Accelerated Vesting	0.2		0.01
Add: After-Tax Impact of Valuation Allowances, net	44.5		1.60
Add: After-Tax Impairment of Control Devices Assets	16.7		0.60
Add: After-Tax Strategic Review Costs	4.6		0.17
Adjusted Net Loss	$           (31.9)		$           (1.15)

 

Exhibit 5 – Reconciliation of Adjusted EBITDA
(USD in millions)		Q4 2024		2024		Q1 2025		Q2 2025		Q3 2025		Q4 2025		2025
Loss Before Tax		$     (6.2)		$   (13.6)		$     (5.6)		$     (9.1)		$     (9.7)		$   (31.0)		$     (55.5)
Interest expense, net		3.4		14.4		3.2		3.1		3.8		3.5		13.6
Depreciation and amortization		8.3		34.3		7.3		7.6		9.5		8.1		32.5
EBITDA		$      5.5		$     35.1		$      4.8		$      1.6		$      3.6		$   (19.4)		$       (9.4)
Add: Pre-Tax Business Realignment Costs		0.4		2.6		2.8		1.7		2.1		(0.1)		6.4
Add: Pre-Tax Environmental Remediation Costs		—		0.2		—		—		—		—		—
Add: Pre-Tax Strategic Review Costs		—		—		—		1.0		3.7		1.3		6.0
Add: Pre-Tax Share-Based Compensation Accelerated Vesting		—		—		—		0.3		—		—		0.3
Add: Pre-Tax Impairment of Control Devices Assets		—		—		—		—		—		21.6		21.6
Adjusted EBITDA		$      6.0		$     37.9		$      7.6		$      4.6		$      9.3		$      3.4		$      25.0

 

Exhibit 6 – Reconciliation of Segment Adjusted Operating Income (Loss)
Reconciliation of Control Devices Adjusted Operating Income (Loss)
(USD in millions)	Q4 2024		2024		Q4 2025		2025
Control Devices Operating Income (Loss)	$        (1.8)		$          6.2		$       (22.9)		$      (17.9)
Add: Pre-Tax Environmental Remediation Costs	—		0.2		—		—
Add: Pre-Tax Business Realignment Costs	0.2		0.2		(0.2)		0.7
Add: Pre-Tax Impairment of Control Devices Assets	—		—		21.6		21.6
Control Devices Adjusted Operating Income (Loss)	$        (1.6)		$          6.6		$         (1.5)		$          4.4
Reconciliation of Electronics Adjusted Operating Income
(USD in millions)	Q4 2024		2024		Q4 2025		2025
Electronics Operating Income	$          5.1		$        25.6		$          0.2		$        14.3
Add: Pre-Tax Business Realignment Costs	0.2		2.3		0.1		3.8
Electronics Adjusted Operating Income	$          5.3		$        27.9		$          0.3		$        18.1

 

Exhibit 7 – Reconciliation of Sales Excluding Control Devices
(USD in millions)		YTD 2025
Sales		$      861.3
Less: Control Devices Sales		(274.5)
Add: Inter-segment Sales to Control Devices		24.7
Sales Excluding Control Devices		$      611.5
Exhibit 8 – Reconciliation of Adjusted EBITDA Excluding Control Devices
(USD in millions)		YTD 2025
Adjusted EBITDA		$        25.0
Less: Control Devices Adjusted EBITDA		(10.8)
Adjusted EBITDA Excluding Control Devices		$        14.2

 

Exhibit 9 – Reconciliation of Adjusted Free Cash Flow
(USD in millions)	Q4 2024		YTD 2024		Q4 2025		YTD 2025
Net Cash Provided by Operating Activities	$             19.2		$             47.7		$               8.8		$             34.0
Capital Expenditures, including Intangibles	(5.3)		(24.3)		(6.2)		(21.9)
Proceeds from Sale of Fixed Assets	0.1		0.4		0.1		0.4
Free Cash Flow	$             14.1		$             23.8		$               2.7		$             12.6
Business Realignment Related Payments	$               0.4		$               2.6		$               0.1		$               5.7
Strategic Review Cost Related Payments	0.0		0.0		0.0		0.7
Adjusted Free Cash Flow	$             14.5		$             26.4		$               2.8		$             19.0

 

Exhibit 10 – Reconciliation of Net Debt
(USD in millions)	December 31, 2024		December 31, 2025
Total Debt	$            201.6		$               180.9
Cash and Cash Equivalents	$              71.8		$                 66.3
Net debt	$            129.7		$               114.7

 

Exhibit 11 – Reconciliation of Compliance Leverage Ratio
Reconciliation of Adjusted EBITDA for Compliance Calculation
(USD in millions)		Q1 2025		Q2 2025		Q3 2025		Q4 2025
Loss Before Tax		(5.6)		(9.1)		(9.7)		(31.0)
Interest Expense, net		3.2		3.1		3.8		3.5
Depreciation and Amortization		7.3		7.6		9.5		8.1
EBITDA		$           4.8		$           1.6		$           3.6		$        (19.4)
Compliance adjustments:
Add: Non-Cash Impairment Charges and Write-offs or Write Downs		—		0.1		0.1		21.7
Add: Adjustments from Foreign Currency Impact		(0.4)		3.4		2.4		(1.9)
Add: Extraordinary, Non-recurring or Unusual Items		0.1		—		0.8		1.2
Add: Cash Restructuring Charges		2.8		1.7		2.1		(0.6)
Add: Charges for Transactions, Amendments, and Refinances		0.3		1.4		3.7		1.5
Add: Adjustment to Autotech Fund II Investment		(0.3)		(0.1)		0.2		(0.2)
Add: Share Based Compensation		1.1		1.4		1.1		1.1
Add:  Accrual-based Expenses		2.2		0.5		1.5		1.6
Less: Cash Payments for Accrual-based Expenses		(1.3)		—		(0.1)		—
Adjusted EBITDA (Compliance)		$           9.4		$         10.0		$         15.4		$           5.1
Adjusted TTM EBITDA (Compliance)		$         44.2		$         37.3		$         43.9		$         39.8

 

Reconciliation of Adjusted Cash for Compliance Calculation
(USD in millions)	Q1 2025		Q2 2025		Q3 2025		Q4 2025
Total Cash and Cash Equivalents	$         79.1		$         49.8		$         54.0		$         66.3
Less: 35% of Cash in Foreign Locations	(23.3)		(13.4)		(16.4)		20.9
Total Adjusted Cash (Compliance)	$         55.8		$         36.4		$         37.6		$         45.3
Reconciliation of Adjusted Debt for Compliance Calculation
(USD in millions)	Q1 2025		Q2 2025		Q3 2025		Q4 2025
Total Debt	$       203.2		$       164.4		$       171.1		$       180.9
Outstanding Letters of Credit	1.6		1.5		1.5		2.1
Total Adjusted Debt (Compliance)	$       204.8		$       165.9		$       172.6		$       183.0
Adjusted Net Debt (Compliance)	$       149.0		$       129.5		$       135.0		$       137.7
Compliance Leverage Ratio (Net Debt / TTM EBITDA)	3.37x		3.47x		3.08x		3.46x
Compliance Leverage Ratio Maximum Requirement	6.00x		5.50x		4.50x		3.75x

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/stoneridge-reports-fourth-quarter-and-full-year-2025-results-302711631.html

SOURCE Stoneridge, Inc.

FAQ

What were Stoneridge (SRI) fourth quarter 2025 sales and net loss?

Stoneridge reported Q4 2025 sales of $205.2 million and a net loss of $(76.9) million. According to the company, the loss includes a pre-tax impairment of Control Devices assets and tax valuation allowances that materially affected results.

How much did MirrorEye revenue grow for Stoneridge (SRI) in 2025?

MirrorEye revenue grew 69% to $111 million in 2025. According to the company, growth was driven by European OEM ramps, higher take rates, and two new North American program launches.

What guidance did Stoneridge (SRI) issue for full-year 2026 revenue and EBITDA?

Stoneridge guided 2026 revenue of $625M–$650M (midpoint $638M) and adjusted EBITDA of $20M–$25M. According to the company, guidance assumes conservative OEM volumes and MirrorEye growth of at least 45%.

Why did Stoneridge (SRI) record impairment and valuation allowances in 2025?

The company recorded a pre-tax impairment of $21.6 million related to Control Devices and tax valuation allowances of $44.5 million. According to the company, these were non-recurring items tied to the Control Devices sale and tax positions.

How strong is Stoneridge's (SRI) 2027 financial target and rationale?

Stoneridge targets at least $715 million revenue and $44 million EBITDA in 2027. According to the company, this reflects MirrorEye ramps, improving end markets, and contribution from aftermarket and Brazilian OEM growth.

What is Stoneridge's (SRI) cash, debt and covenant position at year-end 2025?

As of Dec 31, 2025, Stoneridge had $66.3 million cash and $180.9 million total debt (net debt $114.7 million). According to the company, adjusted leverage was 3.46x versus a covenant limit of 3.75x after a credit facility amendment.