Stoneridge Reports Third Quarter 2026 Results

Higher sales expectations accompany lower margin guidance as material costs, warranty obligations and inventory actions weigh on profitability.

Rhea-AI Summary

Stoneridge (SRI) reported third-quarter 2026 adjusted revenue of $180.0 million, alongside a wider reported loss from continuing operations. Adjusted revenue rose 29.9% year over year; reported sales were $155.8 million after a $24.2 million arbitration-related reduction. The net loss widened to $22.9 million, or $0.81 per diluted share, from $8.9 million, or $0.32. Adjusted net income reached $1.6 million versus a $7.6 million loss.

Adjusted EBITDA rose 41.7% to $7.3 million, but adjusted gross margin fell to 19.9% from 23.7%. Additional vision-system orders are expected to generate approximately $180 million in incremental sales through 2028. Stoneridge raised full-year adjusted revenue guidance to $690 million–$700 million from $645 million–$670 million, while expecting adjusted EBITDA at the bottom of its unchanged $20 million–$25 million range. Net debt fell $47.6 million from year-end to $80.2 million.

13 points · 2 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Additional vision-system orders are expected to generate approximately $180 million in incremental sales through 2028. 1.1× market cap
• Major point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted revenue guidance increased to $690 million–$700 million from $645 million–$670 million.
• Moderate pointAdjusted revenue rose 29.9% to $180.0 million in the third quarter versus 2025.
• Moderate pointAdjusted net income reached $1.6 million, or $0.06 per diluted share, versus a $7.6 million loss.
• Moderate pointAdjusted EBITDA increased 41.7% to $7.3 million; margin reached 4.1% versus 3.7% a year earlier.
• Moderate pointNet debt declined $47.6 million from December 31, 2025, to $80.2 million at September 30, 2026.
• Moderate pointSelling, general and administrative expenses fell 317 basis points to 13.1% of adjusted sales year over year.

6 minor points

• Minor pointElectronics sales increased 30.5% to $158.6 million versus the third quarter of 2025.
• Minor pointStoneridge Brazil sales increased 25.3% to $21.5 million versus the third quarter of 2025.
• Minor pointMirrorEye recorded quarterly revenue of more than $37 million, a quarterly record.
• Minor point. Forward-looking: it has not happened yet and may not happen.Stoneridge remains on track to deliver over $5 million in cost savings in 2026.
• Minor pointAdjusted corporate operating loss narrowed to $7.1 million from $9.1 million a year earlier.
• Minor pointCash and cash equivalents increased to $63.446 million from $53.057 million at December 31, 2025.

Negative

• Major pointPM sensor arbitration award totaled €22.5 million, approximately $25.5 million, including interest and costs. 16% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted gross margin guidance fell to 20.5%–21.0% from 21.5%–22.0%.
• Moderate pointContinuing-operations net loss widened to $22.9 million, or $0.81 per diluted share, versus $8.9 million, or $0.32.
• Moderate pointAdjusted gross margin declined to 19.9% from 23.7% in the third quarter of 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA is now expected at the bottom of the $20 million–$25 million range.
• Moderate pointCredit Facility borrowings are current liabilities, with maturity on July 1, 2027; refinancing remains in process.

4 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted operating margin guidance fell to negative 0.5%–0.0% from 0.0%–0.5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA margin guidance declined to 2.9%–3.6% from 3.1%–3.7%.
• Minor pointElectronics adjusted operating margin fell 217 basis points to 3.4% year over year.
• Minor pointBrazil adjusted operating margin fell 411 basis points to 11.5% year over year.

News Explained

The company faces a conditional cash award payment, while $143.7 million in credit-facility debt matures July 1, 2027 and refinancing is underway.

A former customer received an arbitration award of €22.5 million (about $25.5 million) on November 2, 2026 over legacy PM-sensor warranty claims; Stoneridge disputes the ruling and is evaluating options, but says it may have to pay from cash if an appeal fails.

The potential $25.5 million payment compares with cash and equivalents of $63.4 million at September 30, 2026; that balance predates the ruling, and payment timing remains for discussion with the former customer.

Stoneridge reports that its $143.7 million credit-facility borrowing is classified as current and matures on July 1, 2027; it expects to refinance and says a global refinancing process is underway.

Key Figures

Adjusted Q3 revenue: $180.0 million, up 29.9% Net loss from continuing operations: $22.9 million Adjusted EBITDA: $7.3 million, up 41.7% +5 more

Adjusted Q3 revenue

$180.0 million, up 29.9%

Third quarter 2026

Net loss from continuing operations

$22.9 million

Third quarter 2026

Adjusted EBITDA

$7.3 million, up 41.7%

Third quarter 2026

Arbitration-related sales reduction

$24.2 million

Recognized in third-quarter results

Arbitration award

€22.5 million (approximately $25.5 million)

Includes interest and costs

Additional vision-systems orders

Approximately $180 million

Cumulative incremental sales expected through 2028

2026 adjusted sales guidance

$690 million to $700 million

Updated from $645 million to $670 million

2026 adjusted EBITDA guidance

$20 million to $25 million

Expected at the bottom end of the prior range

Previous Earnings Reports

1 past event · Latest: Aug 05

Same Type 1 event

1. Aug 05

   Quarterly earnings

   24h Move

   -2.8%

   Reaffirmed $645–$670 million 2026 adjusted revenue guidance, the baseline raised in the current report.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, diluted share, working capital, current liability, +1 more

5 terms

non-gaap financial

"furnishing non-GAAP consolidated and segment-level financial measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

diluted share financial

"$0.81 per diluted share"

Diluted share count is the total number of company shares that would exist if all potential claims that can become stock—such as employee stock options, warrants and convertible bonds—were exercised or converted. Investors use diluted shares to see a more conservative view of ownership and per-share metrics (like earnings per share), because it’s like slicing a cake into more pieces: the same profit spread over more slices makes each slice smaller.

working capital financial

"tighter control of working capital during the year"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

current liability financial

"classified as a current liability"

An obligation a company must settle within one year (or within its normal operating cycle if that is longer) using cash, goods, or services. Common examples are accounts payable, short-term loans, accrued expenses, and the portion of long-term debt due within the next 12 months; on the balance sheet these items are grouped separately from long-term liabilities to show near-term claims on assets. The one-year cutoff (or operating-cycle test) determines classification, so the same contract can appear as a current liability today and a long-term liability once the short-term portion is paid or reclassified.

oem technical

"additional orders for existing vision systems in the OEM market"

OEM stands for Original Equipment Manufacturer, which is a company that produces parts or components used in the final products made by other companies. For investors, understanding OEMs is important because their performance can impact the supply chain and overall success of major industries, especially those relying on specialized parts. Think of OEMs as the suppliers that provide the building blocks for larger products, like the engine parts for a car.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Continued Sales Momentum and Cost Discipline Highlight 3Q Progress

NOVI, Mich., Nov. 4, 2026 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the third quarter ended September 30, 2026.

2026 Third Quarter Highlights:

Continued sales growth and commercial momentum:

• Reported Q3 sales growth of 12.4% YoY to $155.8 million, which reflects a $24.2 million reduction to net sales for the PM sensor arbitration award described below. On an adjusted basis, revenue improved 29.9% to $180.0 million;
• Record quarterly revenue for MirrorEye (>$37 million) and Stoneridge Brazil ($21.5 million);
• Stoneridge Electronics secures significant additional orders for existing vision systems in the OEM market which are expected to generate approximately $180 million in cumulative incremental sales through 2028.

Disciplined execution yields improved adjusted financial results:

• SG&A as a percentage of adjusted revenue improved 317 basis points YoY to 13.1%; on track to deliver over $5 million in cost savings in 2026;
• Net loss from continuing operations of $22.9 million, or $0.81 per diluted share, versus a net loss of $8.9 million, or $0.32 per diluted share, in the prior year. Adjusted net income from continuing operations was $1.6 million, or $0.06 per diluted share, versus an adjusted net loss of $7.6 million, or $0.27 per diluted share in the third quarter of 2025;
• Adjusted EBITDA of $7.3 million, representing 41.7% growth versus the third quarter of 2025

Revising full-year guidance:

• Adjusted sales in the range of $690 million to $700 million (versus the prior range of $645 million to $670 million) on improved market demand, continued product momentum and year-to-date outperformance at Stoneridge Brazil
• Adjusted EBITDA now anticipated at the bottom end of the prior $20 million to $25 million range driven by higher transitory costs, inflationary pressures and unfavorable currency impacts

"We delivered another quarter of strong execution, with adjusted sales growth of nearly 30% and adjusted EBITDA growth of more than 40% year over year, despite increasing inflationary pressures and supply chain disruption," said Natalia Noblet, president and chief executive officer. "During the third quarter, we also resolved several legacy customer warranty matters and completed a review of obsolete inventory across our Electronics Division. Finally, the approximate $180 million of additional vision systems business further validates our technology and strengthens our position in the OEM market. We are encouraged by our progress, and our strengthened leadership team remains intensely focused on execution, mitigating inflationary headwinds and delivering results as global vehicle production volumes recover from the cyclical trough."

Results for the third quarter of 2026 were adversely affected by a pre-tax charge of $24.2 million, recorded as a reduction to net sales, related to an adverse ruling received on November 2, 2026 in the previously disclosed arbitration proceeding brought by a former customer of our Control Devices business regarding legacy PM sensor product warranty claims. The Company exited the PM sensor product line in 2019 and divested its Control Devices business in the first quarter of 2026. The arbitration panel awarded the former customer €22.5 million (approximately $25.5 million), including interest and costs. Because the ruling provided additional evidence about conditions that existed at September 30, 2026, the charge was recognized in third quarter results. The Company disagrees with the ruling and continues to believe the claims lack merit, and it is evaluating its options with respect to the award. However, there can be no assurance that the Company will be successful in appealing the decision and may ultimately be obligated to satisfy the award without modification. Provided that an appeal is not successful, the Company expects to pay the award from cash on hand, including cash held outside the United States, and intends to hold discussions with the former customer regarding the timing of payments.

Due to the material impact this charge had on reported third quarter results, the Company is also furnishing non-GAAP consolidated and segment-level financial measures, which it believes are useful in assessing the Company's core operating performance. The exhibits attached hereto provide reconciliation details on normalizing adjustments of non-GAAP financial measures used in this press release.

Third Quarter GAAP and Non-GAAP Results & Commentary

(in millions, except percentages and per share data)	GAAP Results								Non-GAAP Results
	Three Months Ended September 30, 2026								Three Months Ended September 30, 2026
					$		%						$		%
	2026		2025		Change		Change		2026		2025		Change		Change
Net Sales	$ 155.8		$ 138.6		$   17.2		9.5 %		$ 180.0		$ 138.6		$   41.4		29.9 %
Gross Profit	11.5		32.1		(20.6)		(57.5) %		35.7		32.8		2.9		8.9 %
Gross Margin %	7.4 %		23.1 %				(1,575) bps		19.9 %		23.7 %				(382) bps
Income (loss) from Operations	(23.8)		(1.4)		(22.4)		(2916.8) %		0.8		0.3		0.4		140.4 %
Income (loss) before taxes from continuing operations	(25.6)		(6.9)		(18.7)		(1779.8) %		(1.0)		(5.2)		4.1		79.7 %
(Benefit) provision for income taxes from continuing operations	(2.7)		2.0		(4.7)		(173.3) %		(2.7)		2.5		(5.1)		(209.6) %
Net Income (loss) from continuing operations	(22.9)		(8.9)		(14.0)		(855.3) %		1.6		(7.6)		9.3		121.5 %
Net Income (loss) per diluted common share from continuing operations	(0.81)		(0.32)		(0.49)		(845.1) %		0.06		(0.27)		0.33		121.1 %
Weighted-average common shares outstanding	28.4		27.9		0.5		1.9 %		28.4		27.9		0.5		1.9 %
Adjusted consolidated EBITDA									$   7.3		$   5.2		2.2		41.7 %
Adjusted consolidated EBITDA %									4.1 %		3.7 %				34 bps

Consolidated net sales from continuing operations was $155.8 million, an increase of 9.5% YoY, including a $24.2 million reduction to net sales for the PM sensor arbitration award. Adjusted consolidated net sales from continuing operations totaled $180.0 million, an increase of 29.9%. On a core basis, excluding a modest currency translation headwind and Mexico Manufacturing Agreement revenue of $6.3 million related to the sale of the Control Devices business, revenue improved 25.5% YoY.  The North American and European commercial vehicle markets and Stoneridge Brazil were the primary contributors to growth in the  third quarter.

Gross margin decreased 1,575 basis points to 7.4% from 23.1% in the third quarter of 2025. This includes the reduction to net sales for the PM sensor arbitration award. On an adjusted basis, gross margin of 19.9% declined 382 basis points from 23.7% in the year ago period as cost leverage on higher sales and benefits from targeted expense control initiatives were more than offset by a combination of higher material costs, the resolution of various legacy warranty obligations, strategic inventory-related actions and adverse sales mix in the Stoneridge Brazil business. SG&A as a percentage of adjusted sales declined 317 basis points versus the year ago period to 13.1%, driven by successful overhead and corporate expense reduction efforts.

Consolidated net loss from continuing operations totaled $22.9 million, or $0.81 per diluted share, compared to a net loss of $8.9 million, or $0.32 per diluted share, for the quarter ended September 30, 2025. On an adjusted basis, consolidated net income from continuing operations totaled $1.6 million, or $0.06 per diluted share, compared to an adjusted net loss from continuing operations of $7.6 million, or $0.27 per diluted share, for the prior year quarter.

Adjusted EBITDA totaled $7.3 million, or 4.1% of adjusted sales, compared to $5.2 million, or 3.7% of sales, in the year ago period.

Third Quarter GAAP and Non-GAAP Segment Results & Commentary

(in millions, except percentages and per share data)	GAAP Revenue						Non-GAAP Revenue
	Three Months Ended September 30, 2026						Three Months Ended September 30, 2026
													Constant
					%						%		Currency
	2026		2025		Change		2026		2025		Change		vs. 2025
Electronics	$   158.6		$   121.5		30.5 %		$   158.6		$   121.5		30.5 %		31.6 %
Stoneridge Brazil	21.5		17.1		25.3 %		21.5		17.1		25.3 %		19.3 %
Arbitration Award Reduction to Net Sales	(24.2)		—				—		—
Consolidated Net Sales	155.8		138.6		12.4 %		180.0		138.6		29.9 %		30.1 %

(in millions, except percentages and per share data)
	Operating Income
	Three Months Ended September 30, 2026
	GAAP Results						Non-GAAP Results
					%						%
	2026		2025		Change		2026		2025		Change
Electronics	$  5.4		$   5.9		(7.6) %		$  5.4		$   6.7		(20.5) %
% of segment sales	3.4 %		3.7 %		(32) bps		3.4 %		5.6 %		(217) bps
Stoneridge Brazil	2.5		2.7		(7.6) %		2.5		2.7		(7.6) %
% of segment sales	11.5 %		12.5 %		(95) bps		11.5 %		15.7 %		(411) bps
Corporate	(31.6)		(10.0)		(237.5) %		(7.1)		(9.1)		22.3 %
Consolidated Operating Income	$ (23.8)		$  (1.4)		(7011.7) %		$   0.8		$   0.3		140.4 %
% of consolidated net sales	(15.3) %		(0.8) %		(1,447) bps		0.4 %		0.2 %		20 bps

Electronics third quarter sales of $158.6 million increased by $37.1 million, or 30.5%, relative to the third quarter of 2025. Excluding an unfavorable foreign currency translation impact of $1.4 million and Mexico Manufacturing Agreement revenue related to the sale of the Control Devices business, sales improved 26.4% YoY. Revenue growth versus the third quarter of 2025 was primarily driven by increased volume in the North American and European commercial vehicle markets. Third quarter adjusted operating margin decreased by 217 basis points YoY to 3.4% as the benefits of a higher revenue base and implemented cost initiatives were more than offset by the cumulative impacts of higher material costs, costs to address various legacy warranty obligations, and strategic inventory-related actions.

Stoneridge Brazil third quarter sales of $21.5 million increased by $4.3 million, or 25.3%. Excluding a favorable foreign currency translation impact of $1.0 million, sales improved by 19.3%. Higher OEM sales were the primary driver of growth during the quarter. Third quarter adjusted operating income of $2.5 million, or 11.5% of sales, decreased 411 basis points compared to the third quarter of 2025 as adverse sales mix and higher overhead costs more than offset increased sales volume.

Cash and Debt Balances

As of September 30, 2026, cash and cash equivalents totaled $63.4 million with total debt of $143.7 million, resulting in net debt of $80.2 million. The $47.6 million decrease in net debt compared to December 31, 2025 reflects the deployment of proceeds from the sale of the Control Devices business in January and tighter control of working capital during the year. The Company's outstanding borrowings under its Credit Facility are classified as a current liability and the Credit Facility matures on July 1, 2027. The company expects to refinance the Credit Facility, and is currently engaged in a global refinancing process.

2026 Outlook & Management Commentary

Based on year-to-date results and current expectations for the fourth quarter, the Company is revising its 2026 guidance ranges. "During the third quarter we made tangible progress realigning our cost structure, which should provide a durable foundation for profitable growth over the long term," said Noblet. "Given strengthening demand across the European and North American commercial vehicle markets, which is anticipated to carry into 2027, year-to-date outperformance in our Brazilian business, and the demonstrated success of our innovative safety and efficiency enhancing technologies, we now expect 2026 adjusted revenue to exceed our prior expectations. That said, given the proactive measures we have undertaken to resolve several legacy warranty and inventory-related matters that were not envisioned in our original guidance and uncertainty created by ongoing inflationary cost pressures, in particular for semiconductors,  and unfavorable currency movements, we now anticipate that full year adjusted EBITDA will come in at the bottom end of our prior expectations."

	2026 FULL YEAR GUIDANCE
(in millions, except percentages and per share data)
	Previous				Updated
Adjusted Revenue ($M)	$645	—	$670		$690	—	$700
Adjusted Gross Margin	21.5 %	—	22.0 %		20.5 %	—	21.0 %
Adjusted Operating Margin	0.0 %	—	0.5 %		(0.5) %	—	0.0 %
Adjusted EBITDA ($M)	$20	—	$25		$20	—	$25
%	3.1 %	—	3.7 %		2.9 %	—	3.6 %

The Company has not provided a reconciliation of its full-year 2026 guidance for adjusted revenue, adjusted gross margin, adjusted operating margin, and adjusted EBITDA (or adjusted EBITDA margin) to the most directly comparable GAAP financial measures because the Company is unable to provide such reconciliations without unreasonable effort. This is due to the inherent difficulty of forecasting with the required precision the timing and amount of various items that have not yet occurred, are out of the Company's control, or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable reconciling information, which could be material to future results calculated in accordance with GAAP. The Company's actual results calculated in accordance with GAAP may vary materially from these non-GAAP financial measures presented herein.

Conference Call on the Web
A live webcast of Stoneridge's 2026 third quarter results conference call can be accessed at 8:00 a.m. Eastern Time on Thursday, November 5, 2026, at www.stoneridge.com. A webcast replay will be available following the conclusion of the live conference call.

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, (vi) operational expectations (vii) 2026 guidance, (viii) the arbitration award, and (ix) the refinancing of the Credit Facility. 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 or reimbursements from 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;
    
• our ability to comply with the financial covenants in, and to refinance or replace, our Credit Facility before its July 1, 2027 maturity; 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 press 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, 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 2026 and 2025 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 net debt as a supplemental measure 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 core revenue, adjusted revenue, adjusted gross profit and margin, adjusted SG&A, 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 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 revenue, 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 revenue, 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. Because not all companies calculate non-GAAP financial measures in the same manner, the non-GAAP financial measures presented in this press release may not be comparable to similarly titled measures used by other companies, and the Company's use of these measures may vary from that of other companies in its industry.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)		September 30, 2026		December 31, 2025
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$       63,446		$       53,057
Accounts receivable, less reserves of $527 and $325, respectively		140,013		89,019
Inventories, net		123,676		106,422
Prepaid expenses and other current assets		23,301		26,956
Current assets of discontinued operations		—		86,342
Total current assets		350,436		361,796
Long-term assets:
Property, plant and equipment, net		59,933		62,659
Intangible assets, net		30,852		37,632
Goodwill		36,208		37,590
Operating lease right-of-use asset		7,529		9,570
Investments and other long-term assets, net		25,206		22,167
Long-term assets of discontinued operations		—		19,702
Total long-term assets		159,728		189,320
Total assets		$      510,164		$      551,116
LIABILITIES AND SHAREHOLDERS' EQUITY
Revolving credit facility		$      143,691		$               —
Accounts payable		117,985		62,398
Accrued expenses and other current liabilities		102,387		65,132
Current liabilities of discontinued operations		—		29,955
Total current liabilities		364,063		157,485
Long-term liabilities:
Revolving credit facility		—		180,942
Deferred income taxes		4,301		9,972
Operating lease long-term liability		5,055		6,601
Other long-term liabilities		12,454		11,604
Long-term liabilities of discontinued operations		—		4,733
Total long-term liabilities		21,810		213,852
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 28,538 and 28,018 shares outstanding at September 30, 2026 and December 31, 2025, respectively, with no stated value		—		—
Additional paid-in capital		205,248		219,186
Common Shares held in treasury, 428 and 948 shares at September 30, 2026 and December 31, 2025, respectively, at cost		(9,348)		(27,457)
Retained earnings		21,044		77,150
Accumulated other comprehensive loss		(92,653)		(89,100)
Total shareholders' equity		124,291		179,779
Total liabilities and shareholders' equity		$      510,164		$      551,116

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)		2026		2025		2026		2025
Net sales		$      155,802		$      138,638		$      498,033		$      445,236
Costs and expenses:
Cost of goods sold		144,297		106,571		414,739		341,570
Selling, general and administrative		23,868		22,978		82,458		74,547
Design and development		11,423		10,524		34,788		39,057
Operating loss		(23,786)		(1,435)		(33,952)		(9,938)
Interest expense, net		2,868		3,806		8,957		10,280
Equity in (earnings) loss of investee		(914)		220		(905)		(124)
Other (income) expense, net		(138)		1,463		(317)		2,860
Loss before income taxes from continuing operations		(25,602)		(6,924)		(41,687)		(22,954)
(Benefit) provision for income taxes from continuing operations		(2,689)		1,970		1,280		5,087
Loss from continuing operations		(22,913)		(8,894)		(42,967)		(28,041)
Discontinued operations:
Loss (income) from discontinued operations, net of tax		—		477		3,322		(2,115)
Loss on disposal, net of tax		—		—		9,817		—
Total loss (income) from discontinued operations		—		477		13,139		(2,115)
Net loss		$      (22,913)		$        (9,371)		$      (56,106)		$      (25,926)
Loss per share from continuing operations:
Basic		$          (0.81)		$          (0.32)		$          (1.52)		$          (1.01)
Diluted		$          (0.81)		$          (0.32)		$          (1.52)		$          (1.01)
Income (loss) per share from discontinued operations:
Basic		$            —		$         (0.02)		$         (0.47)		$          0.08
Diluted		$            —		$         (0.02)		$         (0.47)		$          0.08
Loss per share from Stoneridge Inc.:
Basic		$         (0.81)		$         (0.34)		$         (1.99)		$         (0.93)
Diluted		$         (0.81)		$         (0.34)		$         (1.99)		$         (0.93)
Weighted-average shares outstanding:
Basic		28,387		27,859		28,176		27,776
Diluted		28,387		27,859		28,176		27,776

Regulation G Non-GAAP Financial Measure Reconciliations

Exhibit 1 – Reconciliation of Adjusted Net Sales

(USD in millions)	Q3 2025		Q3 2026
Net Sales	$        138.6		$        155.8
Add: Pre-Tax PM Soot Arbitration Judgment	$             —		24.2
Adjusted Net Sales	$        138.6		$        180.0

Exhibit 2 – Reconciliation of Adjusted Gross Profit

(USD in millions)	0		0
Gross Profit	$          32.1		$          11.5
Add: Pre-Tax Business Realignment Costs	$            0.7		—
Add: Pre-Tax PM Soot Arbitration Judgment	$             —		$          24.2
Adjusted Gross Profit	$          32.8		$          35.7

Exhibit 3 - Reconciliation of Adjusted Operating Loss

(USD in millions)	0		0
Operating Loss	$          (1.4)		$        (23.8)
Add: Pre-Tax Business Realignment Costs	1.8		—
Add: Pre-Tax Environmental Remediation Costs	—		0.3
Add: Pre-Tax PM Soot Arbitration Judgment	—		24.2
Adjusted Operating Loss	$           0.3		$           0.8

Exhibit 4 - Reconciliation of Adjusted Loss from Continuing Operations

(USD in millions)	Q3 2025		Q3 2026
Loss From Continuing Operations	$          (8.9)		$        (22.9)
Add: After-Tax Business Realignment Costs	1.3		—
Add: After-Tax Environmental Remediation Costs	—		0.3
Add: After-Tax PM Soot Arbitration Judgment	—		24.2
Adjusted Loss From Continuing Operations	$          (7.6)		$           1.6

Exhibit 5 - Reconciliation of Adjusted Net Loss

(USD in millions)	Q3 2025		Q3 2026
Net Loss	$          (9.4)		$        (22.9)
Add: After-Tax Business Realignment Costs	1.3		—
Add: After-Tax Environmental Remediation Costs	—		0.3
Add: After-Tax PM Soot Arbitration Judgment	—		24.2
Adjusted Net Loss	$          (8.1)		$           1.6

Exhibit 6 – Reconciliation of Q3 Adjusted Tax Rate

(USD in millions)	Q3 2026		Tax Rate
Loss Before Tax	$         (25.6)
Add: Pre-Tax Environmental Remediation Costs	$            0.3
Add: Pre-Tax PM Soot Arbitration Judgment	$          24.2
Adjusted Loss Before Tax	$           (1.0)
Income Tax Expense	(2.7)		10.50 %
Add: Tax Impact from Pre-Tax Adjustments	—
Adjusted Income Tax Expense on Adjusted Loss Before Tax	$          (2.7)		256.18 %

Exhibit 7 - Reconciliation of Q3 Adjusted Net Loss and EPS

(USD in millions, except EPS)	Q3 2026		Q3 2026 EPS
Net Loss	$        (22.9)		$        (22,913,310.05)
Add: After-Tax Environmental Remediation Costs	0.3
Add: After-Tax PM Soot Arbitration Judgment	24.2
Adjusted Net Loss	$           1.6		$            1,638,844.45

Exhibit 8 – Reconciliation of Adjusted EBITDA

(USD in millions)	0		0
Loss Before Income Taxes from Continuing Operations	$          (6.9)		$        (25.6)
Interest expense, net	3.8		2.9
Depreciation and amortization	6.5		5.5
EBITDA	$           3.4		$        (17.2)
Add: Pre-Tax Business Realignment Costs	1.8		—
Add: Pre-Tax Environmental Remediation Costs	—		0.3
Add: Pre-Tax PM Soot Arbitration Judgment	—		24.2
Adjusted EBITDA	$           5.2		$           7.3

Exhibit 9 – Segment Adjusted Operating Income

Reconciliation of Electronics Adjusted Operating Income
(USD in millions)	0		0
Electronics Operating Income	$           5.9		$           5.4
Add: Pre-Tax Business Realignment Costs	0.9		—
Electronics Adjusted Operating Income	$           6.7		$           5.4

Reconciliation of Stoneridge Brazil Adjusted Operating Income
(USD in millions)	0		0
Stoneridge Brazil Operating Income	$           2.7		$           2.5
Stoneridge Brazil Adjusted Operating Income	$           2.7		$           2.5

Exhibit 10 – Reconciliation of Net Debt

(USD in millions)	Q3 2025		Q3 2026
Total Debt	$        171.1		$        143.7
Cash and Cash Equivalents	49.3		63.4
Net Debt	$        121.8		$          80.2

 

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SOURCE Stoneridge, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Stoneridge's third-quarter 2026 earnings results?

Stoneridge recorded a continuing-operations net loss of $22.9 million, or $0.81 per diluted share, versus a loss of $8.9 million, or $0.32 per diluted share, a year earlier. Adjusted net income was $1.6 million, or $0.06 per diluted share, compared with an adjusted loss of $7.6 million, or $0.27 per diluted share.

What is Stoneridge's updated 2026 outlook?

Stoneridge expects full-year adjusted revenue of $690 million–$700 million, up from $645 million–$670 million, and adjusted EBITDA at the bottom of its unchanged $20 million–$25 million range. Adjusted gross margin guidance is 20.5%–21.0%, while adjusted operating margin guidance is negative 0.5%–0.0%.

Why did Stoneridge's adjusted gross margin decline in the third quarter of 2026?

Higher material costs, legacy warranty obligations, inventory-related actions and an unfavorable sales mix in Brazil more than offset benefits from higher sales and expense controls. Adjusted gross margin declined to 19.9% from 23.7% a year earlier.

How is Stoneridge addressing its upcoming Credit Facility maturity?

Stoneridge is engaged in a global refinancing process and expects to refinance its Credit Facility, which matures on July 1, 2027. Outstanding borrowings under that facility are classified as a current liability. Total debt was $143.7 million at September 30, 2026.