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Standard Motor Products, Inc. Releases First Quarter 2025 Results and Quarterly Dividend

1. SMP reported Q1 2025 net sales of $413.4 million, up nearly 25%. 2. Adjusted EBITDA margin increased to 10.4%, up 350 basis points. 3. Earnings per share grew 80% to $0.81, reflecting strong performance. 4. Acquisition of Nissens contributed $66.2 million in sales this quarter. 5. SMP maintains mid-teens growth outlook despite tariff uncertainties.

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Why Bullish?

The strong sales growth and increased earnings per share generally indicate positive market sentiment. Historical instances show that significant upward shifts in revenue tend to correlate with stock price appreciation.

How important is it?

The article highlights SMP's robust financial performance and outlook, which are important for investor confidence and market positioning.

Why Short Term?

Recent earnings releases typically impact stock prices quickly within weeks, particularly if market conditions are favorable and reflect growth projections.

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First quarter net sales of $413.4 million up 24.7%, and up 4.8% excluding Nissens First quarter adjusted EBITDA margin increased 350 basis points to 10.4% Adjusted diluted earnings per share of $0.81 in the quarter increased 80% from last year Strong North American manufacturing footprint well-positioned to help mitigate tariff impact , /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months ended March 31, 2025. Net sales for the first quarter of 2025 were $413.4 million, compared to consolidated net sales of $331.4 million during the same quarter in 2024. Earnings from continuing operations for the first quarter of 2025 was $13.7 million or $0.61 per diluted share, compared to earnings of $9.9 million or $0.44 per diluted share in the first quarter of 2024. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2025 were $18.0 million or $0.81 per diluted share, compared to $10.0 million or $0.45 per diluted share in the first quarter of 2024.  Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are very pleased with the first quarter results which exceeded our expectations.  Sales for the quarter were up nearly 25%, and excluding the impact of the recent acquisition of Nissens Automotive ("Nissens"), sales were up nearly 5%.  Additionally, adjusted diluted earnings per share were up 80% for the quarter, with strong profit performance from all segments." Within our North American aftermarket business, both segments had strong quarters.  Vehicle Control sales increased 3.7% in the first quarter, continuing the positive trend from last year.   Customer order patterns were solid as we saw steady demand for our products, which tend to be more non-discretionary in nature.  Our Temperature Control segment is off to an excellent start as sales increased 24.1%.  The strength seen in the fourth quarter has continued, driven by a combination of planned pre-season orders, which can shift between quarters in any given year, and strong ongoing customer sell-through.      For Engineered Solutions, first quarter sales declined 11.2% as softness in certain of our end markets continued. On a positive note, the customer and product mix has shown improvement, generating improved profitability on lower sales. We continue to win new business awards which bodes well for future growth as the cycle recovers. Moving to our newest segment, Nissens, we were pleased with the performance during its first full quarter of ownership, as it contributed sales of $66.2 million, with an adjusted EBITDA margin of 17.3%, slightly better than our full-year mid-teens rate expectations for the segment.  Our integration efforts are well underway, and we remain very confident in our initial target of $8-12 million in run-rate cost reduction synergies within 24 months of ownership. We look forward to updating you as we move further into the integration process and remain very excited about the future potential.    Looking at profitability, adjusted EBITDA increased to $42.8 million, up from $22.9 million last year, with just over half of the gain from Nissens and the balance from the improved performance of our other segments. Adjusted EBITDA margin climbed 350 basis points to 10.4%, due to the higher rate of Nissens, leverage on the solid sales from our North American business, and various cost containment actions, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.  From a balance sheet perspective, our cash flows and borrowings were in line with expectations.  Total net debt at quarter-end stood at $600.3 million, primarily reflecting additional borrowings related to our Nissens acquisition and seasonal working capital build.      Regarding the recently announced tariffs, we are currently assessing the impact on our business in what remains a fluid environment. We believe our diverse global footprint provides a competitive advantage.  Over half of our sales in the US are from products manufactured in North America that are USMCA-compliant and thus are currently largely tariff-free. Products sourced from China represent only about a quarter of our US sales, with the remainder coming from lower-tariffed regions. Furthermore, our recent acquisition of Nissens provides meaningful sales diversification outside of the US.  We are judiciously planning our mitigation steps, which will largely come from pass-through pricing to our customers. Regarding our outlook for the year, we maintain our previous guidance for top-line growth to be in the mid-teens, and adjusted EBITDA margin in a range of 10-11%. However, this excludes the impact of tariffs due to the ongoing uncertainty of how they will ultimately play out. We note that under a tariff passthrough, we typically see a sales increase with minimal change to profit dollars, accompanied by some degree of reduced profit margin rate. Once things stabilize and we have better clarity regarding the impact on our business performance, we expect to update our estimates.  The Board of Directors has approved payment of a quarterly dividend of 31 cents per share on the common stock outstanding, which will be paid on June 2, 2025, to stockholders of record on May 15, 2025. In closing, Mr. Sills commented, "We are excited about the strong start to 2025.  Although the macroeconomic environment may remain volatile for the foreseeable future, the underlying fundamentals of the aftermarket have proven to be resilient, both in the US and Europe, particularly in challenging times.  The largely non-discretionary nature of our business, coupled with our large North American manufacturing base mitigating tariff exposure, should provide stability as we navigate this period of uncertainty.  We remain optimistic about our long-term potential, led by the growth and synergy savings that Nissens will provide in the coming years.  We will remain focused on finding ways to drive shareholder value, and on positioning the company to take advantage of the many opportunities we see before us. As always, we thank our employees that make all this possible."   Conference Call Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, April 30, 2025.  This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q1'25 Earnings Call Earnings Webcast link.  Investors may also listen to the call by dialing 800-274-8461 (domestic) or 203-518-9814 (international).  The conference call ID code is SMP1Q2025.  Our playback will be made available for dial in immediately following the call.  For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call.  The playback number is 800-934-7884 (domestic) or 402-220-6987 (international). Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q.  By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release. Standard Motor Products, Inc. Consolidated Statements of Operations Three Months EndedMarch 31, (In thousands, except share and per share data, unaudited) 2025 2024 Net sales $              413,379 $              331,403 Cost of sales 288,657 241,881 Gross profit 124,722 89,522 Selling, general and administrative expenses 99,845 74,733 Restructuring and integration expenses 673 192 Other income, net 258 22 Operating income 24,462 14,619 Other non-operating income, net 2,248 819 Interest expense 7,761 2,067 Earnings from continuing operations before income taxes 18,949 13,371 Provision for income taxes 5,069 3,342 Earnings from continuing operations 13,880 10,029 Loss from discontinued operations, net of income taxes (1,139) (1,039) Net earnings 12,741 8,990 Net earnings attributable to noncontrolling interest 175 166 Net earnings attributable to SMP $                12,566 $                  8,824 Net earnings (loss) attributable to SMP Continuing operations $                13,705 $                  9,863 Discontinued operations (1,139) (1,039) Net earnings attributable to SMP $                12,566 $                  8,824 Per common share data Basic: Continuing operations $                    0.63 $                    0.45 Discontinued operations (0.06) (0.05) Net earnings attributable to SMP per common share $                    0.57 $                    0.40 Diluted: Continuing operations $                    0.61 $                    0.44 Discontinued operations (0.05) (0.05) Net earnings attributable to SMP per common share $                    0.56 $                    0.39 Dividend declared per common share $                    0.31 $                    0.29 Weighted average number of common shares, basic 21,886,810 21,923,830 Weighted average number of common shares, diluted 22,319,868 22,372,543 Standard Motor Products, Inc. Segment Revenues Three Months Ended March 31, (in thousands, unaudited) 2025 2024 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $              118,366 $              116,085 Electrical and Safety 58,319 52,407 Wire Sets and Other 15,657 17,032 Total Vehicle Control 192,342 185,524 Temperature Control AC System Components 67,191 49,960 Other Thermal Components 21,692 21,648 Total Temperature Control 88,883 71,608 Engineered Solutions Light Vehicle 21,404 21,803 Commercial Vehicle 18,605 22,908 Construction/Agriculture 9,408 10,076 All Other 16,555 19,484 Total Engineered Solutions 65,972 74,271 Nissens Automotive Engine Cooling 27,773 — Air Conditioning 27,166 — Engine Efficiency 11,243 — Total Nissens Automotive 66,182 — Total $              413,379 $              331,403 Standard Motor Products, Inc. Segment Operating Profit Three Months Ended March 31, (in thousands, unaudited) 2025 2024 Gross Margin Vehicle Control $                   62,161 32.3 % $                   58,899 31.7 % Temperature Control 27,598 31.0 % 19,689 27.5 % Engineered Solutions 11,709 17.7 % 10,934 14.7 % Nissens Automotive 27,838 42.1 % — — % All Other — —         Subtotal $                 129,306 31.3 % $                   89,522 27.0 % Acquisition Expenses (4,584) -1.1 % — — %         Gross Margin $                 124,722 30.2 % $                   89,522 27.0 % Selling, General & Administrative Vehicle Control $                   43,835 22.8 % $                   43,258 23.3 % Temperature Control 19,823 22.3 % 17,600 24.6 % Engineered Solutions 8,514 12.9 % 8,691 11.7 % Nissens Automotive 20,254 30.6 % — — % All Other 6,856 5,184         Subtotal $                   99,282 24.0 % $                   74,733 22.6 % Acquisition Expenses 563 0.1 % — — %         Selling, General & Administrative $                   99,845 24.2 % $                   74,733 22.6 % Operating Income Vehicle Control $                   18,326 9.5 % $                   15,641 8.4 % Temperature Control 7,775 8.7 % 2,089 2.9 % Engineered Solutions 3,195 4.8 % 2,243 3.0 % Nissens Automotive 7,584 11.5 % — — % All Other (6,856) (5,184)         Subtotal $                   30,024 7.3 % $                   14,789 4.5 % Restructuring & Integration (673) -0.2 % (192) -0.1 % Acquisition Expenses (5,147) -1.2 % — — % Other Income, Net 258 0.1 % 22 — %         Operating Income $                   24,462 5.9 % $                   14,619 4.4 % Standard Motor Products, Inc. Reconciliation of GAAP and Non-GAAP Measures (In thousands, except per share amounts, unaudited) Three Months Ended March 31, 2025 2024 Earnings from Continuing Operations Attributable To SMP GAAP Earnings from Continuing Operations $             13,705 $               9,863 Restructuring and Integration Expenses 673 192 Acquisition Expenses 5,147 — Income Tax Effect Related To Reconciling Items (1,513) (50) Non-GAAP Earnings from Continuing Operations $             18,012 $             10,005 Diluted Earnings Per Share from Continuing Operations Attributable to SMP GAAP Diluted Earnings Per Share from Continuing Operations $                 0.61 $                 0.44 Restructuring and Integration Expenses 0.03 0.01 Acquisition Expenses 0.23 — Income Tax Effect Related To Reconciling Items (0.06) — Non-GAAP Diluted Earnings Per Share from Continuing Operations $                 0.81 $                 0.45 Operating Income GAAP Operating Income $             24,462 $             14,619 Restructuring and Integration Expenses 673 192 Acquisition Expenses 5,147 — Last Twelve Months Ended Other Income, Net (258) (22) March 31, Year Ended Non-GAAP Operating Income $             30,024 $             14,789 2025 2024 December 31, 2024 EBITDA without Special Items GAAP Earnings from Continuing Operations Before Taxes $             18,949 $             13,371 $                  79,567 $                  77,978 $                   73,989 Depreciation and Amortization 10,267 7,301 34,379 29,241 31,413 Interest Expense 7,761 2,067 19,206 11,492 13,512      EBITDA 36,977 22,739 133,152 118,711 118,914 Restructuring and Integration Expenses 673 192 8,149 1,922 7,668 Acquisition Expenses 5,147 — 18,623 — 13,476 Special Items 5,820 192 26,772 1,922 21,144 EBITDA without Special Items $             42,797 $             22,931 $                159,924 $                120,633 $                 140,058 Management believes that Non-GAAP earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations which are attributable to SMP, and Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results.  Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. Standard Motor Products, Inc. Reconciliation of GAAP and Non-GAAP Measures by Segments Three Months Ended March 31, 2025 (In thousands, unaudited) VehicleControl TemperatureControl EngineeredSolutions NissensAutomotive All Other Consolidated Operating Income GAAP Operating Income $     17,782 $             7,900 $          3,176 $          2,587 $       (6,983) $           24,462 Restructuring and Integration Expenses 526 136 20 — (9) 673 Acquisition Expenses — — — 5,011 136 5,147 Other (Income) Expense, Net 18 (261) (1) (14) — (258) Non-GAAP Operating Income $     18,326 $             7,775 $          3,195 $          7,584 $       (6,856) $           30,024 EBITDA without Special Items GAAP Earnings from Continuing Operations Before Taxes $     17,046 $             7,948 $          3,431 $       (2,151) $       (7,325) $           18,949 Depreciation and Amortization 3,669 778 2,500 2,987 333 10,267 Interest Expense 1,007 539 459 5,620 136 7,761 EBITDA 21,722 9,265 6,390 6,456 (6,856) 36,977 Restructuring and Integration Expenses 526 136 20 — (9) 673 Acquisition Expenses — — — 5,011 136 5,147 Special Items 526 136 20 5,011 127 5,820 EBITDA without Special Items $     22,248 $             9,401 $        6,410 $        11,467 $       (6,729) $           42,797 % of Net Sales 11.6 % 10.6 % 9.7 % 17.3 % 10.4 % Three Months Ended March 31, 2024 (In thousands, unaudited) VehicleControl TemperatureControl EngineeredSolutions NissensAutomotive All Other Consolidated Operating Income GAAP Operating Income $     15,540 $             2,031 $          2,232 $             — $       (5,184) $           14,619 Restructuring and Integration Expenses 101 58 33 — — 192 Other Income, Net — — (22) — — (22) Non-GAAP Operating Income $     15,641 $             2,089 $          2,243 $             — $       (5,184) $           14,789 EBITDA without Special Items GAAP Earnings from Continuing Operations Before Taxes $     14,315 $             1,888 $          2,346 $             — $       (5,178) $           13,371 Depreciation And Amortization 3,525 898 2,469 — 409 7,301 Interest Expense 1,427 531 664 — (555) 2,067      EBITDA 19,267 3,317 5,479 — (5,324) 22,739 Restructuring and Integration Expenses 101 58 33 — — 192 Special Items 101 58 33 — — 192 EBITDA without Special Items $     19,368 $           3,375 $          5,512 $             — $       (5,324) $           22,931 % of Net Sales 10.4 % 4.7 % 7.4 % — % 6.9 % Management believes that Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results.  Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. Standard Motor Products, Inc. Condensed Consolidated Balance Sheets (In thousands) March 31, 2025 March 31, 2024 December 31, 2024 Unaudited Unaudited ASSETS Cash And Cash Equivalents $                    50,276 $                    27,113 $                     44,426 Accounts Receivable, Gross 287,952 212,224 216,191 Allowance For Expected Credit Losses 7,157 8,284 5,472 Accounts Receivable, Net 280,795 203,940 210,719 Inventories 641,131 520,702 624,913 Unreturned Customer Inventory 17,597 18,007 16,163 Other Current Assets 26,282 26,674 25,703 Total Current Assets 1,016,081 796,436 921,924 Property, Plant And Equipment, Net 174,636 124,822 168,735 Operating Lease Right-of-use Assets 112,022 102,060 109,899 Goodwill 246,115 134,624 241,418 Customer Relationships Intangibles, Net 212,378 74,029 210,430 Other Intangibles, Net 93,087 15,971 90,540 Deferred Income Taxes 14,064 40,241 13,199 Investment In Unconsolidated Affiliates 26,013 24,751 24,842 Other Assets 31,695 38,627 33,139 Total Assets $              1,926,091 $              1,351,561 $               1,814,126 LIABILITIES AND STOCKHOLDERS' EQUITY Current Portion Of Revolving Credit Facility $                      4,350 $                            — $                     10,800 Current Portion Of Term Loan And Other Debt 18,876 5,030 16,317 Accounts Payable 151,206 98,293 148,009 Sundry Payables And Accrued Expenses 81,036 58,714 84,936 Accrued Customer Returns 66,087 47,220 46,471 Accrued Core Liability 11,722 17,438 12,807 Accrued Rebates 73,050 45,191 76,168 Payroll And Commissions 31,050 27,326 40,964 Total Current Liabilities 437,377 299,212 436,472 Long-term Debt 627,329 209,872 535,197 Noncurrent Operating Lease Liability 99,885 90,667 98,214 Accrued Asbestos Liabilities 79,928 68,985 84,568 Other Liabilities 29,135 27,704 29,593 Total Liabilities 1,273,654 696,440 1,184,044 Total SMP Stockholders' Equity 637,961 639,150 615,745 Noncontrolling Interest 14,476 15,971 14,337 Total Stockholders' Equity 652,437 655,121 630,082 Total Liabilities And Stockholders' Equity $              1,926,091 $              1,351,561 $               1,814,126 Standard Motor Products, Inc. Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, (In thousands, unaudited) 2025 2024 Cash Flows From Operating Activities Net Earnings $                12,741 $                  8,990 Adjustments To Reconcile Net Earnings To Net Cash Used In Operating Activities: Depreciation And Amortization 10,267 7,301 Other 6,048 3,511 Change In Assets And Liabilities: Accounts Receivable (68,882) (43,978) Inventory (14,576) (14,670) Prepaid Expenses And Other Current Assets 1,438 1,649 Accounts Payable 957 (9,274) Sundry Payables And Accrued Expenses (3,185) 3,988 Other (5,028) (3,233) Net Cash Used In Operating Activities (60,220) (45,716) Cash Flows From Investing Activities Capital Expenditures (9,132) (10,086) Other Investing Activities 2,923 15 Net Cash Used In Investing Activities (6,209) (10,071) Cash Flows From Financing Activities Net Change In Debt 79,094 58,692 Purchase Of Treasury Stock — (2,235) Dividends Paid (6,777) (6,392) Other Financing Activities 191 315 Net Cash Provided By Financing Activities 72,508 50,380 Effect Of Exchange Rate Changes On Cash (229) (6) Net Increase (Decrease) In Cash And Cash Equivalents 5,850 (5,413) Cash And Cash Equivalents At Beginning Of Period 44,426 32,526 Cash And Cash Equivalents At End Of Period $                50,276 $                27,113 SOURCE Standard Motor Products, Inc. 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