[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) The company reported strong Q2 and YTD 2025 results, with significant sales growth and improved profitability, driven by the Nissens acquisition [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Standard Motor Products, Inc. reported strong second-quarter 2025 results, with significant increases in net sales, earnings from continuing operations, and adjusted diluted EPS compared to the prior year. The company also saw a notable improvement in its adjusted EBITDA margin Q2 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Net Sales | $493.9M | $389.8M | 26.7% | | Net Sales (Excl. Nissens) | $403.4M | $389.8M | 3.5% | | GAAP Earnings from Continuing Ops | $26.3M | $18.0M | 46.1% | | GAAP Diluted EPS | $1.17 | $0.81 | 44.4% | | Adjusted Earnings from Continuing Ops | $28.9M | $21.7M | 33.2% | | Adjusted Diluted EPS | $1.29 | $0.98 | 31.6% | | Adjusted EBITDA Margin | 12.0% | 10.1% | +190 bps | [Year-to-Date 2025 Financial Highlights](index=2&type=section&id=Year-to-Date%202025%20Financial%20Highlights) For the first six months of 2025, the company achieved substantial growth in consolidated net sales and earnings from continuing operations, both on a GAAP and adjusted basis, demonstrating strong year-to-date performance YTD 2025 Key Financial Highlights (YoY) | Metric | YTD 2025 | YTD 2024 | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | | Consolidated Net Sales | $907.2M | $721.2M | 25.8% | | GAAP Earnings from Continuing Ops | $40.0M | $27.8M | 43.9% | | GAAP Diluted EPS | $1.79 | $1.25 | 43.2% | | Adjusted Earnings from Continuing Ops | $46.9M | $31.7M | 47.9% | | Adjusted Diluted EPS | $2.10 | $1.42 | 47.9% | [CEO Commentary on Performance](index=2&type=section&id=CEO%20Commentary%20on%20Performance) CEO Eric Sills expressed satisfaction with the strong second-quarter results, building on a record quarter last year. He highlighted significant sales and adjusted diluted EPS growth for both the quarter and year-to-date, emphasizing the positive impact of the Nissens acquisition - Sales for Q2 increased nearly **27%**, or **3.5%** excluding Nissens Automotive (Nissens)[6](index=6&type=chunk) - Year-to-date sales are up **26%**, or **4.1%** excluding Nissens[6](index=6&type=chunk) - Adjusted diluted earnings per share grew **31.6%** for the quarter and **47.9%** for the year[6](index=6&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Segment performance was strong in North American Aftermarket and Nissens, driving overall growth, despite a sales decline in Engineered Solutions [North American Aftermarket Segments](index=2&type=section&id=North%20American%20Aftermarket%20Segments) The North American Aftermarket segments, including Vehicle Control and Temperature Control, demonstrated continued strong performance in Q2 2025, driven by robust customer order activity and favorable market conditions [Vehicle Control](index=2&type=section&id=Vehicle%20Control) Vehicle Control sales increased nearly 7% in Q2, driven by strong customer orders and solid sell-through, underscoring product necessity - Vehicle Control sales rose nearly **7%** in the second quarter, continuing momentum from Q1[7](index=7&type=chunk) - Strong customer order activity and solid sell-through underscore the non-discretionary nature of products[7](index=7&type=chunk) [Temperature Control](index=2&type=section&id=Temperature%20Control) Temperature Control sales increased 5.5% in Q2, despite a challenging comparison, with year-to-date growth reaching 12.3% - Temperature Control sales increased **5.5%** in Q2, despite a challenging comparison to last year's **28%** growth[7](index=7&type=chunk) - Year-to-date, the segment is up **12.3%**, building on last year's **15.8%** growth for the same period[7](index=7&type=chunk) [Nissens Automotive](index=3&type=section&id=Nissens%20Automotive) Nissens, the newest segment, delivered another solid quarter, contributing significantly to sales and exceeding full-year adjusted EBITDA margin expectations. Integration efforts are progressing ahead of schedule, with initial cost reduction and growth synergies being realized Nissens Q2 2025 Performance | Metric | Value | | :-------------------- | :---------- | | Sales Contribution | $90.5 million | | Adjusted EBITDA Margin | 18.0% | - Nissens' adjusted EBITDA margin of **18.0%** is ahead of full-year expectations of mid-teens[8](index=8&type=chunk) - Integration efforts are in full stride, with many initiatives tracking ahead of plan[8](index=8&type=chunk) - Confident in achieving **$8-12 million** in run-rate cost reduction synergies within **24 months** of ownership[8](index=8&type=chunk) - Growth synergies are being implemented, with over **800** new items launched in North America[8](index=8&type=chunk) [Engineered Solutions](index=3&type=section&id=Engineered%20Solutions) The Engineered Solutions segment experienced an 8.3% year-over-year sales decline due to continued softness in certain end markets. However, demand is believed to have stabilized, with easier comparisons expected in the second half of the year - Sales in the Engineered Solutions segment declined **8.3%** year-over-year[9](index=9&type=chunk) - Decline reflects continued softness in certain end markets[9](index=9&type=chunk) - Demand is believed to have stabilized, with easier second-half comparisons expected[9](index=9&type=chunk) [Financial Position & Operational Initiatives](index=3&type=section&id=Financial%20Position%20%26%20Operational%20Initiatives) The company improved profitability, managed debt, expanded distribution, and implemented strategies to mitigate tariff impacts [Profitability & Balance Sheet Overview](index=3&type=section&id=Profitability%20%26%20Balance%20Sheet%20Overview) Adjusted EBITDA significantly increased, driven by strong North American aftermarket performance and Nissens' contribution, leading to a higher margin. Net debt levels reflect the Nissens acquisition and seasonal working capital, with a target to reduce debt leverage by the end of 2026 Q2 2025 Adjusted EBITDA (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------- | :------ | :------ | :------- | | Adjusted EBITDA | $59.1M | $39.5M | +$19.6M | | Adjusted EBITDA Margin | 12.0% | 10.1% | +190 bps | - Adjusted EBITDA increase driven by strong North American aftermarket segments and **$16.3 million** from Nissens[10](index=10&type=chunk) - Total net debt at quarter-end was **$577.8 million**, primarily due to Nissens acquisition and seasonal working capital build[11](index=11&type=chunk) - Debt leverage declined in the quarter due to strong results[12](index=12&type=chunk) - Targeting debt levels to **2.0x Adjusted EBITDA** by the end of **2026**[12](index=12&type=chunk) [New Distribution Center](index=4&type=section&id=New%20Distribution%20Center) The company officially opened a new 575,000 square foot distribution center in Shawnee, Kansas, expanding its distribution footprint and enhancing capabilities to better serve customer fulfillment needs across the United States - Opened a new **575,000 square foot** state-of-the-art distribution center (DC) in Shawnee, Kansas[13](index=13&type=chunk) - The facility increases total distribution footprint by over **200,000 net square feet** and provides centralized coverage across the U.S[13](index=13&type=chunk) - Intends to exit the Edwardsville DC by year-end and sell the facility thereafter[13](index=13&type=chunk) [Tariff Impact & Mitigation](index=4&type=section&id=Tariff%20Impact%20%26%20Mitigation) The company leverages its diverse global footprint, with over half of U.S. sales from tariff-free North American-made products. For other sourced products, a mitigation plan is in place, including cost-sharing, re-sourcing, and pass-through pricing, to offset tariff costs going forward - Over half of U.S. sales are from North American-made, USMCA-compliant products, which are largely tariff-free[14](index=14&type=chunk) - Mitigation plan includes cost containment through cost-sharing with suppliers, re-sourcing to lower-tariffed countries, and pass-through pricing to customers[14](index=14&type=chunk) - Experienced some tariff costs in Q2 without offsetting pricing due to timing delays, but expects ongoing costs to be offset with pricing going forward[14](index=14&type=chunk) [Outlook & Shareholder Information](index=4&type=section&id=Outlook%20%26%20Shareholder%20Information) The company raised full-year sales guidance, reaffirmed EBITDA margin, declared a dividend, and remains optimistic about long-term growth and efficiencies [Updated 2025 Guidance](index=4&type=section&id=Updated%202025%20Guidance) The company raised its full-year sales growth guidance to the low-20s percent range, up from prior mid-teens expectations, reflecting strong first-half results. The adjusted EBITDA margin outlook of 10-11% was reaffirmed, with sales growth and other initiatives offsetting tariff-related margin compression - Raising full-year sales growth guidance to the **low-20s percent range**, up from prior mid-teens expectation[15](index=15&type=chunk) - Reaffirmed adjusted EBITDA margin outlook of **10-11%**[15](index=15&type=chunk) - Revised guidance includes the impact of tariffs and mitigating actions, with sales growth and other initiatives offsetting margin rate compression from tariff pricing[16](index=16&type=chunk) [Quarterly Dividend](index=5&type=section&id=Quarterly%20Dividend) The Board of Directors approved a quarterly dividend of 31 cents per share, payable on September 2, 2025, to stockholders of record on August 15, 2025 Quarterly Dividend Details | Metric | Value | | :-------------------- | :---------- | | Dividend Per Share | $0.31 | | Payment Date | Sep 2, 2025 | | Record Date | Aug 15, 2025 | [Closing Remarks](index=5&type=section&id=Closing%20Remarks) CEO Eric Sills concluded by highlighting the first half of 2025 exceeding expectations, driven by strong performance in North American aftermarket segments and above-market growth from Nissens. He expressed optimism for long-term potential through growth and savings synergies with Nissens and ongoing operational efficiencies - First half of **2025** exceeded expectations despite a volatile macroeconomic environment[18](index=18&type=chunk) - North American aftermarket segments delivered the strongest first half in company history, demonstrating market strength and industry resilience[18](index=18&type=chunk) - Nissens continued to deliver above-market growth and holds a market-leading position in Europe[18](index=18&type=chunk) - Optimistic about long-term potential, led by growth and savings synergies with Nissens, and ongoing efforts to gain efficiencies[18](index=18&type=chunk) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Standard Motor Products, Inc. will host a conference call on August 5, 2025, at 11:00 AM ET to discuss Q2 2025 results, with webcast and dial-in options available, along with a replay - Conference call scheduled for Tuesday, **August 5, 2025**, at **11:00 AM Eastern Time**[19](index=19&type=chunk) - Webcast accessible via www.smpcorp.com, with a replay available within **24 hours**[19](index=19&type=chunk)[20](index=20&type=chunk) - Dial-in numbers: **800-343-4136** (domestic) or **203-518-9843** (international), Conference ID: **SMP2Q2025**[19](index=19&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) The report includes forward-looking statements, which are based on management's expectations but are subject to risks and uncertainties that could cause actual results to differ materially. The company undertakes no obligation to update these statements - Forward-looking statements are based on management's expectations and are subject to risks and uncertainties[21](index=21&type=chunk) - Factors that could cause actual results to differ are detailed in prior press releases and SEC filings (Form 10-K, 10-Q)[21](index=21&type=chunk) - Standard Motor Products undertakes no obligation to update these statements after the release date[21](index=21&type=chunk) [Consolidated Financial Statements (GAAP)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) This section presents the company's GAAP financial statements, detailing operations, segment performance, balance sheets, and cash flows [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations provide a detailed breakdown of the company's revenues, costs, and earnings for the three and six months ended June 30, 2025, and 2024, highlighting significant growth in net sales and net earnings Consolidated Statements of Operations (Selected Data, in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Net sales | $493,853 | $389,829 | $907,232 | $721,232 | | Gross profit | $150,889 | $111,447 | $275,611 | $200,969 | | Operating income | $42,836 | $24,986 | $67,298 | $39,605 | | Earnings from continuing operations | $26,595 | $18,324 | $40,475 | $28,353 | | Net earnings attributable to SMP | $25,242 | $17,063 | $37,808 | $25,887 | | Diluted EPS (Continuing operations) | $1.17 | $0.81 | $1.79 | $1.25 | | Dividend declared per common share | $0.31 | $0.29 | $0.62 | $0.58 | [Segment Revenues](index=8&type=section&id=Segment%20Revenues) Segment Revenues detail the sales performance across Vehicle Control, Temperature Control, Nissens Automotive, and Engineered Solutions for the three and six months ended June 30, 2025, and 2024, showing strong growth in most segments, particularly with the addition of Nissens Segment Revenues (in thousands) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Vehicle Control | $201,699 | $188,741 | $394,041 | $374,265 | | Temperature Control | $131,365 | $124,481 | $220,248 | $196,089 | | Nissens Automotive | $90,537 | — | $156,719 | — | | Engineered Solutions | $70,252 | $76,607 | $136,224 | $150,878 | | Total | $493,853 | $389,829 | $907,232 | $721,232 | [Segment Operating Profit](index=9&type=section&id=Segment%20Operating%20Profit) Segment Operating Profit provides insights into the gross margin and operating income performance of each business segment for the three and six months ended June 30, 2025, and 2024, highlighting Nissens' strong profitability and improvements in Temperature Control Segment Operating Income (in thousands) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Vehicle Control | $17,084 | $16,125 | $35,410 | $31,766 | | Temperature Control | $19,523 | $13,444 | $27,298 | $15,533 | | Nissens Automotive | $12,830 | — | $20,414 | — | | Engineered Solutions | $3,971 | $6,193 | $7,166 | $8,436 | | Total Operating Income | $42,836 | $24,986 | $67,298 | $39,605 | Segment Gross Margin Percentage | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Vehicle Control | 30.1% | 31.8% | 31.2% | 31.8% | | Temperature Control | 32.2% | 29.4% | 31.8% | 28.7% | | Nissens Automotive | 40.7% | — | 41.3% | — | | Engineered Solutions | 18.1% | 19.4% | 17.9% | 17.1% | [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets present the company's financial position as of June 2025, June 2024, and December 2024, showing significant increases in total assets and liabilities, largely influenced by the Nissens acquisition Condensed Consolidated Balance Sheets (Selected Data, in thousands) | Metric | June 2025 | June 2024 | Dec 2024 | | :-------------------------------- | :-------- | :-------- | :------- | | Total Current Assets | $1,065,064 | $816,655 | $921,924 | | Property, Plant And Equipment, Net | $183,508 | $131,921 | $168,735 | | Goodwill | $256,266 | $134,476 | $241,418 | | Total Assets | $2,007,348 | $1,374,328 | $1,814,126 | | Total Current Liabilities | $492,415 | $332,166 | $436,472 | | Long-term Debt | $605,811 | $203,162 | $535,197 | | Total Liabilities | $1,303,889 | $720,006 | $1,184,044 | | Total Stockholders' Equity | $703,459 | $654,322 | $630,082 | [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025, and 2024, indicate a net cash outflow from operating activities but a net increase in cash due to significant cash provided by financing activities, primarily from changes in debt Condensed Consolidated Statements of Cash Flows (Selected Data, in thousands) | Metric | YTD 2025 | YTD 2024 | | :-------------------------------- | :------- | :------- | | Net Cash Used In Operating Activities | $(5,903) | $(10,139) | | Net Cash Used In Investing Activities | $(16,323) | $(22,923) | | Net Cash Provided By Financing Activities | $32,624 | $28,471 | | Net Increase (Decrease) In Cash | $14,366 | $(6,370) | | Cash At End Of Period | $58,792 | $26,156 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section reconciles GAAP to non-GAAP financial measures, adjusting for special items at consolidated and segment levels for clearer performance [Consolidated Non-GAAP Measures](index=10&type=section&id=Consolidated%20Non-GAAP%20Measures) This section reconciles GAAP earnings from continuing operations, diluted EPS, operating income, and EBITDA to their non-GAAP equivalents, adjusting for special items like restructuring and acquisition & integration expenses, to provide a clearer view of ongoing operating results Consolidated GAAP to Non-GAAP Reconciliation (Selected Data, in thousands) | Metric | Q2 2025 GAAP | Q2 2025 Non-GAAP | YTD 2025 GAAP | YTD 2025 Non-GAAP | | :-------------------------------- | :----------- | :------------- | :------------ | :-------------- | | Earnings from Continuing Operations | $26,300 | $28,876 | $40,005 | $46,888 | | Diluted EPS from Continuing Operations | $1.17 | $1.29 | $1.79 | $2.10 | | Operating Income | $42,836 | $46,269 | $67,298 | $76,293 | | EBITDA | $55,636 | $59,118 | $92,613 | $101,915 | - Non-GAAP measures are adjusted for special items (restructuring, acquisition & integration expenses, and related tax effects) to provide a view of ongoing operating results[30](index=30&type=chunk) [Segment Non-GAAP Measures (Q2)](index=11&type=section&id=Segment%20Non-GAAP%20Measures%20(Q2)) This section provides a segment-level reconciliation of GAAP operating income and EBITDA to non-GAAP measures for the three months ended June 30, 2025, and 2024, detailing adjustments for restructuring, acquisition & integration expenses, and other income/expense Q2 2025 Segment Non-GAAP Operating Income (in thousands) | Segment | GAAP Operating Income | Non-GAAP Operating Income | | :-------------------- | :-------------------- | :------------------------ | | Vehicle Control | $16,540 | $17,084 | | Temperature Control | $19,536 | $19,523 | | Nissens Automotive | $10,034 | $12,830 | | Engineered Solutions | $3,954 | $3,971 | | Consolidated | $42,836 | $46,269 | Q2 2025 Segment Non-GAAP EBITDA without Special Items (in thousands) | Segment | EBITDA | EBITDA without Special Items | | :-------------------- | :------- | :--------------------------- | | Vehicle Control | $21,065 | $21,544 | | Temperature Control | $21,148 | $21,201 | | Nissens Automotive | $13,491 | $16,313 | | Engineered Solutions | $6,958 | $6,997 | | Consolidated | $55,636 | $59,118 | | % of Net Sales | 10.7% | 12.0% | [Segment Non-GAAP Measures (YTD)](index=13&type=section&id=Segment%20Non-GAAP%20Measures%20(YTD)) This section presents the segment-level reconciliation of GAAP operating income and EBITDA to non-GAAP measures for the six months ended June 30, 2025, and 2024, providing a year-to-date perspective on performance adjusted for special items YTD 2025 Segment Non-GAAP Operating Income (in thousands) | Segment | GAAP Operating Income | Non-GAAP Operating Income | | :-------------------- | :-------------------- | :------------------------ | | Vehicle Control | $34,322 | $35,410 | | Temperature Control | $27,436 | $27,298 | | Nissens Automotive | $12,621 | $20,414 | | Engineered Solutions | $7,130 | $7,166 | | Consolidated | $67,298 | $76,293 | YTD 2025 Segment Non-GAAP EBITDA without Special Items (in thousands) | Segment | EBITDA | EBITDA without Special Items | | :-------------------- | :------- | :--------------------------- | | Vehicle Control | $42,787 | $43,792 | | Temperature Control | $30,413 | $30,602 | | Nissens Automotive | $19,947 | $27,780 | | Engineered Solutions | $13,348 | $13,407 | | Consolidated | $92,613 | $101,915 | | % of Net Sales | 11.1% | 11.2% |

Core Insights - Standard Motor Products, Inc. reported strong financial results for Q2 2025, with net sales increasing by 26.7% year-over-year to $493.9 million, and earnings from continuing operations rising to $26.3 million or $1.17 per diluted share, compared to $18.0 million or $0.81 per diluted share in Q2 2024 [2][4][14] Financial Performance - For the first half of 2025, consolidated net sales reached $907.2 million, up from $721.2 million in the same period of 2024, with earnings from continuing operations at $40 million or $1.79 per diluted share, compared to $27.8 million or $1.25 per diluted share in 2024 [3][19] - Adjusted EBITDA for Q2 2025 increased to $59.1 million, up from $39.5 million in the previous year, with an adjusted EBITDA margin climbing 190 basis points to 12.0% [8][14] Segment Performance - The North American aftermarket segments showed significant growth, with sales increasing nearly 27% in Q2 2025, and year-to-date growth of 26% [4] - The Nissens segment contributed $90.5 million in sales with an adjusted EBITDA margin of 18.0%, exceeding full-year expectations [5][6] - The Engineered Solutions segment experienced a decline in sales by 8.3% year-over-year, attributed to softness in certain end markets, although demand is believed to have stabilized [7] Operational Developments - A new 575,000 square foot distribution center was opened in Shawnee, Kansas, enhancing distribution capabilities across the U.S. [10] - Integration efforts following the acquisition of Nissens are progressing well, with confidence in achieving $8-12 million in cost reduction synergies within 24 months [6] Guidance and Outlook - The company raised its full-year sales growth guidance to the low-20% range, up from mid-teens, while reaffirming an adjusted EBITDA margin outlook of 10-11% [12] - Ongoing tariff impacts are being managed through cost-sharing with suppliers and re-sourcing to lower-tariff countries, with expectations of offsetting costs through pricing adjustments [11] Dividends - The Board of Directors approved a quarterly dividend of $0.31 per share, payable on September 2, 2025 [13]

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Tuesday, August 5, 2025. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q2'25 Earnings Call Earnings Webcast link. Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (international). The conference call ID code is SMP2Q2025. Our playback will be made available for dial in immediately following the call. For those choosing to li ...

Core Insights - Stagwell has launched the Stagwell Media Platform (SMP), a centralized team aimed at enhancing client advantages through optimized media, technology, and data solutions [1][2][3] - Matt Adams has been appointed as Global CEO of SMP, while Marissa Jimenez will serve as Global Chief Trading and Solutions Officer, effective July 14, 2025 [2][4] - The SMP aims to streamline operations across Stagwell agencies and improve efficiency and outcomes for clients by leveraging scale and technology [3][4] Company Structure and Leadership - Matt Adams will continue his role as Global Chief Operating Officer of Assembly Global while leading SMP [2] - Marissa Jimenez brings 20 years of experience from Dentsu US, where she served as EVP, Commercial, and will report to Adams [2] Strategic Objectives - The SMP is designed to enhance collaboration and efficiency across all Stagwell agencies, utilizing partnerships to optimize media and technology investments [3][4] - The platform offers a suite of solutions that aim to reposition and expand business operations in a consolidating, addressable market [5]

Group 1 - Standard Motor Products (NYSE: SMP) has been performing well recently, with a positive outlook highlighted in a bullish article from March [1] - The company experienced a dip in shares earlier this year, but the current performance indicates recovery and growth potential [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and companies with growth prospects [2] - Subscribers have access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Company Overview - Standard Motor Products Inc. is a leading manufacturer, distributor, and marketer of premium automotive replacement parts for engine management and temperature control systems, founded in 1919 [12]. Zacks Rank and Style Scores - Standard Motor Products (SMP) holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [13]. - The company has a Momentum Style Score of B, with shares increasing by 2.6% over the past four weeks [13]. - Three analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.07 to $3.58 per share [13]. - SMP has an average earnings surprise of 38.6%, suggesting strong performance relative to expectations [13]. Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SMP is recommended for investors' consideration [14].

Company Recognition - Standard Motor Products, Inc. (SMP) has been recognized as one of Newsweek's America's Greatest Workplaces 2025 and also named one of America's Greatest Workplaces in Manufacturing [1][2] Employee Satisfaction Metrics - The recognition is based on a large-scale employee survey that evaluated ten categories including mental wellbeing, job security, work-life balance, working environment, company image, community, sustainability and awareness, compensation and benefits, training and career progression, and corporate culture [3] - Over 400,000 interviews were conducted and nearly 5 million company reviews were analyzed to compile the list [3] Company Overview - SMP has over 100 years of experience as a leading independent manufacturer and distributor of premium replacement parts in the automotive aftermarket [5] - The company sells products primarily to retailers, warehouse distributors, original equipment manufacturers, and original equipment service part operations across various regions including the United States, Canada, Europe, Asia, Mexico, and other Latin American countries [5]

Industry Outlook - The Zacks Automotive - Replacement Parts industry has a strong outlook due to the aging vehicle fleet in the U.S., which averages 12.6 years, leading to high repair volumes [1][3] - Tariff-driven volatility may reduce new vehicle sales, encouraging vehicle owners to repair rather than replace, thus increasing demand for parts and services [1][4] - The shift towards smart vehicles presents new growth opportunities, requiring adaptation to technology-heavy systems [1][5] Industry Overview - The industry includes companies that produce, market, and distribute replacement components for the automotive aftermarket, focusing on essential parts like engines, brakes, and gearboxes [2] - The auto replacement market is less sensitive to economic downturns as consumers prefer maintaining their vehicles over purchasing new ones [2] Key Themes - The trend of older cars requiring more repairs boosts demand for replacement parts, benefiting the industry as vehicles remain operational longer [3] - Economic uncertainty and higher vehicle prices are leading consumers to hold onto their cars, increasing the demand for repairs [4] - The advancement of vehicle technology necessitates specialized components and skilled technicians, creating new opportunities for growth [5] Cost Management and Innovation - While innovation drives growth, it also increases costs due to the need for R&D and skilled labor, making cost management essential for companies [6] Industry Ranking and Performance - The Zacks Automotive - Replacement Parts industry ranks 23, placing it in the top 9% of approximately 250 Zacks industries, indicating solid near-term prospects [7][8] - The industry's earnings estimates for 2025 have increased by 2% since the beginning of the year, reflecting growing analyst confidence [9] Market Performance - The industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500 over the past year, declining by 5.4% [11] Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.61X, significantly lower than the S&P 500's 16.71X and the sector's 21.62X [14] Investment Opportunities - **Dorman Products (DORM)**: A leading player in the automotive aftermarket, known for expanding its product lineup and maintaining a low debt-to-capitalization ratio of 25% [18] - DORM has consistently surpassed earnings estimates, with a consensus estimate for 2025 indicating year-over-year growth of 5% in sales and 10% in earnings [19] - **Standard Motor Products (SMP)**: A major manufacturer of automotive replacement parts, benefiting from strategic acquisitions and low exposure to tariffs [22] - SMP has also exceeded earnings estimates, with a consensus estimate for 2025 showing year-over-year growth of 17% in sales and 13% in earnings [23]

Core Viewpoint - Standard Motor Products (SMP) has seen a 9.3% increase in share price over the past month, outperforming the S&P 500, but recent estimates have trended downward, indicating potential challenges ahead [1]. Group 1: Earnings and Estimates - The consensus estimate for Standard Motor Products has shifted downward by 11.92% over the past month [2]. - The stock has a Zacks Rank of 2 (Buy), suggesting an expectation of above-average returns in the coming months despite the downward estimate revisions [4]. Group 2: VGM Scores - Standard Motor Products has a Growth Score of D and a Momentum Score of F, indicating subpar performance in these areas. However, it has received an A grade for value, placing it in the top 20% for this investment strategy [3]. Group 3: Industry Performance - Standard Motor Products is part of the Zacks Automotive - Replacement Parts industry, where LKQ, a competitor, has gained 5.6% over the past month. LKQ reported revenues of $3.46 billion for the last quarter, reflecting a year-over-year decline of 6.5% [5]. - For the current quarter, LKQ is expected to post earnings of $0.93 per share, which is a 5.1% decrease from the previous year, and has a Zacks Rank of 4 (Sell) [6].

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Summary by Categories Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price or earnings trends, utilizing factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who prefer a multifaceted approach to stock selection [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlook changes [9][10] Company Spotlight: Standard Motor Products (SMP) - Standard Motor Products Inc., established in 1919, is a leading manufacturer and distributor of automotive replacement parts, reporting results in four segments since February 2025 [11] - SMP holds a Zacks Rank of 2 (Buy) with a VGM Score of A, and a Growth Style Score of B, indicating a forecasted year-over-year earnings growth of 10.7% for the current fiscal year [12] - The Zacks Consensus Estimate for SMP's earnings has increased by $0.05 to $3.51 per share, with an average earnings surprise of 38.6%, making it a strong candidate for growth investors [12][13]