Financial Performance - The company reported a net loss of $102.8 million, or $(3.70) per diluted share, for the year ended December 31, 2025, an increase in loss of $86.3 million from the previous year [122][123]. - Net sales decreased by $47.0 million, or 5.2%, to $861.3 million in 2025, with the Control Devices segment down 6.2% and Electronics segment down 7.0% [124][142]. - Operating loss increased significantly to $38.6 million in 2025 from a loss of $0.4 million in 2024, primarily due to lower sales levels and higher business realignment costs [152]. - Gross margin decreased to 19.9% in 2025 from 20.8% in 2024, with material costs as a percentage of net sales decreasing by 0.8% to 56.8% [148]. - Selling, general and administrative expenses increased by $8.1 million, primarily due to higher professional services and business realignment costs [128][142]. Segment Performance - The Control Devices segment's net sales decreased by $18.1 million due to declines in the North American automotive market and the China automotive market [125][142]. - The Electronics segment's net sales decreased by $39.6 million, primarily due to lower production volumes in North American and European commercial vehicle markets, partially offset by higher MirrorEye sales [126][143]. - Stoneridge Brazil segment net sales increased by 21.6% to $60.4 million, driven by higher OEM product sales [127][142]. - Total net sales decreased by $47.0 million (5.2%) from $908.3 million in 2024 to $861.3 million in 2025, with North America experiencing a decline of $54.8 million (12.3%) [144]. Cash and Debt Management - Cash and cash equivalents decreased to $66.3 million at December 31, 2025, down from $71.8 million in 2024, mainly due to repayments of Credit Facility borrowings [129]. - As of December 31, 2025, the Credit Facility had an outstanding balance of $180.9 million, with a maximum borrowing capacity reduced to $175.0 million effective January 30, 2026 [168]. - The Credit Facility borrowing capacity was reduced from $225.0 million to $175.0 million following the sale of the Control Devices business [172]. - The Company has approximately $94.1 million of undrawn commitments under the Credit Facility as of December 31, 2025, resulting in total undrawn commitments and cash balances of more than $160.3 million [181]. - The expiration date of the Credit Facility was extended from November 2, 2026, to July 1, 2027 [175]. Tax and Regulatory Matters - The provision for income tax expense was $47.4 million in 2025, resulting in an effective tax rate of (85.4)% [158]. - As of December 31, 2025, the valuation allowance related to deferred tax assets was $44,324 million in the United States and $15,630 million in several international jurisdictions [198]. - The company has accrued taxes of $5,869 million related to undistributed earnings from foreign subsidiaries in China and Estonia [199]. Market Outlook and Strategic Initiatives - The company expects continued expansion in Vision and Safety systems, including new product introductions like connected trailers and surround-view capabilities [130]. - The company anticipates a 6.0% increase in European and a 9.8% increase in North American commercial vehicle end market volumes in 2026 [133]. - The company plans to increase net design and development spending in 2026 to support quality improvement and next-generation product development [135]. Currency and Commodity Exposure - A 10.0% unidirectional change in currency exchange rates relative to the U.S. dollar would have changed income before income taxes for the year ended December 31, 2025, by approximately $3.5 million [211]. - The company is exposed to commodity price fluctuations related to purchases of copper, steel, zinc, and resins, which may impact cost recovery through pricing [212]. - The company has previously used foreign currency forward contracts to mitigate exposure to fluctuations in foreign currency exchange rates [210]. - The company is subject to translation risk due to significant operations in various countries, affecting the comparability of financial results [209]. Accounting and Compliance - The adoption of ASU No. 2023-09 will result in incremental disclosures in the company's financial statements starting in fiscal years after December 15, 2024 [200]. - The company is currently evaluating the impact of several recently issued accounting standards on its annual consolidated financial statements and disclosures [201][202][203][204][205][206][207]. - The company intends to maintain valuation allowances until it is more likely than not that deferred tax assets will be realized, influenced by economic conditions in automotive and commercial vehicle markets [198].

Core Insights - Stoneridge's MirrorEye segment experienced significant growth, with sales reaching approximately $111 million in 2025, marking a 70% increase year-over-year, and OEM revenue growing by 84% due to increased European take rates and new programs with Daimler and Volvo [1][2][7] Financial Performance - The company reported adjusted EBITDA of $28.6 million for the full year, which is 3.3% of sales, reflecting a decline of 60 basis points compared to the previous year [13] - Adjusted free cash flow was approximately $19 million in 2025, driven by an improvement in inventory balances [14] - Management expects revenue growth of about 4.2% in 2026, primarily from MirrorEye, with a midpoint EBITDA guidance of $22.5 million [5][18] Strategic Initiatives - Stoneridge completed the sale of its Control Devices segment for a base price of $59 million to focus on higher-return businesses and reduce organizational complexity [6][9] - The company anticipates significant growth in MirrorEye, projecting sales to increase by approximately $50 million to at least $160 million in 2026, driven by maturing OEM programs and improved take rates [7][16] Market Outlook - Management is taking a conservative approach to revenue expectations for 2026, assuming flat OEM end markets despite third-party forecasts indicating potential recovery in North American and European production [15] - The company expects a decline of roughly $12 million in aftermarket Smart 2 tachograph sales in 2026, while OEM programs are anticipated to remain flat [17] Leadership Transition - A leadership transition is underway, with Jim Zizelman remaining CEO until March 31, after which Natalia Noblet will take over as president and CEO [19][20] - The company aims for revenue of at least $750 million in 2027 and $850 million to $1 billion by 2030, driven by market recovery and expansion of technology offerings [20][21]

Financial Data and Key Metrics Changes - In 2025, the company achieved sales of over $110 million for the MirrorEye platform, representing approximately 70% growth compared to the prior year [5] - Full-year adjusted EBITDA was $28.6 million, or 3.3% of sales, reflecting a 60 basis point decline compared to the prior year [14] - Positive free cash flow of approximately $19 million was driven by a significant improvement in inventory balances of $18.7 million [7][15] Business Line Data and Key Metrics Changes - The electronics segment reported full-year sales of $551 million, outperforming the weighted average OEM end markets by approximately 430 basis points [33] - MirrorEye sales totaled $111 million in 2025, resulting in growth of $45 million or 69% compared to the prior year [33] - Stoneridge Brazil experienced full-year sales growth of $15 million or approximately 30%, with OEM sales reaching a record $26.7 million [34][35] Market Data and Key Metrics Changes - The weighted average OEM end markets experienced a nearly 7% decline in 2025 compared to initial expectations of flat conditions [38] - North American OEM production is forecast to improve by 9.8% in 2026, while European production is expected to improve by 6.6% [39] - The company expects a full-year 2026 weighted average end market growth of 7.1% [39] Company Strategy and Development Direction - The company completed the sale of its Control Devices segment, allowing a focus on higher growth and higher return businesses [7][21] - The strategic vision includes leveraging a global footprint to serve customers and investing in advanced technologies aligned with industry trends [22][23] - The company aims to drive market outperformance, margin expansion, and cash flow conversion to create long-term value for stakeholders [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by favorable market tailwinds and sustained momentum from growth products [9][54] - The company is cautious about geopolitical volatility but remains confident in the recovery of end markets in 2026 [39][54] - Management highlighted the importance of improving quality processes to prevent legacy issues and enhance customer relationships [11][30] Other Important Information - Natalia Noblet has been appointed as the new CEO effective April 1, succeeding Jim Zizelman [8][16] - The company is committed to organizational cost efficiencies and structural cost reductions to support its current structure [45] - The company expects to achieve revenue growth of approximately 4.2% in 2026, primarily driven by continued MirrorEye growth [44] Q&A Session Summary Question: Legacy warranty costs related to Control Devices business - Management clarified that legacy warranty costs related to electronics products remain, while those related to Control Devices were transferred to the new owner [60][62] Question: Revenue breakdown by product category - Management indicated that while specific product category breakdowns are not provided, the connectivity business is more global than others, with significant growth in Brazil [67][68] Question: Impact of MirrorEye sales on overall business - Management acknowledged that while MirrorEye sales increased significantly, the overall electronics business faced challenges due to declining vehicle production [73][74] Question: Sales force experience in the current market - Management reported positive signals from customers regarding truck orders, indicating a potential recovery in the market [76] Question: Telematics and connected services - Management confirmed that the company offers digital services alongside hardware products, with Brazil being a strong market for these services [77]

Financial Data and Key Metrics Changes - In 2025, the company achieved sales of over $110 million for MirrorEye, representing approximately 70% growth compared to the prior year [5] - Adjusted EBITDA for the full year was $28.6 million, or 3.3% of sales, reflecting a 60 basis point decline compared to the prior year [14] - Positive free cash flow of approximately $19 million was driven by a significant improvement in inventory balances of $18.7 million [7][15] Business Line Data and Key Metrics Changes - MirrorEye OEM revenue grew by 84% compared to the prior year, with total sales of $111 million in 2025 [13][33] - Electronics full-year sales reached $551 million, outperforming weighted average OEM end markets by approximately 430 basis points [33] - Stoneridge Brazil experienced full-year sales growth of $15 million, or approximately 30%, primarily driven by incremental OEM sales [34] Market Data and Key Metrics Changes - The weighted average OEM end markets declined by almost 7% in 2025 compared to initial expectations of flat conditions [37] - North American OEM production is forecast to improve by 9.8% in 2026, while European production is expected to improve by 6.6% [38] - The company expects a recovery in the commercial vehicle market, with anticipated growth of 7.1% in 2026 [38] Company Strategy and Development Direction - The company completed the sale of its Control Devices segment, allowing a focus on high-growth, high-return businesses and reducing organizational complexity [8][20] - The strategic vision includes leveraging a global footprint to serve customers and investing in advanced technologies aligned with industry trends [21][23] - The company aims to drive market outperformance, margin expansion, and cash flow conversion to create long-term value for stakeholders [28][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing favorable market tailwinds and sustained momentum from growth products [10][52] - The company is cautious about geopolitical volatility but remains confident in its ability to recover from past challenges [10][38] - Management highlighted a commitment to improving quality processes and operational efficiency to drive long-term performance [30][44] Other Important Information - Natalia Noblet has been appointed as the new President and CEO, effective April 1, 2026, succeeding Jim Zizelman [9][16] - The company expects to realize at least $5 million in structural cost reductions in 2026 [43] - The company anticipates revenue growth of approximately 4.2% in 2026, primarily driven by continued MirrorEye growth [42] Q&A Session Summary Question: Legacy warranty costs related to Control Devices business - Management clarified that warranty costs related to Control Devices were passed to the new buyer, and the legacy warranty issues mentioned pertain to electronics products [57][60] Question: Revenue breakdown by product category - Management indicated that while specific product category breakdowns are not provided, the connectivity business is more global than others, with Brazil showing significant growth [61][66] Question: Impact of MirrorEye sales on overall business - Management acknowledged that while MirrorEye sales increased significantly, the overall decline in vehicle production impacted other product areas, particularly in North America [71][72]

Full-Year & Q4 2025 Results Non-GAAP Financial Measures Full-Year & Q4 2025 Results March 12, 2026 stoneridge.com © 2026 This presentation 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 presentation. The provision of these non-GAAP financial measures for 2025 and 2024 is not int ...

Core Insights - Sparton Resources Inc. provides an update on VRB Energy Inc.'s activities, highlighting the strategic partnership with Beijing Puneng to enhance market access in China and the establishment of VRB USA Inc. for markets outside Asia [1][2] Company Developments - VRB Energy, through its subsidiary Beijing Puneng, has made significant advancements in battery energy storage technology, focusing on various commercial applications [1] - The introduction of a Chinese partner has opened doors to the larger domestic market, primarily dominated by state-owned utilities [1] - The establishment of VRB USA Inc. aims to leverage funds from the sale of 51% of Beijing Puneng to expand into non-Asian markets [1] Project Highlights - **Mining Application**: A photovoltaic-storage-charging project at Ivanhoe Electric's Arizona Copper Mine aims to set a global benchmark for reducing carbon emissions in mining [1] - **Independent Energy Storage**: A 50MW/200MWh energy storage project in Hubei Province utilizes 100 units of the VRB Pod 500 system, enhancing grid stability [1] - **Industrial Energy Storage**: A smart energy project at a cement plant in Jiangsu Province combines lithium batteries and vanadium redox flow batteries for optimal performance [1] - **Factory Application**: A project at a glass factory in Zhejiang integrates photovoltaic power generation with long-duration energy storage [1] - **Campus Microgrid**: A project in Hami, Xinjiang, demonstrates a multi-energy application model for campus microgrids [1] Manufacturing and Production Capacity - Beijing Puneng's modern production base in Shanxi has a planned capacity of 3GWh, integrating the entire industrial application chain for energy storage systems [2] - The vanadium redox flow battery stack assembly line has a Phase I capacity of 300 MW/year, with Phase II expected to add another 600 MW/year [2] - The electrolyte preparation plant has a Phase I capacity of 10,000 m³/year, expanding to 60,000 m³/year in Phase II [2] Research and Development - Beijing Puneng has been recognized as a "Beijing Foreign-Invested R&D Center," reflecting its commitment to innovation in vanadium redox flow battery technology [2] - Collaboration with Tsinghua University has led to advancements in the field, enhancing the company's R&D capabilities [2] Future Outlook - In 2026, Beijing Puneng aims to lead the vanadium redox flow storage industry with a focus on technological innovation and global market expansion [2]

Core Insights - Stoneridge reported a net loss of $76.9 million for Q4 2025, which includes a $16.7 million impairment of Control Devices assets and a $44.5 million tax valuation allowance [1][2] - The company achieved a 69% growth in MirrorEye sales, totaling $111 million in 2025, outperforming end-markets by 150 basis points [1][3] - For 2026, Stoneridge expects revenue guidance of $625 million to $650 million, with a midpoint of $638 million, representing a 4.2% growth compared to 2025 [1][2] Financial Performance - Q4 2025 sales were $205.2 million, with a gross profit of $33.2 million (16.2% of sales) and an adjusted EBITDA of $3.4 million (1.7% of sales) [1][2] - Full-year 2025 sales totaled $861.3 million, with a gross profit of $171.2 million (19.9% of sales) and an adjusted EBITDA of $25.0 million (2.9% of sales) [1][2] - The company reported a full-year net loss of $102.8 million, with an adjusted net loss of $31.9 million [1][2] Segment Performance - Electronics segment Q4 sales decreased by 10.8% to $133.2 million, primarily due to lower commercial vehicle production volumes [2][3] - Stoneridge Brazil's Q4 sales increased by 33.3% to $16.6 million, driven by OEM and aftermarket sales [2][3] - Control Devices segment Q4 sales increased by 2.0% to $64.4 million, attributed to higher passenger vehicle sales in North America and China [2][3] Cost Management - The company achieved an 80-basis point improvement in material costs and reduced quality-related costs by $6.6 million in 2025 [1][3] - Stoneridge expects to drive significant margin improvement through continued performance enhancements and structural cost reductions, targeting an adjusted EBITDA of $20 million to $25 million for 2026 [1][2] Future Outlook - For 2027, Stoneridge targets revenue of at least $715 million, driven by improving market conditions and continued growth in MirrorEye [1][3] - The company anticipates 2027 EBITDA of at least $44 million, with potential for further expansion through cost improvements [1][3] - Long-term targets include a revenue goal of $850 million to $1 billion by 2030, with an expected EBITDA margin of approximately 9.5% to 12.0% [3]

Core Viewpoint - Stoneridge, Inc. will host a live webcast of its fourth quarter 2025 earnings conference call on March 12, 2026, at 9:00 a.m. ET, featuring members of the executive team [1] Group 1: Company Information - Stoneridge, Inc. is headquartered in Novi, Michigan, and is recognized as a global supplier of electronic systems and technologies that enhance vehicle intelligence and safety for both on- and off-highway transportation sectors [1] - The company's products and systems are designed to provide safe and efficient solutions for the transportation industry worldwide [1] Group 2: Upcoming Events - The fourth quarter 2025 earnings conference call will be accessible via the Investors section of the company's website [1]

Core Viewpoint - Stoneridge, Inc. has announced the appointment of Aron R. English as a new independent director, effective March 16, 2026, as part of a cooperation agreement with 22NW, LP, which is expected to enhance the company's long-term shareholder value [1]. Group 1: Appointment Details - Aron R. English will be nominated for election at the Company's 2026 Annual Shareholders Meeting, anticipated to be held in May [1]. - Mr. English is the founder and portfolio manager of 22NW, LP, a Seattle-based value fund specializing in small and microcap investments since 2014 [1]. - He has over 20 years of experience in investment and wealth management, and is a CFA charterholder [1]. Group 2: Company Insights - Stoneridge, Inc. is headquartered in Novi, Michigan, and is a global supplier of electronic systems and technologies that enhance vehicle intelligence and safety for transportation sectors [1]. - The company aims to capitalize on growth opportunities and deliver sustained shareholder returns, as stated by Mr. English [1]. Group 3: Board Comments - Bill Lasky, chairman of the Stoneridge Board, expressed confidence in Mr. English's extensive capital markets experience and the insights he will bring to the board [1]. - Mr. English emphasized his commitment to adding value to the company's long-term strategy and enhancing shareholder value [1].

Core Viewpoint - Stoneridge, Inc. announces the retirement of President and CEO Jim Zizelman effective May 20, 2026, and the appointment of Natalia Noblet as the new President and CEO, marking a planned leadership transition aimed at ensuring continuity and long-term value creation [1]. Leadership Transition - Jim Zizelman will retire on May 20, 2026, after nearly seven years of service, transitioning to a strategic advisor role until March 31, 2026 [1]. - Natalia Noblet, currently President of Stoneridge Electronics, will assume the role of President and CEO on April 1, 2026, and will also join the board of directors [1]. - The leadership transition is part of a succession planning strategy prioritized by the Board of Directors to maintain leadership continuity during a transformative period for the company [1]. Contributions and Background - Jim Zizelman has been instrumental in advancing Stoneridge's transformation and growth strategy, particularly in the Control Devices segment since 2020, focusing on electrification and operational excellence [1]. - Natalia Noblet joined Stoneridge in September 2024 and has a strong track record in the industry, having previously held senior roles at WABCO and ZF, where she led significant operational transformation initiatives [1]. Future Focus - Natalia Noblet emphasizes her commitment to delivering value to customers and advancing next-generation technologies for safer and more efficient transportation [1]. - The planned transition reflects Stoneridge's dedication to disciplined governance, leadership development, and long-term shareholder value [1].