Company Overview - Stoneridge operates in three segments: Control Devices (32% of total 2024 revenue), Electronics (62% of total 2024 revenue), and Stoneridge Brazil (6% of total 2024 revenue)[6] - Stoneridge anticipates ~$120M+ in revenue from MirrorEye in 2025[26] - Stoneridge projects ~$300M+ in OEM revenue by 2029 from MirrorEye[27] MirrorEye® CMS - MirrorEye offers a 2-3% improvement in fuel efficiency, leading to a reduction in CO2 emissions[20] - MirrorEye has been adopted by 40+ North American fleet partners[22] - MirrorEye was launched in the EU in Q1 2024 by Volvo and in North America in Q1 2025[23] Q1 2025 Performance - Stoneridge reported a 210 bps improvement in adjusted gross margin compared to Q4 2024[33] - The company's free cash flow in Q1 2025 was $4.9M, a $1.5M improvement compared to Q1 2024[34,40] - MirrorEye revenue grew by ~24% compared to Q4 2024[34] - Stoneridge achieved a $28M year-over-year reduction in inventory[34] - Quality-related costs improved by $2.5M compared to Q4 2024[34]

Stoneridge (SRI) 2025 Conference Summary Company Overview - Stoneridge is a leading global supplier of electronic systems and technologies focused on safety, efficiency, and vehicle intelligence in the automotive and commercial vehicle sectors [1][2][4] Core Industry Trends - The company aligns its product strategy with megatrends in the industry, emphasizing driveline agnostic technologies that can be applied across various vehicle types, including internal combustion, hybrid, and electric vehicles [4][5][6] Product Segments 1. **Control Devices** - Represents approximately 1% of total revenue, focusing on passenger vehicle applications, particularly SUVs and pickup trucks [7][8] - Transitioned to agnostic products over the past five years, ensuring readiness for regulatory changes [8][9] - Key products include electromechanical actuators, temperature sensors, and control valves, with 90% of products being driveline agnostic [15][16] 2. **Electronics** - Comprises about 60% of total revenue, targeting commercial vehicles, off-highway, and bus markets [9][10] - Products include driver information systems, driver assistance systems, and control modules [11][12] - Significant growth in digital driver information systems and vision systems, particularly with partnerships in the industrial sector [27][28] 3. **Stoneridge Brazil** - Transitioning from an aftermarket focus to an OEM business model, with a 60% increase in OE business quarter-over-quarter [13][14][25] Key Innovations - **MirrorEye System** - A camera mirror system that replaces traditional mirrors, improving fuel economy by 2-3% and enhancing safety by eliminating blind spots [34][35] - Expected revenue of $120 million in 2025, with projections to grow to $300 million by 2029 [42][43] - Strong market adoption, with a 40% take rate in existing programs and significant interest from major truck manufacturers [44][45][46] - **Connected Trailer Technology** - Allows for retrofitting existing trailers with advanced camera and sensor systems without additional wiring, enhancing operational efficiency [51][52] Financial Performance - The company has seen strong revenue growth and margin improvement, outperforming underlying end markets [55][56] - A reduction in inventory by $28 million year-over-year has contributed to improved cash performance [57] Future Outlook - Stoneridge is well-positioned to capitalize on the rise of autonomous vehicles, viewing it as an opportunity rather than a threat [60] - The company is focused on expanding its technology offerings and maintaining strong relationships with customers to navigate potential tariff impacts [58][59] Conclusion - Stoneridge's strategic focus on innovation, diversification, and alignment with industry megatrends positions it for continued growth and profitability in the evolving automotive landscape [58][59]

Group 1 - The article highlights Stoneridge as a noteworthy small company for value investors to analyze [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, emphasizing value and growth prospects in the oil and natural gas sector [1] - Subscribers to Crude Value Insights benefit from a stock model account, in-depth cash flow analyses of exploration and production firms, and live discussions about the sector [2] Group 2 - A two-week free trial is offered for new subscribers to explore the services related to oil and gas investments [3]

Core Points - Sparton Resources Inc. has closed an agreement with Eldorado Gold Corporation for the acquisition of Sparton's remaining 25% interest in the Bruell Gold Project, effective May 29, 2025 [1] - The agreement allows Eldorado to purchase the 25% interest for $275,000 plus a 2% Net Smelter Return Royalty, a significant reduction from the original option price of $1.8 million [2] - Following this transaction, Eldorado will own 100% of the Bruell Gold Project, while Sparton retains the Production NSR [2] Financial Implications - The original agreement included a buyout option for 50% of the NSR for $2.5 million, which has been retained in the new agreement [2] - The decision to sell the interest was influenced by the current state of the junior exploration sector and Sparton's share price, allowing the company to obtain cash for current commitments and pursue other opportunities [3] Strategic Decisions - The Board of Sparton decided to forego future participation costs related to the exploration and development of the Bruell property to focus on its wholly owned critical mineral and precious metals properties [3]

Core Insights - Stoneridge, Inc. has launched the SE5000 Smart 2 tachograph, which integrates OSNMA technology to enhance security for European commercial vehicles [1][3] - The new tachograph complies with the EU Mobility Package I regulations aimed at improving road safety and ensuring fair competition in international transport [2] - The SE5000 Smart 2 features updated software for improved performance and user experience, benefiting fleets, drivers, and workshops [3] Product Features - The SE5000 Smart 2 utilizes GNSS technology, specifically the Galileo satellite system, requiring stable reception from at least three satellites for accurate vehicle positioning [1] - OSNMA technology adds a layer of security by verifying the authenticity of GNSS signals, thus mitigating spoofing risks [1] - Existing SE5000 Smart 2 units can be upgraded to the new OSNMA features via a software update [4] Regulatory Compliance - The tachograph meets the requirements set forth by the EU Mobility Package I, which mandates the installation of second-generation smart tachographs in new vehicles from August 21, 2023, and retrofitting in vehicles involved in international transport by August 19, 2025 [2]

Financial Data and Key Metrics Changes - The company reported first quarter sales of $217.9 million, which was approximately in line with expectations [15] - Adjusted EBITDA for the first quarter was $7.6 million, reflecting an improvement of $1.6 million or 80 basis points compared to the fourth quarter [10][15] - Adjusted gross margin improved by 210 basis points, contributing to overall margin expansion [4][9] - Free cash flow increased to approximately $4.9 million, up by $1.5 million compared to the first quarter of the prior year [5][24] Business Line Data and Key Metrics Changes - MirrorEye revenue increased by 24% compared to the fourth quarter of 2024, driven by strong sales in the bus market and ramp-up of OEM programs [4][20] - Control Devices first quarter sales were $69.9 million, a 10.6% increase relative to the fourth quarter, primarily due to higher production volumes for North American passenger vehicle customers [18] - Electronics first quarter sales were $140.5 million, slightly lower than the previous quarter, but MirrorEye and SMART II Tachograph set records for quarterly sales [20][22] - Stoneridge Brazil's first quarter sales totaled $14.4 million, representing a 16% growth, driven by a 60% increase in local OEM sales [22][23] Market Data and Key Metrics Changes - The company experienced minimal direct impact from tariffs in the first quarter, with approximately 91% of product sales from Mexico exempt from tariffs due to USMCA certification [11][12] - The company noted that while there is uncertainty in consumer demand and production volumes due to tariffs, they are well-positioned to mitigate these impacts [13][14] Company Strategy and Development Direction - The company is maintaining its full-year guidance based on first quarter outperformance and expects continued progress on material cost improvement initiatives [8][16] - There is a focus on operational excellence, inventory reduction, and cash performance to drive earnings and shareholder value [7][26] - The company is strategically expanding its local OEM business in Brazil to unlock global opportunities [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating global trade policies and mitigating tariff impacts on performance [26] - The company anticipates continued expansion of MirrorEye sales in the second half of the year, offsetting production volume headwinds [17] - Management remains focused on quality improvements and operational execution to drive strong contribution margins [26] Other Important Information - The company achieved a $2.5 million reduction in quality-related costs compared to the previous quarter, indicating improved operational efficiency [5][51] - The company is committed to maintaining a targeted compliance net debt to EBITDA leverage ratio of 2 to 2.5 times by the end of the year [24][25] Q&A Session Summary Question: Can you unpack the momentum in Electronics, particularly for MirrorEye and Smart2? - Management noted significant traction from the launch with Volvo in Europe and expects continued sales growth as new programs ramp up in North America [32] Question: What are you hearing from auto customers regarding demand impacts from tariffs? - Management indicated robust orders in the first quarter, with no significant short-term impacts on demand yet observed [36] Question: How sustainable are the improvements in inventory management as the industry grows? - Management believes there is still room for improvement in inventory turns and expects to maintain these improvements even as revenue grows [41] Question: Can you address the quality-related costs and their impact moving forward? - Management reported significant progress in reducing quality-related expenses and emphasized the importance of built-in quality processes [52] Question: Is production of MirrorEye and Tachograph products affected by tariffs? - Management confirmed that both products are produced in Europe, thus avoiding tariff issues [57][59] Question: Has the outlook for MirrorEye revenue changed? - Management stated there has been no change in the outlook, with good momentum observed in existing programs [60] Question: What is the status of the connected trailer suite of products? - Management reported positive progress and expects some evaluation by customers towards the end of 2025 [62] Question: How do current production forecasts align with your expectations for 2025? - Management feels comfortable that they can maintain guidance within the broad range of production forecasts despite current volatility [65]

Financial Data and Key Metrics Changes - The company reported first quarter sales of $217.9 million, which was approximately in line with expectations [14] - Adjusted EBITDA for the first quarter was $7.6 million, reflecting an improvement of $1.6 million or 80 basis points compared to the fourth quarter [10][14] - Adjusted gross margin improved by 210 basis points in the first quarter, contributing to adjusted operating margin expansion of 160 basis points [5][9] - Free cash flow was approximately $4.9 million, an increase of $1.5 million compared to the first quarter of the prior year [24] Business Line Data and Key Metrics Changes - MirrorEye revenue increased by 24% compared to the fourth quarter of 2024, driven by strong sales in the bus market and ramp-up of OEM programs [4][20] - Control Devices first quarter sales were $69.9 million, a 10.6% increase relative to the fourth quarter, outperforming the North American passenger vehicle market which grew by only 3.9% [18] - Electronics segment sales were $140.5 million, slightly lower than the previous quarter, but driven by record sales of MirrorEye and SMART II Tachograph [20][22] - Stoneridge Brazil's first quarter sales totaled $14.4 million, representing a 16% growth, primarily due to a 60% increase in local OEM sales [22][23] Market Data and Key Metrics Changes - The company experienced minimal direct impact from tariffs in the first quarter, with approximately 91% of product sales from Mexico being exempt from tariffs due to USMCA certification [11][12] - The company is actively working to secure price increases to offset potential tariff-related costs and is focused on increasing the number of USMCA certified products [12][13] Company Strategy and Development Direction - The company is maintaining its full-year guidance despite external production forecast reductions, indicating confidence in its operational strategies and market positioning [8][16] - Stoneridge is focused on operational excellence, material cost improvements, and quality enhancements to drive earnings and cash performance [7][26] - The company aims to capitalize on its advanced technologies and maintain a strong foundation for continued earnings expansion [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating global trade policies and mitigating tariff impacts, emphasizing strong communication with suppliers and customers [27] - The company expects continued progress on material cost improvement initiatives and quality-related costs for the remainder of the year [16][17] - Management noted that while there is uncertainty in consumer demand due to tariffs, orders have remained robust thus far [36] Other Important Information - The company achieved a $28 million reduction in inventory compared to the previous year, contributing to improved cash flow [24] - The net debt to trailing twelve-month EBITDA ratio was just under four times, with a targeted compliance ratio of 2 to 2.5 times by year-end [25] Q&A Session Summary Question: Can you unpack the momentum in Electronics, particularly for MirrorEye and Smart2? - Management highlighted significant traction with the Volvo launch in Europe and strong aftermarket interest, expecting continued sales growth [32] Question: What are the expected margin increases throughout the year? - Management anticipates a linear progression of margins as material cost and quality initiatives mature, with typical contribution margins expected to be 25% to 30% [33] Question: What are the impacts of tariffs on demand? - Management noted that while there are some changes in demand, the overall impact has not been significant, and most products remain USMCA compliant [36] Question: How sustainable are the improvements in inventory management? - Management indicated that there is still room for improvement in inventory turns, which should remain sustainable even as the company grows [40] Question: What is the outlook for MirrorEye revenue? - Management confirmed no change in the outlook for MirrorEye revenue, citing strong volume from existing programs and positive momentum in the aftermarket [54] Question: Are there any quality-related issues expected in the future? - Management acknowledged that while quality issues can arise, significant improvements have been made in managing quality-related costs and processes [46][48]

Financial Performance - Q1 2025 sales were $217.9 million[5], relatively in line with Q4 2024[12] - Adjusted gross profit for Q1 2025 was $47.7 million[5], with a margin of 21.9%[5], a 210 bps increase compared to Q4 2024[9] - Adjusted EBITDA for Q1 2025 was $7.6 million[5], representing a margin of 3.5%[5], an 80 bps improvement from Q4 2024[9] - Free cash flow for Q1 2025 was $4.9 million[5], a $1.5 million improvement compared to Q1 2024[9] Segment Results - Control Devices sales increased by 10.6% compared to Q4 2024, reaching $69.9 million in Q1 2025[24] - Electronics division saw MirrorEye revenue increase by approximately 24% compared to Q4 2024[9], setting a quarterly sales record[12] - Stoneridge Brazil OEM sales increased by over 60% compared to Q4 2024[9], reaching $14.4 million in Q1 2025[33] Guidance and Outlook - The company is maintaining its full-year 2025 revenue guidance of $860 million to $890 million[21] - Full-year adjusted gross profit guidance is $189 million to $200 million, with a margin of 220% to 225%[21] - The company anticipates free cash flow between $25 million and $30 million for the full year 2025[21]

PART I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 net loss was $7.2 million, with total assets at $657.4 million and positive operating cash flow Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (in thousands, except per share data) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net sales** | **$217,890** | **$239,157** | | Cost of goods sold | $171,593 | $190,800 | | Operating (loss) income | $(3,225) | $331 | | **Net loss** | **$(7,196)** | **$(6,126)** | | **Diluted loss per share** | **$(0.26)** | **$(0.22)** | Condensed Consolidated Balance Sheets (As of March 31, 2025) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$418,021** | **$387,514** | | **Total assets** | **$657,359** | **$621,556** | | Total current liabilities | $175,164 | $149,972 | | Revolving credit facility | $203,186 | $201,577 | | **Total liabilities** | **$404,263** | **$376,296** | | **Total shareholders' equity** | **$253,096** | **$245,260** | Condensed Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | (in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$10,897** | **$9,109** | | Net cash used for investing activities | $(5,988) | $(5,714) | | Net cash (used for) provided by financing activities | $(787) | $5,388 | | **Net change in cash and cash equivalents** | **$7,277** | **$7,599** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, Q1 2025 revenue decrease, credit facility amendment, realignment costs, and a €29.3 million warranty claim Revenue by Reportable Segment (Q1 2025 vs Q1 2024) | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Control Devices | $68,833 | $77,158 | | Electronics | $134,783 | $149,783 | | Stoneridge Brazil | $14,274 | $12,216 | | **Total net sales** | **$217,890** | **$239,157** | - In February 2025, the company amended its credit agreement for covenant relief, increasing the maximum leverage ratio to **6.00 for Q1 2025** and temporarily reducing or waiving the minimum interest coverage ratio[57](index=57&type=chunk) - The company incurred **$2.8 million in business realignment charges** in Q1 2025, primarily for severance costs related to operational efficiency initiatives and executive separation[77](index=77&type=chunk)[78](index=78&type=chunk) - A customer initiated arbitration demanding **€29.3 million ($31.7 million)** for warranty claims on a PM sensor product line, which the company is vigorously defending and does not deem a material loss probable[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales declined 8.9% in Q1 2025, gross margin improved to 21.2%, and liquidity is supported by cash and credit facility amendment [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2025 net sales fell 8.9% to $217.9 million, driven by segment declines, while Stoneridge Brazil grew 16.8%, resulting in a $3.2 million operating loss Net Sales by Segment (Q1 2025 vs Q1 2024) | (in thousands) | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Control Devices | $68,833 | $77,158 | $(8,325) | (10.8)% | | Electronics | $134,783 | $149,783 | $(15,000) | (10.0)% | | Stoneridge Brazil | $14,274 | $12,216 | $2,058 | 16.8% | | **Total net sales** | **$217,890** | **$239,157** | **$(21,267)** | **(8.9)%** | Operating (Loss) Income by Segment (Q1 2025 vs Q1 2024) | (in thousands) | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Control Devices | $1,165 | $2,164 | $(999) | (46.2)% | | Electronics | $5,505 | $7,089 | $(1,584) | (22.3)% | | Stoneridge Brazil | $585 | $204 | $381 | 186.8% | | Unallocated corporate | $(10,480) | $(9,126) | $(1,354) | (14.8)% | | **Total operating (loss) income** | **$(3,225)** | **$331** | **$(3,556)** | **(1074.3)%** | - Gross margin increased to **21.2% in Q1 2025** from 20.2% in Q1 2024, primarily due to lower material costs as a percentage of sales, including favorable foreign exchange variances[129](index=129&type=chunk) - SG&A expenses increased by **$1.3 million**, primarily due to higher business realignment costs and professional services, partially offset by lower incentive compensation[132](index=132&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is from operations, cash, and a $275.0 million credit facility, with $79.1 million cash and an amended facility providing covenant relief - As of March 31, 2025, the company had a cash balance of **$79.1 million** and **$71.8 million** of undrawn commitments, totaling over **$150.9 million** in available liquidity[152](index=152&type=chunk) - The company amended its Credit Facility in February 2025, providing covenant relief through December 31, 2025, including increasing the maximum leverage ratio to **6.00 for Q1 2025** and waiving the minimum interest coverage ratio for Q4 2024[145](index=145&type=chunk) Summary of Cash Flows (Q1 2025 vs Q1 2024) | (in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,897 | $9,109 | | Net cash used for investing activities | $(5,988) | $(5,714) | | Net cash (used for) provided by financing activities | $(787) | $5,388 | [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred to the company's market risk disclosures from the 2024 Form 10-K - There have been no material changes to the Company's market risk disclosures from those previously presented in the 2024 Form 10-K[160](index=160&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal control - Management, including the PEO and PFO, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[161](index=161&type=chunk) - No changes occurred in the Company's internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, these controls[162](index=162&type=chunk) PART II [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company faces various legal actions, including Brazil contingencies and warranty claims, but expects no material adverse effect - The company is subject to various legal actions but does not expect them to have a material adverse effect on its business or financial position[164](index=164&type=chunk) - Specific legal risks include civil, labor, and tax contingencies in Brazil, as well as product liability and warranty claims, with potential recall participation if defects are found[164](index=164&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the 2024 Form 10-K - No material changes have occurred with respect to risk factors previously disclosed in the Company's 2024 Form 10-K[165](index=165&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased 41,004 Common Shares from employees for tax withholding obligations Common Share Repurchases (Q1 2025) | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | 1/1/25-1/31/25 | 649 | $6.27 | | 2/1/25-2/28/25 | 7,122 | $5.62 | | 3/1/25-3/31/25 | 33,233 | $5.47 | | **Total** | **41,004** | **N/A** | - The repurchased shares were delivered by employees as payment for withholding taxes due upon vesting of equity awards and were not part of a publicly announced repurchase plan[166](index=166&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[170](index=170&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) Key exhibits include a Separation Agreement, Credit Agreement amendment, and CEO/CFO Sarbanes-Oxley certifications - Key exhibits filed with the report include a Separation Agreement, an amendment to the company's Credit Agreement, and CEO/CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[171](index=171&type=chunk)

Exhibit 99.1 FOR IMMEDIATE RELEASE Stoneridge Reports First Quarter 2025 Results Strong Quarter-to-Quarter Margin Progression MirrorEye® and SMART 2 Tachograph Set Quarterly Sales Records Maintaining Previously Provided Full-Year 2025 Guidance 2025 First Quarter Results 2025 Full-Year Guidance • Maintaining previously provided full-year 2025 guidance ranges NOVI, Mich. – April 30, 2025– Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2025. The Company ann ...