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

Core Viewpoint - Standard Motor Products, Inc. reported strong financial results for Q1 2025, with significant increases in net sales and earnings compared to the same period in 2024, driven by robust performance across various segments and the recent acquisition of Nissens Automotive [2][3][10]. Financial Performance - Net sales for Q1 2025 reached $413.4 million, a 24.7% increase from $331.4 million in Q1 2024 [2][10]. - Earnings from continuing operations were $13.7 million, or $0.61 per diluted share, compared to $9.9 million, or $0.44 per diluted share in Q1 2024 [2][10]. - Adjusted diluted earnings per share increased by 80% to $0.81, up from $0.45 in the previous year [2][10]. Segment Performance - The North American aftermarket business showed strong results, with Vehicle Control sales increasing by 3.7% and Temperature Control segment sales rising by 24.1% [3][4]. - Engineered Solutions segment sales declined by 11.2%, but profitability improved due to a better customer and product mix [5]. - Nissens Automotive contributed $66.2 million in sales during its first full quarter, with an adjusted EBITDA margin of 17.3% [6]. Profitability Metrics - Adjusted EBITDA for Q1 2025 was $42.8 million, up from $22.9 million in Q1 2024, with a margin increase of 350 basis points to 10.4% [7][10]. - The company achieved a gross profit of $124.7 million, reflecting a gross margin of 30.2%, compared to 27.0% in the previous year [16][18]. Balance Sheet and Cash Flow - Total net debt at the end of Q1 2025 was $600.3 million, primarily due to borrowings related to the Nissens acquisition [8]. - Cash and cash equivalents increased to $50.3 million from $27.1 million year-over-year [24][25]. Market Outlook - The company maintains its guidance for mid-teens top-line growth and an adjusted EBITDA margin of 10-11% for the year, although this excludes potential impacts from tariffs [11]. - The diverse global footprint is expected to provide a competitive advantage, with over half of U.S. sales coming from USMCA-compliant products [9][11]. Dividend Declaration - The Board of Directors approved a quarterly dividend of $0.31 per share, payable on June 2, 2025 [12].