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

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]