Standard Motor Q2 Earnings Beat Expectations, Revenues Rise Y/Y

Core Insights - Standard Motor Products (SMP) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.29, exceeding the Zacks Consensus Estimate of 97 cents and increasing from 98 cents in the prior-year quarter [1] - Total revenues reached $493.9 million, up from $389.8 million in the second quarter of 2024, surpassing the Zacks Consensus Estimate of $450 million [2] - Gross profit increased to $152.5 million from $111.4 million year-over-year, while operating income rose to $46.3 million from $30 million in the prior-year quarter [2] Segmental Results - Vehicle Control segment revenues were $201.7 million, a 6.9% year-over-year increase, exceeding the estimate of $178.9 million, with operating income rising to $17.1 million from $16.1 million [3] - Temperature Control segment revenues reached $131.4 million, up from $124.5 million year-over-year, driven by early customer orders, surpassing the estimate of $120.5 million; operating income increased to $19.5 million from $13.4 million [4] - Engineered Solutions segment revenues totaled $70.3 million, down 8.2% year-over-year, missing the estimate of $80.6 million, with operating income declining to $4 million from $6.2 million [5] - Nissens Automotive segment revenues were $90.5 million, exceeding the expectation of $69.5 million, with operating income of $12.8 million, surpassing the estimate of $4.9 million [5] Financial Position - As of June 30, 2025, the company had $58.8 million in cash, up from $44.4 million at the end of 2024; long-term debt increased to $605.8 million from $535.2 million [6] - Net cash used by operating activities was $5.9 million at the end of the second quarter of 2025; SG&A expenses rose 28.1% to $107.5 million [6] Dividend and Guidance - The company declared a quarterly dividend of 31 cents per share, payable on September 2, 2025, to stockholders of record as of August 15, 2025 [7] - For 2025, SMP expects sales growth in the low-20s percent range, an increase from the previous mid-teens percent estimate, and reaffirms adjusted EBITDA guidance of 10-11% of total revenues [8]