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

Core Insights - Standard Motor Products, Inc. reported strong financial results for Q3 2025, with net sales of $498.8 million, a 24.9% increase from $399.3 million in Q3 2024, and earnings from continuing operations of $29.8 million or $1.32 per diluted share, up from $26.6 million or $1.20 per diluted share in the same period last year [2][11] Financial Performance - Q3 2025 net sales reached $498.8 million, a 24.9% increase year-over-year, while year-to-date sales for the first nine months of 2025 totaled $1.41 billion, up from $1.12 billion in 2024 [2][11] - Adjusted non-GAAP diluted earnings per share for Q3 2025 were $1.36, a 6.3% increase from $1.28 in Q3 2024, and year-to-date adjusted earnings per share were $3.45, up 27.8% from $2.70 in the same period last year [2][11] Segment Performance - The Nissens segment contributed $84.5 million in sales with an adjusted EBITDA margin of 16.8%, aligning with full-year expectations [3] - The Engineered Solutions segment saw flat sales, indicating stabilization in certain end markets, while the Temperature Control segment experienced a 14.8% increase in sales [12] Profitability and Balance Sheet - Adjusted EBITDA for Q3 2025 increased to $61.7 million from $48.7 million in the previous year, driven by strong performance in the Temperature Control segment and contributions from Nissens [4] - Total net debt at the end of the quarter was $502.3 million, with a debt leverage ratio declining from 3.2x to 2.6x [5] Guidance and Outlook - The company raised its full-year sales growth guidance to the low-to-mid 20% range and tightened its adjusted EBITDA margin outlook to 10.5% - 11% [7] - The guidance reflects strong year-to-date results and includes the impact of tariffs, with ongoing pricing strategies to mitigate costs [7] Dividends - The Board of Directors approved a quarterly dividend of $0.31 per share, payable on December 1, 2025, to stockholders of record on November 14, 2025 [8] Closing Remarks - The CEO expressed optimism about the company's future, highlighting solid demand for North American aftermarket products and ongoing investments to expand globally [9]