Stoneridge Reports Fourth Quarter and Full-Year 2025 Results

Core Insights - Stoneridge reported a net loss of $76.9 million for Q4 2025, which includes a $16.7 million impairment of Control Devices assets and a $44.5 million tax valuation allowance [1][2] - The company achieved a 69% growth in MirrorEye sales, totaling $111 million in 2025, outperforming end-markets by 150 basis points [1][3] - For 2026, Stoneridge expects revenue guidance of $625 million to $650 million, with a midpoint of $638 million, representing a 4.2% growth compared to 2025 [1][2] Financial Performance - Q4 2025 sales were $205.2 million, with a gross profit of $33.2 million (16.2% of sales) and an adjusted EBITDA of $3.4 million (1.7% of sales) [1][2] - Full-year 2025 sales totaled $861.3 million, with a gross profit of $171.2 million (19.9% of sales) and an adjusted EBITDA of $25.0 million (2.9% of sales) [1][2] - The company reported a full-year net loss of $102.8 million, with an adjusted net loss of $31.9 million [1][2] Segment Performance - Electronics segment Q4 sales decreased by 10.8% to $133.2 million, primarily due to lower commercial vehicle production volumes [2][3] - Stoneridge Brazil's Q4 sales increased by 33.3% to $16.6 million, driven by OEM and aftermarket sales [2][3] - Control Devices segment Q4 sales increased by 2.0% to $64.4 million, attributed to higher passenger vehicle sales in North America and China [2][3] Cost Management - The company achieved an 80-basis point improvement in material costs and reduced quality-related costs by $6.6 million in 2025 [1][3] - Stoneridge expects to drive significant margin improvement through continued performance enhancements and structural cost reductions, targeting an adjusted EBITDA of $20 million to $25 million for 2026 [1][2] Future Outlook - For 2027, Stoneridge targets revenue of at least $715 million, driven by improving market conditions and continued growth in MirrorEye [1][3] - The company anticipates 2027 EBITDA of at least $44 million, with potential for further expansion through cost improvements [1][3] - Long-term targets include a revenue goal of $850 million to $1 billion by 2030, with an expected EBITDA margin of approximately 9.5% to 12.0% [3]