Stoneridge (SRI) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Good day, and welcome to the Stoneridge Inc. Second Quarter twenty twenty five Results Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.I would now like to turn the conference over to Kelly Harvey, Director of Investor Relations. PleaseSpeaker1Good morning, everyone, and thank you for joining us to discuss ...

Financial Data and Key Metrics Changes - The company reported record revenues of $93 million for the three-month period and $186 million for the six-month period, representing a 1% and 4% increase respectively compared to the same period last year [4][5] - Gross profit reached $28 million for the quarter and $56 million for the six months, with a gross margin of 30% for the six-month period [4][8] - Adjusted EBITDA for the six-month period was $12.7 million, reflecting a compounded annual growth rate of 28% since 2016 [4][10] Business Line Data and Key Metrics Changes - The modest revenue increases were attributed to irregular industrial revenue and delays in large sales order contracts, despite a recurring base of industrial business [6][7] - The company achieved record gross profits, partly due to a shift towards higher-margin parts and services [8] Market Data and Key Metrics Changes - The company has a backlog of over $100 million in equipment sales, indicating strong future revenue potential [7] - The company completed two acquisitions during the six-month period and a third acquisition shortly after, expanding its presence in the Southeast and Midwest regions of the United States [11][12] Company Strategy and Development Direction - The long-term growth strategy focuses on becoming a leader in the commercial laundry industry, with a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 31%, 19%, and 28% respectively since 2016 [3][4] - The company emphasizes a "buy and build" strategy, acquiring family-owned businesses while preserving their culture and legacy [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth prospects, citing a strong financial position and ongoing investments in technology and acquisitions [10][14] - The company aims to leverage its technology initiatives to enhance sales and operational efficiency, despite short-term financial impacts [9][10] Other Important Information - A special cash dividend of $4.6 million was declared, marking the largest dividend in the company's history [5][10] - The company has increased its net debt from $8.3 million to $24 million due to acquisitions and working capital investments [11] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.