Financial Data and Key Metrics Changes - In Q3 2025, adjusted EBITDA was $11.7 million, a $3.6 million improvement over the prior quarter, resulting in a margin of 5.6%, a 200 basis point increase [4][9] - Sales in Q3 were $210 million, a decline of 7.8% compared to Q2, primarily due to reduced customer production volumes in key commercial vehicle markets [8][15] - Adjusted operating income for Q3 was $2.4 million, with a 100 basis point improvement in adjusted operating margin compared to Q2 [15] Business Line Data and Key Metrics Changes - Control devices' Q3 sales were $72.5 million, a 1.9% increase from Q2, driven by higher sales in the North American passenger vehicle market [17] - Electronics segment reported Q3 sales of $128 million, impacted by production volume reductions in commercial vehicle markets, but adjusted operating margin improved by 250 basis points to 5.3% [19] - Stoneridge Brazil's Q3 sales totaled $18.9 million, a 23.5% increase from Q2, driven by higher local OEM sales [20] Market Data and Key Metrics Changes - North American commercial vehicle production fell by approximately 21% quarter to quarter, while European production declined by about 9% [8][19] - Despite market pressures, Mirai sales increased by 78% year-to-date compared to the previous year, with strong take rates in Europe [5][11] Company Strategy and Development Direction - The company is focused on long-term growth through advanced technologies and alignment with industry megatrends, driving new business awards and strong performance across segments [6][7] - A strategic review of alternatives for control devices is ongoing, with updates expected when appropriate [7][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic pressures affecting top-line performance but emphasized resilience in core operational performance [8][15] - The company expects continued volatility in end markets but remains focused on factors within its control to drive margin expansion [10][22] Other Important Information - The company updated its full-year revenue guidance to reflect lower production volume expectations, now guiding to the low end of the previous range of $860-$870 million [21][22] - Year-to-date adjusted free cash flow improved by $4.3 million, or approximately 36% relative to last year [23] Q&A Session Summary Question: What are the expectations for production volumes in the fourth quarter? - Management indicated potential production volume volatility due to uncertainty related to tariff policies and supply chain constraints [18] Question: How is the company addressing the impacts of macroeconomic conditions? - The company is focusing on advanced product development, commercial expansion, and improving material costs to drive margin expansion [18][22]

Q3 2025 Financial Performance - Sales reached $210.3 million[5] - Gross profit was $42.8 million, with a margin of 20.3%[5] - Adjusted gross profit was $43.7 million, resulting in a margin of 20.8%[5] - Operating loss was $(3.3) million, while adjusted operating income was $2.4 million, yielding a margin of 1.2%[5] - Net loss amounted to $(9.4) million, or (4.5)% of sales[5] - Adjusted net loss was $(5.1) million, representing (2.4)% of sales[5] - Adjusted EBITDA stood at $9.3 million, with a margin of 4.4%[5] Cash Flow and Debt - Cash and cash equivalents totaled $54.0 million[6] - Total debt was $171.1 million[6] - Net debt (Non-GAAP) was $117.2 million[6] - Year-to-date net cash provided by operating activities was $25.2 million[6] - Year-to-date adjusted free cash flow (Non-GAAP) was $16.2 million[6] Business Updates - MirrorEye year-to-date sales growth of 78% compared to the same period in 2024[10] - Total Program Award of MirrorEye program with an additional OEM customer is ~$55 million[17] - Total Program Award of Park Lock Actuator program extensions with Ford is $130 million with estimated peak annual revenue ~$38 million[21] Full-Year 2025 Guidance - Updated full-year revenue guidance to the low end of the previously provided range, $860 million - $870 million[44] - Adjusted EBITDA of $30 million - $32 million (3.5% - 3.7% of sales)[44]

Core Insights - Stoneridge, Inc. reported third quarter sales of $210.3 million, with a gross profit of $42.8 million, representing 20.3% of sales, and an adjusted gross profit of $43.7 million, or 20.8% of sales [2][12] - The company experienced an operating loss of $(3.3) million, while adjusted operating income was $2.4 million, indicating a 1.2% operating margin [2][12] - Stoneridge is updating its full-year 2025 sales guidance to a range of $860 million to $870 million, reflecting lower production volume expectations primarily in the North American commercial vehicle market [14][15] Financial Performance - The net loss for the third quarter was $(9.4) million, with an adjusted net loss of $(5.1) million, leading to a loss per share of $(0.34) and an adjusted EPS of $(0.18) [2][12] - Adjusted EBITDA for the quarter was $9.3 million, or 4.4% of sales, improving to $11.7 million, or 5.6% of sales when excluding a non-operating foreign currency expense of $2.4 million [2][12] - The company generated $25.2 million in net cash from operating activities for the nine months ended September 30, 2025, and reported total cash and cash equivalents of $54.0 million [11][26] Segment Performance - Electronics segment sales decreased by 14.4% from the previous quarter to $128.0 million, primarily due to lower customer production volumes in North America and Europe [5][8] - Control Devices segment sales increased by 1.9% to $72.5 million, driven by higher sales in the North American passenger vehicle market, although partially offset by lower sales in China [6][9] - Stoneridge Brazil reported a 23.5% increase in sales to $18.9 million, attributed to higher OEM and aftermarket sales [7][10] Strategic Developments - The company announced a new MirrorEye OEM program with an additional truck manufacturer, expected to launch in 2028, with an estimated lifetime revenue of $55 million [4][12] - Stoneridge is also expanding its park lock actuator programs with Ford, projecting lifetime revenue of approximately $130 million [4][12] - A strategic review of the Control Devices business is ongoing, with the intent to potentially sell the segment [4][13] Market Outlook - The company anticipates improved take rates for its MirrorEye systems in North America, despite facing macroeconomic headwinds [4][15] - Stoneridge remains focused on long-term profitable growth through advanced technology offerings aligned with industry megatrends [4][15]