Core Insights - Stoneridge's MirrorEye segment experienced significant growth, with sales reaching approximately $111 million in 2025, marking a 70% increase year-over-year, and OEM revenue growing by 84% due to increased European take rates and new programs with Daimler and Volvo [1][2][7] Financial Performance - The company reported adjusted EBITDA of $28.6 million for the full year, which is 3.3% of sales, reflecting a decline of 60 basis points compared to the previous year [13] - Adjusted free cash flow was approximately $19 million in 2025, driven by an improvement in inventory balances [14] - Management expects revenue growth of about 4.2% in 2026, primarily from MirrorEye, with a midpoint EBITDA guidance of $22.5 million [5][18] Strategic Initiatives - Stoneridge completed the sale of its Control Devices segment for a base price of $59 million to focus on higher-return businesses and reduce organizational complexity [6][9] - The company anticipates significant growth in MirrorEye, projecting sales to increase by approximately $50 million to at least $160 million in 2026, driven by maturing OEM programs and improved take rates [7][16] Market Outlook - Management is taking a conservative approach to revenue expectations for 2026, assuming flat OEM end markets despite third-party forecasts indicating potential recovery in North American and European production [15] - The company expects a decline of roughly $12 million in aftermarket Smart 2 tachograph sales in 2026, while OEM programs are anticipated to remain flat [17] Leadership Transition - A leadership transition is underway, with Jim Zizelman remaining CEO until March 31, after which Natalia Noblet will take over as president and CEO [19][20] - The company aims for revenue of at least $750 million in 2027 and $850 million to $1 billion by 2030, driven by market recovery and expansion of technology offerings [20][21]

Financial Data and Key Metrics Changes - In 2025, the company achieved sales of over $110 million for the MirrorEye platform, representing approximately 70% growth compared to the prior year [5] - Full-year adjusted EBITDA was $28.6 million, or 3.3% of sales, reflecting a 60 basis point decline compared to the prior year [14] - Positive free cash flow of approximately $19 million was driven by a significant improvement in inventory balances of $18.7 million [7][15] Business Line Data and Key Metrics Changes - The electronics segment reported full-year sales of $551 million, outperforming the weighted average OEM end markets by approximately 430 basis points [33] - MirrorEye sales totaled $111 million in 2025, resulting in growth of $45 million or 69% compared to the prior year [33] - Stoneridge Brazil experienced full-year sales growth of $15 million or approximately 30%, with OEM sales reaching a record $26.7 million [34][35] Market Data and Key Metrics Changes - The weighted average OEM end markets experienced a nearly 7% decline in 2025 compared to initial expectations of flat conditions [38] - North American OEM production is forecast to improve by 9.8% in 2026, while European production is expected to improve by 6.6% [39] - The company expects a full-year 2026 weighted average end market growth of 7.1% [39] Company Strategy and Development Direction - The company completed the sale of its Control Devices segment, allowing a focus on higher growth and higher return businesses [7][21] - The strategic vision includes leveraging a global footprint to serve customers and investing in advanced technologies aligned with industry trends [22][23] - The company aims to drive market outperformance, margin expansion, and cash flow conversion to create long-term value for stakeholders [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by favorable market tailwinds and sustained momentum from growth products [9][54] - The company is cautious about geopolitical volatility but remains confident in the recovery of end markets in 2026 [39][54] - Management highlighted the importance of improving quality processes to prevent legacy issues and enhance customer relationships [11][30] Other Important Information - Natalia Noblet has been appointed as the new CEO effective April 1, succeeding Jim Zizelman [8][16] - The company is committed to organizational cost efficiencies and structural cost reductions to support its current structure [45] - The company expects to achieve revenue growth of approximately 4.2% in 2026, primarily driven by continued MirrorEye growth [44] Q&A Session Summary Question: Legacy warranty costs related to Control Devices business - Management clarified that legacy warranty costs related to electronics products remain, while those related to Control Devices were transferred to the new owner [60][62] Question: Revenue breakdown by product category - Management indicated that while specific product category breakdowns are not provided, the connectivity business is more global than others, with significant growth in Brazil [67][68] Question: Impact of MirrorEye sales on overall business - Management acknowledged that while MirrorEye sales increased significantly, the overall electronics business faced challenges due to declining vehicle production [73][74] Question: Sales force experience in the current market - Management reported positive signals from customers regarding truck orders, indicating a potential recovery in the market [76] Question: Telematics and connected services - Management confirmed that the company offers digital services alongside hardware products, with Brazil being a strong market for these services [77]

Financial Data and Key Metrics Changes - In 2025, the company achieved sales of over $110 million for MirrorEye, representing approximately 70% growth compared to the prior year [5] - Adjusted EBITDA for the full year was $28.6 million, or 3.3% of sales, reflecting a 60 basis point decline compared to the prior year [14] - Positive free cash flow of approximately $19 million was driven by a significant improvement in inventory balances of $18.7 million [7][15] Business Line Data and Key Metrics Changes - MirrorEye OEM revenue grew by 84% compared to the prior year, with total sales of $111 million in 2025 [13][33] - Electronics full-year sales reached $551 million, outperforming weighted average OEM end markets by approximately 430 basis points [33] - Stoneridge Brazil experienced full-year sales growth of $15 million, or approximately 30%, primarily driven by incremental OEM sales [34] Market Data and Key Metrics Changes - The weighted average OEM end markets declined by almost 7% in 2025 compared to initial expectations of flat conditions [37] - North American OEM production is forecast to improve by 9.8% in 2026, while European production is expected to improve by 6.6% [38] - The company expects a recovery in the commercial vehicle market, with anticipated growth of 7.1% in 2026 [38] Company Strategy and Development Direction - The company completed the sale of its Control Devices segment, allowing a focus on high-growth, high-return businesses and reducing organizational complexity [8][20] - The strategic vision includes leveraging a global footprint to serve customers and investing in advanced technologies aligned with industry trends [21][23] - The company aims to drive market outperformance, margin expansion, and cash flow conversion to create long-term value for stakeholders [28][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing favorable market tailwinds and sustained momentum from growth products [10][52] - The company is cautious about geopolitical volatility but remains confident in its ability to recover from past challenges [10][38] - Management highlighted a commitment to improving quality processes and operational efficiency to drive long-term performance [30][44] Other Important Information - Natalia Noblet has been appointed as the new President and CEO, effective April 1, 2026, succeeding Jim Zizelman [9][16] - The company expects to realize at least $5 million in structural cost reductions in 2026 [43] - The company anticipates revenue growth of approximately 4.2% in 2026, primarily driven by continued MirrorEye growth [42] Q&A Session Summary Question: Legacy warranty costs related to Control Devices business - Management clarified that warranty costs related to Control Devices were passed to the new buyer, and the legacy warranty issues mentioned pertain to electronics products [57][60] Question: Revenue breakdown by product category - Management indicated that while specific product category breakdowns are not provided, the connectivity business is more global than others, with Brazil showing significant growth [61][66] Question: Impact of MirrorEye sales on overall business - Management acknowledged that while MirrorEye sales increased significantly, the overall decline in vehicle production impacted other product areas, particularly in North America [71][72]

Full-Year & Q4 2025 Results Non-GAAP Financial Measures Full-Year & Q4 2025 Results March 12, 2026 stoneridge.com © 2026 This presentation contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this presentation. The provision of these non-GAAP financial measures for 2025 and 2024 is not int ...

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]

Stoneridge Business Update Conference Call Summary Company Overview - **Company**: Stoneridge - **Segment Sold**: Control Devices - **Acquirer**: CenterRock Capital Partners, a private equity investment firm Key Points and Arguments Sale of Control Devices Segment - The sale was completed on January 30th for a base purchase price of **$59 million**, approximately **five times** the expected 2025 Adjusted EBITDA for the segment [4][6] - The total consideration will include adjustments for delivered working capital as of the transaction date [4] - Manufacturing facilities in **Lexington, Ohio**, and **Suzhou, China**, were included in the sale, while the **Juarez, Mexico** facility will be retained to support North American electronics business [4][5] Transition and Support - A transition services agreement and supply agreements were established to ensure a smooth transition of ownership [5] - Stoneridge will provide parts from the Juarez facility during the transition, and CenterRock will supply electronics parts from its Suzhou facility [5] Strategic Focus Post-Sale - The sale allows Stoneridge to concentrate on its highest growth and return businesses, reducing organizational complexity [5][6] - The remaining portfolio will focus on advanced technologies and electronic solutions for global commercial vehicle and off-highway markets [8] - Stoneridge aims to expand its **Vision and Safety** systems, including products like **MirrorEye** and **Connected Trailer** technologies [8][9] Growth Expectations - Stoneridge expects to achieve a **5-year Compound Annual Growth Rate (CAGR)** of **8%-12%** through 2030, significantly outpacing average end market growth by **2-3 times** [12] - The company is focused on new product development and expanding existing products into larger platforms [12] Financial Strategy - Net proceeds from the sale will be used to reduce debt and related interest expenses, creating immediate value for shareholders [6][14] - The company plans to amend its existing credit facility to align with its streamlined operations and future growth expectations [14] Operational Efficiency - Stoneridge is focused on gross margin expansion through quality-related cost improvements and material cost reductions [13] - The transaction is expected to streamline operations and redefine structural cost requirements [13] Future Outlook - Stoneridge is positioned to leverage its global footprint for growth, particularly in Brazil, where record OEM awards are anticipated [10][11] - The company is committed to a strong balance sheet and will provide updated guidance in early March [14] Additional Important Information - The call included a Q&A session where questions about tax implications, debt management, and operational reductions were addressed [17][18][20] - The company expressed excitement about the opportunities created by the transaction and its potential to drive long-term shareholder value [27]

Business Update Sale of Control Devices February 2, 2026 stoneridge.com © 2026 Non-GAAP Financial Measures This presentation contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). The Company provides Non- GAAP financial measure reconciliations to their closest GAAP financial measure, when all information is reasonably available to the Company at the date of the disclosure and management can ...

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may face access issues if they have an ad-blocker enabled, suggesting that disabling it could resolve these problems [1]

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]