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 ...

Financial Performance - Sales reached $228 million in Q2 2025 [5], a 4.6% increase compared to Q1 2025 [9] - Adjusted operating income was $0.4 million, resulting in a margin of 0.2% [5] - Adjusted EBITDA was $4.6 million, with a margin of 2.0% [5] - Free cash flow improved to $7.6 million in Q2 2025, a $5.9 million increase compared to Q2 2024 [9] - Net debt reduced by $9.5 million compared to Q1 2025 [9] Business Highlights - New business awards totaled approximately $775 million in estimated lifetime revenue [9] - The largest OEM program award in Stoneridge history was the MirrorEye global program extension through 2033, with approximately $535 million in additional lifetime revenue [9] - MirrorEye sales experienced a 21% growth compared to Q1 2025 [9] Segment Performance - Control Devices sales increased by 1.9% from Q1 2025 to Q2 2025 [36] - Stoneridge Brazil sales grew by 6.0%, reaching $15.3 million in Q2 2025 [44] Guidance - Full-year revenue guidance maintained at $860 million to $890 million [49] - Adjusted EBITDA guidance updated to $34 million to $38 million, representing 4.0% to 4.3% of sales [49]