Standard Motor Products, Inc. Releases First Quarter 2025 Results and Quarterly Dividend
-- First quarter net sales of $413.4 million up 24.7%, and up 4.8%
excluding Nissens
-- First quarter adjusted EBITDA margin increased 350 basis points to 10.4%
-- Adjusted diluted earnings per share of $0.81 in the quarter increased
80% from last year
-- Strong North American manufacturing footprint well-positioned to help
mitigate tariff impact
NEW YORK, April 30, 2025 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months ended March 31, 2025.
Net sales for the first quarter of 2025 were $413.4 million, compared to consolidated net sales of $331.4 million during the same quarter in 2024. Earnings from continuing operations for the first quarter of 2025 was $13.7 million or $0.61 per diluted share, compared to earnings of $9.9 million or $0.44 per diluted share in the first quarter of 2024. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2025 were $18.0 million or $0.81 per diluted share, compared to $10.0 million or $0.45 per diluted share in the first quarter of 2024.
Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are very pleased with the first quarter results which exceeded our expectations. Sales for the quarter were up nearly 25%, and excluding the impact of the recent acquisition of Nissens Automotive ("Nissens"), sales were up nearly 5%. Additionally, adjusted diluted earnings per share were up 80% for the quarter, with strong profit performance from all segments."
Within our North American aftermarket business, both segments had strong quarters. Vehicle Control sales increased 3.7% in the first quarter, continuing the positive trend from last year. Customer order patterns were solid as we saw steady demand for our products, which tend to be more non-discretionary in nature.
Our Temperature Control segment is off to an excellent start as sales increased 24.1%. The strength seen in the fourth quarter has continued, driven by a combination of planned pre-season orders, which can shift between quarters in any given year, and strong ongoing customer sell-through.
For Engineered Solutions, first quarter sales declined 11.2% as softness in certain of our end markets continued. On a positive note, the customer and product mix has shown improvement, generating improved profitability on lower sales. We continue to win new business awards which bodes well for future growth as the cycle recovers.
Moving to our newest segment, Nissens, we were pleased with the performance during its first full quarter of ownership, as it contributed sales of $66.2 million, with an adjusted EBITDA margin of 17.3%, slightly better than our full-year mid-teens rate expectations for the segment. Our integration efforts are well underway, and we remain very confident in our initial target of $8-12 million in run-rate cost reduction synergies within 24 months of ownership. We look forward to updating you as we move further into the integration process and remain very excited about the future potential.
Looking at profitability, adjusted EBITDA increased to $42.8 million, up from $22.9 million last year, with just over half of the gain from Nissens and the balance from the improved performance of our other segments. Adjusted EBITDA margin climbed 350 basis points to 10.4%, due to the higher rate of Nissens, leverage on the solid sales from our North American business, and various cost containment actions, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.
From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $600.3 million, primarily reflecting additional borrowings related to our Nissens acquisition and seasonal working capital build.
Regarding the recently announced tariffs, we are currently assessing the impact on our business in what remains a fluid environment. We believe our diverse global footprint provides a competitive advantage. Over half of our sales in the US are from products manufactured in North America that are USMCA-compliant and thus are currently largely tariff-free. Products sourced from China represent only about a quarter of our US sales, with the remainder coming from lower-tariffed regions. Furthermore, our recent acquisition of Nissens provides meaningful sales diversification outside of the US. We are judiciously planning our mitigation steps, which will largely come from pass-through pricing to our customers.
Regarding our outlook for the year, we maintain our previous guidance for top-line growth to be in the mid-teens, and adjusted EBITDA margin in a range of 10-11%. However, this excludes the impact of tariffs due to the ongoing uncertainty of how they will ultimately play out. We note that under a tariff passthrough, we typically see a sales increase with minimal change to profit dollars, accompanied by some degree of reduced profit margin rate. Once things stabilize and we have better clarity regarding the impact on our business performance, we expect to update our estimates.
The Board of Directors has approved payment of a quarterly dividend of 31 cents per share on the common stock outstanding, which will be paid on June 2, 2025, to stockholders of record on May 15, 2025.
In closing, Mr. Sills commented, "We are excited about the strong start to 2025. Although the macroeconomic environment may remain volatile for the foreseeable future, the underlying fundamentals of the aftermarket have proven to be resilient, both in the US and Europe, particularly in challenging times. The largely non-discretionary nature of our business, coupled with our large North American manufacturing base mitigating tariff exposure, should provide stability as we navigate this period of uncertainty. We remain optimistic about our long-term potential, led by the growth and synergy savings that Nissens will provide in the coming years. We will remain focused on finding ways to drive shareholder value, and on positioning the company to take advantage of the many opportunities we see before us. As always, we thank our employees that make all this possible."
Conference Call
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, April 30, 2025. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q1'25 Earnings Call Earnings Webcast link. Investors may also listen to the call by dialing 800-274-8461 (domestic) or 203-518-9814 (international). The conference call ID code is SMP1Q2025. Our playback will be made available for dial in immediately following the call. For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call. The playback number is 800-934-7884 (domestic) or 402-220-6987 (international).
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.
Standard Motor Products, Inc.
Consolidated Statements of Operations
Three Months Ended
March 31,
(In thousands, except share and per share data, unaudited) 2025 2024
Net sales $413,379 $331,403
Cost of sales 288,657 241,881
Gross profit 124,722 89,522
Selling, general and administrative expenses 99,845 74,733
Restructuring and integration expenses 673 192
Other income, net 258 22
Operating income 24,462 14,619
Other non-operating income, net 2,248 819
Interest expense 7,761 2,067
Earnings from continuing operations before income taxes 18,949 13,371
Provision for income taxes 5,069 3,342
Earnings from continuing operations 13,880 10,029
Loss from discontinued operations, net of income taxes (1,139) (1,039)
Net earnings 12,741 8,990
Net earnings attributable to noncontrolling interest 175 166
Net earnings attributable to SMP $12,566 $8,824
Net earnings (loss) attributable to SMP
---
Continuing operations $13,705 $9,863
Discontinued operations (1,139) (1,039)
Net earnings attributable to SMP $12,566 $8,824
Per common share data
Basic:
Continuing operations $0.63 $0.45
Discontinued operations (0.06) (0.05)
Net earnings attributable to SMP per common share $0.57 $0.40
Diluted:
Continuing operations $0.61 $0.44
Discontinued operations (0.05) (0.05)
Net earnings attributable to SMP per common share $0.56 $0.39
Dividend declared per common share $0.31 $0.29
Weighted average number of common shares, basic 21,886,810 21,923,830
Weighted average number of common shares, diluted 22,319,868 22,372,543
Standard Motor Products, Inc.
Segment Revenues
Three Months Ended
March 31,
(in thousands, unaudited) 2025 2024
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery) $118,366 $116,085
Electrical and Safety 58,319 52,407
Wire Sets and Other 15,657 17,032
Total Vehicle Control 192,342 185,524
Temperature Control
AC System Components 67,191 49,960
Other Thermal Components 21,692 21,648
Total Temperature Control 88,883 71,608
Engineered Solutions
Light Vehicle 21,404 21,803
Commercial Vehicle 18,605 22,908
Construction/Agriculture 9,408 10,076
All Other 16,555 19,484
Total Engineered Solutions 65,972 74,271
Nissens Automotive
Engine Cooling 27,773
Air Conditioning 27,166
Engine Efficiency 11,243
Total Nissens Automotive 66,182
Total $413,379 $331,403
Standard Motor Products, Inc.
Segment Operating Profit
Three Months Ended
March 31,
(in thousands, unaudited) 2025 2024
Gross Margin
---
Vehicle Control $62,161 32.3 % $58,899 31.7 %
Temperature Control 27,598 31.0 % 19,689 27.5 %
Engineered Solutions 11,709 17.7 % 10,934 14.7 %
Nissens Automotive 27,838 42.1 % - %
All Other
Subtotal $129,306 31.3 % $89,522 27.0 %
Acquisition Expenses (4,584) -1.1 % - %
Gross Margin $124,722 30.2 % $89,522 27.0 %
Selling, General & Administrative
---
Vehicle Control $43,835 22.8 % $43,258 23.3 %
Temperature Control 19,823 22.3 % 17,600 24.6 %
Engineered Solutions 8,514 12.9 % 8,691 11.7 %
Nissens Automotive 20,254 30.6 % - %
All Other 6,856 5,184
Subtotal $99,282 24.0 % $74,733 22.6 %
Acquisition Expenses 563 0.1 % - %
Selling, General & Administrative $99,845 24.2 % $74,733 22.6 %
Operating Income
---
Vehicle Control $18,326 9.5 % $15,641 8.4 %
Temperature Control 7,775 8.7 % 2,089 2.9 %
Engineered Solutions 3,195 4.8 % 2,243 3.0 %
Nissens Automotive 7,584 11.5 % - %
All Other (6,856) (5,184)
Subtotal $30,024 7.3 % $14,789 4.5 %
Restructuring & Integration (673) -0.2 % (192) -0.1 %
Acquisition Expenses (5,147) -1.2 % - %
Other Income, Net 258 0.1 % 22 - %
Operating Income $24,462 5.9 % $14,619 4.4 %
Standard Motor Products, Inc.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts, unaudited) Three Months Ended
March 31,
2025 2024
Earnings from Continuing Operations Attributable To SMP
---
GAAP Earnings from Continuing Operations $13,705 $9,863
Restructuring and Integration Expenses 673 192
Acquisition Expenses 5,147
Income Tax Effect Related To Reconciling Items (1,513) (50)
Non-GAAP Earnings from Continuing Operations $18,012 $10,005
Diluted Earnings Per Share from Continuing Operations Attributable to SMP
---
GAAP Diluted Earnings Per Share from Continuing Operations $0.61 $0.44
Restructuring and Integration Expenses 0.03 0.01
Acquisition Expenses 0.23
Income Tax Effect Related To Reconciling Items (0.06)
Non-GAAP Diluted Earnings Per Share from Continuing Operations $0.81 $0.45
Operating Income
---
GAAP Operating Income $24,462 $14,619
Restructuring and Integration Expenses 673 192
Acquisition Expenses 5,147 Last Twelve Months Ended
Other Income, Net (258) (22)
March 31, Year Ended
Non-GAAP Operating Income $30,024 $14,789 2025 2024 December 31, 2024
EBITDA without Special Items
---
GAAP Earnings from Continuing Operations Before Taxes $18,949 $13,371 $79,567 $77,978 $73,989
Depreciation and Amortization 10,267 7,301 34,379 29,241 31,413
Interest Expense 7,761 2,067 19,206 11,492 13,512
EBITDA 36,977 22,739 133,152 118,711 118,914
Restructuring and Integration Expenses 673 192 8,149 1,922 7,668
Acquisition Expenses 5,147 18,623 13,476
Special Items 5,820 192 26,772 1,922 21,144
EBITDA without Special Items $42,797 $22,931 $159,924 $120,633 $140,058
Management believes that Non-GAAP earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations which are attributable to SMP, and Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with
respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.
Standard Motor Products, Inc.
Reconciliation of GAAP and Non-GAAP Measures by Segments
Three Months Ended March 31, 2025
(In thousands, unaudited) Vehicle Temperature Engineered Nissens All Other Consolidated
Control Control Solutions Automotive
Operating Income
GAAP Operating Income $17,782 $7,900 $3,176 $2,587 $(6,983) $24,462
Restructuring and Integration Expenses 526 136 20 (9) 673
Acquisition Expenses 5,011 136 5,147
Other (Income) Expense, Net 18 (261) (1) (14) (258)
Non-GAAP Operating Income $18,326 $7,775 $3,195 $7,584 $(6,856) $30,024
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes $17,046 $7,948 $3,431 $(2,151) $(7,325) $18,949
Depreciation and Amortization 3,669 778 2,500 2,987 333 10,267
Interest Expense 1,007 539 459 5,620 136 7,761
EBITDA 21,722 9,265 6,390 6,456 (6,856) 36,977
Restructuring and Integration Expenses 526 136 20 (9) 673
Acquisition Expenses 5,011 136 5,147
Special Items 526 136 20 5,011 127 5,820
EBITDA without Special Items $22,248 $9,401 $6,410 $11,467 $(6,729) $42,797
% of Net Sales 11.6 % 10.6 % 9.7 % 17.3 % 10.4 %
Three Months Ended March 31, 2024
(In thousands, unaudited) Vehicle Temperature Engineered Nissens All Other Consolidated
Control Control Solutions Automotive
Operating Income
GAAP Operating Income $15,540 $2,031 $2,232
$ - $(5,184) $14,619
Restructuring and Integration Expenses 101 58 33 192
Other Income, Net (22) (22)
Non-GAAP Operating Income $15,641 $2,089 $2,243
$ - $(5,184) $14,789
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes $14,315 $1,888 $2,346
$ - $(5,178) $13,371
Depreciation And Amortization 3,525 898 2,469 409 7,301
Interest Expense 1,427 531 664 (555) 2,067
EBITDA 19,267 3,317 5,479 (5,324) 22,739
Restructuring and Integration Expenses 101 58 33 192
Special Items 101 58 33 192
EBITDA without Special Items $19,368 $3,375 $5,512
$ - $(5,324) $22,931
% of Net Sales 10.4 % 4.7 % 7.4 % - % 6.9 %
Management believes that Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's
overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.
Standard Motor Products, Inc.
Condensed Consolidated Balance Sheets
(In thousands) March 31, 2025 March 31, 2024 December 31, 2024
Unaudited Unaudited
ASSETS
Cash And Cash Equivalents $50,276 $27,113 $44,426
Accounts Receivable, Gross 287,952 212,224 216,191
Allowance For Expected Credit Losses 7,157 8,284 5,472
Accounts Receivable, Net 280,795 203,940 210,719
Inventories 641,131 520,702 624,913
Unreturned Customer Inventory 17,597 18,007 16,163
Other Current Assets 26,282 26,674 25,703
Total Current Assets 1,016,081 796,436 921,924
Property, Plant And Equipment, Net 174,636 124,822 168,735
Operating Lease Right-of-use Assets 112,022 102,060 109,899
Goodwill 246,115 134,624 241,418
Customer Relationships Intangibles, Net 212,378 74,029 210,430
Other Intangibles, Net 93,087 15,971 90,540
Deferred Income Taxes 14,064 40,241 13,199
Investment In Unconsolidated Affiliates 26,013 24,751 24,842
Other Assets 31,695 38,627 33,139
Total Assets $1,926,091 $1,351,561 $1,814,126
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Portion Of Revolving Credit Facility $4,350
$ - $10,800
Current Portion Of Term Loan And Other Debt 18,876 5,030 16,317
Accounts Payable 151,206 98,293 148,009
Sundry Payables And Accrued Expenses 81,036 58,714 84,936
Accrued Customer Returns 66,087 47,220 46,471
Accrued Core Liability 11,722 17,438 12,807
Accrued Rebates 73,050 45,191 76,168
Payroll And Commissions 31,050 27,326 40,964
Total Current Liabilities 437,377 299,212 436,472
Long-term Debt 627,329 209,872 535,197
Noncurrent Operating Lease Liability 99,885 90,667 98,214
Accrued Asbestos Liabilities 79,928 68,985 84,568
Other Liabilities 29,135 27,704 29,593
Total Liabilities 1,273,654 696,440 1,184,044
Total SMP Stockholders' Equity 637,961 639,150 615,745
Noncontrolling Interest 14,476 15,971 14,337
Total Stockholders' Equity 652,437 655,121 630,082
Total Liabilities And Stockholders' Equity $1,926,091 $1,351,561 $1,814,126
Standard Motor Products, Inc.
Condensed Consolidated Statements of Cash Flows
Three Months Ended
March 31,
(In thousands, unaudited) 2025 2024
Cash Flows From Operating Activities
Net Earnings $12,741 $8,990
Adjustments To Reconcile Net Earnings To Net Cash Used In Operating Activities:
Depreciation And Amortization 10,267 7,301
Other 6,048 3,511
Change In Assets And Liabilities:
Accounts Receivable (68,882) (43,978)
Inventory (14,576) (14,670)
Prepaid Expenses And Other Current Assets 1,438 1,649
Accounts Payable 957 (9,274)
Sundry Payables And Accrued Expenses (3,185) 3,988
Other (5,028) (3,233)
Net Cash Used In Operating Activities (60,220) (45,716)
Cash Flows From Investing Activities
Capital Expenditures (9,132) (10,086)
Other Investing Activities 2,923 15
Net Cash Used In Investing Activities (6,209) (10,071)
Cash Flows From Financing Activities
Net Change In Debt 79,094 58,692
Purchase Of Treasury Stock - (2,235)
Dividends Paid (6,777) (6,392)
Other Financing Activities 191 315
Net Cash Provided By Financing Activities 72,508 50,380
Effect Of Exchange Rate Changes On Cash (229) (6)
Net Increase (Decrease) In Cash And Cash Equivalents 5,850 (5,413)
Cash And Cash Equivalents At Beginning Of Period 44,426 32,526
Cash And Cash Equivalents At End Of Period $50,276 $27,113
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SOURCE Standard Motor Products, Inc.
