Standard Motor Products (SMP) investor relations material

Portfolio and strategic direction

• North American aftermarket remains the core at roughly two-thirds of the business; European aftermarket and Engineered Solutions add complementary growth platforms.

• Diversification is focused on adjacencies with genuine synergies; the North American aftermarket remains a growth engine.

• Engineered Solutions targets commercial vehicles, farm and industrial markets; light vehicle work is selective, while end-market expansion offers long-term growth potential.

• Manufacturing footprint is weighted toward North America and Europe, limiting China exposure and providing a competitive advantage.

Performance and market conditions

• Three of four segments posted top-line improvement; Temperature Control was down in Q3 after strong 2026 preseason orders and customer inventory sell-through, but remained up mid-single-digits YTD.

• Strong bottom-line results and cash generation supported debt reduction; leverage reached 1.8x in Q3, a quarter ahead of the 2x year-end target.

• Customer POS was positive month-over-month; Q3 growth was low-single-digits versus mid-single-digits previously, reflecting pricing and solid unit demand.

• Break-fix, non-discretionary products sold mainly through professional repair shops have less exposure to consumer demand pressures and price elasticity.

Nissens and product growth

• Nissens has delivered cost synergies through overlapping categories and combined purchasing; cross-selling is the next growth focus.

• New European Nissens launches span Vehicle Control and Temperature Control; another category launched at Automechanika, while Nissens supported a North American air-conditioning condenser launch at AAPEX.

• Nissens is gaining European share on strong brand equity and break-fix category exposure; selective bolt-ons or organic expansion remain opportunities.

• Full-line coverage across tens of thousands of SKUs and broad vehicle applications creates a complex-to-replicate competitive advantage, particularly for professional repair.