Standard Motor Products (SMP) 17th Annual Midwest IDEAS Conference summary

Business overview and segment performance

• Operates in North American aftermarket, European aftermarket (boosted by recent Nissens acquisition), and Engineered Solutions segments.

• Generates just under $2 billion in revenue and $200 million in adjusted EBITDA, with 6,000 employees globally.

• North American aftermarket accounts for about two-thirds of revenue, European aftermarket just under 20%, and Engineered Solutions the remainder.

• Sells primarily non-discretionary replacement parts for vehicles, distributed through major U.S. retailers and distributors.

• Engineered Solutions segment serves specialized OEMs and is more volatile, currently at the bottom of its cycle but expected to recover.

Nissens acquisition and European expansion

• Acquired Nissens, a $300+ million European aftermarket company, at the end of 2024, expanding footprint and growth opportunities.

• Nissens operates in 17 locations across Europe, with strengths in temperature control products.

• Acquisition expected to deliver $8–12 million in cost synergies, with significant cross-selling and catalog backfill opportunities.

• European aftermarket is more fragmented, with no single customer over 15% of sales, and is growing faster than North America.

• New product introductions and leveraging manufacturing in Poland have accelerated European growth.

Manufacturing footprint and supply chain

• Over 55% of North American sales are manufactured in Mexico, benefiting from USMCA compliance and reduced tariff exposure.

• European manufacturing includes facilities in Poland and Slovakia; Asian operations are joint ventures in China and Thailand.

• Thailand JV will produce sensors for the Vehicle Control segment, expanding capabilities in Asia.