Standard Motor Products (SMP) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales rose 24.7% year-over-year to $413.4M, driven by the Nissens Automotive acquisition and organic growth in core segments.

• Adjusted diluted EPS increased 80% to $0.81, and adjusted EBITDA margin improved to 10.4%.

• Nissens contributed $66.2M in sales, with integration progressing well and supporting margin and geographic diversification.

• Net earnings from continuing operations increased to $18.0M, and GAAP diluted EPS was $0.61.

• Board declared a $0.31/share quarterly dividend, up from $0.29 last year.

Financial highlights

• Gross margin improved to 30.2%–31.3% from 27% year-over-year, reflecting higher volumes and cost controls.

• Adjusted EBITDA reached $42.8M (10.4% margin), up from $22.9M (6.9%) year-over-year.

• Operating income more than doubled to $30.0M (7.3% margin); GAAP net earnings were $12.6M.

• Interest expense increased to $7.8M from $2.1M, reflecting higher borrowings for the Nissens acquisition.

• Cash used in operations was $60.2M, mainly due to higher receivables and inventory from sales growth.

Outlook and guidance

• Full-year 2025 outlook affirmed for mid-teens percentage net sales growth and adjusted EBITDA margin of 10–11%, including Nissens.

• Guidance excludes potential impacts from new tariffs; mitigation includes price increases and cost controls.

• Liquidity expected to be sufficient for at least the next 12 months, barring material adverse developments.