Standard Motor Products (SMP) Q2 2026 earnings summary

Executive summary

• Adjusted net sales for Q2 2026 rose 6.7% year-over-year to $526.7 million, with GAAP net sales at $501.6 million and record adjusted EBITDA of $63.5 million.

• Net earnings from continuing operations reached $31.9 million, with diluted EPS up to $1.40 and adjusted EBITDA margin at 12.1%.

• All segments contributed to growth, led by Temperature Control and Engineered Solutions, while Vehicle Control saw a slight decline.

• Strategic joint venture in Thailand and the Nissens acquisition expanded manufacturing, diversified supply chain, and strengthened European presence.

• Leadership transition occurred with Jim Burke retiring as COO and Sunil Bhandari appointed.

Financial highlights

• Q2 2026 GAAP net sales were $501.6 million, adjusted net sales $526.7 million, and adjusted EBITDA $63.5 million.

• Gross margin improved to 32.8% (GAAP), with operating margin at 10.1% (GAAP) and 9.7% (non-GAAP).

• Six-month net sales reached $952.8 million, with operating cash flow of $58.3 million and net debt at $510.2 million.

• Non-GAAP diluted EPS rose 8.6% to $1.40; Q2 GAAP EPS was $1.39.

• Net debt leverage ratio was 2.5x, with a target of 2.0x by year-end 2026.

Outlook and guidance

• Full-year 2026 sales growth expected in the low to mid-single digits, with adjusted EBITDA margin guidance of 11%-12%.

• Interest expense projected at $30 million, tax rate at 27.5%-28%, and depreciation/amortization at $45-$50 million.

• Guidance excludes impacts from future tariff changes, Middle East conflict, inflation, or interest rate shifts.

• Continued investment in organic growth, infrastructure, and opportunistic M&A.

• Management anticipates continued quarterly dividends, subject to Board discretion and financial performance.