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 were $31.9 million, with adjusted diluted EPS up 8.6% to $1.40 and strong operating cash flow improvement year-to-date.

• All segments contributed to growth, led by Temperature Control, Nissens Automotive, 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 saw Sunil Bhandari succeed Jim Burke as COO.

Financial highlights

• Q2 2026 GAAP net sales were $501.6 million (up from $493.9 million in Q2 2025); adjusted net sales reached $526.7 million.

• Q2 gross margin improved to 32.8% (GAAP), with operating income margin at 10.1%; adjusted EBITDA margin was 12.1%.

• Q2 GAAP EPS was $1.39 (up from $1.17), and non-GAAP EPS was $1.40 (up from $1.29); six-month GAAP EPS was $2.20.

• Operating cash flow for the first six months was $58.3 million, up $64.2 million year-over-year.

• Net debt at June 30, 2026 was $510.2 million, with a leverage ratio of 2.5x adjusted EBITDA and total liquidity of $229.5 million.

Outlook and guidance

• Full-year 2026 sales growth is expected in the low to mid-single digit range, with adjusted EBITDA margin guidance reaffirmed at 11%-12%.

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

• Targeting net debt reduction to 2.0x adjusted EBITDA by year-end 2026.

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

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