Standard Motor Products (SMP) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 3.3% year-over-year to $399.3 million, with all segments growing and year-to-date net sales up 5.0% to $1.12 billion.

• Adjusted diluted EPS for Q3 was $1.28, a 15% increase year-over-year; adjusted EBITDA margin rose to 12.2%.

• Diluted EPS (non-GAAP) for the nine months was $2.70, up from $2.55 year-over-year.

• Major acquisition of Nissens Automotive, a leading European aftermarket supplier, is set to close soon, expected to drive growth, cost synergies, and operational improvements.

• Net earnings attributable to SMP were $3.8 million in Q3, down from $6.7 million, due to higher discontinued operations losses.

Financial highlights

• Q3 2024 net sales: $399.3 million (+3.3% year-over-year); nine months: $1.12 billion (+5.0%).

• Q3 2024 gross margin: 30.4% (up from 29.7%); Q3 operating income: $37.1 million (9.3% margin).

• Q3 adjusted earnings from continuing operations: $28.3 million ($1.28/share) vs. $24.7 million ($1.11/share) in Q3 2023.

• Year-to-date adjusted EBITDA: $111.1 million (9.9% margin).

• Cash generated from operations was $78.2 million for the first nine months, down from $132.9 million last year due to non-recurring inventory reductions.

Outlook and guidance

• Full-year 2024 sales growth expected in low- to mid-single digits; adjusted EBITDA margin guidance 9.0–9.5%.

• Guidance excludes impact from Nissens Automotive acquisition; Nissens will be reported as a new segment in 2025.

• Management anticipates ongoing inflationary pressures but expects cost savings and new distribution center to support margins.