Standard Motor Products (SMP) Q4 2025 earnings summary

Executive summary

• Achieved $1.79B in revenue for 2025, up from $1.46B in 2024, driven by the Nissens acquisition and growth across all segments; excluding Nissens, growth was 4% for both Q4 and the year.

• Net earnings from continuing operations reached $90.3M, up from $70.5M year-over-year; adjusted diluted EPS grew 19.1% in Q4 and 26.8% for the year.

• Adjusted EBITDA for 2025 was $200.9M (11.2% of sales), up from $140.1M (9.6%) in 2024; margin improved 130-160 bps.

• All segments performed well, with notable contributions from Nissens and internal initiatives driving earnings and EBITDA margin expansion.

• Maintained momentum into 2026, supported by structural advantages, customer relationships, and execution.

Financial highlights

• Q4 consolidated sales increased 12.2% to $385.1M; full-year sales up 22.4% to $1.79B.

• Adjusted EBITDA margin for the year up to 11.2%; gross margin improved to 31.7% in 2025 from 29.1% in 2024.

• Non-GAAP diluted EPS up 19.1% in Q4; full-year non-GAAP diluted EPS up 26.8%.

• Cash from operations for the year was $57.4M, down $19.3M due to higher inventory and tariff costs; free cash flow rebounded to $59.7M in 2025.

• Net debt at year-end was $546.7M, with a leverage ratio of 2.7x, improved from 3.7x in 2024.

Outlook and guidance

• 2026 sales growth expected in the low to mid-single digits, driven by North America, Europe, and Engineered Solutions stabilization.

• Adjusted EBITDA margin guidance of 11%-12% of net sales; interest expense projected at $30M, tax rate at 27.5%-28%, and depreciation/amortization at $45-$50M.

• Operating expenses expected at $106-$114M per quarter in 2026.

• Targeting leverage ratio of 2x EBITDA by end of 2026.

• Nissens acquisition expected to further improve free cash flow in 2026.