Stoneridge (SRI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 15.1% year-over-year to $181.4 million, outpacing end markets by nearly 10 percentage points, driven by strong North American commercial vehicle demand and record MirrorEye and Brazil revenues.

• MirrorEye technology set a new sales record with $37 million in Q2 revenue, up 39% year-over-year, and the largest Bus & Coach MirrorEye award to date was announced.

• Net loss from continuing operations improved to $5.3 million ($0.19/share), down from $11.1 million ($0.40/share) year-over-year, with adjusted EBITDA reaching $5.5 million, the best in two years.

• Operational efficiency initiatives, cost structure realignment, and strategic focus on high-value OEM programs supported profitability and cash flow.

• Full-year 2026 guidance reaffirmed, citing improved commercial vehicle demand and robust year-to-date performance.

Financial highlights

• Q2 2026 sales reached $181.4 million, up 15.1% year-over-year; core sales grew 7.8% excluding currency and divestiture effects.

• Adjusted gross margin declined 277 basis points to 20.3% due to higher material costs and adverse product mix.

• Adjusted EBITDA was $5.5 million, with margin expanding to 3.0% from 0.5% year-over-year.

• Net loss from continuing operations narrowed to $5.3 million, a 52.6% improvement year-over-year.

• Cash and cash equivalents at June 30, 2026, were $71.5 million; total debt was $151.1 million.

Outlook and guidance

• Full-year 2026 revenue expected between $645 million and $670 million; adjusted EBITDA projected at $20–$25 million, with margin guidance of 3.1%–3.7%.

• Adjusted gross margin expected at 21.5%–22.0%; adjusted operating margin at 0.0%–0.5%.

• Q3 and Q4 revenue expected to be modestly lower than Q2 due to seasonality, but EBITDA should improve sequentially.

• Additional working capital investment anticipated for major OEM program ramp-ups in early 2027.

• Focus remains on cost reductions and addressing material cost inflation.