Stoneridge (SRI) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were $213.8 million, down 9.8% sequentially and 10.2% year-over-year, impacted by macroeconomic pressures and reduced production volumes across all major end markets.

• MirrorEye technology gained momentum with new OEM launches, standard equipment adoption on DAF and Volvo, and expanded partnerships in North America and Europe.

• Control Devices segment secured its first Leak Detection Module award for a hybrid vehicle platform with a Chinese OEM, positioning for growth in the hybrid segment.

• Operational efficiency improvements and cost controls reduced quality-related costs and operating expenses, supporting improved cash generation.

• Year-to-date cash performance improved by $31.3 million versus 2023, driven by inventory reduction and working capital improvements.

Financial highlights

• Q3 2024 net sales were $213.8 million, with adjusted gross profit of $44.6 million (20.9% margin) and adjusted operating income of $0.7 million (0.3% margin).

• Adjusted EBITDA was $9.2 million (4.3% margin), down from $16.1 million in Q2 2024, and net loss was $7.1 million.

• Adjusted EPS was $(0.24); reported EPS was $(0.26).

• Cash and cash equivalents at quarter-end were $54.1 million.

• Year-to-date cash generation improved by $31.3 million, with $13.3 million generated in 2024.

Outlook and guidance

• Full-year 2024 revenue guidance updated to $895–$905 million, reflecting a 3.6% decline in weighted average end markets and continued production headwinds.

• Adjusted gross margin expected at ~21.5%, adjusted operating margin at ~1.0%, and adjusted EBITDA at $42–$44 million (~4.7% of sales).

• Adjusted EPS guidance revised to $(0.35)–$(0.40), with adjusted tax expense of $4.0–$4.5 million.

• MirrorEye revenue for 2024 expected at $65–$70 million, up 25% year-over-year but below initial expectations due to slower aftermarket ramp and shift to OEM adoption.

• Expect continued market challenges into 2025, with potential recovery in commercial vehicles in the second half and significant MirrorEye growth anticipated.