Standard Motor Products, Inc. Releases First Quarter 2025 Results and Quarterly Dividend

• First quarter net sales of $413.4 million up 24.7%, and up 4.8% excluding Nissens
• First quarter adjusted EBITDA margin increased 350 basis points to 10.4%
• Adjusted diluted earnings per share of $0.81 in the quarter increased 80% from last year
• Strong North American manufacturing footprint well-positioned to help mitigate tariff impact

New York, NY, April 30, 2024.....Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months ended March 31, 2025.

Net sales for the first quarter of 2025 were $413.4 million, compared to consolidated net sales of $331.4 million during the same quarter in 2024. Earnings from continuing operations for the first quarter of 2025 was $13.7 million or $0.61 per diluted share, compared to earnings of $9.9 million or $0.44 per diluted share in the first quarter of 2024. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2025 were $18.0 million or $0.81 per diluted share, compared to $10.0 million or $0.45 per diluted share in the first quarter of 2024.

Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer stated, “We are very pleased with the first quarter results which exceeded our expectations. Sales for the quarter were up nearly 25%, and excluding the impact of the recent acquisition of Nissens Automotive (“Nissens”), sales were up nearly 5%. Additionally, adjusted diluted earnings per share were up 80% for the quarter, with strong profit performance from all segments.”

Within our North American aftermarket business, both segments had strong quarters. Vehicle Control sales increased 3.7% in the first quarter, continuing the positive trend from last year. Customer order patterns were solid as we saw steady demand for our products, which tend to be more non-discretionary in nature.

Our Temperature Control segment is off to an excellent start as sales increased 24.1%. The strength seen in the fourth quarter has continued, driven by a combination of planned pre-season orders, which can shift between quarters in any given year, and strong ongoing customer sellthrough.

For Engineered Solutions, first quarter sales declined 11.2% as softness in certain of our end markets continued. On a positive note, the customer and product mix has shown improvement, generating improved profitability on lower sales. We continue to win new business awards which bodes well for future growth as the cycle recovers.

Moving to our newest segment, Nissens, we were pleased with the performance during its first full quarter of ownership, as it contributed sales of $66.2 million, with an adjusted EBITDA margin of 17.3%, slightly better than our full-year mid-teens rate expectations for the segment. Our integration efforts are well underway, and we remain very confident in our initial target of $8-12 million in run-rate cost reduction synergies within 24 months of ownership. We look forward to updating you as we move further into the integration process and remain very excited about the future potential.

Looking at profitability, adjusted EBITDA increased to $42.8 million, up from $22.9 million last year, with just over half of the gain from Nissens and the balance from the improved performance of our other segments. Adjusted EBITDA margin climbed 350 basis points to 10.4%, due to the higher rate of Nissens, leverage on the solid sales from our North American business, and various cost containment actions, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.

From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $600.3 million, primarily reflecting additional borrowings related to our Nissens acquisition and seasonal working capital build.

Regarding the recently announced tariffs, we are currently assessing the impact on our business in what remains a fluid environment. We believe our diverse global footprint provides a competitive advantage. Over half of our sales in the US are from products manufactured in North America that are USMCA-compliant and thus are currently largely tariff-free. Products sourced from China represent only about a quarter of our US sales, with the remainder coming from lower-tariffed regions. Furthermore, our recent acquisition of Nissens provides meaningful sales diversification outside of the US. We are judiciously planning our mitigation steps, which will largely come from pass-through pricing to our customers.

Regarding our outlook for the year, we maintain our previous guidance for top-line growth to be in the mid-teens, and adjusted EBITDA margin in a range of 10-11%. However, this excludes the impact of tariffs due to the ongoing uncertainty of how they will ultimately play out. We note that under a tariff passthrough, we typically see a sales increase with minimal change to profit dollars, accompanied by some degree of reduced profit margin rate. Once things stabilize and we have better clarity regarding the impact on our business performance, we expect to update our estimates.

The Board of Directors has approved payment of a quarterly dividend of 31 cents per share on the common stock outstanding, which will be paid on June 2, 2025, to stockholders of record on May 15, 2025. In closing, Mr. Sills commented, “We are excited about the strong start to 2025. Although the macroeconomic environment may remain volatile for the foreseeable future, the underlying fundamentals of the aftermarket have proven to be resilient, both in the US and Europe, particularly in challenging times. The largely non-discretionary nature of our business, coupled with our large North American manufacturing base mitigating tariff exposure, should provide stability as we navigate this period of uncertainty. We remain optimistic about our long-term potential, led by the growth and synergy savings that Nissens will provide in the coming years. We will remain focused on finding ways to drive shareholder value, and on positioning the company to take advantage of the many opportunities we see before us. As always, we thank our employees that make all this possible.”

View Consolidated Financial Statements

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, April 30, 2025.  This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q1 2025 Earnings Webcast link.  Investors may also listen to the call by dialing 800-274-8461 (domestic) or 203-518-9814 (international).  The conference call ID code is SMP1Q2025.  Our playback will be made available for dial in immediately following the call.  For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call.  The playback number is 800-934-7884 (domestic) or 402-220-6987 (international).

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management’s expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.