Stoneridge Q2 Earnings Call Highlights

Second-quarter results exceeded expectations: Revenue rose more than 15% year over year to $181 million, with core organic growth of nearly 8%. Adjusted EBITDA increased to $5.5 million, while operating efficiency improved despite lower gross margins.

MirrorEye remained the key growth driver: Quarterly revenue reached a record $37 million, up 39% year over year, and Stoneridge secured a bus and coach program worth an estimated $42 million in lifetime revenue, with commercialization expected in 2027.

Balance-sheet and outlook trends strengthened: Net debt declined by $39 million and operating cash flow improved 38% year over year.

Stoneridge reaffirmed its 2026 guidance of $645 million–$670 million in revenue and $20 million–$25 million in adjusted EBITDA.

Stoneridge NYSE: SRI reported second-quarter 2026 results that exceeded its internal expectations, supported by organic sales growth, record MirrorEye revenue, improved cost discipline and stronger cash generation.

The company reaffirmed its full-year revenue and adjusted EBITDA outlook while citing improving conditions in commercial vehicle markets.

President and Chief Executive Officer Natalia Noblet said Stoneridge’s revenue, excluding foreign-currency effects and revenue tied to a Mexico Manufacturing Agreement following the sale of its Control Devices segment, grew nearly 8% from a year earlier.

She described the result as the company’s fastest organic growth rate in more than two years.

The company sold its Control Devices business on Jan. 30, 2026, and has retrospectively presented that operation as discontinued operations for all periods discussed.

Prior-period segment information was also recast to align with the current reporting structure.

Revenue Growth and Profitability Efforts Chief Financial Officer Scott Humphrey said second-quarter revenue totaled $181 million, up more than 15% from the prior-year quarter.

The increase included about $4 million from favorable currency translation and $7 million of contract manufacturing revenue associated with the Mexico Manufacturing Agreement.

Excluding those items, core revenue rose nearly 8%.

Growth was led by North American commercial vehicle activity, record MirrorEye sales and double-digit expansion at Stoneridge Brazil, Humphrey said.

Stoneridge’s organic revenue growth outpaced its weighted average OEM end markets, which declined nearly 2% during the quarter, according to Noblet.

Adjusted gross profit margin declined 277 basis points year over year to 20.3%.

Humphrey attributed the decline to higher material expense from currency translation losses, discrete inventory-related costs associated with a shift in North American MirrorEye adoption from retrofit products toward factory-built systems, and lower sales of the Smart 2 tachograph following the completion of a European regulatory retrofit campaign in 2025.

Despite the gross-margin pressure, adjusted operating income margin improved by 100 basis points.

Selling, general and administrative expense fell to 14.3% of revenue, an improvement of 182 basis points from a year earlier.

Humphrey said that while quarterly sales increased by $24 million year over year, SG&A expense increased by less than $400,000.

Adjusted EBITDA was $5.5 million, representing the company’s highest quarterly adjusted EBITDA from continuing operations in two years.

Adjusted EBITDA margin expanded 251 basis points to 3% of sales.

MirrorEye, Stoneridge’s camera-monitoring technology, generated a quarterly record of $37 million in revenue, up 39% from the prior-year period and 10% from the first quarter of 2026.

Noblet said the growth reflected European OEM progra...