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Standard Motor Products Inc

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 , April 30, 2025 /PRNewswire/ -- 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 sell-through.     

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."  

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 Q1'25 Earnings Call 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.

 

Standard Motor Products, Inc.

Consolidated Statements of Operations



Three Months Ended
March 31,

(In thousands, except share and per share data, unaudited)

2025


2024

Net sales

$              413,379


$              331,403

Cost of sales

288,657


241,881

Gross profit

124,722


89,522

Selling, general and administrative expenses

99,845


74,733

Restructuring and integration expenses

673


192

Other income, net

258


22

Operating income

24,462


14,619

Other non-operating income, net

2,248


819

Interest expense

7,761


2,067

Earnings from continuing operations before income taxes

18,949


13,371

Provision for income taxes

5,069


3,342

Earnings from continuing operations

13,880


10,029

Loss from discontinued operations, net of income taxes

(1,139)


(1,039)

Net earnings

12,741


8,990

Net earnings attributable to noncontrolling interest

175


166

Net earnings attributable to SMP

$                12,566


$                  8,824





Net earnings (loss) attributable to SMP




Continuing operations

$                13,705


$                  9,863

Discontinued operations

(1,139)


(1,039)

Net earnings attributable to SMP

$                12,566


$                  8,824





Per common share data




Basic:




Continuing operations

$                    0.63


$                    0.45

Discontinued operations

(0.06)


(0.05)

Net earnings attributable to SMP per common share

$                    0.57


$                    0.40





Diluted:




Continuing operations

$                    0.61


$                    0.44

Discontinued operations

(0.05)


(0.05)

Net earnings attributable to SMP per common share

$                    0.56


$                    0.39





Dividend declared per common share

$                    0.31


$                    0.29





Weighted average number of common shares, basic

21,886,810


21,923,830

Weighted average number of common shares, diluted

22,319,868


22,372,543

 

Standard Motor Products, Inc.

Segment Revenues



Three Months Ended

March 31,


(in thousands, unaudited)

2025


2024

Vehicle Control




Engine Management (Ignition, Emissions and Fuel Delivery)

$              118,366


$              116,085

Electrical and Safety

58,319


52,407

Wire Sets and Other

15,657


17,032

Total Vehicle Control

192,342


185,524





Temperature Control




AC System Components

67,191


49,960

Other Thermal Components

21,692


21,648

Total Temperature Control

88,883


71,608





Engineered Solutions




Light Vehicle

21,404


21,803

Commercial Vehicle

18,605


22,908

Construction/Agriculture

9,408


10,076

All Other

16,555


19,484

Total Engineered Solutions

65,972


74,271





Nissens Automotive




Engine Cooling

27,773


—

Air Conditioning

27,166


—

Engine Efficiency

11,243


—

Total Nissens Automotive

66,182


—





Total

$              413,379


$              331,403

 

Standard Motor Products, Inc.

Segment Operating Profit



Three Months Ended

March 31,



(in thousands, unaudited)


2025


2024

Gross Margin







Vehicle Control


$                   62,161

32.3 %


$                   58,899

31.7 %

Temperature Control


27,598

31.0 %


19,689

27.5 %

Engineered Solutions


11,709

17.7 %


10,934

14.7 %

Nissens Automotive


27,838

42.1 %


—

— %

All Other


—



—


        Subtotal


$                 129,306

31.3 %


$                   89,522

27.0 %

Acquisition Expenses


(4,584)

-1.1 %


—

— %

        Gross Margin


$                 124,722

30.2 %


$                   89,522

27.0 %








Selling, General & Administrative







Vehicle Control


$                   43,835

22.8 %


$                   43,258

23.3 %

Temperature Control


19,823

22.3 %


17,600

24.6 %

Engineered Solutions


8,514

12.9 %


8,691

11.7 %

Nissens Automotive


20,254

30.6 %


—

— %

All Other


6,856



5,184


        Subtotal


$                   99,282

24.0 %


$                   74,733

22.6 %

Acquisition Expenses


563

0.1 %


—

— %

        Selling, General & Administrative


$                   99,845

24.2 %


$                   74,733

22.6 %








Operating Income







Vehicle Control


$                   18,326

9.5 %


$                   15,641

8.4 %

Temperature Control


7,775

8.7 %


2,089

2.9 %

Engineered Solutions


3,195

4.8 %


2,243

3.0 %

Nissens Automotive


7,584

11.5 %


—

— %

All Other


(6,856)



(5,184)


        Subtotal


$                   30,024

7.3 %


$                   14,789

4.5 %

Restructuring & Integration


(673)

-0.2 %


(192)

-0.1 %

Acquisition Expenses


(5,147)

-1.2 %


—

— %

Other Income, Net


258

0.1 %


22

— %

        Operating Income


$                   24,462

5.9 %


$                   14,619

4.4 %

 

Standard Motor Products, Inc.

Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts, unaudited)


Three Months Ended









March 31,









2025


2024







Earnings from Continuing Operations Attributable To SMP











GAAP Earnings from Continuing Operations


$             13,705


$               9,863


















Restructuring and Integration Expenses


673


192







Acquisition Expenses


5,147


—







Income Tax Effect Related To Reconciling Items


(1,513)


(50)







Non-GAAP Earnings from Continuing Operations


$             18,012


$             10,005


















Diluted Earnings Per Share from Continuing Operations Attributable to SMP











GAAP Diluted Earnings Per Share from Continuing Operations


$                 0.61


$                 0.44







Restructuring and Integration Expenses


0.03


0.01







Acquisition Expenses


0.23


—







Income Tax Effect Related To Reconciling Items


(0.06)


—







Non-GAAP Diluted Earnings Per Share from Continuing Operations


$                 0.81


$                 0.45


















Operating Income











GAAP Operating Income


$             24,462


$             14,619


















Restructuring and Integration Expenses


673


192







Acquisition Expenses


5,147


—


Last Twelve Months Ended



Other Income, Net


(258)


(22)


March 31,


Year Ended

Non-GAAP Operating Income


$             30,024


$             14,789


2025


2024


December 31, 2024












EBITDA without Special Items











GAAP Earnings from Continuing Operations Before Taxes


$             18,949


$             13,371


$                  79,567


$                  77,978


$                   73,989












Depreciation and Amortization


10,267


7,301


34,379


29,241


31,413

Interest Expense


7,761


2,067


19,206


11,492


13,512

     EBITDA


36,977


22,739


133,152


118,711


118,914












Restructuring and Integration Expenses


673


192


8,149


1,922


7,668

Acquisition Expenses


5,147


—


18,623


—


13,476

Special Items


5,820


192


26,772


1,922


21,144












EBITDA without Special Items


$             42,797


$             22,931


$                159,924


$                120,633


$                 140,058












Management believes that Non-GAAP earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations which are attributable to SMP, and Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results.  Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.

 

Standard Motor Products, Inc.

Reconciliation of GAAP and Non-GAAP Measures by Segments



Three Months Ended March 31, 2025

(In thousands, unaudited)


Vehicle
Control


Temperature
Control


Engineered
Solutions


Nissens
Automotive


All Other


Consolidated

Operating Income













GAAP Operating Income


$     17,782


$             7,900


$          3,176


$          2,587


$       (6,983)


$           24,462














Restructuring and Integration Expenses


526


136


20


—


(9)


673

Acquisition Expenses


—


—


—


5,011


136


5,147

Other (Income) Expense, Net


18


(261)


(1)


(14)


—


(258)

Non-GAAP Operating Income


$     18,326


$             7,775


$          3,195


$          7,584


$       (6,856)


$           30,024














EBITDA without Special Items













GAAP Earnings from Continuing Operations Before Taxes


$     17,046


$             7,948


$          3,431


$       (2,151)


$       (7,325)


$           18,949














Depreciation and Amortization


3,669


778


2,500


2,987


333


10,267

Interest Expense


1,007


539


459


5,620


136


7,761

EBITDA


21,722


9,265


6,390


6,456


(6,856)


36,977














Restructuring and Integration Expenses


526


136


20


—


(9)


673

Acquisition Expenses


—


—


—


5,011


136


5,147

Special Items


526


136


20


5,011


127


5,820














EBITDA without Special Items


$     22,248


$             9,401


$        6,410


$        11,467


$       (6,729)


$           42,797

% of Net Sales


11.6 %


10.6 %


9.7 %


17.3 %




10.4 %
















Three Months Ended March 31, 2024

(In thousands, unaudited)


Vehicle
Control


Temperature
Control


Engineered
Solutions


Nissens
Automotive


All Other


Consolidated

Operating Income













GAAP Operating Income


$     15,540


$             2,031


$          2,232


$             —


$       (5,184)


$           14,619














Restructuring and Integration Expenses


101


58


33


—


—


192

Other Income, Net


—


—


(22)


—


—


(22)

Non-GAAP Operating Income


$     15,641


$             2,089


$          2,243


$             —


$       (5,184)


$           14,789














EBITDA without Special Items













GAAP Earnings from Continuing Operations Before Taxes


$     14,315


$             1,888


$          2,346


$             —


$       (5,178)


$           13,371














Depreciation And Amortization


3,525


898


2,469


—


409


7,301

Interest Expense


1,427


531


664


—


(555)


2,067

     EBITDA


19,267


3,317


5,479


—


(5,324)


22,739














Restructuring and Integration Expenses


101


58


33


—


—


192

Special Items


101


58


33


—


—


192














EBITDA without Special Items


$     19,368


$           3,375


$          5,512


$             —


$       (5,324)


$           22,931

% of Net Sales


10.4 %


4.7 %


7.4 %


— %




6.9 %

Management believes that Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results.  Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.

 

Standard Motor Products, Inc.

Condensed Consolidated Balance Sheets








(In thousands)


March 31, 2025


March 31, 2024


December 31, 2024



Unaudited


Unaudited



ASSETS

Cash And Cash Equivalents


$                    50,276


$                    27,113


$                     44,426








Accounts Receivable, Gross


287,952


212,224


216,191

Allowance For Expected Credit Losses


7,157


8,284


5,472

Accounts Receivable, Net


280,795


203,940


210,719








Inventories


641,131


520,702


624,913

Unreturned Customer Inventory


17,597


18,007


16,163

Other Current Assets


26,282


26,674


25,703

Total Current Assets


1,016,081


796,436


921,924








Property, Plant And Equipment, Net


174,636


124,822


168,735

Operating Lease Right-of-use Assets


112,022


102,060


109,899

Goodwill


246,115


134,624


241,418

Customer Relationships Intangibles, Net


212,378


74,029


210,430

Other Intangibles, Net


93,087


15,971


90,540

Deferred Income Taxes


14,064


40,241


13,199

Investment In Unconsolidated Affiliates


26,013


24,751


24,842

Other Assets


31,695


38,627


33,139

Total Assets


$              1,926,091


$              1,351,561


$               1,814,126








LIABILITIES AND STOCKHOLDERS' EQUITY

Current Portion Of Revolving Credit Facility


$                      4,350


$                            —


$                     10,800

Current Portion Of Term Loan And Other Debt


18,876


5,030


16,317

Accounts Payable


151,206


98,293


148,009

Sundry Payables And Accrued Expenses


81,036


58,714


84,936

Accrued Customer Returns


66,087


47,220


46,471

Accrued Core Liability


11,722


17,438


12,807

Accrued Rebates


73,050


45,191


76,168

Payroll And Commissions


31,050


27,326


40,964

Total Current Liabilities


437,377


299,212


436,472








Long-term Debt


627,329


209,872


535,197

Noncurrent Operating Lease Liability


99,885


90,667


98,214

Accrued Asbestos Liabilities


79,928


68,985


84,568

Other Liabilities


29,135


27,704


29,593








Total Liabilities


1,273,654


696,440


1,184,044








Total SMP Stockholders' Equity


637,961


639,150


615,745

Noncontrolling Interest


14,476


15,971


14,337

Total Stockholders' Equity


652,437


655,121


630,082








Total Liabilities And Stockholders' Equity


$              1,926,091


$              1,351,561


$               1,814,126

 

Standard Motor Products, Inc.

Condensed Consolidated Statements of Cash Flows






Three Months Ended


March 31,

(In thousands, unaudited)

2025


2024

Cash Flows From Operating Activities




Net Earnings

$                12,741


$                  8,990

Adjustments To Reconcile Net Earnings To Net Cash Used In Operating Activities:




Depreciation And Amortization

10,267


7,301

Other

6,048


3,511

Change In Assets And Liabilities:




Accounts Receivable

(68,882)


(43,978)

Inventory

(14,576)


(14,670)

Prepaid Expenses And Other Current Assets

1,438


1,649

Accounts Payable

957


(9,274)

Sundry Payables And Accrued Expenses

(3,185)


3,988

Other

(5,028)


(3,233)

Net Cash Used In Operating Activities

(60,220)


(45,716)





Cash Flows From Investing Activities




Capital Expenditures

(9,132)


(10,086)

Other Investing Activities

2,923


15

Net Cash Used In Investing Activities

(6,209)


(10,071)





Cash Flows From Financing Activities




Net Change In Debt

79,094


58,692

Purchase Of Treasury Stock

—


(2,235)

Dividends Paid

(6,777)


(6,392)

Other Financing Activities

191


315

Net Cash Provided By Financing Activities

72,508


50,380





Effect Of Exchange Rate Changes On Cash

(229)


(6)

Net Increase (Decrease) In Cash And Cash Equivalents

5,850


(5,413)

Cash And Cash Equivalents At Beginning Of Period

44,426


32,526

Cash And Cash Equivalents At End Of Period

$                50,276


$                27,113

 

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SOURCE Standard Motor Products, Inc.