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Stoneridge Inc. Reports $7.2 Million Q1 Loss Amid Market Challenges

Corporate office building of Stoneridge Inc.

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News Summary

Stoneridge Inc. faced a significant financial setback in Q1 2025, reporting a loss of $7.2 million or 26 cents per share. Despite revenue of $217.9 million and positive cash flow of $4.9 million, the company’s electronic segment sales declined due to reduced volumes in the commercial vehicle market. However, their Control Devices segment saw a rise in sales, demonstrating some resilience. Looking ahead, Stoneridge forecasts full-year revenue between $860 million and $890 million, emphasizing operational improvements and market adaptability as key strategies.

Detroit, MI – Stoneridge Inc. (SRI) reported a significant financial setback in its first quarter of 2025, ending March 31, with a loss of $7.2 million. This figure equates to a loss of 26 cents per share. After accounting for non-recurring costs, the adjusted loss is reported at 19 cents per share.

The company’s revenue for the quarter stood at $217.9 million, while its gross profit was $46.3 million, resulting in a gross margin of 21.2% of sales. Adjusted gross profit increased slightly to $47.7 million, or 21.9% of sales. Stoneridge experienced an operating loss of $3.2 million, equivalent to a margin of (1.5)% of sales. When adjusted, the operating loss narrowed to $0.4 million, marking (0.2)% of sales. However, adjusted EBITDA rose to $7.6 million, representing 3.5% of sales—a $1.6 million improvement compared to the previous quarter.

In terms of segment performance, Stoneridge’s electronic segment sales totaled $140.5 million, showing a decrease of 6.0% from the last quarter. This decline is primarily attributed to reduced production volumes in the commercial vehicle market. Conversely, the Control Devices segment observed a 10.6% increase in sales, reaching $69.9 million, driven by higher production volumes for North American passenger vehicle customers. Notably, Stoneridge Brazil reported a robust first-quarter sales increase of 15.9%, totaling $14.4 million, bolstered by enhanced OEM sales.

Despite the quarterly loss, Stoneridge generated a positive free cash flow of approximately $4.9 million, marking a $1.5 million improvement compared to the same quarter in 2024. As of March 31, 2025, the company reported cash and cash equivalents of $79.1 million against a total debt of $203.2 million, indicating a challenging financial position but some liquidity for operational needs.

Looking ahead, Stoneridge is forecasting its full-year revenue to fall within the range of $860 million to $890 million. The company has acknowledged the potential impact of tariffs and has noted minimal direct effects in the first quarter. Management emphasizes ongoing operational improvements, solid cost controls, and an adaptive approach to market conditions as pivotal for achieving their financial guidance, regardless of external macroeconomic uncertainties.

This financial report underscores Stoneridge’s commitment to operational excellence. Leadership has identified maintaining shareholder value and strategic navigation through evolving market conditions as key priorities. The company aims to enhance its resilience and productivity as it moves forward into the fiscal year 2025.