Standard Motor Products reported third‑quarter 2025 net sales of $498.8 million, a 24.9% increase from the same period last year, and GAAP earnings per share of $1.32. Non‑GAAP diluted EPS rose 6.3% to $1.36, driven by a 26.7% increase in adjusted EBITDA to $61.7 million, which represents a 12.4% margin.
The Nissens Automotive segment, acquired in November 2024, contributed $84.5 million in sales and a 16.8% adjusted EBITDA margin. The Temperature Control division delivered volume and margin expansion, while Vehicle Control sales grew modestly, reflecting softness in the wire category. Engineered Solutions sales remained flat, consistent with a stabilization of demand after a 11.2% decline in Q1 2025.
On the balance sheet, net debt stood at $502.3 million, giving a leverage ratio of 2.6x adjusted EBITDA. The company declared a quarterly dividend of $0.31 per share, payable December 1, continuing its 16‑year dividend history.
Management raised its full‑year 2025 sales growth guidance to the low‑to‑mid 20% range and tightened its adjusted EBITDA margin outlook to 10.5%–11%. The updated guidance incorporates the impact of tariffs and pricing actions, and reflects confidence in ongoing profitability.
Revenue missed analyst estimates of $503.33 million, and GAAP EPS fell short of the consensus of $1.65. The revenue shortfall is attributed to a 1.6% decline in Vehicle Control sales in Q3 2024 and continued tariff pressure on North American‑made products, which the company is mitigating through pricing adjustments and supply‑chain diversification.
The company plans to reduce its debt leverage to 2.0x adjusted EBITDA by the end of 2026, down from 2.6x in Q3 2025. The Nissens acquisition is expected to accelerate growth, and the company is pursuing further integration initiatives to capture additional margin upside.
The updated guidance signals continued confidence in the company’s strategic execution and market position, while the company remains vigilant about tariff volatility, geopolitical risks, and macroeconomic uncertainty.
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