Adjusted Q3 and year-to-date non-GAAP diluted earnings per share of $1.36 and $3.45 increased 6.3% and 27.8% from last year, respectively
Raising full-year sales guidance to low-to-mid 20's percent growth range, including Nissens, and tightening adjusted EBITDA margin outlook to 10.5% - 11% reflecting strong year-to-date results
NEW YORK, Oct. 31, 2025 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE:SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and nine months ended September 30, 2025.
Net sales for the third quarter of 2025 were $498.8 million, compared to consolidated net sales of $399.3 million during the same quarter in 2024. Earnings from continuing operations for the third quarter of 2025 were $29.8 million or $1.32 per diluted share, compared to earnings of $26.6 million or $1.20 per diluted share in the third 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 third quarter of 2025 were $30.6 million or $1.36 per diluted share, compared to $28.3 million or $1.28 per diluted share in the third quarter of 2024.
Consolidated net sales for the nine months ended September 30, 2025, were $1.41 billion, compared to consolidated net sales of $1.12 billion during the comparable period in 2024. Earnings from continuing operations for the nine months ended September 30, 2025, were $69.8 million or $3.11 per diluted share, compared to $54.4 million or $2.45 per diluted share in the comparable period 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 nine months ended September 30, 2025 and 2024 were $77.5 million or $3.45 per diluted share and $59.9 million or $2.70 per diluted share, respectively.
Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are very pleased with our solid third quarter results, especially following our record quarter last year. Sales for the quarter increased nearly 25%, or 3.8% excluding the impact of Nissens Automotive (Nissens). This reflects an ongoing trend, as year-to-date we are up 25.5%, or 4.0% excluding Nissens. Additionally, adjusted non-GAAP diluted earnings per share grew 6.3% for the quarter and 27.8% for the year."
Third Quarter Highlights:North American Aftermarket Segments
Vehicle Control sales were down 1.6% in the third quarter, against a difficult comparison, and impacted by softness in the wire category which is in secular decline. Customer POS was positive in the quarter, a continuation of the strong sell-through trend we have seen all year, underscoring the non-discretionary nature of our products. Year-to-date, we are up 2.9% in the segment.
Temperature Control sales increased 14.8%, a continuation of the strong sales pattern experienced throughout the year. We believe our customers were able to expand share, aided by this year's early pre-season orders which positioned them well for the start of the selling season. Year-to-date, the segment is up 13.3%, building on last year's 9.9% growth for the same period last year.
Nissens
Our newest segment, Nissens, posted another solid quarter as it contributed sales of $84.5 million, with an adjusted EBITDA margin of 16.8%, in line with our full-year expectations of mid-teens. Nissens continues to outperform in its markets, executing on its value proposition and gaining share, and is enjoying the benefits of some favorable currency translation.
Nearing our first full year of ownership, we are ahead of plan and very pleased with our synergy and integration efforts to date and have begun planning our next wave of initiatives, including capitalizing on each other's strengths to launch new product categories.
Engineered SolutionsSales in the Engineered Solutions segment were essentially flat in the quarter, reflecting a leveling off in certain end markets. While it is difficult to predict when a general end-market rebound may occur, we believe demand has stabilized, and along with easier comparisons moving forward, we expect more steady performance for the segment.
Profitability & Balance SheetAdjusted EBITDA for the quarter increased to $61.7 million, up from $48.7 million last year, driven by strong performance in our Temperature Control segment, as well as the $14.2 million contributed from Nissens, partially offset by the impact of lower sales volume in the Vehicle Control segment. On a year-to-date basis, adjusted EBITDA increased to $163.6 million up from $111.1 million in the same period last year, again driven by strong performance in our Temperature Control segment, as well as the $42.0 million contributed from Nissens that resulted in an adjusted EBITDA margin improvement of 170 basis points to 11.6%.
From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $502.3 million, primarily reflecting additional borrowings related to our Nissens acquisition and seasonal working capital build. Our debt leverage declined from 3.2x to 2.6x in the quarter on the strength of our results, and we continue to target reducing debt levels to 2.0x adjusted EBITDA by the end of 2026.
Tariff Impact & MitigationOn tariffs, we believe our diverse global footprint provides us with a competitive advantage. Over half of our U.S. sales are from North American-made, USMCA-compliant products, which are largely tariff-free. For products sourced from other regions, we are implementing our mitigation plan as previously described, which includes cost containment through cost-sharing with our suppliers, re-sourcing to lower-tariffed countries, and from pass-through pricing to our customers. Beginning in the third quarter of 2025, our ongoing tariff costs were generally offset with pricing, and we expect this offset to continue going forward. We are hopeful that we are nearing a more stabilized environment. We continue to monitor the shifting tariff landscape and plan to implement any changes as necessary.
Updated 2025 GuidanceWe are raising our full year sales growth guidance to the low-to-mid 20's percent range (from the low 20's percent range) and are tightening our adjusted EBITDA margin outlook to 10.5% - 11% (from a prior range of 10% - 11%). As a reminder, we acquired Nissens on November 1, 2024, and as such the sales growth guidance includes a partial quarter of ownership in the comparable sales. Also note that our revised guidance now includes the impact of tariffs as they stand as of the end of the third quarter and includes both pricing and other mitigating actions to offset higher costs. While passing through tariff pricing at our cost creates margin rate compression, we're pleased to see sales growth and other initiatives offset this headwind and allow us to raise our EBITDA guidance.
DividendsThe 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 December 1, 2025, to stockholders of record on November 14, 2025.
Closing RemarksIn closing, Mr. Sills commented, "This has been a strong year for SMP despite volatility related to tariffs, geopolitical issues and an uncertain macroeconomic environment. Demand for our North American aftermarket products remains solid as our customers continue to partner with us to service the aging fleet on the road today. We are investing in our business model to expand our position globally, capitalizing on complementary strengths with Nissens to expand on both sides of the ocean. We will continue to find ways to grow, improve profitability and deliver increased shareholder value, and as such are optimistic about our future. I would like to thank our employees for their hard work and commitment to our continued success."
Conference CallStandard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Friday, October 31, 2025. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q3'25 Earnings Call Webcast link. Investors may also listen to the call by dialing 800-579-2543 (domestic) or 785-424-1789 (international). The conference call ID code is SMP3Q2025. 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 800-934-8340 (domestic) or 402-220-6993 (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
September 30,
Nine Months Ended
September 30,
(In thousands, except share and per share data, unaudited)
2025
2024
2025
2024
Net sales
$ 498,836
$ 399,265
$ 1,406,068
$ 1,120,497
Cost of sales
337,042
277,899
968,663
798,162
Gross profit
161,794
121,366
437,405
322,335
Selling, general and administrative expenses
113,388
81,204
320,753
239,822
Restructuring expenses
782
3,023
2,037
5,774
Other income, net
12
—
319
5
Operating income
47,636
37,139
114,934
76,744
Other non-operating income, net
1,734
2,129
5,857
5,147
Interest expense
7,394
3,145
23,450
7,964
Earnings from continuing operations before income taxes
41,976
36,123
97,341
73,927
Provision for income taxes
11,977
9,267
26,867
18,718
Earnings from continuing operations
29,999
26,856
70,474
55,209
Loss from discontinued operations, net of income taxes
(34,172)
(22,771)
(36,369)
(24,727)
Net earnings (loss)
(4,173)
4,085
34,105
30,482
Net earnings attributable to noncontrolling interest
162
275
632
785
Net earnings (loss) attributable to SMP
$ (4,335)
$ 3,810
$ 33,473
$ 29,697
Net earnings (loss) attributable to SMP
Continuing operations
$ 29,837
$ 26,581
$ 69,842
$ 54,424
Discontinued operations
(34,172)
(22,771)
(36,369)
(24,727)
Net earnings (loss) attributable to SMP
$ (4,335)
$ 3,810
$ 33,473
$ 29,697
Per common share data
Basic:
Continuing operations
$ 1.36
$ 1.22
$ 3.18
$ 2.50
Discontinued operations
(1.56)
(1.04)
(1.66)
(1.14)
Net earnings (loss) attributable to SMP per common share
$ (0.20)
$ 0.18
$ 1.52
$ 1.36
Diluted:
Continuing operations
$ 1.32
$ 1.20
$ 3.11
$ 2.45
Discontinued operations
(1.51)
(1.03)
(1.62)
(1.11)
Net earnings (loss) attributable to SMP per common share
$ (0.19)
$ 0.17
$ 1.49
$ 1.34
Dividend declared per common share
$ 0.31
$ 0.29
$ 0.93
$ 0.87
Weighted average number of common shares, basic
21,991,194
21,716,083
21,954,548
21,802,164
Weighted average number of common shares, diluted
22,571,304
22,154,222
22,439,082
22,225,444
Standard Motor Products, Inc.Segment Revenues
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, unaudited)
2025
2024
2025
2024
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)
$ 121,420
$ 121,432
$ 368,019
$ 353,046
Electrical and Safety
63,192
63,237
178,339
172,772
Wire Sets and Other
13,070
16,208
45,365
49,324
Total Vehicle Control
197,682
200,877
591,723
575,142
Temperature Control
AC System Components
114,033
95,698
286,001
245,628
Other Thermal Components
30,624
30,287
78,904
76,446
Total Temperature Control
144,657
125,985
364,905
322,074
Nissens Automotive
Air Conditioning
36,409
—
104,016
—
Engine Cooling
32,168
—
95,023
—
Engine Efficiency
15,960
—
42,217
—
Total Nissens Automotive
84,537
—
241,256
—
Engineered Solutions
Light Vehicle
21,977
24,287
65,161
70,776
Commercial Vehicle
21,111
22,625
61,552
69,016
Construction/Agriculture
8,863
8,082
27,855
27,631
All Other
20,247
17,409
53,854
55,858
Total Engineered Solutions
72,198
72,403
208,422
223,281
Other
(238)
—
(238)
—
Total
$ 498,836
$ 399,265
$ 1,406,068
$ 1,120,497
Standard Motor Products, Inc
Segment Operating Profit
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, unaudited; percentage of net sales)
2025
2024
2025
2024
Gross Margin
Vehicle Control
$ 62,166
31.4 %
$ 65,652
32.7 %
$ 184,975
31.3 %
$ 184,520
32.1 %
Temperature Control
51,946
35.9 %
42,323
33.6 %
121,907
33.4 %
98,621
30.6 %
Nissens Automotive
34,827
41.2 %
—
— %
99,480
41.2 %
—
— %
Engineered Solutions
12,855
17.8 %
13,391
18.5 %
37,253
17.9 %
39,194
17.6 %
All Other
—
—
—
—
Subtotal
$ 161,794
32.4 %
$ 121,366
30.4 %
$ 443,615
31.6 %
$ 322,335
28.8 %
Acquisition Expenses
—
— %
—
— %
(6,210)
-0.4 %
—
— %
Gross Margin
$ 161,794
32.4 %
$ 121,366
30.4 %
$ 437,405
31.1 %
$ 322,335
28.8 %
Selling, General & Administrative
Vehicle Control
$ 46,277
23.4 %
$ 43,021
21.4 %
$ 133,676
22.6 %
$ 130,123
22.6 %
Temperature Control
25,196
17.4 %
25,876
20.5 %
67,859
18.6 %
66,641
20.7 %
Nissens Automotive
24,018
28.4 %
—
— %
68,257
28.3 %
—
— %
Engineered Solutions
8,754
12.1 %
8,124
11.2 %
25,986
12.5 %
25,491
11.4 %
All Other
8,844
5,190
22,839
16,163
Subtotal
$ 113,089
22.7 %
$ 82,211
20.6 %
$ 318,617
22.7 %
$ 238,418
21.3 %
Acquisition Expenses
299
0.1 %
