Stoneridge 2025 Q2 Earnings Sharp Earnings Deterioration of 440%

Stoneridge reported disappointing results for Q2 2025, with a net loss per share of $0.34 compared to earnings of $0.10 a year ago. The company revised its adjusted EBITDA guidance downward, reflecting ongoing cost pressures and a challenging market environment.

Revenue

Stoneridge's total revenue declined 3.8% year-over-year to $227.95 million in Q2 2025. The Electronics segment accounted for the largest portion of sales with $149.55 million, followed by Control Devices with $71.16 million. Stoneridge Brazil contributed $15.27 million in net sales, while eliminations reduced total net sales by $8.03 million. Unallocated Corporate expenses were reported as $0. The revenue mix highlights a diversified business structure, albeit under a broader industry slowdown.

Earnings/Net Income

Stoneridge swung to a loss of $0.34 per share in Q2 2025, compared to a profit of $0.10 per share in the same period a year ago. The net loss for the quarter stood at $9.36 million, marking a 435.9% deterioration from the $2.79 million net income in Q2 2024. The significant earnings decline reflects heightened cost pressures and a challenging operating environment.

Price Action

Stoneridge’s stock edged up 2.97% on the latest trading day, but slipped 3.66% for the week and declined 2.05% month-to-date, reflecting mixed short-term investor sentiment.

Post Earnings Price Action Review

A strategy of buying Stoneridge shares following quarterly revenue growth and holding for 30 days has underperformed drastically over the past three years, yielding a return of -68.69% compared to a 49.40% benchmark. The strategy's Sharpe ratio of -0.62 underscores its poor risk-adjusted performance, with a maximum drawdown of 0.00% and a CAGR of -32.38%, indicating a failure to capture positive momentum.

CEO Commentary

Jim Zizelman, President and CEO, highlighted progress in key strategic initiatives, particularly in the MirrorEye camera monitor system, which grew 21% in Q2. He also emphasized securing major program awards, including a $535 million global MirrorEye contract and a record $85 million OEM program in Brazil. Zizelman remained optimistic about long-term trends and Stoneridge’s leadership in vision systems.

Guidance

The company maintained its full-year revenue guidance of $860 million to $890 million but revised its adjusted EBITDA range to $34 million to $38 million (4.0% to 4.3% margin). This reflects year-to-date foreign currency expenses of $3.0 million and an estimated $1.0 million in tariff-related costs. Stoneridge expects operating performance improvements and currency benefits to offset production volume declines in North America.

Additional News

On August 7, 2025, a report titled *“Stoneridge公司2025年第二季度报告：在现金流改善的同时…”* noted improvements in cash flow, though no earnings metrics were provided. This report appeared to offer further context on the company’s broader financial health, aligning with the earnings results. No M&A activity, C-level changes, or dividend/buyback announcements were highlighted in the additional news within the specified timeframe.