Stoneridge (SRI) 1 Aug 24 2024 Q2 Earnings call transcript

Stoneridge, Inc.'s second quarter 2024 earnings call highlighted the company's continued focus on operational excellence and strategic initiatives, driving significant improvements in financial performance. The call, led by Director of Investor Relations, Kelly Harvey, featured insights from President and CEO, James Zizelman, CFO, Matthew Horvath, and Chief Technology Officer, Troy Cooprider.

Financial Performance Highlights

Stoneridge reported a 250 basis point improvement in gross margin, a 210 basis point improvement in adjusted operating margin, and a 410 basis point improvement in adjusted EBITDA margin compared to the first quarter of 2024. These improvements were attributed to continued material cost improvements, operating cost control, and a 22.7% gross margin, which is a 250 basis point improvement over the first quarter.

Strategic Initiatives and Partnerships

The call emphasized the successful launch of Stoneridge's MirrorEye OEM systems with Volvo and Peterbilt, showcasing the company's focus on developing advanced technology solutions for the mobility industry. Additionally, Volvo Bus' partnership with Stoneridge for connected services and digital solutions using Stoneridge's artificial intelligence fuel advice system marks a significant milestone in the company's digital transformation.

Leadership Changes and Operational Excellence

Natalia Noblet's appointment as President of Electronics, effective September 1, 2024, signifies a new chapter for the company. Her extensive experience in automotive and commercial vehicle sectors is expected to drive operational excellence and long-term shareholder value.

Future Outlook

Stoneridge's guidance for the remainder of 2024 includes a reduction in revenue due to lower production volumes for commercial vehicle programs in Europe and North America. However, the company remains optimistic about its market outperformance and continued margin expansion.

Conclusion

Stoneridge's second quarter 2024 results demonstrate a clear focus on operational excellence, strategic partnerships, and the development of advanced technologies. Despite facing macroeconomic pressures and volatility, the company's outlook remains positive, with a focus on driving long-term profitable growth and shareholder value.