Standard Motor Products, Inc. Releases First Quarter 2026 Results and Quarterly Dividend
- Strong first quarter net sales of
$451.2 million up, 9.1% from last year, with increases in all segments - Adjusted Q1 non-GAAP diluted earnings per share of
$0.82 and adjusted EBITDA of$44.5 million vs.$0.81 and$42.8 million last year, respectively - Reaffirming full-year guidance of low to mid-single digit sales growth and adjusted EBITDA margin of 11% - 12%
Net sales for the first quarter of 2026 were
Mr.
First Quarter Highlights:
North American Aftermarket Segments
- Vehicle Control sales increased 11.2% in the first quarter, largely on the strength of customer pipeline orders as they expand assortments to capture DIFM share. We continue to experience favorable demand, as evidenced by strong customer POS and reflective of the non-discretionary nature of our products. We also saw a nominal lift from pass-through tariff pricing.
- Temperature Control sales increased a modest 0.7%, against last year's record first quarter, when sales were up 24%. As we enter our second quarter, we still have preseason orders left to ship as customers prepare for the upcoming summer selling season. While we are off to a strong start, including favorable customer POS, ultimately this seasonal business will be determined by the strength of the summer months.
Nissens
Nissens sales increased 12.4% to
Engineered Solutions
Sales in the Engineered Solutions segment showed solid growth of 12.6% over last year's soft first quarter as demand continues to recover. Sales growth was aided by recovery in commercial vehicle and power sports end-markets, driven by ordering patterns with certain customers.
Profitability & Balance Sheet
Adjusted EBITDA for the quarter increased to
From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at
2026 Guidance Update
Our outlook for the full year of 2026 reaffirms our expectation that sales growth will be in the low to mid-single digit range driven by ongoing tailwinds for professional grade non-discretionary products in the North American aftermarket, continuing momentum in our European business, and an ongoing recovery in Engineered Solutions, offset by a lapping of both tariff pricing and the benefits of stronger currency conversion.
Further, we expect Adjusted EBITDA will be in a range of 11% -12%, aided by initiatives we have underway to drive ongoing profitability gains, partially offset by margin compression attributable to passing through tariffs at cost, which began in the second half of 2025. Note that our guidance excludes the impact of ongoing changes in the tariff landscape, or any significant inflationary impact from the conflict in the
Dividends
The Board of Directors has approved payment of a quarterly dividend of
Closing Remarks
In closing,
Conference Call
Standard Motor Products, Inc. will hold a conference call at
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 | |||
(In thousands, except share and per share data, unaudited) | 2026 | 2025 | |
Net sales | $ 451,166 | $ 413,379 | |
Cost of sales | 311,993 | 288,657 | |
Gross profit | 139,173 | 124,722 | |
Selling, general and administrative expenses | 104,837 | 99,845 | |
Restructuring expenses | 366 | 673 | |
Other income, net | 123 | 258 | |
Operating income | 34,093 | 24,462 | |
Other non-operating income (loss), net | (1,279) | 2,248 | |
Interest expense | 7,518 | 7,761 | |
Earnings from continuing operations before income taxes | 25,296 | 18,949 | |
Provision for income taxes | 6,826 | 5,069 | |
Earnings from continuing operations | 18,470 | 13,880 | |
Loss from discontinued operations, net of income taxes | (1,185) | (1,139) | |
Net earnings | 17,285 | 12,741 | |
Net earnings attributable to noncontrolling interest | 149 | 175 | |
Net earnings attributable to SMP | $ 17,136 | $ 12,566 | |
Net earnings (loss) attributable to SMP | |||
Continuing operations | $ 18,321 | $ 13,705 | |
Discontinued operations | (1,185) | (1,139) | |
Net earnings attributable to SMP per common share | $ 17,136 | $ 12,566 | |
Per common share data | |||
Basic: | |||
Continuing operations | $ 0.83 | $ 0.63 | |
Discontinued operations | (0.06) | (0.06) | |
Net earnings attributable to SMP per common share | $ 0.77 | $ 0.57 | |
Diluted: | |||
Continuing operations | $ 0.81 | $ 0.61 | |
Discontinued operations | (0.06) | (0.05) | |
Net earnings attributable to SMP per common share | $ 0.75 | $ 0.56 | |
Dividend declared per common share | $ 0.33 | $ 0.31 | |
Weighted average number of common shares, basic | 22,167,006 | 21,886,810 | |
Weighted average number of common shares, diluted | 22,719,732 | 22,319,868 | |
Standard Motor Products, Inc. | |||
Segment Revenues | |||
Three Months Ended | |||
(in thousands, unaudited) | 2026 | 2025 | |
Vehicle Control | |||
Engine Management (Ignition, Emissions and Fuel Delivery) | $ 141,087 | $ 118,366 | |
Electrical and Safety | 57,866 | 58,319 | |
Wire Sets and Other | 14,886 | 15,657 | |
Total Vehicle Control | 213,839 | 192,342 | |
Temperature Control | |||
AC System Components | 65,198 | 67,191 | |
Other Thermal Components | 24,306 | 21,692 | |
Total Temperature Control | 89,504 | 88,883 | |
Nissens Automotive | |||
Air Conditioning | 26,273 | 27,166 | |
Engine Cooling | 31,451 | 27,773 | |
Engine Efficiency | 16,643 | 11,243 | |
Total Nissens Automotive | 74,367 | 66,182 | |
Engineered Solutions | |||
Light Vehicle | 22,920 | 21,404 | |
Commercial Vehicle | 22,908 | 18,605 | |
Construction/Agriculture | 9,504 | 9,408 | |
All Other | 18,980 | 16,555 | |
Total Engineered Solutions | 74,312 | 65,972 | |
Intersegment sales | (856) | — | |
Total | $ 451,166 | $ 413,379 | |
Standard Motor Products, Inc. | ||||||
Segment Operating Profit | ||||||
Three Months Ended | ||||||
(in thousands, unaudited; percentage of net sales) | 2026 | 2025 | ||||
Gross Margin | ||||||
Vehicle Control | $ 68,165 | 31.9 % | $ 62,161 | 32.3 % | ||
Temperature Control | 28,652 | 32.0 % | 27,598 | 31.0 % | ||
Nissens Automotive | 32,071 | 43.1 % | 27,838 | 42.1 % | ||
Engineered Solutions | 10,285 | 13.8 % | 11,709 | 17.7 % | ||
All Other | — | — | ||||
Subtotal | $ 139,173 | 30.8 % | $ 129,306 | 31.3 % | ||
Acquisition Expenses | — | — % | (4,584) | -1.1 % | ||
Gross Margin | $ 139,173 | 30.8 % | $ 124,722 | 30.2 % | ||
Selling, General & Administrative | ||||||
Vehicle Control | $ 47,962 | 22.4 % | $ 43,835 | 22.8 % | ||
Temperature Control | 18,058 | 20.2 % | 19,823 | 22.3 % | ||
Nissens Automotive | 24,200 | 32.5 % | 20,254 | 30.6 % | ||
Engineered Solutions | 8,556 | 11.5 % | 8,514 | 12.9 % | ||
All Other | 6,059 | 6,856 | ||||
Subtotal | $ 104,835 | 23.2 % | $ 99,282 | 24.0 % | ||
Acquisition Expenses | 2 | — % | 563 | 0.1 % | ||
Selling, General & Administrative | $ 104,837 | 23.2 % | $ 99,845 | 24.2 % | ||
Operating Income | ||||||
Vehicle Control | $ 20,203 | 9.4 % | $ 18,326 | 9.5 % | ||
Temperature Control | 10,594 | 11.8 % | 7,775 | 8.7 % | ||
Nissens Automotive | 7,871 | 10.6 % | 7,584 | 11.5 % | ||
Engineered Solutions | 1,729 | 2.3 % | 3,195 | 4.8 % | ||
All Other | (6,059) | (6,856) | ||||
Subtotal | $ 34,338 | 7.6 % | $ 30,024 | 7.3 % | ||
Restructuring | (366) | -0.1 % | (673) | -0.2 % | ||
Acquisition & Integration Expenses | (2) | — % | (5,147) | -1.2 % | ||
Other Income, Net | 123 | — % | 258 | 0.1 % | ||
Operating Income | $ 34,093 | 7.6 % | $ 24,462 | 5.9 % | ||
Standard Motor Products, Inc. | ||||||||||
Reconciliation of GAAP and Non-GAAP Measures | ||||||||||
(In thousands, except per share amounts, unaudited) | Three Months Ended | |||||||||
2026 | 2025 | |||||||||
Earnings from Continuing Operations Attributable To SMP | ||||||||||
GAAP Earnings from Continuing Operations | $ 18,321 | $ 13,705 | ||||||||
Restructuring Expenses | 366 | 673 | ||||||||
Acquisition & Integration Expenses | 2 | 5,147 | ||||||||
Income Tax Effect Related To Reconciling Items | (96) | (1,513) | ||||||||
Non-GAAP Earnings from Continuing Operations | $ 18,593 | $ 18,012 | ||||||||
Diluted Earnings Per Share from Continuing Operations Attributable to SMP | ||||||||||
GAAP Diluted Earnings Per Share from Continuing Operations | $ 0.81 | $ 0.61 | ||||||||
Restructuring Expenses | 0.01 | 0.03 | ||||||||
Acquisition & Integration Expenses | — | 0.23 | ||||||||
Income Tax Effect Related To Reconciling Items | — | (0.06) | ||||||||
Non-GAAP Diluted Earnings Per Share from Continuing Operations | $ 0.82 | $ 0.81 | ||||||||
Operating Income | ||||||||||
GAAP Operating Income | $ 34,093 | $ 24,462 | ||||||||
Restructuring Expenses | 366 | 673 | ||||||||
Acquisition & Integration Expenses | 2 | 5,147 | Last Twelve Months Ended | |||||||
Other Income, Net | (123) | (258) | Year Ended | |||||||
Non-GAAP Operating Income | $ 34,338 | $ 30,024 | 2026 | 2025 |
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EBITDA without Special Items | ||||||||||
GAAP Earnings from Continuing Operations Before Taxes | $ 25,296 | $ 18,949 | $ 116,870 | $ 79,567 | $ 110,523 | |||||
Depreciation and Amortization | 11,315 | 10,267 | 44,896 | 34,379 | 43,848 | |||||
Interest Expense | 7,518 | 7,761 | 31,096 | 19,206 | 31,339 | |||||
EBITDA | 44,129 | 36,977 | 192,862 | 133,152 | 185,710 | |||||
Restructuring Expenses | 366 | 673 | 2,273 | 8,149 | 2,580 | |||||
Acquisition & Integration Expenses | 2 | 5,147 | 3,438 | 18,623 | 8,583 | |||||
Customer Program Wind Down | — | — | 4,067 | — | 4,067 | |||||
Special Items | 368 | 5,820 | 9,778 | 26,772 | 15,230 | |||||
EBITDA without Special Items | $ 44,497 | $ 42,797 | $ 202,640 | $ 159,924 | $ 200,940 | |||||
Management believes that Non-GAAP earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations which are attributable to SMP, and Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. |
Standard Motor Products, Inc. | ||||||||||||
Reconciliation of GAAP and Non-GAAP Measures by Segments | ||||||||||||
Three Months Ended | ||||||||||||
(In thousands, unaudited) | Vehicle | Temperature | Nissens | Engineered | All Other | Consolidated | ||||||
Operating Income | ||||||||||||
GAAP Operating Income | $ 19,613 | $ 10,843 | $ 7,873 | $ 1,822 | $ (6,058) | $ 34,093 | ||||||
Restructuring Expenses | 272 | 70 | — | 24 | — | 366 | ||||||
Acquisition & Integration Expenses | — | — | 2 | — | — | 2 | ||||||
Other (Income) Expense, Net | 319 | (320) | (5) | (117) | — | (123) | ||||||
Non-GAAP Operating Income | $ 20,204 | $ 10,593 | $ 7,870 | $ 1,729 | $ (6,058) | $ 34,338 | ||||||
EBITDA without Special Items | ||||||||||||
GAAP Earnings from Continuing Operations Before Taxes | $ 17,877 | $ 10,393 | $ 1,361 | $ 1,937 | $ (6,272) | $ 25,296 | ||||||
Depreciation and Amortization | 4,297 | 808 | 3,266 | 2,594 | 350 | 11,315 | ||||||
Interest Expense | 1,864 | 738 | 4,647 | 567 | (298) | 7,518 | ||||||
EBITDA | 24,038 | 11,939 | 9,274 | 5,098 | (6,220) | 44,129 | ||||||
Restructuring Expenses | 272 | 70 | — | 24 | — | 366 | ||||||
Acquisition & Integration Expenses | — | — | 2 | — | — | 2 | ||||||
Special Items | 272 | 70 | 2 | 24 | — | 368 | ||||||
EBITDA without Special Items | $ 24,310 | $ 12,009 | $ 9,276 | $ 5,122 | $ (6,220) | $ 44,497 | ||||||
% of | 11.4 % | 13.4 % | 12.5 % | 6.9 % | 9.9 % | |||||||
Three Months Ended | ||||||||||||
(In thousands, unaudited) | Vehicle | Temperature | Nissens | Engineered | All Other | Consolidated | ||||||
Operating Income | ||||||||||||
GAAP Operating Income | $ 17,782 | $ 7,900 | $ 2,587 | $ 3,176 | $ (6,983) | $ 24,462 | ||||||
Restructuring Expenses | 526 | 136 | — | 20 | (9) | 673 | ||||||
Acquisition & Integration Expenses | — | — | 5,011 | — | 136 | 5,147 | ||||||
Other Income, Net | 18 | (261) | (14) | (1) | — | (258) | ||||||
Non-GAAP Operating Income | $ 18,326 | $ 7,775 | $ 7,584 | $ 3,195 | $ (6,856) | $ 30,024 | ||||||
EBITDA without Special Items | ||||||||||||
GAAP Earnings from Continuing Operations Before Taxes | $ 17,046 | $ 7,948 | $ (2,151) | $ 3,431 | $ (7,325) | $ 18,949 | ||||||
Depreciation And Amortization | 3,669 | 778 | 2,987 | 2,500 | 333 | 10,267 | ||||||
Interest Expense | 1,007 | 539 | 5,620 | 459 | 136 | 7,761 | ||||||
EBITDA | 21,722 | 9,265 | 6,456 | 6,390 | (6,856) | 36,977 | ||||||
Restructuring Expenses | 526 | 136 | — | 20 | (9) | 673 | ||||||
Acquisition & Integration Expenses | — | — | 5,011 | — | 136 | 5,147 | ||||||
Special Items | 526 | 136 | 5,011 | 20 | 127 | 5,820 | ||||||
EBITDA without Special Items | $ 22,248 | $ 9,401 | $ 11,467 | $ 6,410 | $ (6,729) | $ 42,797 | ||||||
% of | 11.6 % | 10.6 % | 17.3 % | 9.7 % | 10.4 % | |||||||
Management believes that Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. |
Standard Motor Products, Inc. | |||||
Consolidated Balance Sheets | |||||
(In thousands, except share and per share data) |
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ASSETS | (Unaudited) | (Unaudited) | |||
CURRENT ASSETS: | |||||
Cash | $ 59,207 | $ 50,276 | $ 72,031 | ||
Accounts receivable, less allowances for discounts and expected credit losses of | 312,961 | 280,795 | 232,020 | ||
Inventories | 726,308 | 658,728 | 727,922 | ||
Prepaid expenses and other current assets | 21,069 | 26,282 | 18,477 | ||
Total current assets | 1,119,545 | 1,016,081 | 1,050,450 | ||
Property, plant and equipment, net of accumulated depreciation of | 186,442 | 174,636 | 188,562 | ||
Operating lease right-of-use assets | 102,003 | 112,022 | 105,178 | ||
Goodwill | 253,626 | 246,115 | 256,159 | ||
Customer relationships intangibles, net | 204,526 | 212,378 | 212,056 | ||
Other intangibles, net | 97,303 | 93,087 | 99,102 | ||
Deferred income taxes | 25,599 | 14,064 | 25,384 | ||
Investments in unconsolidated affiliates | 26,685 | 26,013 | 26,310 | ||
Other assets | 32,570 | 31,695 | 32,040 | ||
Total assets | $ 2,048,299 | $ 1,926,091 | $ 1,995,241 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
CURRENT LIABILITIES: | |||||
Current portion of revolving credit facility | $ 30,000 | $ 4,350 | $ 30,000 | ||
Current portion of term loan and other debt | 19,370 | 18,876 | 21,988 | ||
Accounts payable | 179,524 | 151,206 | 169,089 | ||
Sundry payables and accrued expenses | 98,246 | 92,758 | 92,054 | ||
Accrued customer returns | 63,710 | 66,087 | 49,554 | ||
Accrued rebates | 75,924 | 73,050 | 84,494 | ||
Payroll and commissions | 34,298 | 31,050 | 46,135 | ||
Total current liabilities | 501,072 | 437,377 | 493,314 | ||
Long-term debt | 609,250 | 627,329 | 566,727 | ||
Noncurrent operating lease liabilities | 90,345 | 99,885 | 93,381 | ||
Accrued asbestos liabilities | 109,783 | 29,135 | 112,625 | ||
Other accrued liabilities | 30,270 | 79,928 | 30,932 | ||
Total liabilities | 1,340,720 | 1,273,654 | 1,296,979 | ||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Common stock – par value | 47,872 | 47,872 | 47,872 | ||
Capital in excess of par value | 101,104 | 99,547 | 99,005 | ||
Retained earnings | 599,276 | 581,174 | 589,448 | ||
Accumulated other comprehensive income | 11,664 | (13,655) | 17,857 | ||
Treasury stock – at cost (1,690,616 shares in 2026 and 1,955,013 and 1,790,097 shares in March and | (66,589) | (76,977) | (70,483) | ||
Total SMP stockholders' equity | 693,327 | 637,961 | 683,699 | ||
Noncontrolling interest | 14,252 | 14,476 | 14,563 | ||
Total stockholders' equity | 707,579 | 652,437 | 698,262 | ||
Total liabilities and stockholders' equity | $ 2,048,299 | $ 1,926,091 | $ 1,995,241 | ||
Standard Motor Products, Inc. | |||
Consolidated Statements of Cash Flows | |||
(In thousands, unaudited) | Three Months Ended | ||
2026 | 2025 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $ 17,285 | $ 12,741 | |
Adjustments to reconcile net earnings to net cash used in operating activities: | |||
Depreciation and amortization | 11,315 | 10,267 | |
Amortization of deferred financing cost | 278 | 327 | |
(Decrease) increase to allowance for expected credit losses | (124) | 1,614 | |
Increase to inventory reserves | 901 | 1,843 | |
Equity income from joint ventures | (669) | (1,084) | |
Employee stock ownership plan allocation | 822 | 675 | |
Stock-based compensation | 2,989 | 1,550 | |
Increase in deferred income taxes | (980) | (16) | |
Loss on discontinued operations, net of tax | 1,185 | 1,139 | |
Change in assets and liabilities: | |||
Increase in accounts receivable | (82,541) | (68,882) | |
Increase in inventories | (1,966) | (14,576) | |
(Increase) decrease in prepaid expenses and other current assets | (104) | 1,438 | |
Increase in accounts payable | 11,419 | 957 | |
Increase (decrease) in sundry payables and accrued expenses | 1,524 | (3,185) | |
Net change in other assets and liabilities | (3,263) | (5,028) | |
Net cash used in operating activities | (41,929) | (60,220) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (6,740) | (9,132) | |
Other investing activities | 33 | 2,923 | |
Net cash used in investing activities | (6,707) | (6,209) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of term loans | (3,938) | (3,853) | |
Net borrowings under revolving credit facilities | 51,437 | 80,962 | |
Net (repayments) borrowings of other debt and lease obligations | (3,531) | 1,985 | |
Purchase of treasury stock | (283) | — | |
Increase in overdraft balances | 93 | 191 | |
Dividends paid | (7,308) | (6,777) | |
Dividends paid to noncontrolling interest | (624) | — | |
Net cash provided by financing activities | 35,846 | 72,508 | |
Effect of exchange rate changes on cash | (34) | (229) | |
Net (decrease) increase in cash | (12,824) | 5,850 | |
CASH at beginning of period | 72,031 | 44,426 | |
CASH at end of period | $ 59,207 | $ 50,276 | |
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SOURCE Standard Motor Products, Inc.