Wed, Apr 30, 9:23 PM (11 days ago)
**Stoneridge, Inc. (SRI) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** - **Revenue:** $217.9 million, down 8.9% YoY due to lower volumes in North American and European commercial vehicle markets and end-of-life production for an actuator product. - **Profit Margins:** Gross margin increased to 21.2% from 20.2% YoY, driven by lower material costs and favorable foreign exchange variances. - **Net Loss:** $7.2 million, or $(0.26) per share, up from $6.1 million, or $(0.22) per share, in Q1 2024. - **Cash Flow:** Positive operating cash flow of $10.9 million, up from $9.1 million in Q1 2024, due to improved working capital management. - **Earnings Changes:** Net loss increased by $1.1 million YoY, primarily due to lower sales and higher business realignment costs. **Segment Performance:** - **Control Devices:** Net sales down 10.8% YoY, with lower sales in North American automotive and off-highway markets. Gross margin decreased due to lower sales contribution. - **Electronics:** Net sales down 10.0% YoY, with lower volumes in North American and European commercial vehicle markets. Gross margin increased due to lower material costs. - **Stoneridge Brazil:** Net sales up 16.8% YoY, driven by higher OEM product sales. Operating income increased due to higher sales contribution. **Trends and Uncertainties:** - **Tariffs and Trade:** The company faces uncertainties due to additional tariffs and global trade disputes, which may impact sales and costs. - **Market Volatility:** The North American automotive market is expected to decrease in 2025, while the European and North American commercial vehicle markets show mixed forecasts. - **Currency Fluctuations:** Foreign currency exchange rates continue to impact results, with a strengthening U.S. dollar affecting Brazilian operations and a weakening dollar benefiting Swedish operations. **Future Operations and Impact:** - **Cost Reduction:** The company is focusing on operational excellence and enterprise-wide cost reduction to drive margin improvement. - **Product Development:** Continued investment in safety, vehicle intelligence, and connectivity-based products, such as OEM MirrorEye programs and next-generation tachographs. - **Credit Facility:** The company has a $275 million revolving credit facility, with $203.2 million outstanding at Q1 2025. The facility provides liquidity for operations and capital expenditures. **Outlook:** - **Revenue Growth:** The company expects to outperform forecasted changes in production volumes due to strong demand for existing products and ongoing launches. - **Operational Efficiency:** Continued focus on inventory reduction and operational execution to improve cash position and reduce leverage. - **Tax Rate:** The future effective tax rate will depend on various factors, including changes in tax laws and jurisdictional mix of earnings.