Standard Motor Products, Inc. Releases Second Quarter 2025 Results and Quarterly Dividend
Second quarter net sales of $493.9 million up 26.7%, and up 3.5% excluding Nissens
Second quarter adjusted EBITDA margin increased 190 basis points to 12.0%
Adjusted Q2 diluted earnings per share of $1.29 increased 31.6% from last year
Raising full-year sales guidance to low 20's percent growth range, including Nissens, reflecting strong first half results
NEW YORK, Aug. 5, 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 six months ended June 30, 2025.
Net sales for the second quarter of 2025 were $493.9 million, compared to consolidated net sales of $389.8 million during the same quarter in 2024. Earnings from continuing operations for the second quarter of 2025 were $26.3 million or $1.17 per diluted share, compared to earnings of $18.0 million or $0.81 per diluted share in the second 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 second quarter of 2025 were $28.9 million or $1.29 per diluted share, compared to $21.7 million or $0.98 per diluted share in the second quarter of 2024.
Consolidated net sales for the six months ended June 30, 2025, were $907.2 million, compared to consolidated net sales of $721.2 million during the comparable period in 2024. Earnings from continuing operations for the six months ended June 30, 2025, were $40 million or $1.79 per diluted share, compared to $27.8 million or $1.25 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 six months ended June 30, 2025 and 2024 were $46.9 million or $2.10 per diluted share and $31.7 million or $1.42 per diluted share, respectively.
Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are very pleased with our strong second quarter results, especially following our record quarter last year. Sales for the quarter increased nearly 27%, or 3.5% excluding the impact of Nissens Automotive (Nissens). This reflects an ongoing trend, as year-to-date we are up 26%, or 4.1% excluding Nissens. Additionally, adjusted diluted earnings per share grew 31.6% for the quarter and 47.9% for the year."
Segment Highlights
North American Aftermarket Segments
Vehicle Control sales rose nearly 7% in the second quarter, continuing the momentum from the first quarter. Strong customer order activity and solid sell-through underscore the non-discretionary nature of our products.
Temperature Control sales increased 5.5%, despite a challenging comparison to last year's 28% second-quarter growth. We believe this year's early pre-season orders positioned our customers well for the start of the selling season. Year-to-date, the segment is up 12.3%, building on last year's 15.8% growth for the same period.
NissensOur newest segment, Nissens, posted another solid quarter as it contributed sales of $90.5 million, with an adjusted EBITDA margin of 18.0%, ahead of our full-year expectations of mid-teens. Nissens continues to outperform in its markets and is enjoying some of the same weather-related tailwinds as in the U.S.
Eight months into the acquisition, integration efforts are in full stride with many initiatives tracking ahead of plan. We remain very confident in achieving our initial target of $8-12 million in run-rate cost reduction synergies within 24 months of ownership. Additionally, we have now begun implementing growth synergies, launching over 800 new items in North America.
Engineered SolutionsSales in the Engineered Solutions segment declined 8.3% year-over-year, reflecting continued softness in certain end markets. While we expect general weakness to continue in the near term, we believe demand has stabilized, and second half comparisons become easier.
Profitability & Balance SheetAdjusted EBITDA increased to $59.1 million, up from $39.5 million last year, driven by strong performance in our North American aftermarket segments as well as the $16.3 million contributed from Nissens. Adjusted EBITDA margin climbed 190 basis points to 12.0%, due to the higher rate of Nissens, leverage on the solid sales from our North American aftermarket segments, and ongoing cost containment actions. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.
From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $577.8 million, primarily reflecting additional borrowings related to our Nissens acquisition and seasonal working capital build. Our debt leverage declined in the quarter on the strength of our results, and we continue to target getting debt levels to 2.0x Adjusted EBITDA by the end of 2026.
New Distribution CenterDuring the quarter, we officially opened our new 575,000 square foot state-of-the-art distribution center (DC) in Shawnee, Kansas. This facility increases our total distribution footprint by over 200,000 net square feet, and provides a centralized location that offers coverage across the United States. The Shawnee facility will enhance our overall distribution capabilities and better serve our customers' increasing fulfillment needs. We will be ramping up over the balance of the year and intend to exit the Edwardsville DC by year-end and sell the facility thereafter.
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 lastly from pass-through pricing to our customers. As there is a timing delay between costs incurred and pass-throughs to customers, we did experience some tariff costs in the second quarter without the offsetting pricing. We expect ongoing costs to be offset with pricing going forward. 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-20's percent range, up from our prior mid-teens expectation, and we reaffirm our adjusted EBITDA margin outlook of 10-11%. Note that our revised guidance now includes the impact of tariffs as they stand as of the end of the second 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 reaffirm 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 September 2, 2025, to stockholders of record on August 15, 2025.
Closing RemarksIn closing, Mr. Sills commented, "The first half of 2025 exceeded our expectations despite the volatile macroeconomic environment. Our North American aftermarket segments delivered the strongest first half in our history, demonstrating the strength of our market position and the resilience of our industry. Nissens continued to deliver an above market growth rate and holds a market leading position in Europe, supported by the same favorable dynamics we see in the North American aftermarket. We are excited about our future path and remain optimistic about our long-term potential, led by growth and savings synergies with Nissens, along with our ongoing efforts to gain efficiencies and savings across our operations. 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 Tuesday, August 5, 2025. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q2'25 Earnings Call Webcast link. Investors may also listen to the call by dialing 800-343-4136 (domestic) or 203-518-9843 (international). The conference call ID code is SMP2Q2025. 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 800-759-0728 (domestic) or 402-220-7229 (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 EndedJune 30,
Six Months EndedJune 30,
(In thousands, except share and per share data, unaudited)
2025
2024
2025
2024
Net sales
$ 493,853
$ 389,829
$ 907,232
$ 721,232
Cost of sales
342,964
278,382
631,621
520,263
Gross profit
150,889
111,447
275,611
200,969
Selling, general and administrative expenses
107,520
83,885
207,365
158,618
Restructuring expenses
582
2,559
1,255
2,751
Other income (expense), net
49
(17)
307
5
Operating income
42,836
24,986
67,298
39,605
Other non-operating income, net
1,875
2,199
4,123
3,018
Interest expense
8,295
2,752
16,056
4,819
Earnings from continuing operations before income taxes
36,416
24,433
55,365
37,804
Provision for income taxes
9,821
6,109
14,890
9,451
Earnings from continuing operations
26,595
18,324
40,475
28,353
Loss from discontinued operations, net of income taxes
(1,058)
(917)
(2,197)
(1,956)
Net earnings
25,537
17,407
38,278
26,397
Net earnings attributable to noncontrolling interest
295
344
470
510
Net earnings attributable to SMP
$ 25,242
$ 17,063
$ 37,808
$ 25,887
Net earnings (loss) attributable to SMP
Continuing operations
$ 26,300
$ 17,980
$ 40,005
$ 27,843
Discontinued operations
(1,058)
(917)
(2,197)
(1,956)
Net earnings attributable to SMP
$ 25,242
$ 17,063
$ 37,808
$ 25,887
Per common share data
Basic:
Continuing operations
$ 1.20
$ 0.83
$ 1.82
$ 1.27
Discontinued operations
(0.05)
(0.05)
(0.10)
(0.09)
Net earnings attributable to SMP per common share
$ 1.15
$ 0.78
$ 1.72
$ 1.18
Diluted:
Continuing operations
$ 1.17
$ 0.81
$ 1.79
$ 1.25
Discontinued operations
(0.04)
(0.04)
(0.10)
(0.09)
Net earnings attributable to SMP per common share
$ 1.13
$ 0.77
$ 1.69
$ 1.16
Dividend declared per common share
$ 0.31
$ 0.29
$ 0.62
$ 0.58
Weighted average number of common shares, basic
21,984,492
21,767,526
21,935,921
21,845,678
Weighted average number of common shares, diluted
22,423,208
22,185,536
22,359,693
22,277,590
Standard Motor Products, Inc.Segment Revenues
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands, unaudited)
2025
2024
2025
2024
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)
$ 128,233
$ 115,529
$ 246,599
$ 231,614
Electrical and Safety
56,828
57,128
115,147
109,535
Wire Sets and Other
16,638
16,084
32,295
33,116
Total Vehicle Control
201,699
188,741
394,041
374,265
Temperature Control
AC System Components
104,777
99,970
171,968
149,930
Other Thermal Components
26,588
24,511
48,280
46,159
Total Temperature Control
131,365
124,481
220,248
196,089
Nissens Automotive
Air Conditioning
40,441
—
67,607
—
Engine Cooling
35,082
—
62,855
—
Engine Efficiency
15,014
—
26,257
—
Total Nissens Automotive
90,537
—
156,719
—
Engineered Solutions
Light Vehicle
21,780
24,686
43,184
46,489
Commercial Vehicle
21,836
23,483
40,441
46,391
Construction/Agriculture
9,584
9,473
18,992
19,549
All Other
17,052
18,965
33,607
38,449
Total Engineered Solutions
70,252
76,607
136,224
150,878
Total
$ 493,853
$ 389,829
$ 907,232
$ 721,232
Standard Motor Products, Inc
Segment Operating Profit
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands, unaudited; percentage of net sales)
2025
2024
2025
2024
Gross Margin
Vehicle Control
$ 60,648
30.1 %
$ 59,969
31.8 %
$ 122,809
31.2 %
$ 118,868
31.8 %
Temperature Control
42,363
32.2 %
36,609
29.4 %
69,961
31.8 %
56,298
28.7 %
Nissens Automotive
36,815
40.7 %
—
— %
64,653
41.3 %
—
— %
Engineered Solutions
12,689
18.1 %
14,869
19.4 %
24,398
17.9 %
25,803
17.1 %
All Other
—
—
—
—
Subtotal
$ 152,515
30.9 %
$ 111,447
28.6 %
$ 281,821
31.1 %
$ 200,969
27.9 %
Acquisition & Integration Expenses
(1,626)
-0.3 %
—
— %
(6,210)
-0.7 %
—
— %
Gross Margin
$ 150,889
30.6 %
$ 111,447
28.6 %
$ 275,611
30.4 %
$ 200,969
27.9 %
Selling, General & Administrative
Vehicle Control
$ 43,564
21.6 %
