Standard Motor Products Reports 26.7% Revenue Growth to $493.9 Million in Latest Quarter

Standard Motor Products, Inc. (SMP) reported significant financial growth in its latest quarterly results, with consolidated net sales reaching $493.9 million for the three months ended June 30, 2025, a 26.7% increase from $389.8 million in the same period last year. The company's gross profit also rose to $150.9 million, up from $111.4 million, reflecting a gross margin percentage increase to 30.6% from 28.6%. Operating income for the quarter was $42.8 million, compared to $25 million in the prior year, indicating a strong operational performance driven by higher sales volumes and improved cost management.

The increase in revenue was attributed to several factors, including the addition of $90.5 million in sales from the newly acquired Nissens Automotive segment, which specializes in thermal management and engine efficiency products. Additionally, SMP experienced heightened demand across its Vehicle Control and Temperature Control segments, partly due to favorable weather conditions in the U.S. However, the Engineered Solutions segment saw a decline in sales, attributed to softer market conditions. For the six months ended June 30, 2025, net sales totaled $907.2 million, a 25.8% increase from $721.2 million in the same period of 2024.

SMP's operational metrics showed a positive trend, with selling, general, and administrative expenses rising to $107.5 million, or 21.8% of net sales, compared to $83.9 million, or 21.5% of net sales, in the previous year. The increase was primarily due to expenses associated with the Nissens Automotive acquisition. The company also reported restructuring expenses of $0.6 million for the quarter, down from $2.6 million in the prior year, as it continues to optimize its cost structure through various initiatives.

Looking ahead, SMP remains optimistic about its growth trajectory, particularly with the integration of Nissens Automotive and the potential for revenue synergies. The company is also focused on managing the impacts of recent U.S. trade policies and tariffs, which have affected its cost structure. Despite these challenges, SMP anticipates that its diverse global footprint and ongoing cost-saving measures will help mitigate adverse effects and support continued profitability. The company plans to maintain its quarterly dividend, which was recently increased to $0.31 per share, reflecting its commitment to returning value to shareholders while investing in future growth.