Stoneridge Reports $27.9 Million Net Loss Despite 7.9% Increase in Net Sales

Stoneridge, Inc. reported a net loss of $27.9 million, or $(1.00) per diluted share, for the first quarter of 2026, a significant increase from a net loss of $7.2 million, or $(0.26) per diluted share, in the same period last year. The company's net sales rose to $160.8 million, up 7.9% from $149.1 million in the first quarter of 2025. This increase was attributed to favorable foreign currency translation, higher sales from the Mexico Manufacturing Agreement following the sale of the Control Devices segment, and increased sales of the MirrorEye system. However, these gains were offset by decreased product sales in the European and North American commercial vehicle markets, particularly for the Smart 2 tachograph.

The company's operating loss for the quarter was $9.0 million, compared to a loss of $4.3 million in the prior year. The gross margin decreased to 21.7% from 23.6%, primarily due to higher direct material costs and an unfavorable sales mix. Selling, general, and administrative (SG&A) expenses increased by $6.7 million, driven by higher share-based compensation and legal expenses. Research and development (R&D) costs decreased by $2.3 million, reflecting higher customer reimbursements in the Electronics segment.

Stoneridge's strategic focus has shifted following the sale of its Control Devices segment on January 30, 2026, which is now classified as discontinued operations. The company now operates in two segments: Electronics and Stoneridge Brazil. The Electronics segment reported net sales of $144.8 million, a 7.5% increase from the previous year, while Stoneridge Brazil's sales rose by 12.1% to $16.0 million, benefiting from favorable foreign currency translation and higher OEM product sales.

Operationally, Stoneridge's cash and cash equivalents increased to $70.5 million as of March 31, 2026, up from $53.1 million at the end of 2025. The company reduced its borrowings under its revolving credit facility to $156.5 million from $180.9 million. Looking ahead, Stoneridge anticipates continued growth in its Electronics segment, particularly in vision and safety systems, while also addressing rising material and labor costs through various mitigation strategies. The company remains cautious about potential impacts from tariffs and supply chain challenges but is optimistic about its long-term growth prospects in the commercial vehicle and off-highway markets.