Stoneridge Reports $16.5 Million Net Loss and 6.9% Decrease in Sales for Fiscal Year 2024

Stoneridge, Inc. reported a net loss of $16.5 million, or $(0.60) per diluted share, for the fiscal year ending December 31, 2024, a significant increase from the net loss of $5.2 million, or $(0.19) per diluted share, in 2023. The company's net sales decreased by $67.5 million, or 6.9%, to $908.3 million, primarily due to lower customer demand across most markets. The decrease in sales was particularly pronounced in the Control Devices segment, which saw a 14.5% decline, attributed to reduced activity in the North American automotive market and the end of life for certain programs. The Electronics segment experienced a smaller decline of 1.8%, while Stoneridge Brazil's sales fell by 13.2%, impacted by unfavorable foreign currency translation and lower OEM product sales.

In terms of operational developments, Stoneridge has continued to focus on enhancing its product portfolio, with smart products now accounting for nearly 82% of sales, up from just over 50% in 2014. The company has made strategic investments, including the launch of the MirrorEye camera monitor system in Europe and North America, which contributed positively to sales in the Electronics segment. The company also reported a significant increase in cash provided by operating activities, which rose to $47.7 million, driven by reduced working capital levels, particularly in inventory management.

Stoneridge's workforce comprised approximately 4,450 employees as of December 31, 2024, with about 85% located outside the United States. The company has been actively managing its cost structure, resulting in a slight increase in selling, general, and administrative expenses due to higher self-insured medical costs and legal fees. However, the company has also implemented cost reduction measures, including a focus on material cost improvements and structural cost reductions, which helped mitigate some of the adverse impacts of lower sales levels.

Looking ahead, Stoneridge anticipates continued challenges in 2025, particularly in the North American automotive market, which is projected to see a slight decrease in production volumes. The company plans to focus on drivetrain agnostic technologies and further develop its product offerings to align with industry megatrends, such as electrification and connectivity. Additionally, the company is preparing for potential impacts from proposed tariffs on imports from Mexico and China, which could affect its cost structure and pricing strategies. Overall, Stoneridge aims to enhance operational efficiency and improve cash generation while navigating the evolving market landscape.