Stoneridge Reports $9.4 Million Net Loss in Q2 2025 Amid Declining Sales

Stoneridge, Inc. reported a net loss of $9.4 million, or $(0.34) per diluted share, for the second quarter of 2025, a significant decline from a net income of $2.8 million, or $0.10 per diluted share, in the same period last year. The company's net sales decreased by 3.8% to $227.9 million, down from $237.1 million in the prior year, primarily due to lower volumes in the North American automotive market and reduced sales in the commercial vehicle and off-highway markets in Europe. The gross margin also fell to 21.5% from 22.7%, attributed to a less favorable sales mix and increased material costs.

In comparison to the previous fiscal period, Stoneridge's financial performance showed a marked deterioration. The Control Devices segment experienced an 11.9% decline in net sales, largely due to decreased demand in the North American automotive market, including the end-of-life production of a specific actuator product. The Electronics segment's sales fell by 1.9%, impacted by lower production volumes in North America and Europe, although this was partially offset by increased sales from the European commercial vehicle market and the ramp-up of the MirrorEye® OEM program. Conversely, the Stoneridge Brazil segment saw a 27.6% increase in net sales, driven by higher OEM product sales.

Operationally, Stoneridge's total assets increased to $639.4 million as of June 30, 2025, compared to $621.6 million at the end of 2024. The company reported a cash and cash equivalents balance of $49.8 million, down from $71.8 million, primarily due to repayments on its revolving credit facility. The company’s total liabilities decreased to $394.9 million from $376.3 million, reflecting a reduction in long-term liabilities. The employee headcount remained stable, with no significant changes reported.

Looking ahead, Stoneridge anticipates continued challenges in its end markets, particularly in North America, where automotive production is expected to decline. The company is focusing on expanding its product portfolio and technology platforms, particularly in safety and vehicle intelligence. Stoneridge has received new OEM program awards in both its Electronics and Stoneridge Brazil segments, which it believes will contribute positively to future growth. However, the company remains cautious about the potential impacts of tariffs and global trade tensions on its operations and financial performance.