Stoneridge, Inc. reported a net loss of $9.4 million, or $(0.34) per diluted share, for the third quarter of 2025, an increase from a net loss of $7.1 million, or $(0.26) per diluted share, in the same period last year. The company's net sales decreased by 1.7% to $210.3 million, down from $213.8 million in the prior year, primarily due to lower production volumes in the North American and European commercial vehicle markets, as well as a decline in the China automotive market. The decrease in sales was partially offset by increased sales in the European off-highway vehicle market and higher OEM product sales in Stoneridge Brazil.
In terms of operational performance, the Control Devices segment saw a 2.1% decline in net sales, attributed to reduced demand in the China and North American automotive markets. The Electronics segment experienced a 4.7% decrease in net sales, primarily due to lower production volumes in North America and Europe, although this was mitigated by favorable foreign currency translation effects. Conversely, Stoneridge Brazil's net sales increased by 29.7%, driven by higher OEM product sales. The overall gross margin for the quarter decreased to 20.3% from 20.8% in the previous year, reflecting lower contributions from the Electronics segment.
Stoneridge's selling, general, and administrative (SG&A) expenses rose by $5.1 million, largely due to increased professional services related to a strategic review of the Control Devices segment. Design and development costs decreased by $3.2 million, reflecting lower expenses in the Electronics segment. The company reported an operating loss of $3.3 million for the quarter, compared to an operating income of $315,000 in the prior year, primarily due to increased SG&A expenses and lower gross margins.
As of September 30, 2025, Stoneridge had cash and cash equivalents of $54.0 million, down from $71.8 million at the end of 2024. The company had $170.2 million in borrowings outstanding on its credit facility, which has been amended to provide certain covenant relief through November 2026. The company anticipates refinancing its credit facility before the end of 2025. Looking ahead, Stoneridge plans to focus on expanding its product portfolio and technology platforms, particularly in safety and vehicle intelligence, while navigating challenges posed by global trade tensions and fluctuating market conditions.
The company remains cautious about the impact of tariffs and geopolitical risks on its operations, particularly in relation to its manufacturing in Mexico and Brazil. Stoneridge expects continued volatility in its end markets and is committed to operational excellence and cost reduction strategies to improve margins and cash flow. The outlook for 2025 includes anticipated lower sales in the automotive market, but the company is optimistic about growth opportunities in its Electronics segment, particularly with the ongoing launch of its MirrorEye programs in North America and Europe.
About STONERIDGE INC
Stoneridge Inc. is a global supplier of electronic systems and components for the automotive, commercial, off-highway, and agricultural vehicle markets. Its core offerings include sensors, actuators, control modules, vision systems, telematics, and security devices. Serving OEMs and aftermarket channels worldwide, the company focuses on innovative, embedded electronic products that enhance vehicle safety, performance, and connectivity, leveraging a diversified, technology-driven business model.
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