Stoneridge Reports $7.2 Million Net Loss and 8.9% Decrease in Net Sales for Q1 2025

Stoneridge, Inc. reported a net loss of $7.2 million, or $(0.26) per diluted share, for the first quarter of 2025, reflecting a slight increase in losses compared to a net loss of $6.1 million, or $(0.22) per diluted share, in the same period last year. The company's net sales decreased by 8.9% to $217.9 million from $239.2 million in the prior year, primarily due to lower volumes in the North American and European commercial vehicle markets, as well as a decline in the North American automotive market. Despite the decrease in sales, gross margin improved to 21.2% from 20.2% year-over-year, driven by lower material costs and favorable foreign exchange variances.

The company's Control Devices segment experienced a 10.8% decline in net sales, attributed to reduced demand in the North American automotive market and the expected end-of-life production for an actuator product. Conversely, the Electronics segment saw a 10.0% decrease in sales, primarily due to lower production volumes in North America and Europe, although this was partially offset by increased sales from the recently launched MirrorEye OEM program. Stoneridge Brazil, however, reported a 16.8% increase in net sales, bolstered by higher OEM product sales despite unfavorable foreign currency translation impacts.

Operationally, Stoneridge incurred $2.8 million in business realignment costs during the quarter, primarily related to efficiency initiatives at its Juarez facility. The company also reported an increase in selling, general, and administrative expenses, which rose by $1.3 million compared to the previous year, largely due to higher business realignment costs. Research and development expenses increased slightly, reflecting ongoing investments in product development, particularly in the Electronics segment.

As of March 31, 2025, Stoneridge's cash and cash equivalents totaled $79.1 million, up from $71.8 million at the end of 2024. The company had $203.2 million in borrowings outstanding on its revolving credit facility, which remains in compliance with all covenants. Looking ahead, Stoneridge anticipates continued challenges in its end markets due to economic uncertainties and tariff impacts but remains focused on operational excellence and cost reduction strategies to improve margins. The company is optimistic about its long-term growth prospects, particularly in developing advanced vehicle intelligence and safety products.