Superior Industries Reports Modest Sales Increase but Significant Net Loss in Q1 2025

Superior Industries International, Inc. reported its financial results for the first quarter of 2025, revealing a modest increase in net sales but a significant net loss. The company generated net sales of $321.6 million, up from $316.3 million in the same period last year, marking a 1.7% increase. However, the gross profit decreased to $16.1 million from $21.1 million, resulting in a gross profit margin of 5.0%, down from 6.7%. The net loss for the quarter was $12.9 million, or $0.92 per diluted share, an improvement from a net loss of $32.7 million, or $1.52 per diluted share, in the prior year.

The financial performance reflects several operational challenges, including increased costs of sales, which rose to $305.5 million from $295.1 million. Selling, general, and administrative expenses also decreased to $15.5 million from $20.8 million, contributing to a slight improvement in operating income, which was $622,000 compared to $314,000 in the previous year. The company attributed the changes in financial performance to fluctuations in aluminum prices, customer demand, and operational efficiencies.

In terms of strategic developments, Superior Industries faced significant customer resourcing actions, with key customers in North America indicating plans to shift their business to other suppliers. These customers accounted for approximately 40% of the company's consolidated net sales in 2024. The company is currently evaluating the potential impact of these changes on its inventory and asset values, anticipating possible impairment charges in the second quarter of 2025. Additionally, the company has engaged financial advisors to explore options for improving liquidity and operational performance.

Operationally, the company reported a total employee headcount of 29,474,394 shares outstanding as of May 8, 2025. The North American segment saw net sales increase by 5.3% to $203.7 million, while the European segment experienced a decline of 4.0% to $117.9 million. The company’s cash and cash equivalents increased to $54.5 million from $40.1 million at the end of the previous fiscal year, and net cash provided by operating activities rose significantly to $23.5 million from $3.5 million.

Looking ahead, Superior Industries expressed concerns regarding its ability to meet financial obligations and maintain liquidity, particularly in light of the recent customer actions and the suspension of its factoring arrangements. The company is actively seeking additional funding sources and is considering various strategic options, including potential asset sales. The outlook remains uncertain, with management indicating that substantial doubt exists about the company's ability to continue as a going concern over the next twelve months without successful implementation of its liquidity improvement plans.