STONERIDGE INC
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
SRI$4.99+4.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001043337-26-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001043337-26-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 124 current paragraphs.
49 unchanged; 45 reworded; 19 added; 4 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 6 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Second Quarter Overview
Current report
Our Electronics segment net sales increased by 12.8% compared to the second quarter of 2025 primarily due to an increase in our North American commercial vehicle market and higher sales of $7.1 million resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices. Additionally, sales were impacted by favorable euro and Swedish krona foreign currency translation. Segment gross margin decreased compared to the second quarter of 2025 from higher direct material costs due to adverse foreign currency losses and excess inventory charges as well as adverse sales mix from lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025. Operating income for the segment increased compared to the second quarter of 2025 because of lower SG&A expense from lower royalties and professional services and lower D&D from lower business realignment costs and higher customer reimbursements.
Current report
Our Stoneridge Brazil segment net sales increased by 37.6% compared to the second quarter of 2025 primarily from higher OEM product sales including the sales from the launch of an infotainment product and favorable foreign currency translation. Segment gross margin increased due to favorable variances from U.S. denominated material purchases and higher contribution from higher sales levels. Operating income increased due to favorable variances from U.S. dollar denominated material purchases and higher contribution from higher sales levels. Offsetting these favorable variances was an increase in SG&A expense from higher incentive compensation and selling costs reduced by a favorable Brazilian indirect tax claim settlement.
Current report
Our Electronics segment net sales increased $18.2 million because of an increase in our North American commercial vehicle market of $10.0 million including higher MirrorEye system sales and $7.1 million resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices as well as favorable euro and Swedish krona foreign currency translation of $2.6 million. These increases were partially offset by decreases in our China commercial vehicle and North American off-highway markets of $1.0 million and $0.7 million, respectively.
Current report
Our Stoneridge Brazil segment net sales increased $5.6 million from higher OEM product sales of $4.4 million including sales from the launch of an infotainment product and favorable foreign currency translation of $1.8 million.
Current report
The increase in net sales in Europe and Other was due to higher European off-highway sales of $0.7 million and favorable foreign currency translation of $2.6 million offset by lower commercial vehicle sales of $1.4 million including lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025.
Current report
Our Electronics segment gross margin decreased compared to the prior year second quarter from higher material costs due to unfavorable foreign exchange material variances and excess inventory charges as well as adverse sales mix from lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025 partially offset by favorable leverage of fixed costs from higher sales levels.
Current report
Selling, General and Administrative. SG&A expenses increased by $0.4 million primarily because of higher incentive compensation and legal expenses offset by a favorable Brazilian indirect tax claim settlement.
Current report
Our Electronics segment operating income increased because of reductions in D&D from lower business realignment costs and higher customer reimbursements and in SG&A from lower royalties and professional services. These increases were offset by lower gross margin from higher material costs due to unfavorable foreign exchange material variances and excess inventory charges as well as adverse sales mix from lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025.
Current report
Our Stoneridge Brazil segment operating income increased due to favorable variances from U.S. dollar denominated material purchases andhigher contribution from higher sales levels. Offsetting these favorable variances was an increase in SG&A expense from higher incentive compensation and selling costs offset by a favorable Brazilian indirect tax claim settlement.
Current report
Our North American operating loss improved due to higher gross margin from higher sales levels and lower D&D from lower business realignment expense offset by higher SG&A from higher incentive compensation and legal expense. Operating income in South America increased from higher gross margin from favorable variances from U.S. dollar denominated material purchases and favorable leverage of fixed costs from higher sales levels offset by higher SG&A from higher incentive compensation and selling expenses. Our operating results in Europe and Other decreased because of lower margin from higher material costs due to unfavorable foreign exchange material variances offset by lower D&D expense from higher customer reimbursements.
Current report
Equity in Earnings of Investee. Equity earnings for Autotech Fund II was $(0.2) million and $(0.1) million for the three months ended June 30, 2026 and 2025, respectively.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
Our Stoneridge Brazil segment net sales increased $7.3 million from higher OEM product sales of $4.8 million including sales from the second quarter launch of an infotainment product and favorable foreign currency translation of $3.4 million.
Current report
The increase in North American net sales was due to higher production volumes in our commercial vehicle market of $11.1 million including higher MirrorEye system sales and sales of $10.9 million from the Mexico Manufacturing Agreement related to the sale of Control Devices.
Current report
The increase in net sales in South America was from higher OEM product sales of $4.7 million including sales from the second quarter launch of an infotainment product and favorable foreign currency translation of $3.4 million.
Current report
Cost of Goods Sold and Gross Margin. Cost of goods sold increased compared to the six months ended June 30, 2025 and our gross margin decreased to 21.0% in 2026 from 23.4% in the first six months 2025. Our material cost as a percentage of net sales increased from 56.5% in the first six months of 2025 to 58.0% in the first six months of 2026. The increase in material cost percentage was due to unfavorable sales mix in our Electronics segment from unfavorable foreign exchange variances and excess inventory charges as well as adverse sales mix from lower Smart 2 tachograph sales from the end of a regulatory retrofit campaign in 2025 offset by a benefit from the Mexico Manufacturing Agreement because under this contract manufacturing agreement only direct labor and overhead expenses are recognized. Overhead as a percentage of net sales was 16.2% and 16.4% for the first six months of 2026 and 2025, respectively. The decrease in overhead as a percentage of sales was attributable to favorable leverage of fixed costs from higher sales levels and lower business realignment costs in our Electronics segment mostly offset by the impact of the Mexico Manufacturing Agreement spend.
Current report
Design and Development. D&D costs decreased by $5.2 million primarily related to our Electronics segment as a result of higher customer reimbursements, lower business realignment costs and non-capital tooling expenses.
Current report
Our Credit Facility matures on July 1, 2027, which is within twelve months of the issuance of the accompanying unaudited condensed consolidated financial statements, and will become current in the third quarter of 2026. The Company expects to refinance its Credit Facility. While there can be no assurance that the Company will refinance the current Credit Facility, the Company anticipates that the refinancing will occur prior to the issuance of the financial statements for the year ending December 31, 2026. The Company’s ability to continue as a going concern is contingent upon its ability to refinance its Credit Facility.
Removed paragraphs (4)
Previous report
First Quarter Overview
Previous report
Our Electronics segment net sales increased by 7.5% compared to the first quarter of 2025 primarily due to favorable euro and Swedish krona foreign currency translation, higher MirrorEye system sales and higher sales of $3.8 million resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices. These increases were offset by a decrease in product sales to the European and North American commercial vehicle markets including lower sales for the Smart 2 tachograph product. Segment gross margin decreased compared to the first quarterof 2025 from higher direct material costs as a percentage of sales from unfavorable sales mix and higher direct labor costs slightly offset by lower overhead spending including tariff recoveries and lower business realignment costs. Operating income for the segment decreased compared to the first quarter of 2025 because of lower gross profit and higher SG&A expense from higher wages and business realignment costs offset by lower D&D from higher customer reimbursements.
Previous report
Our Stoneridge Brazil segment net sales increased by 12.1% compared to the first quarter of 2025 primarily from favorable foreign currency translation and higher OEM product sales. Operating income increased due tofavorable variances from U.S. dollar denominated purchases and higher contribution from higher sales levels offset by higher SG&A from higher incentive compensation and Brazilian indirect taxes.
Previous report
Our Stoneridge Brazil segment net sales increased $1.7 million from favorable foreign currency translation and higher OEM product sales.
Reworded paragraphs (45)
Previous wording
We are a global supplier of safe and efficient electronics systems and technologies. Our systems and products power vehicle intelligence, while enabling safety and security for global commercial, off-highway, automotive and agricultural vehicle markets.
Current wording
We are a global supplier of safe and efficient electronics systems and technologies. Our systems and products power vehicle intelligence, while enabling safety and security for global commercial, off-highway and agricultural vehicle markets.
Previous wording
On December 31, 2025, we conducted our business in three reportable business segments, which were the same as our three operating segments: Control Devices, Electronics and Stoneridge Brazil. In January 2026, we completed the sale of the Control Devices segment, which is reflected as discontinued operations in all periods presented. As a result, we now operate our business in two reportable business segments, which are the same as our two operating segments.
Current wording
In January 2026, we completed the sale of the Control Devices segment, which is reflected as discontinued operations in all periods presented. As a result, we now operate our business in two reportable business segments, which are the same as our two operating segments.
Previous wording
The Company had net loss from continuing operations of $14.8 million, or $(0.53) per diluted share, for the three months ended March 31, 2026.
Current wording
The Company had net loss from continuing operations of $5.3 million, or $(0.19) per diluted share, for the three months ended June 30, 2026.
Previous wording
Net loss from continuing operations for the quarter ended March 31, 2026 increased by $6.8 million, or $(0.24) per diluted share, from net loss from continuing operations of $8.0 million, or $(0.29) per diluted share, for the three months ended March 31, 2025. Net sales increased by $11.8 million, or 7.9%, compared to the three months ended March 31, 2025, from the favorable impact of foreign currency translation, higher sales resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices, and higher MirrorEye system sales. These increases were offset by a decrease in product sales to the European and North American commercial vehicle markets including lower sales for the Smart 2 tachograph due to the end of a regulatory retrofit campaign in 2025. Gross margin for the quarter ended March 31, 2026 decreased to 21.7% from 23.6% for the three months ended March 31, 2025 due tohigher direct material costs in our Electronics segment from adverse sales mix and higher direct material labor costs. SG&A expense increased primarily due to higher share-based compensation expense from the retirement related accelerated vesting, Brazilian indirect taxes and higher legal expenses, which were offset by lower D&D expense from higher customer reimbursements in our Electronics segment. In addition, non-operating foreign currency losses unfavorably impacted results for the quarter ending March 31, 2026.
Current wording
Net loss from continuing operations for the quarter ended June 30, 2026 decreased by $5.9 million, or $0.21 per diluted share, from net loss from continuing operations of $11.1 million, or $(0.40) per diluted share, for the three months ended June 30, 2025. Net sales increased by $23.8 million, or 15.1%, compared to the three months ended June 30, 2025, due to increased sales volumes in our North American vehicle market and higher sales resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices and higher Brazilian OEM sales from the launch of an infotainment product. Gross margin for the quarter ended June 30, 2026 decreased to 20.3% from 23.1% for the three months ended June 30, 2025 from higher direct material costs as a percentage of sales due to adverse foreign currency losses and excess inventory charges as well as adverse sales mix from lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025 in our Electronics segment. SG&A expense increased primarily due to higher incentive compensation and legal expenses, which were offset by lower D&D expense from 2025 business realignment costs and higher customer reimbursements in our Electronics segment. In addition, non-operating foreign currency gains favorably impacted results for the quarter ended June 30, 2026.
Previous wording
In the first quarter of 2026, SG&A expenses increased by $6.7 million compared to the first quarter of 2025 driven primarily because of higher share-based compensation from retirement related accelerated vesting, Brazilian indirect taxes and higher legal expenses.
Current wording
In the second quarter of 2026, SG&A expenses increased by $0.4 million compared to the second quarter of 2025 primarily because of higher incentive compensation and legal costs offset by a favorable Brazilian indirect tax claim settlement.
Previous wording
In the first quarter of 2026, D&D costs decreased by $2.3 million compared to the prior year first quarter in our Electronics segment as a result of higher customer reimbursements.
Current wording
In the second quarter of 2026, D&D costs decreased by $2.9 million compared to the prior year second quarter primarily in our Electronics segment because of lower business realignment costs and higher customer reimbursements.
Previous wording
At March 31, 2026 and December 31, 2025, we had cash and cash equivalents balances primarily held at our foreign locations of $70.5 million and $53.1 million, respectively, and we had $156.5 million and $180.9 million, respectively, in borrowings outstanding on our Credit Facility. The 2026 decrease in Credit Facility borrowings and the increase in cash and cash equivalents was mostly due to proceeds received from the sale of Control Devices.
Current wording
At June 30, 2026 and December 31, 2025, we had cash and cash equivalents balances primarily held at our foreign locations of $71.5 million and $53.1 million, respectively, and we had $151.1 million and $180.9 million, respectively, in borrowings outstanding on our Credit Facility. The 2026 decrease in Credit Facility borrowings and the increase in cash and cash equivalents was mostly due to proceeds received from the sale of Control Devices.
Previous wording
Stoneridge's remaining portfolio, after the sale of the Control Devices business, will be focused on technology solutions primarily for the global commercial vehicle and off-highway end markets. More specifically, Stoneridge will serve three primary product categories: vision and safety, connectivity, and vehicle intelligence and electronic controls, each with their own significant growth opportunities. We expect continued expansion of our vision and safety systems, including MirrorEye® and adjacent products and advanced technologies, through maturity of our existing products and the introduction of new products to the market, including our connected trailer and surround-view capabilities. As we continue to invest in these capabilities, we have generated a comprehensive technology roadmap that we expect will both enhance and expand on our existing products and bring new products and technologies to the market. We expect this will drive growth that significantly outpaces our weighted-average end markets resulting in shareholder value creation.
Current wording
Stoneridge's portfolio, after the sale of the Control Devices business, is focused on technology solutions primarily for the global commercial vehicle and off-highway end markets. More specifically, Stoneridge serves three primary product categories: vision and safety, connectivity, and vehicle intelligence and electronic controls, each with their own significant growth opportunities. We expect continued expansion of our vision and safety systems, including MirrorEye® and adjacent products and advanced technologies, through maturity of our existing products and the introduction of new products to the market, including our connected trailer and surround-view capabilities. As we continue to invest in these capabilities, we have generated a comprehensive technology roadmap that we expect will both enhance and expand on our existing products and bring new products and technologies to the market. We expect this will drive growth that significantly outpaces our weighted-average end markets resulting in shareholder value creation.
Previous wording
Our financial performance has been affected by increasing costs of materials, labor, and other inputs used to manufacture and sell our products, including higher costs for memory and other semiconductor components. To minimize the impact of these incremental costs, we continue to take mitigation actions, including negotiating price increases and cost recoveries with our customers, improving manufacturing performance and optimizing our global cost structure to both reduce costs and improve operational efficiency. While we expect these actions will contribute to improved financial performance by offsetting cost pressures, there can be no assurance that our mitigation efforts will fully offset the impact of these cost increases.
Current wording
Our financial performance has been affected by increasing costs of materials, labor, and other inputs used to manufacture and sell our products, including higher costs for memory and other semiconductor components. To minimize the impact of these incremental costs, we continue to take mitigation actions, including negotiating price increases and cost recoveries with our customers, improving manufacturing performance and optimizing our global cost structure to both reduce costs and improve operational efficiency. While we expect these actions will benefit financial performance by offsetting cost pressures, there can be no assurance that our mitigation efforts will fully offset the impact of these cost increases.
Previous wording
Based on IHS Markit production forecasts, in 2026 the European and North American commercial vehicle end market volumes are forecasted to increase 1.2% and 3.4%, respectively. Over the long-term, we expect our Electronics’ segment sales to continue to outperform forecasted changes in production volumes due to strong demand for our existing products including our OEM MirrorEye programs in North America and Europe as well as from launches of awarded business. In addition, over the long-term we expect revenue growth and margin contribution from our off-highway products. We continue to focus on margin improvement through material cost reduction and product quality initiatives. We continue to invest in the development of advanced system capabilities that are complementary to our driver information solutions and vision systems such as integrated driver assistance technologies and an intelligent connected trailer system.
Current wording
Based on IHS Markit production forecasts, in 2026 the European and North American commercial vehicle end market volumes are forecasted to increase 1.8% and 12.8%, respectively. Over the long-term, we expect our Electronics’ segment sales to continue to outperform forecasted changes in production volumes due to strong demand for our existing products including our OEM MirrorEye programs in North America and Europe as well as from launches of awarded business. In addition, over the long-term we expect revenue growth and margin contribution from our off-highway products. We continue to focus on margin improvement through material cost reduction and product quality initiatives. We continue to invest in the development of advanced system capabilities that are complementary to our driver information solutions and vision systems such as integrated driver assistance technologies and an intelligent connected trailer system.
Previous wording
In April 2026, the International Monetary Fund forecasted the Brazil gross domestic product to grow 1.9% in 2026. We expect our served market channels to remain relatively stable in 2026 based on current market and economic conditions; however our sales of in-region OEM products are expected to increase in the second half of 2026 due to the launch of an awarded infotainment product. Stoneridge Brazil will focus on continuing to grow our OEM capabilities in-region to better support our global customers. This focus will provide opportunities for future growth and provide a platform to continue to rotate our local portfolio to more closely align with our global business.
Current wording
In July 2026, the International Monetary Fund forecasted the Brazil gross domestic product to grow 2.4% in 2026. We expect our served market channels to moderately improve in 2026 based on current market and economic conditions; however our sales of in-region OEM products are expected to increase in the second half of 2026 due to the launch of an infotainment product in the second quarter of 2026. Stoneridge Brazil will focus on continuing to grow our OEM capabilities in-region to better support our global customers. This focus will provide opportunities for future growth and provide a platform to continue to rotate our local portfolio to align with our global business more closely.
Previous wording
In 2026, we expect net D&D spend to increase driven by spend for quality improvement and the development of next generation products. We continue to evaluate and optimize our engineering footprint to enhance capabilities and capacity for the most efficient return on our engineering spend including increasing the utilization of our Stoneridge Brazil engineering and dedicated engineering partners in India to support Electronics segment projects.
Current wording
In 2026, we expect net D&D spend to increase driven by spend for quality improvement, product cost optimization, and the development of next generation products. We continue to evaluate and optimize our engineering footprint to enhance capabilities and capacity for the most efficient return on our engineering spend including increasing the utilization of our Stoneridge Brazil engineering function and dedicated engineering partners in India to support Electronics segment projects.
Previous wording
While we expect continued supply chain challenges across our end markets in 2026, we continue to focus on operating performance and enterprise-wide cost reduction. We remain focused on improving cash generation and the reduction of debt through efficient operating performance, structural cost savings and targeted actions to reduce our inventory levels.
Current wording
While we expect continued supply chain challenges associated with memory and other electronic component pricing and availability in 2026, we continue to focus on operating performance and enterprise-wide cost reduction. We remain focused on improving cash generation and the reduction of debt through efficient operating performance, structural cost savings and targeted actions to reduce our inventory levels. However, we anticipate working capital investment in the second half of 2026 related to the mid-2027 launch of a new off-highway vision product.
Previous wording
A significant portion of our sales are outside of the United States. These sales are generated by our non-U.S. based operations, and therefore, movements in foreign currency exchange rates can have a significant effect on our results of operations, which are presented in U.S. dollars. A significant portion of our raw materials purchased by our Electronics and Stoneridge Brazil segments are denominated in U.S. dollars and, therefore, movements in foreign currency exchange rates can also have a significant effect on our results of operations. In the first quarter of 2026, the U.S. Dollar weakened against the Brazilian real favorably impacting our financial results while it strengthened against the Swedish krona and weakened against the Mexican peso which had an unfavorable impact to our reported results. In the first quarter of 2025, the U.S dollar strengthened against the Brazilian real unfavorably impacting our financial results while it weakened against the Swedish krona which had a favorable impact to our reported results.
Current wording
A significant portion of our sales are outside of the United States. These sales are generated by our non-U.S. based operations, and therefore, movements in foreign currency exchange rates can have a significant effect on our results of operations, which are presented in U.S. dollars. A significant portion of our raw material purchases are denominated in U.S. dollars and, therefore, movements in foreign currency exchange rates can also have a significant effect on our results of operations. In the second quarter of 2026, the U.S. Dollar weakened against the Brazilian real favorably impacting our financial results while it strengthened against the Swedish krona and weakened against the Mexican peso which had an unfavorable impact to our reported results. In the second quarter of 2025, the U.S. dollar weakened against the Swedish krona unfavorably impacting our reported results.
Previous wording
We regularly evaluate the performance of our businesses and their cost structures, including personnel, and make necessary changes thereto to optimize our results. We also evaluate the required skill sets of our personnel and periodically make strategic changes. Because of these actions, we incur severance and resignation related costs that we refer to as business realignment charges. Business realignment costs of $0.4 million and$2.5 million were incurred in the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2025, we incurred $1.4 million in business realignment costs related to operational efficiency initiatives at our Juarez facility. We may incur additional realignment costs in the future.
Current wording
We regularly evaluate the performance of our businesses and their cost structures, including personnel, and make necessary changes thereto to optimize our results. We also evaluate the required skill sets of our personnel and periodically make strategic changes. Because of these actions, we incur severance and resignation related costs that we refer to as business realignment charges. Business realignment costs of $0.0 million and$1.4 million were incurred in the three months ended June 30, 2026 and 2025, respectively. Business realignment costs of$0.4 million and$3.9 million were incurred during the six months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2025, we incurred $1.4 million and $3.0 million, respectively, in business realignment costs related to operational efficiency initiatives at our Juarez facility. We may incur additional realignment costs in the future.
Previous wording
The increase in North American net sales was due to an increase in sales resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices and higher MirrorEye system sales.
Current wording
The increase in North American net sales was due to an increase in production volumes in our commercial vehicle market of $10.0 million including higher MirrorEye system sales and an increase in sales of $7.1 million resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices.
Previous wording
The increase in net sales in South America was from favorable foreign currency translation and higher OEM product sales.
Current wording
The increase in net sales in South America was from higher OEM product sales including sales from the launch of an infotainment product of $4.4 million and favorable foreign currency translation of $1.8 million.
Previous wording
Cost of Goods Sold and Gross Margin. Cost of goods sold increased compared to the first quarter of 2025 and our gross margin decreased to 21.7% in the first quarter of 2026 from 23.6% in the first quarter of 2025. Our material cost as a percentage of net sales increased to 58.3% in the first quarter of 2026 from 56.2% in the first quarter of 2025. The increase in material cost percentage was due to unfavorable sales mix in our Electronics segment from lower Smart 2 tachograph sales. Overhead as a percentage of net sales decreased from 16.6% in the first quarter of 2025 to 15.2% in the first quarter of 2026 due to tariff recoveries and lower business realignment costs in our Electronics segment.
Current wording
Cost of Goods Sold and Gross Margin. Cost of goods sold increased compared to the second quarter of 2025 and our gross margin decreased to 20.3% in the second quarter of 2026 from 23.1% in the second quarter of 2025. Our material cost as a percentage of net sales increased to 57.7% in the second quarter of 2026 from 56.8% in the second quarter of 2025. The increase in material cost percentage was due to the unfavorable foreign exchange material variances and excess inventory charges as well as adverse sales mix from lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025 in our Electronics segment offset by a benefit from the Mexico Manufacturing Agreement because under this contract manufacturing agreement only direct labor and overhead expenses are recognized. Overhead as a percentage of net sales increased from 16.2% in the second quarter of 2025 to 17.2% in the second quarter of 2026 due to the impact of the Mexico Manufacturing Agreement spend offsetting favorable leverage of fixed costs from higher sales levels.
Previous wording
Design and Development. D&D costs decreased by $2.3 million compared to the first quarter of 2025 in our Electronics segment as a result of higher customer reimbursements.
Current wording
Design and Development. D&D costs decreased by $2.9 million compared to the second quarter of 2025 because of lower business realignment costs and higher customer reimbursements in our Electronics segment.
Previous wording
Interest Expense, net. Interest expense, net was $3.7 million and $3.2 million for the three months ended March 31, 2026 and 2025, respectively. The increase for the quarter ended March 31, 2026, was the result of higher Credit Facility interest rates partially offset by lower outstanding Credit Facility borrowings.
Current wording
Interest Expense, net. Interest expense, net was $2.4 million and $3.2 million for the three months ended June 30, 2026 and 2025, respectively. The decrease for the quarter ended June 30, 2026, was the result of lower outstanding Credit Facility borrowings offset by higher Credit Facility interest rates.
Previous wording
Other Expense (Income), net. We record certain foreign currency transaction (gains) losses as a component of other expense (income), net on the condensed consolidated statement of operations. Other expense, net of $0.5 million increased by $1.3 million compared to the first quarter of 2025 due to foreign currency transaction losses in our Electronics segment from the weakening of the U.S. dollar.
Current wording
Other (Income) Expense, net. We record certain foreign currency transaction (gains) losses as a component of other (income) expense, net on the condensed consolidated statement of operations. Other income, net of $0.6 million increased by $2.9 million compared to the second quarter of 2025 due to foreign currency transaction gains in our SRB segment from the strengthening of the U.S. dollar and lower foreign currency transactions losses in our Electronics segment.
Previous wording
Provision for Income Taxes. For the three months ended March 31, 2026, income tax expense from continuing operations of $1.4 million was attributable to the mix of earnings among tax jurisdictions, tax credits and incentives and valuation allowances in certain jurisdictions. The effective tax rate of (10.6)% varies from the statutory tax rate primarily due to tax credits and incentives and valuation allowances in certain jurisdictions.
Current wording
Provision for Income Taxes. For the three months ended June 30, 2026, income tax expense from continuing operations of $2.6 million was attributable to the mix of earnings among tax jurisdictions, tax credits and incentives, and valuation allowances in certain jurisdictions. The effective tax rate of (93.9)% varies from the statutory tax rate primarily due to tax credits and incentives and valuation allowances in certain jurisdictions.
Previous wording
For the three months ended March 31, 2025, income tax expense from continuing operations of $1.6 million was attributable to the mix of earnings among tax jurisdictions, the impact of valuation allowances in certain jurisdictions and tax credits and incentives offset by U.S. taxes on foreign earnings. The effective tax rate of (24.5)% varies from the statutory tax rate primarily due to the impact of valuation allowances in certain jurisdictions and tax credits and incentives offset by U.S. taxes on foreign earnings.
Current wording
For the three months ended June 30, 2025, income tax expense from continuing operations of$1.5 million was attributable to the mix of earnings among tax jurisdictions, foreign withholding taxes, and tax credits and incentives offset by U.S. taxes on foreign earnings. The effective tax rate of(16.1%) varies from the statutory tax rate primarily due to foreign withholding taxes and tax credits and incentives offset by U.S. taxes on foreign earnings.
Previous wording
Our Electronics segment net sales increased $10.1 million because of favorable euro and Swedish krona foreign currency translation of $12.3 million and higher sales of $3.8 million resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices. Additionally, sales increased in our North American commercial vehicle market by $0.9 million driven by higher MirrorEye system sales partially offset by lower customer production volumes. These increases were offset by lower sales volumes in our European commercial vehicle market of$7.4 million, primarily due to lower sales for the Smart 2 tachograph product resulting from the end of a retrofit campaign in 2025, and lower customer production volumes partially offset by higher MirrorEye system sales.
Current wording
Our Electronics segment net sales increased $28.3 million because of favorable euro and Swedish krona foreign currency translation of $15.0 million and higher sales of $10.9 million resulting from the Mexico Manufacturing Agreement related to the sale of Control Devices. Additionally, sales increased in our North American commercial vehicle market by $11.1 million from higher production volumes including higher MirrorEye system sales. These increases were offset by lower sales in our European commercial vehicle market of $8.2 million, including lower sales for the Smart 2 tachograph product resulting from the end of a retrofit campaign in 2025 offset by higher MirrorEye system sales, and lower China commercial vehicle sales of $1.6 million
Previous wording
The increase in net sales in Europe and Other was due to favorable foreign currency translation of $12.3 million, higher MirrorEye system sales and an increase in volume in our European off-highway market sales of $1.9 million. These increases were offset by lower sales volumes in our European commercial vehicle market of $7.4 million, including lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025.
Current wording
The increase in net sales in Europe and Otherwas due to favorable foreign currency translation of $15.0 million and an increase in off-highway sales of $2.6 million. This increase was offset by lower sales in our European commercial vehicle market of $8.2 million, including lower Smart 2 tachograph product sales from the end of a regulatory retrofit campaign in 2025 offset by higher MirrorEye system sales, and lower sales in our China commercial vehicle market of $1.6 million.
Previous wording
Our Electronics segment gross margin decreased compared to the prior year first quarter from higher direct material costs as a percentage of sales from unfavorable sales mix offset by lower overhead spending including tariff recoveries and lower business realignment costs.
Current wording
Our Electronics segment gross margin decreased compared to the prior year from higher direct material costs as a percentage of sales from unfavorable sales mix, unfavorable foreign exchange variances and excess inventory charges offset by lower business realignment costs.
Previous wording
Our Stoneridge Brazil segment gross margin increased from the favorable material variances from U.S. dollar denominated purchases and favorable leverage of fixed costs from higher sales levels.
Current wording
Our Stoneridge Brazil segment gross margin increased from the favorable variances from U.S. dollar denominated material purchases and higher contribution from higher sales levels.
Previous wording
Selling, General and Administrative. SG&A expenses increased by $6.7 million primarily because of higher share-based compensation from retirement related accelerated vesting, Brazilian indirect taxes and legal expenses.
Current wording
Selling, General and Administrative. SG&A expenses increased by $7.0 million primarily because of higher share-based compensation from retirement-related accelerated vesting, incentive compensation and legal expenses offset by lower business realignment costs and royalties.
Previous wording
Our Electronics segment operating income decreased because of lower gross margin and higher SG&A expense from higher wages and business realignment costs offset by lower D&D from higher customer reimbursements.
Current wording
Our Electronics segment operating income increased because of lower D&D from higher customer reimbursements and lower business realignment costs and lower SG&A from lower royalties offset by lower gross margin.
Previous wording
Our Stoneridge Brazil segment operating income increased due to favorable variances from U.S. dollar denominated purchases andhigher contribution from higher sales levels offset by higher SG&A from higher incentive compensation and Brazilian indirect taxes.
Current wording
Our Stoneridge Brazil segment operating income increased due to higher gross margin from favorable variances from U.S. dollar denominated material purchases andhigher contribution from higher sales levels offset by higher SG&A from higher incentive compensation and selling expenses.
Previous wording
Our unallocated corporate operating loss increased from higher SG&A related to higher share-based compensation from retirement related accelerated vesting and legal fees offset by lower business realignment costs as well as D&D spending.
Current wording
Our unallocated corporate operating loss increased from higher SG&A related to higher share-based compensation from retirement-related accelerated vesting, incentive compensation and legal fees offset by lower business realignment expenses as well as lower D&D spending.
Previous wording
Our North American operating loss increased due to higher SG&A from higher share-based compensation from retirement-related accelerated vesting and higher D&D expense offset by higher gross margin from higher sales levels and tariff recoveries. Operating income in South America increased from higher gross margin from higher sales levels offset by higher SG&A from higher incentive compensation and Brazilian indirect taxes. Our operating results in Europe and Other decreased because of lower margin from adverse sales mix and higher SG&A spending from higher business realignment costs offset by lower D&D expense from higher customer reimbursements.
Current wording
Our North American operating loss increased due to higher SG&A from higher share-based compensation from retirement-related accelerated vesting, incentive compensation and legal expenses offset by higher gross margin from higher sales levels including tariff recoveries and lower D&D from lower business realignment costs. Operating income in South America increased from higher gross margin from favorable variances from U.S. dollar denominated material purchases and higher contribution from higher sales levels offset by higher SG&A from higher incentive compensation and selling expenses. Our operating results in Europe and Other decreased because of lower margin from adverse sales mix and unfavorable foreign exchange variances offset by lower D&D expense from higher customer reimbursements and lower SG&A from lower royalties.
Previous wording
Equity in Loss (Earnings) of Investee. Equity loss (earnings) for Autotech Fund II was $0.2 million and $(0.3) million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Equity in Loss (Earnings) of Investee. Equity loss (earnings) for Autotech Fund II was $0.0 million and $(0.3) million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
Cash used for operating activities increased compared to 2025 because of a higher net loss and higher working capital levels primarily accounts receivable slightly offset by accounts payable. Cash used by receivables increased due to receivables resulting from manufacturing and transition service agreements related to the sale of Control Devices in the first quarter of 2026, however overall collection terms have remained consistent.
Current wording
Cash provided by operating activities decreased compared to 2025 because of a higher net loss and higher working capital levels primarily accounts receivable and to a lesser extent inventory, partially offset by higher accounts payable. Cash used by receivables increased due to the recognition of receivables resulting from manufacturing and transition service agreement transactions related to the sale of Control Devices in the first quarter of 2026, however overall collection terms have remained consistent.
Previous wording
Net cash used for financing activities increased compared to 2025 due to an increase in Credit Facility repayments from proceeds from the sale of Control Devices.
Current wording
Net cash used for financing activities decreased compared to 2025 due to a decrease in Credit Facility repayments.
Previous wording
As outlined in Note 7 to our condensed consolidated financial statements, the Credit Facility permitted borrowing up to a maximum level of $275.0 million. This variable rate facility had an accordion feature which allowed the Company to increase its availability by up to $150.0 million upon the satisfaction of certain conditions and lender consent through its expiration in November 2026. The Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio. The Credit Facility also contains affirmative and negative covenants and events of default that are customary for credit arrangements of this type including covenants that place restrictions and/or limitations on the Company’s ability to borrow money, make capital expenditures and pay dividends. The Credit Facility had an outstanding balance of $156.5 million at March 31, 2026.
Current wording
As outlined in Note 7 to our condensed consolidated financial statements, the Credit Facility permitted borrowing up to a maximum level of $275.0 million. This variable rate facility had an accordion feature which allowed the Company to increase its availability by up to $150.0 million upon the satisfaction of certain conditions and lender consent through its expiration in November 2026. The Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio. The Credit Facility also contains affirmative and negative covenants and events of default that are customary for credit arrangements of this type including covenants that place restrictions and/or limitations on the Company’s ability to borrow money, make capital expenditures and pay dividends. The Credit Facility had an outstanding balance of $151.1 million at June 30, 2026.
Previous wording
On November 5, 2025, the Company entered into Amendment No. 2 to the Fifth Amended and Restated Credit Agreement and Consent Agreement (“Amendment No. 2”). Amendment No. 2 amended the Credit Facility and provided for certain covenant relief and restrictions through the Credit Facility's termination date of November 2, 2026. Amendment No. 2 superseded certain terms of the Credit Facility and Amendment No. 1 beginning November 5, 2025 and ending at the Credit Facility's termination date of November 2, 2026. Amendment No. 2 amended certain Credit Facility terms and provides covenant relief as follows:
Current wording
On November 5, 2025, the Company entered into Amendment No. 2 to the Fifth Amended and Restated Credit Agreement and Consent Agreement (“Amendment No. 2”). Amendment No. 2 amended the Credit Facility and provided for certain covenant relief and restrictions through the Credit Facility's termination date of November 2, 2026. Amendment No. 2 superseded certain terms of the Credit Facility and Amendment No. 1 beginning November 5, 2025 and ending at the Credit Facility's termination date of November 2, 2026. Amendment No. 2 amended certain Credit Facility terms and provided covenant relief as follows:
Previous wording
•borrowing capacity is reduced from $275.0 million to $225.0 million;
Current wording
•borrowing capacity was reduced from $275.0 million to $225.0 million;
Previous wording
•the maximum leverage ratio of 4.5 for the quarter ended September 30, 2025 and 3.5 for the quarter ended December 31, 2025 and thereafter remains unchanged.
Current wording
•the maximum leverage ratio of 4.5 for the quarter ended September 30, 2025 and 3.5 for the quarter ended December 31, 2025 and thereafter remained unchanged.
Previous wording
The Company’s wholly owned subsidiary located in Stockholm, Sweden, has an overdraft credit line that allows overdrafts on the subsidiary’s bank account up to a daily maximum level of 20.0 million Swedish krona, or $2.1 million and $2.2 million at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026 and December 31, 2025, there were no borrowings outstanding on this overdraft credit line. During the three months ended March 31, 2026, the subsidiary borrowed and repaid 21.8 million Swedish krona, or $2.6 million. The Stockholm subsidiary has pledged certain of its assets as collateral in order to obtain a guarantee of certain of the Stockholm subsidiary’s obligations to third parties.
Current wording
The Company’s wholly owned subsidiary located in Stockholm, Sweden, has an overdraft credit line that allows overdrafts on the subsidiary’s bank account up to a daily maximum level of 20.0 million Swedish krona, or $2.1 million and $2.2 million at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026 and December 31, 2025, there were no borrowings outstanding on this overdraft credit line. During the six months ended June 30, 2026, the subsidiary borrowed and repaid 40.4 million Swedish krona, or $4.2 million. The Stockholm subsidiary has pledged certain of its assets as collateral in order to obtain a guarantee of certain of the Stockholm subsidiary’s obligations to third parties.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Our Stoneridge Brazil segment gross margin increased from the favorable material variances from U.S. dollar denominated material purchases and higher contribution from higher sales levels.
Current report — wording carried from elsewhere
Our unallocated corporate operating loss increased from higher SG&A related to higher incentive compensation and legal fees offset by lower D&D spending.
Current report — wording carried from elsewhere
Condensed consolidated statements of operations as a percentage of net sales are presented in the following table (in thousands):
Current report — wording carried from elsewhere
Net Sales. Net sales for our reportable segments, excluding inter-segment sales, are summarized in the following table (in thousands):
Current report — wording carried from elsewhere
Net sales by geographic location are summarized in the following table (in thousands):
Current report — wording carried from elsewhere
Operating (Loss) Income. Operating (loss) income by segment is summarized in the following table (in thousands):
Current report — wording carried from elsewhere
Operating (loss) income by geographic location is summarized in the following table (in thousands):
Current report — wording carried from elsewhere
Interest Expense, net. Interest expense, net was $6.1 million and $6.5 million for the six months ended June 30, 2026 and 2025, respectively. The decrease was the result of lower outstanding Credit Facility borrowings offset by higher Credit Facility interest rates.
Current report — wording carried from elsewhere
Other (Income) Expense, net. We record certain foreign currency transaction (gains) losses as a component of other expense (income), net on the condensed consolidated statement of operations. Other income, net of $(0.2) million increased by $1.6 million compared to the first six months of 2025 due to foreign currency transaction gains in our SRB segment from the strengthening of the U.S. dollar and lower foreign currency transactions losses in our Electronics segment.
Current report — wording carried from elsewhere
Provision for Income Taxes. For the six months ended June 30, 2026, income tax expense from continuing operations of $4.0 millionwas attributable to the mix of earnings among tax jurisdictions, tax credits and incentives, and valuation allowances in certain jurisdictions. The effective tax rate of (24.7%)varies from the statutory tax rate primarily due to tax credits and incentives and valuation allowances in certain jurisdictions.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, income tax expense of $3.1 million was attributable to the mix of earnings among tax jurisdictions, foreign withholding taxes, and tax credits and incentives offset by U.S. taxes on foreign earnings. The effective tax rate of (19.5)% varies from the statutory tax rate primarily due to foreign withholding taxes and tax credits and incentives offset by U.S. taxes on foreign earnings.