Standard Motor Posts Record EBITDA as Margins Expand
Adjusted second-quarter sales rose 6.7% to $526.7 million after accounting for tariff refunds.
Standard Motor Products Inc. (SMP), the automotive-parts maker, posted record adjusted EBITDA of $63.5 million as stronger profitability offset slower reported sales growth. Adjusted EBITDA rose 7.4% from a year earlier and increased from $44.5 million in the first quarter.
Second-quarter net sales rose 1.6% to $501.6 million, compared with 9.1% growth in the first quarter, while sales increased sequentially from $451.2 million. The company introduced an adjusted-sales measure that excluded accounting for IEEPA tariff refunds, adding $25.1 million across its four segments.
Diluted earnings from continuing operations increased 18.8% to $1.39 a share, while adjusted earnings rose 8.6% to $1.40 a share. Gross margin widened to 32.8% from 30.6%, and operating margin expanded to 10.1% from 8.7%. On a non-GAAP basis, gross margin edged up to 31.3% and operating margin increased to 9.7%.
Temperature Control supplied much of the quarter’s momentum as adjusted sales growth accelerated to 15.7% from 0.7% in the first quarter. Preseason orders shifted more heavily into the second quarter. Segment EBITDA increased to $27.6 million from $21.2 million, lifting its adjusted EBITDA margin to 18.2% from 16.1%.
Vehicle Control moved in the opposite direction, with adjusted sales declining 1.6% after rising 11.2% in the first quarter. Order timing and a significant decline in wire-set sales contributed to the decline, while distribution expenses related to the Shawnee, Kan., center transition weighed on profitability. Segment EBITDA fell to $17.0 million from $21.5 million, and its adjusted EBITDA margin narrowed to 8.6% from 10.7%.
Nissens adjusted sales growth slowed to 4.8%, with local-currency growth of 2.3%, while its adjusted EBITDA margin increased to 19.0% from 18.0%. Engineered Solutions sales rose 16.8%, marking a third consecutive quarter of accelerating growth across its end markets, though its adjusted EBITDA margin slipped to 9.7% from 10.0%.
Standard Motor reaffirmed its 2026 outlook for low-to-mid-single-digit sales growth and an adjusted EBITDA margin of 11% to 12%. First-half operating cash flow improved to $58.3 million from a $5.9 million use of cash a year earlier, helped by a $37.8 million inventory reduction. Net debt fell $89.2 million sequentially to $510.2 million, lowering leverage to 2.5 times adjusted EBITDA from 3.0 times.