Stoneridge Reaffirms 2026 Outlook After Record Adjusted Ebitda
Adjusted EBITDA was $5.5 million, or 3.0% of sales, versus $0.8 million a year earlier, as the company kept its $645 million to $670 million revenue range.
Stoneridge, Inc. (SRI), a global supplier of electronic systems for on- and off-highway vehicles, reported adjusted EBITDA of $5.5 million, or 3.0% of sales, in the second quarter ended June 30, 2026, versus $0.8 million, or 0.5% of sales, a year earlier. The company called it the best quarterly performance in 24 months and reaffirmed its 2026 guidance ranges.
Net sales were $181.4 million, up 15.1% from $157.5 million. Excluding $4.4 million of favorable currency translation and $7.1 million of Mexico Manufacturing Agreement revenue tied to the sale of the Control Devices business, revenue improved 7.8% year over year. The North American commercial vehicle market and Stoneridge Brazil were the primary contributors.
Gross margin compressed 277 basis points to 20.3% from 23.1%. Cost leverage on higher sales and targeted expense control were more than offset by higher material costs from unfavorable currency, strategic inventory-related actions, and adverse product mix after a European regulatory retrofit campaign.
Net loss from continuing operations narrowed to $5.3 million, or $0.19 a share, from $11.1 million, or $0.40 a share, a year earlier. Operating loss was $1.2 million.
Electronics, the larger reportable segment, posted sales of $160.9 million, up 12.8% from $142.7 million, or 11.0% in constant currency. Growth was primarily from the North American commercial vehicle market. Electronics operating income rose to $4.9 million, or 3.0% of segment sales, from $2.7 million, or 1.9%. Adjusted operating margin was 3.0%, up 12 basis points, as a higher revenue base and cost initiatives more than offset mix, currency, and inventory actions.
Stoneridge Brazil posted record quarterly sales of $20.5 million, up 37.6% from $14.9 million, or 25.7% excluding $1.8 million of favorable currency. Higher OEM sales were the primary driver. GAAP operating income was $2.6 million, or 12.6% of sales, versus $1.0 million, or 6.5%. Adjusted operating income was $2.3 million, or 11.2% of sales, up 135.5%, as higher volume more than offset increased SG&A.
MirrorEye camera-monitor revenue was a record about $37 million, up 39% year over year.
Cash and cash equivalents were $71.5 million at June 30, 2026, with total debt of $151.1 million and net debt of $79.6 million. The $38.5 million decrease in net debt versus December 31, 2025, reflected proceeds from the January sale of Control Devices and tighter working-capital control in the first half. The credit facility matures July 1, 2027; the company expects to refinance and is in a global refinancing process.
The company is reaffirming 2026 guidance last updated in May: revenue of $645 million to $670 million, adjusted gross margin of 21.5% to 22.0%, adjusted operating margin of break-even to 0.5%, and adjusted EBITDA of $20 million to $25 million, or 3.1% to 3.7%. President and Chief Executive Officer Natalia Noblet said the company is encouraged by second-quarter progress and that initiatives to generate operational efficiencies and enhance profitability are beginning to materialize. She said the company is seeing promising signs across the European and North American commercial vehicle markets, which should support growth over the balance of 2026, and that it is prudent to balance those positives against ongoing macroeconomic and geopolitical uncertainty.
The company continues to focus on material cost reductions, quality improvements, and inflationary cost recovery.