Stoneridge Raises 2026 Sales Outlook After Award Charge

The Tip Desk · November 4, 2026 · 4 min read

Adjusted third-quarter sales reached $180.0 million, up 29.9%, as the company lifted full-year adjusted revenue guidance to $690 million–$700 million; a $24.2 million arbitration charge weighed on a $22.9 million GAAP net loss from continuing operations.

Stoneridge, Inc. (SRI) raised its 2026 adjusted revenue outlook to $690 million to $700 million after third-quarter adjusted sales rose 29.9% to $180.0 million. A $24.2 million arbitration charge reduced reported earnings, with GAAP net loss from continuing operations totaling $22.9 million.

The global supplier of vehicle electronic systems said adjusted consolidated net sales from continuing operations totaled $180.0 million in the three months ended September 30, 2026, up 29.9% from a year earlier.

GAAP net sales were $155.8 million, up 12.4%, after a $24.2 million pre-tax reduction to net sales tied to an adverse arbitration ruling on November 2, 2026. The panel awarded a former Control Devices customer €22.5 million, about $25.5 million, including interest and costs, on legacy PM sensor warranty claims. Stoneridge exited that product line in 2019 and sold Control Devices in the first quarter of 2026. The company said the ruling provided additional evidence about conditions that existed at September 30, 2026, so the charge was recognized in the third quarter. It disagrees with the award, is evaluating its options, and said that if an appeal fails it expects to pay from cash on hand, including cash held outside the United States.

On an adjusted basis, Stoneridge reported net income from continuing operations of $1.6 million, or $0.06 a share, versus an adjusted net loss of $7.6 million, or $0.27 a share, in the third quarter of 2025. GAAP net loss from continuing operations was $22.9 million, or $0.81 a share. Adjusted EBITDA was $7.3 million, or 4.1% of adjusted sales, compared with $5.2 million, or 3.7% of sales, a year earlier.

Adjusted gross margin was 19.9%, down 382 basis points from 23.7% in the year-ago period. The company said cost leverage on higher sales and targeted expense control were more than offset by higher material costs, resolution of legacy warranty obligations, strategic inventory-related actions and adverse sales mix in Stoneridge Brazil. SG&A as a percentage of adjusted sales improved 317 basis points year over year to 13.1%, and the company said it is on track to deliver more than $5 million in cost savings in 2026.

Electronics sales were $158.6 million, up 30.5% from a year earlier, after 12.8% growth to $160.9 million in the second quarter. The company said growth versus the year-ago quarter was primarily driven by increased volume in North American and European commercial vehicle markets. Excluding an unfavorable foreign-currency translation impact of $1.4 million and Mexico Manufacturing Agreement revenue related to the Control Devices sale, Electronics sales improved 26.4%. Adjusted operating margin in Electronics fell 217 basis points year over year to 3.4%.

Stoneridge Brazil posted a record $21.5 million, up 25.3%, after a record $20.5 million in the second quarter. Higher OEM sales were the primary driver. Adjusted operating income there was $2.5 million, or 11.5% of sales. MirrorEye posted a record quarter of more than $37 million.

Stoneridge Electronics secured additional OEM orders for existing vision systems that the company said are expected to generate approximately $180 million in cumulative incremental sales through 2028.

Cash and cash equivalents were $63.4 million at September 30, 2026, with total debt of $143.7 million and net debt of $80.2 million. The company said the $47.6 million decrease in net debt from December 31, 2025 reflected proceeds from the Control Devices sale and tighter working-capital control. Outstanding borrowings under its Credit Facility are classified as a current liability; the facility matures July 1, 2027, and the company said it expects to refinance and is in a global refinancing process.

For the full year, Stoneridge now expects adjusted EBITDA at the bottom end of its prior $20 million to $25 million range, citing higher transitory costs, inflationary pressures and unfavorable currency. Adjusted gross-margin guidance was cut to 20.5% to 21.0% from 21.5% to 22.0%, and adjusted operating-margin guidance was cut to (0.5)% to 0.0% from 0.0% to 0.5%. President and chief executive officer Natalia Noblet said the company is revising the sales range on improved market demand, continued product momentum and year-to-date outperformance at Stoneridge Brazil.