Standard Motor Products, Inc. (NYSE: SMP) reported fourth‑quarter and full‑year 2025 results on February 26, 2026. Net sales rose 12.2% to $385.1 million, up 22.4% from $1.46 billion in 2024. Adjusted diluted earnings per share were $0.56, a 19.1% increase from $0.47 in Q4 2024, while GAAP earnings from continuing operations were $9.2 million, or $0.41 per diluted share, turning a $0.8 million loss in the same period last year into a profit.
Revenue beat the consensus estimate of $372 million but fell short of higher estimates of $393 million and $386 million. The growth was driven by strong demand in the aftermarket and Nissens automotive segments, which together contributed a significant portion of the 12.2% increase. However, the wire‑set business, a legacy product line, declined 27% in the quarter, partially offsetting gains in other areas.
The adjusted EPS beat the consensus of $0.45 by $0.11, a 24% surprise, largely because of disciplined cost management and a favorable product mix. The company’s integration of the Nissens acquisition has added higher‑margin components and cross‑selling opportunities, while operating leverage from scale has helped maintain margins despite rising tariff costs.
Adjusted EBITDA margin for the quarter was 9.7% of net sales, up from 8.8% in Q4 2024, and year‑to‑date adjusted EBITDA was 11.2% of sales, exceeding the guidance range of 10.5%–11.0%. Management reiterated a 2026 outlook of low‑ to mid‑single‑digit sales growth and an adjusted EBITDA margin of 11.0%–12.0%, reflecting confidence in continued margin expansion from pricing power and the Nissens integration while acknowledging ongoing tariff‑related cost pressure.
The company disclosed a material weakness in internal controls over financial reporting at its Nissens segment related to general IT controls. Segment performance highlights include a robust aftermarket business and a growing Nissens automotive line, while the Engineered Solutions segment remains in a recovery phase. Headwinds include tariff costs, a decline in wire‑set demand, and higher distribution expenses, whereas tailwinds are the successful integration of Nissens, cross‑selling synergies, and strong demand in North American aftermarket markets.
Investors reacted cautiously, with the stock rising modestly in pre‑market trading. The primary driver of the positive reaction was the adjusted EPS beat, while the revenue ambiguity tempered enthusiasm. The dividend was increased from $0.31 to $0.33 per share, payable on March 2, 2026.
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