Stoneridge (SRI) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $160.8 million, up 9.2% sequentially, driven by record MirrorEye sales, higher off-highway and Brazil OEM sales, and favorable foreign currency translation.

• Adjusted gross margin expanded by 400 basis points to 21.7% compared to Q4 2025, reflecting manufacturing improvements and lower quality-related costs.

• Net loss was $27.0 million, including a $9.2 million loss on disposal of Control Devices; adjusted net loss was $20.9 million.

• Announced two major business awards totaling over $135 million in estimated lifetime revenue, including a new OEM-integrated MirrorEye program and next-gen electronic controls.

• Sale of Control Devices segment completed January 2026, resulting in a strategic shift to technology-led growth and operational excellence.

Financial highlights

• Q1 2026 sales were $160.8 million, up 9.2% sequentially and 7.9% year-over-year, with adjusted gross profit of $35.0 million (21.7% margin).

• Adjusted EBITDA was $2.0 million (1.3% margin), exceeding break-even expectations.

• Adjusted operating loss improved to $(3.0) million (–1.8% margin) from Q4 2025.

• Net debt improved by $42.0 million to $85.9 million, aided by proceeds from the Control Devices sale.

• Cash and cash equivalents at quarter-end were $70.5 million; borrowings on Credit Facility were $156.5 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $645–$670 million, reflecting $20 million incremental contract manufacturing revenue.

• Adjusted operating margin guidance updated to approximately break-even to 0.5%, up 50 basis points from prior expectations.

• Adjusted EBITDA guidance reaffirmed at $20–$25 million (3.1%–3.7% margin); adjusted gross margin guidance at 21.5%–22.0%.

• Second quarter revenue expected to be slightly above Q1, with EBITDA improvement anticipated in the second half of the year.

• Commitment to reduce structural costs by at least $5 million in 2026.