EX-99 2 a991pressrelease1.htm EX-99 Document


Exhibit 99.1
logo021.jpg
For Immediate Release
For more information, contact:
Anthony (Tony) Cristello
Standard Motor Products, Inc.
(972) 316-8107
investors@smpcorp.com

Standard Motor Products, Inc. Releases
First Quarter 2025 Results and Quarterly Dividend

•First quarter net sales of $413.4 million up 24.7%, and up 4.8% excluding Nissens
•First quarter adjusted EBITDA margin increased 350 basis points to 10.4%
•Adjusted diluted earnings per share of $0.81 in the quarter increased 80% from last year
•Strong North American manufacturing footprint well-positioned to help mitigate tariff impact

New York, NY, April 30, 2025......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months ended March 31, 2025.

Net sales for the first quarter of 2025 were $413.4 million, compared to consolidated net sales of $331.4 million during the same quarter in 2024. Earnings from continuing operations for the first quarter of 2025 was $13.7 million or $0.61 per diluted share, compared to earnings of $9.9 million or $0.44 per diluted share in the first quarter of 2024. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2025 were $18.0 million or $0.81 per diluted share, compared to $10.0 million or $0.45 per diluted share in the first quarter of 2024.





Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer stated, “We are very pleased with the first quarter results which exceeded our expectations. Sales for the quarter were up nearly 25%, and excluding the impact of the recent acquisition of Nissens Automotive (“Nissens”), sales were up nearly 5%. Additionally, adjusted diluted earnings per share were up 80% for the quarter, with strong profit performance from all segments.”

Within our North American aftermarket business, both segments had strong quarters. Vehicle Control sales increased 3.7% in the first quarter, continuing the positive trend from last year. Customer order patterns were solid as we saw steady demand for our products, which tend to be more non-discretionary in nature.

Our Temperature Control segment is off to an excellent start as sales increased 24.1%. The strength seen in the fourth quarter has continued, driven by a combination of planned pre-season orders, which can shift between quarters in any given year, and strong ongoing customer sell-through.

For Engineered Solutions, first quarter sales declined 11.2% as softness in certain of our end markets continued. On a positive note, the customer and product mix has shown improvement, generating improved profitability on lower sales. We continue to win new business awards which bodes well for future growth as the cycle recovers.

Moving to our newest segment, Nissens, we were pleased with the performance during its first full quarter of ownership, as it contributed sales of $66.2 million, with an adjusted EBITDA margin of 17.3%, slightly better than our full-year mid-teens rate expectations for the segment. Our integration efforts are well underway, and we remain very confident in our initial target of $8-12 million in run-rate cost reduction synergies within 24 months of ownership. We look forward to updating you as we move further into the integration process and remain very excited about the future potential.





Looking at profitability, adjusted EBITDA increased to $42.8 million, up from $22.9 million last year, with just over half of the gain from Nissens and the balance from the improved performance of our other segments. Adjusted EBITDA margin climbed 350 basis points to 10.4%, due to the higher rate of Nissens, leverage on the solid sales from our North American business, and various cost containment actions, including the benefit from our previously disclosed early retirement program. We remain focused on our cost savings initiatives and continue to look at ways to drive margin improvement going forward.

From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $600.3 million, primarily reflecting additional borrowings related to our Nissens acquisition and seasonal working capital build.

Regarding the recently announced tariffs, we are currently assessing the impact on our business in what remains a fluid environment. We believe our diverse global footprint provides a competitive advantage. Over half of our sales in the US are from products manufactured in North America that are USMCA-compliant and thus are currently largely tariff-free. Products sourced from China represent only about a quarter of our US sales, with the remainder coming from lower-tariffed regions. Furthermore, our recent acquisition of Nissens provides meaningful sales diversification outside of the US. We are judiciously planning our mitigation steps, which will largely come from pass-through pricing to our customers.

Regarding our outlook for the year, we maintain our previous guidance for top-line growth to be in the mid-teens, and adjusted EBITDA margin in a range of 10-11%. However, this excludes the impact of tariffs due to the ongoing uncertainty of how they will ultimately play out. We note that under a tariff passthrough, we typically see a sales increase with minimal change to profit dollars, accompanied by some degree of reduced profit margin rate. Once things stabilize and we have better clarity regarding the impact on our business performance, we expect to update our estimates.





The Board of Directors has approved payment of a quarterly dividend of 31 cents per share on the common stock outstanding, which will be paid on June 2, 2025, to stockholders of record on May 15, 2025.

In closing, Mr. Sills commented, “We are excited about the strong start to 2025. Although the macroeconomic environment may remain volatile for the foreseeable future, the underlying fundamentals of the aftermarket have proven to be resilient, both in the US and Europe, particularly in challenging times. The largely non-discretionary nature of our business, coupled with our large North American manufacturing base mitigating tariff exposure, should provide stability as we navigate this period of uncertainty. We remain optimistic about our long-term potential, led by the growth and synergy savings that Nissens will provide in the coming years. We will remain focused on finding ways to drive shareholder value, and on positioning the company to take advantage of the many opportunities we see before us. As always, we thank our employees that make all this possible.”

Conference Call
Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Wednesday, April 30, 2025. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q1'25 Earnings Call Earnings Webcast link. Investors may also listen to the call by dialing 800-274-8461 (domestic) or 203-518-9814 (international). The conference call ID code is SMP1Q2025. Our playback will be made available for dial in immediately following the call. For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call. The playback number is 800-934-7884 (domestic) or 402-220-6987 (international).

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management’s




expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.


Standard Motor Products, Inc.
Consolidated Statements of Operations

Three Months Ended
March 31,
(In thousands, except share and per share data, unaudited)
20252024
Net sales
$413,379 $331,403 
Cost of sales
288,657 241,881 
Gross profit
124,722 89,522 
Selling, general and administrative expenses
99,845 74,733 
Restructuring and integration expenses
673 192 
Other income, net
258 22 
Operating income
24,462 14,619 
Other non-operating income, net
2,248 819 
Interest expense
7,761 2,067 
Earnings from continuing operations before income taxes
18,949 13,371 
Provision for income taxes
5,069 3,342 
Earnings from continuing operations
13,880 10,029 
Loss from discontinued operations, net of income taxes
(1,139)(1,039)
Net earnings
12,741 8,990 
Net earnings attributable to noncontrolling interest
175 166 
Net earnings attributable to SMP$12,566 $8,824 



Net earnings (loss) attributable to SMP


Continuing operations
$13,705 $9,863 
Discontinued operations
(1,139)(1,039)
Net earnings attributable to SMP
$12,566 $8,824 



Per common share data


Basic:


Continuing operations
$0.63 $0.45 
Discontinued operations
(0.06)(0.05)
Net earnings attributable to SMP per common share
$0.57 $0.40 



Diluted:


Continuing operations
$0.61 $0.44 
Discontinued operations
(0.05)(0.05)
Net earnings attributable to SMP per common share
$0.56 $0.39 



Dividend declared per common share
$0.31 $0.29 



Weighted average number of common shares, basic
21,886,81021,923,830
Weighted average number of common shares, diluted
22,319,86822,372,543


Standard Motor Products, Inc.
Segment Revenues
Three Months Ended
March 31,
(in thousands, unaudited)20252024
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)$118,366 $116,085 
Electrical and Safety58,319 52,407 
Wire Sets and Other15,657 17,032 
Total Vehicle Control192,342 185,524 

Temperature Control

AC System Components67,191 49,960 
Other Thermal Components21,692 21,648 
Total Temperature Control88,883 71,608 

Engineered Solutions

Light Vehicle21,404 21,803 
Commercial Vehicle18,605 22,908 
Construction/Agriculture9,408 10,076 
All Other16,555 19,484 
Total Engineered Solutions65,972 74,271 

Nissens Automotive
Engine Cooling27,773 — 
Air Conditioning27,166 — 
Engine Efficiency11,243 — 
Total Nissens Automotive66,182 — 

Total$413,379 $331,403 


Standard Motor Products, Inc.
Segment Operating Profit
Three Months Ended
March 31,
(in thousands, unaudited)20252024
Gross Margin
Vehicle Control$62,161 32.3 %$58,899 31.7 %
Temperature Control27,598 31.0 %19,689 27.5 %
Engineered Solutions11,709 17.7 %10,934 14.7 %
Nissens Automotive27,83842.1 %— — %
All Other— — 
        Subtotal$129,306 31.3 %$89,522 27.0 %
Acquisition Expenses(4,584)-1.1 %— — %
        Gross Margin$124,722 30.2 %$89,522 27.0 %
 
Selling, General & Administrative
Vehicle Control$43,835 22.8 %$43,258 23.3 %
Temperature Control19,823 22.3 %17,600 24.6 %
Engineered Solutions8,514 12.9 %8,691 11.7 %
Nissens Automotive20,254 30.6 %— — %
All Other6,856 5,184 
        Subtotal$99,282 24.0 %$74,733 22.6 %
Acquisition Expenses563 0.1 %— — %
        Selling, General & Administrative$99,845 24.2 %$74,733 22.6 %
Operating Income
Vehicle Control$18,326 9.5 %$15,641 8.4 %
Temperature Control7,775 8.7 %2,089 2.9 %
Engineered Solutions3,195 4.8 %2,243 3.0 %
Nissens Automotive7,58411.5 %— — %
All Other(6,856)(5,184)
        Subtotal$30,024 7.3 %$14,789 4.5 %
Restructuring & Integration(673)-0.2 %(192)-0.1 %
Acquisition Expenses(5,147)-1.2 %— — %
Other Income, Net258 0.1 %22 — %
        Operating Income$24,462 5.9 %$14,619 4.4 %


Standard Motor Products, Inc.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts, unaudited)Three Months Ended
March 31,
20252024
Earnings from Continuing Operations Attributable To SMP
GAAP Earnings from Continuing Operations$13,705 $9,863 
Restructuring and Integration Expenses673 192 
Acquisition Expenses5,147 — 
Income Tax Effect Related To Reconciling Items(1,513)(50)
Non-GAAP Earnings from Continuing Operations$18,012 $10,005 
Diluted Earnings Per Share from Continuing Operations Attributable to SMP
GAAP Diluted Earnings Per Share from Continuing Operations$0.61 $0.44 
Restructuring and Integration Expenses0.03 0.01 
Acquisition Expenses0.23 — 
Income Tax Effect Related To Reconciling Items(0.06)— 
Non-GAAP Diluted Earnings Per Share from Continuing Operations$0.81 $0.45 
Operating Income
GAAP Operating Income$24,462 $14,619 
Restructuring and Integration Expenses673 192 
Acquisition Expenses5,147 — Last Twelve Months Ended
Other Income, Net(258)(22)March 31,Year Ended
Non-GAAP Operating Income$30,024 $14,789 20252024December 31, 2024
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes$18,949 $13,371 $79,567 $77,978 $73,989 
Depreciation and Amortization10,267 7,301 34,379 29,241 31,413 
Interest Expense7,761 2,067 19,206 11,492 13,512 
     EBITDA36,977 22,739 133,152 118,711 118,914 
Restructuring and Integration Expenses673 192 8,149 1,922 7,668 
Acquisition Expenses5,147 — 18,623 — 13,476 
Special Items5,820 192 26,772 1,922 21,144 
EBITDA without Special Items$42,797 $22,931 $159,924 $120,633 $140,058 
Management believes that Non-GAAP earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations which are attributable to SMP, and Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.


Standard Motor Products, Inc.
Reconciliation of GAAP and Non-GAAP Measures by Segments
Three Months Ended March 31, 2025
(In thousands, unaudited)Vehicle ControlTemperature ControlEngineered SolutionsNissens AutomotiveAll Other Consolidated
Operating Income
GAAP Operating Income$17,782$7,900$3,176$2,587$(6,983)$24,462
Restructuring and Integration Expenses52613620—(9)673
Acquisition Expenses———5,011136 5,147
Other (Income) Expense, Net18(261)(1)(14)— (258)
Non-GAAP Operating Income$18,326$7,775$3,195$7,584$(6,856)$30,024
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes$17,046$7,948$3,431$(2,151)$(7,325)$18,949
Depreciation and Amortization3,6697782,5002,987333 10,267
Interest Expense1,0075394595,620136 7,761
EBITDA21,7229,2656,3906,456(6,856)36,977
Restructuring and Integration Expenses52613620—(9)673
Acquisition Expenses———5,011136 5,147
Special Items526136205,011127 5,820
EBITDA without Special Items$22,248$9,401$6,410 $11,467$(6,729)$42,797
% of Net Sales11.6 %10.6 %9.7 %17.3 %10.4 %
Three Months Ended March 31, 2024
(In thousands, unaudited)Vehicle ControlTemperature ControlEngineered SolutionsNissens AutomotiveAll Other Consolidated
Operating Income
GAAP Operating Income$15,540$2,031$2,232$— $(5,184)$14,619
Restructuring and Integration Expenses1015833— — 192
Other Income, Net——(22)— — (22)
Non-GAAP Operating Income$15,641$— $2,089$2,243$— $(5,184)$14,789
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes$14,315$1,888$2,346$— $(5,178)$13,371
Depreciation And Amortization3,5258982,469— 409 7,301
Interest Expense1,427531664— (555)2,067
     EBITDA19,267— 3,317— 5,479— (5,324)22,739
Restructuring and Integration Expenses1015833— — 192
Special Items1015833— — 192
EBITDA without Special Items$19,368$— $3,375 $5,512$— $(5,324)$22,931
% of Net Sales10.4 %4.7 %7.4 %— %6.9 %
Management believes that Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.


Standard Motor Products, Inc.
Condensed Consolidated Balance Sheets
(In thousands)March 31, 2025March 31, 2024December 31, 2024
UnauditedUnaudited
ASSETS
Cash And Cash Equivalents$50,276 $27,113 $44,426 
Accounts Receivable, Gross287,952 212,224 216,191 
Allowance For Expected Credit Losses7,157 8,284 5,472 
Accounts Receivable, Net280,795 203,940 210,719 
Inventories641,131 520,702 624,913 
Unreturned Customer Inventory17,597 18,007 16,163 
Other Current Assets26,282 26,674 25,703 
Total Current Assets1,016,081 796,436 921,924 
Property, Plant And Equipment, Net174,636 124,822 168,735 
Operating Lease Right-of-use Assets112,022 102,060 109,899 
Goodwill246,115 134,624 241,418 
Customer Relationships Intangibles, Net212,37874,029 210,430 
Other Intangibles, Net93,087 15,971 90,540 
Deferred Income Taxes14,064 40,241 13,199 
Investment In Unconsolidated Affiliates26,013 24,751 24,842 
Other Assets31,695 38,627 33,139 
Total Assets$1,926,091 $1,351,561 $1,814,126 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Portion Of Revolving Credit Facility$4,350 $— $10,800 
Current Portion Of Term Loan And Other Debt18,876 5,030 16,317 
Accounts Payable151,206 98,293 148,009 
Sundry Payables And Accrued Expenses81,036 58,714 84,936 
Accrued Customer Returns66,087 47,220 46,471 
Accrued Core Liability11,722 17,438 12,807 
Accrued Rebates73,050 45,191 76,168 
Payroll And Commissions31,050 27,326 40,964 
Total Current Liabilities437,377 299,212 436,472 
Long-term Debt627,329 209,872 535,197 
Noncurrent Operating Lease Liability99,885 90,667 98,214 
Accrued Asbestos Liabilities79,928 68,985 84,568 
Other Liabilities29,135 27,704 29,593 
Total Liabilities1,273,654 696,440 1,184,044 
Total SMP Stockholders' Equity637,961 639,150 615,745 
Noncontrolling Interest14,476 15,971 14,337 
Total Stockholders' Equity652,437 655,121 630,082 
Total Liabilities And Stockholders' Equity$1,926,091 $1,351,561 $1,814,126 


Standard Motor Products, Inc.
Condensed Consolidated Statements of Cash Flows
Three Months Ended
March 31,
(In thousands, unaudited)20252024
Cash Flows From Operating Activities
Net Earnings $12,741 $8,990 
Adjustments To Reconcile Net Earnings To Net Cash Used In Operating Activities:
Depreciation And Amortization10,267 7,301 
Other6,048 3,511 
Change In Assets And Liabilities:
Accounts Receivable(68,882)(43,978)
Inventory (14,576)(14,670)
Prepaid Expenses And Other Current Assets1,438 1,649 
Accounts Payable957 (9,274)
Sundry Payables And Accrued Expenses (3,185)3,988 
Other(5,028)(3,233)
Net Cash Used In Operating Activities(60,220)(45,716)
Cash Flows From Investing Activities
Capital Expenditures(9,132)(10,086)
Other Investing Activities2,923 15 
Net Cash Used In Investing Activities (6,209)(10,071)
Cash Flows From Financing Activities
Net Change In Debt79,094 58,692 
Purchase Of Treasury Stock— (2,235)
Dividends Paid(6,777)(6,392)
Other Financing Activities191 315 
Net Cash Provided By Financing Activities72,508 50,380 
Effect Of Exchange Rate Changes On Cash(229)(6)
Net Increase (Decrease) In Cash And Cash Equivalents5,850 (5,413)
Cash And Cash Equivalents At Beginning Of Period44,426 32,526 
Cash And Cash Equivalents At End Of Period$50,276 $27,113