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 a strategic focus on technology-led growth and operational excellence.

• MirrorEye sales set a new record at $33 million, up 11% from the prior quarter and 32% year-over-year, with over 150,000 systems produced globally.

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

• Outperformed weighted average OEM end markets by approximately 15% in Q1 2026, despite a 9.1% decline in those markets.

• Sale of Control Devices segment completed January 30, 2026, with results presented as discontinued operations.

Financial highlights

• Q1 2026 sales were $160.8 million, with adjusted gross margin expanding by 400 basis points to 21.7% and adjusted operating margin improving by 180 basis points sequentially.

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

• Net loss for Q1 2026 was $27.0 million, including a $9.2 million loss on disposal of Control Devices; adjusted net loss was $20.9 million.

• Stoneridge Brazil sales grew 9.4% sequentially to $18.1 million, with local OEM sales up 54% and adjusted operating income of $1.7 million (9.5% margin).

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

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 breakeven 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.