Stoneridge (SRI) Status update summary

Transaction overview

• Completed sale of Control Devices segment to Center Rock Capital Partners for $59 million, effective January 30, 2026, representing approximately 5x expected 2025 Adjusted EBITDA.

• Sale includes Lexington, Ohio, and Suzhou, China facilities; Juarez, Mexico facility retained to support electronics growth.

• Transition services and supply agreements established to ensure smooth handover and continued operations during the transition period.

• Net proceeds from the sale will primarily be used to reduce debt, strengthen the balance sheet, and lower interest expense.

• No significant tax implications expected from the transaction; no debt transferred with the sale.

Strategic focus and growth outlook

• Portfolio now focused on advanced technologies and electronic solutions for commercial vehicle and off-highway markets, with emphasis on Vision and Safety, Connectivity, and Vehicle Intelligence and Electronic Controls.

• Continued expansion of MirrorEye and new product introductions like Connected Trailer and SurroundView, with growth in Brazil and global markets.

• Strategy centers on commercial and off-highway vehicles in North America, South America, and Europe.

• Engineering and cost structure optimized by expanding Brazil as a critical engineering center.

• Record OEM awards and leveraging global relationships and technology leadership for growth.

Financial and operational impact

• Streamlined organization expected to reduce complexity and operating costs, supporting margin and EBITDA expansion.

• Robust pipeline for material cost reduction and quality improvement initiatives.

• Plan to amend and refinance credit facility to align with new business structure and growth expectations.

• Five-year CAGR target of 8%-12% through 2030, aiming to outpace end markets by 2x-3x.

• Updated guidance and long-term targets to be provided in the upcoming fourth quarter call.