Standard Motor Products Reports Strong Q2 2025 Growth, Raises Guidance

Standard Motor Products, Inc. (SMP) announced robust financial results for the second quarter of 2025, showcasing significant growth in net sales and earnings. The company reported net sales of $493.9 million, marking a remarkable increase of 26.7% compared to $389.8 million in the same quarter of 2024. This growth reflects the ongoing strength of SMP’s operations, particularly in its North American aftermarket segments.

Earnings from continuing operations for the second quarter reached $26.3 million, or $1.17 per diluted share, up from $18.0 million or $0.81 per diluted share in 2024. When adjusted for non-operational items, earnings increased to $28.9 million, equivalent to $1.29 per diluted share, a 31.6% year-over-year rise. The company has also raised its full-year sales growth guidance to the low 20s percent range, reflecting strong performance in the first half of the year.

Segment Performance and Strategic Updates

SMP’s success was driven by several key segments. In the North American aftermarket, Vehicle Control sales rose nearly 7%, supported by strong customer orders. Temperature Control sales increased 5.5%, following a challenging year-over-year comparison, as last year’s growth was 28%. The company reported that early pre-season orders positioned customers well for the selling season.

The recently acquired Nissens segment contributed $90.5 million in sales, achieving an adjusted EBITDA margin of 18.0%, exceeding expectations. SMP is on track to achieve cost reduction synergies of $8-12 million within 24 months of the acquisition. The integration process is progressing well, with more than 800 new items launched in North America.

Despite a slight decline of 8.3% in the Engineered Solutions segment, SMP anticipates that demand is stabilizing, and comparisons in the second half of the year will become easier.

Financial Health and Future Outlook

The company’s adjusted EBITDA for the quarter increased to $59.1 million, up from $39.5 million in the previous year, driven by strong performance across segments. The adjusted EBITDA margin increased to 12.0%, reflecting the higher performance of Nissens and operational efficiency.

From a balance sheet perspective, total net debt at the end of the quarter stood at $577.8 million, primarily due to borrowings related to the Nissens acquisition. SMP has targeted a reduction in debt levels to 2.0x Adjusted EBITDA by the end of 2026.

SMP opened a new 575,000 square foot distribution center in Shawnee, Kansas, enhancing its distribution capabilities across the United States. This facility increases the company’s overall distribution footprint by over 200,000 net square feet.

In response to tariff impacts, SMP has implemented a mitigation plan that includes cost-sharing with suppliers and sourcing from lower-tariff countries. The company remains optimistic about offsetting costs through pricing strategies.

The Board of Directors declared a quarterly dividend of 31 cents per share, to be paid on September 2, 2025, to shareholders of record on August 15, 2025.

In concluding remarks, Chairman and CEO Eric Sills expressed satisfaction with the company’s performance, stating, “The first half of 2025 exceeded our expectations despite the volatile macroeconomic environment.” He highlighted the resilience of the North American aftermarket segments and the strong integration of Nissens, reaffirming SMP’s optimistic outlook for the future.

A conference call to discuss these results will be held on August 5, 2025, at 11:00 AM Eastern Time. Investors can access the call via the company’s website or by telephone.