Standard Motor Products, Inc. Releases First Quarter 2026 Results and Quarterly Dividend

Published: 2026-04-30 08:32:12 ET SMP

Published on 04/30/2026 at 08:32 am EDT

NEW YORK, April 30, 2026 /PRNewswire/ -- 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, 2026.

Net sales for the first quarter of 2026 were $451.2 million, compared to consolidated net sales of $413.4 million during the same quarter in 2025. Earnings from continuing operations for the first quarter of 2026 were $18.3 million or $0.81 per diluted share, compared to earnings of $13.7 million or $0.61 per diluted share in the first quarter of 2025. 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 2026 were $18.6 million or $0.82 per diluted share, compared to $18.0 million or $0.81 per diluted share in the first quarter of 2025.

Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "We are quite pleased with our performance in the first quarter. Sales for the quarter increased 9.1%, with all segments performing well, reflecting a continuation of the steady customer demand experienced throughout last year.

First Quarter Highlights:

North American Aftermarket Segments

Nissens

Nissens sales increased 12.4% to $74.4 million, driven by a stronger currency conversion. Our sales grew 2.7% in local currency against a difficult comparison. 2025 was marked by robust first half customer orders, while this year has returned to a more normal cadence. As we are now into our second year of ownership, we begin to look towards growth related to recently launched product categories and remain excited about the multitude of opportunities ahead.

Engineered Solutions

Sales in the Engineered Solutions segment showed solid growth of 12.6% over last year's soft first quarter as demand continues to recover. Sales growth was aided by recovery in commercial vehicle and power sports end-markets, driven by ordering patterns with certain customers.

Profitability & Balance Sheet

Adjusted EBITDA for the quarter increased to $44.5 million, up from $42.8 million last year, driven by solid performance across our North American Aftermarket segments. Nissens EBITDA was negatively impacted by currency transaction losses on sourcing this quarter, and Engineered Solutions experienced temporary unfavorable manufacturing variances as well as certain inflationary headwinds.

From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $599.4 million, primarily reflecting an increase over year-end due to seasonal working capital build as sales ramp-up each year during the first quarter. Importantly, our inventory declined slightly in the quarter as we were well prepared for sales orders coming into the year. Our net debt leverage increased modestly to 3.0x due to seasonal working capital build, and we continue to target reducing net debt levels to 2.0x adjusted EBITDA by the end of 2026.

2026 Guidance Update

Our outlook for the full year of 2026 reaffirms our expectation that sales growth will be in the low to mid-single digit range driven by ongoing tailwinds for professional grade non-discretionary products in the North American aftermarket, continuing momentum in our European business, and an ongoing recovery in Engineered Solutions, offset by a lapping of both tariff pricing and the benefits of stronger currency conversion.

Further, we expect Adjusted EBITDA will be in a range of 11% -12%, aided by initiatives we have underway to drive ongoing profitability gains, partially offset by margin compression attributable to passing through tariffs at cost, which began in the second half of 2025. Note that our guidance excludes the impact of ongoing changes in the tariff landscape, or any significant inflationary impact from the conflict in the Middle East. We intend to address these pressures with our usual combination of cost savings and pricing programs.

Dividends

The Board of Directors has approved payment of a quarterly dividend of 33 cents per share on the common stock outstanding, which will be paid on June 1, 2026, to stockholders of record on May 15, 2026.

Closing Remarks

In closing, Mr. Sills commented, "We are off to a strong start to 2026 and are encouraged by the overall trends across our segments. While the near-term macroeconomic and tariff-related volatility persists, we continue to find ways to perform well in a challenging environment, and leverage our market leadership and the nondiscretionary nature of our products. We are excited about our global opportunities to drive growth and profitability and look forward to another year to deliver value to all our shareholders. I would like to thank our employees for their hard work and commitment to our continued success."

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, April 30, 2026. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q1'26 Earnings Call Webcast link. Investors may also listen to the call by dialing 800-267-6316 (domestic) or 203-518-9783 (international). The conference call ID code is SMP1Q2026. 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 800-934-8340 (domestic) or 402-220-6993 (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)

2026

2025

Net sales

$ 451,166

$ 413,379

Cost of sales

311,993

288,657

Gross profit

139,173

124,722

Selling, general and administrative expenses

104,837

99,845

Restructuring expenses

366

673

Other income, net

123

258

Operating income

34,093

24,462

Other non-operating income (loss), net

(1,279)

2,248

Interest expense

7,518

7,761

Earnings from continuing operations before income taxes

25,296

18,949

Provision for income taxes

6,826

5,069

Earnings from continuing operations

18,470

13,880

Loss from discontinued operations, net of income taxes

(1,185)

(1,139)

Net earnings

17,285

12,741

Net earnings attributable to noncontrolling interest

149

175

Net earnings attributable to SMP

$ 17,136

$ 12,566

Net earnings (loss) attributable to SMP

Continuing operations

$ 18,321

$ 13,705

Discontinued operations

(1,185)

(1,139)

Net earnings attributable to SMP per common share

$ 17,136

$ 12,566

Per common share data

Basic:

Continuing operations

$ 0.83

$ 0.63

Discontinued operations

(0.06)

Net earnings attributable to SMP per common share

$ 0.77

$ 0.57

Diluted:

Continuing operations

$ 0.81

$ 0.61

Discontinued operations

(0.06)

(0.05)

Net earnings attributable to SMP per common share

$ 0.75

$ 0.56

Dividend declared per common share

$ 0.33

$ 0.31

Weighted average number of common shares, basic

22,167,006

21,886,810

Weighted average number of common shares, diluted

22,719,732

22,319,868

Standard Motor Products, Inc.

Segment Revenues

Three Months Ended

March 31,

(in thousands, unaudited)

2026

2025

Vehicle Control

Engine Management (Ignition, Emissions and Fuel Delivery)

$ 141,087

$ 118,366

Electrical and Safety

57,866

58,319

Wire Sets and Other

14,886

15,657

Total Vehicle Control

213,839

192,342

Temperature Control

AC System Components

65,198

67,191

Other Thermal Components

24,306

21,692

Total Temperature Control

89,504

88,883

Nissens Automotive

Air Conditioning

26,273

27,166

Engine Cooling

31,451

27,773

Engine Efficiency

16,643

11,243

Total Nissens Automotive

74,367

66,182

Engineered Solutions

Light Vehicle

22,920

21,404

Commercial Vehicle

22,908

18,605

Construction/Agriculture

9,504

9,408

All Other

18,980

16,555

Total Engineered Solutions

74,312

65,972

Intersegment sales

(856)

—

Total

$ 451,166

$ 413,379

Standard Motor Products, Inc.

Segment Operating Profit

Three Months Ended

March 31,

(in thousands, unaudited; percentage of net sales)

2026

2025

Gross Margin

Vehicle Control

$ 68,165

31.9 %

$ 62,161

32.3 %

Temperature Control

28,652

32.0 %

27,598

31.0 %

Nissens Automotive

32,071

43.1 %

27,838

42.1 %

Engineered Solutions

10,285

13.8 %

11,709

17.7 %

All Other

—

Subtotal

$ 139,173

30.8 %

$ 129,306

31.3 %

Acquisition Expenses

—

— %

(4,584)

-1.1 %

Gross Margin

$ 139,173

30.8 %

$ 124,722

30.2 %

Selling, General & Administrative

Vehicle Control

$ 47,962

22.4 %

$ 43,835

22.8 %

Temperature Control

18,058

20.2 %

19,823

22.3 %

Nissens Automotive

24,200

32.5 %

20,254

30.6 %

Engineered Solutions

8,556

11.5 %

8,514

12.9 %

All Other

6,059

6,856

Subtotal

$ 104,835

23.2 %

$ 99,282

24.0 %

Acquisition Expenses

— %

563

0.1 %

Selling, General & Administrative

$ 104,837

23.2 %

$ 99,845

24.2 %

Operating Income

Vehicle Control

$ 20,203

9.4 %

$ 18,326

9.5 %

Temperature Control

10,594

11.8 %

7,775

8.7 %

Nissens Automotive

7,871

10.6 %

7,584

11.5 %

Engineered Solutions

1,729

2.3 %

3,195

4.8 %

All Other

(6,059)

(6,856)

Subtotal

$ 34,338

7.6 %

$ 30,024

7.3 %

Restructuring

(366)

-0.1 %

(673)

-0.2 %

Acquisition & Integration Expenses

(2)

— %

(5,147)

-1.2 %

Other Income, Net

123

— %

258

0.1 %

Operating Income

$ 34,093

7.6 %

$ 24,462

5.9 %

Standard Motor Products, Inc.

Reconciliation of GAAP and Non-GAAP Measures

(In thousands, except per share amounts, unaudited)

Three Months Ended

March 31,

2026

2025

Earnings from Continuing Operations Attributable To SMP

GAAP Earnings from Continuing Operations

$ 18,321

$ 13,705

Restructuring Expenses

366

673

Acquisition & Integration Expenses

5,147

Income Tax Effect Related To Reconciling Items

(96)

(1,513)

Non-GAAP Earnings from Continuing Operations

$ 18,593

$ 18,012

Diluted Earnings Per Share from Continuing Operations Attributable to SMP

GAAP Diluted Earnings Per Share from Continuing Operations

$ 0.81

$ 0.61

Restructuring Expenses

0.01

0.03

Acquisition & Integration Expenses

—

0.23

Income Tax Effect Related To Reconciling Items

—

(0.06)

Non-GAAP Diluted Earnings Per Share from Continuing Operations

$ 0.82

$ 0.81

Operating Income

GAAP Operating Income

$ 34,093

$ 24,462

Restructuring Expenses

366

673

Acquisition & Integration Expenses

5,147

Last Twelve Months Ended

Other Income, Net

(123)

(258)

March 31,

Year Ended

Non-GAAP Operating Income

$ 34,338

$ 30,024

2026

2025

December 31, 2025

EBITDA without Special Items

GAAP Earnings from Continuing Operations Before Taxes

$ 25,296

$ 18,949

$ 116,870

$ 79,567

$ 110,523

Depreciation and Amortization

11,315

10,267

44,896

34,379

43,848

Interest Expense

7,518

7,761

31,096

19,206

31,339

EBITDA

44,129

36,977

192,862

133,152

185,710

Restructuring Expenses

366

673

2,273

8,149

2,580

Acquisition & Integration Expenses

5,147

3,438

18,623

8,583

Customer Program Wind Down

—

4,067

—

4,067

Special Items

368

5,820

9,778

26,772

15,230

EBITDA without Special Items

$ 44,497

$ 42,797

$ 202,640

$ 159,924

$ 200,940

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, 2026

(In thousands, unaudited)

Vehicle Control

Temperature Control

Nissens Automotive

Engineered Solutions

All Other

Consolidated

Operating Income

GAAP Operating Income

$ 19,613

$ 10,843

$ 7,873

$ 1,822

$ (6,058)

$ 34,093

Restructuring Expenses

272

—

366

Acquisition & Integration Expenses

—

Other (Income) Expense, Net

319

(320)

(5)

(117)

—

(123)

Non-GAAP Operating Income

$ 20,204

$ 10,593

$ 7,870

$ 1,729

$ (6,058)

$ 34,338

EBITDA without Special Items

GAAP Earnings from Continuing Operations Before Taxes

$ 17,877

$ 10,393

$ 1,361

$ 1,937

$ (6,272)

$ 25,296

Depreciation and Amortization

4,297

808

3,266

2,594

350

11,315

Interest Expense

1,864

738

4,647

567

(298)

7,518

EBITDA

24,038

11,939

9,274

5,098

(6,220)

44,129

Restructuring Expenses

272

—

366

Acquisition & Integration Expenses

—

Special Items

272

—

368

EBITDA without Special Items

$ 24,310

$ 12,009

$ 9,276

$ 5,122

$ (6,220)

$ 44,497

% of Net Sales

11.4 %

13.4 %

12.5 %

6.9 %

9.9 %

Three Months Ended March 31, 2025

(In thousands, unaudited)

Vehicle Control

Temperature Control

Nissens Automotive

Engineered Solutions

All Other

Consolidated

Operating Income

GAAP Operating Income

$ 17,782

$ 7,900

$ 2,587

$ 3,176

$ (6,983)

$ 24,462

Restructuring Expenses

526

136

—

(9)

673

Acquisition & Integration Expenses

—

5,011

—

136

5,147

Other Income, Net

(261)

(14)

(1)

—

(258)

Non-GAAP Operating Income

$ 18,326

$ 7,775

$ 7,584

$ 3,195

$ (6,856)

$ 30,024

EBITDA without Special Items

GAAP Earnings from Continuing Operations Before Taxes

$ 17,046

$ 7,948

$ (2,151)

$ 3,431

$ (7,325)

$ 18,949

Depreciation And Amortization

3,669

778

2,987

2,500

333

10,267

Interest Expense

1,007

539

5,620

459

136

7,761

EBITDA

21,722

9,265

6,456

6,390

(6,856)

36,977

Restructuring Expenses

526

136

—

(9)

673

Acquisition & Integration Expenses

—

5,011

—

136

5,147

Special Items

526

136

5,011

127

5,820

EBITDA without Special Items

$ 22,248

$ 9,401

$ 11,467

$ 6,410

$ (6,729)

$ 42,797

% of Net Sales

11.6 %

10.6 %

17.3 %

9.7 %

10.4 %

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.

Consolidated Balance Sheets

(In thousands, except share and per share data)

March 31, 2026

March 31, 2025

December 31, 2025

ASSETS

(Unaudited)

CURRENT ASSETS:

Cash

$ 59,207

$ 50,276

$ 72,031

Accounts receivable, less allowances for discounts and expected credit losses of $10,159 for 2026 and $7,157 and $10,043 for March and December 2025, respectively

312,961

280,795

232,020

Inventories

726,308

658,728

727,922

Prepaid expenses and other current assets

21,069

26,282

18,477

Total current assets

1,119,545

1,016,081

1,050,450

Property, plant and equipment, net of accumulated depreciation of $299,761 for 2026 and $279,885 and $300,283 for March and December 2025, respectively

186,442

174,636

188,562

Operating lease right-of-use assets

102,003

112,022

105,178

Goodwill

253,626

246,115

256,159

Customer relationships intangibles, net

204,526

212,378

212,056

Other intangibles, net

97,303

93,087

99,102

Deferred income taxes

25,599

14,064

25,384

Investments in unconsolidated affiliates

26,685

26,013

26,310

Other assets

32,570

31,695

32,040

Total assets

$ 2,048,299

$ 1,926,091

$ 1,995,241

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Current portion of revolving credit facility

$ 30,000

$ 4,350

$ 30,000

Current portion of term loan and other debt

19,370

18,876

21,988

Accounts payable

179,524

151,206

169,089

Sundry payables and accrued expenses

98,246

92,758

92,054

Accrued customer returns

63,710

66,087

49,554

Accrued rebates

75,924

73,050

84,494

Payroll and commissions

34,298

31,050

46,135

Total current liabilities

501,072

437,377

493,314

Long-term debt

609,250

627,329

566,727

Noncurrent operating lease liabilities

90,345

99,885

93,381

Accrued asbestos liabilities

109,783

29,135

112,625

Other accrued liabilities

30,270

79,928

30,932

Total liabilities

1,340,720

1,273,654

1,296,979

Commitments and contingencies

Stockholders' equity:

Common stock – par value $2.00 per share (Authorized – 30,000,000 shares; issued 23,936,036 shares)

47,872

Capital in excess of par value

101,104

99,547

99,005

Retained earnings

599,276

581,174

589,448

Accumulated other comprehensive income

11,664

(13,655)

17,857

Treasury stock – at cost (1,690,616 shares in 2026 and 1,955,013 and 1,790,097 shares in March and December 2025, respectively)

(66,589)

(76,977)

(70,483)

Total SMP stockholders' equity

693,327

637,961

683,699

Noncontrolling interest

14,252

14,476

14,563

Total stockholders' equity

707,579

652,437

698,262

Total liabilities and stockholders' equity

$ 2,048,299

$ 1,926,091

$ 1,995,241

Standard Motor Products, Inc.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

Three Months EndedMarch 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net earnings

$ 17,285

$ 12,741

Adjustments to reconcile net earnings to net cash used in operating activities:

Depreciation and amortization

11,315

10,267

Amortization of deferred financing cost

278

327

(Decrease) increase to allowance for expected credit losses

(124)

1,614

Increase to inventory reserves

901

1,843

Equity income from joint ventures

(669)

(1,084)

Employee stock ownership plan allocation

822

675

Stock-based compensation

2,989

1,550

Increase in deferred income taxes

(980)

(16)

Loss on discontinued operations, net of tax

1,185

1,139

Change in assets and liabilities:

Increase in accounts receivable

(82,541)

(68,882)

Increase in inventories

(1,966)

(14,576)

(Increase) decrease in prepaid expenses and other current assets

(104)

1,438

Increase in accounts payable

11,419

957

Increase (decrease) in sundry payables and accrued expenses

1,524

(3,185)

Net change in other assets and liabilities

(3,263)

(5,028)

Net cash used in operating activities

(41,929)

(60,220)

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(6,740)

(9,132)

Other investing activities

2,923

Net cash used in investing activities

(6,707)

(6,209)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayments of term loans

(3,938)

(3,853)

Net borrowings under revolving credit facilities

51,437

80,962

Net (repayments) borrowings of other debt and lease obligations

(3,531)

1,985

Purchase of treasury stock

(283)

—

Increase in overdraft balances

191

Dividends paid

(7,308)

(6,777)

Dividends paid to noncontrolling interest

(624)

—

Net cash provided by financing activities

35,846

72,508

Effect of exchange rate changes on cash

(34)

(229)

Net (decrease) increase in cash

(12,824)

5,850

CASH at beginning of period

72,031

44,426

CASH at end of period

$ 59,207

$ 50,276

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SOURCE Standard Motor Products, Inc.