Standard Motor Q2 Earnings Surpass Estimates, Sales Jump Year-Over-Year

Strong Performance in Q2 2025

Standard Motor Products (SMP) delivered impressive results for the second quarter of 2025, with adjusted earnings per share (EPS) reaching $1.29. This surpassed the Zacks Consensus Estimate of 97 cents and marked a significant increase from the 98 cents reported in the same period in 2024. The company’s total revenues climbed to $493.9 million, exceeding the estimated $450 million and reflecting a year-over-year growth from $389.8 million.

Gross profit also saw a notable rise, increasing to $152.5 million compared to $111.4 million in the previous year. Operating income reached $46.3 million, up from $30 million in the prior-year quarter, showcasing strong operational performance.

Segmental Results

The Vehicle Control segment contributed significantly to the overall growth, reporting revenues of $201.7 million, a 6.9% increase from the previous year. This exceeded the estimated $178.9 million, with operating income rising to $17.1 million from $16.1 million.

The Temperature Control segment recorded revenues of $131.4 million, up from $124.5 million in the same period last year. This was driven by early customer orders in anticipation of the season. Operating income for this segment increased to $19.5 million, surpassing the expected $15.6 million.

In contrast, the Engineered Solutions segment faced a decline, with revenues falling to $70.3 million, a drop of 8.2% year over year. This missed the estimated $80.6 million, and operating income decreased to $4 million from $6.2 million.

The Nissens Automotive segment performed well, with revenues reaching $90.5 million, surpassing the estimated $69.5 million. Operating income for the segment rose to $12.8 million, which was higher than the projected $4.9 million.

Financial Position and Dividend

As of June 30, 2025, Standard Motor Products had $58.8 million in cash, an increase from $44.4 million as of December 31, 2024. Long-term debt stood at $605.8 million, compared to $535.2 million at the end of 2024. Net cash used by operating activities totaled $5.9 million during the second quarter of 2025.

Selling, general, and administrative expenses rose by 28.1% to $107.5 million. The company also declared a quarterly dividend of 31 cents per share, set to be paid on September 2, 2025, to stockholders of record as of August 15, 2025.

Updated Guidance for 2025

For the full year 2025, Standard Motor Products has raised its sales growth expectations to the low-20s percent range, up from the previous estimate of mid-teens. The company reaffirmed its adjusted EBITDA guidance, projecting it to be in the range of 10-11% of total revenues.

Zacks Rank and Key Picks

Currently, SMP holds a Zacks Rank of #3 (Hold). However, there are other stocks in the auto sector that have a stronger Zacks Rank. For instance:

• Ferrari N.V. (RACE) has a Zacks Rank of #1 (Strong Buy), with a projected year-over-year earnings growth of 12.1% for 2025.
• PHINIA Inc. (PHIN) also carries a Zacks Rank of #1, with a forecasted sales growth of 0.58% and earnings growth of 13.99% for 2025.
• Modine Manufacturing Company (MOD) has a Zacks Rank of #1, with anticipated fiscal 2026 sales and earnings growth of 11.31% and 14.32%, respectively.

These companies have seen improvements in their EPS estimates over the past 30 days, indicating positive sentiment among analysts.