Stoneridge (NYSE:SRI) reported second-quarter 2026 results that exceeded its internal expectations, supported by organic sales growth, record MirrorEye revenue, improved cost discipline and stronger cash generation. The company reaffirmed its full-year revenue and adjusted EBITDA outlook while citing improving conditions in commercial vehicle markets.
President and Chief Executive Officer Natalia Noblet said Stoneridge’s revenue, excluding foreign-currency effects and revenue tied to a Mexico Manufacturing Agreement following the sale of its Control Devices segment, grew nearly 8% from a year earlier. She described the result as the company’s fastest organic growth rate in more than two years.
Revenue Growth and Profitability Efforts
Chief Financial Officer Scott Humphrey said second-quarter revenue totaled $181 million, up more than 15% from the prior-year quarter. The increase included about $4 million from favorable currency translation and $7 million of contract manufacturing revenue associated with the Mexico Manufacturing Agreement. Excluding those items, core revenue rose nearly 8%.
Growth was led by North American commercial vehicle activity, record MirrorEye sales and double-digit expansion at Stoneridge Brazil, Humphrey said. Stoneridge’s organic revenue growth outpaced its weighted average OEM end markets, which declined nearly 2% during the quarter, according to Noblet.
Adjusted gross profit margin declined 277 basis points year over year to 20.3%. Humphrey attributed the decline to higher material expense from currency translation losses, discrete inventory-related costs associated with a shift in North American MirrorEye adoption from retrofit products toward factory-built systems, and lower sales of the Smart 2 tachograph following the completion of a European regulatory retrofit campaign in 2025.
Despite the gross-margin pressure, adjusted operating income margin improved by 100 basis points. Selling, general and administrative expense fell to 14.3% of revenue, an improvement of 182 basis points from a year earlier. Humphrey said that while quarterly sales increased by $24 million year over year, SG&A expense increased by less than $400,000.
Adjusted EBITDA was $5.5 million, representing the company’s highest quarterly adjusted EBITDA from continuing operations in two years. Adjusted EBITDA margin expanded 251 basis points to 3% of sales.
MirrorEye Sets Another Sales Record
MirrorEye, Stoneridge’s camera-monitoring technology, generated a quarterly record of $37 million in revenue, up 39% from the prior-year period and 10% from the first quarter of 2026. Noblet said the growth reflected European OEM programs, continued market penetration and take-rate strength, along with the ramp-up of recently launched North American programs.
Stoneridge announced a new bus and coach program award with a leading global commercial vehicle manufacturer. The program represents an estimated $42 million in lifetime revenue and is expected to reach full commercialization in 2027.
The award uses the MirrorEye MP II system, which was designed for buses and coaches and includes Blind Spot Information System and Moving Off Information System capabilities, as well as digital video output for recording and analysis. Noblet said MirrorEye systems are now used in more than 20 bus and coach programs, in addition to truck applications and expansion into agriculture and off-highway markets.
During the question-and-answer session, Noblet said the technology’s North American Class 8 opportunity is concentrated among four key OEMs, while Europe has roughly four to five principal OEMs. She said European MirrorEye take rates are about 35% to 50%, depending on the vehicle model, while North American take rates are about 5% to 15% depending on the customer.
Noblet also said Stoneridge is pursuing agriculture and heavy-equipment applications for MirrorEye and other vision products, with dedicated teams serving those customer segments in North America and Europe.
Brazil Results and Balance Sheet
Stoneridge Brazil reported record second-quarter revenue of $20.5 million, up 38% from the prior year. Excluding an approximately $2 million currency-translation benefit, revenue increased nearly 26%. Humphrey said the quarter benefited from a temporary competitive supply disruption, while also reflecting Stoneridge’s efforts to realign its product lineup and expand business with new and existing OEM customers.
Brazil adjusted operating income was about $2.3 million, or 11.2% of sales, with adjusted operating margin improving 464 basis points year over year.
As of June 30, Stoneridge held approximately $72 million in cash and had $151 million in total debt, compared with $46 million in cash and $164 million in total debt a year earlier. The company said net debt declined by $39 million, aided by proceeds from the Control Devices sale and tighter working-capital management.
Inventory declined by about $5 million year over year, while electronics segment days in inventory fell by 15 days. Cash from operations totaled just over $12 million in the quarter, a 38% improvement from the prior year.
Stoneridge is pursuing a refinancing to replace its existing credit facility, which matures in July 2027. Humphrey said the company has had constructive discussions with banking partners and remains on schedule to complete the process by the end of November.
Full-Year Outlook Reaffirmed
The company reaffirmed its 2026 guidance for revenue of $645 million to $670 million and adjusted EBITDA of $20 million to $25 million. Stoneridge expects both revenue and EBITDA to improve year over year in the second half, supported by commercial vehicle production, MirrorEye adoption and continued momentum in Brazil.
Humphrey said third- and fourth-quarter revenue is expected to be modestly below second-quarter levels due primarily to normal seasonality. However, EBITDA is expected to improve sequentially during the remainder of the year through operational efficiencies, overhead actions and inflationary cost recovery measures.
Stoneridge expects product-mix and strategic inventory costs experienced in the second quarter to become less significant during the rest of 2026. The company also expects working-capital investment to increase later in the year as several OEM programs prepare to ramp in early 2027, which could affect the timing of cash generation.
About Stoneridge (NYSE:SRI)
Stoneridge, Inc (NYSE: SRI) is a global developer and manufacturer of highly engineered electrical and electronic components for the automotive and commercial vehicle markets. The company’s product offerings span a range of safety, convenience and control systems, delivering tailored solutions that help original equipment manufacturers (OEMs) meet increasingly stringent regulatory and performance requirements.
Among Stoneridge’s core products are rearview and side-view mirror systems, camera-based advanced driver assistance systems (ADAS) and interior and exterior lighting solutions.
