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

• Second quarter net sales of $501.6 million with adjusted net sales up 6.7% to $526.7 million
• Second quarter diluted earnings per share of $1.39 with non-GAAP diluted earnings per share of $1.40 up 8.6%
• Year-to-date 2026 operating cash flow improved $64.2 million; Net debt leverage declined to 2.5x
• Reaffirming full-year guidance of low to mid-single digit sales growth and adjusted EBITDA margin of 11% - 12%

NEW YORK, Aug. 4, 2026 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three and six months ended June 30, 2026.

Consolidated net sales for the second quarter of 2026 were $501.6 million, compared to consolidated net sales of $493.9 million during the same quarter in 2025. Consolidated adjusted net sales for the second quarter of 2026 were $526.7 million, compared to consolidated adjusted net sales of $493.9 million during the same quarter in 2025. Earnings from continuing operations for the second quarter of 2026 were $31.8 million or $1.39 per diluted share, compared to earnings of $26.3 million or $1.17 per diluted share in the second quarter of 2025. Non-GAAP earnings from continuing operations for the second quarter of 2026 were $31.9 million or $1.40 per diluted share, compared to $28.9 million or $1.29 per diluted share in the second quarter of 2025. 

Consolidated net sales for the six months ended June 30, 2026 were $952.8 million, compared to consolidated net sales of $907.2 million during the comparable period in 2025.  Consolidated adjusted net sales for the six months ended June 30, 2026 were $977.9 million, compared to consolidated adjusted net sales of $907.2 million during the comparable period in 2025.  Earnings from continuing operations for the six months ended June 30, 2026 were $50.1 million or $2.20 per diluted share, compared to $40.0 million or $1.79 per diluted share in the comparable period of 2025.  Non-GAAP earnings from continuing operations for the six months ended June 30, 2026 and 2025 were $50.5 million or $2.23 per diluted share and $46.9 million or $2.10 per diluted share, respectively. 

Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "Overall we were pleased with our second quarter. Adjusted net sales for the quarter, excluding the impact of accounting treatment for tariff refunds received in the quarter, increased 6.7% with three of our four operating segments showing strong gains, while adjusted EBITDA increased to a record-setting $63.5 million."

Second Quarter Highlights:

North American Aftermarket Segments

• Vehicle Control adjusted net sales decreased 1.6% in the second quarter, largely due to timing of customer orders as we come off of a very strong first quarter. Year-to-date adjusted net sales are up 4.7% for the segment. Our wire sets category was down significantly, making up the majority of the segment shortfall, reflecting a combination of slow secular decline and customers right-sizing their inventories accordingly. Customer POS for the segment continued to be positive throughout the quarter, demonstrating ongoing demand for our non-discretionary offering.

We were pleased to consummate our joint venture with Techstrong in the quarter, as previously announced. This will strengthen our Vehicle Control operations by expanding our breadth of manufacturing, further diversifying our global supply chain, and creating a long-term cost-effective operation on which to build. We welcome them to the SMP family.

• Temperature Control adjusted net sales increased 15.7%, as the timing of our preseason orders fell more heavily into our second quarter this year, driving strong results despite the cooler, wetter weather in May. Year-to-date adjusted net sales are up 9.6%. Ultimately this seasonal segment's full-year performance will be determined by the length and intensity of the selling season and as we enter our third quarter weather trends appear to be favorable for sales in many of our markets, however we are up against a strong comparison in the second half of the year.

Nissens

Nissens adjusted net sales increased 4.8% to $94.9 million, driven by a combination of 2.3% sales growth in local currency as well as a stronger currency conversion. Year-to-date we are up 8.0% for the segment. We are pleased with the gains in our engine efficiency product categories, and as we head into the third quarter, record temperatures across Europe bode well for our air conditioning products.  Further, we are encouraged by the early results seen in our recently launched product categories and view these products as steady contributors to growth in future years.

Engineered Solutions

Adjusted net sales in the Engineered Solutions segment showed strong growth of 16.8% over last year's soft second quarter as demand continues to recover. Sales growth improvement was seen across all end-markets, and we are pleased to see the segment demand stabilize. We expect this to continue, though the comparison will get tougher in the second half of the year.     

Profitability & Balance Sheet

Adjusted EBITDA for the quarter increased to $63.5 million, up from $59.1 million last year, driven by solid performance across our Temperature Control, Nissens and Engineered Solutions segments. Vehicle Control EBITDA was negatively impacted by increased distribution and associated expenses related to our Shawnee, Kansas distribution center transition.   

From a balance sheet perspective, our cash flows and borrowings were in line with expectations.  Total net debt at quarter-end stood at $510.2 million, down from $599.4 million at the end of the first quarter, reflecting debt paydown as we move into our seasonally stronger cash-generating quarters.  Importantly, we reduced our inventory to $684.2 million from $727.9 million at December 31, 2025.  Our net debt leverage decreased to 2.5x from 3.0x in the first quarter of 2026, 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 reaffirm our expectation that adjusted EBITDA will be in a range of 11% -12%. Note that our guidance excludes the impact of ongoing changes in the tariff landscape, any significant inflationary impact from the conflict in the Middle East, or increase in interest rates impacting our customers' supply chain financing programs. 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 September 1, 2026 to stockholders of record on August 14, 2026.

Closing Remarks

In closing, Mr. Sills commented, "As we head into the second half of the year, we are encouraged by the performance across all our segments.  The resiliency of the aftermarket in both North America and Europe remains intact, evidenced by strong demand for our non-discretionary products, and we are pleased with the ongoing momentum in our Engineered Solutions business.  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 Tuesday, August 4, 2026. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q2'26 Earnings Call  Webcast link. Investors may also listen to the call by dialing 800-445-7795 (domestic) or 785-424-1699 (international).  The conference call ID code is SMP2Q2026. 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 800-723-0389 (domestic) or 402-220-2647 (international).

Forward-Looking Statements

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.

Use and Definition of Non-GAAP Measures

We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance and balance sheet health. Other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

When we provide our expectations for adjusted EBITDA, adjusted EBITDA margin and net debt leverage, a reconciliation of this non-GAAP financial measure to the corresponding GAAP measures is not available without unreasonable effort due to potentially high variability and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. Below are our non-GAAP financial measures:

June 30,

Net Sales

Net Sales

Net Sales

Net Sales

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SOURCE Standard Motor Products, Inc.