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Stoneridge Inc. Reports Mixed Results for Q4 2024

Stoneridge Inc corporate building with financial graphs

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News Summary

Stoneridge Inc., based in Novi, Michigan, has reported a significant loss of $6.1 million for Q4 2024, translating to a loss of 22 cents per share. Despite achieving impressive quarterly revenue of $218.2 million, the company experienced a total loss of $16.5 million for the year. However, there are encouraging signs such as improved cash flow, with $47.7 million generated from operations, above the previous year’s figures. Looking ahead, Stoneridge aims to boost revenue guidance for 2025 and enhance operational efficiency.

Novi, Michigan – Stoneridge Inc. Reports Mixed Results for Q4 2024

In a recent announcement that left many industry watchers curious, Stoneridge Inc., headquartered in Novi, Michigan, revealed a significant loss of $6.1 million for the fourth quarter of 2024. This setback translates into a loss of 22 cents per share, which, when adjusted for non-recurring costs, turns into an 18-cent loss per share.

The company’s revenue for this quarter stood at an impressive $218.2 million. However, as we take a step back and look at the big picture, Stoneridge reported a total loss of $16.5 million for the entire year, equivalent to 60 cents per share. Meanwhile, the annual revenue for 2024 hit an admirable $908.3 million.

Digging Deeper into the Numbers

When it comes to profitability, Stoneridge posted a gross profit of $42.7 million, which represents 19.5% of sales. Moreover, when looking at the adjusted gross figures, things look slightly better, with the gross profit reaching $43.1 million or 19.7% of sales. On a different note, the company recorded an operating loss of $4.4 million or 2.0% of sales, while the adjusted operating loss was a slightly better $4.0 million, or 1.8% of sales.

The adjusted net loss for the final quarter registered at $5.0 million, equating to an adjusted earnings per share (EPS) of 18 cents.

Encouraging Signs Amidst Losses

Despite these losses, Stoneridge boasts a notable improvement in cash flow, with $47.7 million generated from operating activities, compared to the previous year. This impressive boost was largely thanks to a hefty reduction in inventory, totaling $36 million. The company’s operational efficiency is clearly on the up, as reflected in the significant year-over-year jump in free cash flow—an increase of around $56 million.

Looking Ahead: Guidance for 2025 and Beyond

As we set our sights on the future, Stoneridge has established ambitious revenue guidance for 2025, with a target set at a midpoint of $875 million and an EBITDA (earnings before interest, taxes, depreciation, and amortization) forecast of $40 million. For 2026, the company aims to surpass $975 million in revenue, aiming for an EBITDA target of at least $70 million.

Delving into the specifics of their business segments, the Electronics division fared better in the fourth quarter, achieving a sales uptick of 1.8% compared to 2023, largely spurred by new program launches. Conversely, Control Devices witnessed a steep decline in sales, plummeting by 16.3% this quarter, attributed to reduced production volumes.

Business Strategy and Adaptation

Stoneridge is not standing still, though. The company is actively implementing measures aimed at streamlining costs and enhancing operational efficiency. They are also keeping a keen eye on the evolving landscape of tariffs, especially concerning imports from Mexico, remaining flexible with their supply chain and pricing strategies in light of these challenges.

Looking ahead, Stoneridge will shed more light on these results during an upcoming conference call set for February 27, 2025. We’ll be sure to keep you updated with any major takeaways or changes in direction. For now, it seems Stoneridge is on the path of recovery, albeit with some bumps along the way.