Overview

• U.S. vehicle electronics supplier's Q1 sales rose 7.9% yr/yr to $160.8 mln

• Company posted Q1 adjusted net loss of $20.9 mln

• Full-year revenue guidance raised by $20 mln to $645-$670 mln on contract manufacturing deal

Outlook

• Stoneridge raises full-year revenue guidance to $645 mln-$670 mln, up $20 mln vs prior outlook

• Company lifts adjusted operating margin guidance to break-even to 0.5%, up 50 basis points

• Stoneridge reaffirms full-year adjusted EBITDA guidance of $20 mln-$25 mln

Result Drivers

• MANUFACTURING IMPROVEMENTS - Co said improved manufacturing performance, reduced quality-related costs, and favorable net tariff recoveries supported results

• MIRROREYE GROWTH - Record Q1 sales and new program awards for MirrorEye contributed to sales growth, per CEO Natalia Noblet

• CONTRACT MANUFACTURING REVENUE - Incremental contract manufacturing revenue from the Mexico Supply Agreement related to the sale of Control Devices contributed to higher sales

Company press release: ID:nPn7Vgwt5a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		$160.80 mln
Q1 Gross Profit		$35 mln
Q1 Operating Income		-$9 mln

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."

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