Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrated solid financial performance in Q2/25, with Control Devices reporting a sales increase of 1.9% driven by higher production volumes in the North American passenger vehicle segment. The Electronics segment also showed robust growth, achieving a 6.4% sequential sales increase to $149.6 million, bolstered by record sales growth of 21% in the MirrorEye product line, despite some challenges in the European market. Additionally, Stoneridge Brazil experienced a sales boost of 6.0% relative to Q1/25, driven by favorable foreign exchange impacts and increased aftermarket product sales, further contributing to the company's positive outlook.

Stoneridge Inc. has reported a significant decline in adjusted operating income, which fell by 39% to $4.2 million in Q2/25, primarily due to higher material costs and escalating selling, general, and administrative (SG&A) expenses. Additionally, the company is facing a projected decline in North American commercial vehicle production volumes, expected to decrease by approximately 17.5% in 2025, which could adversely impact its revenue streams. Furthermore, the Electronics segment experienced a year-over-year sales decrease of 2.6%, coupled with an adjusted operating margin drop of 490 basis points to 2.8%, highlighting ongoing pressures on profitability.