Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrated a strong performance in Q2/25, with the Electronics segment achieving a sales increase of 6.4% sequentially to reach $149.6 million, driven by record sales growth of 21% in its MirrorEye product line and favorable foreign exchange translation. The Control Devices segment also reported sales of $71.2 million, reflecting a 1.9% sequential increase, attributed to higher production volumes in the North American passenger vehicle market. Additionally, the Stoneridge Brazil segment experienced a notable sales growth of 6.0% relative to Q1/25, primarily due to favorable foreign exchange effects and increased aftermarket product sales, which underscores the company’s solid revenue diversification across its segments and geographical markets.

Stoneridge Inc. has reported a significant decline in adjusted operating income for Q2/25, with a 39% drop to $4.2 million, primarily attributed to increased material costs and higher selling, general, and administrative (SG&A) expenses, despite some relieve from lower quality-related costs. Additionally, the company's Electronics segment experienced a year-over-year sales decrease of 2.6% alongside a 490 basis points decline in its adjusted operating margin, now at 2.8%. The outlook is further hampered by IHS forecasting a 2.2% reduction in Stoneridge's weighted average end markets, driven by a projected 17.5% decline in North American commercial vehicle production volumes in 2025.