Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrated a positive sales trajectory in its Q2/25 financial performance, with the Control Devices segment reporting $71.2 million in sales, marking a 1.9% increase driven by higher production volumes in the North American passenger vehicle market. The Electronics segment significantly contributed to overall revenue, recording $149.6 million in sales—a notable 6.4% sequential growth attributed to favorable foreign exchange impacts and a remarkable 21% increase in MirrorEye sales. Additionally, Stoneridge Brazil experienced a robust performance with $15.3 million in sales, reflecting a 6.0% increase from the prior quarter, supported by favorable foreign exchange conditions and higher aftermarket product sales.

Stoneridge Inc. reported a significant 39% decline in adjusted operating income to $4.2 million in Q2/25, largely attributed to rising material costs and increased Selling, General & Administrative (SG&A) expenses, despite some relief from quality-related costs. Furthermore, forecasted North American commercial vehicle production volumes are expected to decline by approximately 17.5% in 2025, contributing to a projected 2.2% reduction in the company’s weighted average end markets, further compounding financial pressures. Additionally, year-over-year performance revealed a 2.6% decrease in Electronics sales and a sharp decline in the adjusted operating margin by 490 basis points, indicating ongoing challenges within the company's primary revenue-generating segment.