Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. has demonstrated a robust financial performance in Q2 2025, with its Control Devices segment achieving sales of $71.2 million, reflecting a 1.9% sequential increase driven by higher production volumes in North American passenger vehicles. The Electronics segment also exhibited strong growth, generating $149.6 million in sales, which marks a 6.4% sequential rise, primarily fueled by favorable foreign exchange translations and substantial growth in MirrorEye sales. Additionally, Stoneridge Brazil reported a 6.0% increase in sales to $15.3 million, bolstered by favorable currency effects and rising aftermarket product sales, indicating strong growth dynamics across multiple segments and geographies.

Stoneridge Inc. reported a significant decline in adjusted operating income for Q2/25, plummeting by 39% to $4.2 million primarily due to rising material costs and increased selling, general, and administrative (SG&A) expenses. Additionally, the company's Electronics sales saw a year-over-year decrease of 2.6%, alongside a notable drop in adjusted operating margin by 490 basis points to 2.8%. Furthermore, market forecasts indicate a troubling trend, with North American commercial vehicle production expected to decline by approximately 17.5% in 2025, reflecting an overall negative outlook for the company’s financial performance in the near term.