Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. reported a sequential sales increase across all its reportable segments in Q2/25, highlighting a 1.9% rise in the Control Devices segment to $71.2 million, supported by enhanced production volumes in the North American passenger vehicle market. The Electronics segment achieved $149.6 million in sales, reflecting a 6.4% increase, primarily due to favorable foreign exchange impacts and a notable 21% growth in MirrorEye sales, despite challenges in the European commercial vehicle market. Additionally, Stoneridge Brazil's sales rose by 6.0% to $15.3 million, driven by favorable foreign exchange effects and increased aftermarket product sales, further solidifying the company’s positive performance outlook.

Stoneridge Inc. experienced a significant decline in adjusted operating income, which fell by 39% to $4.2 million in Q2/25 primarily due to rising material costs and increased selling, general, and administrative (SG&A) expenses. Additionally, the forecast from IHS indicated a further 2.2% reduction in the company's weighted average end markets, exacerbated by a projected 17.5% drop in North American commercial vehicle production volumes in 2025. The company's Electronics segment also faced challenges, with year-over-year sales decreasing by 2.6% and an adjusted operating margin declining to 2.8%, down 490 basis points.