Standard Motor Products, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net sales for the third quarter of 2026 were $507.8 million, compared to $498.8 million in the same quarter of 2025.
• Consolidated adjusted net sales for the third quarter of 2026 were $512.9 million, up 2.8% versus the prior year.
• Earnings from continuing operations for the third quarter of 2026 were $32.6 million ($1.42 per diluted share), compared to $29.8 million ($1.32 per diluted share) in the third quarter of 2025.
• Non-GAAP earnings from continuing operations for the third quarter of 2026 were $35.3 million ($1.54 per diluted share), up 13.2% versus the prior year.
• Consolidated net sales for the nine months ended September 30, 2026, were $1,460.6 million, compared to $1,406.1 million in the comparable period of 2025.
• Consolidated adjusted net sales for the nine months ended September 30, 2026, were $1,490.8 million, compared to $1,406.1 million in the comparable period of 2025.
• Earnings from continuing operations for the nine months ended September 30, 2026, were $82.7 million ($3.62 per diluted share), compared to $69.8 million ($3.11 per diluted share) in the prior year.
• Non-GAAP earnings from continuing operations for the nine months ended September 30, 2026, were $85.9 million ($3.76 per diluted share), compared to $77.5 million ($3.45 per diluted share) in the prior year.
• Adjusted EBITDA for the third quarter increased to $66.6 million from $61.7 million in the prior year.
• Net debt leverage decreased to 1.8x at quarter-end from 2.5x in the second quarter of 2026.
• Total net debt at quarter-end stood at $381.9 million, down from $510.2 million at the end of the second quarter.
• Inventory was reduced to $646.1 million from $727.9 million at December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $207.2 million, compared to $85.7 million in the prior year.
• Capital expenditures for the nine months ended September 30, 2026, were $23.5 million, compared to $29.3 million in the prior year.
• Dividends paid for the nine months ended September 30, 2026, were $22.0 million, compared to $20.4 million in the prior year.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 guidance for sales growth in the low to mid-single digit range.
• Reaffirmed full-year 2026 guidance for adjusted EBITDA margin of 11% to 12%.
• Guidance excludes the impact of ongoing changes in the tariff landscape, significant inflationary impact from geopolitical conditions, or increases in interest rates impacting customer supply chain financing programs.
• Management expects more normalized levels of sales growth in the next few quarters as comparisons become more difficult.
• Full-year 2026 net debt leverage target is below 2.0x, a target surpassed in the third quarter.

Business Segments and Product Lines:

• Vehicle Control: Adjusted net sales increased 6.0% in the third quarter and 5.1% year-to-date, driven by strong sell-in, deeper customer assortments to capture DIFM sales, and solid demand across all categories.
• Temperature Control: Adjusted net sales decreased 4.1% in the third quarter against a record-setting prior year comparison but are up 4.2% year-to-date.
• Nissens: Adjusted net sales increased 7.6% to $91.0 million in the third quarter and 7.9% year-to-date, driven by high single-digit sales growth in local currency and record temperatures in certain end-markets.
• Engineered Solutions: Adjusted net sales showed solid growth of 4.9% in the third quarter and 11.4% year-to-date.

Market and Competitive Landscape:

• The North American aftermarket continues to show tailwinds for professional grade non-discretionary products.
• Customer POS remained positive throughout the third quarter for the Vehicle Control segment, demonstrating ongoing demand for non-discretionary offerings.
• Temperature Control saw strong sell-through of previously purchased inventory in the third quarter.
• Nissens outperformed in a challenging market environment.

Risks and Challenges:

• Future sales growth comparisons may become more difficult in the next few quarters.
• Potential impacts from ongoing changes in the tariff landscape.
• Potential inflationary impacts from geopolitical conditions.
• Potential increases in interest rates impacting customer supply chain financing programs.
• Currency conversion headwinds partially offset Nissens' local currency growth.

Management Commentary and Tone:

• Chairman and CEO Eric Sills stated the company is "very pleased" with the third quarter, noting record-setting adjusted EBITDA and year-to-date top and bottom-line performance.
• Management expressed optimism about navigating the challenging environment in the final quarter of the year and maintaining positive momentum.
• Management highlighted the resiliency of the aftermarket in both North America and Europe as a driver for future growth and improved profitability.
• Management thanked employees for their hard work and commitment to continued success.

Other Key Points:

• The Board of Directors approved a quarterly dividend of 33 cents per share, payable on December 1, 2026, to stockholders of record on November 16, 2026.
• The company received IEEPA tariff refunds from the United States Treasury in the quarter, which were excluded from adjusted net sales calculations.
• A litigation matter charge of $3.6 million was recorded in the third quarter of 2026.
• The company successfully reduced net debt leverage to 1.8x, surpassing its target to be below 2.0x by the end of 2026.
• Conference call held on October 30, 2026, at 11:00 AM Eastern Time.