Technology

Stoneridge Reports Fourth Quarter and Full-Year 2024 Results

Published

1 year ago

February 26, 2025

Net Cash Provided by Operating Activities Improvement of ~$43 Million Year-Over-Year Driven by Inventory Reduction of ~$36 Million

Establishes 2025 Midpoint Revenue Guidance of $875 Million and EBITDA Guidance of $40 Million
Establishes 2026 Revenue Target of at Least $975 Million and EBITDA Target of at Least $70 Million

2024 Fourth Quarter Results

Sales of $218.2 millionGross profit of $42.7 million (19.5% of sales)Adjusted gross profit of $43.1 million (19.7% of sales)Operating loss of $(4.4) million ((2.0)% of sales)Adjusted operating loss of $(4.0) million ((1.8)% of sales)Net loss of $(6.1) million ((2.8)% of sales)Adjusted net loss of $(5.0) million ((2.3)% of sales)Adjusted EBITDA of $6.0 million (2.7% of sales)

2025 Full-Year Guidance

Revenue of $860 million – $890 million (midpoint of $875 million)MirrorEye® expected to contribute $50+ million incremental revenue in 2025Company’s expectation of ~(3.8)% decline in OEM market volume vs. 2024EBITDA of $38 million to $42 million, or 4.4% to 4.7% of sales (midpoint of $40 million or 4.6% of sales)

2026 Financial Targets

2026 revenue target of at least $975 million2026 EBITDA target of at least $70 million, or 7.2% of sales

NOVI, Mich., Feb. 26, 2025 /PRNewswire/ — Stoneridge, Inc. (NYSE: SRI) today announced financial results for the fourth quarter and full-year ended December 31, 2024.

The Company announced fourth quarter sales of $218.2 million, gross profit of $42.7 million (19.5% of sales) and adjusted gross profit of $43.1 million (19.7% of sales). Operating loss was $(4.4) million ((2.0)% of sales) resulting in adjusted operating loss of $(4.0) million ((1.8)% of sales). Net loss was $(6.1) million and adjusted net loss was $(5.0) million. Loss per share was $(0.22) and adjusted EPS was $(0.18). Adjusted EBITDA was $6.0 million (2.7% of sales).

The Company announced full-year sales of $908.3 million, gross profit of $189.3 million (20.8% of sales) and adjusted gross profit of $189.8 million (20.9% of sales). Operating loss was $(0.4) million (0.0% of sales) resulting in adjusted operating income of $2.4 million (0.3% of sales). Net loss was $(16.5) million and adjusted net loss was $(13.1) million. Loss per share was $(0.60) and adjusted EPS was $(0.47). Adjusted EBITDA was $37.9 million (4.2% of sales).

The exhibits attached hereto provide reconciliation detail on normalizing adjustments of non-GAAP financial measures used in this press release.

Jim Zizelman, president and chief executive officer, commented, “In 2024, our focus remained on improving the fundamentals of our business to offset the continued pressure across all of our major end markets. Stoneridge specific growth drivers, including MirrorEye and the Smart 2 tachograph, grew significantly this year, offsetting a portion of the market headwinds to drive market outperformance of 490 basis points. We continued to focus on the execution of our major program launches, material cost reductions, continuous improvement in our manufacturing facilities and structural cost control. Our efforts resulted in a 120-basis point improvement in material costs and a 30-basis point improvement in direct labor costs, or a 7% year-over-year improvement relative to 2023. Our focus on cash and inventory management drove positive free cash flow of approximately $24 million, an increase of approximately $56 million versus the prior year. This was driven primarily by significant improvement in our inventory balances, which declined by $36 million this year, $25 million of which came in the fourth quarter.”

Zizelman continued, “While we are proud of our achievements in 2024, we recognize there is still opportunity for significant improvement, especially in quality. Additionally, we are focused on overall cost structure, as evidenced by our recent actions to de-layer certain corporate functions and streamline our operations in manufacturing facilities which reduced costs and is also improving operational efficiency. Quality-related costs, material cost improvement and structural cost reduction remain our key priorities for 2025.”

Zizelman concluded, “Finally, we continue to monitor the impacts, if any, related to potential tariffs, particularly related to Mexico. Similar to previously enacted tariffs or other raw material related cost increases over the last several years, we will implement supply chain and customer pricing strategies to mitigate any cost increases that may occur. We will continue to monitor shifts in macroeconomic policies and the potential for impacts on our business to ensure that we act quickly to offset any incremental costs, as we have done historically.”

Fourth Quarter in Review

Electronics fourth quarter sales of $149.4 million increased by 1.8% relative to adjusted sales of the fourth quarter of 2023. This was primarily driven by the ramp-up of recently launched programs, including MirrorEye and the Company’s next generation tachograph, the Smart 2, as well as higher sales in the European off-highway end market. This was partially offset by lower sales in the European and North American commercial vehicle end markets due to production volume declines. Fourth quarter adjusted operating margin of 3.6% declined by 390 basis points relative to the fourth quarter of 2023, driven by higher D&D, primarily related to a reduction in customer reimbursements, and higher SG&A costs. This was partially offset by lower material and labor costs.

Control Devices fourth quarter sales of $63.2 million decreased by 16.3% relative to the fourth quarter of 2023. This decrease was primarily due to lower customer production volumes in the North American passenger vehicle end market, as well as the expected wind-down of end-of-life programs and lower sales in China. Fourth quarter adjusted operating margin of (2.5)% decreased by 380 basis points relative to the fourth quarter of 2023, primarily due to reduced leverage on lower sales, partially offset by lower direct material and labor costs.

Stoneridge Brazil fourth quarter sales of $12.4 million decreased by $1.5 million relative to the fourth quarter of 2023. This decrease was due to unfavorable foreign currency translation of $(2.0) million. Additionally, higher OEM sales during the quarter were partially offset by lower sales in aftermarket products and monitoring service fees. Fourth quarter operating income of $0.1 million decreased by approximately $0.9 million relative to the fourth quarter of 2023, driven by higher material costs due to the adverse impact of U.S. dollar-denominated material purchases and unfavorable sales mix from lower monitoring service fees offset by lower SG&A spending.

Full-Year in Review

Electronics full-year sales of $594.7 million were relatively in line with 2023 sales adjusted for spot purchase recoveries. This was primarily driven by the ramp-up of recently launched programs, including MirrorEye and Smart 2, partially offset by lower sales in the European and North American commercial vehicle end markets due to customer production volume declines. Full-year adjusted operating margin of 4.7% declined by 40 basis points relative to 2023, driven by higher operating expenses and increased quality-related costs of approximately $1.2 million, partially offset by lower material and direct labor costs.

Control Devices full-year sales of $296.3 million decreased by 14.3% relative to 2023. This decrease was primarily due to lower customer production volumes in the North American passenger vehicle end market, as well as the expected wind-down of end-of-life programs. Full-year adjusted operating margin of 2.2% decreased by 170 basis points relative to 2023, primarily due to reduced leverage on lower sales, partially offset by lower direct material and quality-related costs.

Stoneridge Brazil full-year sales of $50.3 million decreased by $7.1 million relative to 2023. This decrease was primarily due to unfavorable foreign currency translation of $(3.8) million as well as lower sales in all our South American end markets driven by continued macroeconomic challenges. Full-year operating income of $1.0 million decreased by approximately $3.0 million relative to 2023, primarily due to reduced fixed cost leverage on lower sales, relatively higher material costs due to the adverse impact of U.S. dollar-denominated material purchases and unfavorable sales mix from lower monitoring service fees, partially offset by lower SG&A costs.

Cash and Debt Balances

As of December 31, 2024, Stoneridge had cash and cash equivalents totaling $71.8 million. During 2024, the Company generated $47.7 million in net cash provided by operating activities and $23.8 million in free cash flow, an increase of $42.8 million and $55.5 million, respectively over 2023. This was driven by the Company’s continued focus on reducing net working capital, including a $36.4 million reduction in inventory balances.

For compliance purposes, adjusted net debt was $147.9 million while adjusted EBITDA for the trailing twelve months was $48.0 million, resulting in an adjusted net debt to trailing twelve-month EBITDA compliance leverage ratio of 3.08x relative to a required leverage ratio of not greater than 3.5x.

The Company amended the existing Credit Facility to provide financial covenant relief for the fourth quarter of 2024 and the first three quarters of 2025. This amendment modified the first, second and third quarter leverage ratio maximum to 6.0x, 5.5x and 4.5x, respectively. The interest coverage ratio was waived in the fourth quarter of 2024 and was modified to 2.0x for the first and second quarters of 2025 and 2.5x for the third quarter of 2025. The Company expects to remain compliant with all amended compliance ratios.

The Company continues to focus on both operating performance and efficient cash management to improve financial performance and return its leverage profile to more normalized ratios. Based on its 2025 guidance and working capital initiatives, the Company is targeting a compliance net debt to EBITDA leverage ratio of 2.0x to 2.5x by the end of the year, relative to a 3.5x leverage ratio requirement by the end of the year.

2025 and Future Outlook

The Company is issuing guidance ranges for its full-year 2025 performance including sales guidance of $860 million to $890 million, gross margin guidance of 22.0% to 22.5% operating margin guidance of 0.75% to 1.25%, and EBITDA guidance of $38 million to $42 million, or approximately 4.4% to 4.7% of sales. The Company is also issuing guidance for free cash flow in 2025 of $25 million to $30 million.

Matt Horvath, chief financial officer, commented, “We are establishing our full-year 2025 guidance ranges, including midpoint revenue of $875 million to reflect current market expectations and our expectations for Stoneridge specific growth drivers. Overall, we expect OEM volume to decline by approximately 3.8% relative to 2024. We expect continued strong growth in MirrorEye in 2025 driven by the launch of new programs in North America, the ramp-up of recently launched programs and improved take rates on existing programs, resulting in full-year MirrorEye revenue of $120 million or almost double 2024. The growth in MirrorEye will offset the expected roll-off of certain end-of-life programs resulting in a range of expected revenue of $860 million to $890 million for 2025. As Jim outlined previously, we will continue to drive material cost improvement, manage our structural costs, and drive improved quality resulting in expanded margins. As a result, we expect EBITDA of $38 million to $42 million in 2025.”

Horvath continued, “Finally, today we are providing both short-term and long-term revenue and EBITDA targets. Looking at 2026, our weighted-average end markets are expected to grow by 7.4%. Additionally, we expect continued ramp-up and annualization of our existing OEM MirrorEye programs. Based only on market and MirrorEye related growth, we are targeting at least $975 million of revenue in 2026. We have additional opportunities for growth, including growth in our actuation and sensor programs in Control Devices, growth in our connected trailer activities and growth in our aftermarket businesses, including our off-highway business. Based only on the contribution on growth related to our markets and existing OEM MirrorEye programs, we are targeting 2026 EBITDA of at least $70 million, or 7.2% of sales. Incremental to that contribution-based target would be our continued focus and expectation on improving material costs, direct labor costs and most importantly, quality-related costs. We will provide more detail regarding these opportunities and our 2026 specific guidance as we get closer to the end of this year.”

Horvath concluded, “Similarly, we have updated our long-term targets to reflect continued strong growth expectations in our key product categories to a 2029 revenue target of $1.3 billion to $1.45 billion and EBITDA of $160 million to $200 million implying an EBITDA margin range of 12.3% to 13.8%. We remain focused on building a strong foundation for continued earnings expansion as we capitalize on our impressive portfolio of advanced technologies. Stoneridge remains well positioned to continue to outperform our underlying markets and drive margin expansion resulting in long-term shareholder value creation.”

Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2024 fourth quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, February 27, 2025, at www.stoneridge.com, which will also offer a webcast replay.

About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global supplier of safe and efficient electronic systems and technologies. Our systems and products power vehicle intelligence, while enabling safety and security for on- and off- highway transportation sectors around the world. Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements
Statements in this press release contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business, and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:

the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries;tariffs specifically in countries where we have significant manufacturing or supply chain exposure and our ability to either mitigate the impact of tariffs or pass any incremental costs to our customers;our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;the reduced purchases, loss, financial distress or bankruptcy of a major customer or supplier;the costs and timing of business realignment, facility closures or similar actions;a significant change in commercial, automotive, off-highway or agricultural vehicle production;competitive market conditions and resulting effects on sales and pricing;foreign currency fluctuations and our ability to manage those impacts;customer acceptance of new products;our ability to successfully launch/produce products for awarded business;adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, or our customers’ products;our ability to protect our intellectual property and successfully defend against assertions made against us;liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions of our customers;labor disruptions at our facilities, or at any of our significant customers or suppliers;business disruptions due to natural disasters or other disasters outside of our control;the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;capital availability or costs, including changes in interest rates;the failure to achieve the successful integration of any acquired company or business;risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; andthe items described in Part I, Item IA (“Risk Factors”) in our Form 10-K filed with the SEC.

The forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.

Use of Non-GAAP Financial Information

This press release contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2024 and 2023 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

In evaluating its business, the Company considers and uses free cash flow and net debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that adjusted sales, adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted loss before tax, adjusted income tax expense (benefit), adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted debt, adjusted net debt, adjusted cash and free cash flow are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company’s results of operations and provide improved comparability between fiscal periods.

Adjusted sales, adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted loss before tax, adjusted income tax expense (benefit), adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted debt, adjusted net debt, adjusted cash and free cash flow should not be considered in isolation or as a substitute for sales, gross profit, operating income (loss), income (loss) before tax, income tax expense (benefit), net income (loss), EPS, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.

CONSOLIDATED BALANCE SHEETS

December 31, (in thousands)

2024

2023

ASSETS

Current assets:

Cash and cash equivalents

$ 71,832

$ 40,841

Accounts receivable, less reserves of $1,060 and $1,058, respectively

137,766

166,545

Inventories, net

151,337

187,758

Prepaid expenses and other current assets

26,579

34,246

Total current assets

387,514

429,390

Long-term assets:

Property, plant and equipment, net

97,667

110,126

Intangible assets, net

39,677

47,314

Goodwill

33,085

35,295

Operating lease right-of-use asset

10,050

10,795

Investments and other long-term assets, net

53,563

46,980

Total long-term assets

234,042

250,510

Total assets

$ 621,556

$ 679,900

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of debt

$ —

$ 2,113

Accounts payable

83,478

111,925

Accrued expenses and other current liabilities

66,494

64,203

Total current liabilities

149,972

178,241

Long-term liabilities:

Revolving credit facility

201,577

189,346

Deferred income taxes

5,321

7,224

Operating lease long-term liability

6,484

7,684

Other long-term liabilities

12,942

9,688

Total long-term liabilities

226,324

213,942

Shareholders’ equity:

Preferred Shares, without par value, 5,000 shares authorized, none issued

—

Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966
shares issued and 27,695 and 27,549 shares outstanding at December 31, 2024 and
December 31, 2023, respectively, with no stated value

—

Additional paid-in capital

225,712

227,340

Common Shares held in treasury, 1,271 and 1,417 shares at December 31, 2024 and
December 31, 2023, respectively, at cost

(38,424)

(43,344)

Retained earnings

179,985

196,509

Accumulated other comprehensive loss

(122,013)

(92,788)

Total shareholders’ equity

245,260

287,717

Total liabilities and shareholders’ equity

$ 621,556

$ 679,900

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended December 31, (in thousands, except per share data)

2024

2023

2022

Net sales

$ 908,295

$ 975,818

$ 899,923

Costs and expenses:

Cost of goods sold

719,042

774,512

724,997

Selling, general and administrative

117,460

117,395

106,695

Design and development

72,174

71,075

65,296

Operating (loss) income

(381)

12,836

2,935

Interest expense, net

14,447

13,000

7,097

Equity in loss of investee

1,292

522

823

Other (income) expense, net

(2,523)

1,236

5,711

Loss before income taxes

(13,597)

(1,922)

(10,696)

Provision for income taxes

2,927

3,261

3,360

Net loss

$ (16,524)

$ (5,183)

$ (14,056)

Loss per share:

Basic

$ (0.60)

$ (0.19)

$ (0.52)

Diluted

$ (0.60)

$ (0.19)

$ (0.52)

Weighted-average shares outstanding:

Basic

27,596

27,443

27,258

Diluted

27,596

27,443

27,258

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended December 31, (in thousands)

2024

2023

2022

OPERATING ACTIVITIES:

Net loss

$ (16,524)

$ (5,183)

$ (14,056)

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

Depreciation

26,140

26,749

26,720

Amortization, including accretion and write-off of deferred financing costs

8,852

8,132

8,055

Deferred income taxes

(5,742)

(4,038)

(5,110)

Loss of equity method investee

1,292

522

823

Loss (gain) on sale of fixed assets

257

(860)

(241)

Share-based compensation expense

4,094

3,322

5,942

Excess tax deficiency related to share-based compensation expense

248

230

543

Changes in operating assets and liabilities:

Accounts receivable, net

20,170

(5,854)

(13,161)

Inventories, net

26,904

(31,563)

(20,127)

Prepaid expenses and other assets

877

16,625

(5,159)

Accounts payable

(24,624)

1,090

18,489

Accrued expenses and other liabilities

5,804

(4,226)

4,088

Net cash provided by operating activities

47,748

4,946

6,806

INVESTING ACTIVITIES:

Capital expenditures, including intangibles

(24,303)

(38,498)

(31,609)

Proceeds from sale of fixed assets

385

1,869

158

Proceeds from settlement of net investment hedges

—

3,820

Investment in venture capital fund

(550)

(350)

(950)

Net cash used for investing activities

(24,468)

(36,979)

(28,581)

FINANCING ACTIVITIES:

Revolving credit facility borrowings

135,500

117,369

21,562

Revolving credit facility payments

(121,500)

(96,568)

(18,000)

Proceeds from issuance of debt

31,661

35,757

38,940

Repayments of debt

(33,745)

(35,102)

(42,248)

Earn-out consideration cash payment

—

(6,276)

Other financing costs

—

(2,251)

(484)

Repurchase of Common Shares to satisfy employee tax withholding

(795)

(1,720)

(791)

Net cash provided by (used for) financing activities

11,121

17,485

(7,297)

Effect of exchange rate changes on cash and cash equivalents

(3,410)

591

(1,677)

Net change in cash and cash equivalents

30,991

(13,957)

(30,749)

Cash and cash equivalents at beginning of period

40,841

54,798

85,547

Cash and cash equivalents at end of period

$ 71,832

$ 40,841

$ 54,798

Supplemental disclosure of cash flow information:

Cash paid for interest

$ 15,458

$ 13,007

$ 7,293

Cash paid for income taxes, net

$ 9,255

$ 10,302

$ 6,178

Regulation G Non-GAAP Financial Measure Reconciliations

Exhibit 1 – Reconciliation of Adjusted EPS

Reconciliation of Q4 2024 Adjusted EPS

(USD in millions, except EPS)

Q4 2024

Q4 2024 EPS

Net Loss

$ (6.1)

$ (0.22)

Add: After-Tax Business Realignment Costs

0.3

0.01

Add: After-Tax Impact of Valuation Allowance

0.8

0.03

Adjusted Net Loss

$ (5.0)

$ (0.18)

Reconciliation of Full-Year 2024 Adjusted EPS

(USD in millions, except EPS)

2024

2024 EPS

Net Loss

$ (16.5)

$ (0.60)

Add: After-Tax Business Realignment Costs

2.5

0.09

Add: After-Tax Environmental Remediation Costs

0.1

0.00

Add: After-Tax Impact of Valuation Allowance

0.8

0.03

Adjusted Net Loss

$ (13.1)

$ (0.47)

Exhibit 2 – Reconciliation of Adjusted EBITDA

(USD in millions)

Q4 2023

2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

2024

Income (Loss) Before Tax

$ 3.2

$ (1.9)

$ (5.6)

$ 1.9

$ (3.7)

$ (6.2)

$ (13.6)

Interest expense, net

3.8

13.0

3.6

3.8

3.6

3.4

14.4

Depreciation and amortization

8.4

33.6

8.6

8.5

8.8

8.3

34.3

EBITDA

$ 15.5

$ 44.7

$ 6.6

$ 14.2

$ 8.8

$ 5.5

$ 35.1

Add: Pre-Tax Business
Realignment Costs

0.1

4.5

—

1.9

0.3

0.4

2.6

Less: Pre-Tax Gain on Disposal
of Fixed Assets

—

(0.8)

—

Add: Pre-Tax Environmental
Remediation Costs

—

0.1

—

0.2

—

0.2

Add: Pre-Tax Brazilian Indirect
Tax Credits, Net

—

(0.5)

—

Adjusted EBITDA

$ 15.6

$ 48.1

$ 6.6

$ 16.1

$ 9.2

$ 6.0

$ 37.9

Exhibit 3 – Reconciliation of Adjusted Gross Profit

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Gross Profit

$ 45.5

$ 201.3

$ 42.7

$ 189.3

Add: Pre-Tax Business Realignment Costs

0.1

0.8

0.4

0.5

Adjusted Gross Profit

$ 45.7

$ 202.1

$ 43.1

$ 189.8

Exhibit 4 – Reconciliation of Adjusted Operating Income (Loss)

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Operating Income (Loss)

$ 6.0

$ 12.8

$ (4.4)

$ (0.4)

Add: Pre-Tax Business Realignment Costs

0.1

4.5

0.4

2.6

Less: Pre-Tax Gain on Disposal of Fixed Assets

—

(0.8)

—

Add: Pre-Tax Environmental Remediation Costs

—

0.1

—

0.2

Add: Pre-Tax Brazilian Indirect Tax Credits, Net

—

(0.5)

—

Adjusted Operating Income (Loss)

$ 6.2

$ 16.2

$ (4.0)

$ 2.4

Exhibit 5 – Segment Adjusted Operating Income (Loss)

Reconciliation of Control Devices Adjusted Operating Income (Loss)

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Control Devices Operating Income (Loss)

$ 0.9

$ 13.6

$ (1.8)

$ 6.2

Less: Pre-Tax Gain on Disposal of Fixed Assets

—

(0.8)

—

Add: Pre-Tax Environmental Remediation Costs

—

0.1

—

0.2

Add: Pre-Tax Business Realignment Costs

—

0.5

0.2

Control Devices Adjusted Operating Income (Loss)

$ 0.9

$ 13.4

$ (1.6)

$ 6.6

Reconciliation of Electronics Adjusted Operating Income

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Electronics Operating Income

$ 10.8

$ 27.3

$ 5.1

$ 25.6

Add: Pre-Tax Business Realignment Costs

0.1

2.8

0.2

2.3

Electronics Adjusted Operating Income

$ 11.0

$ 30.2

$ 5.3

$ 27.9

Reconciliation of Stoneridge Brazil Adjusted Operating Income

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Stoneridge Brazil Operating Income

$ 1.0

$ 4.5

$ 0.1

$ 1.0

Add: Pre-Tax Brazilian Indirect Tax Credits, Net

—

(0.5)

—

Stoneridge Brazil Adjusted Operating Income

1.0

$ 4.0

$ 0.1

$ 1.0

Exhibit 6 – Reconciliation of Adjusted Sales

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Sales

$ 229.5

$ 975.8

$ 218.2

$ 908.3

Less: Sales from Spot Purchases Recoveries

(0.2)

(14.6)

—

Adjusted Sales

$ 229.4

$ 961.2

$ 218.2

$ 908.3

Exhibit 7 – Reconciliation of Electronics Adjusted Sales

(USD in millions)

Q4 2023

2023

Q4 2024

2024

Electronics Sales

$ 146.9

$ 608.2

$ 149.4

$ 594.7

Less: Sales from Spot Purchases Recoveries

(0.2)

(14.6)

—

Electronics Adjusted Sales

$ 146.8

$ 593.6

$ 149.4

$ 594.7

Exhibit 8 – Reconciliation of Adjusted Tax Rate

Reconciliation of Q4 2024 Adjusted Tax Rate

(USD in millions)

Q4 2024

Tax Rate

Loss Before Tax

$ (6.2)

Add: Pre-Tax Business Realignment Costs

0.4

Adjusted Loss Before Tax

$ (5.7)

Income Tax Benefit

$ (0.1)

1.0 %

Add: Tax Impact from Pre-Tax Adjustments

0.1

Add: After-Tax Impact of Valuation Allowance

(0.8)

Adjusted Income Tax Benefit on Adjusted Loss Before Tax

$ (0.8)

13.5 %

Reconciliation of Full-Year 2024 Adjusted Tax Rate

(USD in millions)

2024

Tax Rate

Loss Before Tax

$ (13.6)

Add: Pre-Tax Business Realignment Costs

2.6

Add: Pre-Tax Environmental Remediation Costs

0.2

Adjusted Loss Before Tax

$ (10.8)

Income Tax Expense

$ 2.9

(21.5) %

Add: Tax Impact from Pre-Tax Adjustments

0.2

Add: After-Tax Impact of Valuation Allowance

(0.8)

Adjusted Income Tax Expense on Adjusted Loss Before Tax

$ 2.3

(21.2) %

Exhibit 9 – Reconciliation of Free Cash Flow

(USD in millions)

2023

2024

Cash Flow from Operating Activities

$ 4.9

$ 47.7

Capital Expenditures, including Intangibles

(38.5)

(24.3)

Proceeds from Sale of Fixed Assets

1.9

0.4

Free Cash Flow

$ (31.7)

$ 23.8

Exhibit 10 – Reconciliation of Compliance Leverage Ratio

Reconciliation of Adjusted EBITDA for Compliance Calculation

(USD in millions)

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Income (Loss) Before Tax

$ 3.2

(5.6)

$ 1.9

$ (3.7)

$ (6.2)

Interest Expense, net

3.8

3.6

3.8

3.6

3.4

Depreciation and Amortization

8.4

8.6

8.5

8.8

8.3

EBITDA

$ 15.5

$ 6.6

$ 14.2

$ 8.8

$ 5.5

Compliance adjustments:

Add: Non-Cash Impairment Charges and Write-offs or
Write Downs

0.1

—

0.4

Add: Adjustments from Foreign Currency Impact

(0.7)

2.2

(2.4)

(0.6)

(1.1)

Add: Extraordinary, Non-recurring or Unusual Items

—

Add: Cash Restructuring Charges

0.3

1.6

0.5

0.7

0.3

Add: Charges for Transactions, Amendments, and
Refinances

0.3

—

Add: Adjustment to Autotech Fund II Investment

(0.1)

0.3

0.1

0.8

0.2

Add: Accrual-based Expenses

5.5

8.2

7.1

1.3

6.4

Less: Cash Payments for Accrual-based Expenses

(3.1)

(3.2)

(3.7)

(3.3)

(2.8)

Adjusted EBITDA (Compliance)

$ 17.7

$ 15.8

$ 7.6

$ 8.9

Adjusted TTM EBITDA (Compliance)

$ 56.8

$ 48.0

Reconciliation of Adjusted Cash for Compliance Calculation

(USD in millions)

Q3 2024

Q4 2024

Total Cash and Cash Equivalents

$ 54.1

$ 71.8

Less: 35% of Cash in Foreign Locations

(15.1)

(16.5)

Total Adjusted Cash (Compliance)

$ 39.0

$ 55.3

Reconciliation of Adjusted Debt for Compliance Calculation

(USD in millions)

Q3 2024

Q4 2024

Total Debt

$ 196.3

$ 201.6

Outstanding Letters of Credit

1.6

Total Adjusted Debt (Compliance)

$ 197.9

$ 203.1

Adjusted Net Debt (Compliance)

$ 158.9

$ 147.9

Compliance Leverage Ratio (Net Debt / TTM EBITDA)

2.79x

3.08x

Compliance Leverage Ratio Maximum Requirement

3.50x

View original content to download multimedia:https://www.prnewswire.com/news-releases/stoneridge-reports-fourth-quarter-and-full-year-2024-results-302386616.html

SOURCE Stoneridge, Inc.

Technology

Penetron Strengthens Global Research Collaboration at ICSHM 2026

Published

1 hour ago

July 19, 2026

PHILADELPHIA, July 19, 2026 /PRNewswire/ — Penetron participated in the 10th International Conference on Self-Healing Materials (ICSHM 2026), held July 8–10, 2026, at Drexel University in Philadelphia, Pennsylvania. The international event brought together leading researchers, engineers, and industry representatives to present and discuss the latest advances in self-healing materials and related technologies.

A global delegation of Penetron executives attended the conference, representing the United States, Greece, Italy, Brazil, India, Chile, the United Arab Emirates, Belgium, and Singapore.

“For over 50 years, Penetron has provided self-healing concrete solutions to the industry that optimize concrete durability by sealing cracks and reducing concrete permeability to limit maintenance requirements, extend structural service life, and help protect infrastructure exposed to groundwater, chemicals, chlorides, and other aggressive conditions,” says Christopher Chen, Director of The Penetron Group. “Our participation at the ICSHM reinforces Penetron’s long-standing commitment to international research collaboration and allows us to better understand emerging research and develop leading-edge solutions for real-world construction challenges.”

Hosted at Drexel University’s Bossone Research Enterprise Center, ICSHM 2026 welcomed specialists from more than 18 countries across six continents and featured over 70 technical presentations, including keynote addresses, plenary sessions, research presentations, and an interactive poster program. The conference opened with remarks from Drexel University President Antonio Merlo and ICSHM Chair Dr. Nele De Belie. Finally, the conference provided valuable opportunities for researchers and industry specialists to strengthen cooperation between academia and the construction sector to further develop self-healing technologies.

“Extending the service life of concrete infrastructure requires cooperation between universities, materials specialists, engineers, and industry,” said Jozef Van Beeck, Director of International Sales and Marketing for The Penetron Group. “ICSHM 2026 provided an important forum for connecting scientific research with the practical requirements of the global construction industry.”

The Penetron Group is a leading manufacturer of specialty construction products for concrete waterproofing, concrete repairs, and floor preparation systems. The Group operates through a global network, offering support to the design and construction community through its regional offices, representatives, and distribution channels.

For more information on Penetron waterproofing solutions, please visit penetron(dot)com or Facebook(dot)com/ThePenetronGroup, email CRDept(at)penetron(dot)com or contact the Corporate Relations Department at 631-941-9700.

View original content to download multimedia:https://www.prnewswire.com/news-releases/penetron-strengthens-global-research-collaboration-at-icshm-2026-302829009.html

SOURCE The Penetron Group

Technology

Singtel Receives Four Frost & Sullivan 2026 Recognitions for Leadership in Enterprise Connectivity, Cybersecurity, and Digital Transformation

Published

3 hours ago

July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 19, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

View original content:https://www.prnewswire.com/news-releases/singtel-receives-four-frost–sullivan-2026-recognitions-for-leadership-in-enterprise-connectivity-cybersecurity-and-digital-transformation-302829114.html

SOURCE Frost & Sullivan

Technology

Emdoor Launches “Ailyn” AI Hub at WAIC 2026: Unifying Intelligence Across Every Device

Published

7 hours ago

July 19, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — Emdoor, a leading provider of intelligent computing devices, unveiled its latest innovation — Ailyn, an integrated software-hardware AI hub — at the World Artificial Intelligence Conference (WAIC) 2026. Under the theme “Intelligence in All Things, Boundless Edge Intelligence”, Emdoor’s Booth X1B-804 showcases four immersive scenarios spanning personal, home, enterprise, and industrial use cases, demonstrating how AI can flow seamlessly across devices.

With decades of experience across cloud, edge, device, and wearable form factors, Emdoor has established one of the industry’s most comprehensive intelligent hardware portfolios. Yet the company recognized a critical gap: while individual devices grow smarter, they often operate in isolation.

Ailyn is Emdoor’s answer to this challenge. Introduced on the WAIC Magic Box stage, Ailyn serves as a unified intelligence layer that orchestrates storage, computing power, AI models, and data across PCs, NAS systems, computing boxes, and IoT devices. The result is a scalable, centrally managed intelligence platform that delivers seamless cross-device collaboration, data privacy, and AI capabilities that improve with use.

At its core, Ailyn follows a device-first, multi-device connected philosophy. By prioritizing on-device model deployment, it reduces costs while preserving privacy, minimizing latency, and enabling offline functionality. Key capabilities include unified data access, uninterrupted task handoff between devices, intelligent multi-model routing, and dynamic compute scaling — plus built-in features for knowledge accumulation, skill expansion, persona customization, and automated task execution.

Four Scenarios, One Intelligent Ecosystem

The enterprise lineup features high-performance AI workstations, AI servers, AI NAS, Mini PCs, and motherboards. Workstations support up to 96-core processors and four double-width GPUs with integrated BMC remote management. AI servers run dual Intel Xeon scalable processors with up to eight mainstream AI accelerators. The single-GPU workstation series offers dual-platform compatibility with both Intel and AMD, featuring a PCIe 5.0 ×16 slot and up to 128GB DDR5 memory. Available in two form factors — a 23.9L tower chassis and a 15.3L compact chassis with tempered glass side panel — it delivers balanced performance for both creative workloads and local AI inference. The AI NAS unifies storage and AI computing power in one device, with192GB of octa-channel LPDDR5X memory to support local large model deployment. Ailyn unifies these resources into a private computing backbone, intelligently offloading heavy workloads so users get instant on-device responsiveness with datacenter-grade power on demand.

For individual users, the showcase includes Mini PCs, AI PCs, AI tablets, and multimodal wearables. The AP16, powered by Intel’s 3rd Generation Core™ Ultra processor, delivers 180 TOPS of AI performance with sustained 54W output — capable of running large models locally. Multimodal wearable solutions built on Qualcomm and BES chips offer faster time-to-market for brand partners. Within the Ailyn ecosystem, PCs handle heavy computing while wearables provide continuous environmental awareness, each device strengthening the whole.

Industrial visitors will find AI BOX units, rugged AI notebooks, handheld terminals, and industrial PCs. AI BOX devices come preloaded with industry-specific models for production line visual inspection. Rugged notebooks deliver reliable performance for mobile field operations. Industrial PCs feature industrial-grade architecture for 24/7 uptime. Through Ailyn, these connected devices break down traditional data silos, enabling intelligent resource orchestration and a closed-loop perception-decision-execution system that accelerates industrial digital transformation.

At the center of the home scenario are AI tablets and home NAS, connected to a full-house AIoT network. The NAS acts as the family’s private data and computing hub, while the tablet serves as the primary interface for senior health reminders and children’s learning support. Ailyn weaves these devices into a cohesive system covering family memories, health care, companionship, and home security — bringing intelligence into daily life without intruding on it.

The launch of Ailyn marks a significant evolution for Emdoor — shifting from a hardware manufacturer to a builder of intelligent infrastructure. It represents the convergence of the company’s deep hardware heritage and its AI innovation roadmap. Moving forward, Emdoor will continue investing in edge AI technology and expanding the Ailyn ecosystem alongside partners, bringing distributed intelligence from the showroom into everyday life.

Company: Emdoor Digital Technology Co.,Ltd.
Contact Person: Yao Zhou
Email: marketing.digi@emdoor.com
Website: http://www.emdoordigi.com/
City: Shenzhen, China

View original content to download multimedia:https://www.prnewswire.com/news-releases/emdoor-launches-ailyn-ai-hub-at-waic-2026-unifying-intelligence-across-every-device-302829098.html

SOURCE Emdoor Digital