Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrates a positive financial trajectory as evidenced by its Control Devices segment reporting a sequential sales increase of 1.9% in Q2/25, primarily due to higher production volumes in the North American passenger vehicle market. The Stoneridge Brazil segment also showcased growth with a 6.0% increase in sales, attributed to favorable foreign exchange conditions and higher aftermarket product sales. Additionally, the Electronics segment experienced a notable 6.4% sequential sales growth driven by favorable FX translation and record sales growth in the MirrorEye product line, reflecting strong demand despite challenges in the European commercial vehicle market.

Stoneridge Inc. experienced a significant decline in its Q2/25 adjusted operating income, which fell by 39% to $4.2 million, primarily due to increased material costs and higher selling, general, and administrative expenses. The forecasted decline in North American commercial vehicle production volumes by approximately 17.5% in 2025, along with a 2.2% reduction in weighted average end markets, further exacerbates the company's challenges. Additionally, the Electronics segment reported a 2.6% decrease in sales year-over-year, accompanied by a substantial 490 basis point drop in adjusted operating margin to 2.8%.