Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrated a positive trajectory in its financial performance for Q2/25, with its Control Devices segment achieving sales of $71.2 million, reflecting a sequential increase of 1.9% fueled by higher production in the North American passenger vehicle market. Additionally, the Electronics segment reported significant growth, with sales rising 6.4% to $149.6 million due to favorable foreign exchange impacts and a remarkable 21% sequential increase in MirrorEye sales. Moreover, the Stoneridge Brazil segment saw a 6.0% increase in sales to $15.3 million, driven by favorable foreign exchange and strong aftermarket product sales, showcasing resilience and growth across key areas of the business.

Stoneridge Inc. experienced a significant decline in adjusted operating income in Q2/25, with a 39% drop to $4.2 million, primarily due to rising material costs and increased selling, general, and administrative expenses. Additionally, IHS forecasts a challenging outlook for the company, projecting a 2.2% reduction in weighted average end markets and a 17.5% decline in North American commercial vehicle production volumes in 2025. Furthermore, year-over-year sales in the Electronics segment fell by 2.6%, accompanied by a notable decrease in adjusted operating margin, which dropped 490 basis points to 2.8%.