Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrated positive performance in Q2/25, with the Control Devices segment achieving sales of $71.2 million, reflecting a sequential increase of 1.9% driven by higher production volumes in the North American passenger vehicle market. The SRI Brazil segment also contributed positively, with sales reaching $15.3 million, an increase of 6.0% from Q1/25, supported by favorable foreign exchange impacts and higher aftermarket product sales. Furthermore, the Electronics segment reported strong sales of $149.6 million, up 6.4% sequentially, largely due to record growth in MirrorEye sales and favorable FX translation, despite a decline in the European commercial vehicle sector.

Stoneridge Inc. has experienced a significant decline in its Q2/25 adjusted operating income, which fell by 39% sequentially to $4.2 million, largely attributed to rising material costs and increased selling, general, and administrative (SG&A) expenses. Furthermore, an overall reduction in the forecast for Stoneridge's end market, particularly driven by an anticipated 17.5% decrease in North American commercial vehicle production volumes in 2025, poses additional challenges for growth. Additionally, the company's Electronics segment reported a 2.6% year-over-year sales decline, while its adjusted operating margin decreased by 490 basis points to 2.8%, indicating a worsening profitability trend.