Standard Motor Products Inc (SMP)
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On paper it is the best year in a long time: Standard Motor Products lifted revenue 22.4 percent in 2025 to $1.791 billion, gross margin climbed from 28.9 to 31.2 percent, and operating income rose from $80.6 million to $136.5 million. Then you read the next line of the income statement. Continuing operations produced $79.033 million attributable to shareholders — what actually reached them was $41.335 million. The $37.698 million difference goes to a brake business the company sold in March 1998 and whose asbestos claims it has carried itself since September 2001: 1,032 cases outstanding as of March 31, 2026, roughly $108.1 million already paid, no insurance. This analysis works out what is left of a record year once you count the closed chapters too. Not investment advice — just the question of which bills a company has really put behind it.
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Basics
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AI Rating
NeutralStandard Motor Products erwähnt KI in den sechs ausgewerteten SEC-Berichten ausschließlich als allgemeine Risikofloskel im Geschäftsbericht 2025 — kein KI-Produkt, keine KI-Umsatzquelle und kein belegter operativer KI-Einsatz; die vier Quartalsberichte und der Geschäftsbericht 2024 enthalten überhaupt keine KI-Fundstelle.
View the full file — quotes, sources, reviewed filings
„Furthermore, if we do not invest in or effectively use AI capabilities, or if competitors leverage these technologies more successfully, our competitive position could suffer."
Darüber hinaus könnte unsere Wettbewerbsposition leiden, wenn wir nicht in KI-Fähigkeiten investieren oder diese nicht wirksam einsetzen oder wenn Wettbewerber diese Technologien erfolgreicher nutzen.
„The use of AI-based solutions by our business partners could lead to the public disclosure of confidential and proprietary business information (including personal data) in contravention of our policies, contractual requirements and applicable data protection laws."
Der Einsatz KI-gestützter Lösungen durch unsere Geschäftspartner könnte zur öffentlichen Offenlegung vertraulicher und geschützter Geschäftsinformationen (einschließlich personenbezogener Daten) unter Verstoß gegen unsere Richtlinien, vertragliche Anforderungen und geltende Datenschutzgesetze führen.
Filings Reviewed: 10-Q 2026-04-30 · 10-K 2026-02-26 · 10-Q 2025-10-31 · 10-Q 2025-08-05 · 10-Q 2025-04-30 · 10-K 2025-02-28
Rated on August 1, 2026 · How the Rating Is Built
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q2 | 0.98 | 16.70 | 390 | 10.40 | 4.60 | 36 | 23 |
| 2024: Q3 | 1.28 | 15.30 | 399 | 3.30 | 6.70 | 88 | 77 |
| 2024: Q4 | 0.47 | 27.00 | 343 | 18.10 | -0.20 | -2 | -11 |
| 2025: Q1 | 0.81 | 80.00 | 413 | 24.70 | 3.00 | -60 | -69 |
| 2025: Q2 | 1.29 | 31.60 | 494 | 26.70 | 5.10 | 54 | 44 |
| 2025: Q3 | 1.36 | 6.30 | 499 | 24.90 | -0.90 | 92 | 82 |
| 2025: Q4 | 0.56 | 19.10 | 385 | 12.20 | 2.00 | -28 | -38 |
| 2026: Q1 | 0.82 | 1.20 | 451 | 9.10 | 3.80 | -42 | -49 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Replacement parts for cars are a needs-driven business — the company itself calls its products non-discretionary in the earnings release of April 30, 2026. Revenue rose to $1,791.2 million in 2025, gross margin from 28.9 to 31.2 percent, operating income from $80.6 million to $136.5 million and operating margin from 5.5 to 7.6 percent. In the first quarter of 2026 all four segments grew, revenue by 9.1 percent to $451.166 million and operating income to $34.093 million. The firm has been in business since 1919.
Of the $327.3 million revenue increase in 2025, $269.6 million came purely from Nissens Automotive — acquired on November 1, 2024 for 366.8 million euros — counting for a full year instead of two months. That is 82 percent of the increase. The other three segments grew a combined $57.7 million, or roughly 4.0 percent; Engineered Solutions shrank 4 percent in 2025. The company itself qualifies the 12.4 percent Nissens gain in the first quarter of 2026: in local currency it was 2.7 percent. For 2026 it guides to growth only in the low to mid-single digit range.
From a brake business bought in 1986 and sold in March 1998, SMP has carried every newly filed asbestos claim itself since September 2001, without insurance coverage. As of March 31, 2026, 1,032 cases were outstanding and roughly $108.1 million had been paid. In the income statement this chapter took 45.9, 48.7 and 47.7 percent of continuing earnings in 2023 through 2025: $28.996 million, $26.128 million and $37.698 million. The actuarial study as of August 31, 2025 raised the estimated range to $127.5 million to $275.9 million through 2065 (prior-year study: up $27.9 million and $65.1 million), for which a $44.4 million incremental provision was booked in September 2025. Estimated legal costs of $48.5 million to $115.3 million through 2065 come on top.
The balance sheet holds: $2,048.299 million of total assets as of March 31, 2026, $707.579 million of equity, interest coverage of 5.6, covenants complied with, and a credit agreement running to September 2029 at an average 4.9 percent. Against that: total debt rose in the first quarter of 2026 from $618.715 million to $658.620 million, net debt stands at $599.4 million, or 3.0 times adjusted EBITDA — and the company's own target of 2.0 times by the end of 2026 requires substantial repayment within nine months. The $27.3 million dividend exceeded free cash of roughly $18.7 million in 2025; the annual report names borrowings as the source. Interest expense rose from $13.512 million to $31.339 million.
KPMG issued an adverse opinion on the effectiveness of internal control over financial reporting as of December 31, 2025; the cause is a material weakness in IT general controls at Nissens Automotive, the segment acquired in 2024, specifically around monitoring privileged access. As of March 31, 2026 the weakness was not remediated, with five measures in progress. In mitigation: the consolidated financial statements received an unqualified opinion, and the company says it identified no resulting errors. In parallel, the chief operating officer changed on June 1, 2026 — James J. Burke handed the role to Sunil Bhandari after 47 years with the company.
Three customers accounted for 25.2, 18.6 and 10.5 percent of consolidated revenue in 2025 — 54.3 percent combined; the annual report itself calls the loss of one of them materially adverse. The U.S. tariffs imposed since February 2025 are passed through at cost, which pushed the Vehicle Control gross margin from 32.3 to 31.9 percent in the first quarter of 2026. The manufacturing footprint cushions this: more than half of U.S. sales come from North American production and are currently mostly USMCA-exempt, with roughly a quarter sourced from China. Following the Supreme Court decision of February 20, 2026 on the IEEPA tariffs, SMP has recorded no receivable for potential refunds as of March 31, 2026.
Standard Motor Products is earning more in its core business than it has in years: $1,791.2 million of revenue in 2025, a 31.2 percent gross margin, $136.5 million of operating income, and all four segments growing in the first quarter of 2026. Two qualifications sit alongside that, both from the company's own filings. First, the 22.4 percent revenue jump was 82 percent bought — $269.6 million of the $327.3 million increase came from Nissens Automotive counting for a full year for the first time; for 2026 the company expects only low to mid-single digit growth. Second, a brake business sold in 1998 has, through its asbestos liability, taken roughly half the profit for three years running: $37.698 million in 2025 alone, with 1,032 cases outstanding as of March 31, 2026 and an actuarial estimate running to 2065. Add an adverse auditor opinion on internal controls, a dividend partly funded from the credit line in 2025, and three customers accounting for 54.3 percent of revenue. Anyone seeing a price-to-earnings ratio of 10.3 here is reading the bill without its second line. Not investment advice.
- SMP reached our research list through a fundamental screen of small and mid-cap U.S. names, cut-off August 1, 2026 — Piotroski 7 of 9, price-to-earnings ratio 10.3, price-to-book ratio 1.24, return on equity 12.4 percent, Altman Z 2.35, interest coverage 5.6. Crucial for the reading: these metrics use earnings from continuing operations and leave out the asbestos line. Measured against what actually reached shareholders — roughly $2.03 per share over the four quarters through March 31, 2026 — the price-to-earnings ratio is about 19 rather than 10.3.
- Recency gate: the most recent periodic report is the Form 10-Q as of March 31, 2026, filed April 30, 2026; it has been evaluated, as has the same-day earnings release (Form 8-K Item 2.02 dated April 30, 2026) carrying guidance, net debt and leverage. Every filing dated on or after April 30, 2026 was reviewed individually: DEFR14A April 30, 2026, Form 8-K May 12, 2026 (Item 5.02, chief operations officer succession), six Forms 4 dated May 22, 2026, Form 8-K May 22, 2026 (Item 5.07), Form SD May 29, 2026, Forms 144 dated June 1 and June 8, 2026, Form 3 dated June 2, 2026 and Forms 4 dated June 2, June 3 and June 9, 2026. No Form 25, no Form 15, no 424B*, no S-3, no beneficial ownership report.
- Traps to avoid: the price-to-earnings ratio, return on equity and earnings growth taken from data feeds all refer to continuing operations at SMP — the asbestos line sits below them and is absent from those metrics. Market capitalization was cross-checked: 22,263,279 shares (April 28, 2026) times $39.75 (Form 4 dated June 9, 2026) gives roughly $885 million against $866.9 million from fundamental data, a deviation of about 2 percent. The negative first-quarter operating cash flow is seasonal and was smaller in 2026 than in 2025. And the $269.6 million figure is not Nissens' annual revenue but only the increase from the calendar effect — Nissens generated $305.4 million in total in 2025.
About the Company
Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States, Europe, Canada, Mexico, Poland, and internationally. The company operates through four segments: Vehicle Control, Temperature Control, Nissens Automotive, and Engineered Solutions. It provides ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. The company also offers electrical switches and actuators; anti-lock brake and vehicle speed sensors, fluid level sensors, and pressure sensors comprising tire pressure monitoring, temperature sensors, advanced driver assistance systems sensors, battery cables, pigtails, and sockets; electrical wire, terminals, connectors, and tools for servicing a vehicle's electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, it offers AC system components; other thermal components; and engine cooling, air conditioning, and engine efficiency products. Further, it provides thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers, warehouse distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.
| Employees | 5,700 |
|---|---|
| Headquarters | Long Island City, NY |
| Website | smpcorp.com |
| IPO Date | 30. Dec 1987 |
| Next Earnings | 4. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Eric Philip Sills | CEO, President & Chairman | 1969 |
| Nathan R. Iles CPA | Chief Financial Officer | 1977 |
| Carmine J. Broccole J.D. | Chief Legal Officer & Secretary | 1966 |
| James J. Burke | Executive Advisor & Director | 1955 |
| Dale Burks | Executive VP & Chief Commercial Officer | 1960 |
| Sunil Bhandari | Chief Operating Officer | 1980 |
| Esther Parker | Chief Accounting Officer | 1976 |
| Ray Nicholas | VP of Information Technology & Chief Information Officer | 1964 |
| Anthony Francis Cristello | Vice President of Investor Relations | 1969 |
| Victoria T. Ringwood | Chief Human Resources Officer | 1969 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.