10-Q · April 30, 2026
Standard Motor Products, Inc. reported a solid Q1 2026 performance with revenue of $451.2 million, exceeding estimates and reflecting a 9.1% increase year-over-year. The company also reported a diluted EPS of $0.75, up…
Earnings analysis · 10-Q
SMP earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Standard Motor Products delivered Q2 revenue of $501.599 million, up 1.6% year over year and up from $451 million in Q1, with gross margin expanding to 32.8% and operating margin to 10.1%. GAAP diluted EPS increased to…
Read full summary
Standard Motor Products delivered Q2 revenue of $501.599 million, up 1.6% year over year and up from $451 million in Q1, with gross margin expanding to 32.8% and operating margin to 10.1%. GAAP diluted EPS increased to $1.33 from $1.13, supported by strong Temperature Control, Nissens Automotive, and Engineered Solutions performance, although Vehicle Control sales fell 9.3%. First-half operating cash flow improved to $58.266 million and net debt declined to $510.198 million, but tariff-related margin benefits are characterized as temporary and full-year thermal demand depends on weather and customer inventories.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.33
What stood out
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Margins expanded despite modest sales growth
Q2 revenue was $501.599 million, up 1.6% from $493.853 million a year earlier and above Q1 2026 revenue of $451 million. Gross margin expanded 220 basis points to 32.8%, while operating margin rose 140 basis points to 10.1%.
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EPS increased year over year and sequentially
Diluted GAAP EPS was $1.33, up from $1.13 in Q2 2025; diluted EPS from continuing operations increased to $1.39 from $1.17. This also compares with $0.75 diluted EPS in Q1 2026.
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Broad growth outside Vehicle Control
Three of four segments grew: Engineered Solutions rose 13.9% to $80.042 million, Temperature Control rose 10.2% to $144.748 million, and Nissens Automotive rose 4.6% to $94.675 million.
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Cash conversion improved sharply
First-half operating cash flow was $58.266 million, versus a $5.903 million outflow in the prior-year period. Capital expenditures fell to $14.9 million from $19.3 million, implying approximately $43.4 million of first-half cash flow after capex.
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Liquidity and net debt improved
Cash increased to $78.629 million from $72.031 million at December 31, 2025, while total debt declined to $588.827 million from $618.715 million. Net debt fell to $510.198 million from $546.684 million and liquidity rose to $229.515 million.
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Nissens drove high-margin improvement
Nissens Automotive gross margin increased 360 basis points to 42.5%, aided by product mix and the absence of $1.6 million of prior-year inventory fair-value amortization.
What to watch
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Vehicle Control contraction offsets growth
Vehicle Control sales declined 9.3% to $182.912 million from $201.699 million, led by continued wire-set category declines and the estimated obligation for IEEPA tariff refunds that may be returned to customers.
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Some margin expansion is temporary
Management identifies part of the Q2 gross-margin gain as temporary, related to IEEPA tariff-refund accounting. Consolidated gross margin was 32.8% versus 30.6%, while total revenue grew only 1.6% to $501.599 million.
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Tariff and interest-rate uncertainty remains
Tariff and financing-rate exposure remains material: China-sourced products represent approximately one-quarter of U.S. sales, and a 100-basis-point adverse rate move could reduce annualized pre-tax earnings or cash flow by about $2.9 million on debt and $5.1 million on six-month receivables sales.
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Nissens internal-control weakness remains
No new Item 1A risk factors were included in this 10-Q, but the previously disclosed Nissens IT-controls material weakness remains unremediated. Nissens Automotive generated $94.675 million of Q2 sales, and management's remediation work remains ongoing.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management says Temperature Control and Nissens Automotive full-year results depend on summer weather and customer inventory levels, expects Nissens acquisition revenue synergies beginning in 2026 and beyond, and anticipates sufficient liquidity for at least the next 12 months.
Earlier filings 4
10-K · February 26, 2026
Standard Motor Products (SMP) positions itself as a full-line, premium supplier in the automotive aftermarket while expanding Engineered Solutions and European reach via the Nissens acquisition. FY2025 showed material…
10-Q · October 31, 2025
SMP reported Q3 net sales of $498,836,000, up from $399,265,000 in the year-ago quarter, with gross profit of $161,794,000 (32.4% margin) and operating income of $47,636,000 (9.6% margin). Continuing operations EPS…
10-Q · April 30, 2025
SMP reported quarter-over-quarter and year-over-year revenue and margin improvement: net sales of $413,379 (thousands) versus $331,403 in Q1 2024, with gross profit of $124,722 and operating income of $24,462. Diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.