Standard Motor Products, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. Guidance figures: 2 kept. The quarter’s numbers.

Key takeaways

Net sales rose 9.1%: Net sales were $451.2 million, up 9.1% from $413.4 million, with all segments higher. Operating income was $34.1 million, against $24.5 million. Source
Adjusted EBITDA rose to $44.5M: Adjusted EBITDA was $44.5 million, against $42.8 million. Adjusted EBITDA margin was 9.9%, against 10.4%. Source
Vehicle Control sales rose 11.2%: Vehicle Control sales were $213.8 million, up 11.2%, with Engine Management at $141.1 million against $118.4 million. Operating income was $20.2 million, a 9.4% margin. Source
Gross margin rose to 30.8%: Gross margin was 30.8% against 30.2%. Before acquisition expenses, gross margin was 30.8% against 31.3%, with Vehicle Control at 31.9% against 32.3%. Source
Nissens and Engineered Solutions margins fell: Nissens adjusted EBITDA margin was 12.5% against 17.3%; Engineered Solutions was 6.9% against 9.7%. Management gave currency losses on sourcing and manufacturing variances as causes. Source
Net debt rose on seasonal working capital: Net debt was $599.4 million at quarter-end, up from $546.7 million at year-end, mainly from seasonal working capital build. Cash was $59.2 million, down from $72.0 million. Source

“We are quite pleased with our performance in the first quarter.”
Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Adjusted EBITDA margin Source	Full year 2026	11% - 12%	Kept
Net debt leverage target Source	End of 2026	2.0x adjusted EBITDA	Kept

What changed from last quarter

Guidance kept: Full-year sales growth range and adjusted EBITDA margin range were reaffirmed without change from the previous release. Source
New: Guidance now excludes tariff landscape changes and any significant Middle East inflation. The previous release based guidance on tariffs in place before the Supreme Court ruling and the Section 122 tariffs. Source

Results and growth drivers

Net sales rose 9.1%: Net sales were $451.2 million, up 9.1% from $413.4 million, with all segments higher. Operating income was $34.1 million, against $24.5 million. Source
Diluted EPS rose to $0.81: Diluted EPS from continuing operations was $0.81, against $0.61. Non-GAAP diluted EPS was $0.82, against $0.81 a year earlier. Source
Adjusted EBITDA rose to $44.5M: Adjusted EBITDA was $44.5 million, against $42.8 million. Adjusted EBITDA margin was 9.9%, against 10.4%. Source
Net earnings attributable to SMP up: Net earnings attributable to SMP were $17.1 million, against $12.6 million a year earlier. Source

Segments and regions

Vehicle Control sales rose 11.2%: Vehicle Control sales were $213.8 million, up 11.2%, with Engine Management at $141.1 million against $118.4 million. Operating income was $20.2 million, a 9.4% margin. Source
Temperature Control nearly flat: Temperature Control sales were $89.5 million, up 0.7%, after last year’s record first quarter. Operating income was $10.6 million against $7.8 million, an 11.8% margin. Source
Nissens sales rose 12.4%: Nissens sales were $74.4 million, up 12.4%. Management said the increase was driven by stronger currency conversion, while local-currency sales grew 2.7% against a difficult comparison. Source
Engineered Solutions sales up 12.6%: Engineered Solutions sales were $74.3 million, up 12.6%, with commercial vehicle sales at $22.9 million against $18.6 million. Operating income was $1.7 million, a 2.3% margin, against $3.2 million. Source

“Sales for the quarter increased 9.1%, with all segments performing well, reflecting a continuation of the steady customer demand experienced throughout last year.”
Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer

Costs, margins and pricing

Gross margin rose to 30.8%: Gross margin was 30.8% against 30.2%. Before acquisition expenses, gross margin was 30.8% against 31.3%, with Vehicle Control at 31.9% against 32.3%. Source
SG&A fell to 23.2% of sales: Selling, general and administrative expenses were $104.8 million, or 23.2% of net sales, against $99.8 million and 24.2%. Vehicle Control SG&A was 22.4% of its sales, against 22.8%. Source
Nissens and Engineered Solutions margins fell: Nissens adjusted EBITDA margin was 12.5% against 17.3%; Engineered Solutions was 6.9% against 9.7%. Management gave currency losses on sourcing and manufacturing variances as causes. Source
Tariff pass-through added nominal lift: Management said Vehicle Control sales included a nominal lift from pass-through tariff pricing. Source

Demand, orders and seasonality

Vehicle Control demand described as favorable: Management described customer point-of-sale as favorable and linked Vehicle Control demand to non-discretionary products. Source
Temperature Control preseason orders carried over: Temperature Control had preseason orders left to ship as the second quarter began, ahead of the summer selling season. Source
Nissens orders returned to normal cadence: Nissens first-half 2025 orders were robust; in 2026 the order cadence has returned to a more normal pattern. Source
Engineered Solutions orders recovering on timing: Engineered Solutions recovery was aided by ordering patterns with certain customers in commercial vehicle and power sports markets. Source

“we continue to find ways to perform well in a challenging environment”
Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer

Cash, debt and shareholder returns

Net debt rose on seasonal working capital: Net debt was $599.4 million at quarter-end, up from $546.7 million at year-end, mainly from seasonal working capital build. Cash was $59.2 million, down from $72.0 million. Source
Inventory slightly lower, receivables higher: Inventories were $726.3 million against $727.9 million at December 31, 2025, while accounts receivable rose to $313.0 million from $232.0 million. Source
Operating cash outflow narrowed: Net cash used in operating activities was $41.9 million, against $60.2 million a year earlier. Capital expenditures were $6.7 million, against $9.1 million. Source
Net revolving borrowings and dividends paid: Net borrowings under revolving credit facilities were $51.4 million, and dividends paid were $7.3 million. Source
Dividend declared at $0.33: Dividend declared was $0.33 per share, against $0.31, and treasury stock purchases were $0.3 million. Source

Nissens and strategy

Nissens entering second ownership year: Management said Nissens is now in its second year of ownership, and began to look toward growth from recently launched product categories. Source
Market leadership and nondiscretionary products: Management said it intends to leverage its market leadership and the nondiscretionary nature of its products. Source
Global growth and profitability focus: Management said it is excited about global growth and profitability and looks forward to another year delivering value to shareholders. Source

Coming up, as management said on 30 April 2026

Dividend payment scheduled June 1: The quarterly dividend of $0.33 per share is payable June 1, 2026, to holders of record on May 15, 2026. Source

Risks management discussed

External: Management cited near-term macroeconomic and tariff-related volatility as persisting. Source
Financial: Net debt leverage rose modestly to 3.0x from seasonal working capital build during the quarter. Source
Demand: Management said Temperature Control results depend on how the summer months unfold, after a record prior-year first quarter. Source

Earlier plans management reported on

Not stated: The prior release expected Nissens outperformance to continue; the current release does not state a status.
Not stated: The prior release expected Engineered Solutions to show more stable quarterly performance in 2026; the current release gives no status.
Ahead: The prior release reported full-year 2025 adjusted EBITDA margin of 11.2%, above the 10.5% to 11% guidance.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Anthony (Tony) Cristello

Standard Motor Products, Inc. Releases

First Quarter 2026 Results and Quarterly Dividend

Strong first quarter net sales of $451.2 million up, 9.1% from last year, with increases in all segments
Adjusted Q1 non-GAAP diluted earnings per share of $0.82 and adjusted EBITDA of $44.5 million vs.$0.81 and $42.8 million last year, respectively
Reaffirming full-year guidance of low to mid-single digit sales growth and adjusted EBITDA margin of 11% - 12%

New York, NY, April 30, 2026......Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months ended March 31, 2026.

Net sales for the first quarter of 2026 were $451.2 million, compared to consolidated net sales of $413.4 million during the same quarter in 2025. Earnings from continuing operations for the first quarter of 2026 were $18.3 million or $0.81 per diluted share, compared to earnings of $13.7 million or $0.61 per diluted share in the first quarter of 2025. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the first quarter of 2026 were $18.6 million or $0.82 per diluted share, compared to $18.0 million or $0.81 per diluted share in the first quarter of 2025.

Mr. Eric Sills, Standard Motor Products’ Chairman and Chief Executive Officer stated, “We are quite pleased with our performance in the first quarter. Sales for the quarter increased 9.1%, with all segments performing well, reflecting a continuation of the steady customer demand experienced throughout last year.

First Quarter Highlights:

North American Aftermarket Segments

Vehicle Control sales increased 11.2% in the first quarter, largely on the strength of customer pipeline orders as they expand assortments to capture DIFM share. We continue to experience favorable demand, as evidenced by strong customer POS and reflective of the non-discretionary nature of our products. We also saw a nominal lift from pass-through tariff pricing.
Temperature Control sales increased a modest 0.7%, against last year’s record first quarter, when sales were up 24%. As we enter our second quarter, we still have preseason orders left to ship as customers prepare for the upcoming summer selling season. While we are off to a strong start, including favorable customer POS, ultimately this seasonal business will be determined by the strength of the summer months.

Nissens

Nissens sales increased 12.4% to $74.4 million, driven by a stronger currency conversion. Our sales grew 2.7% in local currency against a difficult comparison. 2025 was marked by robust first half customer orders, while this year has returned to a more normal cadence. As we are now into our second year of ownership, we begin to look towards growth related to recently launched product categories and remain excited about the multitude of opportunities ahead.

Engineered Solutions

Sales in the Engineered Solutions segment showed solid growth of 12.6% over last year’s soft first quarter as demand continues to recover. Sales growth was aided by recovery in commercial vehicle and power sports end-markets, driven by ordering patterns with certain customers.

Profitability & Balance Sheet

Adjusted EBITDA for the quarter increased to $44.5 million, up from $42.8 million last year, driven by solid performance across our North American Aftermarket segments. Nissens EBITDA was negatively impacted by currency transaction losses on sourcing this quarter, and Engineered Solutions experienced temporary unfavorable manufacturing variances as well as certain inflationary headwinds.

From a balance sheet perspective, our cash flows and borrowings were in line with expectations. Total net debt at quarter-end stood at $599.4 million, primarily reflecting an increase over year-end due to seasonal working capital build as sales ramp-up each year during the first quarter. Importantly, our inventory declined slightly in the quarter as we were well prepared for sales orders coming into the year. Our net debt leverage increased modestly to 3.0x due to seasonal working capital build, and we continue to target reducing net debt levels to 2.0x adjusted EBITDA by the end of 2026.

2026 Guidance Update

Our outlook for the full year of 2026 reaffirms our expectation that sales growth will be in the low to mid-single digit range driven by ongoing tailwinds for professional grade non-discretionary products in the North American aftermarket, continuing momentum in our

European business, and an ongoing recovery in Engineered Solutions, offset by a lapping of both tariff pricing and the benefits of stronger currency conversion.

Further, we expect Adjusted EBITDA will be in a range of 11% -12%, aided by initiatives we have underway to drive ongoing profitability gains, partially offset by margin compression attributable to passing through tariffs at cost, which began in the second half of 2025. Note that our guidance excludes the impact of ongoing changes in the tariff landscape, or any significant inflationary impact from the conflict in the Middle East. We intend to address these pressures with our usual combination of cost savings and pricing programs.

Dividends

The Board of Directors has approved payment of a quarterly dividend of 33 cents per share on the common stock outstanding, which will be paid on June 1, 2026, to stockholders of record on May 15, 2026.

Closing Remarks

In closing, Mr. Sills commented, “We are off to a strong start to 2026 and are encouraged by the overall trends across our segments. While the near-term macroeconomic and tariff-related volatility persists, we continue to find ways to perform well in a challenging environment, and leverage our market leadership and the nondiscretionary nature of our products. We are excited about our global opportunities to drive growth and profitability and look forward to another year to deliver value to all our shareholders. I would like to thank our employees for their hard work and commitment to our continued success.”

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, April 30, 2026. This call will be webcast and can be accessed on our website at www.smpcorp.com and clicking on the SMP Q1'26 Earnings Call Webcast link. Investors may also listen to the call by dialing 800-267-6316 (domestic) or 203-518-9783 (international). The conference call ID code is SMP1Q2026. Our playback will be made available for dial in immediately following the call. For those choosing to listen to the replay by webcast, the link should be active on our website within 24 hours after the call. The playback number is 800-934-8340 (domestic) or 402-220-6993 (international).

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management’s expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.

Consolidated Statements of Operations

	Three Months Ended March 31,
(In thousands, except share and per share data, unaudited)		2026		2025
Net sales	$451,166		$413,379
Cost of sales	311,993		288,657
Gross profit	139,173		124,722
Selling, general and administrative expenses	104,837		99,845
Restructuring expenses	366		673
Other income, net	123		258
Operating income	34,093		24,462
Other non-operating income (loss), net	(1,279)		2,248
Interest expense	7,518		7,761
Earnings from continuing operations before income taxes	25,296		18,949
Provision for income taxes	6,826		5,069
Earnings from continuing operations	18,470		13,880
Loss from discontinued operations, net of income taxes	(1,185)		(1,139)
Net earnings	17,285		12,741
Net earnings attributable to noncontrolling interest	149		175
Net earnings attributable to SMP	$17,136		$12,566
Net earnings (loss) attributable to SMP
Continuing operations	$18,321		$13,705
Discontinued operations	(1,185)		(1,139)
Net earnings attributable to SMP per common share	$17,136		$12,566
Per common share data
Basic:
Continuing operations	$0.83		$0.63
Discontinued operations	(0.06)		(0.06)
Net earnings attributable to SMP per common share	$0.77		$0.57
Diluted:
Continuing operations	$0.81		$0.61
Discontinued operations	(0.06)		(0.05)
Net earnings attributable to SMP per common share	$0.75		$0.56
Dividend declared per common share	$0.33		$0.31
Weighted average number of common shares, basic		22,167,006		21,886,810
Weighted average number of common shares, diluted		22,719,732		22,319,868

Segment Revenues

	Three Months Ended March 31,
(in thousands, unaudited)		2026		2025
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)	$141,087		$118,366
Electrical and Safety	57,866		58,319
Wire Sets and Other	14,886		15,657
Total Vehicle Control	213,839		192,342
Temperature Control
AC System Components	65,198		67,191
Other Thermal Components	24,306		21,692
Total Temperature Control	89,504		88,883
Nissens Automotive
Air Conditioning	26,273		27,166
Engine Cooling	31,451		27,773
Engine Efficiency	16,643		11,243
Total Nissens Automotive	74,367		66,182
Engineered Solutions
Light Vehicle	22,920		21,404
Commercial Vehicle	22,908		18,605
Construction/Agriculture	9,504		9,408
All Other	18,980		16,555
Total Engineered Solutions	74,312		65,972
Intersegment sales	(856)		-
Total	$451,166		$413,379

	Three Months Ended March 31,
Standard Motor Products, Inc.
Segment Operating Profit
(in thousands, unaudited; percentage of net sales)				2026			2025
Gross Margin
Vehicle Control	$68,165		31.9%		$62,161	32.3%
Temperature Control	28,652		32.0%		27,598	31.0%
Nissens Automotive	32,071		43.1%		27,838	42.1%
Engineered Solutions		10,285	13.8%		11,709	17.7%
All Other	-				-
Subtotal	$139,173		30.8%		$129,306	31.3%
Acquisition Expenses	-		- %		(4,584)	-1.1%
Gross Margin	$139,173		30.8%		$124,722	30.2%
Selling, General & Administrative
Vehicle Control	$47,962		22.4%		$43,835	22.8%
Temperature Control	18,058		20.2%		19,823	22.3%
Nissens Automotive	24,200		32.5%		20,254	30.6%
Engineered Solutions	8,556		11.5%		8,514	12.9%
All Other	6,059				6,856
Subtotal	$104,835		23.2%		$99,282	24.0%
Acquisition Expenses	2		- %		563	0.1%
Selling, General & Administrative	$104,837		23.2%		$99,845	24.2%
Operating Income
Vehicle Control	$20,203		9.4%		$18,326	9.5%
Temperature Control	10,594		11.8%		7,775	8.7%
Nissens Automotive	7,871		10.6%		7,584	11.5%
Engineered Solutions		1,729	2.3%		3,195	4.8%
All Other	(6,059)				(6,856)
Subtotal	$34,338		7.6%		$30,024	7.3%
Restructuring	(366)		-0.1%		(673)	-0.2%
Acquisition & Integration Expenses	(2)		- %		(5,147)	-1.2%
Other Income, Net	123		- %		258	0.1%
Operating Income	$34,093		7.6%		$24,462	5.9%

	March 31,
	2026	2025
Standard Motor Products, Inc.
Reconciliation of GAAP and Non-GAAP Measures
(In thousands, except per share amounts, unaudited)	Three Months Ended
Earnings from Continuing Operations Attributable To SMP
GAAP Earnings from Continuing Operations	$18,321	$13,705
Restructuring Expenses	366	673
Acquisition & Integration Expenses	2	5,147
Income Tax Effect Related To Reconciling Items	(96)	(1,513)
Non-GAAP Earnings from Continuing Operations	$18,593	$18,012
Diluted Earnings Per Share from Continuing Operations Attributable to SMP
GAAP Diluted Earnings Per Share from Continuing Operations	$0.81	$0.61
Restructuring Expenses	0.01	0.03
Acquisition & Integration Expenses	-	0.23
Income Tax Effect Related To Reconciling Items	-	(0.06)
Non-GAAP Diluted Earnings Per Share from Continuing Operations	$0.82	$0.81
Operating Income
GAAP Operating Income	$34,093	$24,462
Restructuring Expenses	366	673
Acquisition & Integration Expenses	2	5,147	Last Twelve Months Ended
Other Income, Net	(123)	(258)	March 31,				Year Ended
Non-GAAP Operating Income	$34,338	$30,024		2026		2025	December 31, 2025
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes	$25,296	$18,949	$116,870		$79,567		$110,523
Depreciation and Amortization	11,315	10,267	44,896		34,379		43,848
Interest Expense	7,518	7,761	31,096		19,206		31,339
EBITDA	44,129	36,977	192,862		133,152		185,710
Restructuring Expenses	366	673	2,273		8,149		2,580
Acquisition & Integration Expenses	2	5,147	3,438		18,623		8,583
Customer Program Wind Down	-	-	4,067		-		4,067
Special Items	368	5,820	9,778		26,772		15,230
EBITDA without Special Items	$44,497	$42,797	$202,640		$159,924		$200,940
Management believes that Non-GAAP earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations which are attributable to SMP, and Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.

	Three Months Ended March 31, 2026
Standard Motor Products, Inc.
Reconciliation of GAAP and Non-GAAP Measures by Segments
(In thousands, unaudited)	Vehicle Control		Temperature Control		Nissens Automotive		Engineered Solutions		All Other	Consolidated
Operating Income
GAAP Operating Income		$19,613		$10,843		$7,873		$1,822	$(6,058)		$34,093
Restructuring Expenses		272		70		-		24	-		366
Acquisition & Integration Expenses		-		-		2		-	-		2
Other (Income) Expense, Net		319		(320)		(5)		(117)	-		(123)
Non-GAAP Operating Income		$20,204		$10,593		$7,870		$1,729	$(6,058)		$34,338
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes		$17,877		$10,393		$1,361		$1,937	$(6,272)		$25,296
Depreciation and Amortization		4,297		808		3,266		2,594	350		11,315
Interest Expense		1,864		738		4,647		567	(298)		7,518
EBITDA		24,038		11,939		9,274		5,098	(6,220)		44,129
Restructuring Expenses		272		70		-		24	-		366
Acquisition & Integration Expenses		-		-		2		-	-		2
Special Items		272		70		2		24	-		368
EBITDA without Special Items		$24,310		$12,009		$9,276	$5,122		$(6,220)		$44,497
% of Net Sales	11.4%		13.4%		12.5%		6.9%			9.9%
	Three Months Ended March 31, 2025
(In thousands, unaudited)	Vehicle Control		Temperature Control		Nissens Automotive		Engineered Solutions		All Other	Consolidated
Operating Income
GAAP Operating Income		$17,782		$7,900	$2,587			$3,176	$(6,983)		$24,462
Restructuring Expenses		526		136	-			20	(9)		673
Acquisition & Integration Expenses		-		-	5,011			-	136		5,147
Other Income, Net		18		(261)	(14)			(1)	-		(258)
Non-GAAP Operating Income		$18,326		$7,775	$7,584			$3,195	$(6,856)		$30,024
EBITDA without Special Items
GAAP Earnings from Continuing Operations Before Taxes		$17,046		$7,948	$(2,151)			$3,431	$(7,325)		$18,949
Depreciation And Amortization		3,669		778	2,987			2,500	333		10,267
Interest Expense		1,007		539	5,620			459	136		7,761
EBITDA		21,722		9,265	6,456			6,390	(6,856)		36,977
Restructuring Expenses		526		136	-			20	(9)		673
Acquisition & Integration Expenses		-		-	5,011			-	136		5,147
Special Items		526		136	5,011			20	127		5,820
EBITDA without Special Items		$22,248		$9,401	$11,467			$6,410	$(6,729)		$42,797
% of Net Sales	11.6%		10.6%		17.3%		9.7%			10.4%
Management believes that Non-GAAP operating income and EBITDA without special items, each of which are Non-GAAP measurements and are adjusted for special items, are meaningful to investors because they provide a view of the company with respect to ongoing operating results. Special items represent significant charges or credits that are important to an understanding of the company's overall operating results in the periods presented. Such Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.

Consolidated Balance Sheets

(In thousands, except share and per share data)	March 31, 2026	March 31, 2025	December 31, 2025
ASSETS	(Unaudited)	(Unaudited)
CURRENT ASSETS:
Cash	$59,207	$50,276	$72,031
Accounts receivable, less allowances for discounts and expected credit losses of $10,159 for 2026 and $7,157 and $10,043 for March and December 2025, respectively	312,961	280,795	232,020
Inventories	726,308	658,728	727,922
Prepaid expenses and other current assets	21,069	26,282	18,477
Total current assets	1,119,545	1,016,081	1,050,450
Property, plant and equipment, net of accumulated depreciation of $299,761 for 2026 and $279,885 and $300,283 for March and December 2025, respectively	186,442	174,636	188,562
Operating lease right-of-use assets	102,003	112,022	105,178
Goodwill	253,626	246,115	256,159
Customer relationships intangibles, net	204,526	212,378	212,056
Other intangibles, net	97,303	93,087	99,102
Deferred income taxes	25,599	14,064	25,384
Investments in unconsolidated affiliates	26,685	26,013	26,310
Other assets	32,570	31,695	32,040
Total assets	$2,048,299	$1,926,091	$1,995,241
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of revolving credit facility	$30,000	$4,350	$30,000
Current portion of term loan and other debt	19,370	18,876	21,988
Accounts payable	179,524	151,206	169,089
Sundry payables and accrued expenses	98,246	92,758	92,054
Accrued customer returns	63,710	66,087	49,554
Accrued rebates	75,924	73,050	84,494
Payroll and commissions	34,298	31,050	46,135
Total current liabilities	501,072	437,377	493,314
Long-term debt	609,250	627,329	566,727
Noncurrent operating lease liabilities	90,345	99,885	93,381
Accrued asbestos liabilities	109,783	29,135	112,625
Other accrued liabilities	30,270	79,928	30,932
Total liabilities	1,340,720	1,273,654	1,296,979
Commitments and contingencies
Stockholders’ equity:
Common stock - par value $2.00 per share (Authorized - 30,000,000 shares; issued 23,936,036 shares)	47,872	47,872	47,872
Capital in excess of par value	101,104	99,547	99,005
Retained earnings	599,276	581,174	589,448
Accumulated other comprehensive income	11,664	(13,655)	17,857
Treasury stock - at cost (1,690,616 shares in 2026 and 1,955,013 and 1,790,097 shares in March and December 2025, respectively)	(66,589)	(76,977)	(70,483)
Total SMP stockholders’ equity	693,327	637,961	683,699
Noncontrolling interest	14,252	14,476	14,563
Total stockholders’ equity	707,579	652,437	698,262
Total liabilities and stockholders’ equity	$2,048,299	$1,926,091	$1,995,241

Consolidated Statements of Cash Flows

(In thousands, unaudited)	Three Months Ended March 31,
		2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$17,285		$12,741
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	11,315		10,267
Amortization of deferred financing cost	278		327
(Decrease) increase to allowance for expected credit losses	(124)		1,614
Increase to inventory reserves	901		1,843
Equity income from joint ventures	(669)		(1,084)
Employee stock ownership plan allocation	822		675
Stock-based compensation	2,989		1,550
Increase in deferred income taxes	(980)		(16)
Loss on discontinued operations, net of tax	1,185		1,139
Change in assets and liabilities:
Increase in accounts receivable	(82,541)		(68,882)
Increase in inventories	(1,966)		(14,576)
(Increase) decrease in prepaid expenses and other current assets	(104)		1,438
Increase in accounts payable	11,419		957
Increase (decrease) in sundry payables and accrued expenses	1,524		(3,185)
Net change in other assets and liabilities	(3,263)		(5,028)
Net cash used in operating activities	(41,929)		(60,220)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(6,740)		(9,132)
Other investing activities	33		2,923
Net cash used in investing activities	(6,707)		(6,209)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of term loans	(3,938)		(3,853)
Net borrowings under revolving credit facilities	51,437		80,962
Net (repayments) borrowings of other debt and lease obligations	(3,531)		1,985
Purchase of treasury stock	(283)		-
Increase in overdraft balances	93		191
Dividends paid	(7,308)		(6,777)
Dividends paid to noncontrolling interest	(624)		-
Net cash provided by financing activities	35,846		72,508
Effect of exchange rate changes on cash	(34)		(229)
Net (decrease) increase in cash	(12,824)		5,850
CASH at beginning of period	72,031		44,426
CASH at end of period	$59,207		$50,276

Contacts
For more information, contact:
(972) 316-8107 investors@smpcorp.com