Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. has demonstrated a strong sales performance in its segments, with the Electronics segment achieving Q2/25 sales of $149.6 million, which reflects a 6.4% sequential increase primarily attributed to favorable foreign exchange translations and a notable 21% growth in MirrorEye sales. Additionally, the Control Devices segment reported Q2/25 sales of $71.2 million, marking a 1.9% sequential rise driven by heightened production volumes in the North American passenger vehicle market. Furthermore, Stoneridge Brazil experienced a 6.0% sequential sales increase to $15.3 million in Q2/25, supported by favorable foreign exchange effects and stronger aftermarket product sales.

Stoneridge Inc. has reported a significant decline in its Q2/25 adjusted operating income, which fell by 39% to $4.2 million, primarily due to escalating material costs and increased selling, general, and administrative expenses. The company is facing adverse market conditions, with IHS projecting a 2.2% reduction in its weighted average end markets, driven by a forecasted 17.5% decline in North American commercial vehicle production volumes for 2025. Additionally, the Electronics segment's year-over-year sales decreased by 2.6%, further compounding its challenges evidenced by an adjusted operating margin decline of 490 basis points to 2.8%.