Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. has demonstrated solid revenue growth across its segments, with Control Devices achieving $71.2 million in sales for Q2/25, reflecting a 1.9% increase driven by higher production volumes in the North American passenger vehicle market. The Electronics segment reported Q2/25 sales of $149.6 million, a 6.4% sequential increase, primarily fueled by favorable foreign exchange translations and substantial growth in MirrorEye sales, which rose 21%. Additionally, Stoneridge Brazil contributed $15.3 million in sales for Q2/25, representing a 6.0% increase compared to Q1/25, supported by favorable FX effects and enhanced aftermarket product sales.

Stoneridge Inc. has experienced a 39% decline in adjusted operating income to $4.2 million in Q2/25, primarily attributed to rising material costs and increased selling, general and administrative (SG&A) expenses. Additionally, the company is facing challenging market conditions, as IHS forecasts a significant 17.5% decline in North American commercial vehicle production volumes for 2025, contributing to a further projected reduction in weighted average end markets. The Electronics segment showed a year-over-year sales decrease of 2.6%, alongside a substantial drop in the adjusted operating margin, which fell 490 basis points to 2.8%.