Second quarter 2026
Filed Aug 4, 2026Second quarter net sales of $501.6 million with adjusted net sales up 6.7% to $526.7 million; non-GAAP diluted earnings per share of $1.40 up 8.6%; full-year sales-growth and adjusted EBITDA-margin guidance reaffirmed.
Adjusted sales growth, higher GAAP and non-GAAP earnings per share, record adjusted EBITDA, and lower net debt leverage supported the quarter. Performance was uneven within North American Aftermarket, with Vehicle Control down because of order timing and wire sets, while guidance remained unchanged and includes meaningful tariff, inflation, and weather-related qualifications.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated net sales, three months ended June 30, 2026GAAP | $501.6 million | – | – |
| Consolidated adjusted net sales, three months ended June 30, 2026non-GAAP | $526.7 million | – | 6.7% |
| Earnings from continuing operations, three months ended June 30, 2026GAAP | $31.8 million | – | – |
| Diluted earnings per share from continuing operations, three months ended June 30, 2026GAAP | $1.39 per diluted share | – | – |
| Non-GAAP earnings from continuing operations, three months ended June 30, 2026non-GAAP | $31.9 million | – | – |
| Non-GAAP diluted earnings per share from continuing operations, three months ended June 30, 2026non-GAAP | $1.40 per diluted share | – | 8.6% |
| Adjusted EBITDA, second quarter of 2026non-GAAP | $63.5 million | – | – |
| Consolidated net sales, six months ended June 30, 2026GAAP | $952.8 million | – | – |
| Consolidated adjusted net sales, six months ended June 30, 2026non-GAAP | $977.9 million | – | – |
| Earnings from continuing operations, six months ended June 30, 2026GAAP | $50.1 million | – | – |
| Diluted earnings per share from continuing operations, six months ended June 30, 2026GAAP | $2.20 per diluted share | – | – |
| Non-GAAP earnings from continuing operations, six months ended June 30, 2026non-GAAP | $50.5 million | – | – |
| Non-GAAP diluted earnings per share from continuing operations, six months ended June 30, 2026non-GAAP | $2.23 per diluted share | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| NissensGrowth reflected 2.3% sales growth in local currency and a stronger currency conversion. The company cited gains in engine efficiency product categories and early results in recently launched product categories. | $94.9 million | – | 4.8% |
Full year of 2026 outlook
- Revenuelow to mid-single digit sales growth
- Noteadjusted EBITDA will be in a range of 11% -12%
- NoteGuidance excludes the impact of ongoing changes in the tariff landscape, any significant inflationary impact from the conflict in the Middle East, or increase in interest rates impacting customers’ supply chain financing programs.
Capital returns
- The Board of Directors approved a quarterly dividend of 33 cents per share on the common stock outstanding.
- The dividend will be paid on September 1, 2026 to stockholders of record on August 14, 2026.
What drove it
- Three of four operating segments showed strong adjusted-net-sales gains.
- Temperature Control adjusted net sales increased 15.7% as preseason orders fell more heavily into the second quarter.
- Nissens adjusted net sales increased 4.8%, supported by 2.3% local-currency sales growth and stronger currency conversion.
- Engineered Solutions adjusted net sales grew 16.8% over last year’s soft second quarter, with improvement across all end-markets as demand recovered.
- Adjusted EBITDA increased to $63.5 million, driven by solid performance across Temperature Control, Nissens, and Engineered Solutions.
- North American aftermarket demand was supported by professional grade non-discretionary products, while European momentum and an Engineered Solutions recovery were cited as full-year growth drivers.
Concerns
- Vehicle Control adjusted net sales decreased 1.6%, largely because of customer-order timing following a very strong first quarter.
- Wire sets were down significantly, reflecting slow secular decline and customers right-sizing inventories.
- Vehicle Control EBITDA was negatively affected by increased distribution and associated expenses related to the Shawnee, Kansas distribution center transition.
- Temperature Control full-year performance depends on the length and intensity of the selling season, and the company faces a strong second-half comparison.
- Engineered Solutions will face a tougher comparison in the second half of the year.
- Full-year growth is expected to be offset by lapping tariff pricing and benefits from stronger currency conversion.
- Guidance excludes ongoing tariff changes, significant inflation from the conflict in the Middle East, and interest-rate effects on customers’ supply-chain-financing programs.
What to watch
- Weather trends during the third-quarter selling season for Temperature Control and record temperatures across Europe for Nissens air conditioning products.
- Whether Vehicle Control customer order timing normalizes and whether wire sets continue to pressure the segment.
- Distribution and associated expenses tied to the Shawnee, Kansas distribution center transition.
- The contribution from the Techstrong joint venture to manufacturing breadth, supply-chain diversification, and cost effectiveness.
- Progress toward the target of reducing net debt levels to 2.0x adjusted EBITDA by the end of 2026.
- Tariff, inflation, currency-conversion, and customer supply-chain-financing conditions that are excluded from guidance.
Balance sheet and cash flow
- Year-to-date 2026 operating cash flow improved $64.2 million.
- Total net debt at quarter-end stood at $510.2 million, down from $599.4 million at the end of the first quarter.
- Inventory was reduced to $684.2 million from $727.9 million at December 31, 2025.
- Net debt leverage decreased to 2.5x from 3.0x in the first quarter of 2026.
- The company continues to target reducing net debt levels to 2.0x adjusted EBITDA by the end of 2026.
Analysis
Standard Motor Products delivered higher second-quarter sales and earnings. Consolidated net sales were $501.6 million versus $493.9 million in the comparable 2025 quarter, while adjusted net sales were $526.7 million and were stated to be up 6.7%. GAAP earnings from continuing operations increased to $31.8 million, or $1.39 per diluted share, and non-GAAP earnings from continuing operations were $31.9 million, or $1.40 per diluted share. The company also described adjusted EBITDA of $63.5 million as a record, compared with $59.1 million last year.
The growth mix was constructive but not uniform. Temperature Control adjusted net sales increased 15.7% because preseason orders fell more heavily into the second quarter, while Nissens grew 4.8% to $94.9 million, aided by local-currency growth and currency conversion. Engineered Solutions rose 16.8% from a soft prior-year quarter as demand recovered across end-markets. Vehicle Control was the exception, with adjusted net sales down 1.6% because of customer-order timing and a significant wire sets decline. Management said customer point-of-sale for Vehicle Control remained positive, supporting its assessment of continuing demand for non-discretionary products.
Profitability benefited from Temperature Control, Nissens, and Engineered Solutions, although Vehicle Control EBITDA was negatively affected by distribution and associated costs from the Shawnee, Kansas distribution center transition. The six-month figures also showed higher sales and earnings: GAAP net sales were $952.8 million, earnings from continuing operations were $50.1 million, and non-GAAP earnings from continuing operations were $50.5 million. The supplied filing text does not provide reported gross-profit, operating-income, or margin line items for the quarter.
Balance-sheet progress was material. Total net debt was $510.2 million at quarter-end, compared with $599.4 million at the end of the first quarter, and net debt leverage declined to 2.5x from 3.0x. Inventory fell to $684.2 million from $727.9 million at December 31, 2025. The company said year-to-date operating cash flow improved $64.2 million and retained a target of reducing net debt to 2.0x adjusted EBITDA by the end of 2026. The board also approved a quarterly dividend of 33 cents per share.
Management reaffirmed full-year expectations for low to mid-single digit sales growth and adjusted EBITDA of 11% -12%. The outlook relies on North American aftermarket demand, European momentum, and Engineered Solutions recovery, but anticipates offsets from lapping tariff pricing and stronger-currency conversion. The guidance explicitly excludes ongoing tariff changes, potential inflation related to the conflict in the Middle East, and interest-rate effects on customers’ supply-chain-financing programs. Seasonal weather, tougher second-half comparisons, and the Vehicle Control recovery are central variables for the remainder of the year.
Management, verbatim
Overall we were pleased with our second quarter. Adjusted net sales for the quarter, excluding the impact of accounting treatment for tariff refunds received in the quarter, increased 6.7% with three of our four operating segments showing strong gains, while adjusted EBITDA increased to a record-setting $63.5 million.
Eric Sills, Chairman and Chief Executive Officer
As we head into the second half of the year, we are encouraged by the performance across all our segments. The resiliency of the aftermarket in both North America and Europe remains intact, evidenced by strong demand for our non-discretionary products, and we are pleased with the ongoing momentum in our Engineered Solutions business. I would like to thank our employees for their hard work and commitment to our continued success.
Eric Sills, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue for Vehicle Control, Temperature Control, and Engineered Solutions was not provided in the supplied filing text.
- Prior-year segment revenue for Nissens was not provided on the Nissens revenue line.
- GAAP gross profit, gross margin, operating income, operating margin, net income, and tax rate were not provided in the supplied filing text.
- Non-GAAP gross profit, gross margin, operating income, operating margin, and a full reconciliation of non-GAAP measures were not provided because the supplied filing text is truncated.
- Actual operating cash flow, prior-year operating cash flow, free cash flow, cash balance, gross debt, and debt maturities were not provided.
- Share repurchases and repurchase authorization information were not provided.
- A prior outlook section was not provided, so no comparison with prior guidance is included.
- Quarterly adjusted EBITDA margin and full-year revenue dollar guidance were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.