Standard Motor Products Clears Net Debt Leverage Target

The Tip Desk · November 10, 2026 · 3 min read

Adjusted EBITDA reached a record $66.6 million as net debt leverage fell to 1.8 times from 2.5 times a quarter earlier.

Standard Motor Products, Inc. (SMP), an automotive parts manufacturer and distributor, reported third-quarter net sales of $507.8 million and adjusted net sales of $512.9 million, up 2.8% from a year earlier.

The year-over-year sales increase slowed from 6.7% in the second quarter. Diluted earnings from continuing operations were $1.42 a share, compared with $1.32 a year earlier. Non-GAAP diluted earnings from continuing operations were $1.54 a share, up 13.2% from $1.36 a year earlier.

Adjusted EBITDA rose to a record $66.6 million from $61.7 million a year earlier. Chairman and Chief Executive Officer Eric Sills said the company was pleased with the quarter, citing the 2.8% adjusted sales increase excluding IEEPA tariff-refund accounting, gains in three of four operating segments, and the record EBITDA.

Vehicle Control adjusted net sales increased 6.0% after a 1.6% decrease in the second quarter. The company said the rebound reflected strong sell-in as customers deepened assortments to capture DIFM sales, demand across categories, and an easier year-ago comparison. Customer POS remained positive through the quarter.

Temperature Control adjusted net sales decreased 4.1% against a record comparison last year, after a 15.7% increase in the second quarter when preseason orders landed later in the year. The company said customer POS was solid in the third quarter, with strong sell-through of previously purchased inventory.

Nissens adjusted net sales increased 7.6% to $91.0 million. The company attributed the result to high single-digit local-currency growth tied to record temperatures in certain end-markets, offset by a modest currency-conversion headwind. Engineered Solutions adjusted net sales increased 4.9%. The company said comparisons remain more difficult in the next few quarters and that it would expect more normalized sales growth going forward.

Net debt leverage improved to 1.8 times from 2.5 times at the end of the second quarter, surpassing the company’s target of below 2.0 times by the end of 2026. Total net debt was $381.9 million, down from $510.2 million at the end of the second quarter. The company said the paydown reflected seasonally stronger cash-generating quarters. Inventories were $646.1 million at September 30, 2026, down from $727.9 million at December 31, 2025.

The company reaffirmed full-year 2026 guidance of low- to mid-single-digit sales growth and an adjusted EBITDA margin of 11% to 12%, the same outlook it had restated after the first and second quarters. It said the sales-growth expectation is driven by tailwinds for professional-grade non-discretionary products in the North American aftermarket, momentum in Europe, and steady Engineered Solutions, offset by lapping of tariff pricing and stronger currency conversion. Guidance excludes ongoing changes in the tariff landscape, significant inflation from geopolitical conditions, or higher interest rates on customers’ supply-chain financing.

The board approved a quarterly dividend of 33 cents a share, payable December 1, 2026, to stockholders of record on November 16, 2026.