Stoneridge (2GX) Q3 2026 Earnings Report

The call was predominantly positive, supported by 30% adjusted revenue growth, nearly 26% core growth, record MirrorEye sales, new vision-system orders worth approximately $180 million through 2028, improved cash flow, lower debt, and raised revenue guidance. However, profitability remains pressured by legacy warranty matters, a $25.5 million arbitration award, lower gross margins, inflation in memory chips and electronic components, unfavorable currency, and adjusted EBITDA guidance at the bottom of the prior range.

For 2026, Stoneridge now expects revenue in the range of $690 million-$700 million, a $37.5 million increase at the midpoint versus prior guidance, and adjusted EBITDA at the bottom end of its guidance range of $20 million-$25 million; the company remains on track to deliver more than the targeted $5 million in structural cost savings in 2026, while the implied fourth quarter outlook reflects over 20% year-over-year growth in adjusted revenue and achieving the bottom end of the full-year adjusted EBITDA guidance range would imply a roughly 60% increase in profitability versus the prior year period. For 2027, North American OEM volume expectations range anywhere from mid-single digits to double-digit percentage growth versus 2026 levels, IHS anticipates incremental growth over 2026 of nearly 3%, and Stoneridge expects to ramp a vision-system program from the beginning of 2027 that is anticipated to generate cumulative incremental sales of approximately $180 million through 2028; over the long term, the company believes it can outpace the rate of market growth by two to three times.