The following is a summary of the Stoneridge, Inc. (SRI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 revenue was $213.8 million, a decrease of 9.8% compared to the previous quarter, influenced by seasonal production changes and enduring macroeconomic pressures across markets.

• Adjusted operating profit stood at $700,000, marking a margin of 0.3%, a decline of 200 basis points from the previous quarter.

• Adjusted EBITDA was $9.2 million or 4.3% of sales, driven by the aforementioned factors and additional net non-operating expenses.

Business Progress:

• Continued deployment and expansion of MirrorEye technology, with new launches including Daimler Truck North America's new truck model.

• Launch of a leak detection module designed for hybrid vehicles, marking an entry into new technology areas aligned with global hybrid vehicle growth.

• Reductions in operating expenses and improvements in inventory management, enhancing cash flow by $31.3 million year-over-year.

Opportunities:

• Expansion of MirrorEye as standard equipment on various truck models by OEMs like DAF and Volvo, indicating a strong market uptake and likely increased future demand.

• New business in control devices, particularly in hybrid vehicle technologies, pointing to potential growth in this evolving market sector.

Risks:

• Observed reduced production across key end markets and the impact of macroeconomic pressures, which have led to lower sales and affected profitability.

• The dependency on market acceptance and broad implementation of the MirrorEye technology in both OEM and aftermarket contexts poses risks if adoption does not continue at the anticipated pace.

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