Key Highlights

  • SMP shares are up 10.90% in trading to $42.42 following third-quarter results released Friday.
  • Adjusted diluted EPS from continuing operations increased 13.2% to $1.54 from $1.36.
  • Adjusted EBITDA hit a company high of $66.6 million, compared with $61.7 million previously.
  • Net Debt declined to $381.9 million from $510.2 million at the end of the second quarter.
  • The quarterly Dividend was declared at $0.33 per share, versus $0.31 a year earlier.

Adjusted EPS Gains 13.2% as Record EBITDA Powers the Advance

Standard Motor Products (NYSE:SMP) shares are trading 10.90% higher following the release of third-quarter 2026 figures on Friday. Adjusted diluted EPS from continuing operations rose 13.2% to $1.54 from $1.36, topping a market estimate of roughly $1.39.

The company manufactures and distributes automotive replacement parts through four segments: Vehicle Control, Temperature Control, Nissens Automotive and Engineered Solutions. The range runs from engine management and emissions components to air conditioning and cooling parts.

Net sales came to $507.8 million, up 1.8% from $498.8 million. Excluding a $5.1 million accounting effect tied to Tariff refunds, adjusted net sales reached $512.9 million, a 2.8% gain that was close to a market estimate of about $513.3 million.

Nissens and Vehicle Control Growth Offsets a 4.1% Pullback in Temperature Control

Vehicle Control adjusted sales rose 6.0% to $209.5 million, while Nissens Automotive grew 7.6% to $91.0 million. Engineered Solutions added 4.9% to $75.8 million, although management anticipates tougher year-over-year comparisons.

Temperature Control slipped 4.1% to $138.7 million against a record quarter a year ago, yet it is still ahead 4.2% for the year to date.

Gross profit rose to $165.6 million from $161.8 million, and Operating Income increased to $50.1 million from $47.6 million. Adjusted EBITDA equals roughly 13.0% of adjusted sales, compared with about 12.4% a year earlier.

Over the first nine months, GAAP diluted Earnings from continuing operations were $3.62, up from $3.11, and adjusted earnings reached $3.76 against $3.45. Nine-month net sales totaled $1,460.6 million, versus $1,406.1 million a year earlier.

Net Debt Leverage Falls to 1.8 Times, Ahead of the 2.0 Times Year-End Goal

Cash climbed to $105.0 million by September 30, while total debt stood at $487.0 million, leaving net debt at $381.9 million. Net debt leverage of 1.8 times improved from 2.5 times at the end of the second quarter and is under the company's year-end target of 2.0 times.

Inventory fell to $646.1 million from $727.9 million at the end of 2025. Operating Cash Flow for the first nine months reached $207.2 million, up from $85.7 million a year earlier.

Total diluted EPS came to $0.62 after an $18.5 million loss from discontinued operations, versus a loss of $0.19 a year ago. A $3.6 million litigation charge was left out of the adjusted results.

Outlook Holds at Low-to-Mid Single-Digit Growth as the $0.33 Dividend Is Set

The company reaffirmed its 2026 outlook for low to mid single-digit sales growth and an adjusted EBITDA Margin between 11% and 12%, excluding further tariff changes, geopolitical Inflation and higher interest rates. The $0.33 quarterly dividend carries a November 16 Record Date and is payable December 1. Investors will watch whether leverage continues to decline and how Temperature Control performs in the next seasonal cycle. Market Capitalization was not available in the sources reviewed.