Segment Reporting

9 Months Ended

Sep. 30, 2025

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer.

The Company has three reportable segments, Control Devices, Electronics and Stoneridge Brazil, which also represent its operating segments. The Control Devices reportable segment produces actuators, sensors, switches and connectors. The Electronics reportable segment produces advanced driver information solutions, vision systems, connectivity and compliance solutions and control modules. The Stoneridge Brazil reportable segment designs and manufactures vehicle tracking devices and monitoring services, driver information systems, vehicle security alarms and convenience accessories telematics solutions and multimedia devices.

The accounting policies of the Company’s reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company’s 2024 Form 10-K. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, operating income and capital expenditures. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

The Company's management, including the CODM, utilizes operating income as the key performance measure of segment profitability to evaluate segment performance, and for planning and forecasting purposes to allocate resources to the segments, as management believes this measure is most reflective of the financial performance of the Company's operating segments. The CODM regularly evaluates budget-to-actual and period-over-period variances for this metric when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses operating income in evaluating the operating performance of each segment and as part of determining the compensation of the segment managers and certain other employees. COGS and D&D are the significant expenses regularly reviewed by the CODM. Other segment costs primarily include SG&A items.

The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable. Such costs and eliminations do not meet the requirements for being classified as an operating segment. Unallocated Corporate costs include various support functions, such as accounting/finance, executive administration, human resources, information technology and legal as well as share-based compensation.

A summary of financial information by reportable segment is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net Sales:
Control Devices	$	71,629	$	73,129	$	210,873	$	230,186
Inter-segment sales	875		1,160		2,642		2,946
Control Devices net sales	72,504		74,289		213,515		233,132
Electronics	121,496		127,483		398,960		422,777
Inter-segment sales	6,542		8,184		19,162		22,492
Electronics net sales	128,038		135,667		418,122		445,269
Stoneridge Brazil	17,142		13,219		46,276		37,084
Inter-segment sales	1,720		411		2,267		610
Stoneridge Brazil net sales	18,862		13,630		48,543		37,694
Eliminations	(9,137)		(9,755)		(24,071)		(26,048)
Total net sales	$	210,267	$	213,831	$	656,109	$	690,047


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Cost of Goods Sold:
Control Devices	$	60,928	$	60,319	$	176,537	$	190,369
Electronics	96,835		101,291		313,854		331,074
Stoneridge Brazil	9,387		7,702		27,611		21,840
Unallocated Corporate (A)	348		28		103		176
Total cost of goods sold	$	167,498	$	169,340	$	518,105	$	543,459

Design and Development:
Control Devices	$	3,930	$	5,047	$	11,928	$	14,998
Electronics	8,788		11,548		34,235		33,957
Stoneridge Brazil	612		857		2,106		2,445
Unallocated Corporate (A)	1,124		191		2,715		2,303
Total design and development	$	14,454	$	17,643	$	50,984	$	53,703

Other Segment Costs:
Control Devices	$	5,573	$	5,632	$	17,480	$	16,797
Electronics	10,001		11,130		36,755		37,312
Stoneridge Brazil	4,459		3,943		12,321		11,920
Unallocated Corporate (A)	11,561		5,828		29,569		22,803
Total other segment costs	$	31,594	$	26,533	$	96,125	$	88,832

Operating (Loss) Income:
Control Devices	$	1,198	$	2,131	$	4,929	$	8,020
Electronics	5,871		3,514		14,115		20,434
Stoneridge Brazil	2,684		717		4,238		880
Unallocated Corporate (A)	(13,032)		(6,047)		(32,387)		(25,281)
Total operating (loss) income	$	(3,279)	$	315	$	(9,105)	$	4,053

Depreciation and Amortization:
Control Devices	$	2,962	$	3,152	$	7,414	$	8,821
Electronics	5,002		4,030		12,514		11,794
Stoneridge Brazil	1,199		1,155		3,434		3,652
Unallocated Corporate	339		492		987		1,696
Total depreciation and amortization (B)	$	9,502	$	8,829	$	24,349	$	25,963

Interest Expense (Income), net:
Control Devices	$	(4)	$	9	$	(178)	$	(10)
Electronics	250		283		683		1,387
Stoneridge Brazil	(295)		(204)		(662)		(798)
Unallocated Corporate	3,850		3,516		10,259		10,460
Total interest expense, net	$	3,801	$	3,604	$	10,102	$	11,039


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Capital Expenditures:
Control Devices	$	1,459	$	2,914	$	3,618	$	6,018
Electronics	1,660		1,298		6,580		5,652
Stoneridge Brazil	2,243		484		2,939		2,223
Corporate (C)	552		212		833		972
Total capital expenditures	$	5,914	$	4,908	$	13,970	$	14,865


	September 30, 2025		December 31, 2024
Total Assets:
Control Devices	$	132,302	$	136,028
Electronics	385,113		365,226
Stoneridge Brazil	62,060		48,280
Corporate (C)	448,440		471,793
Eliminations	(395,836)		(399,771)
Total assets	$	632,079	$	621,556

The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates:


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net Sales:
United States	$	96,992	$	109,395	$	302,634	$	349,025
North America	$	96,992	$	109,395	$	302,634	$	349,025
Brazil	17,142		13,219		46,276		37,084
South America	$	17,142	$	13,219	$	46,276	$	37,084
Sweden	31,999		33,215		106,348		117,208
Estonia	29,167		23,477		94,601		80,504
Netherlands	22,667		19,863		68,079		61,249
Other Europe	959		1,196		2,955		5,778
China	11,341		13,466		35,216		39,199
Europe and Other	$	96,133	$	91,217	307,199		303,938
Total net sales	$	210,267	$	213,831	$	656,109	$	690,047


	September 30, 2025		December 31, 2024
Long-term Assets:
United States	$	84,326	$	90,111
Mexico	9,047		5,254
North America	$	93,373	$	95,365
Brazil	28,898		25,222
South America	$	28,898	$	25,222
Sweden	36,321		32,918
Estonia	11,093		8,363
Netherlands	62,090		57,677
Other Europe	531		653
China	15,458		13,844
Europe and Other	$	125,493	$	113,455
Total long-term assets	$	247,764	$	234,042

__________________________________________________________

(A)Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation.

(B)These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

(C)Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

STONERIDGE INC 10-Q