Key Highlights

  • SMP shares trading up 10.90% to $42.42 after third-quarter results on Friday.
  • Adjusted diluted EPS from continuing operations rose 13.2% to $1.54 from $1.36.
  • Adjusted EBITDA reached a company record of $66.6 million, up from $61.7 million.
  • Net Debt fell to $381.9 million from $510.2 million at the end of the second quarter.
  • The quarterly Dividend was set at $0.33 per share, up from $0.31 a year earlier.

Record Adjusted EBITDA and a 13.2% Adjusted EPS Gain Drive the Rally

Standard Motor Products (NYSE:SMP) shares are trading up 10.90% after the company released third-quarter 2026 results on Friday. Adjusted Diluted Earnings per Share from continuing operations rose 13.2% to $1.54 from $1.36, ahead of a market estimate of about $1.39.

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

Net sales were $507.8 million, up 1.8% from $498.8 million. Adjusted net sales, which remove a $5.1 million accounting effect from Tariff refunds, were $512.9 million, up 2.8% and roughly in line with a market estimate near $513.3 million.

Vehicle Control and Nissens Offset a 4.1% Dip in Temperature Control

Vehicle Control adjusted sales climbed 6.0% to $209.5 million, and Nissens Automotive rose 7.6% to $91.0 million. Engineered Solutions added 4.9% to $75.8 million, though management expects tougher comparisons ahead.

Temperature Control fell 4.1% to $138.7 million against a record quarter a year earlier, but remains up 4.2% for the year to date.

Gross profit was $165.6 million, up from $161.8 million, and Operating Income rose to $50.1 million from $47.6 million. Adjusted EBITDA works out to about 13.0% of adjusted sales, against roughly 12.4% a year ago.

For the first nine months, diluted earnings from continuing operations were $3.62 on a GAAP basis, up from $3.11, while adjusted earnings reached $3.76 versus $3.45. Nine-month net sales totaled $1,460.6 million, compared with $1,406.1 million a year earlier.

Net Debt Leverage Drops to 1.8 Times, Beating the Year-End Target Early

Cash rose to $105.0 million at September 30, while total debt was $487.0 million, leaving net debt at $381.9 million. Net debt leverage of 1.8 times compares with 2.5 times at the end of the second quarter and sits below the company's target of 2.0 times by year-end.

Inventory declined to $646.1 million from $727.9 million at the end of 2025. Operating Cash Flow for the first nine months was $207.2 million, compared with $85.7 million a year earlier.

Total diluted earnings per share were $0.62 after an $18.5 million loss from discontinued operations, compared with a loss of $0.19 a year ago. A $3.6 million litigation charge was excluded from the adjusted figures.

Reaffirmed 2026 Outlook and the $0.33 Dividend Frame the Next Updates

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