NOVI, Mich. — A Novi maker of vehicle electronics said Wednesday that a warranty arbitration ruling wiped out its third-quarter profit on a GAAP basis even as core sales and cash earnings looked stronger than a year ago.
Stoneridge Inc. recorded a $22.9 million continuing-operations shortfall, equal to 81 cents a share, for the quarter that closed Sept. 30. That compares with an $8.9 million shortfall, or 32 cents a share, a year earlier. Top-line sales came in at $155.8 million after the company shaved $24.2 million off net sales for the award.
The Nov. 2 panel decision handed a former Control Devices customer about 22.5 million euros — roughly $25.5 million once interest and costs are counted — over old particulate-matter sensor warranty claims. Stoneridge exited that sensor work years ago and sold Control Devices early in 2026. Company leaders contest the ruling and are weighing options; if an appeal fails, they say cash already on hand would cover the bill.
On measures that exclude the charge and other adjustments, sales reached $180.0 million, a 29.9 percent year-over-year jump, and adjusted profit was $1.6 million, or 6 cents a share. Adjusted EBITDA rose to $7.3 million, about 42 percent above the year-ago level.
Full-year guidance now calls for adjusted sales between $690 million and $700 million, with adjusted EBITDA expected near the low end of the earlier $20-$25 million band. Vision-system orders already in hand are forecast to add about $180 million of incremental revenue through 2028. Net debt was $80.2 million on Sept. 30, down $47.6 million from year-end 2025.
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