Stoneridge (SRI) Q3 2026: A Legal Charge Hid a Strong Quarter
As seen on the 24/7 Wall St. homepage on November 4, 2026.
A $24.2 million arbitration judgment over legacy PM sensor warranty claims was booked straight against net sales, which is why the top line looks like a 12.8% shortfall while adjusted earnings came in positive for the first time in two years. Strip it out and adjusted sales rose about 30%, with MirrorEye topping $37 million, enough for management to raise 2026 adjusted revenue guidance to $690 million to $700 million, though adjusted EBITDA now lands at the bottom of the $20 million to $25 million range on semiconductor inflation.
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Stoneridge's third-quarter results split cleanly into two stories: a GAAP report distorted by a one-time legal hit, and an underlying operating recovery that management says is durable. A $24.2 million arbitration judgment tied to legacy PM sensor warranty claims was booked as a direct reduction to net sales, which is what pushed reported revenue to $155.8 million and produced a GAAP diluted loss of $0.81 per share. Strip that charge out and the picture looks meaningfully different.
On an adjusted basis, sales rose roughly 30% and earnings per share came in at $0.06, beating the consensus estimate of negative $0.05. That marks the first positive adjusted EPS for the company in two years, ending a streak of consecutive quarterly losses that stretches back through Q4 2024. MirrorEye, Stoneridge's camera-mirror system for commercial trucks, led the way with more than $37 million in revenue, up 48% year over year.
Stoneridge Brazil also set a record at $21.5 million in revenue, with local OEM business growing 56%. The Electronics segment, which houses both MirrorEye and the Brazil operation, posted $158.6 million in revenue, up 30.5%. Those results, combined with an 8-percentage-point outperformance against the company's weighted-average OEM end markets, gave management confidence to raise full-year 2026 adjusted revenue guidance to $690 million to $700 million, up from a prior range of $645 million to $670 million.
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The guidance upgrade carries an asterisk. Semiconductor inflation and unfavorable currency movements are expected to weigh on the fourth quarter, and management now anticipates adjusted EBITDA will come in at the bottom of its unchanged $20 million to $25 million range. Adjusted gross margin guidance was trimmed to 20.5% to 21.0%, down from the prior 21.5% to 22.0%. CEO Natalia Noblet cited the resolution of several legacy warranty and inventory matters, as well as ongoing inflationary cost pressures, as the factors behind the EBITDA caution.
Longer-term signals are more constructive. Management announced roughly $180 million in additional OEM orders for existing vision systems, expected to generate cumulative incremental sales through 2028. A multi-year off-highway vision program runs through 2030 with an estimated $375 million in lifetime revenue. European and North American commercial vehicle demand is expected to strengthen into 2027, and the company's Credit Facility refinancing is in progress ahead of its July 2027 maturity.
Mentioned: SRI