Standard Motor Products reports $507.79 million revenue for Q3 2026

Cover page 2 changes

3 unchanged paragraphs

For the quarterly period ended June September 30, 2026

20 unchanged paragraphs

As of the close of business on July 31, October 28, 2026, there wer e 22,340,293 22,341,811 outstanding shares of the registrant s Common Stock, par value $2.00 per share.

2 unchanged paragraphs

Financial statements 120 changes

2 unchanged paragraphs

June 30, Six Months Ended

September 30, Nine Months Ended

1 unchanged paragraph

Gross profit 164,619 150,889 303,792 275,611

Gross profit 165,585 161,794 469,377 437,405

2 unchanged paragraphs

Other income (expense), net ( 4 ) 49 119 307

Operating income 50,844 42,836 84,937 67,298

Other non-operating income (loss), net

Other income (expense), net ( 3 ) 12 116 319

Operating income 50,149 47,636 135,086 114,934

Other non-operating income, net 958 1,734 472 5,857

2 unchanged paragraphs

Earnings from continuing operations 32,037 26,595 50,507 40,475

Net earnings 30,644 25,537 47,929 38,278

Net earnings attributable to SMP (a) $ 30,368 $ 25,242 $ 47,504 $ 37,808

Earnings from continuing operations 32,844 29,999 83,351 70,474

Loss from discontinued operations, net of income taxes ( 1,393 18,472 ) ( 1,058 34,172 ) ( 2,578 21,050 ) ( 2,197 36,369 )

Net earnings (loss) 14,372 ( 4,173 ) 62,301 34,105

Net earnings attributable to noncontrolling interest 276 295 425 470 224 162 649 632

Net earnings (loss) attributable to SMP (a) $ 14,148 $ ( 4,335 ) $ 61,652 $ 33,473

3 unchanged paragraphs

Net earnings attributable to SMP $ 30,368 $ 25,242 $ 47,504 $ 37,808

Net earnings (loss) attributable to SMP $ 14,148 $ ( 4,335 ) $ 61,652 $ 33,473

3 unchanged paragraphs

Net earnings attributable to SMP per common share $ 1.36 $ 1.15 $ 2.14 $ 1.72 ( 0.06 ) ( 0.04 ) ( 0.12 ) ( 0.10 )

Net earnings attributable to SMP per common share $ 1.33 $ 1.13 $ 2.08 $ 1.69

Net earnings (loss) attributable to SMP per common share $ 0.63 $ ( 0.20 ) $ 2.77 $ 1.52 ( 0.80 ) ( 1.51 ) ( 0.92 ) ( 1.62 )

Net earnings (loss) attributable to SMP per common share $ 0.62 $ ( 0.19 ) $ 2.70 $ 1.49

7 unchanged paragraphs

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

1 unchanged paragraph

Net earnings $ 30,644 $ 25,537 $ 47,929 $ 38,278

Net earnings (loss) $ 14,372 $ ( 4,173 ) $ 62,301 $ 34,105

3 unchanged paragraphs

Total other comprehensive income 28,629 56,086 39,885 80,968

Total other comprehensive income (loss), net of tax ( 2,015 717 ) 30,549 ( 8,044 2,217 ) 42,690 ( 8,761 ) 40,473

Total comprehensive income (loss) 13,655 ( 6,390 ) 53,540 74,578

1 unchanged paragraph

Net earnings 276 295 425 470

Net earnings 224 162 649 632

1 unchanged paragraph

Comprehensive income attributable to SMP, net of tax $ 28,273 $ 55,722 $ 39,216 $ 80,465

Comprehensive income attributable to noncontrolling interest, net of tax 356 364 669 503 280 215 949 718

Comprehensive income (loss) attributable to SMP, net of tax $ 13,375 $ ( 6,605 ) $ 52,591 $ 73,860

4 unchanged paragraphs

June September 30, 2026 December 31, 2025

Accounts receivable, less allowances for discounts and expected credit losses of $ 10,539 10,395 and $ 10,043 for 2026 and 2025, respectively

2 unchanged paragraphs

Property, plant and equipment, net of accumulated depreciation of $ 304,925 309,409 and $ 300,283 for 2026 and 2025, respectively

1 unchanged paragraph

Customer relationships intangibles, net 198,889 193,720 212,056

3 unchanged paragraphs

Other assets 34,626 32,040

Other assets 37,034 32,040

2 unchanged paragraphs

Current portion of revolving credit facility $ 34,579 50,000 $ 30,000

13 unchanged paragraphs

Treasury stock at cost ( 1,598,589 1,594,225 shares and 1,790,097 shares in 2026 and 2025, respectively)

9 unchanged paragraphs

Net earnings $ 47,929 $ 38,278

Net earnings $ 62,301 $ 34,105

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

2 unchanged paragraphs

Increase to inventory reserves 2,164 3,907

Increase to allowance for expected credit losses 113 2,041 53 2,865

Increase to inventory reserves 4,837 5,367

3 unchanged paragraphs

Decrease in deferred income taxes 421 504

Increase in deferred income taxes ( 1,449 ) ( 3,584 )

2 unchanged paragraphs

Increase in accounts receivable ( 129,028 ) ( 108,180 )

Decrease (increase) in inventories 37,755 ( 3,217 )

Increase in accounts payable 13,385 17,068

Increase in accounts receivable ( 78,295 ) ( 78,691 )

Decrease (increase) in inventories 74,297 ( 22,777 )

(Increase) decrease in prepaid expenses and other current assets ( 493 3,221 ) 5,816 3,403 (Decrease) increase in accounts payable ( 2,105 ) 22,431

Increase in sundry payables and accrued expenses 62,616 15,863 88,908 46,211

1 unchanged paragraph

Net cash provided by (used in) operating activities 58,266 ( 5,903 )

Net cash provided by operating activities 207,171 85,681

1 unchanged paragraph

Capital expenditures ( 14,949 ) ( 19,295 )

Other investing activities 420 2,972

Capital expenditures ( 23,534 ) ( 29,334 )

Other investing activities ( 3,434 ) 3,043

Net cash used in investing activities ( 14,529 26,968 ) ( 16,323 26,291 )

1 unchanged paragraph

Repayments of term loans ( 8,142 ) ( 7,821 )

Dividends paid ( 14,668 ) ( 13,592 )

Net cash (used in) provided by financing activities ( 39,455 ) 32,624

Net increase in cash 6,598 14,366

Repayments of term loans ( 11,782 ) ( 11,788 )

Net (repayments) borrowings under revolving credit facilities ( 11,278 107,718 ) 52,668 9,735

Net (repayments) borrowings of other debt and lease obligations ( 4,623 5,600 ) 1,021 892

Purchase of treasury stock ( 283 320 )

(Decrease) increase in overdraft balances 163 348 ( 85 ) 1,542

Dividends paid ( 22,040 ) ( 20,408 )

Dividends paid to noncontrolling interest ( 624 ) ( 335 )

Net cash used in financing activities ( 148,169 ) ( 20,362 )

Effect of exchange rate changes on cash 2,316 3,968 972 3,747

Net increase in cash 33,006 42,775

1 unchanged paragraph

2 unchanged paragraphs

3 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

6 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

and 40 more changes in the filing

Note 4: Restructuring Expenses 6 changes

1 unchanged paragraph

During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico. In 2025, we extended the program for plans to relocate additional product lines from certain plants in the United States and Canada to our existing manufacturing facilities in Mexico. We anticipate that the Cost Reduction Initiative will be substantially complete by the end of 2026. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $ 7.1 7.2 million.

Activity for the six nine months ended June September 30, 2026 related to the Cost Reduction Initiative consisted of the following (in thousands):

3 unchanged paragraphs

Cash payments ( 142 ) ( 468 ) ( 610 )

Cash payments ( 222 ) ( 527 ) ( 749 )

Exit activity liability at June September 30, 2026 $ 147 39 $ 147 39

2 unchanged paragraphs

In 2024, we offered a voluntary retirement incentive package of severance and other benefit enhancements to eligible employees in the United States and Canada and later expanded the program to include involuntary separations. This program is substantially complete with total restructuring expenses recorded to date of $ 7.8 million and additional restructuring costs are expected to be immaterial. During the six nine months ended June September 30, 2026 cash payments were $ 0.2 million and the exit activity liability at June September 30, 2026 was $ 0.4 million.

Note 5: Sale of Receivables 1 change

1 unchanged paragraph

Pursuant to these agreements, we sold $ 299.9 323.3 million and $ 514.8 838.1 million of receivables during the three and six nine months ended September 30, 2026 , respectively and $ 257.6 334.8 million and $ 442.1 776.9 million for the comparable periods in 2025. Receivables presented at financial institutions and not yet collected as of June September 30, 2026 were approximately $ 14.7 3.0 million and remained in our accounts receivable balance as of that date. All receivables sold were reflected as a reduction of accounts receivable on the consolidated balance sheet at the time of sale. We recorded expense of $ 13.7 15.1 million and $ 23.0 38.1 million related r elated to the sale of receivables which was included in selling, general and administrative expenses in our consolidated statements of operations for the three and six nine months ended June September 30, 2026 and $ 12.3 14.9 million and $ 21.6 36.6 million in comparable periods of 2025, respectively.

2 unchanged paragraphs

Note 6: Inventories 6 changes

1 unchanged paragraph

Finished goods $ 433,875 $ 458,420

Raw materials 204,872 230,541

Finished goods $ 402,292 $ 458,420

Work in process 22,429 22,187 23,190

Raw materials 196,058 230,541

Unreturned customer inventories 22,990 25,602 15,771

Note 7: Acquired Intangible Assets 7 changes

1 unchanged paragraph

June September 30, 2026 December 31, 2025

1 unchanged paragraph

Customer relationships $ 318,388 317,394 $ ( 119,499 123,674 ) $ 198,889 193,720 $ 323,312 $ ( 111,256 ) $ 212,056

Trademarks and trade names 89,260 88,794 ( 5,424 5,495 ) 83,836 83,299 91,666 ( 5,284 ) 86,382

Patents and developed technology 14,123 ( 5,264 5,487 ) 8,859 8,636 14,123 ( 4,816 ) 9,307

Other 4,283 4,279 ( 4,283 4,279 ) 4,280 ( 4,280 )

Total acquired intangible assets $ 426,054 424,590 $ ( 134,470 138,935 ) $ 291,584 285,655 $ 433,381 $ ( 125,636 ) $ 307,745 (a) Trademarks and trade names include indefinite lived intangible assets which are not amortized of $ 81.8 81.4 million and $ 84.2 million as of June September 30, 2026 and December 31, 2025, respectively .

Total amortization expense for acquired intangible assets was $ 4.7 4.6 million and $ 9.3 13.9 million for the three and six nine months ended June September 30, 2026 and $ 4.6 4.7 million and $ 9.0 13.7 million for the comparable periods in 2025. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $ 9.2 4.6 million for the remainder of 2026, $ 18.5 18.4 million in 2027, $ 18.5 18.4 million in 2028, $ 17.2 17.1 million in 2029 and $ 146.4 145.7 million in the aggregate for the years 2030 through 2041.

Note 9: Credit Facilities and Long-Term Debt 16 changes

1 unchanged paragraph

June September 30, December 31,

1 unchanged paragraph

Multi-currency revolver $ 280,001 187,959 $ 298,426

1 unchanged paragraph

Danish revolver 4,579

Total debt $ 588,827 $ 618,715

Total debt $ 588,827 $ 618,715

Total debt $ 486,960 $ 618,715

Current maturities of debt $ 54,627 71,130 $ 51,988

Long-term debt 534,200 415,830 566,727

Total debt $ 486,960 $ 618,715

(a) Weighted average interest rate, adjusted for the impact of interest rate swap agreements, is 4.5 % and 4.8 % at both June September 30, 2026 and December 31, 2025, respectively. Interest rates primarily consist of Term SOFR for borrowings in U.S. dollars and EURIBOR for borrowings in euros.

(b) Amounts are shown net of unamortized deferred financing costs of $ 1.6 1.4 million at June September 30, 2026 and $ 1.9 million at December 31, 2025, respectively.

2 unchanged paragraphs

June September 30, 2026 December 31, 2025

Current maturities of debt $ 53.6 71.0 $ 45.3

Long-term debt 519.9 401.5 552.8

Total outstanding borrowings $ 573.5 472.5 $ 598.1

3 unchanged paragraphs

The Company has an overdraft facility that provides for borrowings of up to Polish zloty 30 million (approximately $ 8.0 7.8 million) if borrowings are solely in Polish zloty, or up to 85 % of the Polish zloty 30 million limit (approximately $ 6.8 6.6 million) if borrowings are in euros and/or U.S. dollars. The overdraft facility automatically renews every three months until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. There were $ 0.9 million of no borrowings outstanding under the overdraft facility at June September 30, 2026 and $ 3.6 million of borrowings outstanding at December 31, 2025.

1 unchanged paragraph

Note 10: Accumulated Other Comprehensive Income Attributable to SMP 10 changes

1 unchanged paragraph

Six Months Ended June 30, 2026

Nine Months Ended September 30, 2026

12 unchanged paragraphs

Other comprehensive income (loss) before reclassifications ( 3,460 ) (c) 3,754 294

Amounts reclassified from accumulated other comprehensive income (loss) 251 ( 2 ) 249

Net other comprehensive income (loss) ( 3,460 ) 4,005 ( 2 ) 543

Tax amounts ( 276 ) ( 1,041 ) 1 ( 1,316 )

Balance at September 30, 2026 $ 2,461 $ 6,334 $ 1 $ 8,796

(a) Consists of the unrecognized gain relating to the change in fair value of cash flow interest rate hedges of $ 0.1 4.0 million ($ 0.1 3.0 million, net of tax) and $ 1.9 6.0 million ($ 1.4 4.4 million, net of tax) in the three and six nine months ended September 30, 2026, respectively; and cash settlement receipts of $ 0.3 million ($ 0.2 million, net of tax) and $ 0.6 million ($ 0.5 million, net of tax) in the three and nine months ended September 30, 2026, respectively.

(b) Foreign currency translation primarily reflects the depreciation of the Danish kroner.

(c) Foreign currency translation primarily reflects the depreciation of the Polish zloty, Danish kroner and Mexican peso.

1 unchanged paragraph

Note 11: Stock-Based Compensation Plans 9 changes

Our restricted and performance-based share activity was as follows for the six nine months ended June September 30, 2026:

3 unchanged paragraphs

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

Balance at June September 30, 2026

The following table shows stock-based compensation expense, which is primarily recorded in selling, general and administrative expenses in the consolidated statements of operations (in millions) :

Nine Months Ended September 30,

Stock-based compensation expense $ 8.9 $ 5.5

Income tax benefits related to stock-based compensation 2.4 1.5

Stock-based compensation expense, net of tax $ 6.5 $ 4.0

The unrecognized compensation expense related to our restricted and performance-based shares was $ 17.4 million at September 30, 2026, and is expected to be recognized as shares vest over a weighted average period of 2.6 years and less than one year for employees and directors, respectively.

Note 12: Employee Benefits 2 changes

We maintain a defined contribution Supplemental Executive Retirement ( SERP ) Plan that allows key employees to elect to defer a portion of their compensation. In addition, we may at our discretion make contributions to the SERP plan on behalf of the employees. In the six nine months ended June September 30, 2026, we made company contributions to the SERP plan of $ 0.5 million related to calendar year 2025.

We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During the six nine months ended June September 30, 2026, we contributed 74,400 shares to the trust from our treasury and released 74,400 shares from the trust leaving 200 shares remaining in the trust as of June September 30, 2026.

Note 13: Derivative Instruments 10 changes

The notional amounts of financial instruments used to hedge the above risks are as follows (in millions):

June 30, 2026 December 31, 2025

Interest rate swaps $ 207 $ 213

Non-derivative debt instruments $ 187 $ 192

We do not offset d erivative assets against liabilities in master netting agreements and there were no receivables or payables recognized on receipt or payment of cash collateral at June 30, 2026 and December 31, 2025.

The fair value of interest rate swap agreements designated as cash flow hedges of interest rate risk are as follows (in thousands):

June 30, 2026 December 31, 2025

Derivative assets $ 4,537 $ 2,587

Gains/losses are deferred and recorded in accumulated other comprehensive income, net of income taxes, in our consolidated balance sheet and reclassified to interest expense in the consolidated statements of operations when the hedged interest payments on the underlying borrowings are recognized in interest expense. We expect to reclassify a net gain of $ 1.5 million from accumulated other comprehensive income in the next twelve months . We perform quarterly

As part of our risk management strategy, we occasionally use derivative instruments, including interest rate swaps, forward foreign exchange contracts and non-derivative instruments such as foreign currency denominated debt, to reduce our market risk for changes in interest rates and to manage foreign exchange rate risk. There have been no material changes during the six nine months ended June September 30, 2026 to our risk management policies, strategies, types of instruments and valuation techniques used in measuring fair value from the information provided in Note 17 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025.

1 unchanged paragraph

Note 14: Fair Value Measurements 7 changes

5 unchanged paragraphs

Fair Value June 30, 2026 December 31, 2025

Hierarchy Level Fair Value Carrying

Amount Fair Value Carrying

Deferred compensation 1 29,345 29,345 27,511 27,511

Cash flow hedge interest rate swaps 2 4,537 4,537 2,587 2,587

The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The fair value of our cash flow interest rate swap agreements are obtained from independent third parties, are based upon market quotes, and represent the net amount required to terminate the interest rate swap, taking into consideration market rates and counterparty credit risk.

The carrying value of our short-term borrowings and long-term debt of $ 588.8 million and $ 618.7 million at June 30, 2026 and December 31, 2025, respectively, approximates fair value as the variable interest rates in the facilities reflect current market rates, which are considered level 2 inputs.

1 unchanged paragraph

Note 15: Earnings Per Share 24 changes

1 unchanged paragraph

June 30, Six Months Ended

September 30, Nine Months Ended

1 unchanged paragraph

Continuing operations $ 31,761 $ 26,300 $ 50,082 $ 40,005

Discontinued operations ( 1,393 ) ( 1,058 ) ( 2,578 ) ( 2,197 )

Net earnings attributable to SMP per common share $ 30,368 $ 25,242 $ 47,504 $ 37,808

Continuing operations $ 32,620 $ 29,837 $ 82,702 $ 69,842

Discontinued operations ( 18,472 ) ( 34,172 ) ( 21,050 ) ( 36,369 )

Net earnings (loss) attributable to SMP per common share $ 14,148 $ ( 4,335 ) $ 61,652 $ 33,473

1 unchanged paragraph

Continuing operations $ 1.42 $ 1.20 $ 2.25 $ 1.82

Discontinued operations $ ( 0.06 ) $ ( 0.05 ) $ ( 0.11 ) $ ( 0.10 )

Continuing operations $ 1.46 $ 1.36 $ 3.71 $ 3.18

Discontinued operations $ ( 0.83 ) $ ( 1.56 ) $ ( 0.94 ) $ ( 1.66 )

1 unchanged paragraph

Continuing operations $ 1.39 $ 1.17 $ 2.20 $ 1.79

Discontinued operations $ ( 0.06 ) $ ( 0.04 ) $ ( 0.12 ) $ ( 0.10 )

Weighted average common shares outstanding, basic 22,291,768 21,984,492 22,229,731 21,935,921

Weighted average common shares outstanding, diluted 22,864,089 22,423,208 22,806,413 22,359,693

Continuing operations $ 1.42 $ 1.32 $ 3.62 $ 3.11

Discontinued operations $ ( 0.80 ) $ ( 1.51 ) $ ( 0.92 ) $ ( 1.62 )

Weighted average common shares outstanding, basic 22,340,489 21,991,194 22,267,056 21,954,548

Dilutive effect of restricted stock and performance-based stock 572,321 438,716 576,682 423,772 625,884 580,110 600,959 484,535

Weighted average common shares outstanding, diluted 22,966,373 22,571,304 22,868,015 22,439,083

1 unchanged paragraph

June 30, Six Months Ended

September 30, Nine Months Ended

Restricted and performance-based shares 415 327 378 336 360 215 364 287

Note 16: Industry Segments 1 change

1 unchanged paragraph

The accounting policies of each segment are the same as those described in Note 1, "Summary of Significant Accounting Policies" in our Form 10-K for the year-ended December 31, 2025.

1 unchanged paragraph

Notes to the financial statements 4 changes

the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001, and the amounts paid for settlements, awards of asbestos-related damages, and defense of such claims. At June September 30, 2026, approximately 1,055 1,050 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June September 30, 2026, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $ 113.6 117.8 million. We do not have insurance coverage for the indemnity and defense costs associated with the claims we face.

1 unchanged paragraph

In accordance with our policy to perform an annual actuarial evaluation in the third quarter of each year, an actuarial study was performed as of August 31, 2025. 2026. The results of the August 31, 2025 2026 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs, ranging from $ 127.5 137.9 million to $ 275.9 295.1 million for the period through 2065. The change from the prior year study, which was as of August 31, 2024, 2025, was a $ 27.9 10.4 million increase for the low end of the range and a $ 65.1 19.2 million increase for the high end of the range. The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future.

Based upon the results of the August 31, 2025 2026 actuarial study, in September 2025 2026 we increased our asbestos liability to $ 127.5 137.9 million, the low end of the range, and recorded an incremental pre-tax provision of $ 44.4 23.3 million in loss from discontinued operations in the consolidated statement of operations. Future legal costs, which are expensed as incurred and reported in loss from discontinued operations in the accompanying consolidated statements of operations, are estimated, according to the August 31, 2025 2026 study, to range from $ 48.5 48.3 million to $ 115.3 113.6 million for the period through 2065. Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $ 8.4 12.2 million and $ 10.8 million for each of the six nine months ended June September 30, 2026 and 2025, respectively.

1 unchanged paragraph

We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental. Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations. We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable. Significant

1 unchanged paragraph

MD&A 198 changes

7 unchanged paragraphs

The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto. This discussion summarizes the significant factors affecting our results of operations and the financial condition of our business during the three months ended June September 30, 2026 and 2025.

1 unchanged paragraph

Net sales $ 501,599 $ 493,853

Gross profit 164,619 150,889

Gross profit % 32.8 % 30.6 %

Operating income 50,844 42,836

Operating income % 10.1 % 8.7 %

Provision for income taxes 12,040 9,821

Net earnings 30,644 25,537

Net sales $ 507,791 $ 498,836

Gross profit 165,585 161,794

Gross profit % 32.6 % 32.4 %

Operating income 50,149 47,636

Operating income % 9.9 % 9.5 %

Earnings from continuing operations before income taxes 44,077 36,416 44,840 41,976

Provision for income taxes 11,996 11,977

Earnings from continuing operations 32,037 26,595 32,844 29,999

Loss from discontinued operations, net of income taxes (1,393) (1,058) (18,472) (34,172)

Net earnings 14,372 (4,173)

Net earnings attributable to noncontrolling interest 276 295 224 162

Net earnings attributable to SMP 30,368 25,242 14,148 (4,335)

1 unchanged paragraph

Continuing operations $ 1.39 $ 1.17

Discontinued operations (0.06) (0.04)

higher net sales in our Temperature Control operating segment as certain customers expanded their range of products and the benefits of strong growth in 2025 continuing into 2026, partly offset by the recognition of an obligation for our estimate of IEEPA tariff refunds received from the United States Treasury in 2026 that may be passed back to customers in future periods, improved net sales in our Engineered Solutions operating segment as demand from existing customers recovers from the general softness in end markets experienced in 2025, increased net sales in our Nissens Automotive operating segment with the benefit of foreign exchange conversion and higher demand from existing customers, and lower net sales in our Vehicle Control operating segment as relatively flat net sales performance was negatively impacted by the continued decline in sales of the wire sets products category and by the recording of an obligation for our estimate of IEEPA tariff refunds received from the United States Treasury in 2026 that may be passed back to customers in future periods.

Continuing operations $ 1.42 $ 1.32

Discontinued operations (0.80) (1.51)

Net earnings per common share $ 1.33 0.62 $ 1.13 (0.19)

Consolidated net sales for the three months ended June September 30, 2026 were $501.6 $507.8 million, an increase of $7.7 $9.0 million, or 1.6%, 1.8%, compared to net sales of $493.9 $498.8 million in the same period in 2025.

The increase in net sales in the three months ended June September 30, 2026 when compared to the same period in 2025 reflects the impact of multiple factors including:

higher net sales in our Vehicle Control operating segment as sales volume increased with existing customers, increased net sales in our Nissens Automotive operating segment with higher demand from existing customers benefiting from high summer temperatures in Europe, as well as favorable foreign exchange conversion and the expansion of product offerings, improved net sales in our Engineered Solutions operating segment as demand from existing customers recovers from the general softness in end markets experienced in 2025, partly offset by lower net sales in our Temperature Control operating segment.

Overall, full year results at our Temperature Control and Nissens Automotive operating segments will be dependent upon summer weather conditions and partly depend on customer inventory levels.

Gross margins, as a percentage of net sales, increased to 32.8% 32.6% in the second third quarter of 2026 compared to 30.6% 32.4% in the second third quarter of 2025. Overall, the gross margin increase as a percentage of sales in the second third quarter of 2026 primarily reflects the positive impact of higher sales volumes and a temporary margin improvement due to the offsetting reduction in net sales and cost of sales for IEEPA tariff refunds received from the United States Treasury and the recording of an obligation for our estimate of tariff refunds that may be passed back to customers, respectively. savings initiatives, partly offset by inflationary pressures.

Operating margin as a percentage of net sales for the three months ended June September 30, 2026 increased to 10.1% 9.9% as compared to 8.7% 9.5% for the same period in 2025. Included in our operating margin were selling, general and administrative expenses of $113.5 $115.4 million, or 22.6% 22.7% of net sales for the three months ended June September 30, 2026 compared to $107.5 $113.4 million, or 21.8% 22.7% of net sales, for the same period in 2025. The $6.0 $2.0 million increase in selling, general and administrative expenses in the second third quarter of 2026 as compared to the second third quarter of 2025 is principally due to higher employee-related costs, including the impact of the change in timing of our annual stock-based compensation grants partly offset by lower other general and higher distribution costs due to higher sales, in addition to higher depreciation expense primarily due to our recent investment in the Shawnee, Kansas distribution facility. administrative expenses.

4 unchanged paragraphs

With each year, we seek to enhance our commitment to sustainability initiatives, improve our employee engagement, and find ways to give back to our communities. Information on our sustainability initiatives can be found in our most current sustainability report and on our corporate website at smpcorp.com under Our Company and Sustainability and at smpcares.smpcorp.com. Overview . Information in our sustainability report and on our corporate websites regarding our sustainability initiatives are referenced for general information only and are not incorporated by reference in this Report.

1 unchanged paragraph

Comparison of the Three Months Ended June September 30, 2026 to the Three Months Ended June September 30, 2025

Sales . Consolidated net sales for the three months ended June September 30, 2026 were $501.6 $507.8 million , an increase of $7.7 $9.0 million, or 1.6%, 1.8%, compared to $493.9 $498.8 million in the same period of 2025 , with the majority of our net sales to customers located in the United States.

1 unchanged paragraph

Electrical and Safety 47,573 56,828

Total Vehicle Control 182,912 201,699

AC System Components 119,294 104,777

Other Thermal Components 25,454 26,588

Total Temperature Control 144,748 131,365

Air Conditioning 39,329 40,441

Engine Cooling 36,271 35,082

Engine Efficiency 19,075 15,014

Total Nissens Automotive 94,675 90,537

Engine Management (Ignition, Emissions and Fuel Delivery) $ 121,488 125,944 $ 128,233 121,420

Electrical and Safety 66,196 63,192

Wire Sets and Other 13,851 16,638 13,849 13,070

Total Vehicle Control 205,989 197,682

AC System Components 106,004 114,033

Other Thermal Components 31,490 30,624

Total Temperature Control 137,494 144,657

Air Conditioning 45,933 36,409

Engine Cooling 33,165 32,168

Engine Efficiency 11,485 15,960

Total Nissens Automotive 90,583 84,537

1 unchanged paragraph

Light Vehicle 24,675 21,780

Commercial Vehicle 21,537 21,836

Construction/Agriculture 11,016 9,584

All Other 22,814 17,052

Total Engineered Solutions 80,042 70,252

Intersegment sales (778)

Total $ 501,599 $ 493,853

Vehicle Control s net sales for the three months ended June 30, 2026 decreased $18.8 million, or 9.3%, to $182.9 million compared to $201.7 million in the same period of 2025. The decrease in Vehicle Control s net sales was primarily driven by the continued decline in sales of the wire sets products category and by the recording of an obligation for our estimate of IEEPA tariff refunds received from the United States Treasury in 2026 that may be passed back to customers in future periods.

Temperature Control s net sales for the three months ended June 30, 2026 increased $13.4 million, or 10.2%, to $144.7 million compared to $131.4 million in the same period of 2025. Temperature Control s net sales for the second quarter of 2026 reflect certain customers expanding their range of products and the benefits of strong growth in 2025 continuing into 2026, partly offset by the recognition of an obligation for our estimate of IEEPA tariff refunds received from the United States Treasury in 2026 that may be passed back to customers in future periods. Overall full year results will be dependent upon summer weather conditions and customer inventory levels.

Light Vehicle 24,674 21,977

Commercial Vehicle 21,800 21,111

Construction/Agriculture 10,200 8,863

All Other 19,053 20,247

Total Engineered Solutions 75,727 72,198

Intersegment sales (2,002) (238)

Total $ 507,791 $ 498,836

Vehicle Control s net sales for the three months ended September 30, 2026 increased $8.3 million, or 4.2%, to $206.0 million compared to $197.7 million in the same period of 2025. The increase in Vehicle Control s net sales was primarily driven by higher sales volume from existing customers.

Temperature Control s net sales for the three months ended September 30, 2026 decreased $7.2 million, or 5.0%, to $137.5 million compared to $144.7 million in the same period of 2025. Temperature Control s net sales for the third quarter of 2026 reflect the timing of seasonal sales as compared to the third quarter of 2025. Overall full year results will partly depend on customer inventory levels and ordering patterns as the summer peak season ends.

Nissens Automotive's net sales for the three months ended June September 30, 2026 increased $4.1 $6.0 million, or 4.6%, 7.2%, to $94.7 $90.6 million compared to $90.5 $84.5 million in the same period of 2025. The increase in Nissens Automotive s net sales primarily resulted from the benefit of foreign exchange conversion and higher demand from existing customers benefiting from high summer temperatures in Europe, as well as favorable foreign exchange conversion and the expansion of product offerings. Overall full year results will be dependent upon summer weather conditions and partly depend on customer inventory levels and ordering patterns as the summer peak season ends.

Engineered Solutions net sales for the three months ended June September 30, 2026 increased $9.8 $3.5 million, or 13.9%, 4.9%, to $80.0 $75.7 million compared to $70.3 $72.2 million in the same period of 2025. The increase in Engineered Solutions net sales reflects the continuing recovery from the general softness in end markets experienced in 2025.

Gross Margins. Gross margins, as a percentage of consolidated net sales, increased to 32.8% 32.6% in the second third quarter of 2026, compared to 30.6% 32.4% in the second third quarter of 2025. The following table summarizes gross margins by segment (in thousands):

September 30, Vehicle

2 unchanged paragraphs

Net sales $ 182,912 $ 144,748 $ 94,675 $ 80,042 $ (778) $ 501,599

Gross margins 60,396 50,048 40,213 13,962 164,619

Gross margin percentage 33.0 % 34.6 % 42.5 % 17.4 % 32.8 %

1 unchanged paragraph

1 unchanged paragraph

4 unchanged paragraphs

1 unchanged paragraph

8 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

7 unchanged paragraphs

and 118 more changes in the filing

Market risk 4 changes

4 unchanged paragraphs

As of June September 30, 2026 and December 31, 2025, the remeasurement impact of non-functional currency denominated monetary assets and liabilities, excluding monetary liabilities designated in a net investment hedge, are immaterial, therefore, the potential immediate loss to us that would result from a hypothetical 10% change in foreign currency exchange rates would not be expected to have a material impact on our earnings or cash flows. This sensitivity analysis assumes an unfavorable 10% fluctuation in the exchange rates affecting the foreign currencies in which monetary assets and liabilities are denominated and does not take into account the incremental effect of such a change on our foreign currency denominated revenues.

We manage our exposure to interest rate risk through the proportion of fixed rate debt and variable rate debt in our debt portfolio. To reduce our market risk to changes in interest rates on our variable rate borrowings, and to manage a portion of our exposure to changes in interest rates, we occasionally enter into interest rate swap agreements to synthetically convert all or a portion of our variable rate debt to a fixed rate. As of June September 30, 2026, we had interest rate swap agreements with a total notional amount of $207 $205 million.

As of June September 30, 2026, we had $573.5 $472.5 million of outstanding borrowings under our 2024 Credit Agreement, net of deferred financing costs, of which $368.2 $269.0 million bears interest at variable rates of interest and $207 $204.9 million bears interest at fixed rates, after consideration of the interest rate swap agreements, less unamortized deferred financing costs of $1.6 $1.4 million. Additionally, we invest our excess cash in highly liquid short-term investments. Based upon our current level of borrowings under our 2024 Credit Agreement and our excess cash, the effect of a hypothetical, instantaneous and unfavorable change of 100 basis points in the interest rate may have an approximate $2.9 $1.6 million annualized negative impact on our earnings before income taxes or cash flows.

In addition, we are party to several supply chain financing arrangements, in which we may sell certain of our customers trade accounts receivable to such customers financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. During the six three and nine months ended June September 30, 2026 we sold $514.8 $323.3 million and $838.1 million, respectively. Depending upon the level of sales of receivables, the effect of a hypothetical, instantaneous and unfavorable unfavorabl e change of 100 basis points in the interest rate may have an approximate $5.1 approximat e $3.2 million negative and $8.4 million nega tive impact on our earnings before income taxes or cash flows for the six three and nine months ended June September 30, 2026, respectively. The charge related to the sale of receivables was included in selling, general and administrative expenses in our consolidated statements of operations.

1 unchanged paragraph

Controls and procedures 4 changes

3 unchanged paragraphs

Our management is committed to maintaining a strong internal control environment. In response to the material weakness, management, with oversight of the Audit Committee of the Board of Directors, has been engaged in developing developed and is implementing a remediation plan to address the material weakness related to ineffective general information technology controls over certain IT systems that support financial transactions and reporting at our Nissens Automotive operating segment. These remediation efforts are ongoing and we have made the following progress in 2026:

Engaged external resources on a temporary basis while actively recruiting for and hired additional experienced IT personnel

3 unchanged paragraphs

We have designed where necessary, and implemented mitigating controls and procedures to obtain comfort during the period of time general information technology controls over the affected IT systems were ineffective.

1 unchanged paragraph

During the quarter ended June September 30, 2026, other than the ongoing remediation described above, we have not made any changes in the Company s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company s internal control over financial reporting. We review, document and test our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ( COSO ) in the 2013 Internal Control Integrated Framework. We may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business. These efforts may lead to various changes in our internal control over financial reporting.

Exhibits 3 changes

12 unchanged paragraphs

** In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to the Original Filing shall be deemed to be furnished and not filed.

2 unchanged paragraphs

Date: August 4, 2026

Date: October 30, 2026

2 unchanged paragraphs