On this page of StockholderLetter.com we present the latest annual shareholder letter from STANDARD MOTOR PRODUCTS, INC. — ticker symbol SMP. Reading current and past SMP letters to shareholders can bring important insights into the investment thesis.

 •  4/15/2025 Letter Continued (Full PDF)
 •  4/18/2023 SMP Stockholder Letter
 •  4/16/2024 SMP Stockholder Letter
 •  More "Auto Parts" Category Stockholder Letters
 •  SMP Benford's Law Stock Score = 96

SMP Shareholder/Stockholder Letter Transcript:

Solutions That Move the World
ANNUAL REPORT 2024

REGISTRAR AND TRANSFER AGENT
Computershare Trust Company, N.A.
PO Box 43006
Providence, RI 02940-3006
www.computershare.com/investor
A S U B S I D I A R Y O F S TA N D A R D M O T O R P R O D U C T S , I N C .
INDEPENDENT AUDITORS
KPMG LLP
345 Park Avenue
New York, NY 10154
COMMON STOCK
Standard Motor Products, Inc.   s Common
Stock is listed on the New York Stock
Exchange under the symbol    SMP   

MANUFACTURING LOCATIONS
Europe
4 Facilities
Canada
1 Facility
U.S.A
5 Facilities
Mexico
6 Facilities
A S U B S I D I A R Y O F S TA N D A R D M O T O R P R O D U C T S , I N C .

YEAR ENDED DECEMBER 31,
2024
Net Sales

1,463,849
2023

101,693
Operating Income 1
1,358,272
95,243
Earnings From Continuing Operations 1, 2

70,456

64,787
Adjusted EBITDA1, 2

140.1

126.7
PER SHARE:
Earnings From Continuing Operations 1, 2 - Diluted

3.17

2.92
1.16
Dividends
Stock Price at Year End

30.98
1.16

22,237,059
Average Number of Common and Dilutive Shares
39.81
22,161,341
Assets

1,814,126

1,293,047
Stockholders    Equity

630,082

650,873
(Dollars in thousands, except per share amounts)
1
Non-GAAP. See the Reconciliation of GAAP and Non-GAAP Measures on the page facing the inside back cover of this Annual Report
2
Attributable to SMP
ABOUT THE COMPANY
Asia
5 Facilities
With over 100 years in business, we are a leading manufacturer
and distributor of premium replacement parts in the automotive
aftermarket and a custom engineered solutions provider to
vehicle and equipment manufacturers in diverse non-aftermarket
end markets. Our business is organized into four operating
segments: Vehicle Control, Temperature Control, Nissens
Automotive and Engineered Solutions. Our aftermarket products
are primarily used to perform non-discretionary repairs that
extend the service life of vehicles by replacing critical
components that have failed over time and that are necessary for
vehicles to operate as designed. Our Engineered Solutions
operating segment offers a broad array of conventional and
future-oriented technologies in markets for commercial and light
vehicles, construction, agriculture, power sports, marine,
hydraulics and lawn & garden. SMP   s strategy combines growth,
stability and diversification to balance today   s corporate needs
with future opportunities, along with a goal to provide steady,
long-term shareholder returns through consistent dividends,
reinvestment into our company and selective acquisitions that
serve to make our businesses stronger.

CONSOLIDATED NET SALES
$1,500
$1,250
$1,298.8 $1,371.8 $1,358.3
$1,463.8
$1,128.6
$1,000
$750
$500
$250
$0
2020
2021
2022
2023
2024
Full Year (Millions)
TO OUR SHAREHOLDERS
2024 was a landmark year for SMP. We achieved
record sales across all segments, generated
strong earnings growth, and consummated the
biggest acquisition in our 105-year history. This
success is a testament to the hard work,
dedication, and strategic focus of our team,
and it positions us well for the future.
ERIC P. SILLS
Chairman of the Board &
Chief Executive Officer
EBITDA (W/O SPECIAL ITEMS)*
$180.0
$161.8
$139.1
$146.1
$126.7
$120.0
$140.1
$60.0
$0.0
2020
2021
2022
2023
2024
Full Year (Millions)
DILUTED EPS (W/O SPECIAL ITEMS)*
$5.00
$4.00
$4.45
$3.61
$3.59
$2.92
$3.00
$3.17
$2.00
$1.00
$0.00
2020
2021
2022
2023
2024
Full Year
Nissens Automotive Acquisition
A key highlight of the year was the acquisition of Nissens, completed in
November. This transaction was not only the largest in our company   s
history but also a transformative one, expanding and diversifying our reach
into new end markets.
Nissens is a market leader in essential thermal and engine efficiency
products in Europe, and an outstanding strategic fit for our company. A
growing and profitable organization with a strong leadership team, their
business complements ours perfectly, and their strategy aligns with our own.
This acquisition offers us tremendous benefits including geographic
expansion, a more diverse customer base, cross-selling across our
combined portfolio, and meaningful cost savings potential. We are
excited about what the future holds as we work together to unlock these
significant opportunities.
* See the Reconciliation of GAAP and Non-GAAP Measures on
the page facing the inside back cover of this Annual Report
Business Performance
QUARTERLY DIVIDENDS
$0.35
$0.30
$0.25
$0.25
$0.25
2020**
2021
$0.27
$0.29
$0.29
2023
2024
$0.20
$0.15
$0.10
$0.05
2022
Dividend paid in two quarters

Overall, 2024 was a solid year as each of our individual operating segments
delivered record results. The North American aftermarket continued to
demonstrate its resilience in a volatile global environment, and our largely
non-discretionary products remained in high demand.
Our Vehicle Control segment showed consistent performance throughout the
year, with each quarter surpassing the previous year   s sales. Our Temperature
Control business, which can be impacted by the weather, showed outsized
growth as record heat across the United States made for an extended selling
season.
Differing from the aftermarket, our Engineered Solutions business is
dependent on new vehicle and equipment production schedules and thus
can be more prone to the ebbs and flows of consumer purchasing behaviors.
After a strong first half, we experienced softening in certain end markets.

And lastly, Nissens performed to our expectations in the short time that it was part of SMP, considering that
these are the slowest months of the year for its seasonal business.
Looking Ahead
We recognize that we are heading into times of economic uncertainty and volatility.
History has shown that the aftermarket sector, which is greater than 80% of our business, tends to outperform
in times like these, and we feel good about ongoing customer demand. Furthermore, with Nissens we now have
expanded global diversification.
While our Engineered Solutions business faces certain demand headwinds, our customer relationships continue
to strengthen as we become known as a high-quality supplier with a broad portfolio, and they are rewarding us
with new contracts. We remain confident in our ability to drive ongoing success over the long term.
Threats of tariffs abound, and while it remains unclear where they will be applied and for how long, we are
pleased with the geographic diversity of our supply chain. With manufacturing operations balanced among North
America, Europe and Asia, and with sourcing across the globe, we believe we are well-positioned to navigate
these challenges.
2025 will be a year of major initiatives as we continue the transformation of our business into a global player.
The integration of Nissens is already yielding positive results, with teams engaged across a variety of sales
growth and cost savings programs. And we have many other initiatives underway aimed at expanding
profitability and driving long-term sustainable growth.
Ultimately, it is the strength of our team that gives me the greatest confidence in our continued success, as we
execute on these opportunities and deliver exceptional value to our shareholders.
Thank you for your continued trust and support.
Sincerely,
Eric Sills
Chairman of the Board & Chief Executive Officer
Favorable Market Conditions
Registered Light Vehicles (millions)
Average Vehicle Age (years)
14
300
281
278
240
244
248
284
283
279
250
286
252
256
258
12
11.8 11.6
11.9 11.9
2019
2020
12.1 12.1
12.2 12.3
12.5 12.4
12.6 12.5
2021
2022
2023
2024
10
180
2019
2020
2021
2022
2023
2024
US
Source: Auto Care Association / IHS Market / Eurostat
8
Europe
Source: Auto Care Association / IHS Market / Rolland Berger / Autoalan Tiedotuskeskus



 4/15/2025 Letter Continued (Full PDF)