Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended September 30, 2024

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13337

STONERIDGE, INC

(Exact name of registrant as specified in its charter)


Ohio						34-1598949
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

39675 MacKenzie Drive, Suite 400, Novi, Michigan						48377
(Address of principal executive offices)						(Zip Code)


			(248) 489-9300
			Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, without par value

SRI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

xYes oNo

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

xYes oNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer o	Accelerated filer x	Non-accelerated filer o
Smaller reporting company o	Emerging growth company o

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). oYes xNo

The number of Common Shares, without par value, outstanding as of October 25, 2024 was 27,688,071.

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STONERIDGE, INC. AND SUBSIDIARIES

INDEX

Page

PART I–FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023

Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended Sept ember 30, 2024 and 2023

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023

Notes to Condensed Consolidated Financial Statements (Unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II–OTHER INFORMATION

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

Forward-Looking Statements

Portions of this report on Form 10-Q contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:

•the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;

•fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;

•global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries;

•our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;

•the reduced purchases, loss or bankruptcy of a major customer or supplier;

•the costs and timing of business realignment, facility closures or similar actions;

•a significant change in automotive, commercial, off-highway or agricultural vehicle production;

•competitive market conditions and resulting effects on sales and pricing;

•foreign currency fluctuations and our ability to manage those impacts;

•customer acceptance of new products;

•our ability to successfully launch/produce products for awarded business;

•adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, or our customers’ products;

•our ability to protect our intellectual property and successfully defend against assertions made against us;

•liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;

•labor disruptions at our facilities, or at any of our significant customers or suppliers;

•business disruptions due to natural disasters or other disasters outside of our control;

•the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;

•capital availability or costs, including changes in interest rates;

•the failure to achieve the successful integration of any acquired company or business;

•risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; and

•the items described in Part I, Item IA (“Risk Factors”) in the Company’s 2023 Form 10-K.

The forward-looking statements contained herein represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

STONERIDGE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands)	September 30, 2024		December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	54,138	$	40,841
Accounts receivable, less reserves of $845 and $1,058, respectively	158,529		166,545
Inventories, net	176,445		187,758
Prepaid expenses and other current assets	25,301		34,246
Total current assets	414,413		429,390
Long-term assets:
Property, plant and equipment, net	103,450		110,126
Intangible assets, net	44,206		47,314
Goodwill	35,593		35,295
Operating lease right-of-use asset	10,758		10,795
Investments and other long-term assets, net	54,103		46,980
Total long-term assets	248,110		250,510
Total assets	$	662,523	$	679,900

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:

Current portion of debt	$	—	$	2,113
Accounts payable	98,130		111,925
Accrued expenses and other current liabilities	71,761		64,203
Total current liabilities	169,891		178,241
Long-term liabilities:
Revolving credit facility	196,322		189,346
Deferred income taxes	6,344		7,224
Operating lease long-term liability	7,219		7,684
Other long-term liabilities	11,397		9,688
Total long-term liabilities	221,282		213,942
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued	—		—
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,689 and 27,549 shares outstanding at September 30, 2024 and December 31, 2023, respectively, with no stated value	—		—
Additional paid-in capital	224,944		227,340
Common Shares held in treasury, 1,277 and 1,417 shares at September 30, 2024 and December 31, 2023, respectively, at cost	(38,641)		(43,344)
Retained earnings	186,099		196,509
Accumulated other comprehensive loss	(101,052)		(92,788)
Total shareholders' equity	271,350		287,717
Total liabilities and shareholders' equity	$	662,523	$	679,900

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STONERIDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2024		2023		2024		2023

Net sales	$	213,831	$	238,164	$	690,047	$	746,303
Costs and expenses:
Cost of goods sold	169,340		185,689		543,459		590,538
Selling, general and administrative	26,533		28,111		88,832		91,465
Design and development	17,643		17,852		53,703		57,486
Operating income	315		6,512		4,053		6,814
Interest expense, net	3,604		3,313		11,039		9,179
Equity in loss of investee	752		141		1,081		641
Other (income) expense, net	(384)		(1,383)		(644)		2,152
(Loss) income before income taxes	(3,657)		4,441		(7,423)		(5,158)
Provision for income taxes	3,413		2,270		2,987		3,049
Net (loss) income	$	(7,070)	$	2,171	$	(10,410)	$	(8,207)

(Loss) earnings per share:
Basic	$	(0.26)	$	0.08	$	(0.38)	$	(0.30)
Diluted	$	(0.26)	$	0.08	$	(0.38)	$	(0.30)

Weighted-average shares outstanding:
Basic	27,618		27,484		27,586		27,428
Diluted	27,618		27,734		27,586		27,428

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STONERIDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2024		2023		2024		2023

Net (loss) income	$	(7,070)	$	2,171	$	(10,410)	$	(8,207)

Other comprehensive income (loss), net of tax:
Foreign currency translation	8,142		(6,969)		(5,191)		95
Unrealized loss on derivatives (1)	(943)		(126)		(3,073)		(70)
Other comprehensive income (loss), net of tax	7,199		(7,095)		(8,264)		25

Comprehensive income (loss)	$	129	$	(4,924)	$	(18,674)	$	(8,182)


(1)			Net of tax benefit of $251 and $34 for the three months ended September 30, 2024 and 2023, respectively. Net of tax benefit of $817 and $19 for the nine months ended September 30, 2024 and 2023, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STONERIDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


Nine months ended September 30, (in thousands)	2024		2023

OPERATING ACTIVITIES:
Net loss	$	(10,410)	$	(8,207)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation	19,695		19,800
Amortization, including accretion and write-off of deferred financing costs	6,812		6,077
Deferred income taxes	(6,339)		(2,732)
Loss of equity method investee	1,081		641
Loss (gain) on sale of fixed assets	257		(861)
Share-based compensation expense	3,092		2,272
Excess tax deficiency related to share-based compensation expense	263		74




Changes in operating assets and liabilities:
Accounts receivable, net	6,042		(21,335)
Inventories, net	9,694		(33,651)
Prepaid expenses and other assets	4,949		7,473
Accounts payable	(13,127)		23,322
Accrued expenses and other liabilities	6,508		1,459
Net cash provided by (used for) operating activities	28,517		(5,668)

INVESTING ACTIVITIES:
Capital expenditures, including intangibles	(19,049)		(28,584)
Proceeds from sale of fixed assets	312		1,841



Investment in venture capital fund, net	(260)		(200)
Net cash used for investing activities	(18,997)		(26,943)

FINANCING ACTIVITIES:
Revolving credit facility borrowings	98,000		81,365
Revolving credit facility payments	(91,000)		(64,568)
Proceeds from issuance of debt	24,277		27,579
Repayments of debt	(26,364)		(27,145)

Repurchase of Common Shares to satisfy employee tax withholding	(780)		(1,697)
Net cash provided by financing activities	4,133		15,534

Effect of exchange rate changes on cash and cash equivalents	(356)		(963)
Net change in cash and cash equivalents	13,297		(18,040)
Cash and cash equivalents at beginning of period	40,841		54,798

Cash and cash equivalents at end of period	$	54,138	$	36,758

Supplemental disclosure of cash flow information:
Cash paid for interest, net	$	11,892	$	9,248
Cash paid for income taxes, net	$	8,429	$	8,453

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STONERIDGE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


(in thousands)	Number of Common Shares outstanding	Number of treasury shares	Additional paid-in capital		Common Shares held in treasury		Retained earnings		Accumulated other comprehensive loss		Total shareholders' equity


























BALANCE DECEMBER 31, 2022	27,341	1,625	$	232,758	$	(50,366)	$	201,692	$	(103,142)	$	280,942
Net loss	—	—	—		—		(7,386)		—		(7,386)
Unrealized loss on derivatives, net	—	—	—		—		—		(232)		(232)
Currency translation adjustments	—	—	—		—		—		4,072		4,072
Issuance of Common Shares	234	(234)	—		—		—		—		—
Repurchased Common Shares for treasury, net	(62)	62	—		5,649		—		—		5,649
Share-based compensation, net	—	—	(6,802)		—		—		—		(6,802)
BALANCE MARCH 31, 2023	27,513	1,453	$	225,956	$	(44,717)	$	194,306	$	(99,302)	$	276,243

Net loss	—	—	—		—		(2,992)		—		(2,992)
Unrealized gain on derivatives, net	—	—	—		—		—		288		288
Currency translation adjustments	—	—	—		—		—		2,992		2,992
Issuance of Common Shares	15	(15)	—		—		—		—		—
Repurchased Common Shares for treasury, net	(6)	6	—		350		—		—		350
Share-based compensation, net	—	—	757		—		—		—		757
BALANCE JUNE 30, 2023	27,522	1,444	$	226,713	$	(44,367)	$	191,314	$	(96,022)	$	277,638

Net income	—	—	—		—		2,171		—		2,171
Unrealized loss on derivatives, net	—	—	—		—		—		(126)		(126)
Currency translation adjustments	—	—	—		—		—		(6,969)		(6,969)
Issuance of Common Shares	45	(45)	—		—		—		—		—
Repurchased Common Shares for treasury, net	(19)	19	—		959		—		—		959
Share-based compensation, net	—	—	(331)		—		—		—		(331)
BALANCE SEPTEMBER 30, 2023	27,548	1,418	$	226,382	$	(43,408)	$	193,485	$	(103,117)	$	273,342

BALANCE DECEMBER 31, 2023	27,549	1,417	$	227,340	$	(43,344)	$	196,509	$	(92,788)	$	287,717
Net loss	—	—	—		—		(6,126)		—		(6,126)
Unrealized gain on derivatives, net	—	—	—		—		—		70		70
Currency translation adjustments	—	—	—		—		—		(4,879)		(4,879)
Issuance of Common Shares	154	(154)	—		—		—		—		—
Repurchased Common Shares for treasury, net	(36)	36	—		3,958		—		—		3,958
Share-based compensation, net	—	—	(3,484)		—		—		—		(3,484)
BALANCE MARCH 31, 2024	27,667	1,299	$	223,856	$	(39,386)	$	190,383	$	(97,597)	$	277,256

Net income	—	—	—		—		2,786		—		2,786
Unrealized loss on derivatives, net	—	—	—		—		—		(2,200)		(2,200)
Currency translation adjustments	—	—	—		—		—		(8,454)		(8,454)
Issuance of Common Shares	16	(16)	—		—		—		—		—
Repurchased Common Shares for treasury, net	(4)	4	—		320		—		—		320
Share-based compensation, net	—	—	743		—		—		—		743
BALANCE JUNE 30, 2024	27,679	1,287	$	224,599	$	(39,066)	$	193,169	$	(108,251)	$	270,451

Net loss	—	—	—		—		(7,070)		—		(7,070)
Unrealized loss on derivatives, net	—	—	—		—		—		(943)		(943)
Currency translation adjustments	—	—	—		—		—		8,142		8,142
Issuance of Common Shares	18	(18)	—		—		—		—		—
Repurchased Common Shares for treasury, net	(8)	8	—		425		—		—		425
Share-based compensation, net	—	—	345		—		—		—		345
BALANCE SEPTEMBER 30, 2024	27,689	1,277	$	224,944	$	(38,641)	$	186,099	$	(101,052)	$	271,350

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

(1) Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2023 Form 10-K.

Reclassifications

Certain prior period amounts have been reclassified to conform to their 2024 presentation in the condensed consolidated financial statements.

(2) Recently Issued Accounting Standards

Accounting Standards Not Yet Adopted

In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures", which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures," which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, companies are required to disclose additional information about income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be adopted on a prospective basis; however, retrospective application is permitted. We are currently evaluating the impact on our annual consolidated financial statement disclosures.

(3) Revenue

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The expected costs associated with our base warranties continue to be recognized as expense when the products are sold. Customer returns only occur if products do not meet the specifications of the contract and are not connected to any repurchase obligations of the Company.

The Company does not have any financing components or significant payment terms as payment occurs shortly after the point of sale. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of operations. Shipping and handling costs associated with outbound freight after control over a product is transferred to the customer are accounted for as a fulfillment cost and are included in cost of sales.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

Revenue by Reportable Segment

Control Devices. Our Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle. This segment includes product lines such as actuators, sensors, switches and connectors. We sell these products principally to the automotive market in the North American and Asia Pacific regions. To a lesser extent, we also sell these products to the commercial vehicle and agricultural markets in the North American and Asia Pacific regions. Our customers included in these markets primarily consist of original equipment manufacturers (“OEM”) and companies supplying components directly to the OEMs (“Tier 1 supplier”).

Electronics. Our Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products and electronic control units. These products are sold principally to the commercial vehicle market primarily through our OEM and aftermarket channels in the European, North American and Asia Pacific regions. Our vision and safety systems are sold principally to the commercial vehicle and off-highway vehicle markets in the European and North American regions.

Stoneridge Brazil. Our Stoneridge Brazil segment primarily serves the South American region and specializes in the design, manufacture and sale of vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices, driver information systems and telematics solutions. Stoneridge Brazil sells its products through the aftermarket distribution channel, to factory authorized dealer installers, also referred to as original equipment services and directly to OEMs. In addition, monitoring services and tracking devices are sold directly to corporate customers and individual consumers.

The following tables disaggregate our revenue by reportable segment and geographical location(1) for the three months ended September 30, 2024 and 2023:


	Control Devices				Electronics				Stoneridge Brazil				Consolidated
Three months ended September 30,	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales:
North America	$	60,661	$	75,565	$	48,734	$	50,934	$	—	$	—	$	109,395	$	126,499
South America	—		—		—		—		13,219		14,168		13,219		14,168
Europe	—		—		77,751		82,737		—		—		77,751		82,737
Asia Pacific	12,468		13,779		998		981		—		—		13,466		14,760
Total net sales	$	73,129	$	89,344	$	127,483	$	134,652	$	13,219	$	14,168	$	213,831	$	238,164

The following tables disaggregate our revenue by reportable segment and geographical location(1) for the nine months ended September 30, 2024 and 2023:


	Control Devices				Electronics				Stoneridge Brazil				Consolidated
Nine months ended September 30,	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales:
North America	$	193,874	$	229,990	$	155,151	$	155,823	$	—	$	—	$	349,025	$	385,813
South America	—		—		—		—		37,084		43,332		37,084		43,332
Europe	—		—		264,739		269,154		—		—		264,739		269,154
Asia Pacific	36,312		37,416		2,887		10,588		—		—		39,199		48,004
Total net sales	$	230,186	$	267,406	$	422,777	$	435,565	$	37,084	$	43,332	$	690,047	$	746,303

_______________________

(1)Company sales based on geographic location are where the sale originates not where the customer is located.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

Performance Obligations

For OEM and Tier 1 supplier customers, the Company typically enters into contracts to provide serial production parts that consist of a set of documents including, but not limited to, an award letter, master purchase agreement and master terms and conditions. For each production product, the Company enters into separate purchase orders that contain the product specifications and an agreed-upon price. The performance obligation does not exist until a customer release is received for a specific number of parts. The majority of the parts sold to OEM and Tier 1 supplier customers are customized to the specific customer, with the exception of camera monitoring systems (“CMS”) sold through our aftermarket channel that are common across all customers. The transaction price is equal to the contracted price per part and there is no expectation of material variable consideration in the transaction price. For most customer contracts, the Company does not have an enforceable right to payment at any time prior to when the parts are shipped or delivered to the customer; therefore, the Company recognizes revenue at the point in time it satisfies a performance obligation by transferring control of a part to the customer. Certain customer contracts contain an enforceable right to payment if the customer terminates the contract for convenience and therefore are recognized over time using the cost to complete input method.

Our aftermarket products are focused on meeting the demand for safety, compliance and entertainment applications. Including products, accessories and replacement parts and are sold primarily to aftermarket distributors in our South American and European markets, as well as direct to aftermarket customers in North America. Aftermarket products have one type of performance obligation, which is the delivery of aftermarket parts and spare parts. For aftermarket customers, the Company typically has standard terms and conditions for all customers. In addition, aftermarket products have alternative use as they can be sold to multiple customers. Revenue for aftermarket part production contracts is recognized at a point in time when the control of the parts transfers to the customer, which is based on the shipping terms. Aftermarket contracts may include variable consideration related to discounts and rebates, which is included in the transaction price upon recognizing the product revenue.

A small portion of the Company’s sales are comprised of monitoring services that include both monitoring devices and fees to individual, corporate, fleet and cargo customers in our Stoneridge Brazil segment. These monitoring service contracts are generally not capable of being distinct and are accounted for as a single performance obligation. We recognize revenue for our monitoring products and services contracts over the life of the contract. There is no variable consideration associated with these contracts. The Company has the right to consideration from a customer in the amount that corresponds directly with the value to the customer of the Company’s performance to date. Therefore, the Company recognizes revenue over time using the practical expedient ASC 606-10-55-18 in the amount the Company has a “right to invoice” rather than selecting an output or input method.

Contract Balances

The Company had no material contract assets, contract liabilities or capitalized contract acquisition costs as of September 30, 2024 and December 31, 2023.

(4) Inventories

Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following:


	September 30, 2024		December 31, 2023
Raw materials	$	128,437	$	142,744
Work-in-progress	8,071		11,907
Finished goods	39,937		33,107
Total inventories, net	$	176,445	$	187,758

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

Inventory valued using the FIFO method was $162,151 and $176,033 at September 30, 2024 and December 31, 2023, respectively. Inventory valued using the average cost method was $14,294 and $11,725 at September 30, 2024 and December 31, 2023, respectively.

(5) Financial Instruments and Fair Value Measurements

Financial Instruments

A financial instrument is cash or a contract that imposes an obligation to deliver or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. The fair value of debt approximates the carrying value of debt, due to the variable interest rate on our Credit Facility and the maturity of the remaining outstanding debt.

Derivative Instruments and Hedging Activities

On September 30, 2024, the Company had open Mexican peso-denominated foreign currency forward contracts. The Company used foreign currency forward contracts solely for hedging and not for speculative purposes during 2024 and 2023. Management believes that its use of these instruments to reduce risk is in the Company’s best interest. The counterparties to these financial instruments are financial institutions with investment grade credit ratings.

Foreign Currency Exchange Rate Risk

Foreign currency transactions are remeasured into the functional currency using translation rates in effect at the time of the transaction with the resulting adjustments included on the condensed consolidated statements of operations within other (income) expense, net. These foreign currency transaction (gains) losses, including the impact of hedging activities, were $(320) and $(1,359) for the three months ended September 30, 2024 and 2023, respectively, and $(646) and $2,099 for the nine months ended September 30, 2024 and 2023, respectively.

The Company conducts business internationally and, therefore, is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow hedges to manage its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions, inventory purchases and other foreign currency exposures.

Cash Flow Hedges

The Company entered into foreign currency forward contracts to hedge the Mexican peso currency in 2024 and 2023. These forward contracts were executed to hedge forecasted transactions and have been accounted for as cash flow hedges. As such, gains and losses on derivatives qualifying as cash flow hedges are recorded in accumulated other comprehensive loss, to the extent that hedges are effective, until the underlying transactions are recognized in earnings. Unrealized amounts in accumulated other comprehensive loss fluctuate based on changes in the fair value of hedge derivative contracts at each reporting period. The cash flow hedges were highly effective. The effectiveness of the transactions was measured using regression analysis and forecasted future purchases of the currency.

In certain instances, the foreign currency forward contracts may not qualify for hedge accounting or are not designated as hedges and, therefore, are marked-to-market with gains and losses recognized in the Company’s condensed consolidated statements of operations as a component of other (income) expense, net. At September 30, 2024, all of the Company’s foreign currency forward contracts were designated as cash flow hedges.

The Company’s foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows:

Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedges

The Company holds Mexican peso-denominated foreign currency forward contracts with a notional amount at September 30, 2024 of $31,183, which expire ratably on a monthly basis from October 2024 to December 2025. The notional amounts at December 31, 2023 related to Mexican peso-denominated foreign currency forward contracts were $26,613.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

The Company evaluated the effectiveness of the Mexican peso denominated forward contracts held as of September 30, 2024 and concluded that the hedges were highly effective.

Interest Rate Risk

Interest Rate Risk – Cash Flow Hedge

On February 18, 2020, the Company entered into a floating-to-fixed interest rate swap agreement (the “Swap”) with a notional amount of $50,000 to hedge its exposure to interest payment fluctuations on a portion of its Credit Facility borrowings. The Swap matured on March 10, 2023. The Swap was designated as a cash flow hedge of the variable interest rate obligation under the Company's Fourth Amended and Restated Credit Agreement, as amended, (the “Fourth Amended and Restated Credit Agreement”). Accordingly, the change in fair value of the Swap was recognized in accumulated other comprehensive loss. The Swap agreement required monthly settlements on the same days that the Fourth Amended and Restated Credit Agreement interest payments were due. The Swap's maturity date of March 10, 2023, was before the Fourth Amended and Restated Credit Agreement maturity date of June 5, 2024. Under the Swap terms, the Company paid a fixed interest rate and received a floating interest rate based on the one-month LIBOR, with a floor. The critical terms of the Swap were aligned with the terms of the Fourth Amended and Restated Credit Agreement, resulting in no hedge ineffectiveness. The difference between amounts to be received and paid under the Swap were recognized as a component of interest expense, net on the condensed consolidated statements of operations. The Swap settlements reduced interest expense, net by $290 for the nine months ended September 30, 2023.

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows:


	Notional amounts (A)				Prepaid expenses and other current assets				Accrued expenses and other current liabilities
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	31,183	$	26,613	$	—	$	1,858	$	2,032	$	—

_____________________________

(A)Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars.

Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net (loss) income for the three months ended September 30 were as follows:


	(Loss) gain recorded in other comprehensive income (loss)				(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income (A)
	2024		2023		2024		2023
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(1,629)	$	67	$	(435)	$	227

_____________________________


(A)			(Losses) gains reclassified from other comprehensive income (loss) into net (loss) income recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $(142) and $54 for the three months ended September 30, 2024 and 2023, respectively. (Losses) gains reclassified from other comprehensive income (loss) into net (loss) income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $(293) and $173 for the three months ended September 30, 2024 and 2023, respectively.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

Gross amounts recorded for the cash flow and net investment hedges in other comprehensive (loss) income and in net loss for the nine months ended September 30 were as follows:


	(Loss) gain recorded in other comprehensive (loss) income				Gain reclassified from other comprehensive (loss) income into net loss (A)
	2024		2023		2024		2023
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(3,257)	$	483	$	633	$	278
Interest rate swap	$	—	$	(4)	$	—	$	290


(A)			Gains reclassified from other comprehensive (loss) income into net loss recognized in SG&A in the Company’s condensed consolidated statements of operations were $109 and $66 for the nine months ended September 30, 2024 and 2023, respectively. Gains reclassified from other comprehensive (loss) income into net loss recognized in COGS in the Company’s condensed consolidated statements of operations were $524 and $212 for the nine months ended September 30, 2024 and 2023, respectively. Gains reclassified from other comprehensive (loss) income into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $0 and $290 for the nine months ended September 30, 2024 and 2023, respectively.

Cash flows from derivatives used to manage foreign currency exchange and interest rate risks are classified as operating activities within the condensed consolidated statements of cash flows.

Fair Value Measurements

Certain assets and liabilities held by the Company are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used. Fair values estimated using Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values estimated using Level 2 inputs, other than quoted prices, are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency and cross-currency contracts, inputs include forward foreign currency exchange rates. For the interest rate swap, inputs included LIBOR. Fair values estimated using Level 3 inputs consist of significant unobservable inputs.

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of inputs used.


			September 30, 2024						December 31, 2023
			Fair values estimated using
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs		Fair value
Financial assets carried at fair value:
Forward currency contracts	$	—	$	—	$	—	$	—	$	1,858


Total financial assets carried at fair value	$	—	$	—	$	—	$	—	$	1,858

Financial liabilities carried at fair value:
Forward currency contracts	$	2,032	$	—	$	2,032	$	—	$	—


Total financial liabilities carried at fair value	$	2,032	$	—	$	2,032	$	—	$	—

There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the nine months ended September 30, 2024.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

(6) Share-Based Compensation

Compensation expense for share-based compensation arrangements, which is recognized in the condensed consolidated statements of operations as a component of SG&A expense, was $885 and $1,001 for the three months ended September 30, 2024 and 2023, respectively. Compensation expense for share-based compensation arrangements was $3,092 and $2,272 for the nine months ended September 30, 2024 and 2023, respectively. The nine months ended September 30, 2023 included income from the forfeiture of certain grants associated with employee resignations.

(7) Debt

Debt consisted of the following at September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023		Interest rates at September 30, 2024		Maturity
Revolving Credit Facility
Revolving Credit Facility	$	196,322	$	189,346	7.16	%	November 2026

Debt

Suzhou short-term credit line	—		2,113
Total debt	—		2,113
Less: current portion	—		(2,113)
Total long-term debt, net	$	—	$	—

Revolving Credit Facility

On June 5, 2019, the Company entered into the Fourth Amended and Restated Credit Agreement. The Fourth Amended and Restated Credit Agreement provided for a $300,000 senior secured revolving credit facility. As a result of entering into the Fourth Amended and Restated Credit Agreement and related amendments, the Company capitalized $332 of deferred financing costs during the year ended December 31, 2023.

On November 2, 2023, the Company entered into the Fifth Amended and Restated Credit Agreement (the “Credit Facility”). The Credit Facility provides for a $275,000 senior secured revolving credit facility and it replaced and superseded the Fourth Amended and Restated Credit Agreement. The Credit Facility has an accordion feature, which allows the Company to increase the availability by up to $150,000 upon the satisfaction of certain conditions, including the consent of lenders providing the increase in commitments, and also includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. The Credit Facility has a termination date of November 2, 2026. Borrowings under the Credit Facility bear interest at either the Base Rate or the SOFR rate, at the Company’s option, plus the applicable margin as set forth in the Credit Facility. The Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio.

As a result of entering into the Fifth Amended and Restated Credit Agreement, the Company capitalized $1,915 of deferred financing costs and wrote off $309 of previously recorded deferred financing costs during the year ended December 31, 2023.

The Credit Facility contains customary affirmative covenants and representations. The Credit Facility also contains customary negative covenants, which, among other things, are subject to certain exceptions, including restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) continuation of or change in business, (vii) restricted payments, (viii) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (ix) loans and investments and (x) changes in organizational documents and fiscal year. The Credit Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) non-payment of principal and non-payment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross default of other debt, final judgments and other adverse orders in excess of $30,000, (v) any loan document shall cease to be a legal, valid and binding agreement,

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

(vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000, (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings.

Borrowings outstanding on the Credit Facility were $196,322 and $189,346 at September 30, 2024 and December 31, 2023, respectively.

The Company was in compliance with all Credit Facility covenants at September 30, 2024 and December 31, 2023.

The Company also has outstanding letters of credit of $1,571 at September 30, 2024 and $1,586 at December 31, 2023.

Debt

The Company’s wholly owned subsidiary located in Stockholm, Sweden (the "Stockholm subsidiary"), has an overdraft credit line that allows overdrafts on the subsidiary’s bank account up to a daily maximum level of 20,000 Swedish krona, or $1,969 and $1,987, at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 and December 31, 2023, there were no borrowings outstanding on this overdraft credit line. During the nine months ended September 30, 2024, the subsidiary borrowed and repaid 255,062 Swedish krona, or $25,116. The Stockholm subsidiary has pledged certain of its assets as collateral in order to obtain a guarantee of certain of the Stockholm subsidiary’s obligations to third parties.

The Company’s wholly owned subsidiary located in Suzhou, China (the “Suzhou subsidiary”), had lines of credit (the “Suzhou credit line”) that matured in August 2024 and allowed up to a maximum borrowing level of 20,000 Chinese yuan, or $2,818 at December 31, 2023. At December 31, 2023 there was $2,113 in borrowings outstanding on the Suzhou credit line. The Suzhou credit line was included on the condensed consolidated balance sheets within current portion of debt. In addition, the Suzhou subsidiary has a bank acceptance draft line of credit which facilitates the extension of trade payable payment terms by 180 days. The bank acceptance draft line of credit allows up to a maximum borrowing level of 60,000 Chinese yuan, or $8,550 and $8,453 at September 30, 2024 and December 31, 2023, respectively. There was $0 and $2,387 utilized on the Suzhou bank acceptance draft line of credit at September 30, 2024 and December 31, 2023, respectively. The Suzhou bank acceptance draft line of credit is included on the condensed consolidated balance sheets within accounts payable.

(8) (Loss) Earnings Per Share

Basic (loss) earnings per share was computed by dividing net (loss) income by the weighted-average number of Common Shares outstanding for each respective period. Diluted (loss) earnings per share was calculated by dividing net income by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. However, for all periods in which the Company recognized a net loss, the Company did not recognize the effect of the potential dilutive securities as their inclusion would be anti-dilutive. Potential dilutive shares of 237,870 for the three months ended September 30, 2024 were excluded from diluted loss per share because the effect would be anti-dilutive. Potential dilutive shares of 244,471 and 238,342 for the nine months ended September 30, 2024 and 2023, respectively, were excluded from diluted loss per share because the effect would be anti-dilutive.

Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows:


	Three months ended September 30,		Nine months ended September 30,
	2024	2023	2024	2023
Basic weighted-average Common Shares outstanding	27,617,663	27,483,709	27,585,904	27,428,249
Effect of dilutive shares	—	250,400	—	—
Diluted weighted-average Common Shares outstanding	27,617,663	27,734,109	27,585,904	27,428,249

There were 612,886 and 425,612 performance-based right to receive Common Shares outstanding at September 30, 2024 and 2023, respectively. The right to receive Common Shares are included in the computation of diluted earnings per share, to the extent they are not anti-dilutive, based on the number of Common Shares that would be issuable if the end of the quarter were the end of the performance period.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

(9) Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income for the three months ended September 30, 2024 and 2023 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at July 1, 2024	$	(107,589)	$	(662)	$	(108,251)
Other comprehensive income (loss) before reclassifications	8,142		(1,287)		6,855
Amounts reclassified from accumulated other comprehensive loss	—		344		344
Net other comprehensive income (loss), net of tax	8,142		(943)		7,199
Balance at September 30, 2024	$	(99,447)	$	(1,605)	$	(101,052)

Balance at July 1, 2023	$	(96,310)	$	288	$	(96,022)
Other comprehensive (loss) income before reclassifications	(6,969)		53		(6,916)
Amounts reclassified from accumulated other comprehensive loss	—		(179)		(179)
Net other comprehensive loss, net of tax	(6,969)		(126)		(7,095)
Balance at September 30, 2023	$	(103,279)	$	162	$	(103,117)

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2024 and 2023 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at January 1, 2024	$	(94,256)	$	1,468	$	(92,788)
Other comprehensive loss before reclassifications	(5,191)		(2,573)		(7,764)
Amounts reclassified from accumulated other comprehensive loss	—		(500)		(500)
Net other comprehensive loss, net of tax	(5,191)		(3,073)		(8,264)
Balance at September 30, 2024	$	(99,447)	$	(1,605)	$	(101,052)

Balance at January 1, 2023	$	(103,374)	$	232	$	(103,142)
Other comprehensive income before reclassifications	95		379		474
Amounts reclassified from accumulated other comprehensive loss	—		(449)		(449)
Net other comprehensive income (loss), net of tax	95		(70)		25
Balance at September 30, 2023	$	(103,279)	$	162	$	(103,117)

(10) Commitments and Contingencies

From time to time, we are subject to various legal actions and claims incidental to our business, including those arising out of breach of contracts, product warranties, product liability, patent infringement, regulatory matters and employment-related matters. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimated. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse effect on its consolidated results of operations or financial position.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at the site. The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. A remedial action plan was approved by the Florida Department of Environmental Protection and groundwater remediation began in the fourth quarter of 2015. During the three months ended September 30, 2024 and 2023, the Company recognized expense of $157 and $0, respectively, related to groundwater remediation. During the nine months ended September 30, 2024 and 2023, the Company recognized expense of $157 and $125, respectively, related to groundwater remediation. At September 30, 2024 and December 31, 2023, the Company accrued $265 and $143, respectively, related to expected future remediation costs. At September 30, 2024 and December 31, 2023, $165 and $136, respectively, were recorded as a component of accrued expenses and other current liabilities in the condensed consolidated balance sheets while the remaining amounts as of September 30, 2024 and December 31, 2023 were recorded as a component of other long-term liabilities. Costs associated with the recorded liability will be incurred to complete the groundwater remediation and monitoring. The recorded liability is based on assumptions in the remedial action plan as well as estimates for future remediation activities. Although the Company sold the Sarasota facility and related property in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the Company is currently required to maintain a $1,489 letter of credit for the benefit of the buyer.

The Company’s Stoneridge Brazil subsidiary has civil, labor and other tax contingencies (excluding income tax) for which the likelihood of loss is deemed to be reasonably possible, but not probable, by the Company’s legal advisors in Brazil. As a result, no provision has been recorded with respect to these contingencies, which amounted to R$43,848 ($8,049) and R$41,681 ($8,609) at September 30, 2024 and December 31, 2023, respectively. An unfavorable outcome on these contingencies could result in significant cost to the Company and adversely affect its results of operations and cash flows.

On August 12, 2020, the Brazilian Administrative Counsel for Economic Defense (“CADE”) issued a ruling against Stoneridge Brazil for abuse of dominance and market foreclosure through its prior use of exclusivity provisions in agreements with its distributors. The CADE tribunal imposed a R$7,995 ($1,468) fine which is included in the reasonably possible contingencies noted above. The Company continues to challenge this ruling in Brazilian federal court to reverse this decision by the CADE tribunal.

Long Term Supply Commitment

In 2022, the Company entered into a long term supply agreement, as amended, with a supplier for the purchase of certain electronic semiconductor components through December 31, 2027. Pursuant to the agreement, the Company paid capacity deposits of $1,000 each in December 2022 and June 2023. The capacity deposits are recognized in prepaid and other current assets on our condensed consolidated balance sheets and amortized ratably over the life of the purchase commitment. This long term supply agreement requires the Company to purchase minimum annual volumes while requiring the supplier to sell these components at a fixed price. The Company purchased $1,840 and $1,252 of these components during the three months ended September 30, 2024 and 2023, respectively, and $2,662 and $4,579 during the nine months ended September 30, 2024 and 2023, respectively. The Company is required to purchase $3,914, $10,764, $10,764 and $3,914 of these components in each of the years 2024 through 2027, respectively.

Product Warranty and Recall

Amounts accrued for product warranty and recall claims are established based on the Company’s best estimate of the amounts necessary to settle existing and future claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. Our estimate is based on historical trends of units sold and claim payment amounts, combined with our current understanding of the status of existing claims, forecasts of the resolution of existing claims, expected future claims on products sold and commercial discussions with our customers. The key factors in our estimate are the warranty period and the customer source. The Company can provide no assurances that it will not experience material claims or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued. The current portion of the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Product warranty and recall reserve included $9,154 and $7,228 of a long-term liability at September 30, 2024 and December 31, 2023, respectively, which is included as a component of other long-term liabilities on the condensed consolidated balance sheets.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

During the second quarter of 2023, the Company received a demand for arbitration from one of our customers seeking recovery for warranty claims related to past sales of PM sensor products, a product line we exited in 2019. In March 2024, pursuant to the arbitration process, the customer submitted a formal statement of claim notification for 29,340 euro ($32,669). In May 2024, the Company responded with a formal statement of defense denying responsibility for the claim. Based on our review of the technical merits and specific claims as well as prior discussions with the customer, we believe these warranty claims lack merit and are significantly overstated. While no assurances can be made as to the ultimate outcome of this matter, or any other future claims, we do not currently believe a material loss is probable.

The following provides a reconciliation of changes in product warranty and recall reserve liability:


Nine months ended September 30,	2024		2023
Product warranty and recall reserve at beginning of period	$	21,610	$	13,477
Accruals for warranties established during period	13,789		10,521
Aggregate changes in pre-existing liabilities due to claim developments	416		579
Settlements made during the period	(10,240)		(5,519)
Foreign currency translation	(1)		(386)
Product warranty and recall reserve at end of period	$	25,574	$	18,672

(11) Business Realignment

The Company regularly evaluates the performance of its businesses and cost structures, including personnel, and makes necessary changes thereto in order to optimize its results. The Company also evaluates the required skill sets of its personnel and periodically makes strategic changes. As a consequence of these actions, the Company incurs severance related costs that are referred to as business realignment charges.

Business realignment charges incurred by reportable segment were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Control Devices (A)	$	—	$	132	$	—	$	511
Electronics (B)	254		1,070		2,144		2,726

Unallocated Corporate (C)	—		—		59		1,137
Total business realignment charges	$	254	$	1,202	$	2,203	$	4,374

_____________________________________


(A)			Severance costs for the three months ended September 30, 2023 related to SG&A were $132. Severance costs for the nine months ended September 30, 2023 related to COGS and SG&A were $369 and $142, respectively.


(B)			Severance costs for the three months ended September 30, 2024 related to COGS and D&D were $140 and $114, respectively. Severance costs for the nine months ended September 30, 2024 related to COGS, SG&A and D&D were $140, $458 and $1,546, respectively. Severance costs for the three months ended September 30, 2023 related to COGS, SG&A and D&D were $30, $657 and $383, respectively. Severance costs for the nine months ended September 30, 2023 related to COGS, SG&A and D&D were $287, $2,056 and $383, respectively.


(C)			Severance related costs for the nine months ended September 30, 2024 related to SG&A was $59. Severance related costs for the nine months ended September 30, 2023 related to SG&A was $1,122. Severance related costs for the nine months ended September 30, 2023 related to D&D was $15.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

Business realignment charges incurred, classified by statement of operations line item were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Cost of goods sold	$	140	$	30	$	140	$	656
Selling, general and administrative	—		789		517		3,320
Design and development	114		383		1,546		398
Total business realignment charges	$	254	$	1,202	$	2,203	$	4,374

(12) Income Taxes

For interim tax reporting, we estimate our annual effective tax rate and apply it to our year to date ordinary income. Tax jurisdictions with a projected or year to date loss for which a benefit cannot be realized are excluded.

For the three months ended September 30, 2024, income tax expense of $3,413 was attributable to the mix of earnings among tax jurisdictions and tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. The effective tax rate of (93.3)% varies from the statutory rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings.

For the three months ended September 30, 2023, income tax expense of $2,270 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of 51.1% varies from the statutory rate primarily due to U.S. taxes on foreign earnings and non-deductible expenses offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives.

For the nine months ended September 30, 2024, income tax expense of $2,987 was attributable to the mix of earnings among tax jurisdictions and tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. The effective tax rate of (40.2)% varies from the statutory rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings.

For the nine months ended September 30, 2023, income tax expense of $3,049 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of (59.1)% varies from the statutory rate primarily due to U.S. taxes on foreign earnings and non-deductible expenses offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives.

The OECD (Organisation for Economic Co-operation and Development) implemented a 15% global corporate minimum tax ("Pillar Two") to ensure that large multinational enterprises pay a minimum level of tax in the countries they operate. During 2023, many countries took steps to incorporate Pillar Two into their domestic laws. In 2024, we do not expect a material change to our income tax provision in connection with Pillar Two. As additional jurisdictions implement this legislation, our effective tax rate and cash tax payments could increase in future years.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

(13) Segment Reporting

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer.

The Company has three reportable segments, Control Devices, Electronics and Stoneridge Brazil, which also represent its operating segments. The Control Devices reportable segment produces actuators, sensors, switches and connectors. The Electronics reportable segment produces driver information systems, vision and safety systems, connectivity and compliance products and electronic control units. The Stoneridge Brazil reportable segment designs and manufactures vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices, driver information systems and telematics solutions.

The accounting policies of the Company’s reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company’s 2023 Form 10-K. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and operating income. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable. Such costs and eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as accounting/finance, executive administration, human resources, information technology and legal.

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)

A summary of financial information by reportable segment is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net Sales:
Control Devices	$	73,129	$	89,344	$	230,186	$	267,406
Inter-segment sales	1,160		733		2,946		2,437
Control Devices net sales	74,289		90,077		233,132		269,843
Electronics	127,483		134,652		422,777		435,565
Inter-segment sales	8,184		8,649		22,492		25,656
Electronics net sales	135,667		143,301		445,269		461,221
Stoneridge Brazil	13,219		14,168		37,084		43,332
Inter-segment sales	411		—		610		—
Stoneridge Brazil net sales	13,630		14,168		37,694		43,332
Eliminations	(9,755)		(9,382)		(26,048)		(28,093)
Total net sales	$	213,831	$	238,164	$	690,047	$	746,303
Operating Income (Loss):
Control Devices	$	2,131	$	5,488	$	8,020	$	12,649
Electronics	3,514		7,647		20,434		16,491
Stoneridge Brazil	717		1,241		880		3,483
Unallocated Corporate (A)	(6,047)		(7,864)		(25,281)		(25,809)
Total operating income	$	315	$	6,512	$	4,053	$	6,814
Depreciation and Amortization:
Control Devices	$	3,152	$	3,100	$	8,821	$	9,373
Electronics	4,030		3,521		11,794		10,488
Stoneridge Brazil	1,155		1,259		3,652		3,545
Unallocated Corporate	492		593		1,696		1,800
Total depreciation and amortization (B)	$	8,829	$	8,473	$	25,963	$	25,206
Interest Expense (Income), net:
Control Devices	$	9	$	37	$	(10)	$	120
Electronics	283		456		1,387		1,452
Stoneridge Brazil	(204)		(680)		(798)		(1,269)
Unallocated Corporate	3,516		3,500		10,460		8,876
Total interest expense, net	$	3,604	$	3,313	$	11,039	$	9,179
Capital Expenditures:
Control Devices	$	2,914	$	2,986	$	6,018	$	6,961
Electronics	1,298		4,710		5,652		13,251
Stoneridge Brazil	484		889		2,223		2,307
Unallocated Corporate(C)	212		371		972		700
Total capital expenditures	$	4,908	$	8,956	$	14,865	$	23,219

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STONERIDGE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data, unless otherwise stated)

(Unaudited)


	September 30, 2024		December 31, 2023
Total Assets:
Control Devices	$	153,043	$	159,612
Electronics	399,467		404,994
Stoneridge Brazil	57,789		66,318
Corporate (C)	453,201		419,469
Eliminations	(400,977)		(370,493)
Total assets	$	662,523	$	679,900

The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates:


	Three months ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net Sales:
North America	$	109,395	$	126,499	$	349,025	$	385,813
South America	13,219		14,168		37,084		43,332
Europe and Other	91,217		97,497		303,938		317,158
Total net sales	$	213,831	$	238,164	$	690,047	$	746,303


	September 30, 2024		December 31, 2023
Long-term Assets:
North America	$	95,612	$	92,419
South America	29,028		32,679
Europe and Other	123,470		125,412
Total long-term assets	$	248,110	$	250,510

__________________________________________________________

(A)Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation.

(B)These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

(C)Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries.

(14) Investments

In December 2018, the Company entered into an agreement to make a $10,000 investment in a fund (“Autotech Fund II”) managed by Autotech Ventures (“Autotech”), a venture capital firm focused on ground transportation technology which is accounted for under the equity method of accounting. The Company’s $10,000 investment in the Autotech Fund II will be contributed over the expected ten-year life of the fund. The Company has contributed $8,660 to the Autotech Fund II as of September 30, 2024. The Company contributed $260 and $200 to Autotech Fund II during the nine months ended September 30, 2024 and 2023, respectively. The Company did not receive distributions from Autotech Fund II during the nine months ended September 30, 2024 or 2023. The Company has a 6.7% interest in Autotech Fund II. The Company recognized losses of $752 and $141 during the three months ended September 30, 2024 and 2023, respectively. The Company recognized losses of $1,081 and $641 during the nine months ended September 30, 2024 and 2023, respectively. The Autotech Fund II investment recorded in investments and other long-term assets in the condensed consolidated balance sheets was $7,651 and $8,472 as of September 30, 2024 and December 31, 2023, respectively.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

We are a global designer and manufacturer of highly engineered electrical and electronic systems, components and modules primarily for the automotive, commercial, off-highway and agricultural vehicle markets.

The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and notes related thereto and other financial information included elsewhere herein.

Segments

We are organized by products produced and markets served. Under this structure, our operations have been reported using the following segments:

Control Devices. This segment includes results of operations that manufacture actuators, sensors, switches and connectors.

Electronics. This segment includes results of operations from the production of driver information systems, vision and safety systems, connectivity and compliance products and electronic control units.

Stoneridge Brazil. This segment includes results of operations that design and manufacture vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices, driver information systems and telematics solutions.

Third Quarter Overview

The Company had net loss of $7.1 million, or $(0.26) per diluted share, for the three months ended September 30, 2024.

Net loss for the quarter ended September 30, 2024 increased by $9.2 million, or $(0.33) per diluted share, from net income of $2.2 million, or $0.08 per diluted share, for the three months ended September 30, 2023. Net loss increased due to lower contribution from lower sales offset by a reduction in SG&A spending and the favorable impact of non-operating foreign currency gains. Net sales decreased by $24.3 million, or 10.2%, compared to the three months ended September 30, 2023, primarily from lower volumes in our North American automotive market for our Control Devices segment and lower volumes in our European and North American commercial vehicle and European off-highway markets for our Electronics segment. Gross margin as a percent of sales for the quarter ended September 30, 2024 decreased to 20.8% from 22.0% for the three months ended September 30, 2023 driven by lower contribution from lower sales offset by favorable sales mix, material cost improvements and a reduction in adverse foreign exchange related material variances.

Our Control Devices segment net sales decreased by 18.1% compared to the third quarter of 2023 primarily as a result of decreases in our North American automotive and China commercial vehicle markets. The decrease in our North American automotive market was due to lower customer volumes including electronic and hybrid vehicle platforms and the expected wind down of end-of-life programs. These decreases were offset by sales increases in our China automotive and North American commercial vehicle markets. Segment gross margin as a percentage of sales decreased due to lower contribution from lower sales levels. Segment operating income decreased due to lower contribution from lower sales volumes and higher SG&A spending offset by lower D&D spending.

Our Electronics segment net sales decreased by 5.3% compared to the third quarter of 2023 primarily due to lower sales volumes in our European and North American commercial vehicle markets, partially mitigated by the ramp-up of recently launched programs, including a European MirrorEye OEM program and our next generation tachograph. We also experienced lower sales volume in our European off-highway vehicle market. Additionally, net sales decreased due to lower electronic component spot buy purchases, which are material purchases reimbursed by customers and recorded as both revenue and offsetting material cost. Offsetting these sales decreases was the favorable impact of foreign currency translation. Segment gross margin as a percent of sales decreased compared to the prior year third quarter as lower contribution from lower sales levels was offset by material cost improvements and a reduction in foreign exchange related material variances. Operating income for the segment decreased compared to the third quarter of 2023 because of lower contribution from lower sales levels and higher D&D because of lower customer reimbursements offset by lower SG&A from 2023 business realignment costs.

Our Stoneridge Brazil segment net sales decreased by 6.7% compared to the third quarter of 2023 primarily from unfavorable foreign currency translation of $1.7 million, and lower monitoring service fees that were offset by higher OEM and aftermarket product sales. Operating income decreased due to the adverse impact of U.S. dollar denominated material purchases and unfavorable sales mix from lower monitoring service fees offset by lower SG&A spending.

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In the third quarter of 2024, SG&A expenses decreased by $1.6 million compared to the third quarter of 2023 driven primarily by lower incentive compensation, business realignment costs and professional services partially offset by higher wages and self-insured medical costs.

In the third quarter of 2024, D&D costs decreased by $0.2 million compared to the prior year third quarter from reduced launch activities that resulted in lower wages and consulting being mostly offset by lower customer reimbursements in our Electronics and Control Devices segments.

At September 30, 2024 and December 31, 2023, we had cash and cash equivalents balances primarily held at our foreign locations of $54.1 million and $40.8 million, respectively, and we had $196.3 million and $189.3 million, respectively, in borrowings outstanding on our Credit Facility. The 2024 increase in cash and cash equivalents was mostly due to cash generated from operating activities including a reduction in accounts receivable and inventory balances.

Outlook

The Company believes that focusing on products that address industry megatrends has had and will continue to have a positive effect on both our top-line growth and underlying margins. Expanding on our existing products and technology platforms with advanced capabilities, applications and data services is core to our long-term strategy. For example, the Company is aligned with platforms likely to perform well against overall market dynamics including light-trucks, SUVs and crossover vehicles and our continued focus on safety, vehicle intelligence and connectivity based products, such as our ongoing launches of our OEM MirrorEye® programs in North America and Europe as well as our next generation tachograph in Europe. In addition, we are partnering with an OEM to develop advanced system capabilities based on data services, software and AI in bus applications.

Based on IHS Market production forecasts, the North American automotive market is expected to slightly decrease from 15.6 million units in 2023 to 15.5 million units in 2024 and then to 15.3 million units in 2025. In our Control Devices segment, we remain focused on drivetrain agnostic technologies to drive new business awards as the market continues to evolve. This strategy is highlighted by our recent new business award for a leak detection module product which provides further global opportunities primarily for hybrid vehicle applications, a market that we expect to continue to grow, and is also applicable to traditional powertrain vehicles. We continue to focus on operational excellence and enterprise-wide cost reduction, including material cost reduction plans, to continue to drive margin improvement going-forward.

Based on IHS Market production forecasts, in 2025 the European and North American commercial vehicle end market volumes are forecasted to increase 10.0% and 4.4%, respectively. Over the long-term, we expect our Electronics’ segment sales to outperform forecasted changes in production volumes due to strong demand for our existing products and the impact of ongoing launches of our OEM MirrorEye programs in North America and Europe as well as our next generation tachograph in Europe. During 2024, sales related to our recent MirrorEye OEM program launch have been lower than anticipated, however we expect continued growth in MirrorEye as we launch new OEM programs in both North America and Europe and our equipment becomes standard on key truck platforms for existing OEM programs.

In our Electronics segment recovery from customers related to spot buys of materials purchased by the Company on behalf of those customers, which is recognized as revenue and material costs, increased net sales by $14.6 million for the full year 2023. As a result of supply chains normalizing and material availability improving, the Company did not incur any spot buy material purchases in the first nine months of 2024 and does not expect to incur additional spot buy material purchases in the future based on current market conditions.

For the remainder of 2024, we expect net D&D spending to remain relatively stable driven by reduced launch activities, and as a result, we expect lower customer reimbursements and capitalization of software development costs. We continue to execute our strategy to optimize our engineering footprint to enhance capabilities and capacity for the most efficient return on our engineering spend including the reorganization of our Solna, Sweden location which resulted in business realignment expense of $1.5 million in 2024.

In October 2024, the International Monetary Fund forecasted the Brazil gross domestic product to grow 2.2% in 2025, a decline from forecasted growth of 3.0% in 2024. We expect our served market channels to remain relatively stable in 2024 based on current market and economic conditions, however our sales of in region OEM products have been lower than expected due to lower customer demand. Stoneridge Brazil continues to focus on growing our OEM capabilities in-region to better support our global customers. We expect this strategy will provide opportunities for future growth and a platform to continue to rotate our local portfolio to more closely align with our global products. In addition, we continue to align our global engineering capabilities and footprint by expanding our Brazilian engineering center.

While we expect continued challenges across our end markets for the remainder of the year and into 2025, we continue to focus on operating performance and enterprise-wide cost reduction. We remain focused on improving cash generation and the reduction of debt through targeted actions to reduce net working capital, particularly our inventory levels, from both the impact of our Electronics segment product launches normalizing and specific inventory reduction actions.

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We expect higher interest expense in 2024 driven by higher outstanding balances on our Credit Facility.

Our future effective tax rate depends on various factors, such as changes in tax laws, regulations, accounting principles and our jurisdictional mix of earnings. We monitor these factors and the impact on our effective tax rate.

Other Matters

A significant portion of our sales are outside of the United States. These sales are generated by our non-U.S. based operations, and therefore, movements in foreign currency exchange rates can have a significant effect on our results of operations, which are presented in U.S. dollars. A significant portion of our raw materials purchased by our Electronics and Stoneridge Brazil segments are denominated in U.S. dollars, and therefore movements in foreign currency exchange rates can also have a significant effect on our results of operations. The U.S. Dollar strengthened against the Mexican peso, Brazilian real and Argentine peso in 2024 favorably impacting our reported results.

We regularly evaluate the performance of our businesses and their cost structures, including personnel, and make necessary changes thereto in order to optimize our results. We also evaluate the required skill sets of our personnel and periodically make strategic changes. As a consequence of these actions, we incur severance and resignation related costs that we refer to as business realignment charges. Business realignment costs of $0.3 million and $1.2 million were incurred in the three months ended September 30, 2024 and 2023, respectively.

Because of the competitive nature of the markets we serve, we face pricing pressures from our customers in the ordinary course of business. In response to these pricing pressures we have been able to effectively manage our production costs by the combination of lowering certain costs and limiting the increase of others, the net impact of which to date has not been material. However, if we are unable to effectively manage production costs in the future to mitigate future pricing pressures, our results of operations would be adversely affected.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Condensed consolidated statements of operations as a percentage of net sales are presented in the following table (in thousands):


Three months ended September 30,	2024				2023				Dollar increase (decrease)
Net sales	$	213,831	100.0	%	$	238,164	100.0	%	$	(24,333)
Costs and expenses:
Cost of goods sold	169,340		79.2		185,689		78.0		(16,349)
Selling, general and administrative	26,533		12.4		28,111		11.8		(1,578)
Design and development	17,643		8.3		17,852		7.5		(209)
Operating income	315		0.1		6,512		2.7		(6,197)
Interest expense, net	3,604		1.7		3,313		1.4		291
Equity in loss of investee	752		0.4		141		0.1		611
Other income, net	(384)		(0.2)		(1,383)		(0.6)		999
(Loss) income before income taxes	(3,657)		(1.7)		4,441		1.9		(8,098)
Provision for income taxes	3,413		1.6		2,270		1.0		1,143
Net (loss) income	$	(7,070)	(3.3)	%	$	2,171	0.9	%	$	(9,241)

Net Sales. Net sales for our reportable segments, excluding inter-segment sales, are summarized in the following table (in thousands):


Three months ended September 30,	2024				2023				Dollar decrease		Percent decrease
Control Devices	$	73,129	34.2	%	$	89,344	37.5	%	$	(16,215)	(18.1)	%
Electronics	127,483		59.6		134,652		56.5		(7,169)		(5.3)	%
Stoneridge Brazil	13,219		6.2		14,168		6.0		(949)		(6.7)	%
Total net sales	$	213,831	100.0	%	$	238,164	100.0	%	$	(24,333)	(10.2)	%

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Our Control Devices segment net sales decreased $16.2 million because of decreases in our North American automotive and China commercial vehicle markets of $21.0 million and $5.3 million, respectively. The decrease in our North American automotive market was primarily due to lower customer volumes including electronic and hybrid vehicle platforms and the expected wind down of end-of-life programs. These decreases were partially offset by increases in our China automotive, North American commercial vehicle and off highway markets of $3.5 million, $2.7 million and $2.1 million, respectively.

Our Electronics segment net sales decreased $7.2 million because of lower customer production volumes in our European and North American commercial vehicle markets of $1.7 million and $1.7 million, respectively, mitigated by the ramp-up of recently launched programs, including a European OEM MirrorEye program and our next generation tachograph. We experienced lower sales volumes in our European off-highway vehicle and agricultural markets of $4.5 million and $1.3 million, respectively. Net sales also decreased because of the 2023 impact of required electronic component spot buy purchases of $0.9 million. Net sales in the third quarter of 2024 were favorably impacted by euro and Swedish krona foreign currency translation of $2.4 million compared to the prior year quarter.

Our Stoneridge Brazil segment net sales decreased $0.9 million from unfavorable foreign currency translation of $1.7 million, and lower monitoring service fees that were offset by higher OEM and aftermarket product sales.

Net sales by geographic location are summarized in the following table (in thousands):


Three months ended September 30,	2024				2023				Dollar decrease		Percent decrease
North America	$	109,395	51.1	%	$	126,499	53.1	%	$	(17,104)	(13.5)	%
South America	13,219		6.2		14,168		6.0		(949)		(6.7)	%
Europe and Other	91,217		42.7		97,497		40.9		(6,280)		(6.4)	%
Total net sales	$	213,831	100.0	%	$	238,164	100.0	%	$	(24,333)	(10.2)	%

The decrease in North American net sales was mostly attributable to a decrease in sales volume in our automotive market of $21.1 million. The decrease in our North American automotive market was primarily caused by lower customer volumes including electronic and hybrid vehicle platforms and by the expected wind down of end-of-life programs. These decreases were offset by higher sales in our off-highway and commercial vehicle markets of $2.0 million and $1.0 million, respectively.

The decrease in net sales in South America was from unfavorable foreign currency translation of $1.7 million, and lower monitoring service fees that were offset by higher OEM and aftermarket product sales.

The decrease in net sales in Europe and Other was due to decreases in customer production volumes in our China and European commercial vehicle markets of $5.1 million and $1.7 million, respectively, as well as a decrease in our European off-highway market of $4.5 million. In addition, we experienced a decrease in electronic component spot buys of $0.7 million. These decreases were offset by higher sales in our China automotive market of $3.5 million. Net sales were impacted by a favorable foreign currency translation of $2.6 million.

Cost of Goods Sold and Gross Margin. Cost of goods sold decreased compared to the third quarter of 2023 and our gross margin decreased from 22.0% in the third quarter of 2023 to 20.8% in the third quarter of 2024. Our material cost as a percentage of net sales decreased to 57.2% in the third quarter of 2024 from 58.1% in the third quarter of 2023. The decrease in material cost percentage was due to favorable product mix and material cost improvements as well as a reduction in foreign exchange related material variances. Overhead as a percentage of net sales was 17.3% and 14.9% for the third quarter of 2024 and 2023, respectively. The increase in overhead as a percentage of sales was attributable to lower sales as overhead spending was consistent with the prior year quarter.

Our Control Devices segment gross margin decreased primarily because of lower contribution from lower sales offset by improved sales mix.

Our Electronics segment gross margin decreased from the prior year third quarter as lower contribution from lower sales levels and higher overhead spending were partially offset by lower direct material from material cost improvements and a reduction in foreign exchange related material variances.

Our Stoneridge Brazil segment gross margin decreased primarily because of the adverse impact of U.S. dollar denominated material purchases and unfavorable sales mix from lower monitoring service fees.

Selling, General and Administrative. SG&A expenses decreased by $1.6 million primarily because of lower incentive compensation, business realignment costs and professional services being offset by higher wages and self-insured medical costs.

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Design and Development. D&D costs decreased by $0.2 million from reduced launch activities that resulted in lower wages and consulting being mostly offset by lower customer reimbursements in our Electronics and Control Devices segments.

Operating Income. Operating income (loss) by segment is summarized in the following table (in thousands):


Three months ended September 30,	2024		2023		Dollar increase (decrease)		Percent increase (decrease)
Control Devices	$	2,131	$	5,488	$	(3,357)	(61.2)	%
Electronics	3,514		7,647		(4,133)		(54.0)
Stoneridge Brazil	717		1,241		(524)		(42.2)
Unallocated corporate	(6,047)		(7,864)		1,817		23.1
Operating income	$	315	$	6,512	$	(6,197)	(95.2)	%

Our Control Devices segment operating income decreased because of lower contribution margin from lower sales levels and higher SG&A spending offset by lower D&D spending.

Our Electronics segment operating income decreased primarily because of lower contribution from lower sales levels as well as higher overhead and D&D spending offset by lower SG&A from 2023 business realignment costs.

Our Stoneridge Brazil segment operating income decreased due to the adverse impact of U.S. dollar denominated material purchases and unfavorable sales mix from lower monitoring service fees offset by lower SG&A spending.

Our unallocated corporate operating loss decreased from lower SG&A and D&D spending.

Operating income (loss) by geographic location is summarized in the following table (in thousands):


Three months ended September 30,	2024		2023		Dollar decrease		Percent decrease
North America	$	(5,130)	$	(3,951)	$	(1,179)	(29.8)	%
South America	717		1,241		(524)		(42.2)
Europe and Other	4,728		9,222		(4,494)		(48.7)
Operating income	$	315	$	6,512	$	(6,197)	(95.2)	%

Our North American operating loss increased due to lower contribution margin from lower sales levels. Operating income in South America decreased due to the adverse impact of U.S. dollar denominated material purchases and unfavorable sales mix from lower monitoring service fees offset by lower SG&A spending. Our operating results in Europe and Other decreased primarily due to lower contribution from lower sales levels and higher overhead and D&D spending resulting from lower customer reimbursements.

Interest Expense, net. Interest expense, net was $3.6 million and $3.3 million for the three months ended September 30, 2024 and 2023, respectively. The increase for the quarter ended September 30, 2024, was the result of higher Credit Facility outstanding balances.

Equity in Loss of Investee. Equity loss for Autotech Fund II was $0.8 million and $0.1 million for the three months ended September 30, 2024 and 2023, respectively.

Other Income, net. We record certain foreign currency transaction (gains) losses as a component of other income, net on the condensed consolidated statement of operations. Other income, net of $0.4 million decreased by $1.0 million compared to the third quarter of 2023 due to lower foreign currency transaction gains in our Electronics segment.

Provision for Income Taxes. For the three months ended September 30, 2024, income tax expense of $3.4 million was attributable to the mix of earnings among tax jurisdictions and tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. The effective tax rate of (93.3)% varies from the statutory tax rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings.

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For the three months ended September 30, 2023, income tax expense of $2.3 million was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, U.S. taxes on foreign earnings and non-deductible expenses offset by tax credits and incentives. The effective tax rate of 51.1% varies from the statutory tax rate primarily due to U.S. taxes on foreign earnings, non-deductible expenses and the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions offset by tax credits and incentives.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Condensed consolidated statements of operations as a percentage of net sales are presented in the following table (in thousands):


Nine months ended September 30,	2024				2023				Dollar increase / (decrease)
Net sales	$	690,047	100.0	%	$	746,303	100.0	%	$	(56,256)
Costs and expenses:
Cost of goods sold	543,459		78.8		590,538		79.1		(47,079)
Selling, general and administrative	88,832		12.9		91,465		12.3		(2,633)

Design and development	53,703		7.8		57,486		7.7		(3,783)
Operating income	4,053		0.5		6,814		0.9		(2,761)
Interest expense, net	11,039		1.6		9,179		1.2		1,860
Equity in loss of investee	1,081		0.2		641		0.1		440
Other (income) expense, net	(644)		—		2,152		0.4		(2,796)
Loss before income taxes	(7,423)		(1.3)		(5,158)		(0.8)		(2,265)
Provision for income taxes	2,987		0.4		3,049		0.4		(62)
Net loss	$	(10,410)	(1.7)	%	$	(8,207)	(1.2)	%	$	(2,203)

Net Sales. Net sales for our reportable segments, excluding inter-segment sales, are summarized in the following table (in thousands):


Nine months ended September 30,	2024				2023				Dollar decrease		Percent decrease
Control Devices	$	230,186	33.3	%	$	267,406	35.8	%	$	(37,220)	(13.9)	%
Electronics	422,777		61.3		435,565		58.4		(12,788)		(2.9)	%
Stoneridge Brazil	37,084		5.4		43,332		5.8		(6,248)		(14.4)	%
Total net sales	$	690,047	100.0	%	$	746,303	100.0	%	$	(56,256)	(7.5)	%

Our Control Devices segment net sales decreased $37.2 million because of decreases in our North American automotive market of $44.0 million, including lower demand for electronic and hybrid vehicle platforms and the impact of expected end of life production for certain programs, as well as decreases in our China commercial vehicle market of $3.2 million. These decreases were offset by increases in our China automotive, North American commercial vehicle and off highway markets of $2.6 million, $2.1 million and $2.1 million, respectively. The decreases were also offset by negotiated price increases of $1.2 million. In addition, net sales for the nine months ended September 30, 2024 were impacted by unfavorable foreign currency translation of $0.7 million.

Our Electronics segment net sales decreased $12.8 million primarily due to the 2023 impacts of both lower required electronic component spot buy purchases of $14.2 million, a reduction in retroactive price increases of $2.6 million, as well as lower sales in our European off-highway vehicle and agricultural markets of $3.3 million and $3.1 million, respectively. Offsetting these decreases were higher sales volumes in our European and North American commercial vehicle markets of $4.7 million and $1.3 million, respectively. In addition, we experienced higher sales volumes in our North American off-highway vehicle market of $2.2 million and favorable euro and Swedish krona foreign currency translation of $1.8 million compared to the prior year.

Our Stoneridge Brazil segment net sales decreased because of lower sales of our OEM products, monitoring service fees and tracking devices offset by an increase in aftermarket product sales. In addition, net sales were adversely impacted by an increase in unfavorable foreign currency translation of $1.8 million.

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Net sales by geographic location are summarized in the following table (in thousands):


Nine months ended September 30,	2024				2023				Dollar decrease		Percent decrease
North America	$	349,025	50.6	%	$	385,813	51.7	%	$	(36,788)	(9.5)	%
South America	37,084		5.4		43,332		5.8		(6,248)		(14.4)	%
Europe and Other	303,938		44.0		317,158		42.5		(13,220)		(4.2)	%
Total net sales	$	690,047	100.0	%	$	746,303	100.0	%	$	(56,256)	(7.5)	%

The decrease in North American net sales was mostly attributable to decreases in sales volume in our automotive market of $44.1 million primarily caused by lower customer volumes including electronic and hybrid vehicle platforms and the impact of expected end of life production for certain programs as well as the 2023 impact of required electronic component spot buy purchases of $2.4 million. These decreases were offset by higher sales volume in our North American off-highway and commercial vehicle markets of $4.3 million and $3.2 million, respectively.

The decrease in net sales in South America was primarily due to lower sales of our OEM products, monitoring service fees and tracking devices offset by an increase in aftermarket products. In addition, net sales were adversely impacted by an increase in unfavorable foreign currency translation of $1.8 million.

The decrease in net sales in Europe and Other was due to 2023 required customer recoveries of electronic component spot buys of $11.7 million and the change in negotiated price increases of $1.5 million. In addition, we experienced decreases in our European off-highway and agriculture markets and China commercial vehicle markets of $3.3 million, $2.8 million and $2.8 million, respectively. These sales decreases were offset by increases in our European commercial vehicle market, including sales related to the launches of a European OEM MirrorEye program and our next generation tachograph, and China automotive markets of $4.8 million and $2.6 million, respectively, as well as favorable foreign currency translation of $1.1 million.

Cost of Goods Sold and Gross Margin. Cost of goods sold decreased compared to the nine months ended September 30, 2023 and our gross margin increased from 20.9% in the first nine months of 2023 to 21.2% in the first nine months of 2024. Our material cost as a percentage of net sales decreased from 59.6% in the first nine months of 2023 to 57.3% in the first nine months of 2024. The decrease in material cost percentage was partially due to the impact of 2023 required electronic component spot buy purchases, reimbursed by customers. The impact of these spot buy purchases increased cost of goods sold by $14.4 million, or 1.9% of sales, for the first nine months of 2023, which reduced gross margin percent by 0.4% in 2023. Other factors contributing to the reduction in material costs were favorable product mix, material cost improvements and a reduction in foreign exchange related material variances. Overhead as a percentage of net sales was 16.7% and 14.6% for the first nine months of 2024 and 2023, respectively. The increase in overhead as a percentage of sales was attributable to higher overhead spending including higher warranty related expense and capitalized software development cost amortization as well as adverse leverage from lower sales levels.

Our Control Devices segment gross margin increased primarily as a result of favorable sales mix despite lower sales levels.

Our Electronics segment gross margin remained consistent because of the reduction of the adverse effect of required electronic component spot buy purchases, net of customer recoveries, favorable sales mix, material cost improvement actions and a reduction in foreign exchange related material variances.

Our Stoneridge Brazil segment gross margin decreased primarily because of lower contribution on lower sales levels.

Selling, General and Administrative. SG&A expenses decreased by $2.6 million from a combination of lower consulting fees, business realignment costs and incentive compensation offset by higher self-insured medical costs and legal fees as well as a 2023 gain on the sale of fixed assets.

Design and Development. D&D costs decreased by $3.8 million from a reduction in launch activities that resulted in lower consulting, wages and recruiting being partially offset by lower capitalization of software development costs and customer reimbursements for our Electronics and Control Devices segments as well as higher Electronics business realignment costs.

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Operating Income. Operating income (loss) by segment is summarized in the following table (in thousands):


Nine months ended September 30,	2024		2023		Dollar increase / (decrease)		Percent increase / (decrease)
Control Devices	$	8,020	$	12,649	$	(4,629)	(36.6)	%
Electronics	20,434		16,491		3,943		23.9	%
Stoneridge Brazil	880		3,483		(2,603)		(74.7)	%
Unallocated corporate	(25,281)		(25,809)		528		2.0	%
Operating income	$	4,053	$	6,814	$	(2,761)	40.5	%

Our Control Devices segment operating income decreased because of lower contribution from lower sales and higher SG&A due to a 2023 gain on sale of fixed assets offset by lower D&D from lower customer reimbursements.

Our Electronics segment operating income increased primarily because of lower SG&A from lower business realignment costs and lower D&D from lower services spending offset by lower contribution from lower sales.

Our Stoneridge Brazil segment operating income decreased because of lower contribution from lower sales levels.

Our unallocated corporate operating loss decreased due to lower SG&A and D&D spending.

Operating income (loss) by geographic location is summarized in the following table (in thousands):


Nine months ended September 30,	2024		2023		Dollar increase (decrease)		Percent increase (decrease)
North America	$	(17,895)	$	(11,310)	$	(6,585)	(58.2)	%
South America	880		3,483		(2,603)		(74.7)	%
Europe and Other	21,068		14,641		6,427		43.9	%
Operating income	$	4,053	$	6,814	$	(2,761)	40.5	%

Our North American operating loss increased because of lower contribution margin from lower sales levels, higher overhead costs, higher share based compensation and a 2023 gain on disposal of fixed assets. Operating income in South America decreased because of lower contribution from lower sales levels. Our operating results in Europe and Other increased primarily because of lower direct material costs and SG&A and D&D spending offset by lower contribution from lower sales levels.

Interest Expense, net. Interest expense, net was $11.0 million and $9.2 million for the nine months ended September 30, 2024 and 2023, respectively. The increase was the result of higher outstanding Credit Facility balances.

Equity in Loss of Investee. Equity loss for Autotech Fund II was $1.1 million and $0.6 million for the nine months ended September 30, 2024 and 2023, respectively.

Other (Income) Expense, net. We record certain foreign currency transaction (gains) losses as a component of other (income) expense, net on the condensed consolidated statement of operations. Other (income) expense, net of $(0.6) million increased by $2.8 million compared to the first nine months of 2023 due to the impact of favorable foreign currency movements in our Electronics and Stoneridge Brazil segments from strengthening of the U.S. dollar.

Provision for Income Taxes. For the nine months ended September 30, 2024, income tax expense of $3.0 million was attributable to the mix of earnings among tax jurisdictions and tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. The effective tax rate of (40.2%) varies from the statutory tax rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings.

For the nine months ended September 30, 2023, income tax expense of $3.0 million was attributable to the mix of earnings among tax jurisdictions and U.S. taxes on foreign earnings offset by tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives. The effective tax rate of (59.1%) varies from the statutory tax rate primarily due to U.S. taxes on foreign earnings offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives.

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Liquidity and Capital Resources

Summary of Cash Flows:


Nine months ended September 30,	2024		2023
Net cash provided by (used for):
Operating activities	$	28,517	$	(5,668)
Investing activities	(18,997)		(26,943)
Financing activities	4,133		15,534
Effect of exchange rate changes on cash and cash equivalents	(356)		(963)
Net change in cash and cash equivalents	$	13,297	$	(18,040)

Cash provided by operating activities increased compared to 2023 primarily due to a reduction in cash used to support working capital levels. Cash provided by receivables was favorable to 2023 as the result of lower sales levels while collection terms remained consistent. Cash provided by inventory improved from the prior year due to the ramp up of product launches occurring in the second half of 2023 and first half of 2024, and the impact of our inventory reduction actions.

Net cash used for investing activities decreased compared to 2023 due to lower capital expenditures and capitalized software development costs as well as the 2023 impact of cash proceeds from the sale of equipment.

Net cash provided by financing activities decreased compared to 2023 due to a decrease in Credit Facility borrowings net of repayments.

As outlined in Note 7 to our condensed consolidated financial statements, the Credit Facility permits borrowing up to a maximum level of $275.0 million. This variable rate facility has an accordion feature which allows the Company to increase its availability by up to $150.0 million upon the satisfaction of certain conditions and lender consent through its expiration in November 2026. The Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio. The Credit Facility also contains affirmative and negative covenants and events of default that are customary for credit arrangements of this type including covenants that place restrictions and/or limitations on the Company’s ability to borrow money, make capital expenditures and pay dividends. The Credit Facility had an outstanding balance of $196.3 million at September 30, 2024.

The Company was in compliance with all covenants at September 30, 2024 and December 31, 2023. The Company has not experienced a violation that would limit the Company’s ability to borrow under the Credit Facility and does not expect that the covenants under it will restrict the Company’s financing flexibility. However, it is possible that future borrowing flexibility under the Credit Facility may be limited as a result of lower than expected financial performance due to the adverse impact of significantly lower global demand in our markets and challenging macroeconomic conditions. The Company expects to make additional repayments on the Credit Facility when cash exceeds the amount needed for operations and to remain in compliance with all covenants.

The Company’s wholly owned subsidiary located in Stockholm, Sweden, has an overdraft credit line that allows overdrafts on the subsidiary’s bank account up to a daily maximum level of 20.0 million Swedish krona, or $2.0 million at both September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 and December 31, 2023 there were no borrowings outstanding on this overdraft credit line. During the nine months ended September 30, 2024, the subsidiary borrowed and repaid 255.1 million Swedish krona, or $25.1 million.

The Company’s wholly owned subsidiary located in Suzhou, China, had lines of credit that matured in August 2024 and allowed up to a maximum borrowing level of 20.0 million Chinese yuan, or $2.8 million at December 31, 2023. At December 31, 2023 there was $2.1 million in borrowings outstanding on the Suzhou credit line. The Suzhou credit line was included on the condensed consolidated balance sheet within current portion of debt. In addition, the Suzhou subsidiary has a bank acceptance draft line of credit which facilitates the extension of trade payable payment terms by 180 days. The bank acceptance draft line of credit allows up to a maximum borrowing level of 60.0 million Chinese yuan, or $8.6 million and $8.5 million at September 30, 2024 and December 31, 2023, respectively. There was $0.0 million and $2.4 million utilized on the Suzhou bank acceptance draft line of credit at September 30, 2024 and December 31, 2023, respectively. The Suzhou bank acceptance draft line of credit is included on the condensed consolidated balance sheet within accounts payable.

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In December 2018, the Company entered into an agreement to make a $10.0 million investment in Autotech Fund II managed by Autotech, a venture capital firm focused on ground transportation technology. The Company’s $10.0 million investment in the Autotech Fund II will be contributed over the expected ten-year life of the fund. As of September 30, 2024, the Company’s cumulative investment in the Autotech Fund II was $8.7 million. The Company contributed $0.3 million and $0.2 million to Autotech Fund II during the nine months ended September 30, 2024 and September 30, 2023, respectively.

Our future results could also be adversely affected by unfavorable changes in foreign currency exchange rates. We have significant foreign denominated transaction exposure in certain locations, especially in Brazil, Argentina, Mexico, Sweden, Estonia, the Netherlands, United Kingdom and China. Currently, we have foreign currency forward contracts in place for Mexican pesos. See Note 5 to the condensed consolidated financial statements for additional details. Our future results could also be unfavorably affected by increased commodity prices and material cost inflation as these fluctuations impact the cost of our raw material purchases.

At September 30, 2024, we had a cash and cash equivalents balance of approximately $54.1 million, of which 79.9% was held in foreign locations. The Company has approximately $78.7 million of undrawn commitments under the Credit Facility as of September 30, 2024, which results in total undrawn commitments and cash balances of more than $132.8 million. However, it is possible that future borrowing flexibility under our Credit Facility may be limited as a result of our financial performance.

The principal sources of liquidity available for our future cash requirements are expected to be (i) cash flows from operations, (ii) cash and cash equivalents on hand and (iii) borrowings from our Credit Facility. We believe that our overall liquidity and operating cash flow will be sufficient to meet our anticipated cash requirements for capital expenditures, working capital and other commitments during the next twelve months. While uncertainty surrounding the current economic environment could adversely impact our business, based on our current financial position, we believe it is unlikely that any such effects would preclude us from maintaining sufficient liquidity.

Commitments and Contingencies

See Note 10 to the condensed consolidated financial statements for disclosures of the Company’s commitments and contingencies.

Seasonality

Our Control Devices and Electronics segments are moderately seasonal, impacted by mid-year and year-end shutdowns and the ramp-up of new model production at key customers. In addition, the demand for our Stoneridge Brazil segment consumer products is generally higher in the second half of the year.

Critical Accounting Policies and Estimates

The Company’s critical accounting policies, which include management’s best estimates and judgments, are included in Part II, Item 7, to the consolidated financial statements of the Company’s 2023 Form 10-K. These accounting policies are considered critical as disclosed in the Critical Accounting Policies and Estimates section of Management’s Discussion and Analysis of the Company’s 2023 Form 10-K because of the potential for a significant impact on the financial statements due to the inherent uncertainty in such estimates. There have been no material changes in our significant accounting policies or critical accounting estimates during the third quarter of 2024.

Information regarding other significant accounting policies is included in Note 2 to our consolidated financial statements in Item 8 of Part II of the Company’s 2023 Form 10-K.

International Presence

By operating internationally, we are affected by foreign currency exchange rates and the economic conditions of certain countries. Furthermore, given the current economic climate and fluctuations in certain commodity prices, we believe that an increase in such items could significantly affect our profitability. See Note 5 to the condensed consolidated financial statements for additional details on the Company’s foreign currency exchange rate and interest rate risks.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the quantitative and qualitative information about the Company’s market risk from those previously presented within Part II, Item 7A of the Company’s 2023 Form 10-K.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, 2024, an evaluation was performed under the supervision and with the participation of the Company’s management, including the principal executive officer (“PEO”) and principal financial officer (“PFO”), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s management, including the PEO and PFO, concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2024.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the three months ended September 30, 2024 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II–OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in certain legal actions and claims primarily arising in the ordinary course of business. We establish accruals for matters that we believe that losses are probable and can be reasonably estimated. Although it is not possible to predict with certainty the outcome of these matters, we do not believe that any of the litigation in which we are currently engaged, either individually or in the aggregate, will have a material adverse effect on our business, consolidated financial position or results of operations. We are subject to litigation regarding civil, labor, regulatory and other tax contingencies in our Stoneridge Brazil segment that we believe the likelihood of loss is reasonably possible, but not probable, although these claims might take years to resolve. We are also subject to product liability and product warranty claims. In addition, if any of our products prove to be defective, we may be required to participate in a government-imposed or customer OEM-instituted recall involving such products. There can be no assurance that we will not experience any material losses related to product liability, warranty or recall claims. See additional details of these matters in Note 10 to the condensed consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes with respect to risk factors previously disclosed in the Company’s 2023 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents information with respect to repurchases of Common Shares made by us during the three months ended September 30, 2024. There were 7,939 Common Shares delivered to us by employees as payment for withholding taxes due upon vesting of performance share awards and share unit awards.


Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
7/1/24-7/31/24	117	$	15.25	N/A	N/A
8/1/24-8/31/24	4,355	$	14.67	N/A	N/A
9/1/24-9/30/24	3,467	$	13.98	N/A	N/A
Total	7,939

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

During the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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Item 6. Exhibits


Exhibit Number	Exhibit

10.1	Employment Agreement, dated August 31, 2024, by and between Stoneridge, Inc. and Natalia Noblet, filed herewith.

31.1	Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

31.2	Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1	Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.2	Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

	101	XBRL Exhibits:

	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	104	The cover page from our Quarterly Report on Form 10-Q for the period ended September 30, 2024, filed with the Securities and Exchange Commission on October 30, 2024, is formatted in Inline Extensible Business Reporting Language (“iXBRL”)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


			STONERIDGE, INC.

Date: October 30, 2024			/s/ James Zizelman
			James Zizelman
			President, Chief Executive Officer and Director
			(Principal Executive Officer)

Date: October 30, 2024			/s/ Matthew R. Horvath
			Matthew R. Horvath
			Chief Financial Officer and Treasurer
			(Principal Financial Officer)



ARBEIDSOVEREENKOMST VAN ONBEPAALDE DUUR			EMPLOYMENT CONTRACT FOR AN INDEFINITE TERM

Deze arbeidsovereenkomst (de Arbeidsovereenkomst) is gesloten tussen:			This employment contract (the Employment Contract) is concluded between:

Stoneridge Electronics AB, met zetel te Gustav III:s Boulevard 26, 16973 Solna, Sweden, opgericht naar het recht van Zweden met ondernemingsnummer 556442-9388;			Stoneridge Electronics AB, having its seat at Gustav III:s Boulevard 26, 16973 Solna, Sweden, incorporated under the laws of Sweden under company number 556442-9388;

Vertegenwoordigd door James Zizelman, in de hoedanigheid van President and Chief Executive Officer of Stoneridge, Inc. and Chair of the Board of Directors of Stoneridge Electronics AB;			Represented by James Zizelman, in the capacity of President and Chief Executive Officer of Stoneridge, Inc. and Chair of the Board of Directors of Stoneridge Electronics AB;

Hierna de Werkgever of de Vennootschap genoemd;			Hereafter referred to as the Employer or the Company;

EN:			AND:

Mevrouw Natalia Noblet			Ms Natalia Noblet
wonende te [address];			domiciled at [address];

Hierna de Werknemer genoemd,			Hereafter referred to as the Employee,

Hierna gezamenlijk de Partijen genoemd en elk afzonderlijk een Partij.			Hereafter jointly referred to as the Parties and each individually as a Party.


WORDT HET VOLGENDE OVEREENGEKOMEN:			IT IS AGREED AS FOLLOWS:

Artikel 1.Functie en taken			Article 1.Function and tasks
1.1De Werkgever werft de Werknemer voltijds aan in de hoedanigheid van President van Stoneridge Electronics, geclassificeerd als een Section 16 Officer.			1.1The Employer hires the Employee on a full-time basis in the capacity of President of Stoneridge Electronics, classified as a Section 16 Officer.
1.2Partijen erkennen en aanvaarden dat het, gelet op de functie uitgeoefend door de Werknemer, onmogelijk is om een opsomming te geven van de taken van de Werknemer en dat alle taken die rechtstreeks of onrechtstreeks nuttig zijn voor de uitoefening van de functie deel uitmaken van de werkzaamheden van de Werknemer.			1.2Parties acknowledge and agree that, taking into account the function of the Employee, it is impossible to give an enumeration of the tasks of the Employee, and that all tasks directly or indirectly useful for the performance of the function, will be a part of the Employee’s tasks.
1.3De functie en taken van de Werknemer kunnen door de Werkgever worden aangepast om rekening te houden met de ontwikkeling van de Vennootschap en haar activiteiten. Partijen erkennen en aanvaarden dat, gezien de door de Werknemer uitgeoefende functie, flexibiliteit noodzakelijk is wat betreft de taken en verantwoordelijkheden. De Werknemer gaat ermee akkoord dat de Werkgever in functie van de noodwendigheden van de Vennootschap dienvolgens aan de Werknemer andere taken en verantwoordelijkheden kan opleggen voor zover deze verband houden met de kwalificaties of met de ervaring van de Werknemer en geen vermindering met zich brengen van het salaris waarop de Werknemer recht heeft.			1.3The function and tasks of the Employee can be adapted by the Employer in order to take into account the development of the Company and of its activities. Parties agree and accept that, taking into account the function of the Employee, flexibility with regard to the tasks and responsibilities is required. The Employee agrees that depending on the needs of the Employer, the Employer can therefore impose other tasks and responsibilities upon the Employee in so far as these are related to the qualifications or experience of the Employee, and do not result in a decrease of the remuneration the Employee is entitled to.

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1.4De Werknemer aanvaardt uitdrukkelijk dat geen enkele van de hiervoor bedoelde wijzigingen van de taken of verantwoordelijkheden door de Werkgever kan aanzien worden als zijnde een wijziging van een essentieel bestanddeel van de Arbeidsovereenkomst.			1.4The Employee explicitly accepts that the modifications of the tasks and responsibilities as mentioned above by the Employer cannot be considered as a modification of an essential feature of this Employment Contract.
1.5Partijen erkennen en aanvaarden uitdrukkelijk dat de Werknemer een leidinggevende functie of een vertrouwenspost bekleedt in de zin van het Koninklijk Besluit van 10 februari 1965 en dat de Werknemer bijgevolg niet is onderworpen aan de bepalingen van de wet van 16 maart 1971 betreffende de arbeidsduur. Uren die gepresteerd zouden worden bovenop of buiten het werkrooster dat van toepassing is voor de Werknemer zullen dus geen recht geven op de betaling van overuren en/of de toekenning van inhaalrust. Het hierna overeengekomen salaris waarop de Werknemer recht heeft, dekt alle prestaties.			1.5The Parties explicitly acknowledge and agree that the Employee is entrusted with managerial or supervisory functions in the sense of the Royal Decree of 10 February 1965 and that therefore, the Employee is not subject to the rules set out by the Labour Act of 16 March 1971 regarding working time. Work hours performed in addition to or after the regular working hours will therefore not grant any entitlement of payment of overtime pay and/or compensatory rest. The salary agreed upon below compensates all and any of the work and activities.

Artikel 2.Plaats van tewerkstelling			Article 2.Workplace
2.1Gelet op de door de Werknemer uitgeoefende functie, aanvaarden en erkennen de Partijen dat ook flexibiliteit is vereist wat betreft de plaats van tewerkstelling. De Werknemer gaat ermee akkoord om in principe de activiteiten onder deze Arbeidsovereenkomst uit te oefenen op haar woonplaats, maar tevens op elke andere plaats die door de Werkgever zal worden aangegeven.			2.1Given the Employee’s function, Parties accept and agree that flexibility with regard to the location of the workplace is required as well. The Employee agrees to perform the duties under this Employment Contract in principle at her home office, but also at any other location that will be indicated by the Employer.
2.2De Werknemer aanvaardt uitdrukkelijk dat de plaats van tewerkstelling geen essentieel bestanddeel is van de Arbeidsovereenkomst.			2.2The Employee explicitly accepts that the location of the workplace does not constitute an essential feature of the Employment Contract.

Artikel 3.Arbeidstijd			Article 1.Working time
3.1Gelet op de leidinggevende functie of vertrouwenspost van de Werknemer, zoals bedoeld in artikel 1.5 van de Arbeidsovereenkomst, zal zij de arbeidstijd verrichten die nodig is voor de goede uitoefening van haar functie en haar verantwoordelijkheden onder deze Arbeidsovereenkomst.			3.1Considering the Employee’s managerial or supervisory function, as referred to in Article 1.5 of the Employment Contract, she shall perform the working time that is required for the proper execution of her function and her responsibilities pursuant to this Employment Contract.
3.2Partijen komen overeen dat dit in beginsel minimum 38 uur tijdens “normale’ kantooruren zal bedragen.			3.2Parties agree that this shall in principle represent at least 38 hours during ‘regular’ business hours.

Artikel 4.Duur van de Arbeidsovereenkomst			Article 4.Duration of the Employment Contract
4.1De Werkgever neemt de Werknemer in dienst vanaf 2 september 2024.			4.1The Employer hires the Employee as from 2 September 2024.
4.2Deze Arbeidsovereenkomst wordt aangegaan voor onbepaalde duur.			4.2This Employment Contract is entered into for an indefinite period.
4.3Behoudens in geval van dringende reden, kan geen enkele Partij deze Arbeidsovereenkomst verbreken zonder geldige opzegging conform het Belgisch recht.			4.3Except in case of a gross misconduct, no Party can terminate this Employment Contract without a valid notice in accordance with the Belgian legislation.
4.4In geval van beëindiging van de Arbeidsovereenkomst door de Werkgever zal de			4.4In the event of termination of the Employment Contract by the Employer, the notice

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opzeggingstermijn 12 maanden bedragen, onder voorbehoud van gunstigere wettelijke bepalingen. In geval van beëindiging van de Arbeidsovereenkomst door de Werknemer zal de opzeggingstermijn 6 maanden bedragen.			period will be equal to 12 months, subject to more favourable legal provisions. In the event of termination of the Employment Contract by the Employee, the notice period will be equal to 6 months.
4.5De Werknemer komt in aanmerking voor deelname in het Executive Severance Plan, dat apart wordt overgemaakt en dat geldt onder voorbehoud van toepasselijk recht.			4.5The Employee is eligible to participate in the Executive Severance Plan, which will be provided separately and which will apply subject to applicable law.
4.6De Werknemer komt in aanmerking voor een Change In Control Agreement, die apart zal worden overgemaakt en die zal gelden onder voorbehoud van toepasselijk recht.			4.6The Employee is also eligible to a Change In Control Agreement, which will be provided separately and which will apply subject to applicable law.

Artikel 5.Salaris en vakantiegeld			Article 5.Salary and holiday pay
5.1Het bruto maandsalaris van de Werknemer bedraagt 27.729,86 EUR, maandelijks betaalbaar bij het verstrijken van elke maand door storting op de bankrekening die door de Werknemer aan de Werkgever zal worden aangeduid.			5.1The Employee’s gross fixed monthly salary amounts to EUR 27,729.86, payable on a monthly basis after the end of every month, by wire transfer to the bank account that will be indicated by the Employee to the Employer.
5.2De Werknemer komt in aanmerking voor een jaarlijkse herziening van haar basissalaris, met een eerste mogelijke herziening uiterlijk in januari 2025.			5.2The Employee is eligible to a review of her base salary on an annual basis, with a first potential review no later than January 2025.
5.3De Werknemer ontvangt tevens een dertiende maand, in overeenstemming met de toepasselijke wettelijke voorschriften.			5.3The Employee will also receive a thirteenth month payment, in accordance with the applicable legal provisions.
5.4De Werkgever zal eveneens het vakantiegeld betalen, berekend overeenkomstig het Belgisch recht.			5.4The Employer will also pay the holiday pay, calculated in accordance with Belgian law.
5.5Het totale bruto basisjaarloon van de Werknemer (maandloon, dertiende maand en vakantiegeld) bedraagt bijgevolg 386.000 EUR.			5.5The Employee’s total gross annual base salary (monthly salary, thirteenth month and holiday pay) is therefore equal to EUR 386,000.
5.6De brutobedragen zullen worden betaald na aftrek van de sociale en fiscale lasten, persoonlijke bijdragen in de groepsverzekering zoals voorzien in Artikel 8, en eventueel van andere wettelijke inhoudingen.			5.6The gross amounts will be paid after deduction of social security contributions, income tax, personal contributions to the group insurance referred to in Article 8, and other possible legal withholdings.
5.7De Werknemer heeft recht op 20 betaalde vakantiedagen per jaar, vastgesteld overeenkomstig de toepasselijke wettelijke bepalingen.			5.7The Employee is entitled to 20 paid holidays per year, determined according to the applicable legal provisions.
5.8Daarnaast heeft de Werknemer recht op 5 extralegale vakantiedagen per jaar.			5.8In addition, the Employee is entitled to 5 extra-legal holidays per year.
5.9Die vakantiedagen moeten worden opgenomen op in gezamenlijk overleg vastgestelde tijdstippen, rekening houdende met de belangen van de Werkgever. Niet-opgenomen vakantiedagen kunnen niet worden overgedragen naar een volgend kalenderjaar. Vanaf de indiensttreding heeft de Werknemer recht op volledige toekenning van betaalde vakantiedagen zoals vermeld in dit artikel 5. De betaalde vakantiedagen voor 2024 worden pro rata toegekend. In 2025 en daarna jaarlijks heeft de Werknemer recht op 20 betaalde vakantiedagen per			5.9Holidays must be taken on days that have been determined during joint consultation, taking into account the interests of the Employer. Holidays that are not taken cannot be carried over to the next calendar year. As from the start of employment, the Employee has the right to full allocation of paid holidays as stated in this Article 5. 2024 paid holidays will be allocated on a pro rata basis. 2025 and annually thereafter, Employee is entitled to 20 paid holidays per year per Article 5.7 and 5 extra-legal holidays per year per Article 5.8.

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jaar overeenkomstig artikel 5.7 en op 5 extralegale vakantiedagen per jaar overeenkomstig artikel 5.8.

Artikel 6.Maaltijdcheques en ecocheques			Article 6.Meal vouchers and eco vouchers
6.1De Werknemer is gerechtigd op een maaltijdcheque per effectief gepresteerde werkdag. De tussenkomst van de Werkgever bedraagt 6.91 EUR per maaltijdcheque en de tussenkomst van de Werknemer bedraagt 1.09 EUR per maaltijdcheque voor elke effectief gepresteerde werkdag.			6.1The Employee is entitled to a meal voucher per working day effectively completed. The Employer’s contribution amounts to EUR 6.91 and the Employee’s contribution amounts to EUR 1.09 per meal voucher for each working day effectively completed.
6.2De Werknemer is gerechtigd op ecocheques overeenkomstig de toepasselijke sector-CAO.			6.2The Employee is entitled to eco vouchers, in accordance with the applicable industry-wide CBA.

Artikel 7.Bonus, premies en voordelen			Article 7.Bonuses, premiums and benefits
7.1De Werknemer komt in aanmerking voor een eenmalige tekenbonus (“sign-on” bonus) van 150.000 EUR, betaalbaar één jaar na de startdatum zoals bedoeld in artikel 4.1 van deze Arbeidsovereenkomst en op voorwaarde dat zij gedurende minstens 12 maanden na ontvangst ervan in dienst blijft van de Vennootschap. Indien de Werknemer de Vennootschap vrijwillig verlaat binnen 12 maanden na ontvangst van de sign-on bonus, verbindt de Werknemer zich er toe om 100% van de sign-on bonus terug te betalen.			7.1The Employee is eligible for a one-time sign-on bonus equal to an amount of EUR 150,000, to be paid in one lump sum one year after the start date as referred to in Article 4.1 of this Employment Contract and provided that the Employee stays in service of the Company for a period of at least 12 months from receipt of this sign-on bonus. Should the Employee voluntarily leave the Company within 12 months of receiving the sign-on bonus, the Employee agrees to 100% repayment of the sign-on bonus.
7.2De Werknemer komt in aanmerking om deel te nemen aan een Annual Incentive Plan (AIP) tegen een target van 60% van haar jaarlijkse brutosalaris (basissalaris zoals bedoeld in artikel 5.1 van deze Arbeidsovereenkomst x 13,92). De AIP biedt de mogelijkheid om een bonus te verdienen tussen 50% en 200% van de target, gebaseerd op prestaties van de Vennootschap en individuele prestaties. De voorwaarden tot het bekomen ervan zullen worden vastgelegd in de AIP. De Werknemer komt in aanmerking om deel te nemen aan het AIP 2024, pro rata vanaf haar startdatum zoals bedoeld in artikel 4.1 van deze Arbeidsovereenkomst, met uitbetaling in maart 2025.			7.2The Employee is eligible to participate in an Annual Incentive Plan (AIP) at a target of 60% of her annual gross salary (base salary as referred to in Article 5.1 of this Employment Contract x 13.92). The AIP shall provide the opportunity to earn a bonus ranging from 50% to 200% of Target, based on Company and individual performance. The conditions to be fulfilled in order to obtain such bonus will be determined in the AIP. The Employee will be eligible to participate in the 2024 AIP, prorated as of her start date as referred to in Article 4.1 of this Employment Contract, with payout in March 2025.
7.3De Werknemer komt in aanmerking om deel te nemen aan een Long-Term Incentive Plan (LTIP) tegen een target van 60% van haar jaarlijkse brutosalaris (basissalaris zoals bedoeld in artikel 5.1 van deze Arbeidsovereenkomst x 13,92). LTIP-toekenningen worden gedaan naar goeddunken van het Compensation Committee van de Raad van Bestuur van Stoneridge en worden doorgaans goedgekeurd in het eerste kwartaal van elk kalenderjaar. De voorwaarden tot het bekomen ervan zullen worden vastgelegd in de LTIP. De Werknemer komt in aanmerking om deel te nemen aan het LTIP vanaf 2024, pro rata vanaf haar startdatum zoals bedoeld in artikel 4.1 van deze Arbeidsovereenkomst, met uitbetaling in maart 2025.			7.3The Employee is eligible to participate in a Long-Term Incentive Plan (LTIP) at a target of 60% of her annual gross salary (i.e., base salary as referred to in Article 5.1 of this Employment Contract x 13.92). LTIP awards are made at the discretion of the Compensation Committee of the Stoneridge Board of Directors and are typically approved during the first quarter of each calendar year. The conditions to be fulfilled in order to obtain such award will be determined in the LTIP. The Employee will be eligible to participate in the LTIP as from 2024, prorated as of her start date as referred to in Article 4.1 of this Employment Contract, with pay-out in March 2025.

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7.4De Werknemer komt in aanmerking voor een Special Equity Grant van tijdgebonden Stoneridge aandelen ter waarde van 150.000$, toe te kennen binnen één (1) week na de startdatum zoals bedoeld in artikel 4.1 van deze Arbeidsovereenkomst en die verworven zal zijn (zal “vesten”) twee (2) jaar na de toekenningsdatum op voorwaarde dat de Werknemer op die datum nog in dienst zal zijn van de Vennootschap.			7.4The Employee will be eligible for a Special Equity Grant of time-based Stoneridge shares equivalent to USD $150,000, to be granted within one (1) week of the start date as referred to in Article 4.1 of this Employment Contract and to vest two (2) years from the grant date provided that the Employee will on that date still be in service of the Company.
7.5Partijen komen overeen dat gratificaties, premies of welke andere voordelen met inbegrip van de bonus bedoeld in dit artikel, andere dan degene voorzien door wettelijke of reglementaire bepalingen, door de Werkgever onder welke vorm of benaming dan ook occasioneel of op het einde van het jaar toegekend, enkel een vrijgevigheid zijn en aan de Werknemer geen enkel recht toekennen voor de toekomst en dit zelfs niet als ze op regelmatige basis worden toegekend. Hun toekenning kan dus door de Werkgever op elk ogenblik worden gewijzigd, geschorst of afgeschaft.			7.5Parties agree that all gratifications, premiums or any other benefits including the bonus mentioned in this article, other than those provided for in statutory law or regulations, granted by the Employer in any form or under any name whatsoever, occasionally or at the end of the year, constitute a mere gift. They do not entail any future right for the Employee and this even if they have been granted on a regular basis. The Employer may therefore alter, suspend or stop their allocation at any time.
7.6Onder voorbehoud van andersluidende bepalingen van dwingend recht, zijn alle gratificaties, premies, bonussen of voordelen niet pro rata temporis betaalbaar.			7.6Unless provided otherwise by mandatory statutory law, none of the above-mentioned gratifications, premiums, bonuses or benefits are payable pro rata.
De Werknemer zal slechts recht hebben op deze gratificaties, premies, bonussen of voordelen en toekenningen die onderhavig zijn aan een “vesting”mechanisme zullen slechts verworven worden, op voorwaarde dat de Werknemer in dienst is van de Werkgever op het ogenblik waarop ze normaal betaalbaar zijn of, volgens een “vesting”mechanisme verworven worden. Partijen komen uitdrukkelijk overeen dat deze voorwaarde een opschortende voorwaarde uitmaakt in de zin van artikel 5.139 en volgenden van het Burgerlijk Wetboek.			The Employee will only be entitled to these gratifications, premiums, bonuses or benefits, and grants that are subject to a vesting mechanism shall only vest, provided that the Employee is in service of the Employer on the date on which they shall normally be payable or on which they shall normally vest. Parties explicitly agree that this condition constitutes a condition precedent within the meaning of Article 5.139 and following of the Civil Code.

Artikel 8.1Groeps- en hospitalisatieverzekering			Article 8.Group and hospitalisation insurance
8.1De Werknemer is gerechtigd op deelname in een hospitalisatieverzekering conform de overeenkomst gesloten tussen de Werkgever en de verzekeraar. De werknemer krijgt een vergoeding voor de aanvullende ziektekostenverzekering in termen van ziekenhuisopname en poliklinische medische kosten.			8.1The Employee is entitled to participation in hospitalisation insurance in accordance with the agreement entered into by the Employer and the insurance company. The employee will be reimbursed for the complementary medical insurance in terms of hospitalization and outpatient medical expenses.
8.2De Werknemer verder ook gerechtigd op deelname in een groepsverzekering (aanvullend pensioenplan), met overlijdensdekking, conform de overeenkomst gesloten tussen de Werkgever en de verzekeraar.			8.2The Employee is furthermore also entitled to participation in a group insurance (complementary pension plan), including coverage for death-in-service, in accordance with the agreement entered into by the Employer and the insurance company.
Partijen komen overeen dat deze dergelijk aanvullend pensioenplan zal worden gefinancierd door werkgeversbijdragen ten belope van 9% van het bruto basisloon van de Werknemer zoals voorzien in Artikel 5.1 en van 4,5% van de bonusbedragen waarop de			Parties agree that such complementary pension plan will be financed by employer contributions at a rate of 9% of the Employee’s gross base salary referred to in Article 5.1 and 4.5% of the Employee’s gross bonus amounts that the Employee would become entitled to

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Werknemer overeenkomstig Artikels 7.2 recht zou hebben, alsook door persoonlijke werknemersbijdrage ten belope van 1% van het bruto basisloon van de Werknemer zoals voorzien in Artikel 5.1.			pursuant to Articles 7.2, as well as by employee contributions at a rate of 1% of the Employee’s gross base salary referred to in Article 5.1.
8.3De Werknemer gaat ermee akkoord dat haar persoonlijke bijdragen zoals voorzien in Artikel 8.2 hierboven zullen worden ingehouden op het basisloon dat haar wordt uitbetaald.			8.3The Employee agrees that her personal contributions referred to in Article 8.2 above will be withheld from the base salary that is paid out to her.

Artikel 9.Smartphone en laptop			Article 9.Smartphone and laptop
9.1De Werkgever stelt een smartphone ter beschikking van de Werknemer.			9.1The Employer will provide a mobile phone to the Employee.
De Werknemer mag deze smartphone ook aanwenden voor persoonlijke doeleinden. Het voordeel in natura dat voortvloeit uit het privégebruik van de smartphone wordt forfaitair bepaald op jaarbasis conform de van toepassing zijnde sociale zekerheidswetgeving.			The Employee may also use this mobile phone for private purposes. The benefit in kind resulting from the private use of the mobile phone is determined yearly on a lump-sum basis in accordance with the applicable social security legislation.
9.2De Werkgever stelt de Werknemer eveneens een laptop ter beschikking die de Werknemer mag aanwenden voor persoonlijke doeleinden. Het voordeel in natura dat voortvloeit uit dit privégebruik wordt forfaitair bepaald op jaarbasis conform de van toepassing zijnde sociale zekerheidswetgeving.			9.2The Employer will also provide a laptop to the Employee, which the Employee may use for private purposes. The benefit in kind resulting from this private use is determined yearly on a lump-sum basis in accordance with the applicable social security legislation.
9.3De Werknemer verbindt zich ertoe de smartphone en de laptop die door de Werkgever ter beschikking worden gesteld, te gebruiken als een goede huisvader.			9.3The Employee undertakes to use the mobile phone and laptop, which have been made available by the Employer with due care and prudence.

Artikel 10.Bedrijfswagen			Article 10.Company car

De Werknemer heeft recht op een maandelijkse vergoeding van 2.500 EUR netto, bedoeld om een wagen, de verzekering daarvan en alle andere mogelijke gerelateerde kosten te dekken.			The Employee is entitled to a monthly car allowance of EUR 2,500 net, intended to cover a vehicle, its insurance and all other potential vehicle-related expenses.

Artikel 11.Belastingvoorbereiding ondersteuning			Article 11.Tax preparation support
De Vennootschap zal ondersteuning bij belastingvoorbereiding door een boekhouder of een fiscaal adviseur financieren gedurende drie jaar vanaf de start datum zoals bedoeld in Artikel 4.1. van deze Arbeidsovereenkomst. De facturen van de desbetreffende boekhouder of fiscaal adviseur dienen rechtstreek aan de Vennootschap gericht en verzonden te worden. De Vennootschap verbindt zich ertoe om, bij het aflopen van deze driejarige periode en in overleg met de Werknemer, na te gaan en te heroverwegen of aanvullende ondersteuning nodig is na deze driejarige periode.			The Company will finance tax preparation support by an accountant or a tax consultant three years as of the start date as referred to in Article 4.1 of this Employment Contract. Invoices from the relevant accountant or tax consultant shall be addressed and sent directly to the Company. The Company undertakes to review and consider, upon expiration of this three-year period and in consultation with the Employee, whether any additional support will be needed after that three-year period.

Artikel 12.Schoolkosten			Article 12.Company-paid education
De Werkgever verbindt zich er toe om zodra de echtgenoot van de Werknemer het recht op terugbetaling van schoolkosten verliest, te voorzien in			The Employer undertakes, if the Employee's spouse loses the right to reimbursement of education expenses, to provide a reimbursement of these

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een terugbetaling van deze schoolkosten ten belope van 50% van de totale schoolkost zolang hun twee kinderen in de middelbare school zijn ingeschreven. In voorkomend geval verbindt de Werknemer zich er toe om het bewijs voor te leggen dat haar echtgenoot dit recht op terugbetaling verloren is en om de nodige rechtvaardigingsstukken over te maken.			education expenses for a maximum amount of 50% of the total education cost as long as their two children are enrolled in secondary school. In this event, the Employee undertakes to provide evidence that her spouse has lost this right to reimbursement and to produce the necessary supporting documents.

Artikel 13.Onkosten			Article 13.Expenses
13.1De kosten die de Werknemer maakt bij de uitvoering van onderhavige Arbeidsovereenkomst worden door de Werkgever terugbetaald mits voorlegging van de rechtvaardigingsstukken, voor zover deze kosten vooraf door de Werkgever werden goedgekeurd.			13.1The expenses the Employee incurs whilst performing the present Employment Contract will be reimbursed by the Employer upon presentation of supporting documents, to the extent that these costs have been approved in advance.
13.2De Werkgever zal aan de Werknemer maandelijks een forfaitaire onkostenvergoeding van 150 EUR betalen als vergoeding voor de kosten die verbonden zijn aan de door hem te verrichten huisarbeid.			13.2The Employer will pay the Employee a monthly cost allowance of EUR 150 as reimbursement for the costs incurred in relation to the home office work to be performed by the Employee.
13.3Alle zakelijke verplaatsingen met Brussel als vertrekpunt worden door de Vennootschap terugbetaald mits voorlegging van de rechtvaardigingsstukken.			13.3All reasonable business travel with Brussels as a starting point will be reimbursed by the Company upon presentation of supporting documents.
13.4Aangezien bovengenoemde vergoedingen een vergoeding uitmaakt voor werkelijk gemaakte kosten, kunnen deze nooit worden beschouwd als onderdeel van het salaris van de Werknemer.			13.4Since the above-mentioned compensation constitute compensation for expenses actually incurred, they can never be considered as part of the Employee’s salary.
Artikel 14.Arbeidsongeschiktheid			Article 14.Work incapacity
14.1In geval van arbeidsongeschiktheid wegens ongeval of ziekte, is de Werknemer ertoe gehouden de Werkgever onmiddellijk op de hoogte te brengen of te laten brengen en hem een medisch attest voor te leggen of te laten voorleggen binnen de twee werkdagen vanaf de aanvang van de periode van arbeidsongeschiktheid.			14.1If the Employee is not able to work because of an illness or an accident, the Employee must immediately inform the Employer or have the Employer informed. The Employee must submit or have submitted a medical certificate within two working days following the first day of the incapacity.
14.2Het medisch attest moet de datum aanduiden waarop de arbeidsongeschiktheid aanving, de vermoedelijke duur van de afwezigheid opgeven en vermelden of het verlaten van de woonst of het verblijf al dan niet is toegestaan. In geval de arbeidsongeschiktheid voortduurt, moet de Werknemer zonder verwijl en uiterlijk binnen de twee werkdagen volgend op de verlenging van de arbeidsongeschiktheid een nieuw medisch attest verschaffen of laten verschaffen aan de Werkgever. Indien de Werkgever niet is ingelicht of bij het niet (tijdig) bezorgen of laten bezorgen van het medisch attest, verliest de Werknemer het recht op het behoud van het loon voor de dagen van ongeschiktheid voorafgaand aan de datum waarop de Werkgever is ingelicht of het attest hem werd afgegeven en dit alles onder voor behoud van alle andere rechten van de Werkgever.			14.2The medical certificate must mention the date on which the industrial disability begun, the probable duration of the absence and whether the Employee is allowed to leave their residence or not. In the case the work incapacity persists, the Employee must immediately and at the latest within the two working days following the extension of the industrial disability submit or have submitted a new medical certificate to the Employer. If the Employer has not been informed or in case the medical certificate has not been provided (timely), the Employee loses the entitlement to the guaranteed salary for the days of the work incapacity preceding the date on which the Employer was informed or provided with the medical certificate, without prejudice to any rights of the Employer.

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14.3In geval van arbeidsongeschiktheid stemt de Werknemer ermee in zich te onderwerpen aan een medisch onderzoek door de door de Werkgever aangewezen geneesheer. Op verzoek, en zolang de arbeidsongeschiktheid dit niet verhindert, zal de Werknemer zich naar het kantoor van de controlerend geneesheer begeven.			14.3In the event of work incapacity, the Employee agrees to undergo a medical examination by the medical physician appointed by the Employer. Upon request, and as long as the work incapacity does not prevent it, the Employee will go to the office of the medical officer.

Artikel 15.Vertrouwelijkheid			Article 15.Confidentiality
15.1De Werknemer erkent dat alle gegevens, knowhow, formules, samenstellingen, werkwijzen, documenten, studies, schema’s, foto’s, plannen, grafische voorstellingen, tekeningen, specificaties, uitrustingen, stalen, rapporten, klantenlijsten, informatie betreffende klanten, prijzen, ontdekkingen, onderzoeksresultaten of testresultaten, uitvindingen, en elke andere informatie van welke aard ook die aan de Werknemer in het kader van onderhavige Arbeidsovereenkomst of naar aanleiding ervan zal onthuld worden door de Werkgever of door enige andere vennootschap van de groep waartoe de Werkgever behoort, een vertrouwelijk karakter hebben (Vertrouwelijke Informatie).			15.1The Employee acknowledges that any information, knowhow, formulas, compositions, methods, documents, studies, flowcharts, photos, plans, graphical presentations, drawings, specifications, material, examples, reports, client lists, information regarding clients, prices, discoveries, research results or test results, inventions and any other information of any kind that the Employer or a company that belongs to the same group of companies as the Employer would reveal to the Employee in the framework of or because of this Employment Contract is confidential (Confidential Information).
15.2De Werknemer erkent dat de Vertrouwelijke Informatie een grote waarde heeft voor de Werkgever en/of voor de vennootschappen van de groep waartoe de Werkgever behoort.			15.2The Employee acknowledges that the Confidential Information is of great value to the Employer and/or for the companies of the group the Employer belongs to.
15.3Worden niet als Vertrouwelijke Informatie beschouwd, alle informatie waarvan de Werknemer kan bewijzen:			15.3The following are not deemed Confidential Information, if all information of which the Employee can prove is:
-dat zij reeds publiek bekend was vóór de Werkgever ze ter kennis van de Werknemer bracht;			-information that was already public knowledge before the Employer provided the Employee with that information;
-dat zij openbaar bekend is geraakt zonder tussenkomst of nalatigheid van de Werknemer, nadat de Werkgever haar aan de Werknemer heeft onthuld; en/of			-information that became public without the involvement or the negligence of the Employee, after the Employer revealed the information to the Employee; and/or
-dat zij in het bezit was van de Werknemer op het moment dat ze aan de Werknemer bekend werd gemaakt door de Werkgever.			-information that was already held by the Employee when the Employer revealed it to the Employee.
15.4De Werknemer verbindt zich ertoe elke Vertrouwelijke Informatie als strikt vertrouwelijk te beschouwen en te houden en ze noch te onthullen, noch ter beschikking van derden te stellen zonder voorafgaand schriftelijk akkoord van de Werkgever. De Werknemer zal de Vertrouwelijke Informatie uitsluitend gebruiken binnen het kader van de uitvoering van de Arbeidsovereenkomst voor de Werkgever en zal deze informatie niet meer gebruiken vanaf het moment dat de Arbeidsovereenkomst een einde neemt.			15.4The Employee undertakes to consider all Confidential Information as confidential and to keep it that way and not to reveal it nor make it available to third parties, without the Employer’s prior written consent. The Employee will only use the Confidential Information within the framework of the performance of the Employment Contract with the Employer and will not continue to use this information after the termination of this Employment Contract.
15.5Onverminderd wat voorafgaat, en in het algemeen, zal de Werknemer zich onthouden van het onthullen of het gebruiken, in diens eigen voordeel of ten voordele van derden, van elke professionele informatie die verband houdt met de Werkgever en			15.5Without prejudice to the foregoing, and in general, the Employee will refrain from disclosing or using, for their own benefit or for the benefit of a third party, any piece of professional information related to the Employer which the Employee has learned of

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waarvan de Werknemer op de hoogte is via de uitvoering van zijn professionele activiteit en waarvan het onthullen of het gebruik niet gerechtvaardigd wordt door de noodwendigheden die verband houden met de uitvoering van deze Arbeidsovereenkomst.			whilst carrying out his professional activity and whose disclosure or use is not justified by the necessities related to the performance of this Employment Contract to the advantage of the Employer.
15.6Bij schending van dit artikel is de Werknemer aan de Werkgever zonder verwijl, van rechtswege en zonder ingebrekestelling een vergoeding van 15.000 EUR per begane inbreuk verschuldigd, onverminderd het recht van de Werkgever om algehele vergoeding te vorderen van de door hem geleden schade.			15.6In case of breach of this article, the Employee will immediately, automatically and without any need of a formal notice, be held to pay the Employer an indemnity of EUR 15,000 for each infringement, without prejudice to the Employer’s right to claim total compensation to cover the incurred damage.
15.7Partijen komen overeen dat elke schending van enige verplichting opgenomen in dit artikel, bovendien geldig door de Werkgever kan worden beschouwd als een dringende reden die de onmiddellijke beëindiging van de Arbeidsovereenkomst rechtvaardigt zonder opzeggingsvergoeding.			15.7Parties agree that any breach to any obligation set out in this article can moreover be validly considered by the Employer as a gross misconduct justifying an immediate termination of this Employment Contract without payment in lieu of notice.
15.8De Werknemer erkent dat de verplichtingen opgenomen in dit artikel eveneens van toepassing zijn op iedere vorm van informatie die toebehoort aan klanten, leveranciers, andere zakenrelaties van de Werkgever, of aan derden die deze informatie zouden overhandigd, onthuld, of toevertrouwd hebben aan de Werkgever of aan de Werknemer.			15.8The Employee acknowledges that the obligations set out in this article are equally applicable to all forms of information belonging to clients, suppliers, to the Employer’s other business relations, or third parties that presented, revealed or confided information to the Employer or Employee.

Artikel 16.Niet-afwerving			Article 16.Non poaching
16.1Het is de Werknemer verboden gedurende de gehele duur van de Arbeidsovereenkomst, alsmede tijdens een periode van 12 maanden na de beëindiging ervan, om welke reden en op welke wijze ook, hetzij rechtstreeks, hetzij onrechtstreeks, personeel van de Werkgever of van met de Werkgever verbonden vennootschappen af te werven of te vragen, ertoe aan te zetten of trachten over te halen om hun arbeidsovereenkomst geheel of gedeeltelijk te beëindigen en rechtstreeks of onrechtstreeks in welke hoedanigheid dan ook prestaties te leveren voor de Werknemer of voor wie dan ook.			16.1During this Employment Contract as well as during a period of 12 months following its termination, for whatever reason and in whatever way, the Employee is prohibited from, either directly or indirectly, enticing any personnel of the Employer or of any companies of the group the Employer belongs to away. Furthermore, the Employee undertakes not to solicit, to instigate or to try to persuade any of said personnel to terminate their employment contract completely or partially and to perform services in whatever capacity, directly or indirectly, for the Employee or any other person.
16.2Bij overtreding van de in dit artikel omschreven verbintenis is de Werknemer aan de Werkgever zonder verwijl, van rechtswege en zonder ingebrekestelling 15.000 EUR per begane inbreuk verschuldigd, onverminderd het recht van de Werkgever om algehele vergoeding te vorderen van de door hem geleden schade.			16.2In case of violation of the obligation mentioned in this article, the Employee will immediately, automatically and without any need of prior warning, owe an indemnity of EUR 15,000 for each infringement, without prejudice to the right of the Employer to claim total indemnification for the damage incurred.

Artikel 17.Niet-concurrentiebeding			Article 17.Non-compete clause
17.1Onderhavig niet-concurrentiebeding wordt afgesloten in toepassing van artikel 86, §2 van de Wet van 3 juli 1978 en de CAO nr. 1 bis van 21 december 1978.			17.1The present non-compete clause is entered into in accordance with Article 86, §2 of the Act of 3 July 1978 and the CBA no. 1bis of 21 December 1978.
17.2Het is de Werknemer verboden na de beëindiging van de Arbeidsovereenkomst gedurende een periode van 12 maanden, een activiteit uit te oefenen die gelijkaardig is met deze uitgeoefend in			17.2The Employee undertakes not to carry out any activity similar to the activity exercised in the framework of the Employment Contract for a period of 12 months after the termination thereof, be it by

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het kader van de arbeidsrelatie onder de onderhavige Arbeidsovereenkomst, hetzij door exploitatie van een persoonlijke concurrerende onderneming, hetzij door zich ten dienste te stellen bij een concurrerende werkgever (zoals, maar niet beperkt tot, de volgende bedrijven: Continental, Bosch, Mekra Lang, CTS Corporation, GHSP, Kongsberg Automotive, ZF Friedrichshafen AG, Motherson Sumi Systems, Ficosa Corporation, Magna International Inc., Clarience Technologies, Methode Electronics Inc., Gentex Corporation, enz.) en zo de mogelijkheid te hebben nadeel te berokkenen aan de Werkgever door voor zichzelf of ten voordele van een concurrent van de Werkgever bijzondere kennis aan te wenden die opgedaan werd in het kader van de arbeidsrelatie, beheerst door de onderhavige Arbeidsovereenkomst.			operating a personal competing business, or by providing services to a competing employer (such as but not limited to the following companies: Continental, Bosch, Mekra Lang, CTS Corporation, GHSP, Kongsberg Automotive, ZF Friedrichshafen AG, Motherson Sumi Systems, Ficosa Corporation, Magna International Inc., Clarience Technologies, Methode Electronics Inc., Gentex Corporation, etc.) and thereby possibly harming the Employer by using for her own purposes or for the purposes of a competitor of the Employer the special knowledge acquired whilst carrying out this Employment Contract.
17.3Dit niet-concurrentiebeding zal toepasselijk zijn in België, Zweden, Estland, Nederland, Duitsland, Frankrijk, Spanje, Groot-Brittannië, Ierland, Zuid-Korea, China, Luxemburg, Mexico, Brazilië en de Verenigde Staten.			17.3This present non-compete clause will be applicable in Belgium, Sweden, Estonia, the Netherlands, Germany, France, Spain, the UK, Ireland, South Korea, China, Luxembourg, Mexico, Brazil, and the United States.
17.4Dit niet-concurrentiebeding zal zonder uitwerking blijven indien een einde wordt gesteld aan de Arbeidsovereenkomst door de Werknemer wegens dringende reden in hoofde van de Werkgever.			17.4This present non-compete clause will be of no effect if the Employment Contract is terminated by the Employee for gross misconduct of the Employer.
17.5De Werkgever zal gehouden zijn tot het betalen van een forfaitaire vergoeding gelijk aan de helft van de bruto maandloon overeenstemmend met de duur van het niet-concurrentiebeding, in dit geval een vergoeding overeenstemmend met 6 maanden brutoloon, betaald in de loop van de maand volgend op het einde van de huidige Arbeidsovereenkomst.			17.5The Employer will be held to pay a lump-sum indemnity equal to half of the gross salary corresponding to the duration of the non-compete clause, in this case an indemnity corresponding to 6 months gross salary, paid during the month following the end of the present Employment Contract.
17.6In geval van niet nakoming van het niet concurrentiebeding door de Werknemer, zal deze laatste gehouden zijn aan de Werkgever de vergoeding terug te betalen die de Werknemer ontvangen zou hebben en zal de Werknemer daarenboven aan de Werkgever een bedrag dienen te betalen gelijk aan het bedrag van de vergoeding, dit alles onder voorbehoud van de rechten van de Werkgever om de volledige schadevergoeding te vorderen.			17.6In case of violation of the non-compete clause by the Employee, the latter will be held to reimburse the indemnity the Employee received from the Employer to the latter and pay the Employer an amount equal to this indemnity, without prejudice to the right of the Employer to claim total indemnification.
17.7Het niet-concurrentiebeding zal geen toepassing vinden en de Werkgever zal dus niet gehouden zijn deze niet-concurrentievergoeding te betalen indien hij binnen een periode van 15 dagen na de stopzetting van de Arbeidsovereenkomst uitdrukkelijk aan de toepassing van dit niet-concurrentiebeding verzaakt.			17.7The non-compete clause will not apply, and the Employer will therefore not be obliged to pay the aforementioned non-compete indemnity, if he explicitly waives, within a period of 15 days after the termination of the Employment Contract.

Artikel 18.Bedrijfseigendom			Article 18.Business property
18.1De Werknemer dient zorg te dragen voor de documenten, voorwerpen, en in het algemeen, de werkinstrumenten en het materiaal dat de Werkgever ter beschikking stelt. De Werknemer zal deze in goede staat onderhouden.			18.1The Employee must take care of the documents, objects, and in general, tools and material that the Employer makes available. The Employee shall maintain them in good condition.

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18.2De Werknemer verbindt zich ertoe op het eerste verzoek van de Werkgever, en ten laatste op het moment waarop de Arbeidsovereenkomst een einde neemt om welke reden ook, onmiddellijk aan de Werkgever alle documenten en voorwerpen die toebehoren aan de Werkgever of aan een vennootschap van de groep waartoe de Werkgever behoort, terug te bezorgen zonder hiervan een kopie te behouden.			18.2Upon the Employer’s first request, and at the latest when the Employment Contract terminates for whatever reason, the Employee commits to immediately return to the Employer, without keeping any copy, all documents and objects that belong either to the Employer or to a company of the group the Employer belongs to.
18.3Tevens moeten alle documenten, correspondentie, gegevensbestanden, informaticaprogramma’s of andere dragers die Vertrouwelijke Informatie of andere informatie die rechtstreeks of onrechtstreeks verband houdt met de activiteiten van de Werkgever of de vennootschappen van de groep waartoe de Werkgever behoort, en die de Werknemer heeft ontvangen, in bezit heeft gehad of zelf heeft bijeengebracht in de uitvoering van de Arbeidsovereenkomst, worden teruggegeven zonder hiervan een kopie te behouden.			18.3Similarly, all documents, correspondence, data, IT-programs or other carriers of Confidential Information or other information relating directly or indirectly to the Employer’s activities or to the activities the companies of the group the Employer belongs to, and which the Employee has received, had or collected during the performance of the Employment Contract, must be returned without keeping any copy.

Artikel 19.Verplichtingen van de Werknemer			Article 19.Obligations of the Employee
19.1De Werknemer verbindt zich ertoe de taken toevertrouwd door de Werkgever te goeder trouw uit te voeren en zich strikt te houden aan de gegeven instructies.			19.1The Employee will carry out all tasks entrusted by the Employer in good faith and will strictly comply with the instructions given.
De Werknemer zal alle mogelijke inspanningen leveren om diens kennis en knowhow in verband met de functies en het werk onder deze Arbeidsovereenkomst te handhaven en, indien nodig, te verbeteren en bij te werken. De Werknemer zal al het nieuwe materiaal en de nieuwe documentatie die door de Werkgever wordt gegeven terdege bestuderen.			The Employee will make all possible efforts to preserve their knowledge and knowhow relating to the function and duties under this Employment Contract, and, where necessary, to improve and update them. The Employee will thoroughly study all new material and documentation submitted by the Employer.
19.2De Werknemer zal, op geen enkele manier, hetzij direct, hetzij indirect (i) kunnen worden aangeworven of tewerkgesteld in, (ii) kunnen worden betrokken (onder welke hoedanigheid het ook zij) bij of (iii) kunnen bijdragen tot het leveren van diensten aan een andere onderneming of organisatie wanneer een dergelijke activiteit in conflict treedt of kan treden met de belangen van de Werkgever of wanneer een dergelijke activiteit van aard is de efficiënte uitvoering van de taken, die rusten op de Werknemer in het gedrang te brengen.			19.2The Employee will in no way, either directly or indirectly, (i) be hired or employed in, (ii) be involved in (irrespective of the capacity) or (iii) contribute to the performance of services to other companies or organisations if such activity would or could be conflicting with the interests of the Employer or if any such activity is of such a nature that it could hinder the efficient performance by the Employee of the tasks entrusted with.
19.3De Werknemer onthoudt zich tevens, zowel gedurende de Arbeidsovereenkomst als na beëindiging daarvan, van elke daad van oneerlijke concurrentie en van elke vorm van medewerking aan een dergelijke daad.			19.3The Employee shall also refrain, both during this Employment Contract and after its termination, from any act of unfair competition and from any form of collaboration in such an act.

Artikel 20.Intellectuele eigendom			Article 20.Intellectual property
20.1De Werknemer draagt, aan de Werkgever, die aanvaardt, de volle en exclusieve eigendom over van alle intellectuele eigendomsrechten, zoals, maar niet beperkt tot, auteursrecht, merkenrecht, tekeningen en modellenrecht, (sui-generis)			20.1The Employee transfers to the Employer, who accepts, full and exclusive ownership of all intellectual property rights, including, but not limited to, copyright, trademark rights, design rights, database (sui-generis) rights, patent rights, on any creation,

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databankenrecht, octrooirecht, op iedere en elke creatie, uitvinding, materiaal, werk of prestatie (waaronder wordt begrepen teksten en figuren, algoritmes, ontwerpen, tekeningen, modellen, stalen, apparaten, engineering, informatie over hardwareconfiguraties, onderzoeksrapporten, visualisaties, voorstellingsmiddelen of –materialen en dies meer) (Werk) gerealiseerd, uitgevonden of uitgedrukt door de Werknemer, alleen of samen met anderen, die rechtstreeks of onrechtstreeks voortvloeit of voortvloeide (vanaf de ondertekening van de Arbeidsovereenkomst) uit om het even welke activiteit in het kader van de uitvoering van de taken van de Werknemer onder de Arbeidsovereenkomst (de IE Rechten).			invention, material, work or performance (including text and figures, algorithms, designs, models, samples, apparatus, engineering, information relating to physical computer configurations, research reports, visualisations, means or materials of presentation and the like) (Creation) made, invented or expressed by the Employee, alone or with others, that arise or result directly or indirectly (from the signing of the Employment Contract) from any activity in the performance of the Employee's obligations under the Employment Contract (the IP Rights).
20.2De overdracht is exclusief, onherroepelijk (ook na het einde van de Arbeidsovereenkomst om welke reden en op welke wijze dan ook) en heeft betrekking op alle territoria wereldwijd. De overdracht gaat in op het ogenblik van de creatie/realisatie van het (onderdeel van het) Werk en blijft van kracht voor de hele duur dat de IE Rechten bescherming genieten of zullen genieten door huidige of toekomstige Belgische of buitenlandse wetten of internationale verdragen.			20.2This assignment is exclusive, irrevocable (even after the Employment Contract has been terminated for any reason and by any means whatsoever) and covers all territories of the world. The assignment takes effect at the time of the creation/realisation of the Creation (or part thereof) and remains in force for the entire period during which the IP Rights are or will be protected by Belgian or foreign laws or international treaties, present or future.
20.3De Werknemer garandeert de nodige rechten te bezitten om zich te verbinden tot de overdracht in dit artikel en verbindt er zich toe om in de uitvoering van deze Arbeidsovereenkomst geen intellectuele eigendomsrechten of andere rechten van derden te schenden.			20.3The Employee guarantees to possess the necessary rights to undertake the assignment referred to in this article, and undertakes not to infringe the intellectual property rights or other rights of third parties in the performance of this Employment Contract.
20.4Inzake de Werken die beschermd zijn door het auteursrecht, heeft de overdracht betrekking op alle economische rechten van het auteursrecht, met inbegrip van de rechten op reproductie, van mededeling aan het publiek, van bewerking, van vertaling, van distributie, van verkoop, verhuren of uitlenen.			20.4With regard to Creations protected by copyright, the assignment concerns all the economic rights of copyright, including the rights of reproduction, communication to the public, adaptation, translation, distribution, sale, rental or lending.
20.5De Werknemer erkent dat de vergoeding voor de overdracht zoals bepaald in dit artikel integraal vervat is in de vergoeding die de Werknemer in uitvoering van de Arbeidsovereenkomst ontvangt en heeft ontvangen.			20.5The Employee acknowledges that the remuneration for the assignment as stipulated in this article is fully included in the remuneration the Employee receives and has received in execution of this Employment Contract.
20.6Indien de exploitatie van het Werk zou gebeuren onder op het ogenblik van de Arbeidsovereenkomst nog onbekende exploitatievormen, wordt de Werknemer, in tegenstelling tot wat hierboven gesteld werd, een eenmalige vergoeding toegekend ten bedrage van 1 % van de winst die door deze exploitatievorm gerealiseerd wordt, na aftrek van de belastingen en met een maximum van 500 EUR.			20.6If the exploitation of the Creation takes place in forms of exploitation unknown at the time of the conclusion of this Employment Contract, the Employee shall be granted, contrary to what is indicated above, a single payment amounting to 1% of the profit generated by this form of exploitation, after deduction of taxes and for a maximum amount of EUR 500.
20.7De Werknemer doet afstand van de uitoefening van de morele rechten van het auteursrecht. Zonder het algemeen karakter van de overdracht te beperken, heeft de Werkgever exclusief het recht om naar eigen goeddunken:			20.7The Employee renounces the exercise of the moral rights of copyright. Without limiting the generality of the assignment, the Employer shall have the exclusive right, at its sole discretion, to:

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a) te bepalen of, wanneer en hoe het Werk (geheel of gedeeltelijk) geëxploiteerd zal worden; zelfs het Werk dat voor een lange duur niet geëxploiteerd wordt, zal de exclusieve eigendom van de Werkgever blijven;			a) determine whether, when and how the Creation will be exploited (in whole or in part); the Creation that is not exploited for a long period of time shall also remain the exclusive property of the Employer;
b) het Werk op anonieme basis te exploiteren of onder een naam of teken van zijn keuze, zonder de naam van de Werknemer te moeten vermelden; en			b) exploit the Creation anonymously or under the name or sign of its choice, without having to indicate the name of the Employee; and
c) het Werk te wijzigen (zonder afbreuk te doen aan het recht van de Werknemer om zich tegen elke misvorming, verminking, of andere wijziging of aantasting van het Werk die diens eer of reputatie kunnen schaden in de zin van art. 6bis van het Verdrag van Bern te verzetten).			c) modify the Creation (without prejudice to the Employee's right to object to any distortion, mutilation or other modification or deterioration of the Creation which could harm their honour or reputation within the meaning of Article 6bis of the Berne Convention).
20.8Indien de Werkgever de verkregen IE Rechten zou overdragen aan een derde partij, zal de verkrijger het recht hebben om het Werk onder dezelfde voorwaarden als de Werkgever te exploiteren.			20.8Should the Employer transfer the acquired IP Rights to a third party, the assignee shall have the right to exploit the Creation under the same terms and conditions as the Employer.
20.9De Werknemer zal de Werkgever enige en alle bronbestanden betreffende het desbetreffende Werk bezorgen, met name de broncode van het Werk in geval het Werk een computerprogramma is, zonder enige technische bescherming dat het gebruik door de Werkgever zou verhinderen.			20.9The Employee shall provide the Employer with all source files relating to the Creation in question, in particular the source code of the Creation if it is a computer program, without any technical protection that would prevent its use by the Employer.
20.10De Werknemer zal de Werkgever, zowel tijdens de duur van de Arbeidsovereenkomst als daarna (ongeacht de reden en de wijze van beëindiging van de Arbeidsovereenkomst) kosteloos alle noodzakelijke en nuttige bijstand, informatie en documentatie verlenen voor het bekomen, de vrijwaring en de bescherming van het desbetreffende IE Recht, onder meer door het ondertekenen van relevante documenten en door medewerking te verlenen in enige procedure of handeling noodzakelijk voor het bekomen, vrijwaring en bescherming van het desbetreffende IE Recht.			20.10The Employee shall provide the Employer free of charge, both during the execution of the Employment Contract and after its termination (irrespective of the reason for and means of termination of the Employment Contract), with all assistance, information and documentation necessary and useful to obtain, compensate and protect the IP Rights concerned, including by signing the relevant documents and cooperating in any procedure or act necessary to obtain, compensate and protect the IP Rights concerned.
20.11De Werknemer erkent uitdrukkelijk dat ingeval de Werkgever in gebreke blijft zijn verplichtingen o.g.v. de Arbeidsovereenkomst uit te voeren, de Werknemer hierbij uitdrukkelijk afziet van de toepassing van artikel 1184 Oud Burgerlijk Wetboek en de enige remedie voor de Werknemer zal bestaan in een vordering tot schadevergoeding met uitsluiting van het recht om de overdracht te herroepen, in te perken of te beëindigen.			20.11The Employee expressly acknowledges that if the Employer does not fulfil its obligations under the Employment Contract, the Employee expressly waives the application of Article 1184 of the Old Civil Code and that the Employee's only recourse shall be a claim for damages, excluding the right to revoke, limit or terminate the assignment.

Artikel 21.E-mail en internet			Article 21.Email and Internet
21.1Het is de Werknemer verboden e-mails of brieven te versturen, onder welke vorm of van welke aard ook, hetzij intern, hetzij extern, die lasterlijk zouden kunnen zijn voor enige persoon of vennootschap, die beledigende, bedreigende of discriminerende opmerkingen bevatten of de verspreiding of de opvordering van obsceen of			21.1The Employee is prohibited from sending emails or letters, in whatever form or of whatever nature, be it internally or externally, which could be defamatory for any person or company, which hold insulting, threatening or discriminatory remarks or which publish or disseminate obscene or pornographic materials of whatever nature, other than emails of a

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pornografisch materiaal inhouden van welke aard ook, andere dan e-mails van hoofdzakelijk persoonlijke aard (die niet aanstootgevend zijn) of andere dan e-mails die vereist zijn voor de goede uitvoering van de taken van de Werknemer.			mainly private nature (which are not offensive) or emails which are necessary for the correct execution of the Employees’ duties.
21.2De Werknemer dient de interne richtlijnen met betrekking tot het gebruik van elektronische briefwisseling en internet binnen de Vennootschap te respecteren.			21.2The Employee has to comply with the internal guidelines with respect to the use of email and internet applicable within the Company.
De Werknemer zal niet proberen zich toegang te verschaffen tot persoonlijke data in informaticabestanden of in papieren van de Werkgever of deze aan anderen (al dan niet tewerkgesteld door de Werkgever) te onthullen, behalve in de mate dat hiertoe door de Werkgever schriftelijk toelating werd verleend.			The Employee will not attempt to access the personal data stored in the electronic files or in the paper files of the Employer or to disclose them to third parties (employed or not by the Employer), unless if the Employer has given a written permission to that effect.
De Werknemer mag geen bestanden of folders in gelijk welke vorm uitwissen of vernietigen zonder hiertoe gemachtigd te zijn door de Werkgever.			The Employee will not delete or destroy any files or folders in whatever form without due permission of the Employer.
21.3De Werknemer zal private e-mails laten verlopen via een persoonlijk e-mailadres (genre Hotmail), en niet via het e-mailadres dat door de Werkgever aan de Werknemer ter beschikking wordt gesteld.			21.3The Employee will send his private emails via a personal email address (such as Hotmail) and not via the email address which is made available to the Employee by the Employer.
Het gebruik van het e-mailsysteem van de Werkgever voor private e-mails is verboden. Aldus wordt ervan uitgegaan dat alle e-mails die via dit e-mailsysteem verlopen, een beroepskarakter hebben.			The use of the email system of the Employer for private purposes is prohibited. The Employer therefore assumes that all emails, which are sent via this email system, are of a professional nature.
21.4Bij geplande afwezigheid, zal de Werknemer de functie “afwezigheidsassistent” van zijn mailbox instellen. Bij niet-geplande afwezigheid van de Werknemer, zal de hiërarchische overste van de Werknemer de “afwezigheidsassistent” van de mailbox van de Werknemer instellen. In beide gevallen zal in het automatisch antwoord aan de afzender de hiërarchische overste van de Werknemer worden vermeld als te contacteren persoon.			21.4In case of planned absence, the Employee will activate the “out of office assistant” of his mailbox. In case of non-planned absence, the Employee’s immediate supervisor will activate the “out of office assistant” of the mailbox of the Employee. In both cases, the Employee’s immediate supervisor will be mentioned in the automatic reply to the sender as the contact person.

Artikel 22.Dringende reden			Article 22.Gross misconduct
Elk van de volgende handelingen worden door Partijen als voorbeelden van een dringende reden beschouwd, die de verbreking van de Arbeidsovereenkomst door de Werkgever rechtvaardigt zonder opzeggingstermijn of -vergoeding:			Each of the following acts or behaviours are considered by the Parties as examples of a gross misconduct, justifying the immediate termination of the Employment Contract by the Employer without notice period or indemnity in lieu of notice:
-ernstig wangedrag, oneerlijkheid of diefstal;			-serious misconduct, dishonesty or theft;
-bekendmaking van handels-, zaken-, of fabrieksgeheimen van de Werkgever;			-disclosure of trade, business or manufacturing secrets of the Employer;
-zwartmaking van de Werkgever, zijn activiteiten of producten;			-slandering with regard to the Employer, his activities or products;
-uitoefening van voor de Werkgever, schadelijke of met hem concurrerende activiteiten;			-the performance of activities that may be harmful for the Employer or competing with his activities;
-onwettige afwezigheid;			-unjustified absence;

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-weigering bevelen van de Werkgever op te volgen; en/of			-the refusal to comply with the Employer’s orders; and/or
-niet naleving van de geheimhoudingsplicht.			-violation of the confidentiality obligation.
De bovenvermelde opsomming is niet limitatief.			The list above is not exhaustive.

Artikel 23.Bevoegd Paritair Comité			Article 23.Applicable Joint Committee
De Werkgever ressorteert onder de bevoegdheid van het Paritair Comité nr. 200.			The Employer pertains to Joint Committee no. 200.

Artikel 24.Gebruik			Article 24.Usages
Partijen komen overeen dat het gebruik of de gewoonte in hun arbeidsrelatie niet zal gelden als bron van rechten en verplichtingen van de Partijen, en dit ongeacht de vraag of dergelijk gebruik in strijd is of zou kunnen zijn met andere rechtsbronnen die in de arbeidsrelatie van Partijen van toepassing zijn.			The Parties agree that the usages or the common practices applied in their employment relationship shall not be considered as a source of any right or obligations with respect to any of the Parties, and this irrespective of the fact that such usages or common practices are contradicting with any other sources of law which govern the employment relationship between the Parties.

Artikel 25.Volledigheid van het akkoord, bevoegde rechtbanken en toepasselijk recht			Article 25.Entire agreement, competent jurisdiction and applicable law
25.1Onderhavige Arbeidsovereenkomst, met bijlagen, vormt de gehele overeenkomst tussen Partijen en vervangt alle andere, vroegere of gelijktijdige, schriftelijke of mondelinge overeenkomsten en doet deze teniet.			25.1The present Employment Contract, with its appendices, represents the entire agreement between the Parties and replaces and abolishes all other, prior or simultaneous, written or oral agreements.
25.2Indien enige bepaling van onderhavige Arbeidsovereenkomst nietig of ongeldig zou verklaard worden, zullen de overige bepalingen hierdoor niet aangetast worden.			25.2If any provision of this Employment Contract is declared null and void, the remaining provisions will not be affected thereby.
Partijen zullen zich inspannen om de nietige of ongeldige bepaling te vervangen door een geldige bepaling, waarvan de uitwerking zo dicht mogelijk aanleunt bij de beoogde uitwerking van de nietige of ongeldige bepaling.			The Parties will endeavour to replace the invalid provision by a valid provision, the effect of which is as close as possible to the intended effect of the invalid provision.
25.3Onderhavige Arbeidsovereenkomst, alsook alle bijlagen, is onderworpen aan het Belgisch recht. Alleen de Belgische hoven en rechtbanken zijn bevoegd om kennis te nemen van gebeurlijke geschillen tussen Partijen.			25.3The present Employment Contract, as well as all of its appendices, is governed by Belgian law. Any dispute between Parties will be exclusively settled by the Belgian courts.

Artikel 26.Ontvangen documenten			Article 26.Documents received
26.1De Werknemer verklaart een origineel van onderhavige Arbeidsovereenkomst te hebben ontvangen.			26.1The Employee declares having received an original of this Employment Contract.
26.2De Werknemer erkent tevens alle geldende policies te hebben ontvangen, alsook het arbeidsreglement van de Werkgever. De Werknemer gaat er bovendien mee akkoord de inhoud daarvan strikt te zullen naleven.			26.2The Employee furthermore acknowledges having received all applicable policies, as well as the Employer’s work rules. The Employee furthermore agrees to strictly comply with their contents.

Handtekeningpagina volgt			Signature page follows

Page 15 of 16



Opgemaakt op 31 August 2024, in twee originele ondertekende exemplaren, waarvan elke Partij verklaart één origineel exemplaar behoorlijk ondertekend door de andere Partij te hebben ontvangen.			Thus made and signed in two original copies, on 31 August 2024, each Party acknowledging having received a copy duly signed by the other Party.

Voor de Werkgever, te Novi, MI, U.S.A. , /s/ James Zizelman			For the Employer, in Novi, MI, U.S.A. , /s/ James Zizelman
James Zizelman President and CEO Stoneridge, Inc.			James Zizelman President and CEO Stoneridge, Inc.

De Werknemer, te KRAAINEM , /s/ Natalia Noblet Natalia Noblet			The Employee, in KRAAINEM , /s/ Natalia Noblet Natalia Noblet

Page 16 of 16

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES–OXLEY ACT OF 2002

I, James Zizelman certify that:

(1)I have reviewed this Quarterly Report on Form 10-Q of Stoneridge, Inc. (the “Company”);

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

(4)The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the Company and we have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d)Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting;

(5)The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors:

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.


/s/ James Zizelman
James Zizelman, President and Chief Executive Officer
October 30, 2024

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES–OXLEY ACT OF 2002

I, Matthew R. Horvath, certify that:

(1)I have reviewed this Quarterly Report on Form 10-Q of Stoneridge, Inc. (the “Company”);

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.


/s/ Matthew R. Horvath
Matthew R. Horvath Chief Financial Officer and Treasurer
October 30, 2024

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, James Zizelman, President and Chief Executive Officer of Stoneridge, Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Quarterly Report on Form 10-Q of the Company for the three months ended September 30, 2024 (“the Report”) which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


/s/ James Zizelman
James Zizelman, President and Chief Executive Officer
October 30, 2024

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Matthew R. Horvath, Chief Financial Officer and Treasurer of Stoneridge, Inc. (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


/s/ Matthew R. Horvath
Matthew R. Horvath Chief Financial Officer and Treasurer
October 30, 2024

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-13337
Entity Registrant Name	STONERIDGE, INC
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-1598949
Entity Address, Address Line One	39675 MacKenzie Drive, Suite 400
Entity Address, City or Town	Novi
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48377
City Area Code	248
Local Phone Number	489-9300
Title of 12(g) Security	Common Shares
Trading Symbol	SRI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,688,071
Entity Central Index Key	0001043337
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 54,138	$ 40,841
Accounts receivable, less reserves of $845 and $1,058, respectively	158,529	166,545
Inventories, net	176,445	187,758
Prepaid expenses and other current assets	25,301	34,246
Total current assets	414,413	429,390
Long-term assets:
Property, plant and equipment, net	103,450	110,126
Intangible assets, net	44,206	47,314
Goodwill	35,593	35,295
Operating lease right-of-use asset	10,758	10,795
Investments and other long-term assets, net	54,103	46,980
Total long-term assets	248,110	250,510
Total assets	662,523	679,900
Current liabilities:
Current portion of debt	0	2,113
Accounts payable	98,130	111,925
Accrued expenses and other current liabilities	71,761	64,203
Total current liabilities	169,891	178,241
Long-term liabilities:
Revolving credit facility	196,322	189,346
Deferred income taxes	6,344	7,224
Operating lease long-term liability	7,219	7,684
Other long-term liabilities	11,397	9,688
Total long-term liabilities	221,282	213,942
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued	0	0
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,689 and 27,549 shares outstanding at September 30, 2024 and December 31, 2023, respectively, with no stated value	0	0
Additional paid-in capital	224,944	227,340
Common Shares held in treasury, 1,277 and 1,417 shares at September 30, 2024 and December 31, 2023, respectively, at cost	(38,641)	(43,344)
Retained earnings	186,099	196,509
Accumulated other comprehensive loss	(101,052)	(92,788)
Total shareholders' equity	271,350	287,717
Total liabilities and shareholders' equity	$ 662,523	$ 679,900

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Reserves on accounts receivable	$ 845	$ 1,058
Preferred shares, authorized (in shares)	5,000	5,000
Preferred shares, issued (in shares)	0	0
Common shares, authorized (in shares)	60,000	60,000
Common shares, issued (in shares)	28,966	28,966
Common shares, outstanding (in shares)	27,689	27,549
Common shares held in treasury, shares (in shares)	1,277	1,417

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 213,831	$ 238,164	$ 690,047	$ 746,303
Costs and expenses:
Cost of goods sold	169,340	185,689	543,459	590,538
Selling, general and administrative	26,533	28,111	88,832	91,465
Design and development	17,643	17,852	53,703	57,486
Operating income	315	6,512	4,053	6,814
Interest expense, net	3,604	3,313	11,039	9,179
Equity in loss of investee	752	141	1,081	641
Other (income) expense, net	(384)	(1,383)	(644)	2,152
(Loss) income before income taxes	(3,657)	4,441	(7,423)	(5,158)
Provision for income taxes	3,413	2,270	2,987	3,049
Net (loss) income	$ (7,070)	$ 2,171	$ (10,410)	$ (8,207)
(Loss) earnings per share:
Basic (in dollars per share)	$ (0.26)	$ 0.08	$ (0.38)	$ (0.30)
Diluted (in dollars per share)	$ (0.26)	$ 0.08	$ (0.38)	$ (0.30)
Weighted-average shares outstanding:
Basic (in shares)	27,617,663	27,483,709	27,585,904	27,428,249
Diluted (in shares)	27,617,663	27,734,109	27,585,904	27,428,249

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Statement of Comprehensive Income [Abstract]

Net (loss) income

$ (7,070)

$ 2,171

$ (10,410)

$ (8,207)

Other comprehensive income (loss), net of tax:

Foreign currency translation

8,142

(6,969)

(5,191)

Unrealized loss on derivatives

^[1]

(943)

(126)

(3,073)

(70)

Other comprehensive income (loss), net of tax

7,199

(7,095)

(8,264)

Comprehensive income (loss)

$ 129

$ (4,924)

$ (18,674)

$ (8,182)

[1]	Net of tax benefit of $251 and $34 for the three months ended September 30, 2024 and 2023, respectively. Net of tax benefit of $817 and $19 for the nine months ended September 30, 2024 and 2023, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Tax benefit on unrealized loss on derivatives	$ (251)	$ (34)	$ (817)	$ (19)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
OPERATING ACTIVITIES:
Net loss	$ (7,070)	$ (6,126)	$ 2,171	$ (7,386)	$ (10,410)	$ (8,207)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation					19,695	19,800
Amortization, including accretion and write-off of deferred financing costs					6,812	6,077
Deferred income taxes					(6,339)	(2,732)
Loss of equity method investee					1,081	641
Loss (gain) on sale of fixed assets					257	(861)
Share-based compensation expense					3,092	2,272
Excess tax deficiency related to share-based compensation expense					263	74
Changes in operating assets and liabilities:
Accounts receivable, net					6,042	(21,335)
Inventories, net					9,694	(33,651)
Prepaid expenses and other assets					4,949	7,473
Accounts payable					(13,127)	23,322
Accrued expenses and other liabilities					6,508	1,459
Net cash provided by (used for) operating activities					28,517	(5,668)
INVESTING ACTIVITIES:
Capital expenditures, including intangibles					(19,049)	(28,584)
Proceeds from sale of fixed assets					312	1,841
Investment in venture capital fund, net					(260)	(200)
Net cash used for investing activities					(18,997)	(26,943)
FINANCING ACTIVITIES:
Revolving credit facility borrowings					98,000	81,365
Revolving credit facility payments					(91,000)	(64,568)
Proceeds from issuance of debt					24,277	27,579
Repayments of debt					(26,364)	(27,145)
Repurchase of Common Shares to satisfy employee tax withholding					(780)	(1,697)
Net cash provided by financing activities					4,133	15,534
Effect of exchange rate changes on cash and cash equivalents					(356)	(963)
Net change in cash and cash equivalents					13,297	(18,040)
Cash and cash equivalents at beginning of period		$ 40,841		$ 54,798	40,841	54,798	$ 54,798
Cash and cash equivalents at end of period	$ 54,138		$ 36,758		54,138	36,758	$ 40,841
Supplemental disclosure of cash flow information:
Cash paid for interest, net					11,892	9,248
Cash paid for income taxes, net					$ 8,429	$ 8,453

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands

Total

Number of Common Shares outstanding

Number of treasury shares

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Common stock beginning balance (in shares) at Dec. 31, 2022

27,341

Treasury stock beginning balance (in shares) at Dec. 31, 2022

1,625

Beginning balance at Dec. 31, 2022

$ 280,942

$ (50,366)

$ 232,758

$ 201,692

$ (103,142)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

(7,386)

Unrealized gain (loss) on derivatives

(232)

Currency translation adjustments

4,072

Issuance of Common Shares (in shares)

234

Repurchased Common Shares for treasury, net (in shares)

Repurchased Common Shares for treasury, net

5,649

$ 5,649

Share-based compensation, net

(6,802)

Common stock ending balance (in shares) at Mar. 31, 2023

27,513

Treasury stock ending balance (in shares) at Mar. 31, 2023

1,453

Ending balance at Mar. 31, 2023

276,243

$ (44,717)

225,956

194,306

(99,302)

Common stock beginning balance (in shares) at Dec. 31, 2022

27,341

Treasury stock beginning balance (in shares) at Dec. 31, 2022

1,625

Beginning balance at Dec. 31, 2022

280,942

$ (50,366)

232,758

201,692

(103,142)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

(8,207)

Unrealized gain (loss) on derivatives

^[1]

(70)

Common stock ending balance (in shares) at Sep. 30, 2023

27,548

Treasury stock ending balance (in shares) at Sep. 30, 2023

1,418

Ending balance at Sep. 30, 2023

273,342

$ (43,408)

226,382

193,485

(103,117)

Common stock beginning balance (in shares) at Mar. 31, 2023

27,513

Treasury stock beginning balance (in shares) at Mar. 31, 2023

1,453

Beginning balance at Mar. 31, 2023

276,243

$ (44,717)

225,956

194,306

(99,302)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

(2,992)

Unrealized gain (loss) on derivatives

288

Currency translation adjustments

2,992

Issuance of Common Shares (in shares)

Repurchased Common Shares for treasury, net (in shares)

Repurchased Common Shares for treasury, net

350

$ 350

Share-based compensation, net

757

Common stock ending balance (in shares) at Jun. 30, 2023

27,522

Treasury stock ending balance (in shares) at Jun. 30, 2023

1,444

Ending balance at Jun. 30, 2023

277,638

$ (44,367)

226,713

191,314

(96,022)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

2,171

Unrealized gain (loss) on derivatives

(126)

^[1]

(126)

Currency translation adjustments

(6,969)

Issuance of Common Shares (in shares)

Repurchased Common Shares for treasury, net (in shares)

Repurchased Common Shares for treasury, net

959

$ 959

Share-based compensation, net

(331)

Common stock ending balance (in shares) at Sep. 30, 2023

27,548

Treasury stock ending balance (in shares) at Sep. 30, 2023

1,418

Ending balance at Sep. 30, 2023

$ 273,342

$ (43,408)

226,382

193,485

(103,117)

Common stock beginning balance (in shares) at Dec. 31, 2023

27,549

Treasury stock beginning balance (in shares) at Dec. 31, 2023

1,417

Beginning balance at Dec. 31, 2023

$ 287,717

$ (43,344)

227,340

196,509

(92,788)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

(6,126)

Unrealized gain (loss) on derivatives

Currency translation adjustments

(4,879)

Issuance of Common Shares (in shares)

154

Repurchased Common Shares for treasury, net (in shares)

Repurchased Common Shares for treasury, net

3,958

$ 3,958

Share-based compensation, net

(3,484)

Common stock ending balance (in shares) at Mar. 31, 2024

27,667

Treasury stock ending balance (in shares) at Mar. 31, 2024

1,299

Ending balance at Mar. 31, 2024

$ 277,256

$ (39,386)

223,856

190,383

(97,597)

Common stock beginning balance (in shares) at Dec. 31, 2023

27,549

Treasury stock beginning balance (in shares) at Dec. 31, 2023

1,417

Beginning balance at Dec. 31, 2023

$ 287,717

$ (43,344)

227,340

196,509

(92,788)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

(10,410)

Unrealized gain (loss) on derivatives

^[1]

$ (3,073)

Common stock ending balance (in shares) at Sep. 30, 2024

27,689

Treasury stock ending balance (in shares) at Sep. 30, 2024

1,277

Ending balance at Sep. 30, 2024

$ 271,350

$ (38,641)

224,944

186,099

(101,052)

Common stock beginning balance (in shares) at Mar. 31, 2024

27,667

Treasury stock beginning balance (in shares) at Mar. 31, 2024

1,299

Beginning balance at Mar. 31, 2024

277,256

$ (39,386)

223,856

190,383

(97,597)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

2,786

Unrealized gain (loss) on derivatives

(2,200)

Currency translation adjustments

(8,454)

Issuance of Common Shares (in shares)

Repurchased Common Shares for treasury, net (in shares)

Repurchased Common Shares for treasury, net

320

$ 320

Share-based compensation, net

743

Common stock ending balance (in shares) at Jun. 30, 2024

27,679

Treasury stock ending balance (in shares) at Jun. 30, 2024

1,287

Ending balance at Jun. 30, 2024

270,451

$ (39,066)

224,599

193,169

(108,251)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net (loss) income

(7,070)

Unrealized gain (loss) on derivatives

(943)

^[1]

(943)

Currency translation adjustments

8,142

Issuance of Common Shares (in shares)

Repurchased Common Shares for treasury, net (in shares)

Repurchased Common Shares for treasury, net

425

$ 425

Share-based compensation, net

$ 345

345

Common stock ending balance (in shares) at Sep. 30, 2024

27,689

Treasury stock ending balance (in shares) at Sep. 30, 2024

1,277

Ending balance at Sep. 30, 2024

$ 271,350

$ (38,641)

$ 224,944

$ 186,099

$ (101,052)

[1]	Net of tax benefit of $251 and $34 for the three months ended September 30, 2024 and 2023, respectively. Net of tax benefit of $817 and $19 for the nine months ended September 30, 2024 and 2023, respectively.

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2023 Form 10-K. Reclassifications Certain prior period amounts have been reclassified to conform to their 2024 presentation in the condensed consolidated financial statements.

Recently Issued Accounting Standards	9 Months Ended
Recently Issued Accounting Standards	Sep. 30, 2024
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures", which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures," which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, companies are required to disclose additional information about income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be adopted on a prospective basis; however, retrospective application is permitted. We are currently evaluating the impact on our annual consolidated financial statement disclosures.

Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue by Reportable Segment

The following tables disaggregate our revenue by reportable segment and geographical location(1) for the three months ended September 30, 2024 and 2023:


	Control Devices				Electronics				Stoneridge Brazil				Consolidated
Three months ended September 30,	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales:
North America	$	60,661	$	75,565	$	48,734	$	50,934	$	—	$	—	$	109,395	$	126,499
South America	—		—		—		—		13,219		14,168		13,219		14,168
Europe	—		—		77,751		82,737		—		—		77,751		82,737
Asia Pacific	12,468		13,779		998		981		—		—		13,466		14,760
Total net sales	$	73,129	$	89,344	$	127,483	$	134,652	$	13,219	$	14,168	$	213,831	$	238,164

The following tables disaggregate our revenue by reportable segment and geographical location(1) for the nine months ended September 30, 2024 and 2023:


	Control Devices				Electronics				Stoneridge Brazil				Consolidated
Nine months ended September 30,	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales:
North America	$	193,874	$	229,990	$	155,151	$	155,823	$	—	$	—	$	349,025	$	385,813
South America	—		—		—		—		37,084		43,332		37,084		43,332
Europe	—		—		264,739		269,154		—		—		264,739		269,154
Asia Pacific	36,312		37,416		2,887		10,588		—		—		39,199		48,004
Total net sales	$	230,186	$	267,406	$	422,777	$	435,565	$	37,084	$	43,332	$	690,047	$	746,303

_______________________

(1)Company sales based on geographic location are where the sale originates not where the customer is located.

Performance Obligations

Contract Balances

The Company had no material contract assets, contract liabilities or capitalized contract acquisition costs as of September 30, 2024 and December 31, 2023.

Inventories

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventories


	September 30, 2024		December 31, 2023
Raw materials	$	128,437	$	142,744
Work-in-progress	8,071		11,907
Finished goods	39,937		33,107
Total inventories, net	$	176,445	$	187,758

Financial Instruments and Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

Financial Instruments

Derivative Instruments and Hedging Activities

Foreign Currency Exchange Rate Risk

Cash Flow Hedges

The Company’s foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows:

Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedges

The Company evaluated the effectiveness of the Mexican peso denominated forward contracts held as of September 30, 2024 and concluded that the hedges were highly effective.

Interest Rate Risk

Interest Rate Risk – Cash Flow Hedge

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows:


	Notional amounts (A)				Prepaid expenses and other current assets				Accrued expenses and other current liabilities
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	31,183	$	26,613	$	—	$	1,858	$	2,032	$	—

_____________________________

(A)Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars.

Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net (loss) income for the three months ended September 30 were as follows:


	(Loss) gain recorded in other comprehensive income (loss)				(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income (A)
	2024		2023		2024		2023
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(1,629)	$	67	$	(435)	$	227

_____________________________


(A)			(Losses) gains reclassified from other comprehensive income (loss) into net (loss) income recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $(142) and $54 for the three months ended September 30, 2024 and 2023, respectively. (Losses) gains reclassified from other comprehensive income (loss) into net (loss) income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $(293) and $173 for the three months ended September 30, 2024 and 2023, respectively.

Gross amounts recorded for the cash flow and net investment hedges in other comprehensive (loss) income and in net loss for the nine months ended September 30 were as follows:


	(Loss) gain recorded in other comprehensive (loss) income				Gain reclassified from other comprehensive (loss) income into net loss (A)
	2024		2023		2024		2023
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(3,257)	$	483	$	633	$	278
Interest rate swap	$	—	$	(4)	$	—	$	290


(A)			Gains reclassified from other comprehensive (loss) income into net loss recognized in SG&A in the Company’s condensed consolidated statements of operations were $109 and $66 for the nine months ended September 30, 2024 and 2023, respectively. Gains reclassified from other comprehensive (loss) income into net loss recognized in COGS in the Company’s condensed consolidated statements of operations were $524 and $212 for the nine months ended September 30, 2024 and 2023, respectively. Gains reclassified from other comprehensive (loss) income into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $0 and $290 for the nine months ended September 30, 2024 and 2023, respectively.

Cash flows from derivatives used to manage foreign currency exchange and interest rate risks are classified as operating activities within the condensed consolidated statements of cash flows.

Fair Value Measurements


			September 30, 2024						December 31, 2023
			Fair values estimated using
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs		Fair value
Financial assets carried at fair value:
Forward currency contracts	$	—	$	—	$	—	$	—	$	1,858


Total financial assets carried at fair value	$	—	$	—	$	—	$	—	$	1,858

Financial liabilities carried at fair value:
Forward currency contracts	$	2,032	$	—	$	2,032	$	—	$	—


Total financial liabilities carried at fair value	$	2,032	$	—	$	2,032	$	—	$	—

There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the nine months ended September 30, 2024.

Share-Based Compensation	9 Months Ended
Share-Based Compensation	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation Compensation expense for share-based compensation arrangements, which is recognized in the condensed consolidated statements of operations as a component of SG&A expense, was $885 and $1,001 for the three months ended September 30, 2024 and 2023, respectively. Compensation expense for share-based compensation arrangements was $3,092 and $2,272 for the nine months ended September 30, 2024 and 2023, respectively. The nine months ended September 30, 2023 included income from the forfeiture of certain grants associated with employee resignations.

Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt

Debt consisted of the following at September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023		Interest rates at September 30, 2024		Maturity
Revolving Credit Facility
Revolving Credit Facility	$	196,322	$	189,346	7.16	%	November 2026

Debt

Suzhou short-term credit line	—		2,113
Total debt	—		2,113
Less: current portion	—		(2,113)
Total long-term debt, net	$	—	$	—

Revolving Credit Facility

(vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000, (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings.

Borrowings outstanding on the Credit Facility were $196,322 and $189,346 at September 30, 2024 and December 31, 2023, respectively.

The Company was in compliance with all Credit Facility covenants at September 30, 2024 and December 31, 2023.

The Company also has outstanding letters of credit of $1,571 at September 30, 2024 and $1,586 at December 31, 2023.

Debt

(Loss) Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

(Loss) Earnings Per Share

Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows:


	Three months ended September 30,		Nine months ended September 30,
	2024	2023	2024	2023
Basic weighted-average Common Shares outstanding	27,617,663	27,483,709	27,585,904	27,428,249
Effect of dilutive shares	—	250,400	—	—
Diluted weighted-average Common Shares outstanding	27,617,663	27,734,109	27,585,904	27,428,249

Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income for the three months ended September 30, 2024 and 2023 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at July 1, 2024	$	(107,589)	$	(662)	$	(108,251)
Other comprehensive income (loss) before reclassifications	8,142		(1,287)		6,855
Amounts reclassified from accumulated other comprehensive loss	—		344		344
Net other comprehensive income (loss), net of tax	8,142		(943)		7,199
Balance at September 30, 2024	$	(99,447)	$	(1,605)	$	(101,052)

Balance at July 1, 2023	$	(96,310)	$	288	$	(96,022)
Other comprehensive (loss) income before reclassifications	(6,969)		53		(6,916)
Amounts reclassified from accumulated other comprehensive loss	—		(179)		(179)
Net other comprehensive loss, net of tax	(6,969)		(126)		(7,095)
Balance at September 30, 2023	$	(103,279)	$	162	$	(103,117)

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2024 and 2023 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at January 1, 2024	$	(94,256)	$	1,468	$	(92,788)
Other comprehensive loss before reclassifications	(5,191)		(2,573)		(7,764)
Amounts reclassified from accumulated other comprehensive loss	—		(500)		(500)
Net other comprehensive loss, net of tax	(5,191)		(3,073)		(8,264)
Balance at September 30, 2024	$	(99,447)	$	(1,605)	$	(101,052)

Balance at January 1, 2023	$	(103,374)	$	232	$	(103,142)
Other comprehensive income before reclassifications	95		379		474
Amounts reclassified from accumulated other comprehensive loss	—		(449)		(449)
Net other comprehensive income (loss), net of tax	95		(70)		25
Balance at September 30, 2023	$	(103,279)	$	162	$	(103,117)

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Long Term Supply Commitment

Product Warranty and Recall

The following provides a reconciliation of changes in product warranty and recall reserve liability:


Nine months ended September 30,	2024		2023
Product warranty and recall reserve at beginning of period	$	21,610	$	13,477
Accruals for warranties established during period	13,789		10,521
Aggregate changes in pre-existing liabilities due to claim developments	416		579
Settlements made during the period	(10,240)		(5,519)
Foreign currency translation	(1)		(386)
Product warranty and recall reserve at end of period	$	25,574	$	18,672

Business Realignment

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Business Realignment

Business realignment charges incurred by reportable segment were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Control Devices (A)	$	—	$	132	$	—	$	511
Electronics (B)	254		1,070		2,144		2,726

Unallocated Corporate (C)	—		—		59		1,137
Total business realignment charges	$	254	$	1,202	$	2,203	$	4,374

_____________________________________


(A)			Severance costs for the three months ended September 30, 2023 related to SG&A were $132. Severance costs for the nine months ended September 30, 2023 related to COGS and SG&A were $369 and $142, respectively.


(B)			Severance costs for the three months ended September 30, 2024 related to COGS and D&D were $140 and $114, respectively. Severance costs for the nine months ended September 30, 2024 related to COGS, SG&A and D&D were $140, $458 and $1,546, respectively. Severance costs for the three months ended September 30, 2023 related to COGS, SG&A and D&D were $30, $657 and $383, respectively. Severance costs for the nine months ended September 30, 2023 related to COGS, SG&A and D&D were $287, $2,056 and $383, respectively.


(C)			Severance related costs for the nine months ended September 30, 2024 related to SG&A was $59. Severance related costs for the nine months ended September 30, 2023 related to SG&A was $1,122. Severance related costs for the nine months ended September 30, 2023 related to D&D was $15.

Business realignment charges incurred, classified by statement of operations line item were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Cost of goods sold	$	140	$	30	$	140	$	656
Selling, general and administrative	—		789		517		3,320
Design and development	114		383		1,546		398
Total business realignment charges	$	254	$	1,202	$	2,203	$	4,374

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For interim tax reporting, we estimate our annual effective tax rate and apply it to our year to date ordinary income. Tax jurisdictions with a projected or year to date loss for which a benefit cannot be realized are excluded. For the three months ended September 30, 2024, income tax expense of $3,413 was attributable to the mix of earnings among tax jurisdictions and tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. The effective tax rate of (93.3)% varies from the statutory rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. For the three months ended September 30, 2023, income tax expense of $2,270 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of 51.1% varies from the statutory rate primarily due to U.S. taxes on foreign earnings and non-deductible expenses offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives. For the nine months ended September 30, 2024, income tax expense of $2,987 was attributable to the mix of earnings among tax jurisdictions and tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. The effective tax rate of (40.2)% varies from the statutory rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions, offset by U.S. taxes on foreign earnings. For the nine months ended September 30, 2023, income tax expense of $3,049 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of (59.1)% varies from the statutory rate primarily due to U.S. taxes on foreign earnings and non-deductible expenses offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives. The OECD (Organisation for Economic Co-operation and Development) implemented a 15% global corporate minimum tax ("Pillar Two") to ensure that large multinational enterprises pay a minimum level of tax in the countries they operate. During 2023, many countries took steps to incorporate Pillar Two into their domestic laws. In 2024, we do not expect a material change to our income tax provision in connection with Pillar Two. As additional jurisdictions implement this legislation, our effective tax rate and cash tax payments could increase in future years.

Segment Reporting

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

A summary of financial information by reportable segment is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net Sales:
Control Devices	$	73,129	$	89,344	$	230,186	$	267,406
Inter-segment sales	1,160		733		2,946		2,437
Control Devices net sales	74,289		90,077		233,132		269,843
Electronics	127,483		134,652		422,777		435,565
Inter-segment sales	8,184		8,649		22,492		25,656
Electronics net sales	135,667		143,301		445,269		461,221
Stoneridge Brazil	13,219		14,168		37,084		43,332
Inter-segment sales	411		—		610		—
Stoneridge Brazil net sales	13,630		14,168		37,694		43,332
Eliminations	(9,755)		(9,382)		(26,048)		(28,093)
Total net sales	$	213,831	$	238,164	$	690,047	$	746,303
Operating Income (Loss):
Control Devices	$	2,131	$	5,488	$	8,020	$	12,649
Electronics	3,514		7,647		20,434		16,491
Stoneridge Brazil	717		1,241		880		3,483
Unallocated Corporate (A)	(6,047)		(7,864)		(25,281)		(25,809)
Total operating income	$	315	$	6,512	$	4,053	$	6,814
Depreciation and Amortization:
Control Devices	$	3,152	$	3,100	$	8,821	$	9,373
Electronics	4,030		3,521		11,794		10,488
Stoneridge Brazil	1,155		1,259		3,652		3,545
Unallocated Corporate	492		593		1,696		1,800
Total depreciation and amortization (B)	$	8,829	$	8,473	$	25,963	$	25,206
Interest Expense (Income), net:
Control Devices	$	9	$	37	$	(10)	$	120
Electronics	283		456		1,387		1,452
Stoneridge Brazil	(204)		(680)		(798)		(1,269)
Unallocated Corporate	3,516		3,500		10,460		8,876
Total interest expense, net	$	3,604	$	3,313	$	11,039	$	9,179
Capital Expenditures:
Control Devices	$	2,914	$	2,986	$	6,018	$	6,961
Electronics	1,298		4,710		5,652		13,251
Stoneridge Brazil	484		889		2,223		2,307
Unallocated Corporate(C)	212		371		972		700
Total capital expenditures	$	4,908	$	8,956	$	14,865	$	23,219


	September 30, 2024		December 31, 2023
Total Assets:
Control Devices	$	153,043	$	159,612
Electronics	399,467		404,994
Stoneridge Brazil	57,789		66,318
Corporate (C)	453,201		419,469
Eliminations	(400,977)		(370,493)
Total assets	$	662,523	$	679,900

The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates:


	Three months ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net Sales:
North America	$	109,395	$	126,499	$	349,025	$	385,813
South America	13,219		14,168		37,084		43,332
Europe and Other	91,217		97,497		303,938		317,158
Total net sales	$	213,831	$	238,164	$	690,047	$	746,303


	September 30, 2024		December 31, 2023
Long-term Assets:
North America	$	95,612	$	92,419
South America	29,028		32,679
Europe and Other	123,470		125,412
Total long-term assets	$	248,110	$	250,510

__________________________________________________________

(A)Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation.

(B)These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

Investments	9 Months Ended
Investments	Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]
Investments	Investments In December 2018, the Company entered into an agreement to make a $10,000 investment in a fund (“Autotech Fund II”) managed by Autotech Ventures (“Autotech”), a venture capital firm focused on ground transportation technology which is accounted for under the equity method of accounting. The Company’s $10,000 investment in the Autotech Fund II will be contributed over the expected ten-year life of the fund. The Company has contributed $8,660 to the Autotech Fund II as of September 30, 2024. The Company contributed $260 and $200 to Autotech Fund II during the nine months ended September 30, 2024 and 2023, respectively. The Company did not receive distributions from Autotech Fund II during the nine months ended September 30, 2024 or 2023. The Company has a 6.7% interest in Autotech Fund II. The Company recognized losses of $752 and $141 during the three months ended September 30, 2024 and 2023, respectively. The Company recognized losses of $1,081 and $641 during the nine months ended September 30, 2024 and 2023, respectively. The Autotech Fund II investment recorded in investments and other long-term assets in the condensed consolidated balance sheets was $7,651 and $8,472 as of September 30, 2024 and December 31, 2023, respectively.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net (loss) income	$ (7,070)	$ 2,786	$ (6,126)	$ 2,171	$ (2,992)	$ (7,386)	$ (10,410)	$ (8,207)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Recently Issued Accounting Standards (Policies)	9 Months Ended
Recently Issued Accounting Standards (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2023 Form 10-K.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to their 2024 presentation in the condensed consolidated financial statements.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures", which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures," which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, companies are required to disclose additional information about income taxes paid. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is to be adopted on a prospective basis; however, retrospective application is permitted. We are currently evaluating the impact on our annual consolidated financial statement disclosures.

Revenue (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Segment and Geographical Location

The following tables disaggregate our revenue by reportable segment and geographical location(1) for the three months ended September 30, 2024 and 2023:


	Control Devices				Electronics				Stoneridge Brazil				Consolidated
Three months ended September 30,	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales:
North America	$	60,661	$	75,565	$	48,734	$	50,934	$	—	$	—	$	109,395	$	126,499
South America	—		—		—		—		13,219		14,168		13,219		14,168
Europe	—		—		77,751		82,737		—		—		77,751		82,737
Asia Pacific	12,468		13,779		998		981		—		—		13,466		14,760
Total net sales	$	73,129	$	89,344	$	127,483	$	134,652	$	13,219	$	14,168	$	213,831	$	238,164

The following tables disaggregate our revenue by reportable segment and geographical location(1) for the nine months ended September 30, 2024 and 2023:


	Control Devices				Electronics				Stoneridge Brazil				Consolidated
Nine months ended September 30,	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales:
North America	$	193,874	$	229,990	$	155,151	$	155,823	$	—	$	—	$	349,025	$	385,813
South America	—		—		—		—		37,084		43,332		37,084		43,332
Europe	—		—		264,739		269,154		—		—		264,739		269,154
Asia Pacific	36,312		37,416		2,887		10,588		—		—		39,199		48,004
Total net sales	$	230,186	$	267,406	$	422,777	$	435,565	$	37,084	$	43,332	$	690,047	$	746,303

_______________________

(1)Company sales based on geographic location are where the sale originates not where the customer is located.

Inventories (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:


	September 30, 2024		December 31, 2023
Raw materials	$	128,437	$	142,744
Work-in-progress	8,071		11,907
Finished goods	39,937		33,107
Total inventories, net	$	176,445	$	187,758

Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance

The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows:


	Notional amounts (A)				Prepaid expenses and other current assets				Accrued expenses and other current liabilities
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts	$	31,183	$	26,613	$	—	$	1,858	$	2,032	$	—

_____________________________

(A)Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars.

Schedule of Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net (Loss) Income

Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net (loss) income for the three months ended September 30 were as follows:


	(Loss) gain recorded in other comprehensive income (loss)				(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income (A)
	2024		2023		2024		2023
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(1,629)	$	67	$	(435)	$	227

_____________________________


(A)			(Losses) gains reclassified from other comprehensive income (loss) into net (loss) income recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $(142) and $54 for the three months ended September 30, 2024 and 2023, respectively. (Losses) gains reclassified from other comprehensive income (loss) into net (loss) income recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $(293) and $173 for the three months ended September 30, 2024 and 2023, respectively.

Gross amounts recorded for the cash flow and net investment hedges in other comprehensive (loss) income and in net loss for the nine months ended September 30 were as follows:


	(Loss) gain recorded in other comprehensive (loss) income				Gain reclassified from other comprehensive (loss) income into net loss (A)
	2024		2023		2024		2023
Derivatives designated as cash flow hedges:
Forward currency contracts	$	(3,257)	$	483	$	633	$	278
Interest rate swap	$	—	$	(4)	$	—	$	290


(A)			Gains reclassified from other comprehensive (loss) income into net loss recognized in SG&A in the Company’s condensed consolidated statements of operations were $109 and $66 for the nine months ended September 30, 2024 and 2023, respectively. Gains reclassified from other comprehensive (loss) income into net loss recognized in COGS in the Company’s condensed consolidated statements of operations were $524 and $212 for the nine months ended September 30, 2024 and 2023, respectively. Gains reclassified from other comprehensive (loss) income into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $0 and $290 for the nine months ended September 30, 2024 and 2023, respectively.

Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis


			September 30, 2024						December 31, 2023
			Fair values estimated using
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs		Fair value
Financial assets carried at fair value:
Forward currency contracts	$	—	$	—	$	—	$	—	$	1,858


Total financial assets carried at fair value	$	—	$	—	$	—	$	—	$	1,858

Financial liabilities carried at fair value:
Forward currency contracts	$	2,032	$	—	$	2,032	$	—	$	—


Total financial liabilities carried at fair value	$	2,032	$	—	$	2,032	$	—	$	—

Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Debt

Debt consisted of the following at September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023		Interest rates at September 30, 2024		Maturity
Revolving Credit Facility
Revolving Credit Facility	$	196,322	$	189,346	7.16	%	November 2026

Debt

Suzhou short-term credit line	—		2,113
Total debt	—		2,113
Less: current portion	—		(2,113)
Total long-term debt, net	$	—	$	—

(Loss) Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Weighted-Average Number of Shares

Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows:


	Three months ended September 30,		Nine months ended September 30,
	2024	2023	2024	2023
Basic weighted-average Common Shares outstanding	27,617,663	27,483,709	27,585,904	27,428,249
Effect of dilutive shares	—	250,400	—	—
Diluted weighted-average Common Shares outstanding	27,617,663	27,734,109	27,585,904	27,428,249

Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Changes in Accumulated Other Comprehensive (Loss) Income by Component

Changes in accumulated other comprehensive (loss) income for the three months ended September 30, 2024 and 2023 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at July 1, 2024	$	(107,589)	$	(662)	$	(108,251)
Other comprehensive income (loss) before reclassifications	8,142		(1,287)		6,855
Amounts reclassified from accumulated other comprehensive loss	—		344		344
Net other comprehensive income (loss), net of tax	8,142		(943)		7,199
Balance at September 30, 2024	$	(99,447)	$	(1,605)	$	(101,052)

Balance at July 1, 2023	$	(96,310)	$	288	$	(96,022)
Other comprehensive (loss) income before reclassifications	(6,969)		53		(6,916)
Amounts reclassified from accumulated other comprehensive loss	—		(179)		(179)
Net other comprehensive loss, net of tax	(6,969)		(126)		(7,095)
Balance at September 30, 2023	$	(103,279)	$	162	$	(103,117)

Changes in accumulated other comprehensive loss for the nine months ended September 30, 2024 and 2023 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at January 1, 2024	$	(94,256)	$	1,468	$	(92,788)
Other comprehensive loss before reclassifications	(5,191)		(2,573)		(7,764)
Amounts reclassified from accumulated other comprehensive loss	—		(500)		(500)
Net other comprehensive loss, net of tax	(5,191)		(3,073)		(8,264)
Balance at September 30, 2024	$	(99,447)	$	(1,605)	$	(101,052)

Balance at January 1, 2023	$	(103,374)	$	232	$	(103,142)
Other comprehensive income before reclassifications	95		379		474
Amounts reclassified from accumulated other comprehensive loss	—		(449)		(449)
Net other comprehensive income (loss), net of tax	95		(70)		25
Balance at September 30, 2023	$	(103,279)	$	162	$	(103,117)

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty and Recall Liability

The following provides a reconciliation of changes in product warranty and recall reserve liability:


Nine months ended September 30,	2024		2023
Product warranty and recall reserve at beginning of period	$	21,610	$	13,477
Accruals for warranties established during period	13,789		10,521
Aggregate changes in pre-existing liabilities due to claim developments	416		579
Settlements made during the period	(10,240)		(5,519)
Foreign currency translation	(1)		(386)
Product warranty and recall reserve at end of period	$	25,574	$	18,672

Business Realignment (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

Business realignment charges incurred by reportable segment were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Control Devices (A)	$	—	$	132	$	—	$	511
Electronics (B)	254		1,070		2,144		2,726

Unallocated Corporate (C)	—		—		59		1,137
Total business realignment charges	$	254	$	1,202	$	2,203	$	4,374

_____________________________________


(A)			Severance costs for the three months ended September 30, 2023 related to SG&A were $132. Severance costs for the nine months ended September 30, 2023 related to COGS and SG&A were $369 and $142, respectively.


(B)			Severance costs for the three months ended September 30, 2024 related to COGS and D&D were $140 and $114, respectively. Severance costs for the nine months ended September 30, 2024 related to COGS, SG&A and D&D were $140, $458 and $1,546, respectively. Severance costs for the three months ended September 30, 2023 related to COGS, SG&A and D&D were $30, $657 and $383, respectively. Severance costs for the nine months ended September 30, 2023 related to COGS, SG&A and D&D were $287, $2,056 and $383, respectively.


(C)			Severance related costs for the nine months ended September 30, 2024 related to SG&A was $59. Severance related costs for the nine months ended September 30, 2023 related to SG&A was $1,122. Severance related costs for the nine months ended September 30, 2023 related to D&D was $15.

Schedule of Business Realignment Charges Classified by Statement of Operations

Business realignment charges incurred, classified by statement of operations line item were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Cost of goods sold	$	140	$	30	$	140	$	656
Selling, general and administrative	—		789		517		3,320
Design and development	114		383		1,546		398
Total business realignment charges	$	254	$	1,202	$	2,203	$	4,374

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

A summary of financial information by reportable segment is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net Sales:
Control Devices	$	73,129	$	89,344	$	230,186	$	267,406
Inter-segment sales	1,160		733		2,946		2,437
Control Devices net sales	74,289		90,077		233,132		269,843
Electronics	127,483		134,652		422,777		435,565
Inter-segment sales	8,184		8,649		22,492		25,656
Electronics net sales	135,667		143,301		445,269		461,221
Stoneridge Brazil	13,219		14,168		37,084		43,332
Inter-segment sales	411		—		610		—
Stoneridge Brazil net sales	13,630		14,168		37,694		43,332
Eliminations	(9,755)		(9,382)		(26,048)		(28,093)
Total net sales	$	213,831	$	238,164	$	690,047	$	746,303
Operating Income (Loss):
Control Devices	$	2,131	$	5,488	$	8,020	$	12,649
Electronics	3,514		7,647		20,434		16,491
Stoneridge Brazil	717		1,241		880		3,483
Unallocated Corporate (A)	(6,047)		(7,864)		(25,281)		(25,809)
Total operating income	$	315	$	6,512	$	4,053	$	6,814
Depreciation and Amortization:
Control Devices	$	3,152	$	3,100	$	8,821	$	9,373
Electronics	4,030		3,521		11,794		10,488
Stoneridge Brazil	1,155		1,259		3,652		3,545
Unallocated Corporate	492		593		1,696		1,800
Total depreciation and amortization (B)	$	8,829	$	8,473	$	25,963	$	25,206
Interest Expense (Income), net:
Control Devices	$	9	$	37	$	(10)	$	120
Electronics	283		456		1,387		1,452
Stoneridge Brazil	(204)		(680)		(798)		(1,269)
Unallocated Corporate	3,516		3,500		10,460		8,876
Total interest expense, net	$	3,604	$	3,313	$	11,039	$	9,179
Capital Expenditures:
Control Devices	$	2,914	$	2,986	$	6,018	$	6,961
Electronics	1,298		4,710		5,652		13,251
Stoneridge Brazil	484		889		2,223		2,307
Unallocated Corporate(C)	212		371		972		700
Total capital expenditures	$	4,908	$	8,956	$	14,865	$	23,219


	September 30, 2024		December 31, 2023
Total Assets:
Control Devices	$	153,043	$	159,612
Electronics	399,467		404,994
Stoneridge Brazil	57,789		66,318
Corporate (C)	453,201		419,469
Eliminations	(400,977)		(370,493)
Total assets	$	662,523	$	679,900

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates:


	Three months ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net Sales:
North America	$	109,395	$	126,499	$	349,025	$	385,813
South America	13,219		14,168		37,084		43,332
Europe and Other	91,217		97,497		303,938		317,158
Total net sales	$	213,831	$	238,164	$	690,047	$	746,303


	September 30, 2024		December 31, 2023
Long-term Assets:
North America	$	95,612	$	92,419
South America	29,028		32,679
Europe and Other	123,470		125,412
Total long-term assets	$	248,110	$	250,510

__________________________________________________________

(A)Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation.

(B)These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

Revenue - Revenue by Segment and Geographical Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total net sales	$ 213,831	$ 238,164	$ 690,047	$ 746,303
North America
Disaggregation of Revenue [Line Items]
Total net sales	109,395	126,499	349,025	385,813
South America
Disaggregation of Revenue [Line Items]
Total net sales	13,219	14,168	37,084	43,332
Europe
Disaggregation of Revenue [Line Items]
Total net sales	77,751	82,737	264,739	269,154
Asia Pacific
Disaggregation of Revenue [Line Items]
Total net sales	13,466	14,760	39,199	48,004
Control Devices
Disaggregation of Revenue [Line Items]
Total net sales	73,129	89,344	230,186	267,406
Control Devices \| North America
Disaggregation of Revenue [Line Items]
Total net sales	60,661	75,565	193,874	229,990
Control Devices \| South America
Disaggregation of Revenue [Line Items]
Total net sales	0	0	0	0
Control Devices \| Europe
Disaggregation of Revenue [Line Items]
Total net sales	0	0	0	0
Control Devices \| Asia Pacific
Disaggregation of Revenue [Line Items]
Total net sales	12,468	13,779	36,312	37,416
Electronics
Disaggregation of Revenue [Line Items]
Total net sales	127,483	134,652	422,777	435,565
Electronics \| North America
Disaggregation of Revenue [Line Items]
Total net sales	48,734	50,934	155,151	155,823
Electronics \| South America
Disaggregation of Revenue [Line Items]
Total net sales	0	0	0	0
Electronics \| Europe
Disaggregation of Revenue [Line Items]
Total net sales	77,751	82,737	264,739	269,154
Electronics \| Asia Pacific
Disaggregation of Revenue [Line Items]
Total net sales	998	981	2,887	10,588
Stoneridge Brazil
Disaggregation of Revenue [Line Items]
Total net sales	13,219	14,168	37,084	43,332
Stoneridge Brazil \| North America
Disaggregation of Revenue [Line Items]
Total net sales	0	0	0	0
Stoneridge Brazil \| South America
Disaggregation of Revenue [Line Items]
Total net sales	13,219	14,168	37,084	43,332
Stoneridge Brazil \| Europe
Disaggregation of Revenue [Line Items]
Total net sales	0	0	0	0
Stoneridge Brazil \| Asia Pacific
Disaggregation of Revenue [Line Items]
Total net sales	$ 0	$ 0	$ 0	$ 0

Revenue - Narrative (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 0	$ 0
Contract liabilities	0	0
Capitalized contract acquisition costs	$ 0	$ 0

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 128,437	$ 142,744
Work-in-progress	8,071	11,907
Finished goods	39,937	33,107
Total inventories, net	$ 176,445	$ 187,758

Inventories - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Inventory amount, FIFO	$ 162,151	$ 176,033
Inventory amount, weighted average cost	$ 14,294	$ 11,725

Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Feb. 18, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreign currency transaction (gains) losses	$ (320)	$ (1,359)	$ (646)	$ 2,099
Interest expense, net	(3,604)	$ (3,313)	(11,039)	(9,179)
Cash flow hedges \| Mexican Peso-Denominated Foreign Currency Forward Contracts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Notional amounts	$ 31,183		$ 31,183		$ 26,613
Cash flow hedges \| Interest rate swap
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Notional amounts						$ 50,000
Interest expense, net				$ 290

Financial Instruments and Fair Value Measurements - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Designated as Hedging Instrument - Cash flow hedges - Forward currency contracts - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Notional amounts	$ 31,183	$ 26,613
Derivative assets at fair value	0	1,858
Derivative liabilities at fair value	$ 2,032	$ 0

Financial Instruments and Fair Value Measurements - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument - Cash flow hedges - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Selling, general and administrative
Derivatives designated as cash flow hedges:
(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income	$ (142)	$ 54	$ 109	$ 66
Cost of goods sold
Derivatives designated as cash flow hedges:
(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income	(293)	173	524	212
Interest expense, net
Derivatives designated as cash flow hedges:
(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income			0	290
Forward currency contracts
Derivatives designated as cash flow hedges:
(Loss) gain recorded in other comprehensive income (loss)	(1,629)	67	(3,257)	483
(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income	$ (435)	$ 227	633	278
Interest rate swap
Derivatives designated as cash flow hedges:
(Loss) gain recorded in other comprehensive income (loss)			0	(4)
(Loss) gain reclassified from other comprehensive income (loss) into net (loss) income			$ 0	$ 290

Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair value - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets carried at fair value:
Forward currency contracts	$ 0	$ 1,858
Total financial assets carried at fair value	0	1,858
Financial liabilities carried at fair value:
Forward currency contracts	2,032	0
Total financial liabilities carried at fair value	2,032	$ 0
Level 1 inputs
Financial assets carried at fair value:
Forward currency contracts	0
Total financial assets carried at fair value	0
Financial liabilities carried at fair value:
Forward currency contracts	0
Total financial liabilities carried at fair value	0
Level 2 inputs
Financial assets carried at fair value:
Forward currency contracts	0
Total financial assets carried at fair value	0
Financial liabilities carried at fair value:
Forward currency contracts	2,032
Total financial liabilities carried at fair value	2,032
Level 3 inputs
Financial assets carried at fair value:
Forward currency contracts	0
Total financial assets carried at fair value	0
Financial liabilities carried at fair value:
Forward currency contracts	0
Total financial liabilities carried at fair value	$ 0

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Share-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-based compensation expense	$ 885	$ 1,001	$ 3,092	$ 2,272

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	9 Months Ended
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt
Total debt	$ 0	$ 2,113
Less: current portion	0	(2,113)
Total long-term debt, net	0	0
Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Revolving credit facility	$ 196,322	189,346
Debt
Interest rates	7.16%
Suzhou short-term credit line
Debt Instrument [Line Items]
Revolving credit facility	$ 0	$ 2,113

Debt - Narrative (Details) ¥ in Thousands, kr in Thousands	9 Months Ended		12 Months Ended
Debt - Narrative (Details) ¥ in Thousands, kr in Thousands	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2024 SEK (kr)	Sep. 30, 2024 CNY (¥)	Dec. 31, 2023 SEK (kr)	Dec. 31, 2023 CNY (¥)	Nov. 02, 2023 USD ($)	Jun. 05, 2019 USD ($)
Debt Instrument [Line Items]
Utilized amounts on line of credit	$ 98,000,000	$ 81,365,000
Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								$ 275,000,000	$ 300,000,000
Increase in maximum borrowing capacity of credit facility								$ 150,000,000
Debt instrument covenant default of other debt maximum amount	30,000,000
Debt instrument covenant uninsured asset losses maximum amount	30,000,000
Revolving credit facility	196,322,000		$ 189,346,000
Revolving Credit Facility \| Fourth Amended And Restated Credit Agreement
Debt Instrument [Line Items]
Capitalized deferred financing costs			332,000
Revolving Credit Facility \| Fifth Amended And Restated Credit Agreement
Debt Instrument [Line Items]
Capitalized deferred financing costs			1,915,000
Write off of deferred financing costs			309,000
Letter of Credit
Debt Instrument [Line Items]
Outstanding letters of credit	1,571,000		1,586,000
Sweden short-term credit line
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	1,969,000		1,987,000	kr 20,000		kr 20,000
Revolving credit facility	0		0
Line of credit	25,116,000			kr 255,062
Suzhou short-term credit line
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			2,818,000				¥ 20,000
Revolving credit facility	$ 0		2,113,000
Payment term extension	180 days
Credit facility, borrowing capacity	$ 8,550,000		8,453,000		¥ 60,000		¥ 60,000
Utilized amounts on line of credit	$ 0		$ 2,387,000

(Loss) Earnings Per Share - Narrative (Details) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Operating Loss Carryforwards [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	237,870	244,471	238,342
Performance Based Right to Receive Common Shares
Operating Loss Carryforwards [Line Items]
Common shares, non-vested (in shares)	612,886	612,886	425,612

(Loss) Earnings Per Share - Weighted Average Shares Outstanding Used in Calculating Basic and Diluted Net Income Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Basic weighted-average Common Shares outstanding (in shares)	27,617,663	27,483,709	27,585,904	27,428,249
Effect of dilutive shares (in shares)	0	250,400	0	0
Diluted weighted-average Common Shares outstanding (in shares)	27,617,663	27,734,109	27,585,904	27,428,249

Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 270,451	$ 277,638	$ 287,717	$ 280,942
Other comprehensive income (loss) before reclassifications	6,855	(6,916)	(7,764)	474
Amounts reclassified from accumulated other comprehensive loss	344	(179)	(500)	(449)
Other comprehensive income (loss), net of tax	7,199	(7,095)	(8,264)	25
Ending balance	271,350	273,342	271,350	273,342
Accumulated Other Comprehensive (Loss) Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(108,251)	(96,022)	(92,788)	(103,142)
Ending balance	(101,052)	(103,117)	(101,052)	(103,117)
Foreign currency translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(107,589)	(96,310)	(94,256)	(103,374)
Other comprehensive income (loss) before reclassifications	8,142	(6,969)	(5,191)	95
Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Other comprehensive income (loss), net of tax	8,142	(6,969)	(5,191)	95
Ending balance	(99,447)	(103,279)	(99,447)	(103,279)
Unrealized gain (loss) on derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(662)	288	1,468	232
Other comprehensive income (loss) before reclassifications	(1,287)	53	(2,573)	379
Amounts reclassified from accumulated other comprehensive loss	344	(179)	(500)	(449)
Other comprehensive income (loss), net of tax	(943)	(126)	(3,073)	(70)
Ending balance	$ (1,605)	$ 162	$ (1,605)	$ 162

Commitments and Contingencies - Narrative (Details) € in Thousands, R$ in Thousands, $ in Thousands			1 Months Ended				3 Months Ended		9 Months Ended
	Aug. 12, 2020 USD ($)	Aug. 12, 2020 BRL (R$)	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 BRL (R$)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 BRL (R$)
Short-term Debt [Line Items]
Groundwater remediation expense							$ 157	$ 0	$ 157	$ 125
Environmental remediation accrued undiscounted liability							265		265			$ 143
Paid capacity deposits					$ 1,000	$ 1,000
Components to be paid in 2024							3,914		3,914
Components to be paid in 2025							10,764		10,764
Components to be paid in 2026							10,764		10,764
Components to be paid in 2027							3,914		3,914
Product warranty and recall accrual							9,154		9,154			7,228
Customer claim notification			$ 32,669	€ 29,340
Long Term Supply Agreement
Short-term Debt [Line Items]
Components purchased							1,840	$ 1,252	2,662	$ 4,579
PST Eletronica Ltda \| Civil, labor and other tax contingencies
Short-term Debt [Line Items]
Loss contingency, estimate of possible loss							8,049		8,049		R$ 43,848	8,609	R$ 41,681
PST Eletronica Ltda \| CADE Fine
Short-term Debt [Line Items]
Litigation amount	$ 1,468	R$ 7,995
Letter of Credit
Short-term Debt [Line Items]
Line of credit							1,489		1,489
Accrued expenses and other current liabilities
Short-term Debt [Line Items]
Environmental remediation accrued undiscounted liability							$ 165		$ 165			$ 136

Commitments and Contingencies - Reconciliation of Changes in Product Warranty and Recall Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Product warranty and recall reserve at beginning of period	$ 21,610	$ 13,477
Accruals for warranties established during period	13,789	10,521
Aggregate changes in pre-existing liabilities due to claim developments	416	579
Settlements made during the period	(10,240)	(5,519)
Foreign currency translation	(1)	(386)
Product warranty and recall reserve at end of period	$ 25,574	$ 18,672

Business Realignment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Business Realignment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	$ 254	$ 1,202	$ 2,203	$ 4,374
Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	140	30	140	656
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	0	789	517	3,320
Design and development
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	114	383	1,546	398
Operating Segments \| Control Devices
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	0	132	0	511
Severance costs		132
Operating Segments \| Control Devices \| Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Severance costs				369
Operating Segments \| Control Devices \| Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs				142
Operating Segments \| Electronics
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	254	1,070	2,144	2,726
Operating Segments \| Electronics \| Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Severance costs	140	30	140	287
Operating Segments \| Electronics \| Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs		657	458	2,056
Operating Segments \| Electronics \| Design and development
Restructuring Cost and Reserve [Line Items]
Severance costs	114	383	1,546	383
Unallocated Corporate
Restructuring Cost and Reserve [Line Items]
Total business realignment charges	$ 0	$ 0	59	1,137
Severance costs			$ 59
Unallocated Corporate \| Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs				1,122
Unallocated Corporate \| Design and development
Restructuring Cost and Reserve [Line Items]
Severance costs				$ 15

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,413	$ 2,270	$ 2,987	$ 3,049
Effective income tax rate	(93.30%)	51.10%	(40.20%)	(59.10%)

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Net Sales:
Net sales	$ 213,831	$ 238,164	$ 690,047	$ 746,303
Operating Income (Loss):
Total operating income	315	6,512	4,053	6,814
Depreciation and Amortization:
Total depreciation and amortization	8,829	8,473	25,963	25,206
Interest Expense (Income), net:
Interest Expense (Income), net:	3,604	3,313	11,039	9,179
Capital Expenditures:
Total capital expenditures	4,908	8,956	14,865	23,219
Total Assets:
Total assets	662,523		662,523		$ 679,900
Control Devices
Net Sales:
Net sales	73,129	89,344	230,186	267,406
Electronics
Net Sales:
Net sales	127,483	134,652	422,777	435,565
Stoneridge Brazil
Net Sales:
Net sales	13,219	14,168	37,084	43,332
Inter-segment sales \| Control Devices
Net Sales:
Net sales	1,160	733	2,946	2,437
Inter-segment sales \| Electronics
Net Sales:
Net sales	8,184	8,649	22,492	25,656
Inter-segment sales \| Stoneridge Brazil
Net Sales:
Net sales	411	0	610	0
Operating Segments \| Control Devices
Net Sales:
Net sales	74,289	90,077	233,132	269,843
Operating Income (Loss):
Total operating income	2,131	5,488	8,020	12,649
Depreciation and Amortization:
Total depreciation and amortization	3,152	3,100	8,821	9,373
Interest Expense (Income), net:
Interest Expense (Income), net:	9	37	(10)	120
Capital Expenditures:
Total capital expenditures	2,914	2,986	6,018	6,961
Total Assets:
Total assets	153,043		153,043		159,612
Operating Segments \| Electronics
Net Sales:
Net sales	135,667	143,301	445,269	461,221
Operating Income (Loss):
Total operating income	3,514	7,647	20,434	16,491
Depreciation and Amortization:
Total depreciation and amortization	4,030	3,521	11,794	10,488
Interest Expense (Income), net:
Interest Expense (Income), net:	283	456	1,387	1,452
Capital Expenditures:
Total capital expenditures	1,298	4,710	5,652	13,251
Total Assets:
Total assets	399,467		399,467		404,994
Operating Segments \| Stoneridge Brazil
Net Sales:
Net sales	13,630	14,168	37,694	43,332
Operating Income (Loss):
Total operating income	717	1,241	880	3,483
Depreciation and Amortization:
Total depreciation and amortization	1,155	1,259	3,652	3,545
Interest Expense (Income), net:
Interest Expense (Income), net:	(204)	(680)	(798)	(1,269)
Capital Expenditures:
Total capital expenditures	484	889	2,223	2,307
Total Assets:
Total assets	57,789		57,789		66,318
Eliminations
Net Sales:
Net sales	(9,755)	(9,382)	(26,048)	(28,093)
Total Assets:
Total assets	(400,977)		(400,977)		(370,493)
Unallocated Corporate
Operating Income (Loss):
Total operating income	(6,047)	(7,864)	(25,281)	(25,809)
Depreciation and Amortization:
Total depreciation and amortization	492	593	1,696	1,800
Interest Expense (Income), net:
Interest Expense (Income), net:	3,516	3,500	10,460	8,876
Capital Expenditures:
Total capital expenditures	212	$ 371	972	$ 700
Total Assets:
Total assets	$ 453,201		$ 453,201		$ 419,469

Segment Reporting - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 213,831	$ 238,164	$ 690,047	$ 746,303
Long-term assets:
Total long-term assets	248,110		248,110		$ 250,510
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	109,395	126,499	349,025	385,813
Long-term assets:
Total long-term assets	95,612		95,612		92,419
South America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	13,219	14,168	37,084	43,332
Long-term assets:
Total long-term assets	29,028		29,028		32,679
Europe and Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	91,217	$ 97,497	303,938	$ 317,158
Long-term assets:
Total long-term assets	$ 123,470		$ 123,470		$ 125,412

Investments (Details) - USD ($)	3 Months Ended		9 Months Ended		70 Months Ended
Investments (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Contribution			$ 260,000	$ 200,000
Income (loss) from equity method investments	$ (752,000)	$ (141,000)	(1,081,000)	(641,000)
Investments and other long-term assets, net	54,103,000		54,103,000		$ 54,103,000	$ 46,980,000
Autotech Ventures
Schedule of Equity Method Investments [Line Items]
Investment commitment	$ 10,000,000		$ 10,000,000		10,000,000		$ 10,000,000
Expected life of fund			10 years
Contribution			$ 260,000	200,000	$ 8,660,000
Distributions received			$ 0	0
Ownership percentage	6.70%		6.70%		6.70%
Income (loss) from equity method investments	$ (752,000)	$ (141,000)	$ (1,081,000)	$ (641,000)
Investments and other long-term assets, net	$ 7,651,000		$ 7,651,000		$ 7,651,000	$ 8,472,000

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