Standard Motor Products, Inc.

Good day, everyone, and welcome to the Standard Motor Products third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note, today's call will be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Tony Crisello, Vice President of Investor Relations. Please go ahead.

Thank you, Nikki. Good morning, everyone, and thank you for joining us on Standard Motor Products' third quarter 2025 earnings conference call. With me today are Larry Sills, Chairman Emeritus, Eric Sills, Chairman and Chief Executive Officer, Jim Burke, Chief Operating Officer, and Nathan Isles, Chief Financial Officer. On our call today, Eric will give an overview of our performance in the quarter, and Nathan will then discuss our financial results. Eric will then provide some concluding remarks and open the call up for Q&A. Before we begin this morning, I'd like to remind you that some of the material that we'll be discussing today may include forward-looking statements regarding our business and expected financial results. When we use words like anticipate, believe, estimate, or expect, these are generally forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us and certain assumptions made by us and we cannot assure you that they will prove correct. You should also read our filings with the Securities and Exchange Commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements. I'll now turn the call over to Eric Sills, our CEO.

Well, thank you, Tony, and good morning, everyone, and welcome to our third quarter earnings call. Overall, we are quite pleased with our results as the strong momentum from the first half has largely continued. From a top-line perspective, we posted growth of nearly 25%, and while the majority of this growth was from the addition of our newly acquired Nissans business, the legacy business was up nearly 4%. Due to the strength of our first three quarters, we have decided to increase our top-line expectations as well as to tighten our EBITDA guidance to the upper end of our previous range, and Nathan will provide the details. I'll now review each business separately, starting with the North American aftermarket, which is comprised of two operating segments, vehicle control and temperature control. Vehicle control sales were down 1.6 against a difficult comparison as last year's third quarter increased 5%. Looking closer, two of the three product lines were essentially flat while all of the backslide was in our wire set business, which is a product category in secular decline. Generally speaking, there will always be some volatility quarter to quarter based on customer order patterns, timing of pipelines, and so on. And so we believe a key metric is customer POS as it reflects true market demand for our product. POS for vehicle control continued the positive trend it has shown all year and was up mid-single digits in a quarter for our large accounts. This reflects the non-discretionary and heavily DIFM nature of our categories and the brand acceptance by the professional shops making the purchasing decisions. Turning to our temperature control division, robust sales continued, up nearly 15% over last year. Year to date, the segment is now up more than 13% against one of the hottest on record. The air conditioning season seems to be elongating, starting earlier and ending later. This year, several of our customers anticipated this and got their preseason orders on their shelves ahead of the season, And this began their replenishment cycle sooner, and they never lost a beat. I do also believe that our customers are gaining share as they do well with our recognized brands. And generally speaking, across both of our aftermarket segments, we continue to enjoy strong partnerships with our customers and strong brand penetration with the professional installers. Next, I'll speak about our newest aftermarket segment, Nissan's Automotive, which has been a part of S&P since last November. Sales remain strong in the quarter, contributing nearly $85 million in revenue as they continue to outperform in their markets. We believe their ongoing success is based on many of the same reasons why we do well here. First, they share many of the same non-discretionary categories, which tend to remain stable in difficult economic times. But moreover, their strong brand recognition, well-received go-to-market strategy, and consistent execution has allowed them to grow market share and expand into new categories. On the integration front, we continue to work together in developing meaningful synergies. We began our efforts focused on cost savings and are on track to achieve our previously stated targets, and we are now seeking growth opportunities through cross-selling our complementary categories on both sides of the ocean. And while we are just getting started, we see a lot of potential. Next, I'll address our non-aftermarket segment, engineered solutions. After a few quarters of sagging sales, demand has flattened out, and we ended our quarter down a modest 0.3%. We have always known and discussed that this business is prone to more cyclicality than the aftermarket, and while we can expect some volatility period to period, we believe that the longer-term trends are favorable as we continue to see a robust pipeline of new business opportunities, and we believe that it provides a nice complement to our aftermarket business with valuable synergies. Lastly, let me speak briefly about the current tariff landscape. While difficult to fully predict, we believe that we have entered a more stable environment. In the third quarter, our tariff-related expenses were largely offset by pricing, and go forward, we expect this to continue. While we are still awaiting certain trade agreements to be finalized, we believe that our diverse global footprint will continue to provide us with a competitive advantage. As previously stated, about half of what we sell in the U.S. is produced in North America and is largely tariff free. The balance is roughly split between China and lower tariffed regions such as Europe. We therefore believe our exposure is less than many with tariff inflation in the quarter in the low single digits. It's worth reiterating that as most of our products are non-discretionary and as product decisions are typically made by professional repair facilities, They are relatively price inelastic at the end consumer as our sell-through confirms. So when you put all these moving pieces together, we are very pleased with the quarter's financial results and with our ability to execute on our initiatives during complex times. Let me hand this over to Nathan, who will provide the details.