Jack Weisenberger

Jack Weisenberger from ROTH Capital Partners, LLC asked about the timing and segment-specific impact of tariffs and related price increases. He also questioned how the Nissens business performed against expectations, the overall health of the European aftermarket, and the progress on product synergies between SMP and Nissens.

Answer

CFO Nathan Iles stated that higher tariff costs were incurred in Q2 but are expected to be fully offset by pricing in the second half of the year, declining to give segment-specific details. Chair, CEO & President Eric Sills added that the Nissens acquisition is exceeding expectations and outperforming the European market by gaining share and launching new categories. He characterized 2025 as a preparatory year for deeper integration and product portfolio expansion.

Jack Weisenberger from Roth Capital Partners, LLC asked about the timing of tariff impacts and requested a segment-level breakdown of price increases. He also inquired about the performance of the newly acquired Nissens business relative to expectations, the health of the European aftermarket, and the progress on product synergies.

Answer

CFO Nathan Iles addressed the tariff timing, stating that some costs were incurred in Q2 but are expected to be fully offset in the second half of the year, while declining to provide segment-specific pricing details. CEO Eric Sills added that the Nissens acquisition is exceeding expectations and outperforming the European aftermarket, driven by its nondiscretionary product mix and market share gains. He noted that while 2025 is a preparation year for integration, a quick win was achieved by adding over 800 new SKUs to the Nissens North American customer base.

Jack Weisenberger from Roth Capital Partners, LLC asked about the timing of tariff impacts and requested a segment breakdown of where price increases are occurring. He also inquired about the performance of the Nissens business relative to expectations, the health of the European aftermarket, and the progress on product synergies.

Answer

CFO Nathan Iles stated that some tariff costs were incurred in Q2, but they expect these to be mostly offset in the second half of the year, declining to provide segment-specific details. Chair, CEO & President Eric Sills added that the Nissens acquisition is exceeding expectations and outperforming the European market by gaining share. He noted that 2025 is a preparatory year for integration, with a focus on positioning for future product portfolio expansion.