Robert Smith's questions to STANDARD MOTOR PRODUCTS (SMP) leadership • Q2 2025
Question
Robert Smith of the Center for Performance Investing requested more detail on Nissens' year-over-year performance and category strengths. He also asked for clarification on the contents of the 'all other' subcategory within Engineered Solutions and inquired about the potential for refinancing debt amid expectations of lower interest rates.
Answer
Chair, CEO & President Eric Sills explained that Nissens is tracking up mid-to-high single digits, with its newer 'engine efficiency' category growing fastest. He clarified that 'all other' in Engineered Solutions primarily consists of powersports, along with lawn and garden and hydraulics. CFO Nathan Iles addressed the debt question, noting the company will monitor rates but had already locked in attractive fixed rates via swaps during the Nissens acquisition refinancing.