Investing.com • Gurufocus Standard Motor Products: Quietly Building A Global Aftermarket Position
01/07/2026 04:38 AM • Standard Motor Products (SMP) has transformed into a global aftermarket player following its $388 million acquisition of Nissens in Q4 2024. The company benefits from aging vehicle fleets requiring non-discretionary replacement parts and has expanded into thermal management systems relevant across ICE, hybrid, and EV platforms. Q2 2025 results showed strong performance with gross profits up 36% to $151 million, and management raised full-year revenue guidance to low 20s. The company trades at 8.9x EV/EBITDA, appearing undervalued compared to peers, with fair value estimated at 9-9.5x EV/EBITDA, suggesting 17.6% upside potential.
SMP - Strong Q2 2025 results with 36% gross profit growth, successful Nissens integration expanding global reach and margins, raised full-year guidance, improved cash flows, and valuation appears discounted at 8.9x EV/EBITDA versus peers at 10.85x. Strategic positioning for long-term aftermarket demand and EV transition provides compelling upside.