Jim. Thanks,
quarter X. $XXX were Page Fourth sales to Turning million.
were As of markets. all sales expected, impacted by our major continued significantly across pressure end
was and $X SMARTt Tachograph $XX Fourth significantly X.X% declines. program, launched the market the grew growth the of and revenue the of third However, end our we other quarter quarter, particularly EBITDA quarter over Volvo quarter revenue for over MirrorEye specifically, revenue, saw growth from offset impacted from in quality-related Stoneridge-specific drivers to $X.X largest or yet which costs the Elevated newly helped million in warranty prior More adjusted quarter million. expectations. million versus sales.
manufacturing hardware inventory-related improved specific net improvements been have management, were offset related million. impact which headwinds More and to through incidents software. modifications contained partially supplier integrated performance these costs or However, and of these products, to $X.X specifically, process for quality and manufacturing a
were as reimbursements. delayed Finally, primarily resulting a fourth higher quarter as well due engineering to design-related than $X.X tooling from expected, supplier expenses previously change timing changes million of customer in
to North production be of the sales production customers. end Page vehicle year or to adjusted we declined XX% $X.X the recognize by key or program due lower result the by expect According a in declined the X.X% Devices. basis We sales versus Control to points XXX largest data, latest approximately year, decline decline. Devices operating of Full of Xx portion market to income million required as for year, specific to or costs primarily our X.X%. of once declines American funding. full prior year-over-year domestic North IHS engineering to meet the metrics American approximately able production our financial sales customer the compared the had XX a X X.X% million prior primarily of these passenger offset the hurdles and summarizes year XXXX of volumes $XXX.X Control of
basis We in improvement a operational point and focus costs. continue million quality-related performance, in costs XXX material on to improved a driving $X.X improvement
to we Looking production expect continue volumes North decline moderately XXXX, in into to America.
year. an are additional are that coming performance there Devices of Additionally, for couple programs on put that Control top line a to this pressure will end
relative sales to a are to year this expecting As Control Devices last. result, decline we
and continue focus to things drive on performance. material will we control costs and improvement can the manufacturing in We
a quality-related growth approximately year. the As a sales sales year the a well key $XXX.X as X.X%, improvement summarizes factors, stable Stable margin in end by revenue cost Page in are outperformed offset of this primarily Stoneridge-specific basis improvement. reduced segment. and Electronics to point costs direct North labor, a profile decline specific our as Full markets growth improvements, which result, resulting performance markets, operating year. $X.X average a This operating Europe we in America. of well flat incremental we Included On vehicle commercial despite with XX% margin was as X.X% Electronics. decline prior our for Gross contributed of SMARTX XX were the including significant as modest million year, approximately revenue performance the compared line of XX revenue. impacting material basis costs tachograph in metrics weighted XX.X%. OEM financial $X.X million we the related was the and prior the expecting decline by our MirrorEye points increased remained million end result was by during driven year programs in expect of onetime that by from in incremental XXX a to distressed including suppliers decline in a to as
We on continue XXXX. in significant expect issues to and focus improvement these
end of vehicle revenue points, OEM applications. for lower to on primarily Stoneridge in by driven primarily by year financial reduced MirrorEye were with approximately Page driven adjusted growth tachograph, sales, the South specific declined summarizes launch relatively SMARTX leverage year offset primarily macroeconomic our by costs. full $XX.X operating declined strong XXX key our electronics, and fixed Brazil. Brazil's by approximately lower million, metrics annualization a Full Stoneridge commercial XXXX, While challenges cost performance America. sales basis continued continued margin both year-over-year, and in expecting which SG&A flat OEM and aftermarket we by on market driven partially XX expect programs are we
continue with portfolio customers. continue our growth local to and our to is our to expansion expand support business. our as Brazil critical growth which closely revenue global utilize global global to further shift expect center, our initiatives more will we effectively engineering OEM cost and in support XXXX margin in programs align We a Brazil to we
Turning to Page XX.
the free alone. flow a cash $XX.X was million including earlier discussed This XXXX. working Jim million $XX.X to this net year, reducing fourth reduction with we on generated an continued significant million million in the a our $XX.X compared focus is by on year in improvement reduction capital, driven which of during inventory improvement As the quarter in $XX.X call,
our working improvement XXXX. in we remain initiatives, expecting key on continued we focused capital As are
on to announced Based we to compliance Xx With expect in to and end liquidity credit and leverage interest ratios the also with confident the X.Xx X.Xx the a guidance, coverage interest coverage by returned covenant an between ample expect that ratio facility ratio quarter provide modified ratios. covenants XXXX the compliant in amendment conditions. We XXXX. covenant fourth existing leverage leverage our of remain net company this through and macroeconomic operate relief amendment, amended the of quarter debt has the X.Xx a our ratio financial flexibility to of XXXX. third The and our we current the and a are year to
This XX. Slide are morning, guidance. year XXXX full issuing to Turning our we
to We sales of $XXX are $XXX million. million expecting
improvement progress material a XX.XX%, to in manufacturing initiatives, approximately a basis We on expect drive cost costs improvement and quality-related improvement is continued XXX point which our margin midpoint of versus to XXXX. gross performance
margin based income midpoint expect outlined. basis XX We points improve a operating by the of I to X% improvement on just gross to
approximately of EBITDA and million expect $X to midpoint X.X%. an margin expansion these to improvements a $XX margin We of drive million of EBITDA
XXXX, expectations our benchmark this are we over for Finally, end on put and to as is focus improvement for overall $XX XXXX, year. $XX approximately relative to $XX when to our use Typically, balances million IHS XXXX. flow that approximately improvement. suggesting average cash EBITDA million reduced additional weighted revenue inventory In earnings end performance. weighted by Slide improved be are we in average expecting drive we capital significant year, working IHS and to free of we OEM XXXX million, flow a a market markets will introducing detail. inventory outlines inventory continue in to guidance continued we flat cash and as XX free this Similar
based volume has last to year. That the However, view progresses. by to are on said, upside year production over we OEM there production, guidance customer as our be materialize current decline expecting approximately X.X% could forecasted, of IHS should our as
XXXX, MirrorEye As In or another for strong resulting this are will MirrorEye $XXX we growth grow million in expecting $XX previously, XX% total MirrorEye. Jim that approximately million year by approximately total, expect over we of year. outlined sales of approximately
partially by programs revenue end $XX couple the of for expect approximately a growth XXXX. that be revenue $XXX in XXXX. drivers will million of offset MirrorEye relative in revenue of million to a We These midpoint result in of contributing XXXX decline
on $X we $X in in vast eliminated incentive contribution driving in with of Similarly, target approximately a Moving majority The slight year-over-year. EBITDA. drives compensation programs million XXXX XXXX, decline expectation headwind a our to million. the to revenue of headwind the return that
have Improvement of costs to distressed incurred As contribute discussed the call, we elimination of improvement $XX expected supplier-related reducing well this throughout XXXX areas material million quality-related in onetime on focused in as we improving costs remain is and the these costs. as year.
incremental Finally, improve overall manufacturing corporate savings to to initiatives. Overall, performance. Jim our structure are as an $X structure continued we related our and our to on both earlier, cost we have discussed million these in expecting focus reduce
will other increases increases cost continue particularly several customer mitigate may the to Similar we years, as occur. pricing impacts and monitor strategies or to relates supply Mexico. implement chain tariffs raw potential the cost enacted over it Finally, previously material-related to we that any to of tariffs, last
impacts operating slight costs we In and incremental the in EBITDA to policies to are decline historically. a EBITDA we to monitor to that improvement our any done XXXX midpoint continue continued our quickly shifts have for improved as ensure will and revenue significantly drive of We performance act summary, in million. in guidance on to we expecting potential $XX business macroeconomic offset
the of and expecting revenue cadence the we second half. first are even of to split relates it As an between guidance, our
to sales SMARTX XXXX first revenue as quarter. expecting slightly off quarter fourth be quarter a of below are We record come the of
cost of expenses year, after We to weighted continued in improvements the be the the are engineering MirrorEye half Daimler driven Volvo programs expecting by of and ramp-up reduced the EBITDA second of to North and structural more America. launches
the provide of out in are EBITDA quarter targets. short- be first XXXX. that our basic assumptions approximately We quarter framework the with to Slide the line fourth for and XX lays expecting long-term
we America for targeting are of First, million, revenue represent primarily XXXX. expectation which commercial by XX% would versus North IHS growth OEM in Growth to current our looking based least at expected forecast. emissions new at our in is particularly in of production, be expectations of in $XXX XXXX, driven on This midpoint is advance X.X% strong end average weighted XXXX. markets vehicle regulations
launching continued primarily year year. strong a market, expansion America programs this driven expansion MirrorEye are we to will of the expecting in addition continued our In North by as annualize next programs
rates in are expecting and contribute in our to take business strong Europe to XXXX. fleet revenue in We incremental growth continued MirrorEye
additional which detail we trailer this business, We and control for we and growth to connected off-highway growth, in issue guidance. our in strong our growth opportunities of have XXXX. and XXXX very Overall, including growth our our expecting closer growth formally in get the sensor aftermarket our as including actuation businesses, will quantify we are year in in revenue more end activities devices, programs and
earnings as that our an X%. historical EBITDA margin million expansion expected and growth contribution We EBITDA our that at least to significant drive $XX represent will would growth XXXX, at Based which on well. we will least in expect improve expect margin, of
contribution-based have the our grow. we as improvement target execute material costs will as to activities, we ability to quality-related will of on this reduced drive improvement outperform focus continue operational cost on to and continue We pipeline
our categories. beyond XXXX, growth continued are product Looking we expecting strong in key
outperformance we and previous have driven in on pipeline, awarded programs, including the both and expanding our market outlined new detection program leak We return expect by Devices Control will that to calls. content module
trailer of as the expecting systems are up. the expansion to continued products in to and market programs off-highway continued our products aftermarket this the market, expect in year outpace ramp we our mature continue and MirrorEye camera-based connected growth. We adoption of Similarly, with safety they launch the
in expect by approximately a growth Based billion annual result these to expect long-term we XX%. representing growth We drivers almost compound billion to revenue $X.XX targets, to of our XXXX, X-year X.X% our $X.X with on $XXX margin. of revenue rate EBITDA to $XXX of million, which we of With XX% growth, $XXX EBITDA historical approximately in contribution line to more XXXX. million is targeting million contribution XX% than this in are
Turning key to points, Page XX. to setting and In costs reduced strong against XXXX, In performance average execute our direct markets material our continue X%. the summary, priorities XXXX, weighted points outperformed OEM end throughout we we costs in up future. basis basis XXX improved by labor by by XXX
focus our forward. our $XX year-over-year, expand by cash free driven resulted market share content million. portfolio of to performance going has $XX Stoneridge a inventory on to flow opportunities of and a products Additionally, reduction continue and of in strong cash improvement growth million
both to that result, expect long and this returns, and significantly of the expansion that, continued weighted execution the our a will With in drive markets, growth, with our open long-term shareholder We positioned term. along strong short the earnings to call expand questions. well and outpace priorities, Stoneridge significant value. key earnings as end shareholder will our operational remains drive I average
