Financial Analysis

Business Combinations Acquisition of Nissens Automotive On November 1, 2024, we acquired all the issued and outstanding shares of European automotive aftermarket parts supplier, AX V Nissens III ApS (now known as SMP Nissens III ApS) and its direct and indirect subsidiaries (Nissens Automotive) for 366.8 million (approximately $397.1 million), the purchase price consideration, from Nordic private equity firm, Axcel V K/S, and the Nissen family. The acquired Nissens Automotive business was paid for with cash funded by borrowing from our revolving credit facility and term loans, under the 2024 Credit Agreement. The acquisition of Nissens Automotive, a leading European supplier of thermal management and engine efficiency products for the automotive aftermarket, aligns with our strategy to become an aftermarket leader in North America and Europe across our key product categories. Through this acquisition, we will take advantage of collaboration for growth through cross-selling opportunities as well as bi-directional synergies with significant savings potential. The acquired Nissens Automotive business is a reportable operating segment. We determined the fair value of acquired intangible assets using the multi-period excess earnings method and the relief-from-royalty method under the income approach for customer relationships and trade names, respectively. These methods generally forecast expected future net cash flows discretely associated with each of the identified intangible a …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Warranties We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. Accruals for estimated product warranty claims are included in accrued customer returns on the consolidated balance sheet. The following table provides the changes in our product warranties (in thousands): December 31, 2025 2024 Balance, beginning of period $ 24,715 $ 21,134 Liabilities accrued for current year sales 127,055 134,831 Settlements of warranty claims (124,209) (131,249) Balance, end of period $ 27,561 $ 24,715 Change of Control Arrangements We have a change in control arrangement with one key officer. In the event of a change of control (as defined in the agreement), the executive will receive severance payments and certain other benefits as provided in his agreement. Asbestos In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation in the accompanying consolidated statements of operations. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows (in thousands): December 31, 2025 2024 2024 Credit Agreement Multi-currency revolver $ 298,426 244,171 U.S. dollar term loan 188,771 198,287 Euro term loan 110,855 102,908 Other 20,663 16,948 Total debt $ 618,715 $ 562,314 Current maturities of debt 51,988 $ 27,117 Long-term debt 566,727 535,197 Total debt $ 618,715 $ 562,314 (a) Weighted average interest rate, adjusted for the impact of interest rate swap agreements, was 4.8% and 5.6% at December 31, 2025 and 2024 , respectively. Interest rates primarily consist of Term SOFR for borrowings in U.S. dollars and the Euro Interbank Offered Rate (""EURIBOR"") for borrowings in euros. The average daily alternative base rate swingline loan balance was $1.5 million and $0.7 million during the years ended December 31, 2025 and 2024 , respectively. (b) Amounts are shown net of unamortized deferred financing costs of $1.9 million and $2.7 million at December 31, 2025 and 2024, respectively . Term Loans and Revolving Credit Facilities In May 2024 and July 2024, the Company amended it's then-existing Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (""2022 Credit Agreement""), to transition from the Canadian Dollar Offered Rate to the Canadian Overnight Repo Rate Average for benchmark borrowings denominated in Canadian dollars and to provide for a new $125 million term loan and the use of funds availab …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes consolidated net sales by major product group within each operating segment (in thousands): Year Ended December 31, 2025 2024 2023 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 486,203 $ 467,460 $ 450,180 Electrical and Safety 241,938 229,361 221,782 Wire Sets and Other 57,251 65,739 65,970 Total Vehicle Control 785,392 762,560 737,932 Temperature Control AC System Components 316,781 274,926 237,756 Other Thermal Components 109,586 105,162 99,998 Total Temperature Control 426,367 380,088 337,754 Nissens Automotive Air Conditioning 126,727 9,214 Engine Cooling 126,389 19,287 Engine Efficiency 52,261 7,244 Total Nissens Automotive 305,377 35,745 Engineered Solutions Light Vehicle 84,887 91,548 92,701 Commercial Vehicle 81,239 89,171 79,376 Construction/Agriculture 35,618 35,832 41,665 All Other 72,740 68,905 68,844 Total Engineered Solutions 274,484 285,456 282,586 Intersegment sales (462) Total $ 1,791,158 $ 1,463,849 $ 1,358,272 The following tables provide disaggregation of net sales information by geographic area within each operating segment (in thousands): Year Ended December 31, 2025 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total United States $ 700,098 $ 407,745 $ 16,210 $ 149,110 $ (462) $ 1,272,701 Europe, excluding Poland 877 102 207,030 48,841 256,850 Canada 38,113 16,831 364 33,320 88,628 Poland 35 70,366 6,578 76,979 Mexico 41,248 61 77 10,854 52,240 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation Plans Our stock-based compensation program is designed to attract and retain employees while also aligning employees interests with the interests of our shareholders. In addition, members of our Board of Directors participate in our stock-based compensation program in connection with their service on our board. In May 2025 our Shareholders approved the Standard Motor Products, Inc. 2025 Omnibus Incentive Plan (the Plan) which supersedes the 2016 Omnibus Incentive Plan, as amended (the 2016 Plan). The Plan will terminate in May 2035, unless terminated sooner as provided for within the Plan. The Plan permits the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, cash-based awards, and other stock-based awards. The maximum number of shares that may be issued under the Plan is 1,050,000, subject to adjustment as provided under the Plan. At December 31, 2025, there were 773,511 shares of common stock available for future grants. Awards previously granted under the 2006 and 2016 Omnibus Incentive Plans remain outstanding, while shares not yet granted under these plans are not available for future issuance. We account for our stock-based compensation plans using grant-date fair value, net of estimated forfeitures, to measure the cost of employee services received in exchange for an award of equity instruments. The grant-date fair value of th …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability. The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments recorded at fair value (in thousands): Fair Value December 31, 2025 December 31, 2024 Hierarchy Level Fair Value Carrying Amount Fair Value Carrying Amount Deferred compensation 1 27,511 27,511 26,333 26,333 Short-term investments 2 6,956 6,956 Cash flow hedge interest rate swaps 2 2,587 2,587 5,409 5,409 The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The fair value of our cas …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets We completed our annual impairment test of goodwill and indefinite-lived intangible assets as of December 31, 2025. As allowed under the guidance, we elected to perform quantitative impairment tests of goodwill related to our Nissens Automotive and Engineered Solutions operating segments and our Nissens tradename of December 31, 2025. We performed qualitative impairment assessments for goodwill related to all our other operating segments and other intangible assets and concluded that it was not more likely than not that the fair value of any of our reporting units was less than carrying value, therefore no quantitative impairment tests were required. Based on the results of the tests, there was no goodwill impairment as of December 31, 2025. While we concluded that we did not have a goodwill impairment charge as of December 31, 2025, and we do not believe that future impairments are probable, we will need to maintain the current ongoing performance levels at each of our reporting units in future periods to sustain their goodwill and indefinite-lived intangible assets carrying values. Goodwill Changes in the carrying values of goodwill by reporting unit during the years ended December 31, 2025 and 2024 are as follows (in thousands): Vehicle Control Temperature Control Engineered Solutions Nissens Automotive Total Goodwill as of December 31, 2023 $ 90,806 $ 12,730 $ 31,193 $ $ 134,729 Acquisition of Nissens Automotive 112,194 112,194 Foreign …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Earnings from continuing operations before income taxes consists of the following (in thousands): Year Ended December 31, 2025 2024 2023 Domestic $ 105,356 $ 71,742 $ 60,780 Foreign 5,167 2,247 20,936 Total $ 110,523 $ 73,989 $ 81,716 The provision (benefit) for income taxes attributable to continuing operations consists of the following (in thousands): Year Ended December 31, 2025 2024 2023 Current tax expense (benefit) Domestic federal $ 15,650 $ 17,426 $ 13,832 Domestic state and local 1,951 2,335 1,590 Foreign 22,439 11,254 9,224 Total current tax expense 40,040 31,015 24,646 Deferred tax expense (benefit) Domestic federal (3,919) (7,848) (4,926) Domestic state and local (1,031) (1,688) (843) Foreign (4,473) (2,094) (509) Total deferred tax expense (9,423) (11,630) (6,278) Total income tax expense (benefit) Domestic federal 11,731 9,578 8,906 Domestic state and local 920 647 747 Foreign 17,966 9,160 8,715 Total income tax expense $ 30,617 $ 19,385 $ 18,368 Reconciliations between taxes at the U.S. federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands): Year Ended December 31, 2025 2024 2023 Amount Rate Amount Rate Amount Rate U.S. federal statutory tax $ 23,210 21.0 % $ 15,538 21.0 % $ 17,160 21.0 % Effect of cross-border tax laws Global intangible low taxed income (GILTI) 2,986 4.0 3,070 3.7 U.S. taxation of Mexican disregarded entities 1,972 1.8 1,871 2.5 1, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to nine years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments, as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material. The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of the acquisition (in thousands, except where otherwise indicated): Year Ended December 31, Balance Sheet Information 2025 2024 Assets Operating lease right-of-use assets $ 105,178 $ 109,899 Liabilities Sundry payables and accrued expenses $ 21,990 $ 19,992 Noncurrent operating lease liabilities 93,381 98,214 Total operating lease liabilities $ 115,371 $ 118,206 Weighted Average Remaining Lease Term 6.9 years 7.7 years Weighted Average Discount Rate 5.1% 5.0% Year Ended December 31, 2025 2024 Lease Expense Operating lease expense $ 24,701 $ 19,993 Variable and other lease expense (a) 7,240 3,907 Total lease costs $ 31,941 $ 23,900 (a) Relates to non-lease components such as maintenance, prop …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 270): Improvements to Income Tax Disclosures. This accounting standards update improves transparency and decision making usefulness of income tax disclosures primarily with the expansion of the: a. annual income effective tax rate reconciliation to include disclosure of (i) eight specific categories of rate reconciling items; (ii) additional information for reconciling items that meet or exceed a quantitative threshold; and (iii) expand the required disclosures to include reconciling percentages as well as reported amounts; and b. annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions. The ASU is effective for annual reporting periods beginning after December 15, 2024, and as such we have expanded our disclosures in Note 19, ""Income Taxes"" of the notes to our consolidated financial statements with full retrospective application to all prior periods presented. Segment Reporting In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This accounting standards update improves segment disclosure requirements, primarily through expanding the disclosures to include significant segment expenses incurred by the business. To achieve these disclosures the following items …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

15. Employee Benefits We maintain various defined contribution plans, which include profit sharing, and provide retirement benefits for substantially all of our employees. Contributions to the plans, which are typically paid in cash to the plans in March of the following year, are as follows (in thousands): Year ended December 31, U.S. Defined Contribution 2025 $ 7,338 2024 10,314 2023 10,510 We maintain a defined contribution Supplemental Executive Retirement Plan for key employees. Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees. In March 2025 and 2024 , contributions of $0.3 million and $0.6 million were made related to calendar years 2024 and 2023 , respectively. As of December 31, 2025, we have recorded an obligation of $0.5 million for 2025. We have an Employee Stock Ownership Plan and Trust (ESOP) for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Restructuring Expenses Separation Program In 2024 we offered a voluntary retirement incentive package of severance and other benefit enhancements to eligible employees in the United States and Canada as part of our commitment to optimizing our cost structure and providing professional development opportunities to our employees. Later in 2024 we expanded the program to include involuntary separations. The voluntary offer period ended on June 14, 2024. Costs primarily comprise of compensation expense and enhanced medical benefits, and are charged to restructuring and integration expenses in our statement of operations as a one-time termination benefit. Voluntary retirement incentive costs were recognized when the employee accepted the offer or are being recognized over their remaining period of service based on the agreed retirement date. Involuntary separation costs were recognized when the respective criteria were met and expenses were recorded either during the third quarter of 2024 or over the remaining service period for the affected employees. We anticipate that the program will be substantially complete by the end of 2027. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $7.7 million . Activity related to the separation program workforce reduction consists of the following (in thousands): Exit activity liability at December 31, 2023 $ Restructuring expenses: Amounts provided for …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Net Sales We disaggregate our net sales from contracts with customers by major product group and geographic area within each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors. Major Product Group The Vehicle Control operating segment generates its revenues from core aftermarket sales of ignition, emissions, and fuel delivery, electrical and safety, and wire sets and other product categories primarily in the United States. The Temperature Control operating segment generates its revenue from aftermarket sales of air conditioning system components and other thermal products. The Nissens Automotive operating segment generates its revenues from aftermarket sales of engine cooling, air conditioning system components and engine efficiency products primarily in Europe. The Engineered Solutions operating segment generates revenues from custom-engineered products to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine. The following table summarizes consolidated net sales by major product group within each operating segment (in thousands): Year Ended December 31, 2025 2024 2023 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 486,203 $ 467,460 $ 450,180 Electrical and Safety 241,938 229,361 221,782 Wire Sets and Other 57,251 65,739 65,970 Total Vehicle Co …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Industry Segment and Geographic Data Our business is organized into four operating segments, Vehicle Control, Temperature Control, Engineered Solutions and Nissens Automotive, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of three operating segments, Vehicle Control, Temperature Control and Nissens Automotive, while our Engineered Solutions operating segment offers a broad array of conventional and future-oriented technologies. The Vehicle Control operating segment includes sales from ignition emissions and fuel delivery, electrical and safety, and wire sets and other product categories to automotive aftermarket customers. The Temperature Control operating segment includes sales from air conditioning system components and other thermal product categories to automotive aftermarket customers primarily in the United States, and is poised to benefit from the broader adoption of more complex air conditioning systems that will provide passenger comfort regardless of the vehicle's powertrain. The Nissens Automotive operating segment includes sales of engine cooling, air conditioning system components and engine efficiency products to automotive aftermarket customers primarily in Europe. The Engineered Solutions operating segment includes sales of custom-engineered solutions to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sp …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Principles of Consolidation & Basis of Presentation Stan dard Motor Products, Inc. and its subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as we, us, our, SMP, or the Company) is a leading manufacturer and distributor of premium replacement parts in the automotive aftermarket, and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets. Our business is organized in four reportable segments (also referred to as operating segments), comprising of three reportable segments, Vehicle Control, Temperature Control and Nissens Automotive, that sell products in the automotive aftermarket, while our fourth reportable segment, Engineered Solutions offers a broad array of conventional and future-oriented technologies in markets for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden. We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries. These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (""U.S. GAAP"") an d include our accounts and all domestic and international companies that we control. In addition, we use the equit …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity In 2022 , our Board of Directors authorized the purchase of up to $30 million of our common stock under a stock repurchase program. Stock will be purchased under the program from time to time, in the open market or through private transactions, as market conditions warrant. To date, there have been 321,229 shares purchased for a total cost of $10.4 million, all of which occurred in 2024. There were no purchases of our common stock in 2025 . …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Event In 2025 we were subject to tariffs on certain imports into the United States under the International Emergency Economic Powers Act (IEEPA). On February 20, 2026, the United States Supreme Court rendered a decision invalidating tariffs imposed under IEEPA. In response to the Supreme Courts decision, the current Administration announced its intention to impose new tariffs under different statutory authority. We are currently evaluating the impact of these actions on our business and will continue to monitor developments as they occur. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Business Combinations On November 1, 2024, we acquired all the issued and outstanding shares of European automotive aftermarket parts supplier, Nissens Automotive for 366.8 million (approximately $397.1 million). The purchase price allocation was finalized during the quarter ended March 31, 2025, and there were no adjustments to amounts previously disclosed in Note 2 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024. …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Asbestos In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation in the accompanying consolidated statements of operations. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001, and the amounts paid for settlements, awards of asbestos-related damages, and defense of such claims. At March 31, 2026, approximately 1,032 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through March 31, 2026, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $108.1 million. We do not have insurance coverage for the indemnity and defense costs associated with the claims we face. In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdicti …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows (in thousands): March 31, December 31, 2026 2025 2024 Credit Agreement (a) Multi-currency revolver $ 348,250 $ 298,426 U.S. dollar term loan (b) 186,375 188,771 Euro term loan (b) 107,235 110,855 Other 16,760 20,663 Total debt $ 658,620 $ 618,715 Current maturities of debt $ 49,370 $ 51,988 Long-term debt 609,250 566,727 Total debt $ 658,620 $ 618,715 (a) Weighted average interest rate, adjusted for the impact of interest rate swap agreements, is 4.9% and 4.8% at March 31, 2026 and December 31, 2025, respectively. Interest rates primarily consist of Term SOFR for borrowings in U.S. dollars and EURIBOR for borrowings in euros. (b) Amounts are shown net of unamortized deferred financing costs of $1.8 million at March 31, 2026 and $1.9 million at December 31, 2025, respectively. 2024 Credit Agreement Outstanding borrowings, net of unamortized deferred financing costs, and letters of credit under the 2024 credit agreement consist of the following (in millions): March 31, 2026 December 31, 2025 Current maturities of debt $ 47.1 $ 45.3 Long-term debt 594.7 552.8 Total outstanding borrowings $ 641.8 $ 598.1 Letters of credit $ 4.5 $ 4.6 The 2024 Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes consolidated net sales by major product group within each operating segment (in thousands): Three Months Ended March 31, 2026 2025 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 141,087 $ 118,366 Electrical and Safety 57,866 58,319 Wire Sets and Other 14,886 15,657 Total Vehicle Control 213,839 192,342 Temperature Control AC System Components 65,198 67,191 Other Thermal Components 24,306 21,692 Total Temperature Control 89,504 88,883 Nissens Automotive Air Conditioning 26,273 27,166 Engine Cooling 31,451 27,773 Engine Efficiency 16,643 11,243 Total Nissens Automotive 74,367 66,182 Engineered Solutions Light Vehicle 22,920 21,404 Commercial Vehicle 22,908 18,605 Construction/Agriculture 9,504 9,408 All Other 18,980 16,555 Total Engineered Solutions 74,312 65,972 Intersegment sales (856) Total $ 451,166 $ 413,379 The following tables provide disaggregation of net sales information by geographic area within each operating segment (in thousands): Three Months Ended March 31, 2026 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total United States $ 193,743 $ 85,161 $ 4,850 $ 39,432 $ (489) $ 322,697 Europe, excluding Poland 215 65 51,132 14,005 (21) 65,396 Canada 10,032 3,912 115 9,726 (275) 23,510 Poland 75 1 14,620 2,355 (71) 16,980 Mexico 8,509 34 2,813 11,356 Other foreign 1,265 365 3,616 5,981 11,227 Total $ 213,839 $ 89,504 $ 74,367 $ 74,312 $ (856) $ 451,166 Three Mon …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation Plans Our restricted and performance-based share activity was as follows for the three months ended March 31, 2026: Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2025 965,172 $ 28.28 Granted 288,389 36.84 Vested (31,672) 26.17 Forfeited (2,383) 29.58 Performance Shares Adjustment 11,246 $ 26.77 Balance at March 31, 2026 1,230,752 $ 30.32 The following table shows stock-based compensation expense, which is primarily recorded in selling, general and administrative expenses in the consolidated statements of operations (in millions) : Three Months Ended March 31, 2026 2025 Stock-based compensation expense $ 3.0 $ 1.6 Income tax benefits related to stock-based compensation 0.8 0.5 Stock-based compensation expense, net of tax $ 2.2 $ 1.1 The unrecognized compensation expense related to our restricted and performance-based shares was $23.6 million at March 31, 2026, and is expected to be recognized as they vest over a weighted average period of 3.2 years and 1 month for employees and directors, respectively.

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Fair Value Measurements We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability. The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments recorded at fair value (in thousands): Fair Value March 31, 2026 December 31, 2025 Hierarchy Level Fair Value Carrying Amount Fair Value Carrying Amount Deferred compensation 1 27,105 27,105 27,511 27,511 Cash flow hedge interest rate swaps 2 4,399 4,399 2,587 2,587 The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The fair value of our cash flow interest rate swap agreements are …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Leases We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to eight years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material. The following tables provide quantitative disclosures related to our operating leases and include all operating leases acquired from the date of acquisition (in thousands, except where otherwise indicated): Balance Sheet Information March 31, 2026 December 31, 2025 Assets Operating lease right-of-use assets $ 102,003 $ 105,178 Liabilities Sundry payables and accrued expenses $ 21,972 $ 21,990 Noncurrent operating lease liabilities 90,345 93,381 Total operating lease liabilities $ 112,317 $ 115,371 Weighted Average Remaining Lease Term 6.7 Years 6.9 Years Weighted Average Discount Rate 5.1 % 5.1 % Three Months Ended March 31, Lease Expense 2026 2025 Lease expense $ 6,257 $ 6,223 Variable and other lease expense (a) 1,204 1,728 Total lease expenses $ 7,461 $ 7,951 (a) Relates to non-lease components such as maintenance, property taxes …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements Standards not yet adopted as of March 31, 2026 Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). This accounting standards update seeks to provide investors and users of the financial statements with clearer information regarding companies' cost structures by disaggregating expense line items in the income statement. ASU 2024-03 requires tabular disclosure in the notes to the financial statements, at each interim and annual reporting period, of certain types of expenses (including purchases of inventory, employee compensation, depreciation and intangible asset amortization) that are already included in commonly presented expense captions on the income statement within continuing operations, and qualitative description of remaining amounts not separately disaggregated quantitatively. Furthermore, the guidance requires disclosure of the total amount of selling expenses and, in annual reporting periods, an entitys definition of selling expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, which for us is January 1, 2027 and January 1, 2028, respectively. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. This new standard, once a …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefits We maintain a defined contribution Supplemental Executive Retirement (SERP) Plan that allows key employees to elect to defer a portion of their compensation. In addition, we may at our discretion make contributions to the SERP plan on behalf of the employees. In the three months ended March 31, 2026, we made company contributions to the SERP plan of $0.5 million related to calendar year 2025. We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During the three months ended March 31, 2026, we contributed 74,400 shares to the trust from our treasury and released 74,400 shares from the trust leaving 200 shares remaining in the trust as of March 31, 2026. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Expenses Cost Reduction Initiative During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico. In 2025, we extended the program for plans to relocate additional product lines from certain plants in the United States and Canada to our existing manufacturing facilities in Mexico. We anticipate that the Cost Reduction Initiative will be substantially complete by the end of 2026. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $6.9 million. Activity for the three months ended March 31, 2026 related to the Cost Reduction Initiative consisted of the foll owing (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2025 $ 206 $ 206 Restructuring costs provided for during 2026 (a) 83 251 334 Cash payments (102) (251) (353) Exit activity liability at March 31, 2026 $ 187 $ 187 (a) Consists of $0.2 million and $0.1 million in our Vehicle Control operating segment and Temperature Control operating segment, respectively. Restructuring activities are included within sundry payables and accrued expenses and other accrue …

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Net Sales We disaggregate our net sales from contracts with customers by major product group and geographic area within each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors. Major Product Group The Vehicle Control operating segment generates its revenues from core aftermarket sales of ignition, emissions, and fuel delivery, electrical and safety, and wire sets and other product categories primarily in the United States. The Temperature Control operating segment generates its revenue from aftermarket sales of air conditioning (AC) system components and other thermal products. The Nissens Automotive operating segment generates its revenues from aftermarket sales of air conditioning system components, engine cooling and engine efficiency products primarily in Europe. The Engineered Solutions operating segment generates revenues from custom-engineered products to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine. The following table summarizes consolidated net sales by major product group within each operating segment (in thousands): Three Months Ended March 31, 2026 2025 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 141,087 $ 118,366 Electrical and Safety 57,866 58,319 Wire Sets and Other 14,886 15,657 Total Vehicle Control 213,839 192,342 …

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"Industry Segments Our business is organized into four operating segments, Vehicle Control, Temperature Control, Nissens Automotive and Engineered Solutions, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of three operating segments, Vehicle Control, Temperature Control and Nissens Automotive, while our Engineered Solutions operating segment offers a broad array of conventional and future-oriented technologies. The accounting policies of each segment are the same as those described in Note 1, ""Summary of Significant Accounting Policies"" in our Form 10-K for the year-ended December 31, 2025. The following tables contain financial information for each reportable operating segment (in thousands): Three Months Ended March 31, 2026 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total Net sales $ 213,839 $ 89,504 $ 74,367 $ 74,312 $ (856) $ 451,166 Cost of sales 145,674 60,852 42,296 64,027 (856) 311,993 Gross profit 68,165 28,652 32,071 10,285 139,173 Selling and marketing expenses 11,998 3,669 5,261 1,993 Distribution expenses 18,759 7,514 9,151 1,268 General and administration expenses 10,450 4,518 9,661 5,178 Supply chain financing expenses 7,073 2,038 123 Restructuring expenses 272 70 24 Other expenses 2 Segment operating income $ 19,613 $ 10,843 $ 7,873 $ 1,822 $ 40,151 Unallocated corporate expenses and other 6,058 Other non-operating income, net (1,279) Interest expense …

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Summary of Significant Accounting Policies The preparation of consolidated annual and quarterly financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. We have made a number of estimates and assumptions in the preparation of these consolidated financial statements. We can give no assurance that actual results will not differ from those estimates. Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of disruptions in the supply chain caused by geo-political risks, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations. Some of the more significant estimates include allowances for expected credit losses, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, asbestos, en …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing