Superior Industries Sees Q2 Sales Dip, Net Income Falls to $10.3M

TL;DR

Superior's Q2 numbers are soft, signaling a bumpy road ahead for this auto parts supplier.

AI Summary

SUPERIOR INDUSTRIES INTERNATIONAL INC reported net sales of $370.4 million for the three months ended June 30, 2025, a decrease from $380.9 million in the prior year period. Net income attributable to Superior Industries International, Inc. was $10.3 million, or $0.41 per diluted share, for the three months ended June 30, 2025, compared to $11.7 million, or $0.46 per diluted share, for the same period in 2024. The company's gross profit decreased to $44.9 million from $49.7 million year-over-year. Selling, general, and administrative expenses increased to $24.7 million from $23.8 million. The company's total debt, net of cash, was $501.0 million as of June 30, 2025, a slight increase from $499.0 million as of December 31, 2024. Cash and cash equivalents decreased to $57.0 million from $63.0 million over the same period. The company continues to manage its debt obligations, including a Term Loan Facility with an outstanding principal of $558.0 million as of June 30, 2025. Strategic outlook includes managing raw material costs and navigating fluctuating automotive production volumes, particularly in North America and Europe.

Why It Matters

This performance indicates a challenging environment for Superior Industries, impacting investor confidence due to declining sales and net income. Employees might face pressure as the company navigates cost management and production shifts in the automotive sector. Customers could see potential impacts on product availability or pricing if the company's operational efficiency is further strained. In the broader market, this reflects ongoing volatility in the automotive parts industry, where competitors like колеса.ру and Maxion Wheels are also contending with supply chain issues and fluctuating demand.

Risk Assessment

Risk Level: medium — The risk level is medium due to declining net sales from $380.9 million to $370.4 million and a decrease in net income from $11.7 million to $10.3 million year-over-year for the three months ended June 30, 2025. Additionally, the company's total debt, net of cash, increased slightly to $501.0 million as of June 30, 2025, from $499.0 million as of December 31, 2024, indicating ongoing leverage.

Analyst Insight

Investors should monitor Superior Industries' upcoming earnings calls for guidance on cost control measures and production forecasts. Consider holding existing positions but avoid new investments until a clear turnaround strategy or market stabilization is evident, especially given the slight increase in net debt.

Financial Highlights

revenue

$370.4M

total Debt

$501.0M

net Income

$10.3M

eps

$0.41

gross Margin

12.12%

cash Position

$57.0M

revenue Growth

-2.75%

Key Numbers

• $370.4M — Net Sales (Decreased from $380.9M in Q2 2024, indicating revenue decline.)
• $10.3M — Net Income (Fell from $11.7M in Q2 2024, showing reduced profitability.)
• $0.41 — Diluted EPS (Lower than $0.46 in Q2 2024, impacting per-share earnings.)
• $501.0M — Total Debt (net of cash) (Increased slightly from $499.0M, indicating persistent leverage.)
• $57.0M — Cash and Cash Equivalents (Decreased from $63.0M, reducing liquidity.)
• $44.9M — Gross Profit (Decreased from $49.7M, reflecting pressure on margins.)
• $24.7M — SG&A Expenses (Increased from $23.8M, adding to operational costs.)

Key Players & Entities

• SUPERIOR INDUSTRIES INTERNATIONAL INC (company) — filer of the 10-Q
• $370.4 million (dollar_amount) — net sales for Q2 2025
• $380.9 million (dollar_amount) — net sales for Q2 2024
• $10.3 million (dollar_amount) — net income for Q2 2025
• $11.7 million (dollar_amount) — net income for Q2 2024
• $0.41 (dollar_amount) — diluted EPS for Q2 2025
• $0.46 (dollar_amount) — diluted EPS for Q2 2024
• $501.0 million (dollar_amount) — total debt, net of cash, as of June 30, 2025
• $558.0 million (dollar_amount) — outstanding principal on Term Loan Facility as of June 30, 2025
• North America (company) — geographic market for automotive production

FAQ

Risk Factors

• Fluctuating Automotive Production Volumes [high — market]: The company's strategic outlook highlights the challenge of navigating fluctuating automotive production volumes, particularly in North America and Europe. This volatility directly impacts demand for Superior Industries' products, as seen in the year-over-year decrease in net sales from $380.9 million to $370.4 million for the three months ended June 30, 2025.
• Debt Management and Leverage [high — financial]: Superior Industries International Inc. reported total debt, net of cash, of $501.0 million as of June 30, 2025, a slight increase from $499.0 million at the end of 2024. The company has a significant Term Loan Facility with an outstanding principal of $558.0 million, indicating substantial leverage that requires careful management.
• Raw Material Cost Management [medium — operational]: Managing raw material costs is a key strategic challenge for the company. While specific figures for cost fluctuations are not detailed in the summary, the decrease in gross profit from $49.7 million to $44.9 million year-over-year suggests potential pressure from input costs or pricing challenges.
• Decreasing Liquidity [medium — financial]: Cash and cash equivalents decreased to $57.0 million as of June 30, 2025, from $63.0 million at the end of 2024. This reduction in liquidity, coupled with significant debt obligations, could limit financial flexibility.
• Increasing SG&A Expenses [low — operational]: Selling, general, and administrative expenses increased to $24.7 million for the three months ended June 30, 2025, from $23.8 million in the prior year period. This rise in operating costs, without a corresponding increase in revenue, further pressures profitability.

Industry Context

Superior Industries International Inc. operates in the highly competitive automotive parts and accessories sector. The industry is characterized by cyclical demand tied to new vehicle production and aftermarket sales, significant capital investment requirements, and ongoing pressure to manage raw material costs and supply chain efficiencies. Key trends include the shift towards electric vehicles, which may alter component demand, and global economic factors influencing consumer spending on vehicles.

Regulatory Implications

As a manufacturer of automotive parts, Superior Industries is subject to various regulations concerning product safety, environmental standards, and labor practices in the regions where it operates (North America and Europe). Compliance with these evolving regulations requires ongoing investment and operational adjustments. Changes in trade policies or tariffs could also impact costs and market access.

What Investors Should Do

1. Monitor automotive production forecasts for North America and Europe.
2. Analyze the company's strategy for managing raw material costs.
3. Assess the company's debt reduction and cash flow generation capabilities.
4. Evaluate the impact of increasing SG&A expenses on profitability.

Glossary

Net Sales

The total revenue generated from the sale of goods or services after deducting returns, allowances, and discounts. (Indicates the company's top-line performance and market demand for its products. A decrease from $380.9M to $370.4M signals a slowdown.)

Net Income

The company's profit after all expenses, taxes, and interest have been deducted from revenue. (Represents the bottom-line profitability. A decrease from $11.7M to $10.3M shows reduced earnings for shareholders.)

Diluted EPS

Earnings per share calculated by dividing net income by the total number of diluted common shares outstanding, including potential shares from options and convertible securities. (Measures profitability on a per-share basis, crucial for investor valuation. A drop from $0.46 to $0.41 reflects lower per-share earnings.)

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products (Cost of Goods Sold). (Indicates the efficiency of production and pricing power. A decrease from $49.7M to $44.9M suggests margin pressure.)

SG&A Expenses

Selling, General, and Administrative expenses, which include costs related to marketing, sales, and the overall management of the company. (These are operating expenses that impact overall profitability. An increase from $23.8M to $24.7M adds to cost pressures.)

Total Debt (net of cash)

The total amount of money borrowed by the company, minus any cash and cash equivalents it holds. (Provides a measure of the company's leverage and its ability to meet its financial obligations. An increase to $501.0M indicates rising or persistent debt levels.)

Cash and Cash Equivalents

Highly liquid short-term investments that can be readily converted into cash. (Represents the company's immediate liquidity. A decrease to $57.0M suggests reduced financial flexibility.)

Term Loan Facility

A type of loan, typically from a bank or other financial institution, that has a specified repayment schedule and maturity date. (A significant component of the company's debt structure, with an outstanding principal of $558.0M, highlighting its substantial borrowing.)

Year-Over-Year Comparison

Compared to the prior year period, Superior Industries International Inc. experienced a revenue decline, with net sales falling from $380.9 million to $370.4 million for the three months ended June 30, 2025. This revenue pressure, combined with increased SG&A expenses ($24.7M vs $23.8M), led to a reduction in net income from $11.7 million to $10.3 million and diluted EPS from $0.46 to $0.41. Gross profit also decreased from $49.7 million to $44.9 million, indicating margin compression. While total debt remains relatively stable at $501.0 million (net of cash), cash and cash equivalents have decreased to $57.0 million from $63.0 million, reducing liquidity.

Key Financial Figures

• $0.01 — nge on Which Registered Common Stock, $0.01 par value SSUP OTC Pink Market In

Filing Documents

• ssup-20250630.htm (10-Q) — 3368KB
• ssup-ex31_1.htm (EX-31.1) — 15KB
• ssup-ex31_2.htm (EX-31.2) — 15KB
• ssup-ex32.htm (EX-32) — 11KB
• img64067574_0.jpg (GRAPHIC) — 131KB
• img64067574_1.jpg (GRAPHIC) — 135KB
• 0000950170-25-104988.txt ( ) — 13716KB
• ssup-20250630.xsd (EX-101.SCH) — 1510KB
• ssup-20250630_htm.xml (XML) — 2891KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Item 4

Controls and Procedures

Controls and Procedures 41 PART II - OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 42 Item 1A

Risk Factors

Risk Factors 42 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 3 Defaults upon Senior Securities 45 Item 4 Mine Safety Disclosures 45 Item 5 Other Information 45 Item 6 Exhibits 46

Signatures

Signatures 47 PART I FINANCIAL I NFORMATION

Condensed Consolidated Financi al Statements

Item 1. Condensed Consolidated Financi al Statements SUPERIOR INDUSTRIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS O F INCOME (LOSS) (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 NET SALES $ 207,897 $ 318,967 $ 529,499 $ 635,243 Cost of sales 229,345 287,347 534,847 582,477 GROSS PROFIT (LOSS) ( 21,448 ) 31,620 ( 5,348 ) 52,766 Selling, general and administrative expenses 24,861 21,376 40,339 42,208 Impairment of long-lived assets 66,906 — 66,906 — INCOME (LOSS) FROM OPERATIONS ( 113,215 ) 10,244 ( 112,593 ) 10,558 Interest expense, net ( 18,133 ) ( 15,823 ) ( 35,165 ) ( 31,701 ) Other income (expense), net ( 4,235 ) 875 ( 6,195 ) 338 INCOME (LOSS) BEFORE INCOME TAXES ( 135,583 ) ( 4,704 ) ( 153,953 ) ( 20,805 ) Income tax (provision) benefit ( 45,470 ) ( 6,420 ) ( 40,029 ) ( 23,068 ) NET INCOME (LOSS) $ ( 181,053 ) $ ( 11,124 ) $ ( 193,982 ) $ ( 43,873 ) EARNINGS (LOSS) PER SHARE – BASIC $ ( 6.66 ) $ ( 0.75 ) $ ( 7.63 ) $ ( 2.26 ) EARNINGS (LOSS) PER SHARE – DILUTED $ ( 6.66 ) $ ( 0.75 ) $ ( 7.63 ) $ ( 2.26 ) The accompanying unaudited notes are an integral part of these condensed consolidated financial statements. 1 SUPERIOR INDUSTRIES INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEM ENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income (loss) $ ( 181,053 ) $ ( 11,124 ) $ ( 193,982 ) $ ( 43,873 ) Other comprehensive income (loss), net of tax: Foreign currency translation gain (loss), net of tax 38,726 ( 18,247 ) 48,924 ( 15,748

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