Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Accounts Receivable and Concentration of Credit Risk

The Company’s largest customers are Volvo and PACCAR, primarily related to the Electronics reportable segment and accounted for the following percentages of consolidated net sales:


	2025		2024		2023
Volvo	18	%	16	%	16	%
PACCAR	15	%	13	%	10	%

Schedule of Inventory, Current

Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following:


December 31	2025		2024
Raw materials	$	92,668	$	108,283
Work-in-progress	6,849		7,627
Finished goods	33,156		35,427
Total inventories, net	$	132,673	$	151,337

Schedule of Property, Plant and Equipment

Property, plant and equipment are recorded at cost and consist of the following:


December 31	2025		2024
Land and land improvements	$	3,423	$	3,125
Buildings and improvements	36,524		29,895
Machinery and equipment	283,228		271,465
Office furniture and fixtures	12,318		9,272
Tooling	45,001		39,184
Information technology	42,062		37,512
Vehicles	1,007		741
Leasehold improvements	5,999		5,511
Construction in progress	11,222		19,773
Total property, plant, and equipment	440,784		416,478
Less: accumulated depreciation	(361,862)		(318,811)
Property, plant and equipment, net	$	78,922	$	97,667

Schedule of Property, Plant and Equipment Estimated Useful Lives

Depreciable lives within each property classification are as follows:


Buildings and improvements			10-40 years
Machinery and equipment			3-10 years
Office furniture and fixtures			3-10 years
Tooling			2-7 years
Information technology			3-7 years
Vehicles			3-7 years
Leasehold improvements			shorter of lease term or 3-10 years

Schedule of Goodwill

Goodwill and changes in the carrying amount of goodwill for the Electronics segment for the years ended December 31, 2025 and 2024 were as follows:


	2025		2024
Balance at January 1	$	33,085	$	35,295
Currency translation	4,505		(2,210)
Balance at December 31	$	37,590	$	33,085

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

Other intangible assets, net at December 31, 2025 and 2024 consisted of the following:


As of December 31, 2025	Acquisition cost		Accumulated amortization		Net
Customer lists	$	46,009	$	(32,795)	$	13,214
Tradenames	16,300		(9,988)		6,312
Technology and patents	13,158		(11,622)		1,536
Capitalized software development	32,506		(15,595)		16,911
Total	$	107,973	$	(70,000)	$	37,973


As of December 31, 2024	Acquisition cost		Accumulated amortization		Net
Customer lists	$	40,669	$	(26,303)	$	14,366
Tradenames	14,444		(8,135)		6,309
Technology and patents	11,657		(9,934)		1,723
Capitalized software development	26,123		(8,844)		17,279
Total	$	92,893	$	(53,216)	$	39,677

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


As of December 31	2025		2024
Compensation related liabilities	$	25,771	$	21,171
Product warranty and recall obligations	14,792		16,848
Other (A)	34,758		28,475
Total accrued expenses and other current liabilities	$	75,321	$	66,494

_____________________________

(A)“Other” is comprised of miscellaneous accruals, none of which individually contributed a significant portion of the total.

Schedule of Product Warranty and Recall Liability

The following provides a reconciliation of changes in the product warranty and recall reserve:


Year ended December 31,	2025		2024
Product warranty and recall at beginning of period	$	27,523	$	21,610
Accruals for warranties established during period	15,945		18,479
Aggregate changes in pre-existing liabilities due to claim developments	1,964		1,934
Settlements made during the period	(22,527)		(13,052)
Foreign currency translation	3,584		(1,448)
Product warranty and recall at end of period	$	26,489	$	27,523

Schedule of Weighted-Average Number of Shares

Actual weighted-average Common Shares outstanding used in calculating basic and diluted net loss per share were as follows:


Year ended December 31,	2025	2024	2023
Basic weighted-average Common Shares outstanding	27,796,799	27,595,698	27,442,984
Effect of dilutive shares	—	—	—
Diluted weighted-average Common Shares outstanding	27,796,799	27,595,698	27,442,984

Schedule of Changes in Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income for the years ended December 31, 2025 and 2024 were as follows:


	Foreign currency translation		Unrealized gain (loss) on derivatives		Total
Balance at January 1, 2025	$	(120,095)	$	(1,918)	$	(122,013)
Other comprehensive income before reclassifications	30,995		2,929		33,924
Amounts reclassified from accumulated other comprehensive loss	—		(1,011)		(1,011)
Net other comprehensive income, net of tax	30,995		1,918		32,913
Balance at December 31, 2025	$	(89,100)	$	—	$	(89,100)

Balance at January 1, 2024	$	(94,256)	$	1,468	$	(92,788)
Other comprehensive loss before reclassifications	(25,839)		(3,700)		(29,539)
Amounts reclassified from accumulated other comprehensive loss	—		314		314
Net other comprehensive loss, net of tax	(25,839)		(3,386)		(29,225)
Balance at December 31, 2024	$	(120,095)	$	(1,918)	$	(122,013)

STONERIDGE INC 10-K