SMP

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share data, unaudited) 2026 2025 2026 2025 Net sales $ 501,599 $ 493,853 $ 952,765 $ 907,232 Cost of sales 336,980 342,964 648,973 631,621 Gross profit 164,619 150,889 303,792 275,611 Selling, general and administrative expenses 113,523 107,520 218,360 207,365 Restructuring expenses 248 582 614 1,255 Other income (expense), net (4) 49 119 307 Operating income 50,844 42,836 84,937 67,298 Other non-operating income (loss), net 793 1,875 (486) 4,123 Interest expense 7,560 8,295 15,078 16,056 Earnings from continuing operations before income taxes 44,077 36,416 69,373 55,365 Provision for income taxes 12,040 9,821 18,866 14,890 Earnings from continuing operations 32,037 26,595 50,507 40,475 Loss from discontinued operations, net of income taxes (1,393) (1,058) (2,578) (2,197) Net earnings 30,644 25,537 47,929 38,278 Net earnings attributable to noncontrolling interest 276 295 425 470 Net earnings attributable to SMP (a) $ 30,368 $ 25,242 $ 47,504 $ 37,808 Net earnings (loss) attributable to SMP Continuing operations $ 31,761 $ 26,300 $ 50,082 $ 40,005 Discontinued operations (1,393) (1,058) (2,578) (2,197) Net earnings attributable to SMP $ 30,368 $ 25,242 $ 47,504 $ 37,808 Per common share data Basic: Continuing operations $ 1.42 $ 1.20 $ 2.25 $ 1.82 Discontinued operations (0.06) (0.05) (0.11) (0.10) Net earnings attributable to SMP per common share $ 1.36 $ 1.15 $ 2.14 $ 1.72 Diluted: Continuing operations $ 1.39 $ 1.17 $ 2.20 $ 1.79 Discontinued operations (0.06) (0.04) (0.12) (0.10) Net earnings attributable to SMP per common share $ 1.33 $ 1.13 $ 2.08 $ 1.69 Dividend declared per common share $ 0.33 $ 0.31 $ 0.66 $ 0.62 Weighted average number of common shares, basic 22,291,768 21,984,492 22,229,731 21,935,921 Weighted average number of common shares, diluted 22,864,089 22,423,208 22,806,413 22,359,693 (a)Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. See accompanying notes to consolidated financial statements (unaudited). 3 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended June 30, Six Months Ended June 30, (In thousands, unaudited) 2026 2025 2026 2025 Net earnings $ 30,644 $ 25,537 $ 47,929 $ 38,278 Other comprehensive income (loss), net of tax: Foreign currency translation (2,117) 32,021 (9,490) 45,000 Cash flow hedges 103 (1,469) 1,447 (2,305) Postretirement benefit plans (1) (3) (1) (5) Total other comprehensive income (loss), net of tax (2,015) 30,549 (8,044) 42,690 Total other comprehensive income 28,629 56,086 39,885 80,968 Comprehensive income attributable to noncontrolling interest, net of tax: Net earnings 276 295 425 470 Foreign currency translation 80 69 244 33 Comprehensive income attributable to noncontrolling interest, net of tax 356 364 669 503 Comprehensive income attributable to SMP, net of tax $ 28,273 $ 55,722 $ 39,216 $ 80,465 See accompanying notes to consolidated financial statements (unaudited). 4 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) June 30, 2026 December 31, 2025 ASSETS (Unaudited) CURRENT ASSETS: Cash $ 78,629 $ 72,031 Accounts receivable, less allowances for discounts and expected credit losses of $10,539 and $10,043 for 2026 and 2025, respectively 358,378 232,020 Inventories 684,166 727,922 Prepaid expenses and other current assets 21,087 18,477 Total current assets 1,142,260 1,050,450 Property, plant and equipment, net of accumulated depreciation of $304,925 and $300,283 for 2026 and 2025, respectively 187,003 188,562 Operating lease right-of-use assets 97,857 105,178 Goodwill 252,603 256,159 Customer relationships intangibles, net 198,889 212,056 Other intangibles, net 96,083 99,102 Deferred income taxes 24,034 25,384 Investments in unconsolidated affiliates 27,315 26,310 Other assets 34,626 32,040 Total assets $ 2,060,670 $ 1,995,241 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Current portion of revolving credit facility $ 34,579 $ 30,000 Current portion of term loan and other debt 20,048 21,988 Accounts payable 182,298 169,089 Sundry payables and accrued expenses 103,791 92,054 Accrued customer returns 74,931 49,554 Accrued rebates 115,712 84,494 Payroll and commissions 38,797 46,135 Total current liabilities 570,156 493,314 Long-term debt 534,200 566,727 Noncurrent operating lease liabilities 87,248 93,381 Accrued asbestos liabilities 104,285 112,625 Other accrued liabilities 32,448 30,932 Total liabilities 1,328,337 1,296,979 Commitments and contingencies Stockholders’ equity: Common stock – par value $2.00 per share (Authorized – 30,000,000 shares; issued 23,936,036 shares) 47,872 47,872 Capital in excess of par value 100,965 99,005 Retained earnings 622,284 589,448 Accumulated other comprehensive income 9,569 17,857 Treasury stock – at cost (1,598,589 shares and 1,790,097 shares in 2026 and 2025, respectively) (62,965) (70,483) Total SMP stockholders’ equity 717,725 683,699 Noncontrolling interest 14,608 14,563 Total stockholders’ equity 732,333 698,262 Total liabilities and stockholders’ equity $ 2,060,670 $ 1,995,241 See accompanying notes to consolidated financial statements (unaudited). 5 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) Six Months Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 47,929 $ 38,278 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 22,915 21,192 Amortization of deferred financing cost 549 637 Increase to allowance for expected credit losses 113 2,041 Increase to inventory reserves 2,164 3,907 Equity income from joint ventures (1,809) (2,139) Employee stock ownership plan allocation 1,644 1,350 Stock-based compensation 6,474 3,301 Decrease in deferred income taxes 421 504 Loss on discontinued operations, net of tax 2,578 2,197 Change in assets and liabilities: Increase in accounts receivable (129,028) (108,180) Decrease (increase) in inventories 37,755 (3,217) (Increase) decrease in prepaid expenses and other current assets (493) 5,816 Increase in accounts payable 13,385 17,068 Increase in sundry payables and accrued expenses 62,616 15,863 Net change in other assets and liabilities (8,947) (4,521) Net cash provided by (used in) operating activities 58,266 (5,903) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (14,949) (19,295) Other investing activities 420 2,972 Net cash used in investing activities (14,529) (16,323) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of term loans (8,142) (7,821) Net (repayments) borrowings under revolving credit facilities (11,278) 52,668 Net (repayments) borrowings of other debt and lease obligations (4,623) 1,021 Purchase of treasury stock (283) — Increase in overdraft balances 163 348 Dividends paid (14,668) (13,592) Dividends paid to noncontrolling interest (624) — Net cash (used in) provided by financing activities (39,455) 32,624 Effect of exchange rate changes on cash 2,316 3,968 Net increase in cash 6,598 14,366 CASH at beginning of period 72,031 44,426 CASH at end of period $ 78,629 $ 58,792 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ 14,633 $ 16,943 Income taxes $ 11,771 $ 9,237 See accompanying notes to consolidated financial statements (unaudited). 6 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY Three Months Ended June 30, 2026 (In thousands, unaudited) CommonStock Capital inExcess ofPar Value RetainedEarnings AccumulatedOtherComprehensiveIncome (Loss) TreasuryStock TotalSMP Non-ControllingInterest Total Balance at March 31, 2026 $ 47,872 $ 101,104 $ 599,276 $ 11,664 $ (66,589) $ 693,327 $ 14,252 $ 707,579 Net earnings — — 30,368 — — 30,368 276 30,644 Other comprehensive income (loss), net of tax — — — (2,095) — (2,095) 80 (2,015) Cash dividends paid — — (7,360) — — (7,360) — (7,360) Stock-based compensation — (139) — — 3,624 3,485 — 3,485 Balance at June 30, 2026 47,872 100,965 622,284 9,569 (62,965) 717,725 14,608 732,333 Three Months Ended June 30, 2025 (In thousands, unaudited) CommonStock Capital inExcess ofPar Value RetainedEarnings AccumulatedOtherComprehensiveIncome (Loss) TreasuryStock TotalSMP Non-ControllingInterest Total Balance at March 31, 2025 $ 47,872 $ 99,547 $ 581,174 $ (13,655) $ (76,977) $ 637,961 $ 14,476 $ 652,437 Net earnings — — 25,242 — — 25,242 295 25,537 Other comprehensive income (loss), net of tax — — — 30,480 — 30,480 69 30,549 Cash dividends paid — — (6,815) — — (6,815) — (6,815) Stock-based compensation — 1,489 — — 262 1,751 — 1,751 Balance at June 30, 2025 $ 47,872 $ 101,036 $ 599,601 $ 16,825 $ (76,715) $ 688,619 $ 14,840 $ 703,459 7 Six Months Ended June 30, 2026 (In thousands, unaudited) CommonStock Capital inExcess ofPar Value RetainedEarnings AccumulatedOtherComprehensiveIncome (Loss) TreasuryStock TotalSMP Non-ControllingInterest Total Balance at December 31, 2025 $ 47,872 $ 99,005 $ 589,448 $ 17,857 $ (70,483) $ 683,699 $ 14,563 $ 698,262 Net earnings — — 47,504 — — 47,504 425 47,929 Other comprehensive income (loss), net of tax — — — (8,288) — (8,288) 244 (8,044) Cash dividends paid — — (14,668) — — (14,668) — (14,668) Dividends to noncontrolling interest — — — — — — (624) (624) Stock-based compensation — 1,603 — — 4,871 6,474 — 6,474 Employee Stock Ownership Plan — 357 — — 2,930 3,287 — 3,287 Purchase of treasury stock — — — — (283) (283) — (283) Balance at June 30, 2026 $ 47,872 $ 100,965 $ 622,284 $ 9,569 $ (62,965) $ 717,725 $ 14,608 $ 732,333 Six Months Ended June 30, 2025 (In thousands, unaudited) CommonStock Capital inExcess ofPar Value RetainedEarnings AccumulatedOtherComprehensiveIncome (Loss) TreasuryStock TotalSMP Non-ControllingInterest Total Balance at December 31, 2024 $ 47,872 $ 100,135 $ 575,385 $ (25,832) $ (81,815) $ 615,745 $ 14,337 $ 630,082 Net earnings — — 37,808 — — 37,808 470 38,278 Other comprehensive income (loss), net of tax — — — 42,657 — 42,657 33 42,690 Cash dividends paid — — (13,592) — — (13,592) — (13,592) Stock-based compensation — 1,638 — — 1,663 3,301 — 3,301 Employee Stock Ownership Plan (737) 3,437 2,700 2,700 Balance at June 30, 2025 $ 47,872 $ 101,036 $ 599,601 $ 16,825 $ (76,715) $ 688,619 $ 14,840 $ 703,459 8 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Basis of Presentation Standard 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 automotive aftermarket is comprised of three segments, Vehicle Control, Temperature Control and Nissens Automotive, while our Engineered Solutions segment 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, Europe, Canada, Mexico, and other foreign countries. These unaudited consolidated financial statements include our accounts and all entities that we control. In addition, we use the equity method to include our share of the results of investments in unconsolidated affiliates in which we do not have a controlling financial interest but have the ability to exercise significant influence. Generally our ownership in these unconsolidated affiliates is 50% or less. All significant inter-company items have been eliminated. These unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. Note 2. 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, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025. Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2026 presentation. 9 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Recently Issued Accounting Pronouncements Standards not yet adopted as of June 30, 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 entity’s 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 adopted, will require us to disclose expenses in a more detailed and granular way than we do in these consolidated financial statements. We are currently evaluating the full impact of adopting ASU 2024-03 on our consolidated financial statements, disclosures, processes and controls. We will adopt the guidance when it becomes effective. Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity In May 2025, the FASB issued ASU 2025-03, Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (subtopic 805-10-55). This accounting standards update seeks to improve the requirements for identifying the accounting acquirer in transactions effected primarily by exchanging equity interests in which the legal acquiree is a variable interest entity (“VIE”), enhance the comparability of financial statements and result in more closely aligned accounting outcomes as economically similar transactions in which the legal acquiree is a voting interest entity. Under the current guidance, if the legal acquiree is a VIE, the primary beneficiary of the VIE is always the accounting acquirer. The revised guidance requires an entity to assess the factors in Topic 805, Business Combinations, to determine the accounting acquirer in an acquisition transaction primarily effected by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods and applies prospectively to any acquisition transaction that occurs after the initial application date. The ASU is not expected to have a material impact on the Company’s consolidated financial statements. Targeted Improvements to the Accounting for Internal-Use Software In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This accounting standards update removes references to software development project stages and clarifies that an entity is required to start capitalizing software costs when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The update provides the following two factors to consider in determining if the second criterion has been met: •The software being developed has technological innovations or novel, unique, or unproven functions or features, and the uncertainty related to those technological innovations, functions, or features, has not been resolved through coding and testing. •The significant performance requirements (for example, functions or features) have not been identified or continue to be substantially revised. The update specifies that the disclosures in Subtopic 360-10, Property, Plant, and Equipment—Overall, are required for all capitalized internal-use software costs, regardless of how those costs are presented in the financial statements. Additionally, 10 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) the amendments clarify that the intangible asset disclosures in paragraphs 350-30-50-1 through 50-3 are not required for capitalized internal-use software costs. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods and can be applied prospectively, retrospectively or using a modified transition approach. Early adoption is permitted as of the beginning of an annual reporting period. We will adopt the guidance when it becomes effective. We are currently evaluating the effects of adopting this standard and do not anticipate the impact to be material. Hedge Accounting Improvements In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which introduces five targeted improvements to better align hedge accounting with the economics of entities’ risk management activities. The update will be effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. Early adoption is permitted. We do not expect this update to have a material effect on our consolidated financial statements and related disclosures. We have reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s consolidated financial statements. United States Law In July 2025, the President signed into law budget reconciliation bill H.R.1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) introducing tax reform measures that included changes to tax deductions for businesses, international tax rules, and foreign tax credit limitations that become effective in 2025 and 2026. As of enactment, these changes did not materially affect our deferred tax assets and liabilities or related valuation allowances. The impact on our income tax expense for the quarter ended June 30, 2026 was not material, and the changes are not expected to materially impact our effective tax rate and cash tax payments for 2026. We will continue to evaluate the full impact of the legislation as additional guidance becomes available. In 2025 and 2026 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 Court’s decision, the current Administration imposed temporary tariffs under the Trade Act of 1974. In April 2026, we made submissions for refunds of IEEPA tariffs through the new automated system launched by the United States Customs and Border Protection. The Company has applied a gain contingency model in accordance with Accounting Standards Codification 450-30, Gain Contingencies to account for potential recoveries of previously paid IEEPA tariffs. Under this model, a gain contingency is not recognized in the financial statements until the gain is realized or realizable. Any recovery, when recognized, is reflected as a reduction of inventory to the extent the related products remain on hand, or as a reduction of cost of sales for amounts related to products already sold. As of June 30, 2026, we have $15.8 million of uncollected IEEPA tariff refunds remaining. There remains uncertainty regarding the timing, amount and ultimate receipt of remaining uncollected IEEPA tariff refunds and therefore, no gain has been recognized in our consolidated financial statements at June 30, 2026 related to the uncollected IEEPA tariff refunds. To the extent IEEPA tariff refunds have been collected and recognized, we have recorded a corresponding obligation for our estimate of those refunds that may be passed through to our customers which is reflected as a reduction in net sales. Note 3. 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. 11 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 4. 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 $7.1 million. Activity for the six months ended June 30, 2026 related to the Cost Reduction Initiative consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2025 $ 206 — $ 206 Restructuring costs provided for during 2026 (a) 83 468 551 Cash payments (142) (468) (610) Exit activity liability at June 30, 2026 $ 147 — $ 147 (a)Consists of $0.5 million and $0.1 million in our Vehicle Control and Temperature Control operating segments, respectively. Restructuring activities are included within “sundry payables and accrued expenses” and “other accrued liabilities” on the consolidated balance sheet. We regularly evaluate productivity initiatives and may either extend existing restructuring programs or initiate new restructuring programs in the future. 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 and later expanded the program to include involuntary separations. This program is substantially complete with total restructuring expenses recorded to date of $7.8 million and additional restructuring costs are expected to be immaterial. During the six months ended June 30, 2026 cash payments were $0.2 million and the exit activity liability at June 30, 2026 was $0.4 million. Note 5. Sale of Receivables We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale. As such, these transactions are accounted for as a sale. Pursuant to these agreements, we sold $299.9 million and $514.8 million of receivables during the three and six months ended 2026, respectively and $257.6 million and $442.1 million for the comparable periods in 2025. Receivables presented at financial institutions and not yet collected as of June 30, 2026 were approximately $14.7 million and remained in our accounts receivable balance as of that date. All receivables sold were reflected as a reduction of accounts receivable on the consolidated balance sheet at the time of sale. We recorded expense of $13.7 million and $23.0 million related to the sale of receivables which was included in selling, general and administrative expenses in our consolidated statements of operations for the three and six months ended June 30, 2026 and $12.3 million and $21.6 million in 2025, respectively. To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, or delays or failures in collecting trade accounts receivable. The utility of the supply chain financing arrangements also depends upon a benchmark reference rate for the purpose of determining the discount rate applicable to each arrangement. If the benchmark reference rate increases significantly, we 12 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows. Note 6. Inventories Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following (in thousands): June 30, 2026 December 31, 2025 Finished goods $ 433,875 $ 458,420 Work in process 22,429 23,190 Raw materials 204,872 230,541 Unreturned customer inventories 22,990 15,771 Total inventories $ 684,166 $ 727,922 Note 7. Acquired Intangible Assets Acquired identifiable intangible assets consist of the following (in thousands): June 30, 2026 December 31, 2025 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 318,388 $ (119,499) $ 198,889 $ 323,312 $ (111,256) $ 212,056 Trademarks and trade names⁽ᵃ⁾ 89,260 (5,424) 83,836 91,666 (5,284) 86,382 Patents and developed technology 14,123 (5,264) 8,859 14,123 (4,816) 9,307 Other 4,283 (4,283) — 4,280 (4,280) — Total $ 426,054 $ (134,470) $ 291,584 $ 433,381 $ (125,636) $ 307,745 (a) Trademarks and trade names include indefinite lived intangible assets which are not amortized of $81.8 million and $84.2 million as of June 30, 2026 and December 31, 2025, respectively. Total amortization expense for acquired intangible assets was $4.7 million and $9.3 million for the three and six months ended June 30, 2026 and $4.6 million and $9.0 million for the comparable periods in 2025. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $9.2 million for the remainder of 2026, $18.5 million in 2027, $18.5 million in 2028, $17.2 million in 2029 and $146.4 million in the aggregate for the years 2030 through 2041. Note 8. 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 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. 13 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 June 30, 2026 December 31, 2025 Assets Operating lease right-of-use assets $ 97,857 $ 105,178 Liabilities Sundry payables and accrued expenses $ 21,682 $ 21,990 Noncurrent operating lease liabilities 87,248 93,381 Total operating lease liabilities $ 108,930 $ 115,371 Weighted Average Remaining Lease Term 6.5 Years 6.9 Years Weighted Average Discount Rate 5.1 % 5.1 % Three Months Ended June 30, Six Months Ended June 30, Lease Expense 2026 2025 2026 2025 Lease expense $ 6,242 $ 5,830 $ 12,499 $ 12,053 Variable and other lease expense (a) 2,649 2,044 3,853 3,772 Total lease expenses $ 8,891 $ 7,874 $ 16,352 $ 15,825 (a)Relates to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less which are not material. Six Months Ended June 30, 2026 2025 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities $ 11,467 $ 11,028 Right-of-use assets obtained in exchange for new lease obligations (a) $ 2,456 $ 9,828 (a)Includes $1.5 million related to the lease modification and extension for our manufacturing facility and warehouse in Tijuana, Mexico and $5.7 million related to the lease modification and extension for our manufacturing facility in Reynosa, Mexico during the six months ended June 30, 2026 and 2025, respectively. Minimum Lease Payments At June 30, 2026, we are obligated to make minimum lease payments under operating leases through 2034, which are as follows: 2026 $ 11,696 2027 21,134 2028 17,734 2029 16,333 2030 16,536 Thereafter 45,892 Total lease payments 129,325 Less: Interest (20,395) Present value of lease liabilities $ 108,930 14 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 9. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows (in thousands): June 30, December 31, 2026 2025 2024 Credit Agreement (a) Multi-currency revolver $ 280,001 $ 298,426 U.S. dollar term loan (b) 183,975 188,771 Euro term loan (b) 104,957 110,855 Danish revolver 4,579 — Other 15,315 20,663 Total debt $ 588,827 $ 618,715 Current maturities of debt $ 54,627 $ 51,988 Long-term debt 534,200 566,727 Total debt $ 588,827 $ 618,715 (a) Weighted average interest rate, adjusted for the impact of interest rate swap agreements, is 4.8% at both June 30, 2026 and December 31, 2025. 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 $1.6 million at June 30, 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): June 30, 2026 December 31, 2025 Current maturities of debt $ 53.6 $ 45.3 Long-term debt 519.9 552.8 Total outstanding borrowings $ 573.5 $ 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 equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets. The Company is in compliance with its debt covenants. The 2024 Credit Agreement also contains customary events of default. Polish Overdraft Facility The Company has an overdraft facility that provides for borrowings of up to Polish zloty 30 million (approximately $8.0 million) if borrowings are solely in Polish zloty, or up to 85% of the Polish zloty 30 million limit (approximately $6.8 million) if borrowings are in euros and/or U.S. dollars. The overdraft facility automatically renews every three months until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. There were $0.9 million of borrowings outstanding under the overdraft facility at June 30, 2026 and $3.6 million of borrowings outstanding at December 31, 2025. 15 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Maturities of Debt As of June 30, 2026, maturities of debt, net of unamortized deferred financing costs, through 2046, assuming no prepayments, are as follows (in thousands): Multi-Currency Revolver U.S. Dollar Term Loan Euro Term Loan Danish Revolver Other Debt Total Remainder of 2026 $ — $ 4,810 $ 2,746 $ — $ 927 $ 8,483 2027 — 14,655 8,363 — 66 23,084 2028 — 19,703 11,244 — — 30,947 2029 280,001 144,807 82,604 4,579 — 511,991 2030 — — — — — — Thereafter — — — — 14,322 14,322 Total $ 280,001 $ 183,975 $ 104,957 $ 4,579 $ 15,315 $ 588,827 Less: current maturities (30,000) (12,131) (6,924) (4,579) (993) (54,627) Long-term debt $ 250,001 $ 171,844 $ 98,033 $ — $ 14,322 $ 534,200 Deferred Financing Costs Deferred financing costs of $3.1 million related to our term loans and revolving credit facilities as of June 30, 2026, assuming no prepayments, are being amortized in the amounts of $0.5 million for the remainder of 2026, $1.0 million in 2027, $0.9 million in 2028, and $0.6 million in 2029. Note 10. Accumulated Other Comprehensive Income Attributable to SMP Accumulated other comprehensive income attributable to SMP consists of the following (in thousands): Six Months Ended June 30, 2026 Foreign Currency Translation Cash Flow Hedges (a) Postretirement Benefit Plans Total Balance at December 31, 2025 $ 15,931 $ 1,923 $ 3 $ 17,857 Other comprehensive income (loss) before reclassifications (6,535) (b) 1,614 — (4,921) Amounts reclassified from accumulated other comprehensive income (loss) — 202 (1) 201 Net other comprehensive income (loss) (6,535) 1,816 (1) (4,720) Tax amounts (1,002) (472) 1 (1,473) Balance at March 31, 2026 $ 8,394 $ 3,267 $ 3 $ 11,664 Other comprehensive income (loss) before reclassifications (1,786) (b) (56) — (1,842) Amounts reclassified from accumulated other comprehensive income (loss) — 196 (1) 195 Net other comprehensive income (loss) (1,786) 140 (1) (1,647) Tax amounts (411) (37) — (448) Balance at June 30, 2026 $ 6,197 $ 3,370 $ 2 $ 9,569 (a)Consists of the unrecognized gain relating to the change in fair value of cash flow interest rate hedges of $0.1 million ($0.1 million, net of tax) and $1.9 million ($1.4 million, net of tax) in the three and six months ended 16 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) June 30, 2026, respectively; and cash settlement receipts of $0.2 million ($0.1 million, net of tax) and $0.4 million ($0.3 million, net of tax) in the three and six months ended June 30, 2026, respectively. (b)Foreign currency translation primarily reflects the depreciation of the Danish kroner. Six Months Ended June 30, 2025 Foreign Currency Translation Cash Flow Hedges Postretirement Benefit Plans Total Balance at December 31, 2024 $ (29,769) $ 3,924 $ 13 $ (25,832) Other comprehensive income (loss) before reclassifications 10,881 (b) (1,542) (a) $ — 9,339 Amounts reclassified from accumulated other comprehensive income — 412 (4) 408 Net other comprehensive income (loss) 10,881 (1,130) (4) 9,747 Tax amounts 2,134 294 2 2,430 Balance at March 31, 2025 $ (16,754) $ 3,088 $ 11 $ (13,655) Other comprehensive income (loss) before reclassifications 27,390 (b) (2,428) (a) — 24,962 Amounts reclassified from accumulated other comprehensive income — 443 (4) 439 Net other comprehensive income (loss) 27,390 (1,985) (4) 25,401 Tax amounts 4,562 516 1 5,079 Balance at June 30, 2025 $ 15,198 $ 1,619 $ 8 $ 16,825 (a)Consists of the unrecognized loss relating to the change in fair value of cash flow interest rate hedges of $2.0 million ($1.5 million, net of tax) and $3.1 million ($2.3 million, net of tax) in the three and six months ended June 30, 2025, respectively, and cash settlement receipts of $0.5 million ($0.4 million, net of tax) and $0.9 million ($0.7 million, net of tax) in the three and six months ended June 30, 2025, respectively (b)Foreign currency translation primarily reflects the appreciation of the Danish kroner. Note 11. Stock-Based Compensation Plans Our restricted and performance-based share activity was as follows for the six months ended June 30, 2026: Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2025 965,172 $ 28.28 Granted 341,043 36.18 Vested (123,699) 27.26 Forfeited (9,160) 31.21 Performance Shares Adjustment 11,246 $ 26.77 Balance at June 30, 2026 1,184,602 $ 30.64 17 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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): Six Months Ended June 30, 2026 2025 Stock-based compensation expense $ 6.5 $ 3.3 Income tax benefits related to stock-based compensation 1.8 0.9 Stock-based compensation expense, net of tax $ 4.7 $ 2.4 The unrecognized compensation expense related to our restricted and performance-based shares was $21.5 million at June 30, 2026, and is expected to be recognized as shares vest over a weighted average period of 2.9 years and less than one year for employees and directors, respectively. Note 12. 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 six months ended June 30, 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 six months ended June 30, 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 June 30, 2026. Note 13. Derivative Instruments As part of our risk management strategy, we occasionally use derivative instruments, including interest rate swaps, forward foreign exchange contracts and non-derivative instruments such as foreign currency denominated debt, to reduce our market risk for changes in interest rates and to manage foreign exchange rate risk. There have been no material changes during the six months ended June 30, 2026 to our risk management policies, strategies, types of instruments and valuation techniques used in measuring fair value from the information provided in Note 17 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025. The notional amounts of financial instruments used to hedge the above risks are as follows (in millions): June 30, 2026 December 31, 2025 Interest rate swaps $ 207 $ 213 Non-derivative debt instruments $ 187 $ 192 We do not offset derivative assets against liabilities in master netting agreements and there were no receivables or payables recognized on receipt or payment of cash collateral at June 30, 2026 and December 31, 2025. Cash Flow Hedges The fair value of interest rate swap agreements designated as cash flow hedges of interest rate risk are as follows (in thousands): June 30, 2026 December 31, 2025 Derivative assets $ 4,537 $ 2,587 Gains/losses are deferred and recorded in accumulated other comprehensive income, net of income taxes, in our consolidated balance sheet and reclassified to interest expense in the consolidated statements of operations when the hedged interest payments on the underlying borrowings are recognized in interest expense. We expect to reclassify a net gain of $1.5 million from accumulated other comprehensive income in the next twelve months. We perform quarterly 18 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) hedge effectiveness assessments and anticipate that the interest rate swap will be highly effective throughout its term. If it becomes probable that the hedged interest payment(s) will not occur, we immediately recognize the related deferred hedging gains/losses in earnings. There were no such reclassifications during the six months ended June 30, 2026. Net Investment Hedge Foreign exchange remeasurement gains/losses on euro-denominated debt designated in the fourth quarter of 2024 as a hedge of our net investment in Nissens Automotive's foreign operations, whose functional currency is Danish kroner, are recorded as a currency translation adjustment in accumulated other comprehensive income on the consolidated balance sheet, provided the net investment hedge is highly effective. The gains/losses will subsequently be reclassified into earnings when the hedged net investment is either sold or substantially liquidated. We recognized a gain of $1.6 million as a currency translation adjustment in other comprehensive income in the six months ended June 30, 2026 and a loss of $25.8 million in the six months ended June 30, 2025 . No gains or losses related to the net investment hedge were recognized in earnings during the six months ended June 30, 2026 or 2025. Note 14. 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 June 30, 2026 December 31, 2025 Hierarchy Level Fair Value Carrying Amount Fair Value Carrying Amount Deferred compensation 1 29,345 29,345 27,511 27,511 Cash flow hedge interest rate swaps 2 4,537 4,537 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 obtained from independent third parties, are based upon market quotes, and represent the net amount required to terminate the interest rate swap, taking into consideration market rates and counterparty credit risk. The carrying value of our short-term borrowings and long-term debt of $588.8 million and $618.7 million at June 30, 2026 and December 31, 2025, respectively, approximates fair value as the variable interest rates in the facilities reflect current market rates, which are considered level 2 inputs. 19 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 15. Earnings Per Share The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and diluted net earnings per common share attributable to SMP (in thousands, except shares and per share data): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net earnings (loss) attributable to SMP Continuing operations $ 31,761 $ 26,300 $ 50,082 $ 40,005 Discontinued operations (1,393) (1,058) (2,578) (2,197) Net earnings attributable to SMP per common share $ 30,368 $ 25,242 $ 47,504 $ 37,808 Basic net earnings (loss) per common share attributable to SMP Continuing operations $ 1.42 $ 1.20 $ 2.25 $ 1.82 Discontinued operations $ (0.06) $ (0.05) $ (0.11) $ (0.10) Diluted net earnings (loss) per common share attributable to SMP Continuing operations $ 1.39 $ 1.17 $ 2.20 $ 1.79 Discontinued operations $ (0.06) $ (0.04) $ (0.12) $ (0.10) Weighted average common shares outstanding, basic 22,291,768 21,984,492 22,229,731 21,935,921 Dilutive effect of restricted stock and performance-based stock 572,321 438,716 576,682 423,772 Weighted average common shares outstanding, diluted 22,864,089 22,423,208 22,806,413 22,359,693 The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Restricted and performance-based shares 415 327 378 336 Note 16. 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. 20 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following tables contain financial information for each reportable operating segment (in thousands): Three Months Ended June 30, 2026 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total Net sales $ 182,912 $ 144,748 $ 94,675 $ 80,042 $ (778) $ 501,599 Cost of sales 122,516 94,700 54,462 66,080 (778) 336,980 Gross profit 60,396 50,048 40,213 13,962 — 164,619 Selling and marketing expenses 12,196 3,661 5,422 2,014 — Distribution expenses 17,815 9,928 10,339 1,357 — General and administration expenses 10,454 4,419 8,525 5,723 — Supply chain financing expenses 7,467 6,169 99 — — Restructuring expenses 238 2 — 8 — Other expenses — — — — — Segment operating income $ 12,226 $ 25,869 $ 15,828 $ 4,860 $ — 58,783 Unallocated corporate expenses and other 7,939 Other non-operating income, net 793 Interest expense 7,560 Earnings from continuing operations before income taxes $ 44,077 Three Months Ended June 30, 2025 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total Net sales $ 201,699 $ 131,365 $ 90,537 $ 70,252 $ — $ 493,853 Cost of sales 141,051 89,002 55,348 57,563 — 342,964 Gross profit 60,648 42,363 35,189 12,689 — 150,889 Selling and marketing expenses 9,940 3,466 6,356 2,266 — Distribution expenses 15,998 9,497 8,419 1,290 — General and administration expenses 10,456 4,760 9,184 5,140 — Supply chain financing expenses 7,235 5,051 — — — Restructuring expenses 479 53 — 39 — Other expenses — — 1,196 — — Segment operating income $ 16,540 $ 19,536 $ 10,034 $ 3,954 $ — $ 50,064 Unallocated corporate expenses and other 7,228 Other non-operating income, net 1,875 Interest expense 8,295 Earnings from continuing operations before income taxes $ 36,416 21 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Six Months Ended June 30, 2026 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total Net sales $ 396,751 $ 234,252 $ 169,042 $ 154,354 $ (1,634) $ 952,765 Cost of sales 268,190 155,552 96,758 130,107 (1,634) 648,973 Gross profit 128,561 78,700 72,284 24,247 — 303,792 Selling and marketing expenses 24,194 7,330 10,683 4,007 — Distribution expenses 36,574 17,442 19,490 2,625 — General and administration expenses 20,904 8,937 18,186 10,901 — Supply chain financing expenses 14,540 8,207 222 — — Restructuring expenses 510 72 — 32 — Other expenses — — 2 — — Segment operating income $ 31,839 $ 36,712 $ 23,701 $ 6,682 $ — $ 98,934 Unallocated corporate expenses and other 13,997 Other non-operating expense, net (486) Interest expense 15,078 Earnings from continuing operations before income taxes $ 69,373 Six Months Ended June 30, 2025 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total Net sales $ 394,041 $ 220,248 $ 156,719 $ 136,224 $ — $ 907,232 Cost of sales 271,232 150,287 98,276 111,826 — 631,621 Gross profit 122,809 69,961 58,443 24,398 — 275,611 Selling and marketing expenses 22,275 7,663 9,119 4,196 — Distribution expenses 31,445 17,610 17,766 2,786 — General and administration expenses 20,123 9,085 17,314 10,227 — Supply chain financing expenses 13,639 7,978 — — — Restructuring expenses 1,005 189 — 59 — Other expenses — — 1,623 — — Operating income (loss) $ 34,322 $ 27,436 $ 12,621 $ 7,130 $ — $ 81,509 Unallocated corporate expenses and other 14,211 Other non-operating income, net 4,123 Interest expense 16,056 Earnings from continuing operations before income taxes $ 55,365 22 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Depreciation and amortization Vehicle Control $ 4,450 $ 4,070 $ 8,747 $ 7,740 Temperature Control 887 784 1,695 1,562 Nissens Automotive 3,311 3,325 6,577 6,312 Engineered Solutions 2,600 2,427 5,194 4,927 Total operating segment depreciation and amortization 11,248 10,606 22,213 20,541 Corporate 352 319 702 651 Total depreciation and amortization $ 11,600 $ 10,925 $ 22,915 $ 21,192 Capital expenditures Vehicle Control $ 3,477 $ 6,123 $ 7,170 $ 11,502 Temperature Control 1,122 970 1,812 2,271 Nissens Automotive 857 549 1,522 685 Engineered Solutions 1,892 2,144 3,524 3,800 Total operating segment capital expenditures 7,348 9,786 14,028 18,258 Corporate 860 377 920 1,037 Total capital expenditures $ 8,208 $ 10,163 $ 14,948 $ 19,295 (in thousands) June 30, 2026 December 31, 2025 Investment in unconsolidated affiliates Vehicle Control $ 2,849 $ 2,883 Temperature Control 22,825 20,402 Nissens Automotive — — Engineered Solutions 1,641 3,025 Total operating segment investment in unconsolidated affiliates 27,315 26,310 Corporate — — Total investment in unconsolidated affiliates $ 27,315 $ 26,310 (in thousands) June 30, 2026 December 31, 2025 Total assets Vehicle Control $ 759,788 $ 741,732 Temperature Control 349,714 312,884 Nissens Automotive 535,356 531,606 Engineered Solutions 294,090 289,776 Total operating segment assets 1,938,948 1,875,998 Corporate 121,722 119,243 Total assets $ 2,060,670 $ 1,995,241 Note 17. 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 primarily in the United States. 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 23 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 121,488 $ 128,233 $ 262,575 $ 246,599 Electrical and Safety 47,573 56,828 105,439 115,147 Wire Sets and Other 13,851 16,638 28,737 32,295 Total Vehicle Control 182,912 201,699 396,751 394,041 Temperature Control AC System Components 119,294 104,777 184,492 171,968 Other Thermal Components 25,454 26,588 49,760 48,280 Total Temperature Control 144,748 131,365 234,252 220,248 Nissens Automotive Air Conditioning 39,329 40,441 65,602 67,607 Engine Cooling 36,271 35,082 67,722 62,855 Engine Efficiency 19,075 15,014 35,718 26,257 Total Nissens Automotive 94,675 90,537 169,042 156,719 Engineered Solutions Light Vehicle 24,675 21,780 47,595 43,184 Commercial Vehicle 21,537 21,836 44,445 40,441 Construction/Agriculture 11,016 9,584 20,520 18,992 All Other 22,814 17,052 41,794 33,607 Total Engineered Solutions 80,042 70,252 154,354 136,224 Intersegment sales (778) — (1,634) — Total $ 501,599 $ 493,853 $ 952,765 $ 907,232 24 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Geographic Area We sell our line of products primarily in the United States, with additional sales in Europe, Canada, Mexico, and other foreign countries. Sales are attributed to countries based upon the location of the customer. Our sales are substantially denominated in U.S. dollars. The following tables provide disaggregation of net sales information by geographic area within each operating segment (in thousands): Three Months Ended June 30, 2026 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total United States $ 162,635 $ 139,241 $ 6,230 $ 45,004 $ (517) $ 352,593 Europe, excluding Poland 291 134 63,711 14,297 (122) 78,311 Canada 9,136 4,806 79 9,630 — 23,651 Poland 148 — 21,767 1,587 (139) 23,363 Mexico 9,295 82 9 3,132 — 12,518 Other foreign 1,407 485 2,879 6,392 — 11,163 Total $ 182,912 $ 144,748 $ 94,675 $ 80,042 $ (778) $ 501,599 Three Months Ended June 30, 2025 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total United States $ 179,130 $ 126,607 $ 3,912 $ 36,691 $ — $ 346,340 Europe, excluding Poland 199 13 60,867 12,712 — 73,791 Canada 9,400 4,287 103 8,101 — 21,891 Poland 14 — 22,747 2,083 — 24,844 Mexico 11,566 32 28 3,025 — 14,651 Other foreign 1,390 426 2,880 7,640 — 12,336 Total $ 201,699 $ 131,365 $ 90,537 $ 70,252 $ — $ 493,853 Six Months Ended June 30, 2026 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total United States $ 356,378 $ 224,402 $ 11,080 $ 84,436 $ (1,006) $ 675,290 Europe, excluding Poland 506 199 114,843 28,302 (143) 143,707 Canada 19,168 8,718 194 19,356 (275) 47,161 Poland 223 1 36,387 3,942 (210) 40,343 Mexico 17,804 82 43 5,945 — 23,874 Other foreign 2,672 850 6,495 12,373 — 22,390 Total $ 396,751 $ 234,252 $ 169,042 $ 154,354 $ (1,634) $ 952,765 Six Months Ended June 30, 2025 Vehicle Control Temperature Control Nissens Automotive Engineered Solutions Intersegment sales Total United States $ 351,463 $ 211,065 $ 7,419 $ 73,990 $ — $ 643,937 Europe, excluding Poland 399 20 103,972 25,011 — 129,402 Canada 18,790 8,378 174 15,704 — 43,046 Poland 21 — 39,134 2,782 — 41,937 Mexico 20,630 34 52 5,251 — 25,967 Other foreign 2,738 751 5,968 13,486 — 22,943 Total $ 394,041 $ 220,248 $ 156,719 $ 136,224 $ — $ 907,232 Note 18. 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 25 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 June 30, 2026, approximately 1,055 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June 30, 2026, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $113.6 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 jurisdiction in which lawsuits are filed, and the status and results of such claims. As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (i) historical data available from publicly available studies; (ii) an analysis of our recent claims history to estimate likely filing rates into the future; (iii) an analysis of our pending claims; (iv) an analysis of our settlements and awards of asbestos-related damages to date; and (v) an analysis of closed claims with pay ratios and lag patterns in order to develop average future settlement values. Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments and awards of asbestos-related damages was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required. In accordance with our policy to perform an annual actuarial evaluation in the third quarter of each year, an actuarial study was performed as of August 31, 2025. The results of the August 31, 2025 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs, ranging from $127.5 million to $275.9 million for the period through 2065. The change from the prior year study, which was as of August 31, 2024, was a $27.9 million increase for the low end of the range and a $65.1 million increase for the high end of the range. The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future. Based upon the results of the August 31, 2025 actuarial study, in September 2025 we increased our asbestos liability to $127.5 million, the low end of the range, and recorded an incremental pre-tax provision of $44.4 million in loss from discontinued operations in the consolidated statement of operations. Future legal costs, which are expensed as incurred and reported in loss from discontinued operations in the accompanying consolidated statements of operations, are estimated, according to the August 31, 2025 study, to range from $48.5 million to $115.3 million for the period through 2065. Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $8.4 million for each of the six months ended June 30, 2026 and 2025, respectively. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future and whenever events or changes in circumstances indicate that additional provisions may be necessary. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor events and changes in circumstances surrounding these potential liabilities in determining whether to perform additional actuarial evaluations and whether additional provisions may be necessary. At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position. Other Litigation We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental. Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations. We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable. Significant 26 STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated. As additional information becomes available, we reassess our potential liability related to these matters. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations. Warranties We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product. The accrued product warranty costs are based primarily on historical experience of actual warranty claims and included in accrued customer returns on the consolidated balance sheet. The following table provides the changes in our product warranties (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Balance, beginning of period $ 34,992 $ 31,351 $ 27,561 $ 24,715 Liabilities accrued for current year sales 31,578 34,828 61,800 67,453 Settlements of warranty claims (24,368) (30,547) (47,159) (56,536) Balance, end of period $ 42,202 $ 35,632 $ 42,202 $ 35,632 27