Stoneridge, Inc. (NYSE:SRI) Q1 2024 Earnings Call Transcript

Matthew Horvath: Yes, Gary, a couple of things to that. One, as with any program, as you approach more stable or peak annual revenue, the margin will be – will improve, right? The incremental volume, obviously, the margin will improve. And typically, there’s a ramp-up of any program – any normal program, not just those two. Separately, like we said, the aftermarket tachograph product has an accretive margin profile. But also as we’ve talked about for quite a while now, incremental take rate to MirrorEye can be extremely accretive from a contribution margin, right? We – as everyone knows, we have spent the engineering and structured the organization for the amount of growth that we expect from these MirrorEye programs, right? So as they ramp up, not only will the typical program to kind of quoted volume improve margin, but we’ve always said we think that there’s upside to that as adoption improves and take rate improves, and that can be very accretive as well.

Gary Prestopino: Okay. Thank you.

Matthew Horvath: Thanks, Gary.

James Zizelman: Appreciate it.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jim Zizelman for any closing remarks.

James Zizelman: Thank you. Thanks, everyone, for joining us for the call this morning. I know your time is very important, and we truly appreciate your willingness to engage us today. As we discussed earlier on the call, we are delivering on the key priorities we outlined for 2024 and expect our efforts to continue to drive long-term profitable revenue growth and significant earnings expansion going forward. We will continue to deliver on our commitments by focusing on our long-term strategy, our broad operational improvements and excellence in execution. We expect that our performance, along with our unique mix of industry-changing product platforms will continue to drive stronger shareholder value. Thanks again, everyone.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.