SMP Sales Reach $507.8 Million; Verra Reports $258.9 Million in Revenue
Key Facts
Standard Motor Products and Verra Mobility reported third-quarter 2026 results on October 30, posting net sales of $507.8 million and total revenue of $258.9 million, respectively. Standard Motor Products, known by the ticker SMP, said sales rose from $498.8 million in the same period of 2025. Diluted earnings per share were $1.42, while adjusted diluted earnings per share reached $1.54, up 13.2% year over year. Verra Mobility, known by the ticker VRRM, reported net income of $40.4 million. Both companies reaffirmed their annual plans, but SMP reiterated its sales growth and adjusted EBITDA margin ranges, while Verra maintained the financial guidance it issued in August.
SMP said adjusted sales were $512.9 million, up 2.8% in the third quarter. The comparison between net and adjusted sales reflects the two measures the company reported for the same period. The company also distinguished reported diluted earnings per share of $1.42 from adjusted earnings per share of $1.54. The 13.2% year-over-year growth rate applies specifically to adjusted diluted earnings per share. The company reaffirmed its outlook for low- to mid-single-digit annual sales growth and an adjusted EBITDA margin of 11% to 12% for fiscal 2026.
On debt, SMP said net leverage improved to 1.8 times in the third quarter, from 2.5 times in the second quarter, exceeding its target of less than 2.0 times during fiscal 2026. The company had reported net debt of $510.2 million at the end of the second quarter, compared with $599.4 million at the end of the first quarter. Leverage had then fallen from 3.0 times in the first quarter to 2.5 times in the second. That places the third-quarter improvement within the downward trend the company reported in its previous disclosure. SMP tied its annual reaffirmation to continued expectations for sales growth and an adjusted profitability margin within the specified ranges.
Verra’s results combined growth in government solutions with a decline in commercial services. Government solutions revenue was $136.8 million, up 12% year over year, with services revenue increasing 13%. The company said $8.6 million of the segment’s growth came from services outside its New York City Transit management contract, while $5.6 million was tied to camera installations under the contract. By contrast, commercial services revenue fell 14% to $100.3 million, and segment profit declined 22% to $61.3 million. The company attributed part of the decline to a 20%, or $16.1 million, drop in rental-car toll revenue, citing contract extension terms, fleet sizes and weaker travel among the factors.
The divergence between the two segments was reflected in Verra’s adjusted profitability metrics: earnings per share were $0.36, compared with $0.37 in the third quarter of 2025. Adjusted EBITDA fell to $103.9 million from $113.3 million in the year-earlier period. Meanwhile, cash generated from operations was $114.5 million, and the government solutions segment recorded a record quarter for bookings, excluding the quarter in which the New York City Transit management contract was renewed. The company reaffirmed its guidance for annual revenue of $945 million to $965 million, adjusted EBITDA of $360 million to $370 million, adjusted earnings per share of $1.11 to $1.17, and free cash flow of $105 million to $115 million. The guidance assumes TSA-managed passenger volumes will decline by more than 1% compared with 2025.
The results coincided with transitions in the CFO roles at both companies. Verra’s board appointed Matthew Cuvarda interim CFO after the company announced on October 15 that Craig Conti would step down from the role. SMP said Nathan Iles would leave his post on October 30 and James Burke would become interim CFO effective the same day, pending the appointment of a permanent successor. Verra said it would not hold a conference call on its third-quarter results because of the leadership transitions. The company expects to resume its regular quarterly calls when it reports fourth-quarter and full-year 2026 results.
Before the results were released, SMP shares closed at $38.25 on October 29, while VRRM shares closed at $3.34. Both prices reflect the close of the session before the results were released on the morning of October 30. They therefore do not reflect post-disclosure trading or measure the market’s reaction to the results. Verra had previously announced that it would release its results on October 30, alongside confirmation of its annual outlook. The next updates identified by the company include resuming earnings calls with its fourth-quarter and full-year 2026 results.