Breaking Down Superior Industries International, Inc. (SUP) Financial Health: Key Insights for Investors

You've been tracking Superior Industries International, Inc. (SUP) and, honestly, the numbers are giving you whiplash: a Q1 2025 net sales beat, but the stock price plummeted anyway. The initial report showed net sales of $322 million, a slight increase year-over-year, and the net loss narrowed significantly to $13 million from the prior year, a positive trend. But here's the quick math: management withdrew its full-year 2025 guidance because a sudden, critical loss of volume from major North American OEM customers wiped out an estimated 33% of their expected annual revenue. That's a liquidity shock, not a simple market wobble. The company is now navigating a commitment letter for up to $70 million in additional term loans and covenant relief just to manage the near-term crisis against a total debt of $516 million as of March 31, 2025. We need to defintely look past the $1.16 Billion trailing twelve-month revenue figure and map out the real risk of this customer concentration problem.

Revenue Analysis

You need to know where the money is coming from to assess risk, and for Superior Industries International, Inc. (SUP), the revenue story in 2025 is a tale of two markets and a major near-term shock. The core business is simple: manufacturing and selling aluminum wheels to original equipment manufacturers (OEMs) in the automotive industry. That product focus is consistent, but the geographic mix and recent customer volume losses are what you need to focus on right now.

The most recent Trailing Twelve Months (TTM) revenue, as of November 2025, sits at approximately $1.16 Billion USD. This figure reflects a challenging environment, showing a decline from the prior year's revenue of $1.26 Billion USD. While the company saw a modest year-over-year revenue increase of 1.7% in the first quarter of 2025, reaching $321.6 million, the full-year outlook is now much murkier.

Here's the quick math on where the sales are generated. Superior Industries International, Inc. reports its revenue across two main geographic segments: North America and Europe. The first quarter of 2025 data shows a clear dominance from the North American segment, which is where the company's 'local-for-local footprint' is proving advantageous in a market pushing for supply chain localization (bringing production closer to the end-user).

• North America Net Sales: $203.7 million (approx. 63.3% of total Q1 revenue)
• Europe Net Sales: $117.9 million (approx. 36.7% of total Q1 revenue)

To be fair, the North American segment grew by $10.2 million year-over-year in Q1 2025, while the European segment actually saw a slight decline. This regional divergence is a key trend to watch, as the strength of the North American auto market has been a critical support pillar.

What this estimate hides is the significant, sudden change in the revenue stream that hit after Q1 2025. The company was forced to withdraw its full-year guidance because it lost a substantial volume of business from major North American OEM customers. This lost volume was significant, representing an estimated 33% of expected 2025 revenue. This is not a slight dip; it's a material change to the business model that demands a financial restructuring (recapitalization transaction) to reduce debt and manage liquidity constraints. The company's focus is now on recovering these losses through short-term opportunities and leveraging its local manufacturing in Mexico and Poland. You can dig deeper into the market perception and institutional movements by Exploring Superior Industries International, Inc. (SUP) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking for a clear picture of Superior Industries International, Inc.'s (SUP) ability to turn sales into profit, and honestly, the numbers show a company in a challenging but transitional period. The key takeaway is that while operational improvements are visible, a sudden customer volume loss has overshadowed the near-term profitability outlook, forcing a financial restructuring.

For the trailing twelve months (TTM) ending October 2025, Superior Industries International, Inc.'s profitability ratios remain negative, but they show a slight improvement from the prior year. The TTM Operating Margin stands at -4.15%, and the Net Margin is -6.2%. This means for every dollar of revenue, the company is still losing money after accounting for operating expenses and all costs, respectively. It's a tough spot, but it's defintely an improvement from the -8.43% Operating Margin seen in 2023.

Here's the quick math on the first quarter (Q1) of 2025, which gives a more granular view of the performance before the full impact of the recent customer volume loss hit. Q1 2025 Net Sales were $322 million, resulting in a Net Loss of $13 million.

• Gross Profit Margin (Q1 2025): 4.97% (Based on Gross Profit of $16 million).
• Operating Profit Margin (Q1 2025): 0.19% (Based on Income from Operations of $0.6 million).
• Net Profit Margin (Q1 2025): -4.04% (Based on Net Loss of $13 million).

Trends in Profitability and Operational Efficiency

The trend in profitability is a story of two halves. Superior Industries International, Inc. has been executing a successful global overhead reduction initiative and completing its European transformation, which should drive margin expansion. This is why the full-year 2025 outlook, before it was withdrawn, projected a significant improvement, with Adjusted EBITDA expected to be between $160 million and $180 million.

But the near-term risk is real. The Q1 2025 Gross Profit of $16 million was lower than the $21 million in Q1 2024, primarily due to unfavorable cost absorption from lower production volumes. The company recently withdrew its full-year guidance because certain North American Original Equipment Manufacturer (OEM) customers rescinded contracts, representing a sudden loss of volume and creating a short-term liquidity constraint. That's a major headwind.

The operational efficiency is best seen in the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin on Value-Added Sales (VAS), a key non-GAAP metric for auto suppliers. For Q1 2025, this margin was 15% on VAS of $169 million, down from 18% in the prior year period. The company is focused on cash flow generation, and Unlevered Free Cash Flow (UFCF) for Q1 2025 was strong at $33 million, a significant increase from the prior year, mostly driven by lower working capital.

Comparison with Industry Peers

When you stack Superior Industries International, Inc. against its key competitors in the Auto Components industry, its profitability challenges become clear. The negative TTM Operating Margin of -4.15% is a significant outlier. Peers like American Axle & Manufacturing and Lear Corporation are generating positive operating income, which shows the gap Superior Industries International, Inc. needs to close.

The goal isn't just to be profitable; it's to be competitive. The negative margin indicates that the company's cost of goods sold and operating expenses are still too high relative to its sales, especially when compared to the positive margins of its peers. The strategic move to a 'local-for-local' manufacturing footprint in Mexico and Poland is the right long-term play to address this cost structure, but the short-term execution risk is high.

For a full picture of the company's financial standing, you should review the full analysis in Breaking Down Superior Industries International, Inc. (SUP) Financial Health: Key Insights for Investors.

Next Step: Finance: Model the impact of the lost OEM volume on the remaining 2025 revenue and EBITDA forecast, assuming a 33% reduction in the original 2025 sales guidance, to stress-test the current liquidity plan by next Wednesday.

Debt vs. Equity Structure

You need to know how Superior Industries International, Inc. (SUP) funds its operations, and the short answer is that the capital structure is undergoing a radical, distressed overhaul right now. The company is moving from a highly leveraged, debt-heavy position to a new structure where lenders will take over a significant portion of the equity, essentially converting debt to ownership.

This isn't a typical growth-funding strategy; it's a critical balance sheet reset driven by volume losses and liquidity issues. The planned recapitalization will slash total obligations, but it comes at the expense of existing common shareholders.

The core issue is that the company faced a significant liquidity shortfall after losing purchase orders from major North American original equipment manufacturer (OEM) customers, which represented 33% of its planned 2025 revenues. This forced a dramatic re-evaluation of its debt load.

The Pre-Restructuring Debt Load

Before the recently announced restructuring, Superior Industries International, Inc. (SUP) carried a substantial debt burden. As of the end of the first quarter of 2025, the company reported Total Debt of $516 million and Net Debt of $462 million. This was a significant overhang, especially given the operational headwinds.

Here's the quick math on the pre-restructuring balance sheet, using the December 31, 2024 data, which showed a dire financial state:

• Short-term debt was $7.939 million.
• Long-term debt (less current portion) was $481.449 million.
• Total Shareholders' Equity was a deficit of ($276.218 million).

When a company has negative equity, its Debt-to-Equity (D/E) ratio is essentially meaningless as a comparative number, but it screams financial distress. For context, the average D/E ratio for the Auto Parts industry in November 2025 is around 0.59. Superior Industries International, Inc.'s capital structure was defintely not in line with its peers.

Refinancing and the Debt-for-Equity Swap

The company has been actively trying to manage its debt. In August 2024, Superior Industries International, Inc. successfully refinanced its existing debt, extending maturities to December 2028 and reducing total debt from $627 million to $521 million. This was a temporary fix.

The real action came in July 2025 with the announcement of a planned recapitalization. This is a debt-for-equity swap, a move S&P Global Ratings views as a distressed exchange, leading to a downgrade to 'CC' in May 2025.

The restructuring is set to close in the third quarter of 2025 and will fundamentally rebalance the capital structure:

• Lenders will convert up to approximately $550 million of their term loan debt into 96.5% of the new entity's common stock.
• The company's total debt and preferred obligations will be cut from $982 million to around $125 million.
• Existing common stockholders will exchange their shares for a mere $0.09 per share in cash, totaling $3.1 million.

This is a major deleveraging event, but it is a near-total wipeout for current common equity holders. The capital structure is shifting from a high-risk, debt-driven model to one controlled by former creditors. The new structure will be much cleaner, but the transition is brutal for existing equity. For more context on who is investing in the company's new structure, you should read Exploring Superior Industries International, Inc. (SUP) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if Superior Industries International, Inc. (SUP) can cover its near-term bills, especially given the recent market noise. The short answer is that while the company's current liquidity ratios appear acceptable on paper, the underlying cash flow dynamics and recent customer losses signal a serious, immediate liquidity constraint. You can't just look at the ratios here; you have to read the fine print.

Here's the quick math on the company's liquidity position as of March 31, 2025, which represents the most recent fiscal quarter data:

• Current Ratio: The ratio is 1.49. This means Superior Industries International, Inc. (SUP) holds $1.49 in current assets for every $1.00 of current liabilities. A ratio above 1.0 is generally seen as healthy, suggesting enough assets to cover short-term debts.
• Quick Ratio: This is the acid-test ratio, which excludes inventory. It sits at 0.84. This is the more telling number. It shows that without selling off inventory (which can be slow in the auto-supply chain), the company only has $0.84 in highly liquid assets for every $1.00 of immediate debt. That's defintely tight.

The company's working capital (Current Assets minus Current Liabilities) was a positive $110.57 million as of Q1 2025. This positive figure is a strength, but its composition is key. A large chunk of those current assets is inventory, which is why the Quick Ratio drops so sharply. The trend here is that the working capital is positive, but the quality of its assets is a concern, especially with the auto industry's volatility.

To truly understand the company's health, we must look at where the cash is actually coming from and going to. The cash flow statement for the first quarter of 2025 is a mixed bag:

The $24.0 million in cash provided by operating activities is a significant improvement over the prior year, but this was largely due to managing working capital, not necessarily a huge jump in core profitability. You can't rely on working capital shifts to drive cash flow forever. The company is generating enough cash from operations to cover its investing needs (CapEx), which is a positive sign for operational self-sufficiency.

Still, the biggest risk is the immediate liquidity outlook. Subsequent to the Q1 2025 report, Superior Industries International, Inc. (SUP) received notifications from major North American OEM customers intending to move their orders to other suppliers. This sudden loss of volume created a short-term liquidity constraint and led management to state publicly that they do not expect to have sufficient liquidity to fund operations and meet obligations over the next twelve months, and may not meet financial covenants as early as June 30, 2025. They had to secure a commitment for up to $70 million in additional term loans to bridge the gap. This is a red flag on their solvency (long-term debt-paying ability), despite the decent Q1 cash flow numbers. The company is actively pursuing a recapitalization transaction to reduce its total debt of $516 million as of March 31, 2025. The market is worried. For more on the long-term vision, check out the Mission Statement, Vision, & Core Values of Superior Industries International, Inc. (SUP).

Your action item is clear: Monitor the progress of the recapitalization transaction and the $70 million loan access conditions immediately.

Valuation Analysis

Superior Industries International, Inc. (SUP) presents a complex valuation picture right now; the stock is trading at a depressed level, suggesting it's undervalued based on its core earnings power (EV/EBITDA), but its negative Price-to-Earnings (P/E) ratio and high Price-to-Book (P/B) ratio signal significant financial stress and market skepticism about its near-term profitability.

The market is clearly punishing the stock for its recent performance, with the price dropping a staggering 84.07% in the 2025 calendar year alone. This volatility is typical for a company in the auto parts sector facing cyclical headwinds and high debt, which is why we must look past the simple price-to-earnings number.

Is SUP Overvalued or Undervalued?

The core of the valuation debate for Superior Industries International, Inc. lies in a few key metrics. The Price-to-Earnings (P/E) ratio is currently negative at -0.75, which simply means the company is reporting a net loss over the last twelve months (TTM). You can't value a loss-making company on P/E, so we turn to a more reliable measure for a capital-intensive business: Enterprise Value-to-EBITDA (EV/EBITDA).

As of November 2025, the TTM EV/EBITDA sits at a lean 3.95. Here's the quick math: a multiple this low is defintely below the industry average and often suggests a stock is undervalued, or, alternatively, that the market is pricing in a significant risk of future EBITDA decline. For context, the company's Enterprise Value (EV) is approximately $436.23 million. However, the Price-to-Book (P/B) ratio is high at 4.78, telling us the market is paying almost five times the company's net asset value, which is a red flag for a manufacturing company.

Here are the key valuation metrics as of late 2025:

Stock Performance and Analyst Sentiment

The stock's journey over the last year has been brutal. The 52-week trading range is wide, from a low of $0.1051 to a high of $3.66. This massive swing reflects extreme investor uncertainty. The stock price has fallen by 14.74% over the last 12 months, which is a major concern for short-term holders.

For a deeper dive into who is still buying, you might want to read Exploring Superior Industries International, Inc. (SUP) Investor Profile: Who's Buying and Why?

On the dividend front, the company has suspended payouts. As of November 18, 2025, the TTM dividend payout is $0.00, resulting in a 0.00% dividend yield. This is a clear signal that management is prioritizing cash retention and debt reduction over returning capital to shareholders, which is a necessary, but painful, move for a company under financial pressure.

What the street thinks is mixed, but not outright bearish. The average one-year price target from analysts is significantly higher at $7.14, projecting a massive rebound by August 2026. Still, the current consensus rating is a 'hold candidate,' which is analyst-speak for 'wait and see.'

• Stock price fell 14.74% over the last 12 months.
• 52-week low was around $0.11, high was $3.66.
• Analyst price target averages $7.14 for 2026.
• Dividend is currently suspended (0.00% yield).

The opportunity here is for a turnaround, but you need to be realistic about the risk. The low EV/EBITDA suggests value, but the negative P/E and high P/B point to a deep value trap unless profitability can be restored quickly. Finance: monitor the next two quarterly earnings calls for a clear path back to positive net income.

Risk Factors

You're looking at Superior Industries International, Inc. (SUP) and the first thing you need to understand is that the company is navigating a crisis, not just a cyclical downturn. The biggest risk isn't the auto market's typical volatility; it's a sudden, massive loss of core business coupled with a crushing debt load that forced a financial overhaul in 2025.

This situation is defintely high-stakes. The most critical operational and financial risks are intertwined, forcing the company to execute a complex restructuring just to stay afloat.

• Strategic and Operational Risk: Customer Concentration Loss

The most immediate and damaging risk is the sudden loss of significant purchase orders from major North American Original Equipment Manufacturer (OEM) customers. This loss, which began in the second quarter of 2025, represents a staggering 33% of Superior Industries International, Inc.'s planned 2025 revenues. Losing a third of your top-line business overnight is a catastrophic event. This highlights a persistent risk in the auto parts industry: a limited number of customers-like General Motors, Ford, and VW Group-represent a huge share of sales (historically around 77% in 2024), making the company extremely vulnerable to supplier resourcing decisions.

• Financial Risk: Liquidity and Debt Overhang

The lost revenue immediately created a severe liquidity constraint. As of March 31, 2025, the company had total debt of approximately $516 million. The high interest burden on this debt, combined with the volume loss, was forecast to cause a significant cash burn in 2025. To address this, Superior Industries International, Inc. was forced into a distressed debt restructuring.

Here's the quick math on the deleveraging:

This debt-for-equity swap, announced in July 2025, means term-loan lenders will convert up to $550 million of claims for 96.5% of the new equity. Common stockholders will receive only a token cash payment of about $0.09 per share, totaling approximately $3.1 million in aggregate. This is a clear signal of the financial distress.

• External and Market Risks

Beyond the internal issues, the company faces broader industry headwinds. The automotive market is cyclical, and general economic uncertainty could impact consumer spending, which directly affects demand for new vehicles and, by extension, aluminum wheels. Still, some external factors are actually favorable: the company's local-for-local manufacturing footprint in Mexico and Poland is benefiting from new tariffs-specifically, duties over 100% on Chinese wheel imports into the U.S. and nearly 50% on Moroccan imports into Europe. This tariff dynamic is driving an intense urgency from OEMs to localize production, which is a potential long-term opportunity for Superior Industries International, Inc. to recover volume.

• Mitigation and Next Steps

The primary mitigation strategy is the comprehensive restructuring and change-of-control transaction, which radically deleverages the balance sheet, reducing financial risk and the interest burden. The company also secured an agreement with term-loan lenders for access to up to $70 million of additional term loans and financial covenant relief. They are also leveraging their existing capacity-approximately 20% excess capacity in Europe and Mexico-to aggressively pursue new business, evidenced by a doubling of open customer quotes in early 2025. For a deeper dive into the company's strategic direction post-restructuring, you should review the Mission Statement, Vision, & Core Values of Superior Industries International, Inc. (SUP).

Growth Opportunities

You need to know the core story behind Superior Industries International, Inc. (SUP) is one of operational advantage battling significant financial headwinds. The future growth prospects hinge on two key drivers: a strategically placed manufacturing footprint and a shift toward higher-value products. Honestly, the biggest near-term action for investors is understanding the company's planned acquisition, which is set to close in late 2025, fundamentally changing the investment profile. Exploring Superior Industries International, Inc. (SUP) Investor Profile: Who's Buying and Why?

Near-Term Financial Reality and Projections

Let's start with the numbers. The company withdrew its full-year 2025 guidance due to macroeconomic uncertainty and the sudden loss of volume from certain North American OEM customers, which represented a massive 33% of its expected 2025 revenue. This is a serious blow, but it's not the whole story. In the first quarter of 2025, Superior Industries International, Inc. still reported Net Sales of $322 million, a slight increase from the prior year, and it narrowed its Net Loss to $13 million from $33 million in Q1 2024.

Here's the quick math: Analysts had been projecting annual 2025 revenue to hit around $2,511 million and annual EBITDA to be $222 million before the volume loss news hit. You must now view those full-year forecasts as highly optimistic. Still, the company's Adjusted EBITDA margin in Q1 2025 was 15%, showing the underlying business can generate cash, even if the top line is under pressure.

Core Growth Drivers: Localization and Premium Products

Superior Industries International, Inc. holds a competitive advantage that is defintely playing out in the current geopolitical climate: its 'local-for-local' manufacturing strategy. This means producing wheels close to where the final vehicles are assembled, mainly leveraging facilities in Mexico and Poland.

This localized footprint is a major benefit because it helps dodge the impact of global tariffs. For example, tariffs on Chinese wheel imports into the U.S. are now over 100%, and tariffs on Moroccan imports into Europe are nearly 50%. This tariff dynamic makes Superior Industries International, Inc.'s local production a more cost-effective option for Original Equipment Manufacturers (OEMs).

Product innovation also drives future growth. The company is focusing on a leading portfolio of products, including:

• Larger, more premium wheels that boost value-added sales per wheel.
• High-end Electric Vehicle (EV) wheels, which require more integrated production.
• Strong, long-standing relationships with major OEMs.

Strategic Initiatives and the 2025 Acquisition

The biggest near-term action item for any investor is the planned change in ownership. Superior Industries International, Inc. is set to be acquired by a group of its existing term loan investors, with the transaction on target to close on September 30, 2025. This move is a strategic recapitalization designed to significantly reduce the company's substantial debt burden and provide the financial strength to execute its long-term growth strategies.

The company is also actively exploring strategic partnerships to expand its footprint in emerging markets. But, the immediate focus is on managing the balance sheet. They have secured access to up to $70 million of additional term loans to address short-term liquidity constraints caused by the lost OEM volume. This recapitalization, if implemented as contemplated, will give the new, private entity the financial flexibility to capitalize on its manufacturing and product advantages without the constant pressure of public market scrutiny on its debt load.