Barrington suspends Superior Industries rating after ‘sudden loss’

Barrington analyst Gary Prestopino suspended the firm’s rating on Superior Industries (SUP) following the Q1 report. The company announced that it had received notifications from certain larger North American customers of their intent to resource all outstanding purchase orders to another supplier, the analyst tells investors in a research note. The firm says the “sudden loss” of volume will result in a short-term liquidity constraint and reductions to the company’s earnings generation. The combination of these items has put in doubt Superior’s ability to meet the near-term covenant thresholds in its term loan and revolving credit facility, contends Barrington. The firm suspended its 2025 and 2026 adjusted EBITDA estimates and its rating “until more is known, due to the heightened uncertainty regarding the outlook for the company.”