Cooper Standard Reports Robust Operating Performance and Significant Margin Improvement in the First Quarter of 2025
PR Newswire
NORTHVILLE, Mich., May 1, 2025
NORTHVILLE, Mich., May 1, 2025 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the first quarter 2025.
First Quarter 2025 Highlights
-- Gross profit of $77.2 million, an increase of 25.2% vs. the first quarter
of 2024
-- Operating income of $22.3 million, an increase of 539.2% vs. the first
quarter of 2024
-- Net income of $1.6 million, or $0.09 per diluted share, an increase of
$33.2 million vs. the first quarter of 2024
-- Adjusted net income of $3.5 million, or $0.19 per diluted share, an
increase of $34.1 million vs. the first quarter of 2024
-- Adjusted EBITDA of $58.7 million, or 8.8% of sales, an increase of $29.4
million vs. the first quarter of 2024
"Our operating performance in the first quarter was outstanding," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "Our global team is successfully executing our strategy to deliver increasing value to all our stakeholders through improved operating efficiencies, driving innovation, and delivering world-class quality and service. Despite current market turbulence, we are confident that we can continue to improve our business and our results as we execute our plans and remain focused on the aspects of our business that are within our control."
Consolidated Results
Three Months Ended March 31,
----------------------------------------------------------------------------------------
2025 2024
-------------------------------------------- ------------------------------------------
(Dollar amounts in millions except per share amounts)
Sales $ 667.1 $ 676.4
Net
income
(loss) $ 1.6 $ (31.7)
Adjusted
net
income
(loss) $ 3.5 $ (30.6)
Income
(loss)
per
diluted
share $ 0.09 $ (1.81)
Adjusted
income
(loss)
per
diluted
share $ 0.19 $ (1.75)
Adjusted
EBITDA $ 58.7 $ 29.3
Sales declined by 1.4% in the first quarter due primarily to foreign exchange headwinds, partially offset by positive volume and mix, including net customer price adjustments.
Net income for the first quarter 2025 was $1.6 million, including restructuring charges of $2.1 million and other special items. Net loss for the first quarter 2024 was $31.7 million, including restructuring charges of $1.1 million and other special items. Excluding these special items and their related tax impact, adjusted net income was $3.5 million in the first quarter 2025 compared to adjusted net loss of $30.6 million in the first quarter of 2024, or an increase of $34.1 million. The year-over-year improvement was primarily driven by increased manufacturing and purchasing efficiency, the timing of certain royalty payments, and lower SGA&E expense, partially offset by ongoing general inflation.
Adjusted EBITDA for the first quarter of 2025 was $58.7 million compared to $29.3 million in the first quarter of 2024. The year-over-year change was primarily due to increased manufacturing and purchasing efficiency, the timing of certain royalty payments, and lower SGA&E expense, partially offset by ongoing general inflation.
Adjusted net income (loss), adjusted EBITDA and adjusted income (loss) per diluted share are non-GAAP measures. Reconciliations to the most directly comparable financial measures, calculated and presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), are provided in the attached supplemental schedules.
New Business Awards
The Company continues to leverage its world-class engineering and manufacturing capabilities, its innovation programs and its reputation for quality and service to win new business awards with its OEM customers and capitalize on positive trends associated with hybrid and battery electric vehicles. During the first quarter of 2025, the Company received net new business awards totaling $55.0 million in anticipated future annualized sales, primarily related to awards on battery electric vehicle and hybrid vehicle platforms.
Segment Results of Operations
Sales
Three Months Ended March 31, Variance Due To:
--------------------------------------------
Volume/ Foreign
2025 2024 Change Mix* Exchange
------------- ------------- -------------- --------------- --------------
(Dollar amounts in thousands)
Sales to external
customers
Sealing systems $ 344,311 $ 351,279 $ (6,968) $ 3,767 $ (10,735)
Fluid handling
systems 303,998 305,515 (1,517) 2,840 (4,357)
------------- ------------- -------------- --------------- --------------
Total for
reportable
segments $ 648,309 $ 656,794 $ (8,485) $ 6,607 $ (15,092)
Corporate,
eliminations and
other 18,760 19,631 (871) (871) --
------------- ------------- -------------- --------------- --------------
Consolidated $ 667,069 $ 676,425 $ (9,356) $ 5,736 $ (15,092)
============= ============= ============== =============== ==============
* Net of customer price adjustments, including recoveries.
Adjusted EBITDA
Three Months Ended March 31, Variance Due To:
------------------------------------- ---------------------------------------------
Cost
Volume/ Foreign Decreases/
2025 2024 Change Mix* Exchange (Increases)**
----------- ----------- ----------- ------------- ------------ ----------------
(Dollar amounts in thousands)
Segment adjusted
EBITDA
Sealing systems $ 32,312 $ 21,371 $ 10,941 $ (332) $ (2,146) $ 13,419
Fluid handling
systems 20,982 10,982 10,000 837 6,715 2,448
----------- ----------- ----------- ------------- ------------ ----------------
Total for
reportable
segments $ 53,294 $ 32,353 $ 20,941 $ 505 $ 4,569 $ 15,867
Corporate,
eliminations and
other 5,421 (3,005) 8,426 (314) (2,476) 11,353
----------- ----------- ----------- ------------- ------------ ----------------
Consolidated $ 58,715 $ 29,348 $ 29,367 $ 191 $ 2,093 $ 27,220
=========== =========== =========== ============= ============ ================
* Net of customer price adjustments, including recoveries.
** Net of savings from 2024 restructuring initiatives.
Additional detail on our quarterly segment variance analyses is available in our periodic filings with the Securities and Exchange Commission.
Cash and Liquidity
As of March 31, 2025, Cooper Standard had cash and cash equivalents totaling $140.4 million. Total liquidity, including availability under the Company's amended senior asset-based revolving credit facility, was $300.1 million at the end of the first quarter of 2025.
Based on current expectations for light vehicle production and customer demand for our products, the Company believes it has sufficient financial resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future. These financial resources include current cash on hand, continuing access to flexible credit facilities, and expected future positive cash generation.
Outlook
Our industry and, indeed, the global economy is facing unprecedented uncertainty due to changing trade and tariff policies being implemented or considered by the governments of the United States and other nations. Despite this trade-related uncertainty, the Company believes that the underlying demand for new light vehicle production in its key operating regions remains strong, supported by the age of the existing fleet, increasing population, increasing numbers of newly licensed drivers, and declining vehicle inventories. The Company believes it is well-positioned to manage through tariffs that may be imposed on the products it ships across borders, primarily in North America, but acknowledges that overall light vehicle production volumes may be impacted by changing trade policies. While the uncertainty related to trade and tariff policies make forecasting difficult in the near term, the Company remains confident that the continuing successful execution of its plans and strategies will drive increasing profit margins and returns on invested capital over time as markets stabilize.
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