Cooper-Standard (NYSE:CPS) management said 2025 marked what it described as the company’s best operational performance in its history, highlighting improvements in safety, quality, cost efficiency, and a stronger full-year earnings profile despite late-year customer production disruptions.
Operational performance: safety, quality, and cost savings
Chairman and CEO Jeff Edwards said the company delivered “world-class” customer metrics in 2025, citing 99% “green” product quality scorecards and 98% “green” program launch scorecards. Edwards also emphasized safety performance, noting a safety incident rate of 0.24 per 200,000 hours worked, which he said was below the “world-class” benchmark of 0.47. He added that 31 plants finished the year with zero reportable incidents.
Fourth-quarter results: lower adjusted EBITDA amid disruptions
Executive Vice President and CFO Jon Banas reported fourth-quarter 2025 sales of $672 million, up 1.8% from the prior-year quarter. Banas said favorable foreign exchange—primarily from the euro—more than offset the impact of reduced production volumes tied to a customer supply chain disruption. In a detailed bridge, management said foreign exchange increased sales by $14 million, while unfavorable volume and mix reduced sales by $3 million.
Adjusted EBITDA in the quarter was $34.9 million, or 5.2% of sales, down from $54.3 million, or 8.2% of sales, a year earlier. Banas attributed the decline primarily to short-term industry disruptions that affected volume, mix, and efficiencies, as well as inflationary and compensation-related cost increases.
On a GAAP basis, Cooper-Standard posted net income of $3.3 million in the fourth quarter, which included a $45 million deferred tax asset valuation allowance release and $11.5 million in restructuring charges. Excluding those and other smaller non-cash items, the company reported an adjusted net loss of $31 million, or $1.73 per diluted share, compared with an adjusted net loss of $2.9 million in the fourth quarter of 2024.
Full-year 2025: adjusted EBITDA up, GAAP loss narrowed
For full-year 2025, sales totaled $2.74 billion, up 0.4% from 2024. Banas said favorable foreign exchange and net customer pricing and recoveries offset lost sales related to customer production disruptions and other unfavorable volume and mix during the year.
Adjusted EBITDA rose to $209.7 million from $180.7 million in 2024, with Banas saying the result came in at the high end of the company’s most recent guidance range. He cited improved manufacturing and supply-chain efficiencies—especially in the first three quarters—restructuring savings, and favorable foreign exchange as key drivers, which more than offset weak volume and unfavorable customer price adjustments.
GAAP net loss improved to $4.2 million from a $78.7 million loss in 2024. On an adjusted basis, the company recorded a net loss of $30.9 million, or $1.73 per diluted share, compared with an adjusted net loss of $56.7 million, or $3.23 per diluted share, in 2024.
Capital expenditures were $48 million in 2025, or 1.8% of sales, similar to the prior year, as management said it continued to focus spending on launch readiness and new business growth while optimizing asset utilization.
Cash flow, liquidity, and refinancing timeline
Cooper-Standard generated free cash flow of $44.6 million in the fourth quarter and $16.3 million for the full year, which management said aligned with prior expectations for positive full-year free cash flow. Net cash provided by operating activities in the fourth quarter was $56 million, down $18.5 million from the year-ago period due to lower cash earnings. Fourth-quarter capital expenditures were $11.7 million.
The company ended 2025 with total liquidity of more than $352 million, including $191.7 million in cash and $160.9 million of undrawn availability on its revolving credit facility. Banas said the company expects free cash flow in 2026 to be positive again, based on its outlook for production volumes and continued operational efficiencies and margin expansion.
On debt maturities, Banas said the company has been monitoring debt markets and consulting advisors as it evaluates refinancing options and continues to target a transaction “in the near future,” though timing will be market-dependent. In the Q&A, he said Cooper-Standard would “prefer to get something done” before certain notes come current, referencing milestones in mid-March and mid-May.
2026 outlook: margin expansion, China growth, and new business momentum
Edwards said management expects increased profitability and further margin expansion in 2026, supported by sales growth of around 3% based on the “most recent industry production outlook.” He said Cooper-Standard expects to reach its near-term strategic target of double-digit EBITDA margin for the full year 2026, with the first quarter likely the weakest for margins and cash flow before improving through the year.
The company highlighted new business momentum, reporting $298 million in net new business awards in 2025. Edwards said 74% of awards were tied to “value-add innovation,” and 74% were related to battery, electric, or hybrid platforms. Management also noted that 51% of 2025 net new business awards were with Chinese OEMs.
China was a major strategic focus in the call. Edwards said Chinese OEMs currently represent about 36% of Cooper-Standard’s revenue in China, compared with approximately 60% from Western OEMs and joint ventures. Based on new awards and targeted business, he said the company expects Chinese OEMs to represent more than 60% of its revenue in China by 2030. He added that Cooper-Standard expects revenue attributable to China to grow at a compound annual growth rate “north of 15%” from 2025 to 2028, and said the company expects to triple total sales to Chinese OEMs globally over the next five years.
In discussing business visibility, Edwards said the company’s 2026 new business is “already being produced” in its factories and that “book business” for 2027 and 2028 exceeds 95%, while he characterized industry volume and mix as the primary swing factor. He also said the company had already identified well above 90% of its cost improvement commitments for 2026, calling it the highest level in a decade.
On major platforms, management said its top 10 programs for 2026 represent about 45% of planned revenue, based on current production estimates and expected average content per vehicle of about $190. The company added that seven of those 10 platforms offer multiple powertrain options, which management said reduces risk tied to shifts in consumer preference or regulation.
About Cooper-Standard (NYSE:CPS)
Cooper-Standard Holding Inc is a global supplier of sealing, fuel and brake delivery, and fluid transfer systems for the automotive industry. The company designs and manufactures engineered rubber, plastic and metal products, including sealing systems for doors, windows and powertrain assemblies, fuel and brake hoses and lines, and fluid transfer components such as coolant, refrigerant and washer fluid systems.
Founded in 1922 and headquartered in Novi, Michigan, Cooper-Standard operates manufacturing facilities and technical centers across North America, Europe, South America and Asia.
