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Cooper Standard's Fourth Quarter Overview

Cooper-Standard Holdings Inc., a key player in the automotive supply sector, has announced its financial results for the fourth quarter and the entirety of 2025, demonstrating resilience amid widespread industry disruptions. The firm reported fourth-quarter sales reaching $672.4 million, marking a 1.8% increase from the same period in 2024. Despite a slight dip in net income and operating income, the overall financial health and cash flow of the company remained strong, showcasing an ability to adapt and strategize effectively under challenging conditions.

Financial Highlights

In the fourth quarter of 2025, Cooper Standard's operating income decreased significantly to $0.6 million, down from $31.1 million reported in 2024. The net income reflected a decline to $3.3 million, translating to $0.18 per diluted share. Meanwhile, the Adjusted EBITDA stood at $34.9 million, representing 5.2% of total sales. Notably, cash flow derived from operating activities totaled $56.2 million, contributing to a free cash flow figure of $44.6 million for the quarter.

The company's performance across 2025 was more encouraging, with total sales of $2.74 billion, a 0.4% increase from 2024. Despite facing challenges such as unfavorable volume and manufacturing inefficiencies due to customer supply chain issues, Cooper Standard achieved an operating income of $86.6 million, notably up by 24% compared to the previous year. Achieving a net loss reduction to $4.2 million, the company reported a significant year-on-year improvement.

Strategic Insights and Future Outlook

Jeffrey Edwards, Chairman and CEO, emphasized the strong operational performance of Cooper Standard, stating that the company is on track to reach an adjusted EBITDA margin of at least 10% in 2026. This is a critical indicator of the company’s growth trajectory in light of several initiatives, including cost optimization and program launches aimed at enhancing customer value. The expectation is that 2026 will bring about further improvements driven by strategic advancements and the company’s proactive approach to overcoming industry challenges.

In addressing specific factors contributing to the fourth quarter, Edwards highlighted complications from a major customer program that led to production declines. Despite these headwinds, the firm’s strategy in leveraging lean initiatives helped offset some of the financial impacts.

Cash Flow and Liquidity Analysis

Cash flow analysis reveals that Cooper Standard maintained total liquidity of $352.6 million at the end of 2025, with access to undrawn revolving credit facilities providing additional financial security. The inferred capacity for continued operations and strategic initiative execution indicates a robust liquidity position moving into 2026. The firm’s cash on hand stood at $191.7 million, enriching its capability to service debt and support operational demands in the forthcoming year.

Winning New Business in Electric Vehicle Sector

As Cooper Standard seeks new avenues for growth, the company has effectively utilized its engineering prowess to secure new business awards. During 2025, the company garnered $297.9 million in anticipated annual sales from new business awards, with a significant focus on electric and hybrid vehicle programs. Edwards noted that 74% of these awards are related to battery electric and hybrid initiatives, indicating an alignment with prevailing trends in the automotive industry toward more sustainable mobility solutions.

Conclusion

The results from Cooper Standard embody a resilient response to the dynamics of the automotive supply chain landscape, strengthening its fiscal foundation as it navigates forward. With critical initiatives in place and a foresight for expansion, the outlook for 2026 is optimistic, positioning Cooper Standard not just to grow but to thrive amidst an evolving automotive sector. As the company continues to push through inefficiencies and optimize operations, stakeholders can expect a firm on the upswing, prepared for the challenges and opportunities that lie ahead.