23:31:56 EST Thu 12 Feb 2026
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Cooper Standard Reports Strong Fourth Quarter Cash Flow Despite Industry Disruption; Continued Margin Expansion and Positive Cash Flow Highlight Full Year 2025 Results

2026-02-12 16:30 ET - News Release

Cooper Standard Reports Strong Fourth Quarter Cash Flow Despite Industry Disruption; Continued Margin Expansion and Positive Cash Flow Highlight Full Year 2025 Results

PR Newswire

NORTHVILLE, Mich., Feb. 12, 2026 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the fourth quarter and full year 2025.

Fourth Quarter 2025 Summary

  • Sales totaled $672.4 million, an increase of 1.8% vs. the fourth quarter of 2024
  • Operating income totaled $0.6 million, a decrease of $31.1 million vs. the fourth quarter of 2024
  • Net income of $3.3 million, or $0.18 per diluted share, reflected a decrease of $36.9 million vs. the fourth quarter of 2024
  • Adjusted EBITDA totaled $34.9 million, or 5.2% of sales
  • Net cash provided by operating activities of $56.2 million and free cash flow of $44.6 million

Full Year 2025 Summary

  • Sales totaled $2.74 billion, an increase of 0.4% vs. 2024
  • Operating income totaled $86.6 million, an increase of 24.0% vs. 2024
  • Net loss of $4.2 million, or $(0.23) per diluted share, reflected an improvement of $74.6 million vs. 2024
  • Adjusted EBITDA of $209.7 million, or 7.6% of sales, increased by $29.0 million vs. 2024
  • Net cash provided by operating activities of $64.4 million and free cash flow of $16.3 million

"Our team's strong operating performance continues to drive margin expansion and improved cash flow as planned," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "Our full year 2025 results exceeded our original plans and expectations for both adjusted EBITDA and cash flow despite significant production declines on a key customer program that negatively impacted the fourth quarter. More importantly, we anticipate further improvements in 2026 with our adjusted EBITDA margin expected to reach or exceed 10 percent of sales for the full year as we continue to deliver value for our customers, launch new programs and optimize our costs."

Consolidated Results

                                                       Quarter Ended December 31,                           Year Ended December 31,


                                                   2025                        2024                        2025                 2024


                                            (Unaudited)                (Unaudited)                (Unaudited)


                                                            (dollar amounts in millions except per share amounts)



 Sales                                          $672.4                      $660.8                    $2,740.9             $2,730.9



 Net income (loss)                                $3.3                       $40.2                      $(4.2)             $(78.7)



 Adjusted net loss                             $(31.0)                     $(2.9)                    $(30.9)             $(56.7)



 Net income (loss) per diluted share             $0.18                       $2.24                     $(0.23)             $(4.48)



 Adjusted net loss per diluted share           $(1.73)                    $(0.16)                    $(1.73)             $(3.23)



 Adjusted EBITDA                                 $34.9                       $54.3                      $209.7               $180.7



 Net cash provided by operating activities       $56.2                       $74.7                       $64.4                $76.4



 Free cash flow                                  $44.6                       $63.2                       $16.3                $25.9

The year-over-year increase in fourth quarter sales was primarily attributable to favorable foreign exchange, partially offset by unfavorable volume and mix.

The year-over-year change in fourth quarter net income was primarily due to a year-end true-up of compensation related accruals, higher restructuring expense, manufacturing inefficiencies stemming from a customer supply chain and production disruption, and higher wages and general inflation. These negative factors were partially offset by purchasing lean initiatives and favorable volume and mix.

The year-over-year change in fourth quarter adjusted EBITDA was primarily due to a year-end true-up of compensation related accruals, manufacturing inefficiencies stemming from a customer supply chain and production disruption, and higher wages and general inflation. These negative factors were partially offset by purchasing lean initiatives and favorable volume and mix.

For the full year 2025, the increase in sales was primarily due to favorable foreign exchange, partially offset by unfavorable volume and mix, and price adjustments. The year-over-year improvement in full year net loss was primarily driven by savings generated from lean manufacturing and purchasing initiatives, restructuring savings, the non-recurrence of pension settlement expense, and favorable foreign exchange. These positive factors were partially offset by higher wages and general inflation, unfavorable volume and mix, including price adjustments, and higher selling, administration and engineering (SGA&E) expense. The year-over-year improvement in full year adjusted EBITDA was primarily driven by savings generated from lean manufacturing and purchasing initiatives, restructuring savings, and favorable foreign exchange. These positive factors were partially offset by higher wages and general inflation, unfavorable volume and mix, including price adjustments, and higher SGA&E expense.

Cash Flow and Liquidity

Cash provided by operating activities in the fourth quarter of 2025 was $56.2 million. Free cash flow (defined as net cash provided by operating activities minus capital expenditures) in the fourth quarter of 2025 was $44.6 million, a decrease of $18.7 million compared to the fourth quarter of 2024. The change was primarily driven by lower cash earnings in the period.

For the full year 2025, cash provided by operating activities was $64.4 million and free cash flow was $16.3 million. This compared to cash provided by operating activities of $76.4 million and free cash flow of $25.9 million in 2024.

As of December 31, 2025, Cooper Standard had cash and cash equivalents totaling $191.7 million. Total liquidity, including availability on the Company's undrawn revolving credit facility, was $352.6 million at year end. 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, execute planned strategic initiatives and service cash interest requirements on our debt for the foreseeable future. These financial resources include current cash on hand, continuing access to flexible credit facilities, and expected future positive cash generation.

Adjusted net income (loss), adjusted EBITDA, adjusted net income (loss) per diluted share and free cash flow 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.

Automotive New Business Awards

The Company continues to leverage its world-class engineering and manufacturing capabilities, its innovation technologies, and its reputation for quality and service to win new business awards with its customers and capitalize on positive trends associated with electric and hybrid vehicles. For the full year 2025, the Company received total net new business awards representing $297.9 million in incremental anticipated future annualized sales including $69.5 million of new awards received in the fourth quarter. For the year, 74 percent of the total net new business awards were related to battery electric and full-hybrid vehicle programs and 51 percent of the total net new business awards were with Chinese OEM customers.

Segment Results of Operations

Sales

                                         Three Months Ended December 31,                                          Variance Due To:


                                  2025     2024                          Change                           Volume /
                                                                                                           Mix*                    Foreign Exchange


                                                          
          
      (dollar amounts in thousands)



 Sales to external customers



 Sealing Systems             $357,831 $350,444                          $7,387                            $(4,524)                            $11,911



 Fluid Handling Systems       297,116  294,841                           2,275                               (734)                              3,009


 
 * Net of customer price adjustments, including recoveries.

Adjusted EBITDA

                                     Three Months Ended December 31,                                
          
 Variance Due To:


                             2025    2024                               Change                       Volume/                    Foreign Exchange                  Cost
                                                                                         Mix*                                                     (Increases)/
                                                                                                                                                  Decreases**


                                                                     
         
 (dollar amounts in thousands)



 Segment adjusted EBITDA



 Sealing Systems         $32,098 $40,214                             $(8,116)                        $2,565                               $1,538              $(12,219)



 Fluid Handling Systems   15,077  27,333                             (12,256)                         1,696                                  634               (14,586)


 
 * Net of customer price adjustments, including recoveries.



 
 ** Net of savings from restructuring initiatives.

Outlook

The Company believes it is well positioned to continue driving sustainable value through profitable growth and margin enhancement. While supply chain disruptions, changing trade and tariff policies, and affordability concerns have impacted production volumes in recent periods, the Company believes that the underlying demand for new light vehicle production in its key operating regions remains resilient, supported by the age of the existing fleet, increasing population, increasing numbers of newly licensed drivers, and declining vehicle inventories. The Company remains confident that the continuing successful execution of its plans and strategies, including expanding relationships with new customers and the continued launch of new, innovative programs with enhanced contribution margins, will drive increasing profit margins and returns on invested capital over time.

Following strong actual results in 2025, and considering recent industry forecasts for global light vehicle production, the Company expects to deliver further profitable growth and margin enhancement in 2026. Reflecting this expectation, the Company is issuing initial guidance for 2026 as follows:

                                                          2025 Actual Results                 Initial 2026
                                                                                               Guidance(1)



 Sales                                               
                 $2.74 billion 
   $2.7 - $2.9 billion



 Adjusted EBITDA(2)                                    
              $209.7 million 
   $260 - $300 million



 Capital Expenditures                                 
                $48.2 million   
   $55 - $65 million



 Cash Restructuring                                   
                $26.4 million   
   $25 - $30 million



 Net Cash Interest                                     
              $109.6 million 
   $105 - $115 million



 Net Cash Taxes                                       
                 $9.0 million   
   $30 - $35 million



   Key Light Vehicle Productions Assumptions (Units)



   North America                                                        15.3 million            15.0 million



   Europe                                                               17.0 million            16.9 million



   Greater China                                                        33.1 million            32.7 million



   South America                                                         3.0 million             3.2 million




 
 (1) Guidance is representative of management's estimates and expectations as of the date it is published. Current guidance as presented in this press release considers January 2026 S&P Global (IHS Markit) production forecasts for relevant light vehicle platforms and models, customers' planned production schedules and other internal assumptions.



 
 (2) Adjusted EBITDA is a non-GAAP financial measure. The Company has not provided a reconciliation of projected adjusted EBITDA to projected net income (loss) because full-year net income (loss) will include special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. Due to this uncertainty, the Company cannot reconcile projected adjusted EBITDA to U.S. GAAP net income (loss) without unreasonable effort.

Conference Call Details

Cooper Standard management will host a conference call and webcast on February 13, 2026 at 9 a.m. ET to discuss its fourth quarter and full year 2025 results, provide a general business update and respond to investor questions. Investors and other interested parties may listen to the call by accessing the online, real-time webcast at https://ir.cooperstandard.com/events.

To participate by phone, callers in the United States and Canada can dial toll-free at 800-836-8184 (international callers dial 646-357-8785) and ask to be connected to the Cooper Standard conference call. Representatives of the investment community will have the opportunity to ask questions during Q&A. Participants should dial-in at least five minutes prior to the start of the call.

A replay of the webcast will be available on the investors' portion of the Cooper Standard website (https://ir.cooperstandard.com) shortly after the live event.

About Cooper Standard

Cooper Standard, headquartered in Northville, Mich., with locations in 20 countries, is a leading global supplier of sealing and fluid handling systems and components. Utilizing our materials science and manufacturing expertise, we create innovative and sustainable engineered solutions for diverse transportation and industrial markets. Cooper Standard's approximately 22,000 team members (including contingent workers) are at the heart of our success, continuously improving our business and surrounding communities. Learn more at www.cooperstandard.com or follow us on LinkedIn, X, Facebook, Instagram or YouTube.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "outlook," "guidance," "forecast," or future or conditional verbs, such as "will," "should," "could," "would," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs and projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. Among other items, such factors may include: volatility or decline of the Company's stock price, or absence of stock price appreciation; impacts and disruptions related to the wars in Ukraine and the Middle East; the effects of the current U.S. government shutdown and its impact on our customers; our ability to achieve commercial recoveries and to offset the adverse impact of higher commodity and other costs through pricing and other negotiations with our customers; work stoppages or other labor disruptions with our employees or our customers' employees; prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; escalating pricing pressures; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruptions in our supply base or our customers' supply base; competitive threats and commercial risks associated with our diversification strategy; possible variability of our working capital requirements; risks associated with our international operations, including changes in laws, regulations, and policies governing the terms of foreign trade such as increased trade restrictions and tariffs; foreign currency exchange rate fluctuations; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness and rates of interest; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; significant costs related to manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers' needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal and regulatory proceedings, claims or investigations against us; the potential impact of any future public health events on our financial condition and results of operations; the ability of our intellectual property to withstand legal challenges; cyber-attacks, data privacy concerns, other disruptions in, or the inability to implement upgrades to, our information technology systems; the possible volatility of our annual effective tax rate; the possibility of a failure to maintain effective controls and procedures; the possibility of future impairment charges to our goodwill and long-lived assets; our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce; our ability to procure insurance at reasonable rates; and our dependence on our subsidiaries for cash to satisfy our obligations; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

You should not place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law.

This press release also contains estimates and other information that is based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.


   Contact for Analysts:                                       Contact for Media:



   Roger Hendriksen                                          
 Chris Andrews



   Cooper Standard                                           
 Cooper Standard



   (248) 596-6465                                            
 (248) 596-6217


                          roger.hendriksen@cooperstandard.com                      candrews@cooperstandard.com

---

Financial statements and related notes follow:

                                                                   
      
            COOPER-STANDARD HOLDINGS INC.


                                                                 
    
            CONSOLIDATED STATEMENTS OF OPERATIONS


                                                   
          
      (Dollar amounts in thousands except share and per share amounts)




                                                                                                                                                Quarter Ended December 31,               Year Ended December 31,


                                                                                                                                           2025                         2024          2025                 2024


                                                                                                                                    (Unaudited)                 (Unaudited)  (Unaudited)



 Sales                                                                                                                                $672,371                     $660,753    $2,740,915           $2,730,893



 Cost of products sold                                                                                                                 602,217                      578,733     2,413,391            2,427,978



 Gross profit                                                                                                                           70,154                       82,020       327,524              302,915



 Selling, administration & engineering expenses                                                                                         56,569                       50,081       214,366              207,553



 Gain on sale of businesses, net                                                                                                          (98)                     (1,971)         (98)             (1,971)



 Gain on sale of buildings and land, net                                                                                                     -                     (3,317)                          (3,317)



 Amortization of intangibles                                                                                                             1,236                        1,618         6,304                6,512



 Restructuring charges                                                                                                                  11,483                        3,171        19,981               23,601



 Impairment charges                                                                                                                        369                          713           369                  713



 Operating income                                                                                                                          595                       31,725        86,602               69,824



 Interest expense, net of interest income                                                                                             (28,731)                    (28,598)    (114,676)           (115,639)



 Equity in earnings of affiliates                                                                                                          886                        1,998         5,620                6,828



 Pension settlement and curtailment (charges) credit                                                                                     (134)                          18         (134)            (44,553)



 Other expense, net                                                                                                                    (3,291)                     (3,309)        (931)            (17,938)



 (Loss) income before income taxes                                                                                                    (30,675)                       1,834      (23,519)           (101,478)



 Income tax benefit                                                                                                                   (33,853)                    (38,420)     (19,205)            (23,348)



 Net income (loss)                                                                                                                       3,178                       40,254       (4,314)            (78,130)



 Net loss (income) attributable to noncontrolling interests                                                                                150                         (40)          149                (616)



 Net income (loss) attributable to Cooper-Standard Holdings Inc.                                                                        $3,328                      $40,214      $(4,165)           $(78,746)





 Weighted average shares outstanding:



  Basic                                                                                                                             17,926,252                   17,616,787    17,862,433           17,564,012



  Diluted                                                                                                                           18,735,303                   17,992,409    17,862,433           17,564,012





 Net income (loss) per share:



  Basic                                                                                                                                  $0.19                        $2.28       $(0.23)             $(4.48)



  Diluted                                                                                                                                $0.18                        $2.24       $(0.23)             $(4.48)

                                                              
          
            COOPER-STANDARD HOLDINGS INC.


                                                               
          
            CONSOLIDATED BALANCE SHEETS


                                                   
          
            (Dollar amounts in thousands except share amounts)




                                                                                                                              
    
        December 31,


                                                                                                                                       2025                  2024


                                                                                                                                (Unaudited)



   
            
              Assets

---


   Current assets:



   Cash and cash equivalents                                                                                                      $191,699              $170,035



   Accounts receivable, net                                                                                                        334,267               310,738



   Tooling receivable, net                                                                                                          72,316                69,204



   Inventories                                                                                                                     154,189               142,401



   Prepaid expenses                                                                                                                 23,940                25,833



   Income tax receivable and refundable credits                                                                                     11,499                11,576



   Value added tax receivable                                                                                                       47,329                45,120



   Other current assets                                                                                                             45,861                30,349



   Total current assets                                                                                                            881,100               805,256



   Property, plant and equipment, net                                                                                              523,508               539,201



   Operating lease right-of-use assets, net                                                                                         83,474                87,292



   Goodwill                                                                                                                        140,696               140,443



   Intangible assets, net                                                                                                           28,978                33,805



   Deferred tax assets                                                                                                             103,112                63,240



   Other assets                                                                                                                     72,306                63,828



   Total assets                                                                                                                 $1,833,174            $1,733,065





   
            
              Liabilities and Equity

---


   Current liabilities:



   Debt payable within one year                                                                                                    $86,121               $42,428



   Accounts payable                                                                                                                337,319               295,178



   Payroll liabilities                                                                                                             122,395               103,701



   Accrued liabilities                                                                                                             114,150               116,617



   Current operating lease liabilities                                                                                              18,412                18,859



   Total current liabilities                                                                                                       678,397               576,783



   Long-term debt                                                                                                                1,018,483             1,057,839



   Pension benefits                                                                                                                 91,336                89,253



   Postretirement benefits other than pensions                                                                                      26,461                26,336



   Long-term operating lease liabilities                                                                                            69,806                71,907



   Deferred tax liabilities                                                                                                          3,475                 3,801



   Other liabilities                                                                                                                36,793                40,516



   Total liabilities                                                                                                             1,924,751             1,866,435



   Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued                                                     -


   and outstanding



   Equity:



   Common stock, $0.001 par value, 190,000,000 shares authorized; 19,702,818                                                            17                    17


   shares issued and 17,637,009 outstanding as of December 31, 2025, and


   19,392,340 shares issued and 17,326,531 outstanding as of December 31, 2024



   Additional paid-in capital                                                                                                      524,312               518,208



   Retained deficit                                                                                                              (474,727)            (470,562)



   Accumulated other comprehensive loss                                                                                          (133,090)            (173,432)



   Total Cooper-Standard Holdings Inc. equity                                                                                     (83,488)            (125,769)



   Noncontrolling interests                                                                                                        (8,089)              (7,601)



   Total equity                                                                                                                   (91,577)            (133,370)



   Total liabilities and equity                                                                                                 $1,833,174            $1,733,065

                                                                 
          
            COOPER-STANDARD HOLDINGS INC.


                                                             
          
            CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                 
          
            (Dollar amounts in thousands)




                                                                                                                                       Year Ended December 31,


                                                                                                                                  2025            2024               2023


                                                                                                                           (Unaudited)



 Operating activities:



 Net loss                                                                                                                    $(4,314)      $(78,130)        $(203,316)



 Adjustments to reconcile net loss to net cash provided by operating activities:



 Depreciation                                                                                                                  91,671          97,053            103,127



 Amortization of intangibles                                                                                                    6,304           6,512              6,804



 Gain on sale of businesses, net                                                                                                 (98)        (1,971)             (586)



 Gain on sale of buildings and land, net                                                                                            -        (3,317)



 Impairment charges                                                                                                               369             713              4,768



 Pension settlement and curtailment charges                                                                                       134          44,553             16,035



 Share-based compensation expense                                                                                              15,248           9,161              7,718



 Equity in earnings of affiliates, net of dividends related to earnings                                                         (746)        (3,246)             (982)



 Loss on refinancing and extinguishment of debt                                                                                     -                           81,885



 Payment-in-kind interest                                                                                                           -         12,367             58,808



 Deferred income taxes                                                                                                       (35,120)       (45,466)           (5,813)



 Other                                                                                                                          5,027           5,291              4,838



 Changes in operating assets and liabilities:



 Accounts and tooling receivable                                                                                             (12,180)         67,761           (12,333)



 Inventories                                                                                                                  (4,362)        (3,125)             6,412



 Prepaid expenses                                                                                                               2,813           1,119              2,924



 Income tax receivable and refundable credits                                                                                     622           (836)             2,603



 Accounts payable                                                                                                              21,616        (18,440)             6,743



 Payroll and accrued liabilities                                                                                                1,266        (19,968)            16,924



 Other                                                                                                                       (23,808)          6,338             20,718



 Net cash provided by operating activities                                                                                     64,442          76,369            117,277



 Investing activities:



 Capital expenditures                                                                                                        (48,192)       (50,498)          (80,743)



 Proceeds from sale of businesses, net of cash divested                                                                         2,558             763             15,351



 Proceeds from sale of fixed assets                                                                                                 -          4,328



 Other                                                                                                                              -            287                424



 Net cash used in investing activities                                                                                       (45,634)       (45,120)          (64,968)



 Financing activities:



 Proceeds from issuance of long-term debt, net of debt issuance costs                                                               -                          924,299



 Repayment and refinancing of long-term debt                                                                                        -                        (927,046)



 Principal payments on long-term debt                                                                                         (2,262)        (2,464)           (2,127)



 Increase (decrease) in short-term debt, net                                                                                       22         (7,288)           (1,234)



 Debt issuance costs and other fees                                                                                                 -        (1,936)          (74,376)



 Taxes withheld and paid on employees' share-based payment awards                                                             (1,728)          (612)             (214)



 Contribution from noncontrolling interests and other                                                                               -             38              (439)



 Proceeds from other financing activities                                                                                           -          2,617



 Net cash used in financing activities                                                                                        (3,968)        (9,645)          (81,137)



 Effects of exchange rate changes on cash, cash equivalents and restricted cash                                                 6,345         (5,968)             (918)



 Changes in cash, cash equivalents and restricted cash                                                                         21,185          15,636           (29,746)



 Cash, cash equivalents and restricted cash at beginning of period                                                            178,697         163,061            192,807



 Cash, cash equivalents and restricted cash at end of period                                                                 $199,882        $178,697           $163,061





 Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:



 Cash and cash equivalents                                                                                                   $191,699        $170,035           $154,801



 Restricted cash included in other current assets                                                                               6,581           7,590              7,244



 Restricted cash included in other assets                                                                                       1,602           1,072              1,016



 Total cash, cash equivalents and restricted cash                                                                            $199,882        $178,697           $163,061



 Supplemental disclosure:



 Cash paid for interest                                                                                                      $113,869        $101,514            $78,699



 Cash paid for income taxes, net of refunds                                                                                     9,047          19,085             10,301

Non-GAAP Financial Measures

EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating performance not indicative of the Company's core financial activities. Net new business is a measure not recognized under U.S. GAAP which is a representation of potential incremental future revenue but which may not fully reflect all external impacts to future revenue. Management considers EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business to be key indicators of the Company's operating performance and believes that these and similar measures are widely used by investors, securities analysts and other interested parties in evaluating the Company's performance. In addition, similar measures are utilized in the calculation of the financial covenants and ratios contained in the Company's financing arrangements and management uses these measures for developing internal budgets and forecasting purposes. EBITDA is defined as net income (loss) adjusted to reflect income tax expense (benefit), interest expense net of interest income, depreciation and amortization, and adjusted EBITDA is defined as EBITDA further adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted net income (loss) is defined as net income (loss) adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of sales. Adjusted basic and diluted earnings (loss) per share is defined as adjusted net income (loss) divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Free cash flow is defined as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company's ability to service and repay its debt. Net new business reflects anticipated sales from formally awarded programs, less lost business, discontinued programs and replacement programs and is based on S&P Global (IHS Markit) forecast production volumes. The calculation of "net new business" does not reflect customer price reductions on existing programs and may be impacted by various assumptions embedded in the respective calculation, including actual vehicle production levels on new programs, foreign exchange rates and the timing of major program launches.

When analyzing the Company's operating performance, investors should use EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business as supplements to, and not as alternatives for, net income (loss), operating income, or any other performance measure derived in accordance with U.S. GAAP, and not as an alternative to cash flow from operating activities as a measure of the Company's liquidity. EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results of operations as reported under U.S. GAAP. Other companies may report EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business differently and therefore the Company's results may not be comparable to other similarly titled measures of other companies. In addition, in evaluating adjusted EBITDA and adjusted net income (loss), it should be noted that in the future the Company may incur expenses similar to or in excess of the adjustments in the below presentation. This presentation of adjusted EBITDA and adjusted net income (loss) should not be construed as an inference that the Company's future results will be unaffected by special items. Reconciliations of EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and free cash flow follow.

Reconciliation of Non-GAAP Financial Measures

                                                           
          
            EBITDA and Adjusted EBITDA
                                                                      (Dollar amounts in thousands)





 The following table provides a reconciliation of EBITDA and adjusted EBITDA from net income (loss) (unaudited):




                                                                                                                           Quarter Ended December 31,                    Year Ended December 31,


                                                                                                                      2025        2024                  2025        2024



 Net income (loss) attributable to Cooper-Standard Holdings Inc.                                                   $3,328     $40,214              $(4,165)  $(78,746)



 Income tax benefit                                                                                              (33,853)   (38,420)             (19,205)   (23,348)



 Interest expense, net of interest income                                                                          28,731      28,598               114,676     115,639



 Depreciation and amortization                                                                                     24,743      25,313                97,975     103,565



 EBITDA                                                                                                           $22,949     $55,705              $189,281    $117,110



 Restructuring charges                                                                                             11,483       3,171                19,981      23,601



 Impairment charges (1)                                                                                               369         713                   369         713



 Gain on sale of businesses, net (2)                                                                                    -    (1,971)                 (98)    (1,971)



 Gain on sale of buildings and land, net (3)                                                                            -    (3,317)                         (3,317)



 Pension settlement and curtailment charges (credit) (4)                                                              134        (18)                  134      44,553



      Adjusted EBITDA                                                                                             $34,935     $54,283              $209,667    $180,689





 Sales                                                                                                           $672,371    $660,753            $2,740,915  $2,730,893



 Net income (loss) margin                                                                                           0.5 %      6.1 %              (0.2) %    (2.9) %



 Adjusted EBITDA margin                                                                                             5.2 %      8.2 %                7.6 %      6.6 %




 
 (1) 
 Non-cash impairment charges in 2025 and 2024 related to idle assets in certain locations in Asia Pacific.



 
 (2)   Gain on sale of businesses related to divestiture in 2024. Gain recognized in 2025 related to final purchase price adjustments
            associated with the divestiture in 2024.



 
 (3) 
 Gain on sale of building and land related to a Canadian facility.



 
 (4)   Non-cash net pension settlement and curtailment charges (credit) and administrative fees incurred related to certain of our U.S.
            and non-U.S. pension plans.

                                                      
          
            Adjusted Net Loss and Adjusted Net Loss Per Share
                                                    
            (Dollar amounts in thousands except share and per share amounts)





 The following table provides a reconciliation of net income (loss) to adjusted net loss and the respective net income (loss) per share amounts (unaudited):




                                                                                                                                                           Quarter Ended December 31,                     Year Ended December 31,


                                                                                                                                              2025                    2024                   2025         2024



 Net income (loss) attributable to Cooper-Standard Holdings Inc.                                                                           $3,328                 $40,214               $(4,165)   $(78,746)



 Restructuring charges                                                                                                                     11,483                   3,171                 19,981       23,601



 Impairment charges (1)                                                                                                                       369                     713                    369          713



 Gain on sale of businesses, net (2)                                                                                                            -                (1,971)                  (98)     (1,971)



 Gain on sale of buildings and land, net (3)                                                                                                    -                (3,317)                           (3,317)



 Pension settlement and curtailment charges (credit) (4)                                                                                      134                    (18)                   134       44,553



 Deferred tax valuation allowance reversal (5)                                                                                           (45,435)               (41,507)              (45,435)    (41,507)



 Tax impact of adjusting items (6)                                                                                                          (846)                  (137)               (1,659)        (69)



 Adjusted net loss                                                                                                                      $(30,967)               $(2,852)             $(30,873)   $(56,743)





 Weighted average shares outstanding:



 Basic                                                                                                                                 17,926,252              17,616,787             17,862,433   17,564,012



 Diluted                                                                                                                               18,735,303              17,992,409             17,862,433   17,564,012





 Net income (loss) per share:



 Basic                                                                                                                                      $0.19                   $2.28                $(0.23)     $(4.48)



 Diluted                                                                                                                                    $0.18                   $2.24                $(0.23)     $(4.48)





 Adjusted net loss per share:



 Basic                                                                                                                                    $(1.73)                $(0.16)               $(1.73)     $(3.23)



 Diluted                                                                                                                                  $(1.73)                $(0.16)               $(1.73)     $(3.23)




 
 (1) 
 Non-cash impairment charges in 2025 and 2024 related to idle assets in certain locations in Asia Pacific.



 
 (2) 
 Gain on sale of businesses related to divestiture in 2024. Gain recognized in 2025 related to final purchase price adjustments associated with the divestiture in 2024.



 
 (3) 
 Gain on sale of building and land related to a Canadian facility.



 
 (4) 
 Non-cash net pension settlement and curtailment charges (credit) and administrative fees incurred related to certain of our U.S. and non-U.S. pension plans.



 
 (5)   The deferred tax valuation allowance reversal in 2025 related to net deferred tax assets in France, Spain, and Korea. The deferred tax valuation allowance reversal in 2024 related to net deferred tax
            assets in Brazil, Poland, and China.



 
 (6)   Represents the elimination of the income tax impact of the above adjustments by calculating the income tax impact of these adjusting items using the appropriate tax rate for the jurisdiction where the
            charges were incurred and other discrete tax expense.

                                           
          
            Free Cash Flow
                                         
            (Dollar amounts in thousands)





 The following table defines free cash flow (unaudited):




                                                                                            Quarter Ended December 31,                     Year Ended December 31,


                                                                                       2025         2024                  2025        2024



 Net cash provided by operating activities                                         $56,245      $74,722               $64,442     $76,369



 Capital expenditures                                                             (11,686)    (11,484)             (48,192)   (50,498)



 Free cash flow                                                                    $44,559      $63,238               $16,250     $25,871

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SOURCE Cooper Standard

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