Cooper-Standard (CPS) J.P. Morgan Automotive Conference summary

Financial performance and inflation impact

• Q2 results were impacted by oil price-driven inflation, with an $18 million EBITDA hit from commodities and tariffs.

• Indexed contracts allow recovery of inflation costs, with most recovery expected in Q3 and Q4, and some possibly spilling into Q1 next year.

• Top line performance remains stable across regions, and guidance implies margin recovery in the second half of the year.

• Margins have expanded annually, with projections to reach 15% by 2030 and significant ROIC improvement by 2028.

• Revenue is projected to grow organically by $1 billion from 2025 to 2030, reaching $3.8 billion.

Commodity and cost management

• Oil-based inflation accounted for 70% of Q2 commodity pressures, with metals like stainless steel and aluminum also contributing.

• Indexed contracts help recover most commodity inflation, though some costs like transportation and utilities are less directly recoverable.

• Cost-saving initiatives and lean manufacturing help offset normal inflationary pressures.

Customer and geographic diversification

• Revenue from North American manufacturers has decreased from 75% to 50% over the past decade, with China now the fastest-growing region.

• 20% of new business bookings are tied to Chinese manufacturers, with significant growth in both sealing and fluid handling segments.

• The company is part of Chinese OEMs' global expansion, supplying both domestic and export platforms.

• Over 80% of 2029 revenue is already booked, supporting a solid long-term outlook.