Cooper-Standard (CPS) Q1 2025 earnings summary

Executive summary

• Achieved best-ever operational and customer service performance, with 99% of product quality and 97% of new program launch scorecards rated green, and recognized for quality, service, and safety.

• Net income of $1.6 million for Q1 2025, reversing a $31.7 million loss in Q1 2024, driven by operational efficiencies and cost savings initiatives.

• Secured $55 million in net new business awards, mainly from hybrid and battery electric vehicle platforms.

• Recognized for sustainability leadership by EcoVadis and USA Today, with ongoing employee engagement in environmental initiatives and new carbon-neutral goals.

• Achieved significant margin improvement and robust operating performance, with gross profit up 25.2% and operating income up 539.2% year-over-year.

Financial highlights

• Q1 2025 sales were $667.1 million, down 1.4% year-over-year due to unfavorable foreign exchange, partially offset by favorable volume and mix.

• Adjusted EBITDA doubled to $58.7 million (8.8% margin) from $29.3 million (4.3% margin) year-over-year, driven by lean initiatives, restructuring savings, and royalty payments.

• Net income was $1.6 million, compared to a net loss of $31.7 million in Q1 2024; adjusted net income was $3.5 million, or $0.19 per diluted share.

• Capital expenditures were $17.5 million (2.6% of sales), in line with prior year.

• Ended Q1 with $140.4 million in cash and $300.1 million in total liquidity.

Outlook and guidance

• Guidance for 2025 adjusted EBITDA remains at $200–$235 million, with confidence in margin expansion and leverage reduction.

• Expects further margin expansion in 2025, despite market uncertainty from trade policy and potential tariffs.

• Management expects global light vehicle production to decline by 2% in 2025, with modest growth forecast for 2026 and 2027.

• Liquidity is expected to remain sufficient, supported by cash on hand, operating cash flows, and available credit facilities.

• No withdrawal of guidance; will reassess after Q2 as more clarity on tariffs and production volumes emerges.