Cooper-Standard (CPS) Q3 2024 earnings summary

Executive summary

• Achieved best-ever safety performance with a total incident rate of 0.20, 29 plants with zero incidents YTD, and continued recognition for sustainability leadership, including EcoVadis silver medal and Nissan recognition.

• Secured $44 million in net new business awards, with significant wins in ICE, hybrid, and EV programs, and maintained world-class quality, service, and safety metrics.

• Achieved $24.5 million in Q3 cost savings from lean operations and cost initiatives, with $64 million YTD and a target of $40–$45 million annualized savings.

• Recognized for innovation, with products named as Automotive News PACE Pilot 2025 finalists.

• Continued operational excellence allowed maintenance of full-year profit and cash flow outlook despite weaker market conditions.

Financial highlights

• Q3 2024 sales were $685.4 million, down 6.9% year-over-year, mainly due to non-recurring commercial settlements, lower volumes, divestitures, and FX headwinds.

• Adjusted EBITDA was $46.1 million (6.7% margin), down from $79.1 million (10.7% margin) in Q3 2023.

• Reported net loss of $11.1 million in Q3 2024 versus net income of $11.4 million in Q3 2023; adjusted net loss was $12 million.

• Free cash flow for Q3 2024 was $16.9 million, up from $4.0 million in Q3 2023; cash and cash equivalents at quarter-end were $107.7 million.

• Gross margin for Q3 2024 was 11.1%, down from 14.5% in Q3 2023.

Outlook and guidance

• Full-year 2024 sales guidance updated to $2.70–$2.75 billion, down from initial $2.8–$2.9 billion.

• Adjusted EBITDA guidance raised to $180–$195 million, with margin at midpoints projected to exceed initial guidance.

• Capital expenditures expected at $45–$50 million for 2024, with similar or lower levels expected in 2025.

• Confident in achieving double-digit ROIC in both product segments by end of 2025.

• Lean initiatives and restructuring expected to improve margins and cash flow into 2025.