Cooper-Standard (CPS) Q4 2024 earnings summary

Executive summary

• Achieved record operational performance in 2024, with significant margin expansion, world-class product quality, and a record-low safety incident rate of 0.30 per 200,000 hours worked.

• Recognized for excellence and innovation, winning multiple industry awards and securing $181.4 million in new business awards, including $105.8 million from EV platforms.

• Delivered $76 million in cost savings from efficiency improvements and lean initiatives, and $24 million in annual savings from restructuring actions.

• Operating income for 2024 was $69.8 million, up 51.7%, and net loss narrowed to $78.7 million, a $123.2 million improvement.

• All four major regions were EBITDA positive in Q4 2024.

Financial highlights

• Full-year 2024 sales were $2.73 billion, down 3% from 2023; Q4 sales were $660.8 million, down 1.9% year-over-year.

• Adjusted EBITDA for 2024 was $180.7 million (6.6% margin), up from $167.1 million (5.9%) in 2023; Q4 Adjusted EBITDA was $54.3 million (8.2% margin).

• Q4 GAAP net income was $40.2 million, reversing a loss of $55.2 million in Q4 2023; full-year GAAP net loss was $78.7 million, improved from $202 million in 2023.

• Adjusted net loss for 2024 was $56.7 million, improved from $82.3 million in 2023; adjusted EPS was $(3.23) vs. $(4.74) prior year.

• Free cash flow for 2024 was $25.9 million; year-end liquidity was $339.2 million, including $170 million cash on hand.

Outlook and guidance

• 2025 sales guidance: $2.7–$2.8 billion; adjusted EBITDA expected between $200 million and $235 million.

• EBITDA margin expected to reach double digits by Q4 2025, with positive free cash flow and continued margin expansion despite flat or lower sales.

• Capital expenditures projected at $45–$55 million; cash restructuring costs at $20–$25 million.

• Targeting a net leverage ratio of two times or lower by 2027, based on conservative volume assumptions.

• Net cash interest expected at $105–$115 million; net cash taxes at $30–$35 million.