Cooper-Standard (CPS) Status Update summary

Margin expansion and operational improvements

• Achieved significant margin expansion by aggressively reducing fixed costs and establishing strict variable contribution margin (VCM) hurdle rates for new business.

• Focused on sustainable cost control and efficiency improvements across all regions and plants.

• Material cost management and supplier collaboration are ongoing, with positive trends in material cost as a percent of sales.

• Margin expansion is driven by both cost reductions and disciplined pricing strategies.

Business structure and leadership

• Reorganized into three focused business units: sealing, fluid, and industrial/specialty, each with dedicated leadership and resources.

• Empowered business unit presidents to drive performance and accountability, supporting double-digit EBITDA and return on invested capital targets.

• Structure enables sustained performance and prevents regression, with strong plant manager leadership.

Financial outlook and guidance

• Guidance for 2025 anticipates double-digit EBITDA and return on invested capital, even with flat revenue and lower North American vehicle production.

• Base case scenario projects $5–$6 EPS in 2–3 years on margin expansion alone, with significant upside if production volumes normalize.

• Additional volume recovery could add $4–$5 EPS, potentially reaching $9–$10 per share at peak cycle production.

• Current guidance does not yet factor in upside from hybrid and EV content growth.