CPS

Interested in Cooper-Standard Holdings Inc.? Here are five stocks we like better. Second-quarter sales increased 2.2% to $721.3 million, but adjusted EBITDA fell to $53.9 million as material inflation, tariffs, wages and other costs outweighed operational savings. The company posted an adjusted net loss of $2.3 million, compared with adjusted net income of $1 million a year earlier. Management expects most incremental material and tariff costs to be recovered in the second half through pricing agreements and negotiations, while maintaining its full-year sales and profitability outlook. Cooper-Standard also generated $16.3 million in free cash flow and ended June with nearly $300 million in liquidity. New business awards totaled $118 million in the quarter and $246 million for the first half, supporting the company’s goal of more than $400 million in 2026 awards. Management highlighted strong momentum in fluid handling, including nearly $40 million in annualized conquest business and growth opportunities tied to hybrid and electric vehicles. Cooper-Standard (NYSE:CPS) reported higher second-quarter sales but lower adjusted EBITDA as material inflation, tariffs and other cost pressures outweighed operational savings. Management said it expects commercial recoveries and continued cost actions to improve results in the second half while maintaining its full-year sales and profitability plan. Second-quarter sales rose 2.2% from a year earlier to $721.3 million. Adjusted EBITDA declined to $53.9 million from $62.8 million in the prior-year quarter. The company recorded a GAAP net loss of $18.8 million, compared with a $1.4 million loss a year earlier. After adjusting for restructuring expense net of tax, Cooper-Standard posted an adjusted net loss of $2.3 million, or $0.13 per share, versus adjusted net income of $1 million, or $0.06 per share, in the second quarter of 2025. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Executive Vice President and CFO Jon Banas said the year-over-year decline in adjusted EBITDA reflected higher costs for materials, duties and tariffs, wages, and general inflation. The company cited $10 million of higher material costs involving rubber, metals and resins; $8 million of wage and general-inflation costs; and $8 million of higher duties, tariffs and other costs. Those pressures more than offset $15 million in savings from lean initiatives in purchasing and manufacturing, along with a $2 million benefit from foreign exchange. Sales also benefited from roughly $10 million of favorable foreign exchange and approximately $5 million from favorable volume and mix, net of customer price adjustments and recoveries. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Banas said commodity inflation was largely tied to higher oil prices, which averaged about $30 per barrel above levels seen before the Middle East conflict began. He described much of the second-quarter commodity impact as a timing issue under the company’s commercial agreements. “We expect to recover most of these incremental input costs, as well as tariffs, in the second half of the year,” Banas said, citing index-based contracts, existing agreements and commercial negotiations. He said price increases had already taken effect in the third quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Chairman and CEO Jeff Edwards said customer pricing for purchase orders beginning July 1 reflected the increase in oil prices, while further negotiations continue around energy-related costs. He also pointed to supply-chain actions and cost-reduction programs as contributors to the expected second-half improvement. Cooper-Standard generated $16.3 million of free cash flow in the second quarter, a $39.7 million improvement from the same quarter last year. The company defined free cash flow as cash provided by operations less capital expenditures. Capital expenditures totaled $13.8 million, or 1.9% of sales, as the company increased spending on program launches and automation. Banas said the quarterly spending level was consistent with its expected full-year run rate of 2% to 3% of sales. As of June 30, Cooper-Standard had $126.6 million of cash and $167.6 million of unused availability under its asset-based lending facility, for total liquidity of nearly $300 million. Management said it expects positive free cash flow for the full year as material-cost recoveries take effect and operational efficiencies increase. The company said it received $118 million in net new business awards during the second quarter, bringing first-half awards to $246 million. Edwards said the company remains ahead of plan toward its goal of more than $400 million in 2026 net new awards. Management said much of the newly won business can be launched using available capacity with limited incremental capital investment. Edwards said the awards, coupled with higher variable contribution margins on newer programs, support the company’s longer-term targets for growth, margins and return on invested capital. Cooper-Standard also reported that 99% of customer scorecards for product quality and service were rated green during the quarter, while 97% of new-program-launch scorecards were green. Its total incident rate was 0.17 reportable incidents per 200,000 hours worked, and 44 plants had no reportable incidents during the first six months of the year. Edwards highlighted momentum in the company’s Fluid Handling Systems segment, where it has won nearly $40 million in annualized mid-production conquest business over the past 10 months. Those awards, which are effective this year, came from nearly 10 instances in which customers moved business from competitors, according to Edwards. He said Cooper-Standard aims to double its fluid-handling business within five to seven years. Management sees opportunities from hybrid powertrains in the U.S., continued electric-vehicle adoption in China, and a mix of hybrid and electric vehicles in Europe. During the question-and-answer session, Banas said approximately half of a cited $30 million-plus combined new-business opportunity related to hybrids and battery-electric vehicles was tied to each category. He said both vehicle types generally provide higher content per vehicle than traditional internal-combustion-engine programs, with hybrids offering an even greater content opportunity. Management maintained the midpoint of its full-year adjusted EBITDA guidance, while narrowing the upper and lower ends of the range to reflect improved midyear visibility. The company also made minor changes to other guidance items, including higher expected capital spending for unplanned business launches, higher restructuring expense tied to footprint optimization, and lower expected net interest expense following its refinancing. Edwards said Cooper-Standard has begun to see more normalized production on certain key platforms. However, he added that the company did not assume additional fourth-quarter production volume on the Ford F-150 in its forecast because it had not yet seen that increase in customer releases. Cooper-Standard Holding Inc is a global supplier of sealing, fuel and brake delivery, and fluid transfer systems for the automotive industry. The company designs and manufactures engineered rubber, plastic and metal products, including sealing systems for doors, windows and powertrain assemblies, fuel and brake hoses and lines, and fluid transfer components such as coolant, refrigerant and washer fluid systems. Founded in 1922 and headquartered in Novi, Michigan, Cooper-Standard operates manufacturing facilities and technical centers across North America, Europe, South America and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cooper-Standard Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

NORTHVILLE, Mich., Aug. 5, 2026 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the second quarter 2026 that demonstrate continued progress towards sustained financial improvements, long-term profitable growth and positive cash flows. Second Quarter 2026 Summary Sales of $721.3 million, an increase of 2.2% vs. the second quarter of 2025 Net loss of $18.8 million, or $(1.04) per diluted share Adjusted net loss of $2.3 million, or $(0.13) per diluted share Adjusted EBITDA of $53.9 million, or 7.5% of sales Net cash provided by operating activities of $30.1 million and free cash flow of $16.3 million Net New Business Awards totaled $118.4 million during the quarter "Our teams are continuing to operate at world-class levels, delivering consistent value for our customers." said Jeffrey Edwards, chairman and CEO, Cooper Standard. "While higher oil prices drove inflationary pressures on our costs in the second quarter as we had anticipated, we expect to recover most of those incremental costs in the second half of the year. With our continued operating excellence and expected cost recoveries, we believe we remain on track to achieve our sales and profitability targets for the full year." Consolidated Results Sales increased by 2.2% in the second quarter due primarily to favorable foreign exchange and favorable volume and mix. Net loss for the second quarter of 2026 was $18.8 million, including restructuring charges of $17.1 million. Net loss for the second quarter of 2025 was $1.4 million, including restructuring charges of $2.9 million. Excluding these special items and their related tax impact, adjusted net loss was $2.3 million in the second quarter of 2026 compared to adjusted net income of $1.0 million in the second quarter of 2025. The year-over-year change was driven primarily by higher material costs, general inflationary pressures, unfavorable volume and mix, and increased customs duties and tariffs. These cost increases were partially offset by continuing supply chain optimization and lean manufacturing savings. Adjusted EBITDA for the second quarter of 2026 was $53.9 million compared to $62.8 million in the second quarter of 2025. The year-over-year change was driven primarily by higher material costs, general inflationary pressures, unfavorable volume and mix, and increased customs duties and tariffs. These cost increases were partially offset by continuing supply chain optimization and lean manufacturing savings. Cash Flow and Liquidity Cash provided by operating activities in the second quarter of 2026 was $30.1 million. Free cash flow (defined as net cash provided by operating activities minus capital expenditures) in the second quarter of 2026 was $16.3 million, an increase of $39.7 million compared to the second quarter of 2025. As of June 30, 2026, Cooper Standard had cash and cash equivalents totaling $126.6 million. Total liquidity, including availability under the Company's amended senior asset-based revolving credit facility, was $294.2 million at the end of the second quarter of 2026. Based on current expectations for light vehicle production and customer demand for our products, the Company believes it has sufficient financial resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future. These financial resources include current cash on hand, continuing access to flexible credit facilities, and expected future positive cash generation. New Business Awards The Company continues to leverage its world-class engineering and manufacturing capabilities, its innovation programs and its reputation for quality and service to win new business awards with its OEM customers and capitalize on positive global trends associated with hybrid and battery electric vehicles. During the second quarter of 2026, the Company received net new business awards totaling $118.4 million in anticipated incremental future annualized sales, including $36.6 million in new awards associated with battery electric or full-hybrid platforms. For the first six months of the year, net new business awards totaled $246.3 million, including $68.3 million in new awards associated with battery electric or full-hybrid platforms. Segment Results of Operations Sales Adjusted EBITDA Additional detail on our quarterly segment variance analyses is available in our periodic filings with the Securities and Exchange Commission. Outlook The Company believes it is well positioned to continue driving sustainable value through profitable growth and margin enhancement as production volumes and commodity costs stabilize over time. Key value drivers include expanding relationships with new customers, the continued launch of new, innovative programs, enhanced index-based commercial agreements, and further actions to optimize our global manufacturing footprint. Following actual reported results in the first half of the year, the Company believes it remains on track to achieve full-year results for sales and adjusted EBITDA in line with its original 2026 business plan. In terms of adjusted EBITDA, this is reflected at the midpoint of guidance, which remains unchanged, while the upper and lower bounds of the range have been tightened to reflect improved mid-year visibility. Other elements of full-year guidance and light vehicle production volume assumptions have been adjusted as follows: Conference Call Details Cooper Standard management will host a conference call and webcast on August 6, 2026 at 9 a.m. ET to discuss its second quarter 2026 results, provide a general business update and respond to investor questions. Investors and other interested parties may listen to the call by accessing the online, real-time webcast at https://ir.cooperstandard.com/events. To participate by phone, callers in the United States and Canada can dial toll-free at 800-836-8184 (international callers dial 646-357-8785) and ask to be connected to the Cooper Standard conference call. Representatives of the investment community will have the opportunity to ask questions during Q&A. Participants should dial-in at least five minutes prior to the start of the call. A replay of the webcast will be available on the investors' portion of the Cooper Standard website (https://ir.cooperstandard.com) shortly after the live event. About Cooper Standard Cooper Standard, headquartered in Northville, Mich., with locations in 20 countries, is a leading global supplier of sealing and fluid handling systems and components. Utilizing our materials science and manufacturing expertise, we create innovative and sustainable engineered solutions for diverse transportation and industrial markets. Cooper Standard's approximately 22,000 team members (including contingent workers) are at the heart of our success, continuously improving our business and surrounding communities. Learn more at www.cooperstandard.com or follow us on LinkedIn, X, Facebook, Instagram or YouTube. Forward Looking Statements This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "outlook," "guidance," "forecast," or future or conditional verbs, such as "will," "should," "could," "would," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs and projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. Among other items, such factors may include: volatility or decline of the Company's stock price, or absence of stock price appreciation; impacts and disruptions related to the wars in Ukraine and the Middle East; escalating pricing pressures; our ability to achieve commercial recoveries and to offset the adverse impact of higher commodity and other costs through pricing and other negotiations with our customers; work stoppages or other labor disruptions with our employees or our customers' employees; prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruptions in our supply base or our customers' supply base; competitive threats and commercial risks associated with our diversification strategy; possible variability of our working capital requirements; risks associated with our international operations, including changes in laws, regulations, and policies governing the terms of foreign trade such as increased trade restrictions and tariffs; our ability to collect tariff recoveries from our customers; foreign currency exchange rate fluctuations; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness and rates of interest; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; significant costs related to manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers' needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal and regulatory proceedings, claims or investigations against us; the potential impact of any future public health events on our financial condition and results of operations; the ability of our intellectual property to withstand legal challenges; cyber-attacks, data privacy concerns, other disruptions in, or the inability to implement upgrades to, our information technology systems; the possible volatility of our annual effective tax rate; the possibility of a failure to maintain effective controls and procedures; the possibility of future impairment charges to our goodwill and long-lived assets; our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce; our ability to procure insurance at reasonable rates; and our dependence on our subsidiaries for cash to satisfy our obligations.; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law. This press release also contains estimates and other information that is based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information. Financial statements and related notes follow: Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating performance not indicative of the Company's core financial activities. Net new business is a measure not recognized under U.S. GAAP which is a representation of potential incremental future revenue but which may not fully reflect all external impacts to future revenue. Management considers EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business to be key indicators of the Company's operating performance and believes that these and similar measures are widely used by investors, securities analysts and other interested parties in evaluating the Company's performance. In addition, similar measures are utilized in the calculation of the financial covenants and ratios contained in the Company's financing arrangements and management uses these measures for developing internal budgets and forecasting purposes. EBITDA is defined as net income (loss) adjusted to reflect income tax expense (benefit), interest expense net of interest income, depreciation and amortization, and adjusted EBITDA is defined as EBITDA further adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted net income (loss) is defined as net income (loss) adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of sales. Adjusted basic and diluted earnings (loss) per share is defined as adjusted net income (loss) divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Free cash flow is defined as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company's ability to service and repay its debt. Net new business reflects anticipated sales from formally awarded programs, less lost business, discontinued programs and replacement programs and is based on S&P Global (IHS Markit) forecast production volumes. The calculation of "net new business" does not reflect customer price reductions on existing programs and may be impacted by various assumptions embedded in the respective calculation, including actual vehicle production levels on new programs, foreign exchange rates and the timing of major program launches. When analyzing the Company's operating performance, investors should use EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business as supplements to, and not as alternatives for, net income (loss), operating income, or any other performance measure derived in accordance with U.S. GAAP. EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results of operations as reported under U.S. GAAP. Other companies may report EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business differently and therefore the Company's results may not be comparable to other similarly titled measures of other companies. In addition, in evaluating adjusted EBITDA and adjusted net income (loss), it should be noted that in the future the Company may incur expenses similar to or in excess of the adjustments in the below presentation. This presentation of adjusted EBITDA and adjusted net income (loss) should not be construed as an inference that the Company's future results will be unaffected by special items. Reconciliations of EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and free cash flow follow. Reconciliation of Non-GAAP Financial Measures View original content to download multimedia:https://www.prnewswire.com/news-releases/cooper-standard-highlights-positive-cash-flow-and-continued-strong-new-business-awards-in-the-second-quarter-of-2026-maintains-midpoint-of-full-year-guidance-302844197.html

The market expects Cooper-Standard (CPS) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This auto parts supplier is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +850%. Revenues are expected to be $699.1 million, down 1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 6.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Cooper-Standard, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that Cooper-Standard will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cooper-Standard would post a loss of$0.16 per share when it actually produced a loss of -$0.29, delivering a surprise of -81.25%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cooper-Standard doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Automotive - Original Equipment industry, Allison Transmission (ALSN), is soon expected to post earnings of $2.6 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +13.5%. This quarter's revenue is expected to be $1.51 billion, up 85.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Allison Transmission has been revised 1.7% up to the current level. Nevertheless, the company now has an Earnings ESP of -4.62%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Allison Transmission will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cooper-Standard Holdings Inc. (CPS) : Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Cooper-Standard Holdings Inc.? Here are five stocks we like better. Cooper-Standard’s Q1 sales rose 2.9% to $686.4 million, with gross margin improving to 12.0% despite production headwinds and inflation. Adjusted EBITDA fell to $51 million mainly because last year included about $10 million in royalty payments that did not recur. The company said it is well positioned to meet or exceed full-year targets, backed by $128 million in net new business awards in the first quarter and ongoing cost savings. Management remains confident in its goal to more than double the Fluid Handling business over the next five to seven years. Liquidity improved after refinancing, with about $286 million available at quarter-end and annual cash interest expected to drop by roughly $6 million. The refinancing also extended note maturities to 2031, giving the company more financial flexibility. Cooper-Standard (NYSE:CPS) reported higher first-quarter sales and improved gross margin, while management said the auto supplier remains on track to meet or exceed its full-year targets despite production headwinds, inflationary pressures and broader geopolitical uncertainty. Chairman and Chief Executive Officer Jeff Edwards said the company began 2026 with operational performance consistent with 2025, including 99% green customer scorecards for quality and service and 97% green scorecards for new program launches. He also highlighted safety performance, saying Cooper-Standard recorded a total incident rate of 0.18 reportable incidents per 200,000 hours worked during the quarter, below what the company described as a world-class benchmark of 0.35. → Wells Fargo’s Comeback Is Real—But Not Risk-Free “Our plant managers and our plant employees continued to deliver outstanding performance and value for our customers through their dedication and commitment to excellence,” Edwards said. Executive Vice President and Chief Financial Officer John Banas said first-quarter 2026 sales were $686.4 million, up 2.9% from the first quarter of 2025. The increase was driven primarily by favorable foreign exchange, partially offset by unfavorable volume and mix net of customer recoveries. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Gross margin improved 40 basis points from the prior-year period to 12.0% of sales. Banas called the margin improvement “a strong result” given production volume headwinds on certain key platforms in North America. Adjusted EBITDA was $51 million, compared with $58.7 million a year earlier. Banas said the year-over-year decline was primarily due to the non-recurrence of about $10 million in royalty payments received in the first quarter of 2025. Excluding that comparison, he said adjusted EBITDA and margin would have improved from the prior year. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom On a GAAP basis, Cooper-Standard reported a net loss of $33.3 million, compared with net income of $1.6 million in the first quarter of 2025. Adjusted net loss was $5.2 million, or $0.29 per share, compared with adjusted net income of $3.5 million, or $0.19 per share, in the year-ago quarter. Capital expenditures were $24 million, or 3.5% of sales, slightly above the prior-year period due to increased launch-related investments. Banas said the company continues to exercise discipline around capital spending while focusing on returns on invested capital. Management said Cooper-Standard delivered $17 million in savings from lean initiatives and other cost-saving programs during the quarter. Banas said the company also realized $2 million in incremental savings from prior restructuring actions and $1 million of lower selling, general and administrative costs compared with the prior year. Those benefits were offset by $7 million of unfavorable volume and mix, including customer price adjustments and short-term production disruptions; $7 million of higher wages and general inflation; $2 million of unfavorable foreign exchange; and $12 million of other unfavorable items, mainly the non-recurrence of the royalty payments received in the first quarter of 2025. During the question-and-answer portion of the call, Banas said the company is “fairly well protected” against higher input costs, including oil and aluminum, through contractual indexes and negotiations with customers. He said more than 70% of the company’s exposure is covered by those mechanisms, though there can be a lag between cost increases and recoveries. “Just given the timing of oil price ramp up, there wasn’t a significant impact inflationary pressures in Q1, but we certainly expect to see that headwind come in Q2,” Banas said, adding that recoveries would follow the usual sequential cadence. Cooper-Standard ended the quarter with about $118 million in cash. Banas said the cash balance reflected typical seasonal working capital changes, which the company expects to unwind over the next couple of quarters, as well as $24 million of out-of-period accrued interest paid in connection with refinancing activity. Including $167 million of availability on its unused asset-based lending facility, Cooper-Standard had total liquidity of about $286 million as of March 31, 2026. Banas said the refinancing completed on March 4 lowered the company’s overall interest rate and is expected to reduce annual cash interest by about $6 million. He also said the transaction improved financial flexibility and extended the maturity on newly issued notes to 2031. Edwards said Cooper-Standard received $128 million in net new business awards during the first quarter, ahead of its plan and positioning the company to pursue its full-year goal of more than $400 million in net new awards. In response to an analyst question, Edwards said approximately 60% of the first-quarter awards were in Fluid Handling and 40% were in Sealing. He said about 50% of the awards were based in North America, with a large percentage also based in China. Edwards said Fluid Handling is expected to benefit from growth in hybrid vehicle programs, noting that hybrid products can produce more than double the content per vehicle compared with traditional internal combustion engine programs in that business. “As we go forward and there are continued hybrid products introduced into the market, you’ll continue to see the content per vehicle for Fluid continuing to rise,” Edwards said. The company reiterated its longer-term target to double its Fluid Handling business within the next five to seven years. Edwards said recent wins and target business opportunities give management confidence that Cooper-Standard is on track to achieve that goal. Edwards said the company believes it is on track to achieve or exceed the full-year targets outlined in February, with a more formal guidance update expected alongside second-quarter results. He said Cooper-Standard has increased gross profit margins by 160 basis points over the past two years despite reduced or flat production volumes in its two largest operating regions. He attributed the improvement to cost efficiencies, fixed-cost reductions and the launch of new programs with higher variable contribution margins. Management also pointed to sustainability-related initiatives, including Cooper-Standard’s FlexiCore thermoplastic body seal technology, which Edwards said was recognized in the 2026 Environment+Energy Leaders Awards. He said the technology replaces a traditional metal carrier with a patented thermoplastic carrier, creating a lightweight, recyclable seal. Looking ahead, Edwards said the company continues to face industry disruption and macroeconomic uncertainty, but he suggested that some recent headwinds could become tailwinds in the second half of the year if geopolitical conditions improve. “We are optimistic that certain headwinds we have faced for the past two quarters could turn into tailwinds in the back half of the year,” Edwards said. “Meanwhile, we’re maintaining our focus on delivering value for our customers, optimizing our operations around the world, and successfully executing our strategic plans.” Cooper-Standard Holding Inc is a global supplier of sealing, fuel and brake delivery, and fluid transfer systems for the automotive industry. The company designs and manufactures engineered rubber, plastic and metal products, including sealing systems for doors, windows and powertrain assemblies, fuel and brake hoses and lines, and fluid transfer components such as coolant, refrigerant and washer fluid systems. Founded in 1922 and headquartered in Novi, Michigan, Cooper-Standard operates manufacturing facilities and technical centers across North America, Europe, South America and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cooper-Standard Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

NORTHVILLE, Mich., May 6, 2026 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the first quarter 2026. First Quarter 2026 Highlights Sales of $686.4 million, an increase of 2.9% vs. the first quarter of 2025 Gross profit of $82.4 million, an increase of 6.8% vs. the first quarter of 2025 Net loss of $33.3 million, or $(1.85) per diluted share, including loss on refinancing of debt Adjusted net loss of $5.2 million, or $(0.29) per diluted share Adjusted EBITDA of $51.0 million, or 7.4% of sales Net New Business Awards totaled $127.9 million during the quarter "Our teams delivered results in the quarter that were consistent with our plans and expectations," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "By maintaining focus on operational excellence and our strategic execution, we are effectively managing current market dynamics and believe we are on track to achieve or exceed our sales and profitability targets for the full year." Consolidated Results Sales increased by 2.9% in the first quarter due primarily to favorable foreign exchange, partially offset by unfavorable volume and mix. Net loss for the first quarter of 2026 was $33.3 million, including restructuring charges of $4.6 million, a loss of $24.2 million related to the successful debt refinancing completed during the quarter, and other special items. Net income for the first quarter of 2025 was $1.6 million, including restructuring charges of $2.1 million and other special items. Excluding these special items and their related tax impact, adjusted net loss was $5.2 million in the first quarter of 2026 compared to adjusted net income of $3.5 million in the first quarter of 2025. The year-over-year change was primarily due to unfavorable volume and mix, the non-recurrence of certain royalty payments received in the first quarter of 2025, and general cost inflation, partially offset by cost savings from increased manufacturing and purchasing efficiency. Adjusted EBITDA for the first quarter of 2026 was $51.0 million compared to $58.7 million in the first quarter of 2025. The year-over-year change was primarily driven by unfavorable volume and mix, the non-recurrence of certain royalty payments received in the first quarter of 2025, and general cost inflation, partially offset by increased manufacturing and purchasing efficiency. New Business Awards The Company continues to leverage its world-class engineering and manufacturing capabilities, its innovation programs and its reputation for quality and service to win new business awards with its OEM customers and capitalize on positive global trends associated with hybrid and battery electric vehicles. During the first quarter of 2026, the Company received net new business awards totaling $127.9 million in anticipated incremental future annualized sales, including $31.8 million in new awards associated with battery electric or full-hybrid platforms. Segment Results of Operations Sales Adjusted EBITDA Additional detail on our quarterly segment variance analyses is available in our periodic filings with the Securities and Exchange Commission. Cash and Liquidity As of March 31, 2026, following the successful refinancing transaction completed during the quarter, Cooper Standard had cash and cash equivalents totaling $118.5 million. Total liquidity, including availability under the Company's amended senior asset-based revolving credit facility, was $285.8 million at the end of the first quarter of 2026. Based on current expectations for light vehicle production and customer demand for our products, the Company believes it has sufficient financial resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future. These financial resources include current cash on hand, continuing access to flexible credit facilities, and expected future positive cash generation. Outlook The Company believes it is well positioned to continue driving sustainable value through profitable growth and margin enhancement. While customer supply chain disruptions, changing trade and tariff policies, geopolitical issues and affordability concerns have impacted and may continue to impact production forecasts, the Company believes that the underlying demand for new light vehicle production in its key operating regions remains strong, supported by the age of the existing fleet, increasing population, increasing numbers of newly licensed drivers, and declining vehicle inventories. The Company remains confident that the continuing successful execution of its plans and strategies, including expanding relationships with new customers and the continued launch of new, innovative programs with enhanced contribution margins and enhanced index-based commercial agreements, will drive increasing profit margins and returns on invested capital over time as markets stabilize. Following strong actual results in the first three months of the year, the Company believes it is on track to achieve or exceed the targeted ranges for sales and profitability as outlined in its formal guidance for 2026 issued in February. The Company expects to provide a formal update to its full year guidance in conjunction with the release of its second quarter 2026 results. Conference Call Details Cooper Standard management will host a conference call and webcast on May 7, 2026 at 9 a.m. ET to discuss its first quarter 2026 results, provide a general business update and respond to investor questions. Investors and other interested parties may listen to the call by accessing the online, real-time webcast at https://ir.cooperstandard.com/events. To participate by phone, callers in the United States and Canada can dial toll-free at 800-836-8184 (international callers dial 646-357-8785) and ask to be connected to the Cooper Standard conference call. Representatives of the investment community will have the opportunity to ask questions during Q&A. Participants should dial-in at least five minutes prior to the start of the call. A replay of the webcast will be available on the investors' portion of the Cooper Standard website (https://ir.cooperstandard.com) shortly after the live event. About Cooper Standard Cooper Standard, headquartered in Northville, Mich., with locations in 20 countries, is a leading global supplier of sealing and fluid handling systems and components. Utilizing our materials science and manufacturing expertise, we create innovative and sustainable engineered solutions for diverse transportation and industrial markets. Cooper Standard's approximately 22,000 team members (including contingent workers) are at the heart of our success, continuously improving our business and surrounding communities. Learn more at www.cooperstandard.com or follow us on LinkedIn, X, Facebook, Instagram or YouTube. Forward Looking Statements This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "outlook," "guidance," "forecast," or future or conditional verbs, such as "will," "should," "could," "would," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs and projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. Among other items, such factors may include: volatility or decline of the Company's stock price, or absence of stock price appreciation; impacts and disruptions related to the wars in Ukraine and the Middle East; our ability to achieve commercial recoveries and to offset the adverse impact of higher commodity and other costs through pricing and other negotiations with our customers; work stoppages or other labor disruptions with our employees or our customers' employees; prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; escalating pricing pressures; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruptions in our supply base or our customers' supply base; competitive threats and commercial risks associated with our diversification strategy; possible variability of our working capital requirements; risks associated with our international operations, including changes in laws, regulations, and policies governing the terms of foreign trade such as increased trade restrictions and tariffs; foreign currency exchange rate fluctuations; the effects of a potential U.S. government shutdown and its impact on our customers; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness and rates of interest; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; significant costs related to manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers' needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal and regulatory proceedings, claims or investigations against us; the potential impact of any future public health events on our financial condition and results of operations; the ability of our intellectual property to withstand legal challenges; cyber-attacks, data privacy concerns, other disruptions in, or the inability to implement upgrades to, our information technology systems; the possible volatility of our annual effective tax rate; the possibility of a failure to maintain effective controls and procedures; the possibility of future impairment charges to our goodwill and long-lived assets; our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce; our ability to procure insurance at reasonable rates; and our dependence on our subsidiaries for cash to satisfy our obligations.; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law. This press release also contains estimates and other information that is based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information. Financial statements and related notes follow: Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating performance not indicative of the Company's core financial activities. Net new business is a measure not recognized under U.S. GAAP which is a representation of potential incremental future revenue but which may not fully reflect all external impacts to future revenue. Management considers EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business to be key indicators of the Company's operating performance and believes that these and similar measures are widely used by investors, securities analysts and other interested parties in evaluating the Company's performance. In addition, similar measures are utilized in the calculation of the financial covenants and ratios contained in the Company's financing arrangements and management uses these measures for developing internal budgets and forecasting purposes. EBITDA is defined as net income (loss) adjusted to reflect income tax expense (benefit), interest expense net of interest income, depreciation and amortization, and adjusted EBITDA is defined as EBITDA further adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted net income (loss) is defined as net income (loss) adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of sales. Adjusted basic and diluted earnings (loss) per share is defined as adjusted net income (loss) divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Free cash flow is defined as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company's ability to service and repay its debt. Net new business reflects anticipated sales from formally awarded programs, less lost business, discontinued programs and replacement programs and is based on S&P Global (IHS Markit) forecast production volumes. The calculation of "net new business" does not reflect customer price reductions on existing programs and may be impacted by various assumptions embedded in the respective calculation, including actual vehicle production levels on new programs, foreign exchange rates and the timing of major program launches. When analyzing the Company's operating performance, investors should use EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business as supplements to, and not as alternatives for, net income (loss), operating income, or any other performance measure derived in accordance with U.S. GAAP. EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results of operations as reported under U.S. GAAP. Other companies may report EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business differently and therefore the Company's results may not be comparable to other similarly titled measures of other companies. In addition, in evaluating adjusted EBITDA and adjusted net income (loss), it should be noted that in the future the Company may incur expenses similar to or in excess of the adjustments in the below presentation. This presentation of adjusted EBITDA and adjusted net income (loss) should not be construed as an inference that the Company's future results will be unaffected by special items. Reconciliations of EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and free cash flow follow. View original content to download multimedia:https://www.prnewswire.com/news-releases/cooper-standard-reports-solid-first-quarter-2026-results-and-strong-new-business-awards-remains-on-track-to-achieve-or-exceed-full-year-plans-302764609.html

Achieved 40 basis point gross margin expansion despite North American production volume headwinds on key platforms, driven by $17 million in lean manufacturing and purchasing savings. Maintained exceptional operational quality with 99% green customer scorecards for quality and service, and 97% for new program launches. Strategic focus on cost optimization and sustainable efficiencies allowed the company to expand margins even in a flat production volume environment. New business awards are increasingly high-margin, with management targeting hurdle rates that support a long-term goal of doubling return on invested capital by 2028. Fluid Handling segment is positioned for growth across all powertrain types, specifically targeting a doubling of the business within five to seven years through increased content on hybrid and EV platforms. The company is successfully transitioning its portfolio by replacing older, lower-margin programs with new launches that feature enhanced variable contribution margins. Management expects to achieve or exceed full-year 2026 targets, with a formal guidance update planned for the second quarter results in August. The company anticipates that current industry headwinds could shift to tailwinds in the second half of the year, contingent on potential stabilization of geopolitical conflicts. Strategic financial targets include achieving a return on invested capital of well over 20% by the end of the 2028 business year. Net new business awards are on track to exceed the full-year goal of $400 million, supported by available manufacturing capacity requiring minimal incremental capital investment. Guidance assumes that while rising oil and aluminum prices will create a headwind in Q2, contractual recovery mechanisms will largely offset these costs on a lag basis. Completed a successful debt refinancing in March 2024, extending maturities to 2031 and reducing annual cash interest expense by approximately $6 million. Adjusted EBITDA was impacted by the non-recurrence of $10 million in royalty payments received in the prior year period. Working capital experienced typical seasonal builds and a $24 million out-of-period interest payment related to the refinancing, both expected to normalize in coming quarters. Introduced FlexiCore thermoplastic body seal technology, a 100% recyclable innovation that replaces traditional metal carriers and has already launched with a global automaker. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Q1 awards of $128 million were split 60% Fluid and 40% Sealing, with approximately 50% based in North America and a significant portion in China. Management noted that Fluid content per vehicle can more than double on hybrid programs compared to traditional internal combustion engine programs. The company is over 70% covered by contractual indexes or regular negotiation cadences to recover increases in oil and aluminum prices. There is a typical one-quarter lag between experiencing inflationary spend and receiving customer recoveries, which may impact Q2 margins before normalizing. Innovation products, representing 74% of new awards, generally offer higher margins by providing customers with weight reduction and recycling benefits. Management expressed high confidence in margin expansion because 85% to 95% of projected 2027-2028 revenue is already booked at known price and cost points. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, May 7, 2026 at 9 a.m. ET Chairman and Chief Executive Officer — Jeffrey S. Edwards Executive Vice President and Chief Financial Officer — Jonathan P. Banas Director, Investor Relations — Roger Hendriksen Need a quote from a Motley Fool analyst? Email [email protected] Jeffrey S. Edwards: Thanks, Roger. Good morning, everyone. We appreciate the opportunity to review our first quarter results and provide an update on our business and the outlook going forward. To begin on slide 5, I would like to highlight some of the key first quarter data points that we believe are reflective of our continuing outstanding operational performance and our ongoing commitment to our core company values. In terms of operations and customer service, we started 2026 with the same strong level of performance that we had in 2025, ending the first quarter with 99% green customer scorecards for quality and service. For new program launches, we also continue to deliver strong performance, with 97% of our customer scorecards being green. Our plant managers and our plant employees continue to deliver outstanding performance and value for our customers through their dedication and commitment to excellence. And, as always, our most important operating metric, safety performance, continues to be excellent. In fact, in the first quarter, we had a total incident rate of just 0.18 reportable incidents per 200,000 hours worked, well below the world-class benchmark of 0.35. Importantly, 48 of our plants maintained a perfect safety record, with a total incident rate of zero for the first three months of the year. That is 84% of all of our production facilities achieving a perfect safety score, demonstrating that our ultimate goal of zero safety incidents is achievable. We are certainly proud of our entire global team for their focus and achievement in this important operating measure. In terms of cost optimization, we had another solid quarter, with our manufacturing and purchasing teams delivering $17 million of savings through lean initiatives and other cost-saving programs. These cost reductions and operating efficiencies, combined with revenue growth in the quarter, allowed us to achieve a solid 40 basis point improvement in gross margin versus the first quarter of last year. As a result, despite some of the market headwinds we have been seeing, we continue to drive profitable growth and margin expansion through the execution of our plans and strategies. Finally, we are continuing to leverage world-class service, technical capabilities, and our award-winning innovations to win significant new business. During 2026, we received $128 million in net new business awards, which are expected to drive profitable growth as they launch over the next few years. I will talk more about the significance of our new business awards in a few minutes. Turning to slide 6, as we have made terrific improvements in our operating metrics and profitability over the past few years, we certainly have not lost sight of the importance of being a good corporate citizen. We continue to work on developing and delivering product and material solutions for our customers that help them achieve their environmental goals. And, of course, we have set and are working to achieve aggressive internal goals for reducing energy consumption, emissions, and scrap. Our achievements in corporate responsibility continue to garner recognition from numerous entities, as well as our customers. One of our recent innovations, our FlexiCore thermoplastic body seal technology, was recently recognized as a winner in the 2026 Environment + Energy Leaders Award. This new technology replaces the metal carrier that is used in a traditional dynamic body seal with a patented thermoplastic carrier. The result is a lightweight body seal that maintains the same high-quality performance of traditional materials but is 100% recyclable, increasing vehicle efficiency and reducing materials that end up in landfills. Recently, a FlexiCore front and rear closure seal application was successfully launched into production with a global automaker, further demonstrating the real-world impact of this technology. We are also pleased to have recently been included among USA Today's list of America's Climate Leaders for the third consecutive year, in recognition of our continuing advancements in environmental stewardship. Corporate responsibility is and will continue to be an area of focus for our entire organization, from the production floor to the boardroom, because it is the right thing to do. You can learn more about our goals and our progress in sustainability in our 2025 corporate responsibility report, which will be published within the next few days. We encourage everyone to take a few minutes to look through it when it posts on our website. Now let me turn the call over to Jonathan P. Banas to discuss the financial results for the quarter. Jonathan P. Banas: Thanks, Jeff, and good morning, everyone. In the next few slides, I will provide some details on our financial results for the quarter, and discuss our cash flows, liquidity, and aspects of our balance sheet and capital structure. On slide 8, we show a summary of our results for 2026, with comparisons to the same period last year. First quarter 2026 sales were $686.4 million, an increase of 2.9% compared to 2025. The increase was driven primarily by favorable foreign exchange, partially offset by unfavorable volume and mix, net of customer recoveries. As Jeff mentioned, our first quarter 2026 gross margin improved 40 basis points compared to the prior year, up to 12% of sales. This was a strong result in view of the production volume headwinds we continue to face on certain key platforms in North America during the quarter. Adjusted EBITDA in the quarter was $51 million, compared to the $58.7 million we reported in the first quarter 2025. The year-over-year change was primarily due to the non-recurrence of approximately $10 million of royalty payments that we received in 2025. Otherwise, EBITDA and margin would have improved over last year. On a U.S. GAAP basis, we reported a net loss of $33.3 million in 2026, compared to net income of $1.6 million in 2025. Adjusting for the loss incurred on the successful refinancing of our debt in the first quarter this year, restructuring, and other items from both periods, as well as their related tax impacts, adjusted net loss for 2026 was $5.2 million, or $0.29 per share, compared to adjusted net income of $3.5 million, or $0.19 per share, in 2025. Our capital expenditures in 2026 totaled $24 million, or 3.5% of sales, slightly higher than the prior-year period due to increased launch-related investments. We continue to exercise discipline around capital investments, as we focus on maximizing our returns on invested capital. Moving to slide 9, the charts provide additional insights and quantification of key factors impacting our results for the first quarter. For sales, favorable foreign exchange was a tailwind of approximately $24 million in the quarter versus 2025. Unfavorable volume and mix, net of customer price adjustments, had a negative impact on sales of approximately $5 million compared to the same period a year ago. For adjusted EBITDA, lean initiatives in purchasing and manufacturing positively contributed $17 million year over year, delivered by continued strong performance from our global teams. In addition, we continue to realize benefits from our restructuring initiatives implemented in prior periods, amounting to $2 million in incremental savings, as well as lower SG&A of $1 million in the first quarter compared to last year. Offsetting these improvements were $7 million of unfavorable volume/mix including customer price adjustments and the impact of certain short-term production disruptions, $7 million in increased costs in the form of higher wages and general inflation, $2 million from unfavorable foreign exchange, and $12 million of other unfavorable items, primarily the non-recurrence of certain royalty payments we received in the first quarter of last year. Moving to slide 10, we ended the first quarter with a cash balance of approximately $118 million, owing primarily to typical seasonal changes in working capital, which we expect will unwind over the next couple of quarters, as well as $24 million of out-of-period accrued interest that we paid in conjunction with our refinancing. Cash on hand, coupled with $167 million of availability on our ABL facility, which remains unutilized, resulted in total liquidity of approximately $286 million as of 03/31/2026. We believe that this provides us with more than sufficient liquidity to support the continuing execution of our business plans and profitable growth objectives in today's economic and industry environment. The successful refinancing that we completed on March 4 gives us an overall lower interest rate and reduces expected annual cash interest by approximately $6 million. In addition to the lower interest rate, the refinancing also provides us with increased financial flexibility through more favorable terms, and significantly extends the maturity on the newly issued notes out to 2031. We believe this enhanced capital structure positions us extremely well to continue to execute on our strategic plans, deliver profitable growth, lower our net leverage, and maximize our returns on invested capital. This concludes my prepared comments. I will turn it back over to Jeff. Jeffrey S. Edwards: Thanks, John. In the last portion of our call, I would like to again comment on our high-level strategic imperatives and how these are positioning us for continuing profitable growth over the next several years. I will wrap up with a few comments on our outlook for our business and our industry in general in 2026. Please turn to slide 12. Our strategies and operating plans, as you know, are built around the four key strategic imperatives that you see outlined on slide 12. By aligning the company around these common objectives, we continue to drive significant improvements in virtually every aspect of our business. And by the continuing execution of our plans and strategies, we are positioning the company to deliver continued profitable growth, further improvements in margins, and significantly improved returns on invested capital, as we discussed in last quarter's call. Moving to slide 13, the charts provide a concise summary of the progress we have made in restoring the financial strength of the company. Through our successful strategic execution, we have been able to increase our gross profit margins by 160 basis points over the past two years, despite reduced or flat production volumes in our two largest operating regions. This includes the impact from the significant decline in production on one of our key platforms in North America that resulted from a customer supply chain disruption beginning in the fourth quarter of last year. Because of our success in driving sustainable efficiencies and cost reductions, we believe we will continue this trend of expanding margins in 2026 and beyond, even if production volumes remain flat. And we would expect to leverage any increase in production volume to drive further profitability and returns. In addition, in our cost optimizations we are benefiting from continuing launches of new programs and products with enhanced variable contribution margins. As these new programs ramp up, they are replacing older programs that have lower margins on average. Our booked-business launch cadence and the delivery of run-out business give us a high degree of confidence in our expanding margin outlook. Turning to slide 14, both of our business segments are executing sound strategies to drive profitable growth and improved returns on invested capital. In our Sealing segment, where we are already the global leader in the industry, we are leveraging our leading technologies, expertise, and innovation to capture additional share and profitability. We have also deployed sophisticated digital tools within our manufacturing facilities to drive further efficiencies and improved asset utilization. Finally, as we continue to deliver exciting innovations that provide incremental value to our customers, we are winning more than our fair share of new business. Turning to slide 15, in our Fluid Handling segment, we have an unmatched portfolio of products and innovations that position us well to take advantage of increases in ICE and hybrid powertrains in the U.S., the continuing adoption of EVs in China, and the evolving mix of hybrids and EVs in Europe. This flexibility around powertrains, combined with our ability to design and deliver engineered solutions to optimize vehicle efficiency, is creating opportunities for increased content per vehicle and profitable new growth. As we have said in the past, our longer-term strategic target is to double the fluids business within the next five to seven years. With recent new business wins and a long list of target business opportunities coming up, we believe we are on track to achieve this goal. Turning to slide 16, in terms of winning new business, as I mentioned at the beginning of the call, we have received $128 million in net awards in the first three months of the year. This was ahead of our plans for the quarter, putting us in a strong position to achieve the full-year goal of over $400 million in net new business awards. As you can see in the chart, as our overall operating performance and financial strength continue to improve, the new business awards are accelerating. And the good news is that we have available capacity to launch much of this new business over the coming years with minimal incremental capital investment. We are proud to be the supplier that our customers are increasingly turning to for quality components, consistency of delivery, and collaboration on critical design and development of new technologies. With these awards in hand for Q1 and a bright outlook for the new business wins ahead, we are increasingly confident that we will be able to execute our plans to achieve our longer-term strategic financial targets for growth, margins, and return on capital. Turning to slide 17, to conclude our prepared remarks this morning, let me shift focus to the near term and our outlook for the rest of 2026. The key takeaway this morning is that, despite continued disruptions within our industry and ongoing uncertainty in the global economy, we were able to deliver results that exceeded our original operating plan. We are optimistic that certain headwinds we have faced for the past two quarters could turn into tailwinds in the back half of the year. And if we could get some resolution to the military conflict in the Middle East, we would expect a strong positive effect on consumer sentiment and consumer demand globally. Meanwhile, we are maintaining our focus on delivering value for our customers, optimizing our operations around the world, and successfully executing our strategic plans to drive profitable growth, further expand our margins, and maximize return on invested capital. We believe we are on track to achieve or exceed the full-year targets that we set out for you back in February. We expect to provide a more formal update on guidance, as we typically do, in conjunction with our second quarter results. We also believe we are solidly on track to achieve our longer-term strategic financial targets for adjusted EBITDA margins and return on invested capital. This concludes our prepared remarks. Operator: We will now open the call for questions. Operator: Ladies and gentlemen, if you would like to ask a question, please press star followed by 1 on your telephone. If you are using a speakerphone, please pick up the handset before entering your request. To withdraw from the queue, press star then the number 2. One moment, please, as we assemble the queue for questions. The first question comes from Nathan Jones from Stifel. Please go ahead. Analyst: Good morning, everyone. This is Andre Sourette Molla on for Nathan Jones. Thanks for taking my questions. There was a nice step up in new business from 2024 to 2025, and now $128 million in January. I think you released that about $32 million of net new bids were coming from BEV and full hybrid. Can you give us a split between how much of that is within Sealing or Fluid for Q1 2026 as well? Just so we have an indication—obviously, more content on the Fluid business on those powertrains—so curious to hear about that. Jeffrey S. Edwards: Yes, sure. Good morning. The $128 million that we have booked so far in Q1 is about 60% Fluid and 40% Sealing. Not a surprise. Around 50% of it is North America-based, and a large percentage is China-based—again, not a surprise. I think as we go forward and there are continued hybrid products introduced into the market, you will continue to see the content per vehicle for Fluid continuing to rise. Last year, to your point about the nearly $300 million of net new business, I think Sealing actually had more of that than Fluid, so it does not surprise me this year that Fluid is outpacing the Sealing net new business. It tends to fluctuate like that. But I do think Fluid, going forward, is going to benefit significantly from the additional hybrid coming into the market. And, as we have said in the past, that can result in more than double the content per vehicle than what we have seen from the traditional ICE programs that were booked within our Fluid business. So, really a positive story. We are on our way to exceeding the $400+ million of net new business for 2026. Analyst: Thank you. And then just one more, switching gears to margins. Can you discuss the impact higher input costs are expected to have on margins this year? How should we think about that and maybe the escalators and de-escalators you have in place? Jonathan P. Banas: Good morning, Andres. When you think about the significant oil price increases that the industry is bearing, as well as higher aluminum prices for some discrete reasons that suppliers are raising globally, we are fairly well protected. As we have discussed in the past, we are in excess of about 70% covered on contractual indexes with our customers or otherwise negotiate on a regular cadence—every quarter or every six months—with customers to claw that back. So we think any increases will be adequately addressed with those historical mechanisms we have in place overall. There is a lag when you think about our spend versus the timing of recovery. The indexes will traditionally reset every quarter and therefore you then go back in and recover the previous quarter's inflationary impact, or in a good-news situation, you would give some of that back. That is the typical cadence. In Q1, just given the timing of the oil price ramp-up, there was not a significant inflationary impact. But we certainly expect to see that headwind come in Q2, and then the recoveries would come online in that sequential recovery cadence. Analyst: Thank you. Thanks for taking my questions. Operator: Thank you. Your next question comes from Kirk Ludtke from Imperial Capital. Please go ahead. Kirk Ludtke: Hello, Jeff, John, Roger. Thank you for the call. On slide 16, another impressive quarter for new business, and one of the bullets says 74% related to innovation products. If I remember correctly, those are materially higher margin than your existing average margins. I am just curious if you would be willing to quantify how much more profitable they are? Jeffrey S. Edwards: Yes, Kirk, this is Jeff. As we have said, going forward—whether it is innovative net new business or traditional products—we have been very consistent with targeting hurdle rates and achieving those hurdle rates as we book net new business. It is why we are able to put out the type of strategic targets we have related to VCM increase, overall margins, and the significant increase of return on invested capital that is forecast over the next several years. That is actually happening. You can see the 160 basis point increase over the last two years. You can see the VCM well over 30% this particular quarter. As all this business launches—from what we booked in 2024, 2025, and what we are booking here in 2026—those numbers will continue to go up. We expect our return on invested capital to be well over 20% at the end of our 2028 business year, tracking to the same strategic targets that we put out last June. Your point is well taken related to innovation. We are seeing further expansion as we launch products that provide customers with cost-down opportunities, light-weighting opportunities, and recycling opportunities. I would expect those numbers to be even better as we present our five-year plan. We have a meeting coming up with our board in June where we will roll out the next five years, and I would expect to see continued margin expansion beyond what we have even said. Kirk Ludtke: Got it. I appreciate it. Thank you. And then maybe a follow-up on the higher gasoline prices. Have you seen any change in schedules since prices went up? Jeffrey S. Edwards: The volumes that we have in our business plan had some pluses and minuses as we usually do each quarter. As we start into the second quarter, we are seeing the volumes basically on our plan. As I said on the call, I think that as long as the Middle East conflict gets resolved here in short order, I expect it to end up being a tailwind in the second half. If that does not happen, then your guess is as good as mine. But so far, I think we are well positioned for the first half of the year. We will manage through the increase in oil prices versus our plan for the second quarter, and then hopefully be well positioned for the second half of the year to be stronger than planned. That is what I am hoping for. Operator: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star followed by 1 on your telephone. If you are using a speakerphone, please pick up the handset before entering the request. Your next question comes from Doug Carson from Bank of America. Please go ahead. Analyst: Great, team. Thanks for hosting the call and for taking my question. As I look at the bridge from 2025 to 2026, I know you will be out with more detail in Q2, so I do not want to get ahead of it. But there was a goal that was set—investors thought it was optimistic—but it looks like you are going to hit it or potentially exceed it. A large part of that bridge was lean manufacturing, improvements in purchasing, and in this tough market, to be able to beat that number—could we get a sense if this is going to be coming more from business wins, or you feel like the lean could get even higher, or maybe more pricing, because volume is going to be challenging? Just a little sneak peek on what to be thinking about as far as the guidance. And then separately, during the deal you talked about 51% of your awards coming from high-growth Chinese OEMs. How has that cadence been with the Chinese? Jeffrey S. Edwards: Thanks for the questions. Related to how we continue to expand margins, it is all of the above. We have teams in both our Sealing and Fluid businesses across 20-plus countries, and each month and quarter they have detailed plans they are executing—plans that are developed well in advance of a particular business year. As Jonathan and I said on the last call, we had a high level of confidence that execution of cost reductions to help offset inflation was well on its way to being a record performance. We had not seen a year where they came in with 90%+ of these ideas already identified and being worked on before we even started 2026. That is why you see the execution and the ability to deliver on what we told you we would. I would expect that to continue for the rest of this year and next year. It has been our approach for well over a decade—the process is the process, the team is the team—and they continue to exceed expectations. Related to net new business, when we talk about 2027 and 2028, 85% to 95% of that is already booked. We know what those prices are, we know what our costs are, and we know what the investment is going to be to launch it all. Hence the confidence we have in more than doubling our return on invested capital over the next couple of years. The only thing I cannot forecast is volume and mix. Despite that being a challenge for the last number of years, we continue to expand profitability and returns because of how we are running the business, the decisions we are making, and—most importantly—the people we have in our plants executing. Oil prices have shot up versus what we had in the business plan, but contractually we are largely covered for recovery. There will be some timing issues in the second quarter, but for the full year I am still bullish. I believe the overall macroeconomic environment is positive, and I think the geopolitical environment has to become more positive. That is why I believe the second half could have some tailwinds. We will talk more about that in August. On the China question, the cadence with high-growth Chinese OEMs remains strong and aligned with what we outlined—consistent opportunities and awards as they expand globally, which supports our growth in Asia and beyond. Operator: It appears that there are no more questions. I would now like to turn the call back over to Roger Hendriksen. Roger Hendriksen: Thanks, everybody. We appreciate your continued engagement with our calls. If you have questions that did not come to mind and you would like to get in touch with us, we would certainly be open to further conversation—just feel free to reach out to me directly. Again, we appreciate your participation this morning, and thanks for your continued trust and confidence. This will conclude our call. Thank you. Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Cooper-Standard, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cooper-Standard wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!* Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cooper-Standard (CPS) Q1 2026 Earnings Transcript was originally published by The Motley Fool