Group 1 - Cooper-Standard Holdings Inc. reported a GAAP net loss of -$0.08 per share and revenue of $706 million, exceeding expectations by $19 million [1] - The company is on track to meet its near-term profitability goals, indicating potential for future growth [1] Group 2 - The investor profile indicates a focus on companies with high potential for substantial revenue and earnings growth that are not fully reflected in current market prices [1] - The investment strategy is long-term, with a preference for less cyclical and higher growth sectors, primarily in the United States [1]

Financial Data and Key Metrics Changes - The company reported revenue of PLN 3,600,000,000, an increase of nearly 4% year over year [8][36] - Adjusted EBITDA remained strong at PLN 824,000,000, a slight decline of 2.4% compared to the previous year due to higher costs [36][38] - Net profit was PLN 113,000,000, reflecting a decrease due to one-off effects from the previous year [38] - Free cash flow for the last twelve months adjusted for CapEx in the green energy segment reached over PLN 1,000,000,000, indicating strong cash generation capacity [38][41] Business Line Data and Key Metrics Changes - In the media segment, audience share increased to 22.5%, with advertising revenues growing by 3.7% year over year [12][14] - The telecommunications segment saw a growth in multiplay customers to over 3,000,000, with ARPU per B2C customer increasing by 4.3% to PLN 84 [21][27] - The green energy segment reported a 41% increase in production, reaching 314 gigawatt hours in Q2 2025 [29][32] Market Data and Key Metrics Changes - The advertising market grew by 3.2% year over year, with the company outperforming this growth [12][14] - The company maintained a stable market share of 28.2% in the advertising market [12] - The B2B segment saw a 4% year-over-year increase in ARPU, reaching nearly PLN 1,550 per month [28] Company Strategy and Development Direction - The company is focused on a long-term strategy aimed at building customer value and driving ARPU growth through a new flexible multiplay offering [6][50] - The completion of the Dzhevo wind farm is a key strategic achievement, expected to double the company's wind capacity and support future EBITDA growth [32][50] - The company aims to monetize its investments in green energy and deliver promised EBITDA in upcoming periods [34][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging operating environment, citing strong customer satisfaction and loyalty reflected in a low churn rate of 7.1% [24][34] - The management highlighted the importance of the new multiplay offer in maintaining customer engagement and driving future growth [20][34] - The company anticipates interest savings in the second half of the year, although the overall cost of debt service remains high [42][46] Other Important Information - The company secured a bank loan of nearly PLN 1,000,000,000 for the Jejuvo project, indicating strong confidence from financial institutions [7][50] - The company is nearing the end of its intensive investment phase in green energy, setting the stage for stable returns [45] Q&A Session Summary Question: What is your view on the planned digital tax? - Management believes regulating digital tax in Poland is necessary for fair competition with global tech companies, but the impact depends on the specific formula of the tax [53] Question: Could you provide an outlook for equipment sales in 2025? - Management expects a slight improvement in equipment sales, but does not anticipate significant increases due to market saturation [54] Question: When is the company expected to reach the peak of its net debt to EBITDA? - Management estimates this will occur around the first quarter of 2025 [56]

Financial Data and Key Metrics Changes - The company reported revenue of PLN 3,600,000,000, an increase of nearly 4% year over year [8][37] - Adjusted EBITDA was stable at PLN 824,000,000, a slight decline of 2.4% compared to the previous year due to higher costs [37][40] - Net profit settled at PLN 113,000,000, with a year-over-year decrease attributed to one-off effects [38][40] - Free cash flow for the last twelve months adjusted for CapEx in the green energy segment reached over PLN 1,000,000,000, indicating strong cash generation capacity [38][41] Business Line Data and Key Metrics Changes - In the media segment, audience share grew to 22.5%, with advertising revenues increasing by 3.7% year over year [10][34] - The telecommunications segment introduced a new multiplay offering, resulting in over 3,000,000 multiplay customers, a significant increase from the previous definition [21][24] - Green energy production increased by over 40% to 314 gigawatt hours in Q2 2025, driven by the expansion of wind production capacity [30][32] Market Data and Key Metrics Changes - The advertising market grew by 3.2% year over year, with the company outperforming this growth [12][14] - The company maintained a stable market share of 28.2% in the advertising market [13] - The B2B segment saw a 4% year-over-year increase in ARPU, reaching nearly PLN 1,550 per month [28] Company Strategy and Development Direction - The company is focused on a long-term strategy aimed at building customer value and driving ARPU growth through its new multiplay offering [4][50] - The completion of the Dzhevo wind farm is expected to double the company's wind capacity, supporting future EBITDA growth [32][51] - The company aims to monetize its investments in green energy and deliver promised EBITDA in upcoming periods [34][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging operating environment, citing strong customer satisfaction and loyalty reflected in a low churn rate of 7.1% [24][34] - The management team highlighted the importance of the new multiplay strategy in driving customer value and maintaining a competitive edge [20][50] - Future interest savings are anticipated due to recent interest rate cuts, although the overall cost of debt service remains high [42][47] Other Important Information - The company secured a bank loan of nearly PLN 1,000,000,000 for the Jejuvo project, indicating strong confidence from financial institutions [7][51] - The company is nearing the completion of its major strategic investment in renewables, with a focus on stable returns moving forward [46][51] Q&A Session Summary Question: What is your view on the planned digital tax? - The company believes regulating digital tax in Poland is necessary for fair competition with global tech companies, but the impact depends on the specific formula of the tax [54] Question: Could you provide an outlook for equipment sales in 2025? - The company anticipates a slight improvement in equipment sales, but does not expect significant increases due to market saturation [55] Question: When is the company expected to reach the peak of its net debt to EBITDA? - The peak is expected around the first quarter of 2025 [57]

Creating Sustainable Solutions TOGETHER Second Quarter 2025 Earnings Presentation August 1, 2025 Agenda Introduction Roger Hendriksen | Director, Investor Relations Second Quarter Summary Jeff Edwards | Chairman and Chief Executive Officer Q & A 2 Financial Overview Jon Banas | Executive VP and Chief Financial Officer Strategic Overview and Outlook Jeff Edwards Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of U.S. federal securities laws, and we intend ...

Cooper-Standard (CPS) Conference Summary Company Overview - Cooper Standard is positioned as a compelling investment opportunity in 2025, having navigated challenges over the past four to five years and emerging in a position of strength [2][3] - The company operates primarily in two product groups: Sealing Systems and Fluid Handling Systems, generating approximately $2.7 billion in total revenue [3][4] Financial Performance - Sealing Systems revenue is approximately $1.4 billion, while Fluid Handling Systems contributes around $1.2 billion [3][4] - The company has maintained a diverse customer base and has a global presence with operations in 21 countries and 21,000 employees [4][5] - Cooper Standard aims to return to double-digit EBITDA margins and double-digit returns on invested capital, with recent guidance increased to $4.25 [8][15] Cost Management and Operational Efficiency - The company has achieved an average of $100 million in cost savings annually since 2019, totaling about $700 million year-to-date [10][11] - Operational improvements include rationalizing the manufacturing footprint, streamlining operations, and renegotiating supplier contracts [11][12] - The gross profit margin has shown an upward trend, with 99% of next year's business already booked [13][14] Product Group Insights Sealing Systems - The Sealing Systems business is the global leader, ensuring vehicle interiors remain protected from external elements [16][18] - The company has secured $300 million in new business awards since 2023, with expectations for continued growth through 2030 [19][20] - Innovations in lightweight and bio-recycled materials are enhancing product offerings and market share [18][19] Fluid Handling Systems - The transition from internal combustion engines (ICE) to hybrid and electric vehicles (EV) presents significant growth opportunities, with content per vehicle increasing by 80% for hybrids and 20% for EVs [22][24][30] - The company anticipates doubling the Fluid Handling business over the next seven years, driven by the powertrain shift [25][35] - Innovations such as Ergoloc and EZ Lock connectors are enhancing system integrity and reducing costs for customers [26][27] Market Position and Competitive Landscape - Cooper Standard is positioned to benefit from the growth of hybrid and electric vehicles, with a strong focus on customer relationships and innovation [41][42] - The company is gaining market share, particularly in China, where it is collaborating with domestic manufacturers [63][64] - The competitive environment is characterized by a focus on solutions that reduce customer costs while increasing Cooper Standard's revenue and margins [71] Challenges and Strategic Outlook - The company faced challenges in passing along costs during the COVID-19 pandemic and supply chain disruptions but has since implemented contractual indexing with customers and suppliers [45][51] - Future financial projections are based on booked business with higher margins, independent of industry volume growth, which is expected to average around 2% annually [53][54] - The management team expresses confidence in achieving financial targets due to robust systems in place for cost control and operational excellence [59][60] Conclusion - Cooper Standard is well-positioned for growth, with a strong focus on innovation, cost management, and expanding its market presence, particularly in the evolving automotive landscape [38][69][80]

Shares of Cooper-Standard Holdings Inc. (CPS) have risen 8.1% since reporting results for the second quarter of 2025. This compares with the S&P 500 index’s 2% decline over the same time frame. Over the past month, the stock has gained 12.2% compared with the S&P 500’s 0.4% growth.Financial Performance: Net Loss Narrows, Profitability Measures ImproveCooper-Standard posted second-quarter 2025 revenues of $706 million, down 0.3% from $708.4 million in the same period last year. The top line beat analyst expe ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part details the company's financial performance, position, and cash flows, along with management's analysis and disclosures on market risk and internal controls [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, show improved profitability despite slightly lower sales, a continued total equity deficit, and negative cash flow from operations [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's unaudited condensed consolidated statements of operations, highlighting a significant improvement in net income for the first six months of 2025 - The company's profitability significantly improved in the first six months of 2025, swinging from a net loss of **$107.9 million** in 2024 to a net income of **$0.15 million**, driven by higher gross profit and lower restructuring charges despite a slight decline in sales[11](index=11&type=chunk) Consolidated Statements of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $705,973 | $708,362 | $1,373,042 | $1,384,787 | | Gross Profit | $93,051 | $82,940 | $170,229 | $144,583 | | Operating Income | $37,279 | $11,146 | $59,543 | $14,629 | | Net (Loss) Income | $(1,473) | $(76,183) | $129 | $(107,491) | | Diluted EPS | $(0.08) | $(4.34) | $0.01 | $(6.16) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the company's unaudited condensed consolidated balance sheets, showing a total equity deficit and a decrease in cash and cash equivalents as of June 30, 2025 - As of June 30, 2025, the company's total liabilities of **$1.93 billion** exceeded its total assets of **$1.82 billion**, resulting in a total equity deficit of **$105.4 million**, while cash and cash equivalents decreased from **$170.0 million** at year-end 2024 to **$121.6 million**[16](index=16&type=chunk) Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $121,620 | $170,035 | | Total current assets | $885,390 | $805,256 | | Total assets | $1,819,711 | $1,733,065 | | Total current liabilities | $633,894 | $576,783 | | Long-term debt | $1,059,454 | $1,057,839 | | Total liabilities | $1,925,093 | $1,866,435 | | Total equity | $(105,382) | $(133,370) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's unaudited condensed consolidated statements of cash flows, indicating increased cash usage from operating activities and reduced capital expenditures for the first half of 2025 - For the six months ended June 30, 2025, the company used **$30.4 million** in cash from operating activities, an increase from the **$26.2 million** used in the same period of 2024, while capital expenditures decreased to **$25.3 million** from **$28.1 million** year-over-year[21](index=21&type=chunk) Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(30,431) | $(26,212) | | Net cash used in investing activities | $(22,757) | $(27,835) | | Net cash used in financing activities | $(4,357) | $(3,493) | | Change in cash, cash equivalents and restricted cash | $(51,126) | $(62,120) | | Cash at end of period | $127,571 | $100,941 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides explanatory notes to the financial statements, covering restructuring plans, debt status, and ongoing tax disputes - In May 2024, the company approved a restructuring plan to eliminate approximately **400 positions**, expected to generate annualized savings of **$40 million to $45 million**, with restructuring charges for the first six months of 2025 at **$5.0 million**, down from **$18.9 million** in the prior-year period[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - The company's total debt remained stable at approximately **$1.1 billion**, and as of June 30, 2025, it had no borrowings under its ABL Facility and **$151.2 million** available for borrowing[48](index=48&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - The company is contesting an IRS Notice of Proposed Adjustment for 2015-2018 tax filings, believing its position will be successful, with a potential tax expense, including interest, of less than **$10 million**[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the slight sales decline in H1 2025 to foreign exchange and mixed vehicle production, while gross profit and operating income improved significantly due to savings and restructuring actions [Executive Overview and Recent Trends](index=26&type=section&id=Executive%20Overview%20and%20Recent%20Trends) This section provides an executive overview and discusses recent trends, including anticipated flat global light vehicle production for 2025 and strategies to mitigate inflationary pressures - The company anticipates global light vehicle production for the full year 2025 to remain **flat** compared to 2024, with expected declines in North America and Europe being offset by growth in China[102](index=102&type=chunk) Light Vehicle Production by Region (in millions of units) | Region | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | North America | 7.7 | 8.1 | (4.1)% | | Europe | 8.8 | 9.1 | (3.3)% | | Asia Pacific | 25.8 | 23.9 | 7.8% | | South America | 1.4 | 1.3 | 8.3% | - The company is actively pursuing pricing adjustments from customers and implementing lean initiatives to mitigate ongoing inflationary pressures on raw materials, labor, and overhead[109](index=109&type=chunk)[110](index=110&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section analyzes the company's results of operations, highlighting improved gross profit and operating income in H1 2025 due to savings and reduced charges, despite volume/mix challenges - Gross profit for H1 2025 increased by **$25.6 million** year-over-year, driven by manufacturing and purchasing savings, restructuring benefits, and favorable foreign exchange, which more than offset unfavorable volume/mix and inflation[128](index=128&type=chunk) - Operating income for H1 2025 rose to **$59.5 million** from **$14.6 million** in H1 2024, benefiting from a **$14.0 million** decrease in restructuring charges and the absence of the prior year's **$46.8 million** pension settlement charge[111](index=111&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - Other income for H1 2025 included **$10.3 million** from royalty settlements, contributing significantly to the year-over-year improvement[132](index=132&type=chunk) [Segment Results of Operations](index=31&type=section&id=Segment%20Results%20of%20Operations) This section provides a breakdown of financial results by segment, showing increased Adjusted EBITDA for both Sealing Systems and Fluid Handling Systems in H1 2025 Segment Adjusted EBITDA - Six Months Ended June 30 (in thousands) | Segment | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Sealing Systems | $72,657 | $56,406 | $16,251 | | Fluid Handling Systems | $47,979 | $27,264 | $20,715 | - The Sealing Systems segment's adjusted EBITDA for H1 2025 increased by **$16.3 million**, primarily due to **$24.7 million** in manufacturing and purchasing savings, which offset unfavorable volume/mix and foreign exchange[148](index=148&type=chunk) - The Fluid Handling Systems segment's adjusted EBITDA for H1 2025 grew by **$20.7 million**, largely driven by a **$13.5 million** favorable foreign exchange impact from the Mexican Peso and **$15.8 million** in manufacturing and purchasing savings[149](index=149&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity and capital resources, outlining primary funding sources, cash flow from operations, anticipated capital expenditures, and remaining share repurchase authorization - Primary sources of liquidity are cash from operations, cash on hand, the ABL Facility, and receivables factoring, which management believes are sufficient to meet funding requirements for the foreseeable future[150](index=150&type=chunk)[152](index=152&type=chunk) - Net cash used in operations was **$30.4 million** for H1 2025, a slight increase from **$26.2 million** in H1 2024, mainly due to working capital changes and higher cash interest payments[153](index=153&type=chunk) - The company anticipates capital expenditures for the full year 2025 to be between **$45 million and $55 million**[154](index=154&type=chunk) - As of June 30, 2025, the company had approximately **$98.7 million** of authorization remaining under its share repurchase program, with no shares repurchased under the program during the first half of 2025 or 2024[156](index=156&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) This section provides a reconciliation of non-GAAP financial measures, specifically detailing the calculation of Adjusted EBITDA from net (loss) income Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net (loss) income attributable to Cooper-Standard | $(1,401) | $(76,243) | $151 | $(107,903) | | EBITDA | $59,913 | $(13,655) | $116,615 | $14,560 | | Restructuring charges | $2,852 | $17,781 | $4,963 | $18,914 | | Pension settlement charge | — | $46,787 | — | $46,787 | | **Adjusted EBITDA** | **$62,765** | **$50,913** | **$121,480** | **$80,261** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its quantitative and qualitative disclosures about market risk from those disclosed in its 2024 Annual Report - There have been no material changes to the company's market risk disclosures since the 2024 Annual Report[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the reporting period[171](index=171&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to affect, the company's internal control over financial reporting[172](index=172&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers other information, including risk factors, equity security sales, other disclosures, and a list of exhibits filed with the report [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to its risk factors since the filing of its 2024 Annual Report and its Q1 2025 10-Q - No material changes to risk factors have been identified since the filing of the 2024 Annual Report[175](index=175&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a common stock repurchase program with approximately $98.7 million of authorization remaining as of June 30, 2025, with limited shares repurchased for tax withholding purposes - As of June 30, 2025, the company had approximately **$98.7 million** of repurchase authorization remaining under its common stock share repurchase program[176](index=176&type=chunk) Share Repurchases - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 330 | $24.30 | | June 2025 | — | $— | | **Total** | **330** | | - Shares repurchased during the quarter were to satisfy employee tax withholding requirements and were not part of the publicly announced repurchase plan[177](index=177&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, none of the company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[178](index=178&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including the amended 2021 Omnibus Incentive Plan, CEO and CFO certifications, and Inline XBRL data files - Key exhibits filed with the report include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and the company's Amended and Restated 2021 Omnibus Incentive Plan[179](index=179&type=chunk)

Cooper-Standard (CPS) Q2 2025 Earnings Call August 01, 2025 09:00 AM ET Company ParticipantsRoger Hendriksen - Director of Investor RelationsJeffrey Edwards - Chairman & CEOJonathan Banas - EVP & CFOKirk Ludtke - Managing DirectorBen Briggs - Director - Leveraged Finance StrategistConference Call ParticipantsMichael Ward - Financial AnalystOperatorGood morning, ladies and gentlemen, and welcome to the Cooper Standard Second Quarter twenty twenty five Earnings Conference Call. During the presentation, all pa ...

Financial Data and Key Metrics Changes - Second quarter 2025 sales were $706 million, a decrease of 0.3% compared to 2024, primarily due to unfavorable volume and mix, including net customer price adjustments, partially offset by favorable foreign exchange [12] - Adjusted EBITDA for the quarter was $62.8 million, an increase of more than 23% compared to $50.9 million in the second quarter of last year, with margin expansion of 170 basis points despite lower sales and production volumes [13] - The company reported a small net loss of $1.4 million in the second quarter compared to a net loss of $76.2 million in 2024, with adjusted net income for 2025 being positive at $1 million or $0.06 per diluted share [13][14] - For the first half of 2025, sales dipped due to unfavorable foreign exchange and slightly lower volume mix, but gross profit margin increased by 200 basis points and adjusted EBITDA margin improved by 300 basis points compared to the same period last year [14][18] Business Line Data and Key Metrics Changes - The sealing business is expected to drive revenue growth of about 6% on average over the next five years, with significant expansion of EBITDA margins and return on capital increasing to approximately 20% by 2030 [25] - The fluid handling business anticipates top-line growth averaging approximately 8% annually over the next five years, with EBITDA margins expected to increase to around 16% and return on invested capital approaching 30% [26] Market Data and Key Metrics Changes - The company was awarded $77 million in net new business awards during 2025, reflecting strong relationships with customers and operational excellence [10] - The company has successfully reached agreements with customers to pass through or recover the majority of direct tariff impacts on its business, allowing for a focus on operational excellence [29] Company Strategy and Development Direction - The company has established four strategic imperatives to drive significant improvements across its business, focusing on operational excellence, cost optimization, and leveraging digital tools for efficiency [21][22] - Long-term strategies for each operating segment have been developed to achieve stated strategic imperatives and enhance value creation over the next several years [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive free cash flow for the full year, supported by solid results in the first half and expectations for production volumes [20] - The company is better positioned than ever to execute its strategic plans and deliver on its commitments, despite ongoing challenges in the industry [27][28] Other Important Information - The company ended the second quarter with a cash balance of approximately $122 million and total liquidity of approximately $273 million, which is deemed sufficient to support business plans and growth objectives [19] - The company is actively evaluating options to strengthen its balance sheet and improve cash flows, with a focus on refinancing its first and third lien notes [20] Q&A Session Summary Question: Clarification on incremental revenue from sealing - The incremental revenue includes $400 million, with $300 million being net new business and the remaining $100 million from modest increases in production or pricing [34][35] Question: Details on fluid business incremental revenue - The fluid business is expected to have $600 million in incremental revenue, with net new business included in the outlook [38][41] Question: Margin expansion and optimization in a tariff environment - The company has a detailed quote process for new business, tracking variable contribution margins and managing pricing closely to ensure real and achievable margins [43][44] Question: Cash restructuring and working capital use - Cash restructuring was less than $10 million, and the company expects working capital use to unwind completely in the second half of the year [62][64] Question: Potential rate reduction from refinancing - The company is optimistic about a potential improvement in rates when refinancing, with expectations of a reduction of 100 to 300 basis points [67][69]

Executive Summary & Highlights [Second Quarter 2025 Consolidated Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Cooper Standard reported strong second quarter 2025 results, exceeding expectations with significant year-over-year improvements in profitability metrics, including gross profit, operating income, and adjusted EBITDA, while substantially reducing net loss | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------- | :------------------ | :------------------ | :---------------- | :--------- | | Sales | $706.0 | $708.4 | $(2.4) | -0.3% | | Net (loss) income | $(1.4) | $(76.2) | $74.8 | 98.2% | | Adjusted net income (loss) | $1.0 | $(11.3) | $12.3 | 108.8% | | (Loss) income per diluted share | $(0.08) | $(4.34) | $4.26 | 98.2% | | Adjusted income (loss) per diluted share | $0.06 | $(0.64) | $0.70 | 109.4% | | Adjusted EBITDA | $62.8 | $50.9 | $11.9 | 23.4% | - Gross profit increased by **12.2% to $93.1 million** compared to Q2 2024[6](index=6&type=chunk) - Operating income surged by **234.5% to $37.3 million** compared to Q2 2024[6](index=6&type=chunk) - Adjusted EBITDA reached **$62.8 million**, representing **8.9% of sales**, an increase of **$11.9 million** year-over-year[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Jeffrey Edwards, Chairman and CEO, highlighted the global team's efforts in exceeding first and second-quarter plans and expressed confidence in the second half's execution to offset lower light vehicle production and inflation, leading to raised full-year adjusted EBITDA guidance - Operating performance and financial results in Q1 and Q2 2025 exceeded the company's plan[4](index=4&type=chunk) - Full year adjusted EBITDA guidance has been raised due to strong execution and expected offsets to lower light vehicle production and inflationary headwinds[4](index=4&type=chunk) Financial Performance Analysis [Consolidated Results](index=1&type=section&id=Consolidated%20Results) Consolidated results for Q2 and H1 2025 showed a slight decline in sales but significant improvements in net income (loss) and adjusted profitability, driven by efficiency gains and reduced special items [Sales and Net Income (Loss)](index=1&type=section&id=Sales%20and%20Net%20%28loss%29%20income) Sales for Q2 2025 slightly decreased by 0.3% due to unfavorable volume and mix, while net loss significantly improved from $76.2 million in Q2 2024 to $1.4 million in Q2 2025, primarily due to lower restructuring charges | Metric | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Sales | $706.0 | $708.4 | $1,373.0 | $1,384.8 | | Net (loss) income | $(1.4) | $(76.2) | $0.2 | $(107.9) | | (Loss) income per diluted share | $(0.08) | $(4.34) | $0.01 | $(6.16) | - Sales declined by **0.3%** in Q2 2025, primarily due to unfavorable volume and mix, including net customer price adjustments, partially offset by foreign exchange[4](index=4&type=chunk) - Net loss for Q2 2025 was **$1.4 million**, a significant improvement from **$76.2 million** in Q2 2024, largely due to reduced restructuring charges (**$2.9 million** vs. **$17.8 million**) and other special items[5](index=5&type=chunk) [Profitability Metrics (Gross Profit, Operating Income, Adjusted EBITDA)](index=1&type=section&id=Profitability%20Metrics) Adjusted net income improved significantly to $1.0 million in Q2 2025 from a loss of $11.3 million in Q2 2024, driven by increased manufacturing and purchasing efficiency and savings from headcount initiatives, despite inflationary pressures | Metric | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | | :--------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Adjusted net income (loss) | $1.0 | $(11.3) | $4.5 | $(41.9) | | Adjusted income (loss) per diluted share | $0.06 | $(0.64) | $0.25 | $(2.39) | | Adjusted EBITDA | $62.8 | $50.9 | $121.5 | $80.3 | - The year-over-year improvement in adjusted net income and adjusted EBITDA was primarily driven by increased manufacturing and purchasing efficiency and savings realized from past headcount initiatives[5](index=5&type=chunk)[7](index=7&type=chunk) - These positive drivers were partially offset by unfavorable volume, mix and price, and ongoing general inflation[5](index=5&type=chunk)[7](index=7&type=chunk) [Segment Results of Operations](index=2&type=section&id=Segment%20Results%20of%20Operations) Both Sealing Systems and Fluid Handling Systems segments experienced slight sales declines in Q2 2025 but demonstrated strong Adjusted EBITDA growth, primarily due to cost reductions and efficiency gains [Sales by Segment](index=2&type=section&id=Sales%20to%20external%20customers) Sales for Sealing Systems and Fluid Handling Systems segments saw minor declines in Q2 2025, mainly attributable to unfavorable volume/mix, with some offset from foreign exchange | Segment | Q2 2025 Sales (Thousands) | Q2 2024 Sales (Thousands) | Change (Thousands) | Variance Due To: Volume/Mix* (Thousands) | Variance Due To: Foreign Exchange (Thousands) | | :-------------------- | :------------------------ | :------------------------ | :----------------- | :--------------------------------------- | :------------------------------------------ | | Sealing systems | $364,368 | $364,946 | $(578) | $(4,243) | $3,665 | | Fluid handling systems | $322,430 | $322,742 | $(312) | $(887) | $575 | * Net of customer price adjustments, including recoveries [Adjusted EBITDA by Segment](index=2&type=section&id=Segment%20EBITDA%20adjusted) Adjusted EBITDA for Sealing Systems increased by $5.3 million and for Fluid Handling Systems by $10.7 million in Q2 2025, largely driven by cost decreases and savings from 2024 restructuring initiatives | Segment | Q2 2025 Adjusted EBITDA (Thousands) | Q2 2024 Adjusted EBITDA (Thousands) | Change (Thousands) | Variance Due To: Volume/Mix* (Thousands) | Variance Due To: Foreign Exchange (Thousands) | Variance Due To: Cost Decreases/(Increases)** (Thousands) | | :-------------------- | :---------------------------------- | :---------------------------------- | :----------------- | :--------------------------------------- | :------------------------------------------ | :------------------------------------------------------- | | Sealing systems | $40,345 | $35,035 | $5,310 | $(7,777) | $(61) | $13,148 | | Fluid handling systems | $26,997 | $16,282 | $10,715 | $(7,689) | $7,300 | $11,104 | * Net of customer price adjustments, including recoveries ** Net of savings from 2024 restructuring initiatives Business Developments [New Business Awards](index=2&type=section&id=New%20Business%20Awards) Cooper Standard secured significant new business awards in Q2 2025, totaling $77.1 million in anticipated future annualized sales, with a year-to-date total of $132.0 million, primarily focused on battery-electric and hybrid vehicle platforms - Net new business awards in Q2 2025 totaled **$77.1 million** in anticipated future annualized sales[9](index=9&type=chunk) - Through the first six months of 2025, the Company received **$132.0 million** in net new business awards, primarily related to battery-electric and hybrid vehicle platforms[9](index=9&type=chunk) Financial Position & Outlook [Cash and Liquidity](index=3&type=section&id=Cash%20and%20Liquidity) As of June 30, 2025, Cooper Standard maintained a healthy liquidity position with $121.6 million in cash and cash equivalents and $272.8 million in total liquidity, which is considered sufficient to support ongoing operations and strategic initiatives | Metric | As of June 30, 2025 (Millions) | | :-------------------------- | :----------------------------- | | Cash and cash equivalents | $121.6 | | Total liquidity | $272.8 | - The Company believes it has sufficient financial resources, including current cash, flexible credit facilities, and expected future positive cash generation, to support operations and strategic initiatives for the foreseeable future[14](index=14&type=chunk) [Full Year 2025 Outlook and Guidance](index=3&type=section&id=Outlook) Cooper Standard has raised its full-year 2025 adjusted EBITDA guidance to $220-$250 million, while maintaining sales guidance, reflecting confidence in operational excellence despite anticipated lower light vehicle production volumes in North America | Metric | Initial 2025 Guidance | Current 2025 Guidance | | :-------------------- | :-------------------- | :-------------------- | | Sales | $2.7 - $2.8 billion | $2.7 - $2.8 billion | | Adjusted EBITDA | $200 - $235 million | $220 - $250 million | | Capital Expenditures | $45 - $55 million | $45 - $55 million | | Cash Restructuring | $20 - $25 million | $20 - $25 million | | Net Cash Interest | $105 - $115 million | $105 - $115 million | | Net Cash Taxes | $30 - $35 million | $25 - $30 million | | Region | Initial 2025 Light Vehicle Production Assumptions (Units) | Current 2025 Light Vehicle Production Assumptions (Units) | | :-------------- | :------------------------------------------------------ | :------------------------------------------------------ | | North America | 15.1 million | 14.9 million | | Europe | 16.6 million | 16.7 million | | Greater China | 30.2 million | 31.2 million | | South America | 3.1 million | 3.2 million | - The Company believes it is well-positioned to manage through potential tariffs and remains confident that successful execution of its plans will drive increasing profit margins over time as markets stabilize, despite trade-related uncertainty[15](index=15&type=chunk) Company Information & Disclosures [About Cooper Standard](index=4&type=section&id=About%20Cooper%20Standard) Cooper Standard is a global leader in sealing and fluid handling systems and components, headquartered in Northville, Michigan, with operations in 20 countries and approximately 22,000 team members - Cooper Standard is a leading global supplier of sealing and fluid handling systems and components, operating in **20 countries**[20](index=20&type=chunk) - The company utilizes materials science and manufacturing expertise to create innovative and sustainable engineered solutions for diverse transportation and industrial markets[20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward%20Looking%20Statements) This section clarifies that the press release contains forward-looking statements, which are based on current expectations and assumptions but are subject to significant risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based upon current expectations and various assumptions, but are not guarantees of future performance and are subject to significant risks and uncertainties[21](index=21&type=chunk) - Key risk factors include volatility of stock price, impacts of global conflicts, ability to offset higher costs, labor disruptions, contractions in automotive sales, pricing pressures, supply chain disruptions, and risks associated with international operations[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted EPS, free cash flow, and net new business, explaining their use by management and investors for evaluating operating performance, while emphasizing they are not substitutes for GAAP measures - Non-GAAP measures like EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted EPS, free cash flow, and net new business are used by management and investors as key indicators of operating performance[30](index=30&type=chunk) - These measures exclude certain non-cash and special items to provide insight into core financial activities but should be used as supplements to, not alternatives for, U.S. GAAP measures[30](index=30&type=chunk)[31](index=31&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The unaudited condensed consolidated statements of operations present the company's revenues, costs, and profitability for the three and six months ended June 30, 2025 and 2024, showing a significant reduction in net loss year-over-year | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | H1 2025 (Thousands) | H1 2024 (Thousands) | | :------------------------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Sales | $705,973 | $708,362 | $1,373,042 | $1,384,787 | | Gross profit | $93,051 | $82,940 | $170,229 | $144,583 | | Operating income | $37,279 | $11,146 | $59,543 | $14,629 | | Net (loss) income attributable to Cooper-Standard Holdings Inc. | $(1,401) | $(76,243) | $151 | $(107,903) | | Diluted (Loss) income per share | $(0.08) | $(4.34) | $0.01 | $(6.16) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The unaudited condensed consolidated balance sheets provide a snapshot of Cooper Standard's financial position as of June 30, 2025, compared to December 31, 2024, detailing assets, liabilities, and equity | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------------- | :-------------------------- | :---------------------------- | | Total current assets | $885,390 | $805,256 | | Total assets | $1,819,711 | $1,733,065 | | Total current liabilities | $633,894 | $576,783 | | Total liabilities | $1,925,093 | $1,866,435 | | Total equity | $(105,382) | $(133,370) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The unaudited condensed consolidated statements of cash flows outline the cash generated or used in operating, investing, and financing activities for the six months ended June 30, 2025 and 2024, showing a decrease in cash and cash equivalents | Metric | H1 2025 (Thousands) | H1 2024 (Thousands) | | :------------------------------------------------ | :------------------ | :------------------ | | Net cash used in operating activities | $(30,431) | $(26,212) | | Net cash used in investing activities | $(22,757) | $(27,835) | | Net cash used in financing activities | $(4,357) | $(3,493) | | Changes in cash, cash equivalents and restricted cash | $(51,126) | $(62,120) | | Cash, cash equivalents and restricted cash at end of period | $127,571 | $100,941 | Reconciliation of Non-GAAP Financial Measures [EBITDA and Adjusted EBITDA Reconciliation](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) This section provides a reconciliation of net (loss) income to EBITDA and Adjusted EBITDA for Q2 and H1 2025 and 2024, detailing adjustments for restructuring charges, gain on sale of businesses, and pension settlement charges | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | H1 2025 (Thousands) | H1 2024 (Thousands) | | :------------------------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Net (loss) income attributable to Cooper Standard Holdings Inc. | $(1,401) | $(76,243) | $151 | $(107,903) | | EBITDA | $59,913 | $(13,655) | $116,615 | $14,560 | | Adjusted EBITDA | $62,765 | $50,913 | $121,480 | $80,261 | | Adjusted EBITDA margin | 8.9% | 7.2% | 8.8% | 5.8% | [Adjusted Net Income (Loss) and Adjusted EPS Reconciliation](index=12&type=section&id=Adjusted%20Net%20Income%20%28Loss%29%20and%20Adjusted%20Net%20Income%20%28Loss%29%20Per%20Share) This reconciliation details the adjustments made to net (loss) income to arrive at adjusted net income (loss) and adjusted earnings (loss) per share for Q2 and H1 2025 and 2024, including the tax impact of these adjustments | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | H1 2025 (Thousands) | H1 2024 (Thousands) | | :------------------------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Net (loss) income attributable to Cooper-Standard Holdings Inc. | $(1,401) | $(76,243) | $151 | $(107,903) | | Adjusted net income (loss) | $1,023 | $(11,277) | $4,477 | $(41,879) | | Diluted (Loss) income per share | $(0.08) | $(4.34) | $0.01 | $(6.16) | | Adjusted income (loss) per share (Diluted) | $0.06 | $(0.64) | $0.25 | $(2.39) | [Free Cash Flow Reconciliation](index=12&type=section&id=Free%20Cash%20Flow) This section defines and reconciles free cash flow, showing net cash used in operating activities minus capital expenditures for the three and six months ended June 30, 2025 and 2024 | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | H1 2025 (Thousands) | H1 2024 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Net cash used in operating activities | $(15,580) | $(12,013) | $(30,431) | $(26,212) | | Capital expenditures | $(7,772) | $(11,243) | $(25,315) | $(28,077) | | Free cash flow | $(23,352) | $(23,256) | $(55,746) | $(54,289) |