Financial Results Announcement - Cooper-Standard Holdings Inc. is set to release its financial results for the second quarter of 2025 on July 31 after market close [1] - The earnings results will be available on the Cooper Standard website once released [1] Conference Call Details - A conference call will be held on August 1 at 9 a.m. ET, featuring Chairman and CEO Jeffrey Edwards and CFO Jonathan Banas [2] - The call will cover financial results, a general business update, and a Q&A session for investors [2] - Participants can join the call via a toll-free number for the U.S. and Canada or an international number [3] Webcast and Replay - A replay of the conference call will be accessible on the investors' section of the Cooper Standard website shortly after the live event [4] Company Overview - Cooper Standard is headquartered in Northville, Michigan, and operates in 20 countries as a leading global supplier of sealing and fluid handling systems [5] - The company employs approximately 22,000 team members, including contingent workers, focusing on innovative and sustainable engineered solutions for various markets [5]

Core Viewpoint - Canadian Premium Sand Inc. is advancing its solar glass manufacturing plans, focusing on a US facility that aims to produce 4GW of solar glass annually while also navigating challenges related to trade policies and tariffs affecting its Canadian project [1][2][7]. US Project - The US Project involves a proposed solar glass manufacturing facility expected to produce 4GW of pattern solar glass annually [2]. - A Letter of Intent has been signed for a 12-year lease of a property with existing infrastructure, which will facilitate a capital-efficient market entry [3]. - The site aligns with US federal goals to reshore manufacturing and has secured MOUs for approximately 50% of its production capacity [4]. - The capital cost for the US Project is estimated at around US$350 million, with pre-construction engineering efforts underway [5]. Selkirk Project - The Selkirk Project in Manitoba aims to establish a vertically integrated solar glass manufacturing facility, but faces financing challenges due to US import tariffs on Canadian goods [7]. - The stability of the Canada-US trade relationship is crucial for advancing the Selkirk Project [7]. Policy Changes Impacting the North American Solar Market - Proposed amendments to the Inflation Reduction Act could eliminate domestic content bonuses, affecting the pricing competitiveness of US-made solar glass [8]. - New regulations targeting Prohibited Foreign Entities may significantly impact the import of solar glass from Asia-Pacific, potentially enhancing the commercial viability of North American production [9]. Company Overview - Canadian Premium Sand Inc. owns a large silica sand deposit and is developing manufacturing capacity for ultra-high-clarity pattern solar glass, with a combined capacity of 10GW across its US and Canadian facilities [11][12].

Group 1 - Cooper-Standard's stock surged 44% on May 2 following the announcement of Q1 2025 results [1] - The reported EPS of $0.09 significantly exceeded the expected EPS of -$1.14, primarily due to a royalty payment [1] Group 2 - The company is focused on identifying firms with high potential for revenue and earnings growth that are not fully reflected in current market prices [1] - The investment strategy emphasizes long-term holdings, with a preference for less cyclical and higher growth sectors [1]

Core Insights - Cooper Standard was recognized as a 2024 Ford Supplier of the Year in the Crisis Management category for its effective response to Hurricane Helene [1][3] - The award reflects Cooper Standard's commitment to operational excellence and strong customer partnerships [4] Company Response to Crisis - The Spartanburg team initiated emergency protocols immediately after Hurricane Helene struck in late September 2024, establishing a command center and prioritizing communication with team members and customers [2] - Despite facing significant damage in the surrounding area, the team safely resumed production to ensure uninterrupted customer supply, with safety as the top priority [2] Recognition and Awards - Ford's Supplier of the Year awards honor companies demonstrating exceptional performance and commitment, particularly in navigating unexpected disruptions [3] - The Crisis Management category specifically recognizes suppliers for outstanding leadership and operational excellence during crises [3] Company Overview - Cooper Standard is a leading global supplier of sealing and fluid handling systems, headquartered in Northville, Michigan, with operations in 20 countries [4] - The company employs approximately 22,000 team members and focuses on innovative and sustainable engineered solutions for various markets [4]

Core Insights - Shannon B. Quinn, president of Cooper Standard's Industrial & Specialty Group, has been recognized as one of Automotive News' 100 Leading Women in the North American Auto Industry for 2025 [1][2] - This recognition highlights the significant influence and leadership of female executives in the automotive sector, with the list being published every five years since 2000 [2][6] Company Overview - Cooper Standard is a leading global supplier of sealing and fluid handling systems and components, headquartered in Northville, Michigan, with operations in 20 countries [8] - The company employs approximately 22,000 team members, including contingent workers, and focuses on innovative and sustainable engineered solutions for diverse transportation and industrial markets [8] Leadership and Contributions - Jeffrey Edwards, chairman and CEO of Cooper Standard, praised Quinn for her visionary leadership and commitment to excellence, emphasizing her role in shaping the future of the automotive industry [3] - Quinn has over 25 years of experience in various functions and product areas, and she is currently advancing Cooper Standard's diversification strategy to enhance growth and value [3][4] - She has held several executive positions in leading automotive companies, including Bridgestone Corp, Adient, Johnson Controls, and Ford [4] Recognition Process - The 2025 class of Automotive News' 100 Leading Women was selected through a months-long nomination and judging process, attracting hundreds of entries from the U.S., Canada, and Mexico [7]

Core Insights - Cooper Standard released its 2024 Corporate Responsibility Report titled "Transformation: Change is Constant," highlighting its commitment to ethical practices, environmental stewardship, philanthropy, and financial strength [1] - The report includes a commitment to develop near-term science-based targets for achieving carbon neutrality by 2040 in Europe and by 2050 globally [1] Sustainability and Corporate Strategy - The company emphasizes the need for agility and adaptability to meet regulatory standards and customer requirements, reflecting on a transformation over the past five years to enhance competitiveness while focusing on sustainability [2] - In 2024, Cooper Standard conducted its first double materiality assessment aligned with the European Union's Corporate Sustainability Reporting Directive, partnering with a third party to evaluate impact, risk, and opportunity statements [2] Key Priorities in Corporate Responsibility - The 2024 report outlines priorities including energy management, greenhouse gas emissions, climate change adaptation, product lifecycle, workforce engagement, human rights, business ethics, and customer satisfaction [3] - The company aims to benchmark against peers and exceed industry standards, detailing measurable progress in addressing stakeholder needs through transparent strategies [4] Company Overview - Cooper Standard is a leading global supplier of sealing and fluid handling systems, headquartered in Northville, Michigan, with operations in 20 countries and approximately 22,000 team members [5]

Core Insights - Cooper-Standard Holdings Inc. has experienced a significant stock price increase of 43.8% since reporting first-quarter 2025 results, outperforming the S&P 500 index's 1.5% rise, with a remarkable 77% gain over the past month compared to the S&P 500's 12.4% increase [1] Revenue & Earnings - For the quarter ended March 31, 2025, Cooper-Standard reported revenues of $667.1 million, a decrease of 1.4% from $676.4 million a year earlier, primarily due to unfavorable foreign currency exchange rates [2] - The company achieved a net income of $1.6 million, reversing a net loss of $31.7 million from the previous year, with adjusted net income at $3.5 million or 19 cents per diluted share, compared to an adjusted loss of $30.6 million or $1.75 per diluted share last year [2] Profitability Metrics - Gross profit increased to $77.2 million from $61.6 million, raising the margin from 9.1% to 11.6% [3] - Adjusted EBITDA rose to $58.7 million from $29.3 million, increasing the margin from 4.3% to 8.8%, driven by cost efficiencies and restructuring savings [3] Operational Performance - Cooper-Standard achieved a 99% green quality scorecard and a 97% green scorecard for customer service, with 47 plants recording a perfect safety record [4] - Lean manufacturing and purchasing initiatives resulted in $20 million in savings, while restructuring activities contributed an additional $8 million in cost reductions [4] Business Development - The company secured $55 million in net new business awards during the quarter, validating its value proposition across various vehicle platforms [5] Leadership Insights - CEO Jeff Edwards highlighted the quarter as one of the best in terms of operations and customer service, attributing improvements to the alignment around four strategic imperatives [6] - CFO Jon Banas noted improved profitability despite inflationary pressures and consistent cash usage in operations, with capital expenditure of $17.5 million focused on new customer programs [7] Factors Influencing Results - The revenue decline was largely due to a $15 million impact from foreign exchange, partially offset by a favorable $6 million volume and mix shift [8] - EBITDA gains were driven by $20 million in lean savings, $8 million from restructuring, and additional benefits from lower SG&A and favorable FX impacts [8] Financial Position - Cooper-Standard ended the quarter with $140 million in cash and $160 million in undrawn ABL availability, with a net leverage ratio of 4.6X, targeting a reduction below 2X by 2027 [9] Guidance & Outlook - Management reaffirmed expectations for double-digit adjusted EBITDA margins and improving cash flow, while acknowledging potential macro uncertainties related to tariffs and trade policies [10][11] - The company anticipates strong tailwinds from increasing hybrid vehicle production, estimating an 80% surge in content per vehicle opportunity in this segment [12] Product Development - The ongoing commercialization of the eCoFlow Switch Pump, designed for hybrid and electric vehicle thermal management systems, is expected to support long-term growth as production ramps up [13] Summary - Cooper-Standard's first-quarter 2025 results indicate a significant turnaround in profitability and operational execution, supported by lean initiatives, innovation, and trends in hybrid vehicle growth [14]

PART I. FINANCIAL INFORMATION This section outlines the unaudited financial statements, management's analysis, market risk, and internal controls for Q1 2025 [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 net income of $1.6 million reverses a $31.3 million loss in Q1 2024, due to improved gross profit Financial Performance | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $667.1M | $676.4M | | Gross Profit | $77.2M | $61.6M | | Operating Income | $22.3M | $3.5M | | Net Income (Loss) | $1.6M | ($31.3M) | | Diluted EPS | $0.09 | ($1.81) | Balance Sheet Overview | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $140.4M | $170.0M | | Total Assets | $1,800.1M | $1,733.1M | | Total Debt | $1,101.0M | $1,100.3M | | Total Liabilities | $1,922.4M | $1,866.4M | | Total Equity | ($122.3M) | ($133.4M) | Cash Flow Summary | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($14.9M) | ($14.2M) | | Net Cash Used in Investing Activities | ($15.2M) | ($16.7M) | | Net Cash Used in Financing Activities | ($2.5M) | ($1.2M) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue, restructuring, debt compliance, and significant royalty settlement income Revenue Breakdown (Q1 2025) | Revenue Breakdown (Q1 2025) | Amount (in thousands) | | :--- | :--- | | **By Segment** | | | Sealing Systems | $344,311 | | Fluid Handling Systems | $303,998 | | **By Region** | | | North America | $375,098 | | Europe | $148,400 | | Asia Pacific | $96,673 | - A May 2024 restructuring plan eliminated approximately **400 positions** and is anticipated to generate annualized savings of **$40,000 to $45,000**[39](index=39&type=chunk)[40](index=40&type=chunk) - Restructuring charges for Q1 2025 were **$2.1 million**[42](index=42&type=chunk) - Total debt as of March 31, 2025, was approximately **$1.1 billion**, consisting mainly of **First Lien Notes ($611.6 million)** and **Third Lien Notes ($388.5 million)**[46](index=46&type=chunk) - The company was in **compliance with all debt covenants**[57](index=57&type=chunk) - Other income for Q1 2025 was **$8.9 million**, which included **$10.0 million** related to royalty settlements from intellectual property licensed to a buyer of a previously divested business[76](index=76&type=chunk)[115](index=115&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights challenging economic outlook, improved gross profit, doubled Adjusted EBITDA, and sufficient liquidity - The company expects global light vehicle production in 2025 to be approximately **2% lower** than in 2024, citing economic risks, high interest rates, and uncertainty around U.S. trade policy[95](index=95&type=chunk)[102](index=102&type=chunk) - Gross profit margin improved to **11.6% in Q1 2025** from **9.1% in Q1 2024**[108](index=108&type=chunk) - This improvement was driven by manufacturing and purchasing savings from lean initiatives and restructuring, which more than offset inflationary pressures[112](index=112&type=chunk) Segment Adjusted EBITDA | Segment Adjusted EBITDA | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Sealing systems | $32.3M | $21.4M | +$10.9M | | Fluid handling systems | $21.0M | $11.0M | +$10.0M | | **Total Consolidated Adjusted EBITDA** | **$58.7M** | **$29.3M** | **+$29.4M** | - As of March 31, 2025, the company had **$159.7 million** available for borrowing under its ABL Facility[55](index=55&type=chunk) - The company believes its liquidity is sufficient to meet its requirements for the foreseeable future[128](index=128&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes were reported in the company's market risk disclosures since the 2024 Annual Report - There have been **no material changes** to the company's market risk disclosures since the 2024 Annual Report[145](index=145&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of March 31, 2025[146](index=146&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to affect, the company's internal control[147](index=147&type=chunk) PART II. OTHER INFORMATION This section addresses new risk factors related to trade policies and details share repurchase activities [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights the adverse impact of changes in U.S. or foreign trade policies, including tariffs - A new risk factor was added regarding changes in U.S. or foreign trade policies, including tariffs and trade restrictions[150](index=150&type=chunk) - Tariffs imposed by the U.S. and retaliatory tariffs from other countries, like China, could **increase product costs**, **decrease demand**, and **disrupt the supply chain**[152](index=152&type=chunk) - The company warns that it may not be able to fully mitigate the adverse effects of prolonged tariffs or trade disputes[152](index=152&type=chunk)[153](index=153&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the public program in Q1 2025; 116,037 shares were repurchased for employee tax withholding - No shares were repurchased under the common stock repurchase program during Q1 2025[154](index=154&type=chunk)[155](index=155&type=chunk) - As of March 31, 2025, approximately **$98.7 million** of repurchase authorization remained under the program[154](index=154&type=chunk) - A total of **116,037 shares** were repurchased during the quarter to satisfy employee tax withholding requirements upon the vesting of restricted stock awards, separate from the public repurchase program[155](index=155&type=chunk)

Financial Data and Key Metrics Changes - First quarter 2025 sales were $667.1 million, a slight decrease of 1.4% compared to the first quarter of 2024, primarily due to unfavorable foreign exchange [14] - Adjusted EBITDA for the quarter was $58.7 million, compared to $29.3 million in the first quarter of last year, driven by lean initiatives and restructuring savings [15] - Net income for the first quarter of 2025 was $1.6 million, a significant improvement from a net loss of $31.7 million in the first quarter of 2024 [16] Business Line Data and Key Metrics Changes - The company achieved $20 million in savings through lean initiatives and $8 million from restructuring efforts in the first quarter [8][9] - The company awarded $55 million in net new business during the first quarter, indicating strong demand for its products [9] Market Data and Key Metrics Changes - The global production forecast for hybrid vehicles has increased significantly, with expectations raised by nearly 4 million units for 2030 and nearly 7 million units for 2035 [24] - The hybrid vehicle trend is expected to drive higher average content per vehicle, benefiting the company's fluid business [25] Company Strategy and Development Direction - The company is focused on four key strategic imperatives aimed at improving operational efficiency and profitability, with a goal to return to double-digit adjusted EBITDA margins [20][21] - Sustainable technologies are a priority, with efforts to reduce weight and improve vehicle efficiency, aligning with customer demands for hybrid and electric vehicles [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage tariff impacts and recover costs, indicating robust systems in place for analysis [28][37] - The company remains optimistic about maintaining margins and profitability, with expectations for further growth as new programs and products are launched [30] Other Important Information - The company was recognized as GM Supplier of the Year for the eighth consecutive year, reflecting strong customer relationships and operational performance [10] - The company aims to achieve carbon neutrality by 2040 in Europe and by 2050 globally, highlighting its commitment to sustainability [13] Q&A Session Summary Question: Is the $2 million in duties and tariffs a timing issue? - Yes, it was a minor impact due to uncertainty about the implementation date, and the company expects to recover these costs [35][36] Question: Is the trajectory of hybrids coming at the expense of electric vehicles? - Consumers seem to prefer hybrids over ICE and EVs, leading to increased content per vehicle for hybrids [40][41] Question: Is the company withdrawing guidance? - No, the company is not withdrawing guidance and expects to have a clearer view by the end of the second quarter [42][43] Question: What are the key assumptions for reaching a net leverage ratio of around two turns by the end of 2027? - The assumptions include no refinancing activity, normalization of volume production, and continued execution of profitable growth initiatives [72] Question: Is the guidance still for adjusted EBITDA at the low and high end of February? - Yes, the guidance remains unchanged [75]

Financial Data and Key Metrics Changes - First quarter 2025 sales were $667.1 million, a slight decrease of 1.4% compared to the first quarter of 2024, primarily due to unfavorable foreign exchange [13][14] - Adjusted EBITDA for the quarter was $58.7 million, compared to $29.3 million in the first quarter of last year, driven by lean initiatives and restructuring savings [14][17] - Net income for the first quarter of 2025 was $1.6 million, compared to a net loss of $31.7 million in the first quarter of 2024 [15] - Capital expenditures totaled $17.5 million, or 2.6% of sales, consistent with the previous year [15] Business Line Data and Key Metrics Changes - The company achieved $20 million in savings through lean initiatives and $8 million from restructuring initiatives in the first quarter [7][8] - The company awarded $55 million in net new business during the first quarter, indicating strong customer demand for new technologies [8][9] Market Data and Key Metrics Changes - The global production forecast for hybrid vehicles has significantly increased, with expectations raised by nearly 4 million units for 2030 and nearly 7 million units for 2035 [23][24] - The hybrid vehicle trend is expected to drive higher average content per vehicle, benefiting the company's fluid business [24][26] Company Strategy and Development Direction - The company is focused on driving profitable growth through sustainable technologies that enhance vehicle efficiency and reduce carbon footprint [22] - The strategic imperatives include innovation, operational efficiency, and corporate responsibility, aiming for double-digit adjusted EBITDA margins and returns on invested capital [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating the impact of tariffs and expects to recover the majority of costs associated with them [28][37] - The company anticipates that clarity around trade policies will improve by the end of the second quarter, allowing for a more meaningful update on full-year guidance [29] - Management remains optimistic about the ability to adapt to market conditions and expects continued support from customers [30][60] Other Important Information - The company was recognized as GM Supplier of the Year for the eighth consecutive year, reflecting its commitment to customer value [9] - The company aims to achieve carbon neutrality in Europe by 2040 and globally by 2050, highlighting its commitment to sustainability [12] Q&A Session Summary Question: Is the $2 million in duties and tariffs a timing issue? - Yes, it was a minor impact due to uncertainty about the implementation date, and the company expects to recover these costs [35][36] Question: Is the trajectory of hybrids coming at the expense of electric vehicles? - The increase in hybrid production is driven by consumer preference, and hybrids offer greater content opportunities for the company [40][41] Question: Is the company withdrawing guidance? - No, the company is maintaining its guidance and will provide updates after the second quarter [43][44] Question: What are the key assumptions for achieving a net leverage ratio of around two turns by the end of 2027? - The assumptions include normalized volume production, continued execution of cost reduction initiatives, and profitable growth [72][74]