Cooper Standard(US:CPS)2025-10-31 20:06Financial Performance - In the three months ended September 30, 2025, total sales increased by 1.5% to $695.5 million compared to $685.4 million in the same period of 2024[118]. - Gross profit for the three months ended September 30, 2025, rose by $10.8 million to $87.1 million, with a gross profit margin of 12.5%, up from 11.1% in 2024[122][119]. - For the nine months ended September 30, 2025, total sales were $2,068,544 thousand, a decrease of 0.1% compared to $2,070,140 thousand for the same period in 2024[128]. - Gross profit for the nine months ended September 30, 2025 increased by $36.5 million to $220,895 thousand, driven by manufacturing and purchasing savings[134]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $174.7 million, compared to $126.4 million for the same period in 2024, reflecting improved operating performance[168]. Cost Management - The cost of products sold decreased slightly by $0.7 million to $608.4 million, primarily due to manufacturing and purchasing savings, despite inflationary pressures[121]. - Selling, administration, and engineering expenses increased to $55.4 million, representing 8.0% of sales, up from 7.3% in the prior year, largely due to higher stock-based compensation[123]. - Restructuring charges for the three months ended September 30, 2025, increased by $2.0 million, primarily due to higher employee severance costs in the Sealing Systems segment[124]. - Restructuring charges for the nine months ended September 30, 2025 decreased by $11.9 million compared to the same period in 2024, due to a cost optimization restructuring plan[136]. Production and Market Trends - Light vehicle production in North America for the three months ended September 30, 2025, was 3.9 million units, a 4.7% increase from 3.8 million units in 2024[112]. - Global light vehicle production is projected to increase by approximately 2% in 2025 compared to 2024, driven by growth in China, South America, and South Asia[113]. - The company anticipates that production in North America and Europe will decline, offset by increases in other regions[113]. Cash Flow and Investments - Net cash provided by operations increased to $8.2 million for the nine months ended September 30, 2025, compared to $1.6 million for the same period in 2024, primarily due to higher net cash earnings year-over-year[157]. - Net cash used in investing activities decreased to $33.9 million for the nine months ended September 30, 2025, from $38.7 million in 2024, attributed to proceeds from divestiture and lower capital expenditures[158]. - Capital expenditures were $36.5 million for the nine months ended September 30, 2025, down from $39.0 million in 2024, with expectations of total capital expenditures between $45 million and $55 million in 2025[158]. - Net cash used in financing activities totaled $3.8 million for the nine months ended September 30, 2025, compared to $6.8 million in 2024, mainly due to a decrease in principal payments on outstanding debt[159]. Other Financial Metrics - Other income, net for the nine months ended September 30, 2025 increased by $17.0 million, primarily from royalty settlements and lower foreign currency losses[138]. - Income tax expense for the nine months ended September 30, 2025 was $14.6 million on earnings before income taxes of $7.2 million, compared to $15.1 million on losses before income taxes of $103.3 million in 2024[139]. - Sealing Systems sales for the nine months ended September 30, 2025 were $1,057,457 thousand, a decrease of $12,133 thousand from $1,069,590 thousand in 2024[147]. - Fluid Handling Systems sales for the nine months ended September 30, 2025 were $954,994 thousand, an increase of $12,998 thousand from $941,996 thousand in 2024[147]. - Segment adjusted EBITDA for Sealing Systems increased by $17.2 million to $103,510 thousand for the nine months ended September 30, 2025[150]. - Segment adjusted EBITDA for Fluid Handling Systems increased by $26.7 million to $77,008 thousand for the nine months ended September 30, 2025[150]. - Liveline Technologies, Inc. incurred a net loss of $1.4 million for the nine months ended September 30, 2025, an improvement from a net loss of $1.7 million in 2024[162]. Strategic Outlook - The company is actively pursuing pricing adjustments to mitigate inflationary cost pressures and has implemented lean and cost optimization initiatives[115]. - The economic outlook for the U.S. projects a growth rate of 2.0% in 2025, with consumer confidence remaining subdued due to high interest rates and inflation[107]. - The company expects to maintain disciplined capital spending and is actively managing liquidity in light of industry and economic factors[156]. - Forward-looking statements indicate potential risks including volatility in automotive sales and production volumes, and impacts from global economic conditions[171]. - As of September 30, 2025, approximately $98.7 million of repurchase authorization remained under the common stock repurchase program initiated in June 2018[160]. - The company has not made any repurchases under the stock repurchase program during the nine months ended September 30, 2025, or 2024[160].