Cooper-Standard Q4 Earnings Call Highlights

Core Insights - Cooper-Standard reported fourth-quarter 2025 sales of $672 million, a 1.8% increase from the previous year, driven by favorable foreign exchange effects that offset production volume reductions due to customer supply chain disruptions [1][8] - The company achieved its best operational performance in history in 2025, with significant improvements in safety, quality, and cost efficiency despite late-year production disruptions [3][6] Financial Performance - Fourth-quarter adjusted EBITDA decreased to $34.9 million (5.2% of sales) from $54.3 million (8.2% of sales) due to customer production disruptions and inflationary pressures [5][6] - For the full year 2025, sales totaled $2.74 billion, up 0.4% from 2024, with adjusted EBITDA rising to $209.7 million from $180.7 million in 2024 [8][9] - GAAP net loss improved to $4.2 million from a loss of $78.7 million in 2024, while adjusted net loss was $30.9 million, or $1.73 per diluted share [10][7] Cost Management and Efficiency - The company generated $64 million in savings from plant efficiency improvements and lean supply-chain initiatives, alongside an additional $18 million from salaried reductions [2][6] - Operating income improved by 24% year-over-year, despite facing inflationary headwinds and production disruptions [2][6] Future Outlook - Management anticipates approximately 3% sales growth and aims for a double-digit EBITDA margin in 2026, supported by $298 million in net new business, primarily related to electric and battery platforms [4][15] - The company expects revenue from Chinese OEMs to exceed 60% of its China revenue by 2030, with a projected compound annual growth rate of over 15% from 2025 to 2028 [17][16] Business Development - Cooper-Standard reported $298 million in net new business awards in 2025, with 74% related to value-add innovation and battery platforms [16][17] - The company has identified over 90% of its cost improvement commitments for 2026, marking the highest level in a decade [18] Operational Highlights - The company achieved a safety incident rate of 0.24 per 200,000 hours worked, below the world-class benchmark of 0.47, with 31 plants finishing the year with zero reportable incidents [2][6] - The top 10 programs for 2026 are expected to represent about 45% of planned revenue, with seven of those programs offering multiple powertrain options to mitigate risks [19]