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]