ewsba.se
Interested in Cooper-Standard Holdings Inc.? Here are five stocks we like better.
Cooper-Standard’s Q1 sales rose 2.9% to $686.4 million, with gross margin improving to 12.0% despite production headwinds and inflation. Adjusted EBITDA fell to $51 million mainly because last year included about $10 million in royalty payments that did not recur.
The company said it is well positioned to meet or exceed full-year targets, backed by $128 million in net new business awards in the first quarter and ongoing cost savings. Management remains confident in its goal to more than double the Fluid Handling business over the next five to seven years.
Liquidity improved after refinancing, with about $286 million available at quarter-end and annual cash interest expected to drop by roughly $6 million. The refinancing also extended note maturities to 2031, giving the company more financial flexibility.
Cooper-Standard (NYSE:CPS) reported higher first-quarter sales and improved gross margin, while management said the auto supplier remains on track to meet or exceed its full-year targets despite production headwinds, inflationary pressures and broader geopolitical uncertainty.
Chairman and Chief Executive Officer Jeff Edwards said the company began 2026 with operational performance consistent with 2025, including 99% green customer scorecards for quality and service and 97% green scorecards for new program launches. He also highlighted safety performance, saying Cooper-Standard recorded a total incident rate of 0.18 reportable incidents per 200,000 hours worked during the quarter, below what the company described as a world-class benchmark of 0.35.
→ Light Speed Returns: Corning Cashes In on NVIDIA Growth
“Our plant managers and our plant employees continued to deliver outstanding performance and value for our customers through their dedication and commitment to excellence,” Edwards said.
Executive Vice President and Chief Financial Officer John Banas said first-quarter 2026 sales were $686.4 million, up 2.9% from the first quarter of 2025. The increase was driven primarily by favorable foreign exchange, partially offset by unfavorable volume and mix net of customer recoveries.
→ Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking
Gross margin improved 40 basis points from the prior-year period to 12.0% of sales. Banas called the margin improvement “a strong result” given production volume headwinds on certain key platforms in North America.
Adjusted EBITDA was $51 million, compared with $58.7 million a year earlier. Banas said the year-over-year decline was primarily due to the non-recurrence of about $10 million in royalty payments received in the first quarter of 2025. Excluding that comparison, he said adjusted EBITDA and margin would have improved from the prior year.
→ Wells Fargo’s Comeback Is Real—But Not Risk-Free
On a GAAP basis, Cooper-Standard reported a net loss of $33.3 million, compared with net income of $1.6 million in the first quarter of 2025. Adjusted net loss was $5.2 million, or $0.29 per share, compared with adjusted net income of $3.5 million, or $0.19 per share, in the year-ago quarter.
Capital expenditures were $24 million, or 3.5% of sales, slightly above the prior-year period due to increased launch-related investments. Banas said the company continues to exercise discipline around capital spending while focusing on returns on invested capital.
Management said Cooper-Standard delivered $17 million in savings from lean initiatives and other cost-saving programs during the quarter. Banas said the company also realized $2 million in incremental savings from prior restructuring actions and $1 million of lower selling, general and administrative costs compared with the prior year.
Those benefits were offset by $7 million of unfavorable volume and mix, including customer price adjustments and short-term production disruptions; $7 million of higher wages and general inflation; $2 million of unfavorable foreign exchange; and $12 million of other unfavorable items, mainly the non-recurrence of the royalty payments received in the first quarter of 2025.
During the question-and-answer portion of the call, Banas said the company is “fairly well protected” against higher input costs, including oil and aluminum, through contractual indexes and negotiations with customers. He said more than 70% of the company’s exposure is covered by those mechanisms, though there can be a lag between cost increases and recoveries.
“Just given the timing of oil price ramp up, there wasn’t a significant impact inflationary pressures in Q1, but we certainly expect to see that headwind come in Q2,” Banas said, adding that recoveries would follow the usual sequential cadence.
Cooper-Standard ended the quarter with about $118 million in cash. Banas said the cash balance reflected typical seasonal working capital changes, which the company expects to unwind over the next couple of quarters, as well as $24 million of out-of-period accrued interest paid in connection with refinancing activity.
Including $167 million of availability on its unused asset-based lending facility, Cooper-Standard had total liquidity of about $286 million as of March 31, 2026.
Banas said the refinancing completed on March 4 lowered the company’s overall interest rate and is expected to reduce annual cash interest by about $6 million. He also said the transaction improved financial flexibility and extended the maturity on newly issued notes to 2031.
Edwards said Cooper-Standard received $128 million in net new business awards during the first quarter, ahead of its plan and positioning the company to pursue its full-year goal of more than $400 million in net new awards.
In response to an analyst question, Edwards said approximately 60% of the first-quarter awards were in Fluid Handling and 40% were in Sealing. He said about 50% of the awards were based in North America, with a large percentage also based in China.
Edwards said Fluid Handling is expected to benefit from growth in hybrid vehicle programs, noting that hybrid products can produce more than double the content per vehicle compared with traditional internal combustion engine programs in that business.
“As we go forward and there are continued hybrid products introduced into the market, you’ll continue to see the content per vehicle for Fluid continuing to rise,” Edwards said.
The company reiterated its longer-term target to double its Fluid Handling business within the next five to seven years. Edwards said recent wins and target business opportunities give management confidence that Cooper-Standard is on track to achieve that goal.
Edwards said the company believes it is on track to achieve or exceed the full-year targets outlined in February, with a more formal guidance update expected alongside second-quarter results.
He said Cooper-Standard has increased gross profit margins by 160 basis points over the past two years despite reduced or flat production volumes in its two largest operating regions. He attributed the improvement to cost efficiencies, fixed-cost reductions and the launch of new programs with higher variable contribution margins.
Management also pointed to sustainability-related initiatives, including Cooper-Standard’s FlexiCore thermoplastic body seal technology, which Edwards said was recognized in the 2026 Environment+Energy Leaders Awards. He said the technology replaces a traditional metal carrier with a patented thermoplastic carrier, creating a lightweight, recyclable seal.
Looking ahead, Edwards said the company continues to face industry disruption and macroeconomic uncertainty, but he suggested that some recent headwinds could become tailwinds in the second half of the year if geopolitical conditions improve.
“We are optimistic that certain headwinds we have faced for the past two quarters could turn into tailwinds in the back half of the year,” Edwards said. “Meanwhile, we’re maintaining our focus on delivering value for our customers, optimizing our operations around the world, and successfully executing our strategic plans.”
Cooper-Standard Holding Inc is a global supplier of sealing, fuel and brake delivery, and fluid transfer systems for the automotive industry. The company designs and manufactures engineered rubber, plastic and metal products, including sealing systems for doors, windows and powertrain assemblies, fuel and brake hoses and lines, and fluid transfer components such as coolant, refrigerant and washer fluid systems.
Founded in 1922 and headquartered in Novi, Michigan, Cooper-Standard operates manufacturing facilities and technical centers across North America, Europe, South America and Asia.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
The article "Cooper-Standard Q1 Earnings Call Highlights" was originally published by MarketBeat.
View MarketBeat's top stocks for May 2026.