Cooper-Standard Q2 Earnings Call Highlights

Second-quarter sales increased 2.2% to $721.3 million , but adjusted EBITDA fell to $53.9 million as material inflation, tariffs, wages and other costs outweighed operational savings. The company posted an adjusted net loss of $2.3 million, compared with adjusted net income of $1 million a year earlier. Management expects most incremental material and tariff costs to be recovered in the second half through pricing agreements and negotiations, while maintaining its full-year sales and profitability outlook. Cooper-Standard also generated $16.3 million in free cash flow and ended June with nearly $300 million in liquidity. New business awards totaled $118 million in the quarter and $246 million for the first half, supporting the company’s goal of more than $400 million in 2026 awards. Management highlighted strong momentum in fluid handling, including nearly $40 million in annualized conquest business and growth opportunities tied to hybrid and electric vehicles.

Cooper-Standard NYSE: CPS reported higher second-quarter sales but lower adjusted EBITDA as material inflation, tariffs and other cost pressures outweighed operational savings. Management said it expects commercial recoveries and continued cost actions to improve results in the second half while maintaining its full-year sales and profitability plan. Second-quarter sales rose 2.2% from a year earlier to $721.3 million. Adjusted EBITDA declined to $53.9 million from $62.8 million in the prior-year quarter. The company recorded a GAAP net loss of $18.8 million, compared with a $1.4 million loss a year earlier. After adjusting for restructuring expense net of tax, Cooper-Standard posted an adjusted net loss of $2.3 million, or $0.13 per share, versus adjusted net income of $1 million, or $0.06 per share, in the second quarter of 2025.

The year-over-year decline in adjusted EBITDA reflected higher costs for materials, duties and tariffs, wages, and general inflation. The company cited $10 million of higher material costs involving rubber, metals and resins; $8 million of wage and general-inflation costs; and $8 million of higher duties, tariffs and other costs. Those pressures more than offset $15 million in savings from lean initiatives in purchasing and manufacturing, along with a $2 million benefit from foreign exchange. Sales also benefited from roughly $10 million of favorable foreign exchange and approximately $5 million from favorable volume and mix, net of customer price adjustments and recoveries. Commodity inflation was largely tied to higher oil prices, which averaged about $30 per barrel above levels seen before the Middle East conflict began. Much of the second-quarter commodity impact was a timing issue under the company’s commercial agreements. “We expect to recover most of these incremental input costs, as well as tariffs, in the second half of the year,” citing index-based contracts, existing agreements and commercial negotiations. Price increases had already taken effect in the third quarter. Customer pricing for purchase orders beginning July 1 reflected the increase in oil prices, while further negotiations continue around energy-related costs. Supply-chain actions and cost-reduction programs are also expected contributors to the second-half improvement.

Cooper-Standard generated $16.3 million of free cash flow in the second quarter, a $39.7 million improvement from the same quarter last year. The company defined free cash flow a...