Cooper-Standard Widens Quarterly Loss Amid Rising Material Costs
The automotive supplier reported a net loss of $18.8 million for the second quarter.
Cooper-Standard Holdings (CPS), the automotive supplier, reported a widened net loss for the second quarter. The result followed a period of rising operational costs and restructuring expenses that offset modest gains in top-line revenue.
The company saw its net loss grow to $18.8 million from a loss of $1.4 million in the same period last year. This decline was driven largely by a spike in restructuring charges, which rose to $17.1 million from $2.9 million in the prior-year quarter.
Sales rose 2.2% to $721.3 million, up from $706.0 million in the second quarter of 2024. Growth was driven by favorable foreign exchange rates and volume and mix. However, adjusted EBITDA declined to $53.9 million, representing a 7.5% margin, compared to $62.8 million and an 8.9% margin in the prior-year period.
Higher material costs, inflationary pressures, and increased customs duties and tariffs were the primary drivers for the margin compression. Performance varied by segment, as fluid handling systems sales increased to $345.3 million from $322.4 million, while sealing systems sales fell to $354.0 million from $364.4 million.
Cash flow showed improvement as free cash flow rose to $16.3 million, a $39.7 million increase over the $23.4 million outflow recorded in the second quarter of 2024. Net new business awards for the quarter totaled $118.4 million, including $36.6 million from battery electric or full-hybrid platforms, though this was a decrease from the $127.9 million awarded in the first quarter of 2025.
Cooper-Standard tightened its full-year 2025 adjusted EBITDA guidance to a range of $265 million to $295 million, down from an initial range of $260 million to $300 million, though the midpoint remains unchanged. The company raised its full-year capital expenditure guidance to $60 million to $70 million and increased expected cash restructuring costs to a range of $30 million to $35 million.
The company lowered its full-year net cash interest guidance to between $90 million and $100 million. Additionally, it reduced light vehicle production assumptions for Greater China to 31.6 million units and South America to 3.1 million units.