Cooper-Standard (CPS) reported their financial results for the third quarter of 2025, showing a 1.5% increase in sales compared to the previous year, driven by positive foreign exchange and volume/mix. The gross margin improved by 140 basis points to 12.5% of sales. Adjusted EBITDA increased by more than 15.6% to $53.3 million, with a net loss of $7.6 million on a U.S. GAAP basis. Adjusted net loss for 2025 was $4.4 million, with capital expenditures similar to the prior year.
In the first nine months of 2025, sales were flat compared to 2024, but gross profit margin increased by 170 basis points and adjusted EBITDA margin improved by 230 basis points. Lean initiatives and cost savings contributed positively. Various factors impacted the third quarter results, including favorable volume and mix, foreign exchange, and additional savings from prior initiatives, offset by production disruptions and increased costs.
Looking at cash flow and liquidity, net cash provided by operating activities was around $39 million in 2025, with net free cash flow of approximately $27 million, higher than the same period last year. The company ended the third quarter with a cash balance of approximately $148 million and solid total liquidity of approximately $314 million. The company is optimistic about achieving positive free cash flow for the full year.
The company’s strategic imperatives focus on driving profitable growth, improving margins, and enhancing returns on invested capital. Their net new business wins, primarily related to battery electric or hybrid vehicle platforms, are strategic advantages aligned with market growth segments. Despite short-term production disruptions, the company remains confident in executing their plans and achieving long-term financial targets.
The company remains on track to strengthen their balance sheet and improve cash flow, with plans to refinance their first and third lien notes in the coming months. They are committed to operational excellence, quality, and innovation to support their global expansion needs and achieve strategic financial goals. The company anticipates improved results in 2026 and beyond, driven by new business wins, margin expansion, and volume growth.
Read more at Yahoo Finance: Cooper-Standard (CPS) Q3 2025 Earnings Transcript