Cooper Standard doubles earnings in 'robust' first quarter

Northville, Michigan – Cooper Standard Holdings has doubled adjusted earnings (EBITDA) in the first quarter of 2025, despite lower overall sales.

The Northville parts supplier posted earnings of $58.7 million (€51.7 million) for the first three months of the year, up from $29.3 million reported for the same period last year.

Operating income came in at $22.3 million, up significantly compared to $3.49 million last year, announced Cooper Standard 1 May.

The company linked the earnings improvement to “increased manufacturing and purchasing efficiency, the timing of certain royalty payments, and lower SGA&E expense, partially offset by ongoing general inflation.”

Sales for the period fell 1.4% year-over-year to $667 million as both segments of sealings systems and fluid handling systems reported lower revenue.

Sealing systems business unit posted a 51% year-on-year increase in adjusted earnings to $32.3 million, helped by cost improvements of $13.4 million, according to the company.

Segment sales, meanwhile, dropped 2% year-on-year to $344 million, on a $10 million currency headwind, partially offset by a $3.6 million volume/mix improvement.

Fluid handling systems also posted a sharp 91% year-on-year increase in adjusted earnings, up $10 million to $21 million.

Sales for the unit came in slightly lower than last year at $304 million, as the negative currency effect of $4.4 million was partially offset by a stronger volume/mix.

Chairman and CEO Jeffrey Edwards said the “outstanding” operating performance  was due to improved operating efficiencies, innovation, and delivering good quality and service.

“Despite current market turbulence, we are confident that we can continue to improve our business and our results as we execute our plans,” Edwards added.

In terms of order books, Cooper Standard said it received new business awards totalling $55 million in “anticipated future annualised sales” over the first quarter.

The orders were primarily related to battery electric vehicle and hybrid vehicle platforms.

On the short-term outlook, the company said the industry and global economy were “facing unprecedented uncertainty due to changing trade and tariff policies” by the US and other nations.

Despite the trade-related uncertainty, Cooper Standard said it believed that the underlying demand for new light vehicle production in its key operating regions remains strong.

The demand, it said, will be supported by the age of the existing fleet, increasing population, increasing numbers of newly licensed drivers, and declining vehicle inventories.

Stating that tariffs may be imposed on some of its products, primarily in shipments across the border in North America, Cooper Standard said it is “well-positioned to manage through.” 

However, the changing tariff policies may impact the overall light vehicle production volumes, it added.