Cooper Standard reports higher sales but earnings fall

Northville, Michigan — Cooper Standard has reported higher first-quarter sales but lower earnings amid weak vehicle production volumes and ongoing cost inflation.

For the three months ended 31 March, sales rose 2.9% year-on-year to $686.4 million (€582 million), driven mainly by favourable foreign exchange effects, partially offset by “unfavourable volume and mix”, the company said 6 May.

Adjusted earnings (EBITDA) fell 13% to $51.0 million, from $58.7 million a year earlier, while the company posted a net loss of $33.3 million, compared to net income of $1.6 million in the prior-year period.

The quarterly loss included restructuring charges of $4.6 million and a $24.2-million loss related to refinancing activity completed during the quarter, said the parts supplier.

“We are effectively managing current market dynamics and believe we are on track to achieve or exceed our sales and profitability targets for the full year,” said chairman and CEO Jeffrey Edwards on the results.

Within the group’s sealing systems business, sales edged up 1.2% to $348.3 million, as positive currency effects more than offset weaker volume and mix.

Adjusted earnings for the segment declined 7.3% year-on-year to $30.0 million, impacted by lower volumes, though partly offset by cost reductions and manufacturing efficiencies.

Fluid handling systems delivered stronger growth, with sales increasing 4.6% to $317.9 million and adjusted earnings rising 11.8% to $23.5 million.

The supplier said it secured net new business awards worth $127.9 million in “anticipated future annualised sales” during the quarter, including $31.8 million linked to battery electric and full-hybrid vehicle platforms.

Looking ahead, Cooper Standard said industry conditions remained volatile due to “customer supply chain disruptions, changing trade and tariff policies, geopolitical issues and affordability concerns.”

Despite these pressures, it said underlying demand for light vehicle production in its core regions remained “strong”, supported by ageing vehicle fleets, growing populations, rising numbers of newly licensed drivers and declining inventories.

The company also pointed to ongoing efforts to improve profitability through “enhanced contribution margins and enhanced index-based commercial agreements.”

Following the first-quarter performance, Cooper Standard said it expects to achieve or exceed the sales and profitability ranges outlined in its guidance issued earlier this year.

The US supplier expects to deliver sales of between $2.7 and $2.9 billion for the full year, against $2.74 billion reported in 2025.

Adjusted earnings is expected to come in between $260 and $300 million, compared to $210 million reported last year.