Cooper Standard lowers earnings forecast amid rising costs

Northville, Michigan – Cooper Standard has lowered its full-year earnings forecast, citing ‘higher-than-expected’ commodity costs.

The US automotive sealing and fluid-systems supplier now expects adjusted earnings (EBITDA) of $235–245 million (€215 - €224 million) for 2026, down from its previous forecast of $265–295 million.

The revision follows continuing pressure from material costs and general inflation, which remained greater than expected during the third quarter, Cooper Standard reported 4 Nov.

For the three months ended 30 Sept, the company posted a net loss attributable to shareholders of $20.4 million, compared with a loss of $7.6 million a year earlier.

The results included restructuring charges of $19.2 million, compared with $3.5 million in the prior-year period.

Excluding special items, Cooper Standard reduced its adjusted net loss to $2.1 million from $4.4 million.

Net sales for the quarter increased 1.9% year-on-year to $708.6 million from $695.5 million, despite a 2.3% decline in global light vehicle production.

The increase was driven primarily by 'favourable volume, mix and price adjustments,' according to the company.

Third quarter adjusted earnings edged down to $52.8 million from $53.3 million, maintaining a margin of 7.5% of sales.

Nine-month sales increased 2.3% year-on-year to $2.12 billion, while adjusted earnings declined 9.7% to $157.8 million from $174.7 million.

Cooper Standard said “lower compensation-related expenses,” manufacturing and purchasing efficiencies, and reduced customs duties and tariffs helped offset higher material costs, inflation and an unfavourable volume and sales mix.

"While headwinds from commodity prices and general inflation remained greater than we had expected in the third quarter, we are working with our customers to refine our commercial agreements," said chairman and CEO Jeffrey Edwards.

The group was also seeking to "accelerate the timing of cost recoveries wherever possible", he added.

Edwards said the measures would "further de-risk our business" and support longer-term value creation.

Breaking down segment performances, the group’s sealing systems business reported third-quarter sales of $350 million, unchanged from $349 million a year earlier.

Segment adjusted earnings declined 6% to $29 million from $30.9 million, reflecting unfavourable volume and mix.

In fluid handling systems, sales increased 2% year-on-year to $335 million, from $328 million, while adjust earnings rose 10.3% to $32 million.

The growth, said Cooper Standard, was supported by cost improvements, including savings from restructuring initiatives.

Cooper Standard also reported $148.8 million in net new business awards during the quarter, representing anticipated 'incremental annualised sales.'

Of the total, $28.2 million were related to battery-electric or full-hybrid vehicle platforms.

For the first nine months of 2026, the US group recorded $395 million in net new business awards, including $96.6 million related to electric and hybrid platforms.

Looking ahead, Cooper Standard revised its full-year sales forecast to $2.75–2.85 billion, compared with the previous range of $2.7–2.9 billion.

The company said its outlook reflected “near-term commodity costs and general inflation headwinds that remain higher than previously expected.”