Shares of Cooper-Standard Holdings Inc. (CPS Quick QuoteCPS - Free Report) have risen 8.1% since reporting results for the second quarter of 2025. This compares with the S&P 500 index’s 2% decline over the same time frame. Over the past month, the stock has gained 12.2% compared with the S&P 500’s 0.4% growth.

Financial Performance: Net Loss Narrows, Profitability Measures Improve

Cooper-Standard posted second-quarter 2025 revenues of $706 million, down 0.3% from $708.4 million in the same period last year. The top line beat analyst expectations by nearly $19 million. The sales dip was attributed mainly to unfavorable volume and product mix, including net customer price adjustments, partially offset by favorable foreign currency movements.

Despite the marginal decline in sales, profitability metrics showed marked improvement. The company reported a net loss of $1.4 million, or 8 cents per diluted share, narrower than the loss of $76.2 million, or $4.34 per share, incurred in the second quarter of 2024. On an adjusted basis, Cooper-Standard delivered net income of $1 million, or 6 cents per share, reversing an adjusted net loss of $11.3 million, or 64 cents per share, a year earlier.

Adjusted EBITDA climbed 23% to $62.8 million from $50.9 million in the prior-year period, with margins expanding 170 basis points to 8.9% of sales. These improvements were fueled by manufacturing and purchasing efficiencies, as well as savings from restructuring and headcount optimization.

Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise

 

Cooper-Standard Holdings Inc. price-consensus-eps-surprise-chart | Cooper-Standard Holdings Inc. Quote

Other Key Business Metrics

Operational excellence was a strong suit for Cooper-Standard in the quarter. Gross profit increased 12.2% year over year to $93.1 million, with the gross margin expanding to 13.2% from 11.7%.

The segment-level EBITDA performance was also encouraging. The Sealing Systems segment posted $40.3 million in adjusted EBITDA, up from $35 million, while Fluid Handling Systems saw a more dramatic rise to $27 million from $16.3 million. These gains were driven primarily by lean manufacturing, strategic cost initiatives and ongoing footprint optimization.

The free cash flow for the second quarter was unchanged year over year at -$23.4 million. Total liquidity stood at $272.8 million as of June 30, 2025, including $121.6 million in cash and cash equivalents, and $151.2 million in unused capacity under the company’s ABL credit facility.

Management Commentary

Chairman and CEO Jeffrey Edwards attributed the strong second quarter to the "outstanding effort and commitment" of the global team, highlighting 100% of customer quality scorecards and 97% green ratings for the latest program launches as evidence of the company’s world-class execution. He also praised plant safety records, noting a total incident rate of just 0.26 — well below the world-class benchmark of 0.47.

CFO Jon Banas reinforced this optimism by pointing to $25 million in lean manufacturing and purchasing savings, and an additional $4 million from restructuring initiatives. He also emphasized the company’s strong liquidity and capital discipline, expressing confidence in achieving positive free cash flow for the year.

Factors Influencing Performance

The quarter’s bottom-line improvement stemmed primarily from internal execution rather than market tailwinds. Manufacturing and purchasing efficiencies contributed $25 million to adjusted EBITDA growth, while $4 million came from restructuring-driven savings. Foreign exchange added another $3 million, offsetting headwinds from volume/mix (-$16 million) and general inflation and wage increases (-$6 million).

In terms of segment drivers, Sealing Systems benefited from innovation-led content per vehicle growth and digital transformation initiatives like AI-driven asset optimization. Fluid Handling Systems saw gains through strategic expansion aligned with hybrid vehicle demand and increasing systems integration opportunities.

Guidance

Cooper-Standard raised its 2025 adjusted EBITDA guidance to $220-$250 million from the previously stated $200-$235 million. The sales guidance remained steady at $2.7-$2.8 billion. This upward revision reflects management’s confidence in offsetting lower vehicle production volumes with continued operational execution.

Forecast assumptions include slightly reduced light vehicle production in North America (14.9 million units versus the prior 15.1 million), while Europe and Greater China are projected at 16.7 million and 31.2 million units, respectively.

Other Developments

In the second quarter of 2025, Cooper-Standard secured $77.1 million in net new business awards, bringing the total to $132 million for the first six months of 2025. These wins were predominantly in battery-electric and hybrid vehicle platforms, reinforcing the company’s strategic pivot toward electrification.

There were no reported acquisitions, divestitures or major restructuring announcements in the quarter beyond ongoing footprint and headcount optimizations. However, management did indicate that further inorganic growth opportunities, particularly within the Fluid Handling segment, remain under consideration as profitability and cash generation improve.

In sum, Cooper-Standard’s second-quarter results showcased resilience and operational strength, enabling the company to lift full-year profit targets despite a challenging macro environment. With strong execution and a focus on innovation, the company appears well-positioned to capitalize on growth opportunities.