Cooper-Standard Reports Slight Revenue Decline but Improved Profitability in Q2 2025

Cooper-Standard Holdings Inc. reported a slight decline in revenue for the second quarter of 2025, generating $705.973 million compared to $708.362 million in the same period of 2024. The company's gross profit increased to $93.051 million, up from $82.940 million year-over-year, reflecting a gross profit margin of 13.2%, compared to 11.7% in the prior year. Operating income saw a significant rise to $37.279 million, compared to $11.146 million in the previous year, while net loss attributable to Cooper-Standard Holdings Inc. narrowed to $1.401 million from a loss of $76.243 million in the same quarter of 2024.

For the first half of 2025, total revenue was $1.373 billion, down from $1.384 billion in the first half of 2024. The decrease was attributed to unfavorable foreign exchange impacts and a negative volume and mix effect, despite a gross profit increase to $170.229 million from $144.583 million. The company reported a net income of $151, a notable recovery from a loss of $107.903 million in the same period last year. The improved profitability was driven by cost-saving measures from previous restructuring initiatives and operational efficiencies.

In terms of strategic developments, Cooper-Standard completed the divestiture of its non-core Canadian tooling business in late 2024, receiving cash proceeds of $2.558 million during the first half of 2025. The company has also implemented restructuring plans aimed at enhancing operational efficiency, which included the elimination of approximately 400 positions. These initiatives are expected to yield annualized savings of $40 million to $45 million.

Operationally, Cooper-Standard's customer base remains robust, with approximately 86% of sales directed to major original equipment manufacturers (OEMs). The company reported a slight increase in accounts receivable, which rose to $371.256 million from $310.738 million at the end of 2024, indicating a focus on managing working capital effectively. The company’s total assets increased to $1.820 billion, up from $1.733 billion at the end of 2024, while total liabilities also rose to $1.925 billion from $1.866 billion.

Looking ahead, Cooper-Standard anticipates that global automotive production will remain flat for the full year 2025, with regional declines in North America and Europe offset by growth in China. The company is actively managing its liquidity and capital expenditures, projecting disciplined spending of approximately $45 million to $55 million for the year. Despite ongoing economic uncertainties, including inflationary pressures and geopolitical tensions, Cooper-Standard remains focused on leveraging its operational efficiencies and strategic initiatives to navigate the evolving market landscape.