Cooper-Standard Reports Q1 2025 Financial Results with Net Income Turnaround

Cooper-Standard Holdings Inc. reported its financial results for the first quarter of 2025, revealing a net income of $1.6 million, a significant turnaround from a net loss of $31.3 million in the same period last year. The company’s revenue for the quarter was $667.1 million, down 1.4% from $676.4 million in the first quarter of 2024. The decrease in sales was attributed primarily to unfavorable foreign exchange impacts, which offset some gains from improved volume and mix. Gross profit increased to $77.2 million, up from $61.6 million, reflecting a gross profit margin of 11.6%, compared to 9.1% in the prior year.

The company’s operating income also saw a substantial increase, rising to $22.3 million from $3.5 million year-over-year. This improvement was driven by a reduction in the cost of products sold, which fell to $589.9 million from $614.8 million, aided by manufacturing and purchasing savings from lean initiatives and prior restructuring efforts. Selling, administration, and engineering expenses decreased to $51.2 million from $55.4 million, primarily due to lower compensation-related costs resulting from restructuring initiatives.

In terms of operational developments, Cooper-Standard completed the divestiture of its non-core Canadian tooling business in late 2024, receiving an initial cash payment of $2.4 million during the first quarter of 2025. The company also reported restructuring charges of $2.1 million for the quarter, up from $1.1 million in the previous year, reflecting ongoing efforts to streamline operations and improve efficiency. The company’s total assets increased to $1.8 billion as of March 31, 2025, compared to $1.7 billion at the end of 2024, driven by higher accounts receivable and inventory levels.

Looking ahead, Cooper-Standard anticipates continued challenges in the automotive industry, including high inventory levels and economic uncertainties that may impact vehicle production and demand. The company expects global light vehicle production to decline by approximately 2% in 2025 compared to 2024, with modest growth projected for 2026 and 2027. Despite these challenges, Cooper-Standard is focused on maintaining liquidity and managing costs effectively, with plans to invest between $45 million and $55 million in capital expenditures throughout 2025. The company remains committed to enhancing operational efficiency and pursuing pricing adjustments to offset inflationary pressures.