Summary of Cooper-Standard Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Sales: $672 million, up 1.8% year-over-year.

Full Year 2025 Sales: $2.74 billion, a modest increase of 0.4% from 2024.

Q4 Adjusted EBITDA: $34.9 million (5.2% of sales), down from $54.3 million (8.2% of sales) in Q4 2024.

Full Year Adjusted EBITDA: $209.7 million, up from $180.7 million in 2024.

Net Income Q4: $3.3 million, including a $45 million deferred tax asset valuation allowance release.

Adjusted Net Loss for Q4: $31 million ($1.73 per diluted share), compared to a loss of $2.9 million in Q4 2024.

Full Year Net Loss: $4.2 million, significantly improved from a loss of $78.7 million in 2024.

Free Cash Flow: Positive $16.3 million for the full year, with $44.6 million in Q4.

2Strategic Updates and Business Highlights

Achieved a 99% green product quality score and 98% green program launch score.

Safety incident rate improved to 0.24 per 200,000 hours worked, with 31 plants achieving zero reportable incidents.

Cost savings of $64 million from operational efficiencies and lean initiatives, alongside $18 million from salary reductions.

Secured $298 million in net new business awards in 2025, with 74% related to battery electric or hybrid vehicle platforms.

Focus on expanding business with Chinese OEMs, aiming to increase their share from 36% to 60% of revenue by 2030.

3Forward Guidance and Outlook

2026 Sales Growth: Expected increase of around 3%, with a target of $2.8 billion in revenue.

Adjusted EBITDA Target for 2026: $280 million, with plans for margin expansion.

Anticipated continued positive free cash flow in 2026.

First quarter of 2026 expected to be the weakest in terms of margins and cash flow, with improvement expected in subsequent quarters.

4Bad News, Challenges, or Points of Concern

Q4 production was impacted by a customer supply chain disruption, affecting one of the top vehicle platforms.

Adjusted EBITDA for Q4 decreased significantly due to industry disruptions, inflationary pressures, and increased compensation costs.

The overall market is projected to decline slightly in 2026, with North American production expected to drop from 15.3 million to 15 million units.

Potential risks related to tariffs, particularly affecting the Fluid business, and uncertainty around production schedules from major customers.

5Notable Q&A Insights

Management expressed cautious optimism regarding production schedules for the F-Series, indicating potential increases but also acknowledging uncertainties.

The company is focused on refinancing outstanding debt before mid-March to avoid added pressure from upcoming maturities.

New products and innovations are expected to contribute positively to revenue, with the Chinese market showing faster integration of new business compared to Western OEMs.

The team is confident in achieving operational improvements and has already identified over 90% of the initiatives needed for the projected $90 million in efficiencies for 2026. This summary encapsulates the key financial metrics, strategic initiatives, future outlook, challenges, and insights from the Q&A session, providing a comprehensive overview of Cooper-Standard's performance and expectations moving forward.