COOPER-STANDARD HOLDINGS INC. FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 2026
COOPER-STANDARD HOLDINGS INC. FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 2026
Cooper-Standard Holdings Inc. reported its financial results for the quarter ended June 30, 2026. The company’s net sales decreased by 12% to $1.23 billion compared to the same period last year, primarily due to lower demand in the automotive market. Gross profit margin decreased to 14.1% from 15.3% in the same period last year, mainly due to higher raw material costs and lower pricing. Operating income was $43.6 million, a decrease of 44% from the same period last year, primarily due to the decline in net sales and higher operating expenses. The company reported a net loss of $21.4 million, compared to a net income of $14.1 million in the same period last year. As of June 30, 2026, the company had cash and cash equivalents of $243.8 million and total debt of $1.43 billion.
Overview of Financial Performance
Cooper-Standard Holdings Inc., a leading global automotive parts manufacturer, has reported its financial results for the three and six months ended June 30, 2026. Despite global market uncertainty, the company’s performance has shown both strengths and challenges.
The company’s sales increased by 2.2% and 2.5% for the three and six-month periods, respectively, compared to the same periods in 2025. This was driven by favorable foreign exchange and the impact of volume and mix, net of customer price adjustments and recoveries.
However, the company’s gross profit declined by $9.3 million and $4.1 million for the three and six-month periods, respectively. This was primarily due to increased costs from higher inflation of labor and overhead, increased tariff expense, unfavorable material economics, and unfavorable foreign exchange, partially offset by manufacturing and purchasing savings through lean initiatives and savings from prior year restructuring initiatives.
Revenue and Profit Trends
The Sealing Systems segment saw a decline in sales of 2.9% and 0.9% for the three and six-month periods, respectively, driven by lower customer volumes and unfavorable mix. In contrast, the Fluid Handling Systems segment experienced sales growth of 7.1% and 5.9% for the same periods, driven by favorable volume and mix, improved customer recoveries, and increased tariff recoveries.
Segment adjusted EBITDA, the company’s key measure of profitability, also showed mixed results. Sealing Systems’ adjusted EBITDA declined by $14.2 million and $16.6 million for the three and six-month periods, respectively, due to lower volumes, unfavorable mix, and increased costs. Fluid Handling Systems’ adjusted EBITDA increased by $0.7 million and $3.1 million for the same periods, driven by favorable volume and mix, partially offset by increased costs.
The company’s overall net loss widened significantly, from $1.4 million to $18.9 million for the three-month period, and from a net income of $0.1 million to a net loss of $52.1 million for the six-month period. This was primarily due to the impact of restructuring charges, higher inflation, and a loss on refinancing and extinguishment of debt.
Strengths and Weaknesses
One of the company’s key strengths is its diversified product portfolio, with the Fluid Handling Systems segment demonstrating resilience and growth even in the face of challenges. The company’s focus on lean manufacturing and cost optimization initiatives has also helped to offset some of the inflationary pressures.
However, the company’s Sealing Systems segment has been more heavily impacted by the industry-wide challenges, such as lower customer volumes and unfavorable mix. The company has also faced significant headwinds from rising raw material costs, tariffs, and labor inflation, which have weighed on its profitability.
The company’s recent refinancing transactions have extended the maturities of its debt and reduced its cash interest payments, which should provide some relief. However, the company still recognized a substantial loss on the refinancing, which has further impacted its financial results.
Outlook and Future Prospects
Looking ahead, the company faces a mixed outlook. Global light vehicle production is expected to decline by approximately 2% in 2026 compared to 2025, followed by modest growth in 2027. This, combined with ongoing inflationary pressures and supply chain disruptions, will likely continue to challenge the company’s performance.
The company’s ability to navigate these challenges will depend on its continued focus on cost optimization, pricing adjustments, and effective management of its supply chain. The company’s diversified product portfolio and geographic footprint may also help to mitigate some of the industry-wide risks.
Overall, Cooper-Standard Holdings Inc. has demonstrated resilience in the face of a challenging operating environment, but it will need to continue to adapt and innovate to maintain its competitive position and drive long-term profitability.
Table 1: Light Vehicle Production Volumes
| Region | Three Months Ended June 30 | Six Months Ended June 30 | ||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | |
| North America | 3.9 | 4.0 | (0.2)% | 7.7 | 7.7 | (0.7)% |
| Europe | 4.4 | 4.5 | (1.2)% | 8.8 | 8.8 | (0.3)% |
| Asia Pacific | 13.2 | 13.2 | 0.3% | 25.8 | 26.0 | (0.8)% |
| Greater China | 7.5 | 7.8 | (3.2)% | 14.2 | 14.9 | (5.3)% |
| South America | 0.8 | 0.8 | 7.5% | 1.5 | 1.5 | 5.8% |
Table 2: Financial Results
| Metric | Three Months Ended June 30 | Six Months Ended June 30 | ||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | Change | 2026 | 2025 | Change | |
| Sales ($ thousands) | 721,349 | 705,973 | 15,376 | 1,407,708 | 1,373,042 | 34,666 |
| Cost of Products Sold ($ thousands) | 637,593 | 612,922 | 24,671 | 1,241,534 | 1,202,813 | 38,721 |
| Gross Profit ($ thousands) | 83,756 | 93,051 | (9,295) | 166,174 | 170,229 | (4,055) |
| Gross Profit Margin | 11.6% | 13.2% | (1.6 ppts) | 11.8% | 12.4% | (0.6 ppts) |
| Selling, Administration & Engineering Expenses ($ thousands) | 52,605 | 51,210 | 1,395 | 105,110 | 102,401 | 2,709 |
| Restructuring Charges ($ thousands) | 17,063 | 2,852 | 14,211 | 21,695 | 4,963 | 16,732 |
| Operating Income ($ thousands) | 12,861 | 37,279 | (24,418) | 36,918 | 59,543 | (22,625) |
| Net (Loss) Income Attributable to Cooper-Standard Holdings Inc. ($ thousands) | (18,843) | (1,401) | (17,442) | (52,146) | 151 | (52,297) |
Table 3: Segment Results
| Metric | Three Months Ended June 30 | Six Months Ended June 30 | ||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | Change | 2026 | 2025 | Change | |
| Sealing Systems Sales ($ thousands) | 353,954 | 364,368 | (10,414) | 702,257 | 708,679 | (6,422) |
| Fluid Handling Systems Sales ($ thousands) | 345,264 | 322,430 | 22,834 | 663,210 | 626,428 | 36,782 |
| Sealing Systems Adjusted EBITDA ($ thousands) | 26,129 | 40,345 | (14,216) | 56,080 | 72,657 | (16,577) |
| Fluid Handling Systems Adjusted EBITDA ($ thousands) | 27,655 | 26,997 | 658 | 51,110 | 47,979 | 3,131 |
Conclusion
Cooper-Standard Holdings Inc. has faced a challenging operating environment in 2026, with declining light vehicle production, rising costs, and supply chain disruptions impacting its financial performance. While the company’s Fluid Handling Systems segment has demonstrated resilience, the Sealing Systems segment has been more heavily affected by the industry-wide challenges.
The company’s focus on cost optimization and pricing adjustments has helped to mitigate some of the inflationary pressures, but the company’s profitability has still been significantly impacted. The recent refinancing transactions have provided some relief, but the company still faces a mixed outlook for the future.
To navigate these challenges, the company will need to continue to adapt its strategies, optimize its operations, and leverage its diversified product portfolio and geographic footprint. By doing so, Cooper-Standard Holdings Inc. can position itself for long-term success in the evolving automotive parts industry.