Cooper-Standard Holdings Inc.

First-quarter 2026 sales were $686.4 million, up 2.9% from Q1 2025. Gross margin was 12.0% of sales, up 40 basis points year over year. Adjusted EBITDA was $51 million versus $58.7 million a year ago. On a GAAP basis, net loss was $33.3 million versus net income of $1.6 million in Q1 2025. Adjusted net loss was $5.2 million, or $0.29 per share, versus adjusted net income of $3.5 million, or $0.19 per share, last year. Capex was $24 million, or 3.5% of sales. The company ended the quarter with about $118 million of cash and $286 million of total liquidity, including $167 million of unused ABL availability. For 2026, management said it is on track to achieve or exceed the full-year targets set in February, including over $400 million of net new business awards, and expects a more formal guidance update with Q2 results.

Jeff Edwards emphasized operational execution, noting 99% green customer scorecards for quality and service, 97% green scorecards for new program launches, and a total incident rate of 0.18 per 200,000 hours worked, with 84% of plants at zero incidents. He framed the quarter as evidence that the company can keep expanding margins through lean savings, fixed-cost reductions, and new-business wins even in a soft or volatile market. His tone was constructive and confident, especially around innovation-driven awards, the Fluid business outlook, and the possibility that some current headwinds could become tailwinds in the second half.

John Banas highlighted sales of $686.4 million, gross margin of 12.0%, adjusted EBITDA of $51 million, and adjusted net loss of $5.2 million, while explaining that the EBITDA decline versus last year was mainly due to the nonrecurrence of about $10 million of royalty income in Q1 2025. He said Q1 capex was $24 million, or 3.5% of sales, and that quarter-end liquidity was approximately $286 million, supported by $118 million of cash and $167 million of unused ABL capacity. He also said the March 4 refinancing lowered annual cash interest by about $6 million, improved flexibility, and pushed note maturity to 2031.

Analysts focused on the mix of new business by segment, the profitability of innovation-based awards, inflation exposure, and whether higher gasoline/oil prices were changing customer schedules or demand. Management said about 60% of Q1’s $128 million in awards was Fluid and 40% Sealing, with roughly half in North America and a large share in China, and said innovation products should support further margin expansion, though they did not quantify the margin premium. On inflation, Banas said the company is more than 70% covered by contractual index mechanisms and regular customer recovery processes, though there can be a timing lag, especially in Q2. Edwards said they have not seen a schedule change from higher gasoline prices so far, and while the Middle East situation creates uncertainty, he thinks the second half could benefit if conditions stabilize.