Cooper-Standard Q3 earnings call highlights. Cooper-Standard (NYSE:CPS) lowered its 2026 adjusted EBITDA outlook by approximately $40 million at the midpoint, as higher commodity costs, inflation and delays in customer recoveries weighed on the automotive supplier's earnings. The company nevertheless expects full-year adjusted EBITDA to rise by about $30 million, or 100 basis points as a margin, from 2025. Management also said a record pace of new business awards supports its longer-term growth targets. Third-quarter sales increased 1.9% from a year earlier to $708.6 million, driven primarily by favorable volume and mix and, to a lesser extent, foreign exchange. Adjusted EBITDA slipped to $52.8 million from $53.3 million, while the net loss widened to $20.4 million from $7.6 million. Excluding restructuring expense, net of tax, the adjusted net loss narrowed to $2.1 million, or $0.11 per share, from $4.4 million, or $0.24 per share, a year earlier. Commodity costs pressure outlook. Chief Financial Officer John Banas said the revised outlook reflects approximately $10 million less in anticipated manufacturing and supply chain savings than originally planned. The company now expects about $80 million in such savings for the full year. Higher commodity costs, delayed customer recoveries and continued inflation reduced the outlook by another approximately $30 million compared with expectations last quarter, Banas said. Third-quarter adjusted EBITDA faced $15 million in higher material costs and $12 million in increased wages and general inflation compared with the prior-year period. Banas said oil prices had remained $30 to $40 per barrel above the company's original planning assumption, raising the cost of rubber and plastic feedstocks. Aluminum prices also rose amid supply chain and transportation disruptions and uncertainty related to the Middle East conflict. Cooper-Standard expects to recover most of its incremental material costs through index-based agreements and commercial negotiations, although some recoveries are expected to shift into 2027. Banas said the updated guidance assumes oil prices of around $100 per barrel. Chairman and Chief Executive Officer Jeff Edwards said the company was discussing changes to its agreements with customers to improve recovery timing and refine the indices used. He said the company was also seeking changes to practices around financing customer tooling, which he said burden suppliers' balance sheets. New business awards support growth plans. Cooper-Standard received $149 million in net new business awards during the third quarter, bringing its nine-month total to $395 million. That was just short of its $400 million full-year goal. Edwards confirmed that the company's net measure deducts programs that fall off from new awards. Edwards said available capacity should allow the company to launch much of the new business over the next several years with minimal incremental capital investment. He also said roughly $1 billion in net new business is scheduled to launch from 2027 through 2030, although ultimate results will depend on volume and mix. Asked about the pace of revenue growth, Edwards pointed to approximately $2.8 billion in sales this year and a range of $3.5 billion to $3.7 billion by 2030 or 2031. He reiterated the company's longer-term goal of achieving a 15% adjusted EBITDA margin by 2030. The company's launch activity has increased sharply: Edwards said total plant launches in the third quarter were more than double the number in the same period last year. Banas said the fourth quarter is typically a lighter launch period, allowing savings initiatives and purchasing rebates to contribute more fully, although inflation remains a headwind. Cash flow and restructuring. Free cash flow was an outflow of $10.8 million in the third quarter. Cooper-Standard ended September with $112.3 million in cash and $193.1 million available under its untapped asset-based lending facility, giving it total liquidity of more than $300 million. During the quarter, the company amended the facility, increasing its size to $200 million from $180 million, extending its stated maturity to September 2031 and reducing borrowing spreads and fees. Banas said Cooper-Standard expects positive free cash flow in the fourth quarter, helped by a reduction in accounts receivable and inventory. He cautioned that the timing of government tariff refunds and commodity cost recoveries could affect working capital. The third-quarter restructuring charge primarily reflected an agreement to further reduce the Western European workforce, Banas said. Cash payments related to the charge will occur over the coming months and into next year. He distinguished the accounting charge from the company's full-year cash restructuring guidance of $30 million to $35 million and said management does not currently expect much more restructuring expense on the income statement. Technology and efficiency. Edwards also outlined plans to expand the company's use of artificial intelligence across its operations. Chris Couch was recently appointed chief AI officer in addition to his roles as president of the fluid handling segment and chief technology officer. Edwards said the company believes its developing business-process technology could support more than $1 billion in additional sales over several years without a commensurate increase in headcount and costs. About Cooper-Standard (NYSE:CPS). Cooper-Standard Holdings Inc is an automotive supplier that develops and manufactures systems and components used by vehicle manufacturers and other transportation customers. The company's products are designed to support vehicle sealing, fluid management, noise and vibration control, and other performance, safety, and comfort requirements. Its product portfolio includes body sealing systems, such as weatherstrips and sealing components; fluid-handling systems for fuel, brake, coolant, and other vehicle fluids; and anti-vibration systems that help reduce noise, vibration, and harshness.

Cooper-Standard shareholders have lost 45.0% since the start of the year, including dividends, despite new electric vehicle contracts and product launches. The shares now trade at $17.93, down from $32.83 on January 1, 2026. In its third quarter, the supplier reported $148.8 million of net new business awards, including EV platforms. Revenue was $708.6 million, but the net loss deepened to $20.4 million, a net margin of -2.9%. Investor views split widely. A bullish case put fair value at $39, assuming 6.0% revenue growth and a 7.1% margin. A bearish case said $25, citing reliance on legacy auto products and high leverage. The key question is whether new wins will lift margins.