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.