Breaking Down Cooper-Standard Holdings Inc. (CPS) Financial Health: Key Insights for Investors

You're looking at Cooper-Standard Holdings Inc. (CPS), the key automotive sealing and fluid handling supplier, to see if its operational turnaround has enough horsepower to justify a long-term investment, and the consensus data suggests the pivot is defintely gaining traction, but the road ahead still has bumps. The near-term financial picture shows a clear path to profitability, with full-year 2025 revenue expected to hit around $2.78 billion, and analysts projecting a positive earnings per share (EPS) of $0.07, a significant swing from recent losses. But the real opportunity lies in the margin expansion story; management is aggressively targeting double-digit Adjusted EBITDA margins by the end of 2025, largely by leveraging new, higher-content business in hybrid vehicle platforms and cost-saving operational efficiencies. Still, you need to keep a close eye on the balance sheet, ensuring the $300 million in Q1 2025 liquidity is sufficient to manage working capital and debt, especially as the industry navigates unpredictable light vehicle production schedules.

Revenue Analysis

You need to know where Cooper-Standard Holdings Inc. (CPS) is making its money right now, because the mix is changing fast, even if the top-line growth is still sluggish. The analyst consensus for full-year 2025 revenue is around $2.78 billion, which suggests a slight uptick from the 2024 reported revenue of $2.73 billion. That's not explosive growth, but it reflects a stabilization after a tough period.

The company's revenue streams are essentially split into two major product segments, which is a clean way to look at the business. Sealing Systems is the clear heavyweight, but Fluid Handling Systems is a critical, high-value area, especially with the shift to electric vehicles (EVs).

• Sealing Systems is the revenue anchor.
• Fluid Handling is where the EV opportunity lives.

Breakdown of Primary Revenue Sources

Cooper-Standard Holdings Inc.'s business is organized into two main reporting segments: Sealing Systems and Fluid Handling Systems. Sealing Systems are the components that protect a vehicle's interior from weather and noise, while Fluid Handling Systems manage critical functions like fuel, brake delivery, and thermal management (cooling and heating) for the powertrain.

Here's the quick math on the contribution from the last reported full fiscal year, 2024. What this estimate hides is the potential for higher-margin content in the Fluid Handling segment as automakers transition to electrified platforms.

Regionally, the North American market is the most significant contributor, accounting for approximately 59% of 2024 sales. Mexico is a standout country for production and revenue, having contributed $841.72 million in the last reported year, which is a defintely important concentration risk to monitor.

Growth Trends and Near-Term Risks

The year-over-year revenue growth rate has been choppy. The full-year 2024 revenue of $2.73 billion was a decline of -3.0% compared to 2023, but the company is showing signs of stabilizing, with Q3 2025 sales of $695.5 million marking a 1.5% increase year-over-year. Analysts are projecting future revenue growth in the range of 3.6% to 5.7% annually in the near-term, which is a good sign for a mature auto supplier.

The most significant change in the revenue stream is the strategic pivot toward electrified vehicles (EVs). In the first nine months of 2025 alone, Cooper-Standard Holdings Inc. secured $228.5 million in net new business awards, and a massive 83% of that is tied to battery-electric and hybrid vehicle platforms. This pipeline is the real story here-it's how they'll offset the long-term decline in traditional internal combustion engine (ICE) components.

Still, you have to be a realist about the near-term. The company had to revise its full-year 2025 guidance downward due to temporary, but significant, volume losses in Q4 2025. This was caused by an aluminum supply chain disruption at its largest customer, which shows how fragile the automotive supply chain remains, even for a seasoned player. You can read more about the company's long-term strategic goals in their Mission Statement, Vision, & Core Values of Cooper-Standard Holdings Inc. (CPS).

Profitability Metrics

The short answer on Cooper-Standard Holdings Inc. (CPS) profitability is that the company is showing a clear operational turnaround, with gross and operating margins improving significantly, but it still struggles with GAAP net profitability, posting a loss in the most recent quarter.

For the third quarter of 2025 (Q3 2025), Cooper-Standard Holdings Inc. reported sales of $695.5 million, with a GAAP net loss of $7.6 million. This net loss translates to a net profit margin of approximately -1.09% for the quarter, which is a significant improvement from the prior year but still shows a struggle to keep the bottom line black. However, looking at the Trailing Twelve Months (TTM) ending September 30, 2025, the company achieved a net income of $32.7 million, giving a TTM net profit margin of 1.2%.

Here's the quick math on the key margins for Q3 2025, which reflect the core business performance:

• Gross Profit Margin: 12.5%
• Operating Profit Margin: 3.81% (Operating Income of $26.5 million / Sales of $695.5 million)
• Net Profit Margin (GAAP): -1.09%

When you compare Cooper-Standard Holdings Inc.'s profitability ratios to the industry averages for Automotive Parts, you see a mixed picture. The company's focus on operational efficiency is defintely paying off at the gross profit level, but it still lags the competition, especially on the top line.

The trend in profitability is an opportunity. Cooper-Standard Holdings Inc. has successfully driven a 140 basis point improvement in its gross margin year-over-year in Q3 2025. This is a direct result of strong operational efficiency, specifically cost management programs that delivered $18 million in savings during the quarter from lean initiatives. The company's year-to-date gross margin for 2025 is 12.4%, up from 10.3% in 2023, showing a clear, multi-year trajectory of margin expansion. The operational focus is working. The improvement in operating income, which soared 539.2% in Q1 2025 compared to Q1 2024, is a huge sign that the core business is getting healthier.

What this estimate hides is the impact of non-operating costs, particularly high interest expenses, which is what pushes the improved operating income of $26.5 million down to a net loss of $7.6 million in Q3 2025. This is a common challenge for suppliers in the current high-rate environment, but it means that while the factory floor is running much better, the balance sheet still presents a headwind to net income. For a more complete picture of the company's financial standing, you should check out the full analysis at Breaking Down Cooper-Standard Holdings Inc. (CPS) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Cooper-Standard Holdings Inc. (CPS) and immediately, the balance sheet tells a stark story about how the company finances its operations. It's a classic case of high leverage in a capital-intensive industry, but with a critical difference: the company's equity is underwater. This isn't just high debt; it's a structural challenge.

As of the most recent reporting period in 2025, Cooper-Standard Holdings Inc. (CPS) carries approximately $1.19 Billion in total debt. The immediate red flag for any seasoned analyst is the company's total shareholder equity, which sits at a negative -$110.1 Million. When equity is negative, it means the company's total liabilities exceed its total assets. That's a serious situation.

Here's the quick math on the leverage picture:

• Total Debt (MRQ 2025): $1.19 Billion
• Total Shareholder Equity (MRQ 2025): -$110.1 Million
• Debt-to-Equity (D/E) Ratio: -985.9% (or -11.2)

A negative Debt-to-Equity (D/E) ratio is a technical indicator of financial distress. To be fair, the automotive parts industry is capital-intensive and typically operates with higher D/E ratios than, say, a software company. The average D/E ratio for the 'Auto Parts' industry is around 0.58 as of November 2025. Cooper-Standard Holdings Inc.'s structure is clearly an outlier, relying almost entirely on debt financing to fund its assets, not equity.

The company's debt is not cheap, either. With Earnings Before Interest and Taxes (EBIT) at $121.6 Million, the interest coverage ratio is only 1.1x. That means the operating profit barely covers the interest payments, leaving very little margin for error if revenues dip. Honestly, that's defintely too tight for comfort.

In terms of recent activity, the focus has been on managing this massive debt load. S&P Global Ratings affirmed the company's issuer credit rating at 'CCC+' in late 2024, but the outlook was revised to positive from negative. This signals that credit metrics have improved, thanks to cost reductions and efficiency gains. This improvement put a debt refinancing back on the table in mid-2025, a crucial step to lower interest expense and improve profitability. Management is targeting a 2x net leverage ratio by the end of 2027, which would be a monumental shift toward a more balanced, and sustainable, capital structure. Their long-term notes due in 2027 remain the key maturities to watch.

The bottom line is that Cooper-Standard Holdings Inc. (CPS) is currently a debt-funded turnaround story. The opportunity here is tied directly to the success of the refinancing and the ability to hit that 2027 leverage target. You can find more detail on the company's overall financial picture in the full post: Breaking Down Cooper-Standard Holdings Inc. (CPS) Financial Health: Key Insights for Investors.

Next step: Portfolio Manager: Model a best-case/worst-case scenario for CPS based on a successful vs. failed 2025 debt refinancing by end of next week.

Liquidity and Solvency

You need to know if Cooper-Standard Holdings Inc. (CPS) has the cash to cover its near-term bills, and honestly, the picture is a mixed bag that shows real operational improvement but still carries balance sheet risk. The company's liquidity position, while tight, is improving, driven by better cash flow from operations in the latter half of 2025.

Current and Quick Ratios

The standard way to check short-term health is with the Current and Quick Ratios (Acid-Test Ratio). As of the second quarter of 2025 (June), Cooper-Standard Holdings Inc.'s Current Ratio stood at about 1.40. Here's the quick math: Current Assets of $885.4 million divided by Current Liabilities of $633.9 million gives you a ratio that suggests the company can cover its short-term debt with its short-term assets. A ratio above 1.0 is generally fine, but the real test is the Quick Ratio, which strips out inventory-the hardest current asset to convert to cash quickly.

The Quick Ratio, which looks at cash and accounts receivable against current liabilities, was only about 0.78 in Q2 2025. This means for every dollar of immediate debt, the company had only 78 cents in highly liquid assets to cover it. That's a classic sign that Cooper-Standard Holdings Inc. is relying heavily on selling off its inventory (which was $181.3 million in Q2 2025) to meet obligations. It's a tight spot, but the trend matters more than the snapshot.

Working Capital Trends and Cash Flow

The good news is the cash flow statement shows a clear, positive trend. In the third quarter of 2025, the company generated $38.6 million in cash from operating activities, which was a significant jump of $10.8 million compared to the same quarter last year. This improvement was primarily driven by a positive net change in working capital, meaning they are getting better at managing things like collecting receivables and controlling inventory. This operational efficiency is defintely the key to unlocking better liquidity.

The cash flow breakdown for Q3 2025 looks like this:

• Operating Cash Flow: $38.6 million (Strong increase, indicating core business is generating cash)
• Free Cash Flow: $27.4 million (Cash left over after capital expenditures)

The positive Free Cash Flow is crucial because it means they are funding their capital investments and still adding cash to the balance sheet. This momentum is what will ultimately strengthen the balance sheet and reduce the reliance on inventory to cover short-term debts. To see a deeper dive into the valuation, you can check out Breaking Down Cooper-Standard Holdings Inc. (CPS) Financial Health: Key Insights for Investors.

Liquidity Strengths and Concerns

The main strength is the improving operational cash generation and the total available liquidity. As of September 30, 2025, Cooper-Standard Holdings Inc. had cash and cash equivalents of $147.6 million, plus total liquidity (including availability under their revolving credit facility) of $313.5 million. This available cushion is what prevents the low Quick Ratio from becoming an immediate crisis. The primary concern, however, is the high level of long-term debt, which stood at approximately $1.1 billion in Q2 2025, and the fact that the Quick Ratio is below 1.0. This means the company is structurally leveraged, and while the operating performance is improving, any unexpected dip in sales or a major supply chain disruption could quickly pressure that liquidity cushion.

Valuation Analysis

You're looking at Cooper-Standard Holdings Inc. (CPS) after a huge run-up, and the core question is simple: Is there still value here? The quick answer is that the market is currently pricing CPS as a turnaround story that's still significantly undervalued on an intrinsic basis, but it carries the financial stress of a negative book value.

The stock has seen a dramatic shift, rising by over 115.53% in the last 12 months, moving from a 52-week low of $10.38 to a high of $40.67. This volatility shows the market is reacting strongly to operational improvements, but the current price of around $30.28 sits right in the middle, suggesting investor caution after the initial surge.

Is Cooper-Standard Holdings Inc. Overvalued or Undervalued?

Based on 2025 fiscal year data, the valuation picture is mixed, which is common for a company deep into a restructuring phase. You have to look past the simple Price-to-Earnings (P/E) ratio and dig into the Enterprise Value (EV) to get a clear view of the debt load.

Here's the quick math on key multiples, using a market cap of approximately $535.64 million and a current Enterprise Value of $1.576 billion for context:

• Price-to-Earnings (P/E) Ratio: The current P/E is about 16.4x. To be fair, this is lower than the US Auto Components industry average of around 22.4x, suggesting the stock is undervalued relative to its peers on an earnings basis.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: We see a current ratio of roughly 6.25x (calculated as $1.576B EV / $252M forecasted 2025 EBITDA). This is a healthy, 'Fairly Valued' range compared to its own volatile history, but it's crucial because it accounts for the company's substantial debt.
• Price-to-Book (P/B) Ratio: This is the red flag. The P/B ratio is currently a negative value, around -5.16. This means the company has negative shareholder equity-its liabilities exceed its assets-a clear sign of financial distress that you can't ignore.

Analyst Consensus and Forward View

The Wall Street consensus is leaning positive, but it's not a unanimous call to action. As of November 2025, the stock has a consensus rating of 'Moderate Buy' based on a few analysts' reports. The average price target is set at $26.50, which is actually below the current trading price, but the highest target is a more bullish $41.00.

This tells you that half the analysts think the stock has run too far, too fast (the 'Hold' ratings), while the other half see the long-term potential in the turnaround (the 'Strong Buy' and 'Buy' ratings). The low average target is defintely a risk, but the high target shows the upside if the operational improvements-like the forecasted 2025 annual EBITDA of $252 million on $2.950 billion in revenue-continue to materialize.

One simple action: Since Cooper-Standard Holdings Inc. is not a dividend-paying stock (dividend yield and payout ratio are both 0.00%), your entire return will come from capital appreciation, so you need to be confident in the earnings growth story.

Risk Factors

You're looking at Cooper-Standard Holdings Inc. (CPS) and seeing a company in the middle of a turnaround, which means the risks are real and you need to map them to your investment horizon. The core issue is that while operational efficiency is up, external market shocks and the heavy debt load still create significant volatility.

The company revised its full-year 2025 guidance downward, projecting sales between $2.68 billion and $2.72 billion and Adjusted EBITDA between $200 million and $210 million. This cut wasn't due to internal failure, but a clear sign of how quickly external risks can hit an automotive supplier. It's a cyclical business, so you have to expect this kind of headwind.

Operational and Market Shocks

The most immediate risks are operational, stemming from the fragility of the global automotive supply chain. The company's Q3 2025 results, which reported a net loss of $7.6 million, were immediately followed by a warning about Q4. The CEO specifically called out a significant impact from an aluminum supply chain disruption hitting their largest customer, forcing temporary production volume reductions on key vehicle platforms.

Other operational risks are always lurking:

• Customer Concentration: A massive 56% of sales comes from the three major US automakers-Ford, General Motors (GM), and Stellantis. Any labor strike, model cancellation, or severe disruption at just one of these Original Equipment Manufacturers (OEMs) hits Cooper-Standard Holdings Inc. (CPS) hard.
• External Headwinds: Ongoing market headwinds include general inflation, which added to costs, and the persistent threat of tariffs and trade policy uncertainties that could impact material costs and demand.
• Cyber Threats: The risk of cyber attacks on customers or the company itself remains a constant threat to production forecasts, as seen in recent industry reports.

Financial and Strategic Risks

The biggest financial elephant in the room is the balance sheet. Cooper-Standard Holdings Inc. (CPS) carries substantial indebtedness, totaling approximately $1,100.3 million as of December 31, 2024. This debt load limits financial flexibility, especially in a rising interest rate environment, and is a key factor in why the stock has a high Beta of 2.94, indicating much higher volatility than the overall market.

Here's the quick math: The company ended Q3 2025 with total liquidity of around $314 million, which provides a cushion, but the debt-to-equity ratio is concerning given the past losses. You need to see sustained positive free cash flow to feel defintely comfortable with that debt level.

In terms of strategic risk, the shift to electric vehicles (EVs) and hybrid platforms is a double-edged sword. While it creates a risk of obsolescence for legacy parts, the company is actively mitigating this by winning new high-content business. For the first nine months of 2025, they secured nearly $229 million in net new business awards, with a strong focus on battery-electric and hybrid vehicle platforms. This is the right move, but the transition is still a major competitive pressure.

Mitigation Strategies and Outlook

Management is not sitting still; they are fighting back with aggressive cost-saving measures and strategic wins. Their cost optimization initiatives delivered $18 million in savings in Q3 2025 alone. They also project that content per vehicle on hybrid platforms is about 80% higher than on traditional models, which is a powerful tailwind if they execute.

The company's strategy is clear: focus on operational excellence and higher-margin products for the future of mobility. You can read more about their corporate direction here: Mission Statement, Vision, & Core Values of Cooper-Standard Holdings Inc. (CPS).

Here is a snapshot of the core financial risks and the company's counter-measures:

Your next step should be to track Q4 2025 results closely to see the actual financial impact of that aluminum supply chain issue and confirm if the cost-savings initiatives can hold margin expansion despite the revenue dip.

Growth Opportunities

Cooper-Standard Holdings Inc. (CPS) is finally moving past its brutal post-pandemic turnaround, and the 2025 data confirms the pivot is working. The direct takeaway for you is that operational efficiency gains are translating into real margin expansion, which, combined with a strategic focus on electric vehicle (EV) content, sets the stage for meaningful bottom-line growth.

The core of this optimism is the company's ability to execute on cost rationalization. We saw a crucial milestone in the first quarter of 2025, where the company reported a positive GAAP net income of $1.6 million, a sharp reversal from the net loss of $31.7 million in the same period a year prior. Here's the quick math: Lean initiatives in purchasing and manufacturing alone contributed $20 million in savings in Q1 2025, plus another $8 million from restructuring efforts. That's how you start fixing a balance sheet.

This operational success has led management to raise its full-year profitability outlook. The updated 2025 guidance projects Adjusted EBITDA to be between $200 million and $210 million, an increase from the prior guidance of $180.7 million. Still, the full-year sales forecast was slightly tightened to a range of $2.68 billion to $2.72 billion, showing that the growth story is currently more about margin improvement than top-line volume. That's a defintely healthier way to grow.

The biggest long-term growth driver is the shift to electrification. Cooper-Standard Holdings Inc. has a clear competitive advantage here because its product portfolio-sealing, fluid transfer, and anti-vibration systems-is critical regardless of the powertrain. In fact, a hybrid vehicle can represent up to an 80% increase in average content opportunity per vehicle for the company, and even pure battery electric vehicles (BEVs) offer a 20% content increase over traditional internal combustion engines (ICE). The company is winning business in this area.

• Win new business awards: Year-to-date through Q3 2025, the company secured $228.5 million in net new business awards, with the majority tied to hybrid and BEV platforms.
• Strategic partnerships: A collaboration with Renault Group on the Emblème project aims to introduce sustainable sealing systems that cut CO2 emissions, validating Cooper-Standard Holdings Inc.'s innovative technology.
• Competitive edge: World-class design and engineering capabilities become even more valuable as vehicle complexity increases, helping them win market share and drive toward long-term segment revenue growth targets of 4-8%.

What this estimate hides is the potential impact of a 2025 debt refinancing, which could significantly lower interest expense and further boost profitability, turning a margin story into a strong earnings story. For a deeper dive into the balance sheet mechanics, you can read our full analysis at Breaking Down Cooper-Standard Holdings Inc. (CPS) Financial Health: Key Insights for Investors.

Next Step: Owner/Analyst: Model a scenario where the 2025 Adjusted EBITDA hits the high end ($210 million) and the debt is refinanced at a 300-basis-point lower rate to project 2026 Free Cash Flow by month-end.