NYSE:CPS
Cooper-Standard Holdings Inc.
A premier global supplier of automotive sealing and thermal management systems driving vehicle efficiency and safety.
Key Metrics
Investment Thesis
Bull Case
The dramatic reduction in net loss from -$217.8M in 2022 to a mere -$4.3M in 2025 signals a strong operational turnaround and potential path to profitability. Positive operating cash flow of $64.4M demonstrates the business can generate liquidity even without current accounting profits, providing a buffer for R&D and expansion.
Bear Case
Investors should remain cautious due to the company's negative shareholders' equity and retained earnings deficit of -$474.7M, which reflects long-term capital erosion. The significant non-operating losses exceeding $100M in recent periods suggest structural cost issues or strategic impairments that could persist despite the recent loss reduction.
About Cooper-Standard Holdings Inc.
Cooper-Standard Holdings Inc. is a global leader in automotive sealing and thermal management solutions, serving OEMs across North America, Europe, and Asia. The company specializes in high-performance gaskets, seals, and cooling system components essential for modern vehicle efficiency and safety. With operations spanning the entire automotive supply chain, CPS delivers critical parts that enhance engine performance and reduce emissions.
Analysis
Management Discussion
Despite a narrowing loss in 2025 to just $4.3M compared to significant deficits in previous years, Cooper-Standard continues to operate with negative net profit and a total shareholders' equity deficit of $91.6M. The company generated positive operating cash flow of $64.4M, yet this was partially offset by non-cash adjustments totaling $205.1M, suggesting complex accounting dynamics or one-time items affecting the bottom line.
Industry Overview
The global automotive parts industry is undergoing a rapid transformation driven by the electrification of vehicles and stricter emission regulations. Companies must innovate quickly to provide thermal management solutions for battery electric vehicles while maintaining efficiency for hybrid powertrains. Consolidation and supply chain resilience are becoming critical success factors in this highly competitive sector.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $0 | $0 | $2.73B | $2.74B |
| Cost of Revenue | $2.40B | $2.53B | $2.43B | $2.41B |
| Gross Profit | $129.8M | $290.8M | $302.9M | $327.5M |
| Operating Expenses | $234.8M | $244.7M | $233.1M | $240.9M |
| Operating Income | $-105.0M | $46.0M | $69.8M | $86.6M |
| R&D | $80.5M | $84.1M | $82.8M | $80.6M |
| G&A | $199.5M | $215.7M | $207.6M | $214.4M |
| Stock-Based Comp | $3.3M | $7.7M | $9.2M | $15.2M |
| D&A | $122.5M | $109.9M | $103.6M | $98.0M |
| Depreciation | $115.8M | $103.1M | $97.1M | $91.7M |
| Amortization | $6.7M | $6.8M | $6.5M | $6.3M |
| Other OpEx | $-45.2M | $-55.1M | $-57.3M | $-54.1M |
| Non-Operating Income | $-95.5M | $-240.4M | $-171.3M | $-110.1M |
| Pre-Tax Income | $-200.5M | $-194.4M | $-101.5M | $-23.5M |
| Income Tax | $17.3M | $8.9M | $-23.3M | $-19.2M |
| Continuing Ops | $-217.8M | $-203.3M | $-78.1M | $-4.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-217.8M | $-203.3M | $-78.1M | $-4.3M |
| Minority Interest | $-2.4M | $-1.3M | $616.0K | $-149.0K |
| Net to Common | $-215.4M | $-202.0M | $-78.7M | $-4.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $945.6M | $900.6M | $805.3M | $881.1M |
| Cash & Equivalents | $186.9M | $154.8M | $170.0M | $191.7M |
| Accounts Receivable | $358.7M | $380.6M | $310.7M | $334.3M |
| Inventory | $157.8M | $146.8M | $142.4M | $154.2M |
| Other Current Assets | $242.3M | $218.4M | $182.1M | $200.9M |
| Long-Term Assets | $1.02B | $971.7M | $927.8M | $952.1M |
| PP&E (Net) | $642.9M | $608.4M | $539.2M | $523.5M |
| Goodwill | $142.0M | $140.8M | $140.4M | $140.7M |
| Operating Leases | $94.6M | $91.1M | $87.3M | $83.5M |
| Other LT Assets | $138.4M | $131.3M | $160.9M | $204.4M |
| Total Assets | $1.96B | $1.87B | $1.73B | $1.83B |
| Current Liabilities | $631.6M | $653.2M | $576.8M | $678.4M |
| Accounts Payable | $338.2M | $334.6M | $295.2M | $337.3M |
| Current Leases | $20.8M | $18.6M | $18.9M | $18.4M |
| Deferred Revenue | $15.0K | — | — | $0 |
| Other Current Liab | $153.1M | $183.1M | $146.1M | $208.5M |
| Long-Term Liabilities | $1.23B | $1.31B | $1.29B | $1.25B |
| LT Operating Leases | $77.6M | $76.5M | $71.9M | $69.8M |
| Other LT Liab | $1.15B | $1.23B | $1.22B | $1.18B |
| Total Liabilities | $1.86B | $1.96B | $1.87B | $1.92B |
| Shareholders' Equity | $101.2M | $-89.7M | $-133.4M | $-91.6M |
| Retained Earnings | $-189.8M | $-391.8M | $-470.6M | $-474.7M |
| AOCI | $-210.0M | $-201.7M | $-173.4M | $-133.1M |
| Total L&E | $1.96B | $1.87B | $1.73B | $1.83B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-217.8M | $-203.3M | $-78.1M | $-4.3M |
| Non-Cash Adjustments | $83.1M | $317.2M | $264.2M | $6.1M |
| Working Capital Changes | $98.5M | $3.3M | $-109.7M | $62.7M |
| Cash from Operations | $-36.1M | $117.3M | $76.4M | $64.4M |
| Cash from Investing | $-17.9M | $-65.0M | $-45.1M | $-45.6M |
| Debt Repayments | $4.2M | $2.1M | $2.5M | $2.3M |
| Cash from Financing | $-4.3M | $-81.1M | $-9.6M | $-4.0M |
| FX Effect | $-13.0K | $-918.0K | $-6.0M | $6.3M |
| Net Change in Cash | $-58.3M | $-29.7M | $15.6M | $21.2M |
| Beginning Cash | $251.1M | $192.8M | $163.1M | $178.7M |
| Ending Cash | $192.8M | $163.1M | $178.7M | $199.9M |
Frequently Asked Questions
How does Cooper-Standard Holdings Inc. make money?
The company's revenue is derived primarily from its Automotive Sealing Solutions segment, which includes gaskets, seals, and cooling system components. Additional streams include specialized Thermal Management Products for battery packs and electric motors, as well as aftermarket replacement parts for global OEMs. These segments collectively address the evolving needs of both internal combustion engine vehicles and the growing electric vehicle market.
What are the main risks for CPS?
The heavy reliance on the cyclical automotive industry exposes CPS to significant demand fluctuations during economic downturns or production slowdowns. Persistent negative net income and a substantial retained earnings deficit indicate ongoing profitability challenges that could impact credit ratings and financing costs. High exposure to foreign exchange rate volatility affects cash flows given the company's international operations and revenue mix.
What is CPS's competitive advantage?
Cooper-Standard leverages deep engineering expertise in material science to create custom sealing solutions that withstand extreme automotive conditions. Its extensive global manufacturing footprint ensures proximity to major auto clusters, minimizing logistics costs and lead times for high-volume OEM clients. The company's strong focus on sustainability and innovation positions it well to capture share in the electric vehicle supply chain.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.