Cooper-Standard has revealed its first-quarter achievements, reporting a notable increase in sales and an improved gross margin, setting a positive trajectory for the year. Despite encountering industry challenges such as production disruptions and persistent inflation, the company remains confident in its ability to achieve or surpass its annual financial objectives. This optimistic outlook is bolstered by the strategic securing of new business contracts and a strengthened financial position following a successful debt refinancing.

During the first quarter of 2026, Cooper-Standard demonstrated a 2.9% rise in sales, reaching $686.4 million, while its gross margin saw an improvement to 12.0%. John Banas, the Executive Vice President and Chief Financial Officer, noted that this margin enhancement was particularly impressive given the prevailing production volume challenges in North America. Although adjusted EBITDA experienced a slight decrease to $51 million, this was primarily due to the non-recurrence of approximately $10 million in royalty payments received in the prior year. Excluding this comparative factor, both adjusted EBITDA and its margin would have shown improvement.

The company's liquidity was significantly enhanced through a recent refinancing initiative, resulting in approximately $286 million in available funds by the quarter's end. This refinancing is projected to reduce annual cash interest expenses by about $6 million and has extended note maturities to 2031, providing Cooper-Standard with greater financial flexibility. Furthermore, the company secured $128 million in net new business awards during the first quarter, surpassing its initial projections and moving closer to its annual goal of over $400 million in new business. A substantial portion of these awards, roughly 60%, came from its Fluid Handling sector, with the majority of new business originating from North America and China.

Chairman and Chief Executive Officer Jeff Edwards highlighted the company's strong operational performance at the beginning of 2026, noting that customer satisfaction scores for quality, service, and new program launches were consistently high, at 99% and 97% green, respectively. He also praised the company's safety record, which reported a total incident rate of 0.18 reportable incidents per 200,000 hours worked, significantly below the industry benchmark. Edwards expressed strong confidence in the company's long-term strategy to expand its Fluid Handling business, aiming to more than double its size within the next five to seven years, particularly benefiting from growth in hybrid vehicle programs.

Cooper-Standard implemented $17 million in savings from lean initiatives and other cost-reduction programs, alongside an additional $2 million from prior restructuring efforts. These savings helped offset various cost pressures, including $7 million from unfavorable volume and mix, $7 million from increased wages and inflation, and $2 million from unfavorable foreign exchange rates. Despite facing macroeconomic uncertainties, the company is optimistic that certain challenges encountered in the first half of the year could transform into opportunities by the latter half, enabling it to maintain focus on delivering customer value and executing strategic plans.

In summary, Cooper-Standard's first-quarter financial results underscore its resilience and strategic foresight in a dynamic global market. The company’s ability to increase sales, improve gross margins, and secure significant new business, coupled with a robust liquidity position, positions it favorably for continued growth and the achievement of its ambitious long-term objectives.