Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 5

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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24,164 Gross profit percentage of sales13.2 %11.7 %

* Net of customer price adjustments, including recoveries.

** Net of savings from 2024 restructuring initiatives.

28

Cost of products sold is primarily comprised of materials, labor, manufacturing overhead, freight, depreciation and other direct operating expenses. Among these, materials represent the largest component, accounting for approximately 53% and 51% of total cost of products sold for the three months ended June 30, 2025 and June 30, 2024 respectively. The change in cost of products sold was impacted by manufacturing and purchasing savings through lean initiatives, and savings from prior year restructuring initiatives, partially offset by unfavorable volume and mix, net of recoveries, higher inflation of labor and overhead, unfavorable foreign exchange and increased tariff expense.

Gross profit for the three months ended June 30, 2025 increased $10.1 million compared to the three months ended June 30, 2024. The change was driven by manufacturing and purchasing savings through lean initiatives, savings from prior year restructuring initiatives and favorable foreign exchange, partially offset by unfavorable volume and mix, net of recoveries, and higher inflation of labor and overhead.

Selling, Administration and Engineering Expenses. Selling, administration and engineering expenses include administrative expenses as well as product engineering and design and development costs. Selling, administration and engineering expenses for the three months ended June 30, 2025 were $51.2 million, or 7.3% of sales, compared to $52.4 million, or 7.4% of sales, for the three months ended June 30, 2024. The decrease as a percentage of sales was primarily due to lower compensation-related costs driven by savings from prior year restructuring initiatives.

Restructuring Charges. Restructuring charges for the three months ended June 30, 2025 decreased $14.9 million compared to the three months ended June 30, 2024. The decrease was primarily driven by a cost optimization restructuring plan that was implemented in the second quarter of 2024, resulting in higher restructuring-related expenses recognized in the prior year. See Note 4. “Restructuring” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for additional information.

Pension Settlement Charge. A one-time, non-cash pension settlement charge of $46.8 million was incurred in the three months ended June 30, 2024 related to