Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 7

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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%10.4 %

* Net of customer price adjustments, including recoveries.

** Net of savings from 2024 restructuring initiatives.

The change in cost of products sold was impacted by manufacturing and purchasing savings through lean initiatives, favorable foreign exchange and savings from prior year restructuring initiatives, partially offset by unfavorable volume and mix, net of recoveries, higher inflation of labor and overhead, and increased tariff expense. The Company’s material portion of cost of products sold was approximately 53% and 51% of total cost of products sold for the six months ended June 30, 2025 and 2024, respectively.

Gross profit for the six months ended June 30, 2025 increased $25.6 million compared to the six 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, higher inflation of labor and overhead, and tariff expense incurred but not yet recovered.

Selling, Administration and Engineering Expenses. Selling, administration and engineering expenses for the six months ended June 30, 2025 were $102.4 million, or 7.5% of sales, compared to $107.8 million, or 7.8% of sales for the six months ended June 30, 2024. The decrease was primarily due to lower compensation-related costs driven by savings from prior year restructuring initiatives.

Restructuring Charges. Restructuring charges for the six months ended June 30, 2025 decreased $14.0 million compared to the six 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 six months ended June 30, 2024 related to the termination of the aforementioned U.S. pension plan. See Note 9. “Pensions and Postretirement Benefits Other Than Pensions” to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for additional information.

Other Income, Net. Other income,