Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 112

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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 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, net for the six months ended June 30, 2025 increased $14.0 million compared to the six months ended June 30, 2024. The increase was primarily driven by $10.3 million of income recognized in connection with certain royalty settlements.

Income Tax Expense. Income tax expense for the six months ended June 30, 2025 was $10.8 million on losses before income taxes of $10.9 million compared to income tax expense of $12.2 million on losses before income taxes of $95.3 million for the six months ended June 30, 2024. The effective tax rate for the six months ended June 30, 2025 differed from the effective tax rate for the six months ended June 30, 2024 primarily due to the geographic mix of pre-tax losses, the inability to record a tax benefit for pre-tax losses in the U.S. and certain foreign jurisdictions due to valuation allowances, adjustment to uncertain tax positions, and other permanent items.