Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 114

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 114
---
 September 30, 2024. The effective tax rate for the nine months ended September 30, 2025 differed from the effective tax rate for the nine months ended September 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, and other permanent items.

30

Segment Results of Operations

Our business is organized in two reportable segments: Sealing Systems and Fluid Handling Systems. All other business activities are reported in Corporate, eliminations and other. The Company uses segment adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. We have defined adjusted EBITDA as net income before interest, taxes, depreciation, amortization, restructuring expense, and special items.

The following tables present sales and segment adjusted EBITDA for each of the reportable segments.

Three Months Ended September 30, 2025 Compared with Three Months Ended September 30, 2024 

Sales

Three Months Ended September 30,Variance Due To:20252024ChangeVolume/Mix*Foreign Exchange(Dollar amounts in thousands)Sales to external customersSealing Systems$348,778 $353,365 $(4,587)$(10,665)$6,078 Fluid Handling Systems328,566 313,739 14,827 13,195 1,632 

* Net of customer price adjustments, including recoveries.

Sealing Systems. The variance in volume and mix, including customer price adjustments, was driven by lower customer volumes, unfavorable product mix and reduced customer recoveries. The foreign currency exchange variance was driven by a $6.1 million favorable impact of the Euro.

Fluid Handling Systems. The variance in volume and mix, including customer price adjustments, was driven by higher customer volumes, favorable product mix and improved customer recoveries. The foreign currency exchange variance was driven by a $1.8 million favorable impact of the Euro, partially offset by a $0.2 million unfavorable impact of all other currencies.

Segment adjusted EBITDA

Three Months Ended September 30,Variance Due To:20252024ChangeVolume/Mix*Foreign ExchangeCost Decreases/(Increases)**(Dollar amounts in thousands)Segment adjusted EBITDASealing Systems$30,853 $29,904 $949 $(8,828)$(681)$10,458 Fluid Handling