Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 59

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 charges for the nine months ended September 30, 2025 decreased $11.9 million compared to the nine months ended September 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 period. 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 $44.6 million was incurred in the nine months ended September 30, 2024 related to the 2024 termination of the 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 nine months ended September 30, 2025 increased $17.0 million compared to the nine months ended September 30, 2024. The increase was primarily driven by $10.3 million of income recognized in connection with certain royalty settlements and lower foreign currency losses.

Income Tax Expense. Income tax expense for the nine months ended September 30, 2025 was $14.6 million on earnings before income taxes of $7.2 million compared to income tax expense of $15.1 million on losses before income taxes of $103.3 million for the nine months ended 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.

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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