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

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 by higher customer volumes, favorable product mix and improved customer recoveries. The foreign currency exchange variance was driven by a $2.5 million unfavorable impact of the Korean Won and a $1.9 million unfavorable impact of the Brazilian Real, partially offset by a $2.2 million favorable impact of all other currencies.

Segment adjusted EBITDA

Nine Months Ended September 30,Variance Due To:20252024ChangeVolume/Mix*Foreign ExchangeCost Decreases/(Increases)**(dollar amounts in thousands)Segment adjusted EBITDASealing Systems$103,510 $86,310 $17,200 $(16,937)$(2,888)$37,025 Fluid Handling Systems77,008 50,353 26,655 (2,698)17,598 11,755 

* Net of customer price adjustments, including recoveries.

** Net of savings from 2024 restructuring initiatives.

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 primarily driven by a $4.0 million unfavorable impact of the Canadian Dollar. The cost decreases were driven by $37.4 million of manufacturing and purchasing savings through lean initiatives and $9.4 million of all other operational savings, primarily from prior year restructuring actions. These savings were partially offset by $9.8 million of unfavorable inflation in labor and other operational costs.

Fluid Handling Systems. The variance in volume and mix, including customer price adjustments, was driven by lower customer volumes and unfavorable product mix. The foreign currency exchange variance was primarily driven by a $16.3 million favorable impact of the Mexican Peso. The cost decreases were driven by $20.1 million of manufacturing and purchasing savings through lean initiatives. These savings were partially offset by $8.3 million of unfavorable inflation in labor and other operational costs.

Liquidity and Capital Resources

Short and Long-Term Liquidity Considerations and Risks

The sources to fund our ongoing working capital, capital expenditures, debt service and other funding requirements are a combination of cash flows from operations, cash on hand, borrowings under our senior asset-based revolving credit facility (“ABL Facility”) and receivables factoring. We utilize intercompany loans and equity contributions to fund our worldwide operations. However, certain country-specific regulations may impose restrictions or result in increased costs when repatriating 

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funds. See Note 7.