Cooper-Standard Holdings Inc. Q3 FY2024 earnings call

• Product Quality: 98% of customer scorecards green in Q3, 97% for new program launches. • Safety: Best ever safety performance in Q3 with total incident rate 0.20, 29 plants had zero incidents, Safety Month activities with new training videos. • Sustainability: Recognized by EcoVadis for 8th year with silver medal, 88th percentile in sustainability. • Cost Optimization: $15M savings in Q3 from lean initiatives, $10M from restructuring, on track for $40M-$45M annual savings. • New Business: Awarded $44M net new business in Q3 2024.

No detailed breakdown of product segment financial performance provided in the transcript. However, overall sales for third quarter 2024 were $685.4 million, down 6.9% y-o-y. Adjusted EBITDA was $46.1 million in Q3 2024 vs $79.1 million in Q3 2023.

• Full year sales expected $2.70 billion to $2.75 billion. • Adjusted EBITDA range $180 million to $195 million, midpoint higher than initial guidance. • Confident in achieving double-digit return on invested capital by 2025. • CapEx guidance around $50M for current year, likely similar next year.

• Lower production volumes. • Unfavorable foreign exchange rates. • Persistent inflation. • Impact of macroeconomic conditions on global markets.

Q: What needs to go right for you to get to the double-digit margin by 2025?

A: Continued execution, manufacturing plant performance, and cost reductions.

Q: Is there anything to mitigate FX impact?

A: Hedging programs, customer recovery programs, and FX headwinds expected to tail off in Q4.

Q: Plans for debt refinancing?

A: Non-call provisions on notes expire in Q1 2025, looking to lower interest costs.

Q: Europe business and EBITDA positivity?

A: Positive in both North America and Europe, doing well with Chinese domestic manufacturers.

Q: Drivers of fourth quarter guidance?

A: Manufacturing/purchasing initiatives, restructuring savings, and normalized compensation.