Cooper-Standard (CPS) Financials

Cooper-Standard’s latest quarter shows a clear deterioration in profitability and cash generation compared with late 2025, while the balance sheet remains highly leveraged and equity stays deeply negative. In Q1 2026, the company generated $686.4 million of revenue, but it posted a net loss of $33.3 million and negative operating cash flow of $69.2 million. That is a sharp reversal from Q4 2025, when Cooper-Standard reported $3.2 million of net income and $56.2 million of operating cash flow.

Top-line trends have been fairly stable overall, but not meaningfully growing. Revenue in Q1 2026 was up modestly versus Q1 2025, but below Q4 2025 and below most of 2025’s quarters. Over the last four quarters, sales have generally ranged from about $667 million to $706 million, suggesting a mature, cyclical business without strong organic growth momentum.

Profitability remains uneven. Gross profit in Q1 2026 was $82.4 million, but operating expenses were high at $58.4 million, including $4.6 million of restructuring charges. Operating income fell to $24.1 million, yet the company still lost money below the operating line because of $53.1 million in net other expense, driven mainly by interest-related costs and other expenses.

The most concerning issue remains the capital structure. At March 31, 2026, total liabilities were $2.0 billion versus total assets of $1.85 billion, and common equity was negative $115.3 million. Long-term debt alone was about $1.10 billion, which makes the company sensitive to interest rates, refinancing conditions, and any slowdown in operating performance.

Cash generation weakened materially in Q1 2026. Operating cash flow was negative despite non-cash add-backs from depreciation and amortization. That was a big step down from the prior quarter’s positive operating cash flow and suggests the business is still working through working-capital pressure and/or operating volatility.

• Revenue in Q1 2026 held near recent quarterly levels, indicating the business is still maintaining a sizable sales base.
• Q1 2026 gross profit was positive at $82.4 million, showing the core manufacturing model still produces margin before overhead and financing costs.
• Operating income was positive at $24.1 million in Q1 2026, so the core operations were profitable before interest and other items.
• Cash and equivalents rose to $118.5 million at March 31, 2026 from $109.5 million at year-end 2025, giving the company some near-term liquidity cushion.
• The company refinanced actively in Q1 2026, with roughly $1.09 billion of debt issued and $1.07 billion repaid, suggesting ongoing access to financing.
• Revenue has been fairly range-bound over the last four quarters, with no strong evidence of sustained growth or decline.
• Depreciation and amortization remain sizable, which supports reported EBITDA-like earnings but also reflects a capital-intensive business model.
• Accounts receivable and inventory remain large relative to sales, so working-capital management will continue to matter for cash flow.
• Q1 2026 net loss widened to $33.3 million from a $3.2 million profit in Q4 2025.
• Operating cash flow turned sharply negative at $69.2 million in Q1 2026, compared with positive $56.2 million in Q4 2025.
• Interest expense and other non-operating costs overwhelmed operating profit, resulting in a $53.1 million loss below the operating line.
• Total liabilities of $2.0 billion exceed total assets of $1.85 billion, and equity remains negative.
• The company continues to record restructuring charges, indicating it is still restructuring rather than operating from a position of strength.

Bottom line: Cooper-Standard is showing some ability to generate operating profit, but leverage, interest burden, and weak cash flow continue to overshadow those gains. For retail investors, this remains a turnaround-and-balance-sheet story more than a steady compounder, and the next few quarters of cash flow and debt management will be critical.