The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true v ...

Cooper Standard Announces Pricing of $1.1 Billion of Senior Secured First Lien Notes [Accessibility Statement] Skip NavigationNORTHVILLE, Mich., Feb. 20, 2026 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS) ("Cooper Standard," "Company" or "we") today announced the pricing of the private offering by its wholly-owned subsidiary, Cooper-Standard Automotive Inc. (the "Issuer"), of $1,100.0 million in aggregate principal amount of 9.250% Senior Secured First Lien Notes due 2031 (the "Notes"). The Note ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Cooper Standard Announces Proposed Private Offering of $1.1 Billion of Senior Secured First Lien Notes [Accessibility Statement] Skip NavigationNORTHVILLE, Mich., Feb. 17, 2026 /PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS) ("Cooper Standard," "Company" or "we") today announced that its wholly-owned subsidiary, Cooper-Standard Automotive Inc. (the "Issuer"), intends, subject to market and other customary conditions, to offer $1.1 billion in aggregate principal amount of Senior Secured First Lien ...

Sales and Customers - In 2025, approximately 86% of Cooper Standard's sales were to OEMs, with major customers including Ford, GM, and Volkswagen[21]. - Sales to the three largest customers, Ford, GM, and Stellantis, represented approximately 56% of total sales for the year ended December 31, 2025[102]. - In 2025, approximately 86% of Cooper Standard's sales were original equipment sold directly to OEMs, while 14% were to Tier I and Tier II suppliers and non-automotive manufacturers[166]. - In 2025, about 59% of sales were generated in North America, highlighting the company's significant international operations[170]. - Approximately 78% of the company's sales in 2025 were attributable to products manufactured outside the United States, indicating significant international operations[97]. Financial Performance - Sales for the year ended December 31, 2025, increased by 0.4% to $2,740.9 million compared to $2,730.9 million in 2024, driven by favorable foreign exchange[202][204]. - Gross profit for 2025 was $327.5 million, an increase of 8.1% from $302.9 million in 2024, with a gross profit margin of 11.9% compared to 11.1% in 2024[202][208]. - Operating income for 2025 was $86.6 million, up from $69.8 million in 2024, reflecting a year-over-year increase of $16.8 million[202]. - The net loss attributable to Cooper-Standard Holdings Inc. for 2025 was $4.2 million, a significant improvement from a net loss of $78.7 million in 2024[202]. - Restructuring charges decreased by $3.6 million in 2025 compared to 2024, reflecting the impact of a cost optimization restructuring plan implemented in 2024[212]. Operations and Facilities - The company operates 108 facilities across 20 countries, employing around 22,000 people, including 4,000 contingent workers[20]. - Cooper Standard operates 108 facilities across 20 countries, with 65 predominantly manufacturing facilities and 43 designated for design, engineering, administrative, or logistics purposes[152]. - The company has joint ventures in multiple countries, including a 51% ownership in Cooper Standard Sealing (Guangzhou) Co. Ltd. in China, focusing on sealing and fluid transfer systems[50]. - The company utilizes joint ventures to enter new geographic markets, reducing capital investment and leveraging local knowledge[48]. Innovation and Product Development - Cooper Standard aims to achieve and sustain double-digit EBITDA margins and strong free cash flow generation as part of its financial strategy[26]. - The company has successfully utilized its Cooper Standard Operating System (CSOS) to achieve average annual savings of approximately $40 million over the past five years[27]. - The company has developed several innovative products, including the FlexiCore thermoplastic body seal and eCoFlow switch pump, which enhance performance and sustainability[32]. - Cooper Standard's innovations have received multiple industry awards, including the SAA Innovations in Lightweighting Award for FlexiCore in 2024[35]. - The company is focused on expanding its Industrial and Specialty Group (ISG) business to leverage its core product expertise in diverse markets[30]. - The company finalized the divestiture of its European technical rubber products business in 2023, indicating a strategic shift in its operations[25]. Sustainability and Corporate Responsibility - The company aims to achieve carbon neutrality in Europe by 2040 and globally by 2050, reflecting its commitment to sustainability[68]. - The company has been recognized on Newsweek's list of America's Most Responsible Companies for seven consecutive years, highlighting its commitment to corporate responsibility[67]. - The principal raw materials include rubber, carbon black, process oils, and plastic resins, with procurement strategies in place to manage costs and supply continuity[57]. Workforce and Diversity - Approximately 40% of the company's workforce were women in 2025, with women holding about 23% of leadership positions[63]. - The company has a workforce of approximately 22,000 employees, including 4,000 contingent workers, and maintains good relations with its employees[61]. Risks and Challenges - The company may experience difficulties managing product quality, timeliness, and associated costs related to new program launches[89]. - Significant disruptions in the automotive industry due to parts shortages and global supply chain constraints could adversely affect the company's operations and financial performance[83]. - The company faces aggressive pricing pressures from customers, which could negatively impact sales and profit margins[101]. - The company is highly dependent on the automotive industry, and a prolonged contraction in automotive sales could adversely affect its business[96]. - The company has significant exposure to risks associated with public health events, which could materially impact financial condition and operations[94]. - Work stoppages or labor disputes could negatively affect the company's operations and financial performance[84]. - The company relies on information technology systems, and disruptions could adversely affect its business and financial performance[86]. - The company may incur material losses and costs due to product liability and warranty claims, which could harm its reputation and customer trust[91]. - The company had total indebtedness of $1,104.6 million as of December 31, 2025, which could adversely affect its financial condition and ability to obtain future financing[115]. - The ability to borrow against the senior asset-based revolving credit facility is limited to the borrowing base, which could be affected by production shutdowns[111]. - The company may incur significant costs related to manufacturing facility closings or consolidations, negatively impacting cash flows and financial condition[105]. - The company may incur substantial additional indebtedness in the future, increasing risks associated with servicing existing debt[117]. - Variable rate indebtedness exposes the company to interest rate risk, potentially increasing debt service obligations if interest rates rise[118]. - Significant operating and financial restrictions imposed by debt instruments may limit the company's ability to raise additional financing or engage in strategic opportunities[121]. - The company faces potential adverse effects from changes in benchmark interest rates, which could impact future debt servicing[120]. - Working capital requirements may negatively affect liquidity, especially if cash provided by operating activities is insufficient[127]. - Foreign currency exchange rate fluctuations could materially impact operating results, particularly during periods of a strengthening U.S. Dollar[128]. - Impairment charges related to goodwill and long-lived assets could adversely affect financial results if indicators of impairment are identified[130]. - Underfunded pension plans may require cash contributions, reducing available cash for business operations; as of December 31, 2025, the U.S. SERP was underfunded by $9.8 million[131]. - Legal and regulatory proceedings may have an adverse impact on financial condition and results of operations, with potential for significant claims[137]. Market Trends and Economic Outlook - The global light vehicle production returned to moderate growth in 2025, driven primarily by strong production volume in China, despite declines in North America and Europe[172]. - In 2026, industry forecasts anticipate a 0.4% decline in global vehicle production compared to 2025, reflecting ongoing economic uncertainties[172]. - In North America, consumer confidence remains subdued, with certain indices near their lowest levels in over a decade, impacting overall economic activity[173]. - Economists at the IMF project that the U.S. economy will grow by 2.4% in 2026, while Canada and Mexico are expected to grow by 1.6% and 1.5%, respectively[173]. - The Eurozone economy is projected to grow by 1.3% in 2026, driven by rising real wages and increased household consumption[174]. - Brazil's economic growth rate is expected to slow to 1.6% in 2026, following two years of growth averaging 3.0%[176]. - The automotive supplier industry is experiencing increased competition, leading to a preference for stronger relationships with fewer suppliers[179]. - Suppliers are under pressure for price reductions, which is reducing overall profitability in the supply industry[181]. - Advancements in electric vehicle technologies and regulatory pressures are reshaping industry expectations, with continued growth in EV sales projected[182].

Core Insights - Cooper-Standard reported fourth-quarter 2025 sales of $672 million, a 1.8% increase from the previous year, driven by favorable foreign exchange effects that offset production volume reductions due to customer supply chain disruptions [1][8] - The company achieved its best operational performance in history in 2025, with significant improvements in safety, quality, and cost efficiency despite late-year production disruptions [3][6] Financial Performance - Fourth-quarter adjusted EBITDA decreased to $34.9 million (5.2% of sales) from $54.3 million (8.2% of sales) due to customer production disruptions and inflationary pressures [5][6] - For the full year 2025, sales totaled $2.74 billion, up 0.4% from 2024, with adjusted EBITDA rising to $209.7 million from $180.7 million in 2024 [8][9] - GAAP net loss improved to $4.2 million from a loss of $78.7 million in 2024, while adjusted net loss was $30.9 million, or $1.73 per diluted share [10][7] Cost Management and Efficiency - The company generated $64 million in savings from plant efficiency improvements and lean supply-chain initiatives, alongside an additional $18 million from salaried reductions [2][6] - Operating income improved by 24% year-over-year, despite facing inflationary headwinds and production disruptions [2][6] Future Outlook - Management anticipates approximately 3% sales growth and aims for a double-digit EBITDA margin in 2026, supported by $298 million in net new business, primarily related to electric and battery platforms [4][15] - The company expects revenue from Chinese OEMs to exceed 60% of its China revenue by 2030, with a projected compound annual growth rate of over 15% from 2025 to 2028 [17][16] Business Development - Cooper-Standard reported $298 million in net new business awards in 2025, with 74% related to value-add innovation and battery platforms [16][17] - The company has identified over 90% of its cost improvement commitments for 2026, marking the highest level in a decade [18] Operational Highlights - The company achieved a safety incident rate of 0.24 per 200,000 hours worked, below the world-class benchmark of 0.47, with 31 plants finishing the year with zero reportable incidents [2][6] - The top 10 programs for 2026 are expected to represent about 45% of planned revenue, with seven of those programs offering multiple powertrain options to mitigate risks [19]

Core Insights - The company reported strong operational performance in 2025, achieving a record operational performance despite facing inflationary pressures and supply chain disruptions [1][5] - The company received $298 million in net new business awards in 2025, which is expected to support profitable growth in the coming years [1][27] - The company achieved a 24% improvement in operating income for the year due to efficiency improvements and cost savings [2] Financial Performance - Fourth quarter 2025 sales reached $672 million, a 1.8% increase from 2024, despite production disruptions [7] - Full year 2025 sales totaled $2.74 billion, a 0.4% increase compared to 2024, driven by favorable foreign exchange and customer pricing adjustments [9][10] - Adjusted EBITDA for the full year 2025 was $209.7 million, up from $180.7 million in 2024, reflecting improved efficiencies and cost savings [10] Safety and Operational Excellence - The company achieved a safety incident rate of 0.24 per 200,000 hours worked in 2025, surpassing the previous best and well below the world-class benchmark [3] - 31 plants completed the year with a perfect safety record of zero reportable incidents, affirming the company's commitment to safety [3] Strategic Outlook - The company expects to continue building on its successes in 2025 to drive margin expansion and value for stakeholders in 2026 and beyond [5] - The company is optimistic about its growth strategy, particularly in the Fluid Handling Systems and Sealing Systems segments, with a focus on geographic expansion and innovation [21][22] - The company anticipates that revenue from Chinese OEMs will grow significantly, aiming to increase their share of total revenue from 36% to over 60% by 2030 [24][57] Cash Flow and Liquidity - The company ended 2025 with strong free cash flow of $44.6 million in the fourth quarter and positive free cash flow for the full year of $16.3 million [15] - Total liquidity at year-end was over $352 million, with cash on hand of $191.7 million and an undrawn revolving credit facility of $160.9 million [16][17] New Business and Innovation - The company received nearly $300 million in net new business awards in 2025, with 74% related to value-add innovations and battery electric or hybrid vehicle platforms [27][28] - The company expects to triple total sales to Chinese OEMs over the next five years, leveraging established relationships and technology [26][60]

Financial Data and Key Metrics Changes - In Q4 2025, sales totaled $672 million, a 1.8% increase compared to Q4 2024, despite disruptions in production volumes due to customer supply chain issues [9] - Full year 2025 sales reached $2.74 billion, a 0.4% increase from 2024, primarily driven by favorable foreign exchange and net customer pricing [11] - Adjusted EBITDA for Q4 2025 was $34.9 million, or 5.2% of sales, down from $54.3 million, or 8.2% of sales in Q4 2024, due to industry disruptions and inflationary costs [10] - For the full year 2025, adjusted EBITDA was $209.7 million, up from $180.7 million in 2024, reflecting improved manufacturing efficiencies and cost savings [12] Business Line Data and Key Metrics Changes - The company achieved $298 million in net new business awards in 2025, which is expected to support future profitable growth [7] - Cost savings of $64 million were generated from efficiency improvements and lean initiatives in the supply chain during 2025 [6] - The company reported a 24% improvement in operating income for the year, despite facing inflationary pressures [6] Market Data and Key Metrics Changes - The company anticipates a revenue growth rate of over 15% in China between 2025 and 2028, with expectations to triple total sales to Chinese OEMs globally over the next five years [25] - Chinese OEMs currently represent approximately 36% of revenue in China, with a target to increase this to over 60% by 2030 [24] Company Strategy and Development Direction - The company is focused on expanding its fluid handling systems segment geographically and leveraging growth trends in hybrid vehicles [22] - The sealing systems strategy aims to sustain operational excellence and leverage global expertise to drive profitable growth [23] - The company plans to continue investing in innovation and new product launches to enhance market share and customer value [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing successful execution of strategic plans and expected margin expansion [20] - The company expects to achieve a double-digit EBITDA margin for the full year in 2026, with the first quarter anticipated to be the weakest [30] - Management highlighted the importance of volume and mix as key factors influencing guidance for 2026, with a focus on maintaining strong relationships with customers [95] Other Important Information - The company ended 2025 with total liquidity of over $352 million, including $191.7 million in cash and $160.9 million available on its revolving credit facility [18] - Capital expenditures for 2025 were $48 million, or 1.8% of sales, consistent with the previous year [14] Q&A Session Summary Question: Is Lean a big contributor to the Adjusted EBITDA guidance? - Management indicated that it is more business as usual, with continuous improvement efforts ongoing [38] Question: Are new products included in the volume, mix, and price adjustments? - Yes, all new business booked in 2025 is included in the adjustments [39] Question: Is the F-Series production back to normal? - Management noted that production is ramping up, but specifics were not disclosed [44] Question: What is the urgency for refinancing before debt maturities? - Management prefers to complete refinancing before the first lien and third lien notes come current [63] Question: What are the biggest variables impacting guidance for 2026? - Volume and mix are the primary factors, with raw material fluctuations being less of a concern due to effective contracts [95]

Financial Data and Key Metrics Changes - In Q4 2025, sales totaled $672 million, a 1.8% increase compared to Q4 2024, despite disruptions from a customer supply chain issue [9] - Full year 2025 sales reached $2.74 billion, a 0.4% increase from 2024, primarily driven by favorable foreign exchange and net customer pricing [11] - Adjusted EBITDA for Q4 2025 was $34.9 million, or 5.2% of sales, down from $54.3 million, or 8.2% of sales in Q4 2024 [10] - Full year adjusted EBITDA was $209.7 million, up from $180.7 million in 2024, reflecting improved manufacturing efficiencies and cost savings [12] Business Line Data and Key Metrics Changes - The company achieved $298 million in net new business awards in 2025, supporting future growth [7] - Cost savings of $64 million were generated from efficiency improvements and lean initiatives in the supply chain [6] - The company reported a 24% improvement in operating income for the year, despite inflationary pressures [6] Market Data and Key Metrics Changes - The company expects total revenue attributable to China to grow at a CAGR of over 15% between 2025 and 2028, with plans to increase revenue from Chinese OEMs to over 60% by 2030 [25][24] - North American production volumes are projected to decrease from 15.3 million in 2025 to 15 million in 2026, while European volumes are expected to decline from 17 million to 16.9 million [72] Company Strategy and Development Direction - The company aims to leverage growth trends in hybrid vehicles and expand geographically with key fast-growing customers [22] - The strategy for the fluid handling systems segment focuses on launching innovative products and technologies [22] - The sealing systems strategy emphasizes operational excellence and leveraging global expertise to drive profitable growth [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting increased profitability and margin expansion despite a challenging production environment [30] - The company is confident in its ability to expand margins even in a stable production environment, with a target of achieving a double-digit EBITDA margin for the full year [30] - Management highlighted the importance of volume and mix as key factors influencing guidance for 2026 [91] Other Important Information - The company ended 2025 with total liquidity of over $352 million, including $191.7 million in cash and $160.9 million available on its revolving credit facility [18] - Capital expenditures for 2025 were $48 million, consistent with the previous year, focusing on customer launch readiness and new business growth [14] Q&A Session Summary Question: Is Lean a big contributor to the Adjusted EBITDA guidance? - Management indicated that it is more business as usual, with continuous improvement efforts ongoing [38] Question: Are new products included in the volume, mix, and price adjustments? - Yes, all new business booked in 2025 is included in the adjustments [39] Question: Is the F-Series production back to normal? - Management noted that production is ramping up, but specifics were not disclosed [44][45] Question: What is the urgency for refinancing before debt maturities? - Management prefers to complete refinancing before the first lien and third lien notes come current [62] Question: What are the key variables impacting guidance for 2026? - Volume and mix are the primary factors, with raw material fluctuations being less of a concern due to effective contracts [91]

Financial Data and Key Metrics Changes - In Q4 2025, sales totaled $672 million, an increase of 1.8% compared to Q4 2024, despite production disruptions [10] - Full year 2025 sales reached $2.74 billion, a 0.4% increase from 2024, primarily due to favorable foreign exchange and net customer pricing [12] - Adjusted EBITDA for Q4 2025 was $34.9 million, or 5.2% of sales, down from $54.3 million, or 8.2% of sales in Q4 2024 [11] - Full year adjusted EBITDA for 2025 was $209.7 million, up from $180.7 million in 2024 [13] - The net loss for the full year improved to $4.2 million from a net loss of $78.7 million in 2024 [13] Business Line Data and Key Metrics Changes - The company achieved $64 million in cost savings from efficiency improvements and lean initiatives in 2025 [6] - The fluid handling systems segment is focused on geographic expansion and innovation, particularly in hybrid vehicles [22] - The sealing systems segment aims to leverage engineering expertise for profitable growth in existing and new markets [24] Market Data and Key Metrics Changes - Chinese OEMs currently represent approximately 36% of revenue, with a target to increase this to over 60% by 2030 [25] - The company expects total revenue attributable to China to grow at a CAGR of over 15% between 2025 and 2028 [26] Company Strategy and Development Direction - The company is focused on operational excellence and margin expansion, with a strategic plan that includes geographic expansion and innovation [21] - Investments in new products and technologies are expected to drive growth, particularly in the hybrid and electric vehicle segments [27] - The company aims to triple its Return on Invested Capital by 2028 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting increased profitability and margin expansion despite a predicted decline in industry production volumes [30] - The company is confident in its ability to leverage future increases in production volume and expand into high-growth markets [31] Other Important Information - The company ended 2025 with total liquidity of over $352 million, including $191.7 million in cash [19] - Capital expenditures for 2025 were $48 million, or 1.8% of sales, consistent with the previous year [14] Q&A Session Summary Question: Is Lean a big contributor to the Adjusted EBITDA guidance? - Management indicated that it is more business as usual, with continuous improvement efforts ongoing [37] Question: Are new products included in the volume, mix, and price adjustments? - Yes, all new business booked in 2025 is included in the projections [38] Question: What is the status of the F-Series production? - Management noted that production is ramping up, but specifics were not disclosed [43] Question: What are the expectations for free cash flow in 2026? - Management expects positive free cash flow, with some working capital tied up due to new business launches [76] Question: What contract protections exist with Chinese customers? - The company has built strong relationships with Chinese OEMs, ensuring product quality and innovation [89]