Cooper-Standard Q3 2026: A Massive EPS Miss and a Guidance Cut

Cooper-Standard posted an adjusted loss of $0.11 per share for the third quarter, missing the $1.18 consensus estimate by a wide margin. Revenue came in at $708.6 million, slightly below the $714.7 million analysts had expected, though it still edged 1.9% higher compared with a year earlier. That surface-level revenue resilience masked a much more troubled picture underneath.

The GAAP numbers were considerably worse than the adjusted figures suggest. Restructuring charges of $19.2 million drove the net loss to $20.4 million for the quarter, more than double the $7.6 million loss recorded in the same period a year ago. Gross profit fell 10.7% year over year, and operating income dropped roughly 61%, as higher material costs and general inflation more than offset manufacturing efficiencies and lower selling, general and administrative expenses.

The cash situation deserves particular attention. Operating cash flow fell to $5.2 million from $38.6 million in the prior-year quarter, an 86% decline. Capital expenditures rose to $16 million, pushing free cash flow to negative $10.75 million. With cash and equivalents down nearly 27% year over year to $112.3 million, and shareholders' equity sitting at negative $156.4 million, the company has limited cushion if cost pressures persist.

Management responded by cutting full-year 2026 adjusted EBITDA guidance to $235 to $245 million from a prior range of $265 to $295 million. Full-year sales guidance was tightened to $2.75 to $2.85 billion. CEO Jeffrey Edwards attributed the shortfall directly to commodity prices and general inflation running above expectations, and said the company is working with customers to refine commercial agreements and accelerate cost recoveries.

There are some forward-looking bright spots. Cooper-Standard booked $148.8 million in net new business awards during the quarter, including $28.2 million on battery electric or full-hybrid platforms, bringing the year-to-date total to $395.1 million. The company also managed to outgrow a 2.3% decline in global light vehicle production through favorable volume, mix and pricing. Whether new business momentum can outpace the commodity and inflation headwinds is the central question heading into the fourth quarter.