Auto supplier Cooper-Standard reports 2.9% sales growth and improved gross margin but lower adjusted EBITDA due to non-recurring royalty payments.
Cooper-Standard posted first-quarter sales of $686.4 million, up 2.9% year-over-year, with gross margin expanding to 12.0% despite inflation and production challenges. Adjusted EBITDA declined to $51 million, primarily due to $10 million in non-recurring royalty payments included in the prior-year period.
The company secured $128 million in net new business awards during the quarter and remains on track to meet full-year targets. Liquidity improved to $286 million after refinancing, which also reduced annual cash interest by about $6 million and extended debt maturities to 2031.
Management reiterated confidence in long-term growth, targeting more than a doubling of its Fluid Handling business over the next five to seven years. Operational performance remained strong, with 99% green customer scorecards for quality and service.