CPS

New in FY2025

• Operational Risks Changes in U.S. or foreign trade policies, including the imposition of tariffs on imported goods and other trade restrictions, as well as uncertainty over such actions, may adversely impact our business and financial performance.
• We obtain raw materials, components and other products and services from numerous suppliers and other vendors throughout the world.
• Changes in laws or policies governing the terms of foreign trade and, in particular, increased trade restrictions, tariffs or taxes on imports from countries where we manufacture products or from where we import products or raw materials could have an impact on our competitive position, business operations and financial performance.
• Recently, the U.S. government announced substantial changes in U.S. trade policy and U.S. trade agreements, including the initiation of tariffs and trade restrictions on certain foreign goods.
• In response to these tariffs, certain foreign governments subject to such tariffs, including China, have retaliated by imposing tariffs on certain U.S. goods, which could represent near-term challenges to our industry.
• Increased retaliatory tariffs imposed by other countries on U.S. exports, further increases in U.S. tariffs, and the uncertainties surrounding domestic and foreign tariffs could require us to increase our prices, which could decrease demand for our products, and in certain cases, the Company may be unable to pass along such increased costs to our customers.
• We are actively monitoring and evaluating the development and potential impacts of tariffs on our supply chain and results of operations.
• While the Company continues to assess these developments, it may not be able to fully mitigate the effects of any prolonged tariffs or trade disputes.
• Further, additional trade restrictions could be adopted with little to no advanced notice, and we may not be able to effectively mitigate the adverse impacts from those such measures.
• Political uncertainty surrounding trade or other international disputes also could have a negative impact on consumer confidence and willingness to spend money, which could impair our business.
• We cannot predict whether, and to what extent, there may be changes to international trade agreements, such as those between the U.S. and China, or whether, or to what extent, additional tariffs, taxes on imports or other restrictions will be changed or imposed by the U.S. or by other countries.
• Any of these events could increase the cost of our products, create disruptions to our supply chain and impair our ability to effectively operate and compete in the countries where we do business.
• Our business, financial condition and results of operations may be adversely impacted by the effects of inflation.
• Raw material costs have recently been volatile which has been further exacerbated by the changes to U.S. policies related to global trade and increased tariffs and trade restrictions.
• The principal raw materials to produce our products include rubber, carbon black, process oils, and plastic resins.
• Material costs represented approximately 52% of our total cost of products sold in 2025.
• The costs and availability of raw materials and manufactured components could continue to fluctuate due to factors beyond our control, such as other geopolitical events and the effects of climate change.
• Changes in global temperatures, weather patterns, and the frequency and severity of extreme weather and natural disasters may adversely affect the availability or pricing for certain raw materials.
• Our operations may also be disrupted by other labor issues, including absenteeism, public health events and government restrictions; major equipment failure with prolonged downtime or a complete loss of critical equipment where either no other comparable equipment exists or the remaining equipment does not have enough capacity to pick up the demand; plant closures or disruptions caused by natural or other disasters; disruptions caused by cybersecurity attacks; or any similar disruptions at one or more of our suppliers or our customers’ suppliers if an alternative source of supply were not readily available.
• Additionally, similar disruptions at our customers’ facilities could result in reduced demand for our products causing us to delay or cancel production.
• Any significant disruption to our production could negatively affect our operations, customer relationships and financial performance.
• If our information technology systems and infrastructure are not maintained or implemented successfully and in a timely, cost-effective, compliant and responsible manner, our operations and business could be disrupted and our ability to report accurate and timely financial results could be adversely affected.
• Our Company’s, our suppliers’ or our customers’ and their supplier’s inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance.
• Our inability, and that of our suppliers and customers and our customers’ suppliers, to effectively manage the timing, quality and costs of these new program launches could adversely affect our financial condition, operating results and cash flows.
• We could face risks related to public health events, including epidemics and pandemics.
• Preventative measures taken to contain or mitigate public health events may materially impact our financial condition and operations results due to shutdowns of our and our customers’ and suppliers’ facilities; increased operating and production costs; disruptions and financial distress in the supply chain; disruptions in our production cycle; lost or absent members of the workforce; a decline in demand due to an economic downturn; and inability to access capital due to disruptions in the global financial markets.
• In 2025, approximately 78% of our sales were attributable to products manufactured outside the United States.
• Risks inherent in our international operations include: • currency exchange rate fluctuations, currency controls and restrictions, and the ability to hedge currencies; • c hanges in laws and regulations, including laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs, or taxes or the imposition of embargoes on imports from countries where we manufacture products; • changes in local economic conditions; • repatriation restrictions or requirements, including tax increases on remittances and other payments by our foreign subsidiaries; • global sovereign fiscal uncertainty and hyperinflation in certain foreign countries; • operating in foreign jurisdictions where the ability to protect and enforce our intellectual property rights is limited as a statutory or practical matter; • exposure to possible expropriation or other government actions; • disease, pandemics or other severe public health events; and • the current geopolitical uncertainty around the world, and the potential exposure to local political or social unrest resulting from acts of war, terrorism, or similar events.
• While we provide parts to virtually every major global OEM for use on a wide range of different platforms, sales to our three largest customers, Ford, GM, and Stellantis, on a worldwide basis represented approximately 56% of our sales for the year ended December 31, 2025.
• Financial Risks Developments in new or ongoing conflicts around the world and related disruptions could adversely affect our liquidity, business, and results of operations.
• Developments in new or ongoing conflicts or civil unrest around the world may cause significant disruptions to the global financial system, international trade, and the transportation and energy sectors, among others, potentially impacting supply chain and commodity prices which may result in substantial inflation.
• We do not have operations in the regions where there are current conflicts, nor do we sell into these markets.
• Global, market and economic conditions could impact our ability to access liquidity sources.
• As of December 31, 2025, there were no obligations outstanding under the ABL Facility, the Company’s borrowing base was $168.3 million, and the monthly fixed charge coverage ratio was at a level that provided the Company full access to the borrowing base .
• Net of $7.4 million of outstanding letters of credit, the Company effectively had $160.9 million available for borrowing under its ABL Facility.
• As a result of current economic conditions and global supply chain disruptions, we may be required to raise additional capital, and our access to and cost of financing will depend on, among other things, our performance, changing global economic conditions, conditions in the global financing markets, the availability of sufficient amounts of financing, our prospects and our credit ratings.
• As of December 31, 2025, we had total indebtedness of $1,104.6 million.
• Moreover, our ABL Facility provides the agent with considerable discretion to impose reserves, which could materially reduce the amount of borrowings that would otherwise be available to us.
• For our consolidated financial statements, our sales and earnings denominated in foreign currencies are translated into U.S.
• Accordingly, our reported international sales and earnings could be adversely impacted in periods of a strengthening U.S.

and 5 more.

Gone since FY2024

• Operational Risks Our business, financial condition and results of operations may be adversely impacted by the effects of inflation.
• The principal raw materials to produce our products include synthetic rubber, carbon black, process oils, and plastic resins.
• Material costs represented approximately 51% of our total cost of products sold in 2024.
• The costs and availability of raw materials and manufactured components can fluctuate due to factors beyond our control, including as a result of existing and potential changes to U.S. policies related to global trade and increased tariffs and trade restrictions.
• Further, climate change may have an adverse impact on global temperatures, weather patterns, and the frequency and severity of extreme weather and natural disasters, which may adversely affect the availability or pricing for certain raw materials including natural rubber.
• Our operations may also be disrupted by other labor issues, including absenteeism, public health events and government restrictions; major equipment failure with prolonged downtime or a complete loss of critical equipment where either no other comparable equipment exists or the remaining equipment does not have enough capacity to pick up the demand; or natural disaster-related plant closures or disruptions.
• Regardless of the cause, any significant disruption to our production could negatively affect our operations, customer relationships and financial performance.
• Similar disruptions at one or more of our suppliers or our customers’ suppliers could adversely affect our operations if an alternative source of supply were not readily available.
• Additionally, similar disruptions at our customers’ facilities could result in reduced demand for our products causing us to delay or cancel production and could have an adverse effect on our business.
• If these systems are not implemented successfully and in a timely, cost-effective, compliant and responsible manner, our operations and business could be disrupted and our ability to report accurate and timely financial results could be adversely affected.
• An inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance.
• An inability to effectively manage the timing, quality and costs of these new program launches could adversely affect our financial condition, operating results and cash flows.
• We could face risks related to public health events, including epidemics and pandemics like the COVID-19 pandemic.
• Preventative measures taken to contain or mitigate public health events (including, but not limited to, vaccination, social distancing policies, restrictions on travel and reduced operations and extended closures of many businesses and institutions) may materially impact our financial condition and operations results due to shutdowns of our and our customers’ and suppliers’ facilities; increased operating and production costs; disruptions and financial distress in the supply chain; disruptions in our production cycle; lost or absent members of the workforce; a decline in demand due to an economic downturn; and inability to access capital due to disruptions in the global financial markets.
• While we provide parts to virtually every major global OEM for use on a wide range of different platforms, sales to our three largest customers, Ford, GM, and Stellantis, on a worldwide basis represented approximately 56% of our sales for the year ended December 31, 2024.
• In 2024, approximately 78% of our sales were attributable to products manufactured outside the United States.
• Risks inherent in our international operations include: • currency exchange rate fluctuations, currency controls and restrictions, and the ability to hedge currencies; • changes in local economic conditions; • repatriation restrictions or requirements, including tax increases on remittances and other payments by our foreign subsidiaries; • global sovereign fiscal uncertainty and hyperinflation in certain foreign countries; • c hanges in laws and regulations, including laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs, or taxes or the imposition of embargoes on imports from countries where we manufacture products; • operating in foreign jurisdictions where the ability to protect and enforce our intellectual property rights is limited as a statutory or practical matter; • exposure to possible expropriation or other government actions; • disease, pandemics or other severe public health events; and • exposure to local political or social unrest including resultant acts of war, terrorism, or similar events, including the wars in Ukraine and the Middle East and the related sanctions imposed on Russia.
• Financial Risks Global, market and economic conditions could impact our ability to access liquidity sources.
• As of December 31, 2024, there were no obligations outstanding under the ABL Facility, the Company’s borrowing base was $176.7 million and the monthly fixed charge coverage ratio was at a level that provided the Company full access to the borrowing base .
• Net of $7.6 million of outstanding letters of credit, the Company effectively had $169.2 million available for borrowing under its ABL Facility.
• As a result of current ecomonic conditions and global supply chain disruptions, we may be required to raise additional capital, and our access to and cost of financing will depend on, among other things, our performance, changing global economic conditions, conditions in the global financing markets, the availability of sufficient amounts of financing, our prospects and our credit ratings.
• Developments in new or ongoing conflicts around the world and related disruptions could adversely affect our liquidity, business, and results of operations.
• Developments in new or ongoing conflicts or civil unrest around the world, such as the military conflicts between Russia and Ukraine, Israel and Hamas, and other conflicts and escalating tensions in the Middle East and other regions of the world, may cause significant disruptions to the global financial system, international trade, and the transportation and energy sectors, among others, potentially impacting supply chain and commodity prices which may result in substantial inflation.
• We do not have operations in Ukraine, Russia or the Middle East, nor do we sell into these markets.
• As of December 31, 2024, we had total indebtedness of $1,100.3 million.
• Moreover, our ABL Facility provides the agent considerable discretion to impose reserves, which could materially reduce the amount of borrowings that would otherwise be available to us.
• For our consolidated financial statements, our sales and earnings denominated in foreign currencies are translated into U.S. dollars.
• Accordingly, our reported international sales and earnings could be adversely impacted in periods of a strengthening U.S. dollar.
• Further, some of our commodities are purchased in or tied to the U.S. dollar; therefore our earnings could be adversely impacted during the periods of a strengthening U.S. dollar relative to other foreign currencies.
• In conducting a quantitative goodwill impairment testing, we compare the fair value of our reporting units to their related net book value.
• As of December 31, 2024, our U.S. supplemental employee retirement plan was underfunded by $9.8 million and our non-U.S. pension plans (which typically are pay-as-you-go plans) were underfunded by $81.1 million.