Good morning, ladies and gentlemen, and welcome to the Cooper-Standard Third Quarter 2026 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Following company-prepared comments, we will conduct a question-and-answer session. At that time, if you have a question, you will need to press star then the number 1 on your telephone keypad. To withdraw your question, please press star then the number 2. As a reminder, this conference call is being recorded, and the webcast will be available on the Cooper-Standard website for replay later today. I would now like to turn the call over to Roger Hendriksen, Director of Investor Relations. Please go ahead.
Thanks, Mel, and good morning, everyone. We appreciate you spending some time with us this morning. The members of our leadership team who will be speaking with you on the call this morning are Jeff Edwards, Chairman and Chief Executive Officer, and John Banas, Executive Vice President and Chief Financial Officer. Before we begin, I need to remind you that this presentation contains forward-looking statements. While they are made based on current factual information and certain assumptions and plans that management currently believes to be reasonable, these statements do involve risks and uncertainties. For more information on forward-looking statements, we ask that you refer to slide three of this presentation and the company's statements included in periodic filings with the Securities and Exchange Commission. This presentation also contains non-GAAP financial measures.
Reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are included in the appendix to the presentations. With those formalities out of the way, I'll turn the call over to Jeff Edwards.
Thanks, Roger, and good morning, everyone. We appreciate the opportunity to review our third quarter results and, as always, provide an update on our business and outlook going forward. Just beginning on slide five, I'd like to highlight some of the third quarter data points that we believe are reflective of our continued outstanding operational performance and our ongoing commitment to our company values. In terms of operations and customer service, we continue to deliver outstanding performance on both fronts. For product quality and service, 99% of our customer scorecards were green in the quarter. For new program launches, we continue to deliver strong performance as well, with 97% of those scorecards green, even with significantly enhanced launch activity.
Again, a shout-out to our plant managers and plant employees as they continue to deliver outstanding performance and value for our customers through their dedication and personal commitment to excellence. I truly appreciate everything they're doing. As always, the most important operating metric we have is safety performance, and that continues to be excellent. During the third quarter, we had a total incident rate of 0.27 reportable incidents per 200,000 hours worked. That is well below the world-class benchmark of 0.35. Importantly, 36 of our plants have maintained a perfect safety record, with a total incident rate of zero for the first nine months of this year. That is 61% of all of our production facilities achieving a perfect safety score, and demonstrating that our ultimate goal of zero safety incidents is certainly achievable.
I am proud of our entire global team for their focus and achievement in this important operating measure. In terms of cost optimization, we continue to make progress with our manufacturing and purchasing teams, and they delivered $9 million of savings through lean initiatives and other cost-saving programs. This was despite an increase in launch cost resulting from higher-than-planned launch activity, partially related to the recent conquest business that we have booked and mid-program transitions. Total plant launches in the quarter were up more than 100% compared to the third quarter of last year. We also made solid progress in terms of optimizing our fixed cost, with an additional $4 million reduction in SGA&E expense during the quarter. Finally, we are continuing to leverage world-class service, technical capabilities, and our award-winning innovations to win significant new business.
During the third quarter of 2026, we in fact received $149 million in net new business awards, which are expected to drive profitable new growth as they launch over the next few years. Turning to slide six, just to put this in context, this brings the total new net business awards for the first nine months of the year to $395 million, essentially already achieving our full-year 2026 goal of $400 million. As you can see in the chart, our new business awards have been accelerating over the past few years as the financial strength of the company has been improving. The good news is that we have available capacity to launch much of this new business over the next coming years with minimal incremental capital investment.
We are proud to be the supplier that our customers are increasingly turning to for quality components, consistency of delivery, and collaboration on critical design and development of new technologies. With these awards in hand, driving incremental variable contribution margins and a strong commercial pipeline for new business wins ahead, we are increasingly confident that we will be able to execute our plans and achieve our longer-term strategic financial targets for growth, margins, and return on capital. Turning to slide seven. In addition to the new business awards, we continue to garner recognition for our accomplishments in quality, culture, and technology innovation. This slide shows just a few of the awards we have received this year from customers, respected industry associations, and the media. We believe these awards are a direct reflection of our special culture here at Cooper-Standard.
I could not be more proud of our team, and I want to thank our 22,000 employees worldwide for their continued commitment to our core values and for their continuing achievements. Now let me turn the call over to John to discuss the financial results for the quarter.
Thanks, Jeff, and good morning, everyone. In the next few slides, I will provide some details on our financial results for the quarter and discuss our cash flows, liquidity, and aspects of our balance sheet and capital structure, and then provide an update to our 2026 full-year outlook. On slide nine, we show a summary of our results for the third quarter and first nine months of 2026 with comparisons to the same periods last year. Third quarter 2026 sales were $708.6 million, an increase of 1.9% compared to the third quarter of 2025. The increase was driven primarily by favorable volume and mix, and to a lesser extent, favorable foreign exchange. Adjusted EBITDA in the quarter was $52.8 million compared to the $53.3 million we reported in the third quarter of 2025.
On a U.S. GAAP basis, we reported a net loss of $20.4 million in the third quarter of 2026, compared to a net loss of $7.6 million in the third quarter of 2025. Adjusting for restructuring expense, net of tax from both periods, adjusted net loss for the third quarter this year was $2.1 million, or $0.11 per share, compared to an adjusted net loss of $4.4 million, or $0.24 per share in the third quarter of 2025. Our capital expenditures in the third quarter of this year totaled $16 million, or 2.3% of sales. This was higher than the prior year period due to increased automation and launch-related investments, but in line with our expected full-year run rate of 2%-3% of sales.
We continue to exercise discipline around our capital investments, consistent with our goal of maximizing returns on invested capital. For the first nine months of the year, sales were $2.1 billion, up 2.3% year-over-year, primarily due to favorable foreign exchange. Adjusted EBITDA for the first nine months was $157.8 million, and adjusted net loss was $9.6 million. Additional detail on the drivers of the year-over-year changes for the quarter and the first nine months are shown in the charts on the next couple of slides. Let us move to slide 10. For third quarter sales, favorable volume and mix, net of customer price adjustments and recoveries, had a positive impact on sales of approximately $9 million compared to the same period a year ago. Foreign exchange was a tailwind of approximately $4 million in the quarter versus the third quarter of 2025.
Our third quarter adjusted EBITDA benefited from an adjustment to compensation-related expense, reflecting anticipated incentive compensation payouts now being lower than originally planned. Reduced gross profit, gross tariffs, and duties, lower SGA&E expense, and lean initiatives and purchasing positively contributed $13 million, $4 million, and $9 million respectively, compared to the third quarter of last year. More than offsetting these improvements, however, were $13 million of unfavorable volume and mix, net of customer price adjustments and recoveries, $15 million of higher material costs, and $12 million in increased wages and general inflation. The material cost inflation was driven primarily by oil prices, which have remained between $30-$40 per barrel higher than we planned coming into the year, impacting the pricing of our rubber and plastic feedstocks.
Aluminum prices were also higher, driven by supply chain and transport disruption and continued uncertainty related to the ongoing conflict in the Middle East. We continue to believe we will recover most of these incremental input costs via the index-based contracts and agreements we have in place, as well as through ongoing commercial negotiations. As we said in our last call, the timing of recoveries is still somewhat dependent upon commodity price trends, as well as the time lags inherent in current agreements with our customers. As we've seen in the third quarter, continued elevated commodity prices could further delay the full realization of expected recoveries. Moving to slide 11. Looking at adjusted EBITDA for the first nine months of the year, our teams have generated $40 million of savings and increased efficiencies in purchasing supply chain optimization and lean manufacturing, which continue to benefit our results.
Lower-than-planned compensation-related expense versus the same period last year, reductions in SGA&E expense of $4 million, and $5 million in savings from past restructuring initiatives were all positive factors for the first nine months. Nonetheless, these positive items were more than offset by $27 million in wage increases and general inflation, $25 million of higher material costs, $21 million of unfavorable volume and mix, net of customer price adjustments and recoveries, and prior year royalty settlements of $10 million that did not repeat. Turning to slide 12. In terms of free cash flow, which is defined as cash provided by operations minus CapEx, was an outflow of $10.8 million in the period.
The year-over-year change reflects lower cash earnings and investments in working capital, driven primarily by elevated material costs and general inflation, as well as increased cash taxes, cash paid for restructuring initiatives, and capital investments supporting new program launches and automation initiatives. We ended the third quarter with a cash balance of $112.3 million. Coupled with $193.1 million of availability on our recently amended ABL facility, which remains untapped, we had total liquidity in excess of $300 million as of September 30th, 2026. We were pleased to successfully complete an amendment to our ABL during the third quarter that enhances our capital structure. The amendment increases the total facility from $180 million up to $200 million, providing additional liquidity and flexibility to support our ongoing operations and strategic priorities.
The amendment also extends the stated maturity to September 2031 and improves the financing economics through reduced borrowing spreads and fees. We believe that our current cash and available liquidity, combined with expected future cash generation, provides us with sufficient resources to support the continuing execution of our strategic plans to deliver profitable growth, lower our net leverage, and maximize returns on our invested capital. Turning to slide 13. I will conclude my prepared comments with a few details on our near-term outlook and the revisions to our 2026 guidance. Following our results for the first three quarters, we have reduced our outlook for full-year adjusted EBITDA by approximately $40 million at the midpoint.
In the bridge on the right side of slide 13, we break out and quantify the key variables that we expect will drive a solid $30 million, or 100 basis point, year-over-year increase in adjusted EBITDA, despite the incredibly challenging market and industry conditions. Cost savings from manufacturing and supply chain lean initiatives are now expected to be approximately $80 million for the full year, which is about $10 million less than our original plan. More significant, however, are increased impacts from commodity costs and delays in customer recoveries, as well as continued higher inflation. Combined, these items further reduce our outlook by approximately $30 million for the full year compared to expectations last quarter.
While the timing of some of the commodity cost recoveries will now push into 2027, we still expect to recover the majority of the commodity cost increases we will incur in 2026. Jeff will provide a bit more color on these efforts in a few minutes. This concludes my prepared section, so I will turn it back over to Jeff.
Thanks, John. In this last portion of our call, I would like to again comment on our high-level strategic imperatives and how we believe these are positioning us for continuing profitable growth over the next few years. Please turn to slide 15. The charts on slide 15 provide, we think, a good summary of the progress that we have made in restoring the financial strength of the company over the past few years. Gross profit and adjusted EBITDA have increased steadily despite reduced or flat production volumes in our two largest operating regions. Our continued operational excellence and strategic execution have driven the improved results, and we believe there is certainly more to come. Turning to slide 16.
Over the next three years, we expect to benefit from the continued optimization of our cost structure, higher variable contribution margins on new programs now being launched, incremental sales of value-added innovations, future launches of the record new business awards we've received over the past two years, and further efficiencies as we continue to leverage the digital transformation of virtually every function across our business. Moving to slide 17. To this point, we were an early adopter of using AI tools to drive operational efficiencies, beginning with our Formulink technology that launched in 2020 and revolutionized our process for developing new material compounds. This was followed in 2021 with the launch of our Liveline, our proprietary automated process control technology that has reduced scrap, improved product quality, and improved the overall efficiency of our extrusion line operations.
Over the past few years, we began the rollout of CS AI Star, that is essentially a repository of the many AI agents that have been developed within our various operations and makes them available for use company-wide. The next phase of our AI journey, the business process orchestration phase, has the potential to contribute and streamline functions across our entire value chain. Development of this capability is already well underway and is being led by Chris Couch, who we have recently appointed our Chief AI Officer, in addition to his role as President of the Fluid Handling business segment and Chief Technology Officer. We're extremely excited about this latest AI initiative and the potential for even further operating efficiencies it is expected to drive as we continue to grow our business over the next several years.
We believe this process orchestration capability will enable us to scale our top line by more than $1 billion over the next several years without requiring a commensurate increase in headcount and costs. Stay tuned as this initiative rolls out. The financial impact will be very exciting. Turning to slide 18. Before wrapping up this morning, I want to provide a bit of color on how we're addressing the ongoing inflation crisis that is impacting our business and, frankly, the industry. Believe me when I tell you we're making every effort to turn this current crisis into future opportunity, and I am confident that we will be a stronger company as a result of what we're doing.
Since this was the first time that our index-based commercial agreements have been tested in a significant way, we're taking the opportunity to learn from the experience and make meaningful, positive adjustments to those agreements. We are actively engaged in productive discussions with our customers to improve the timing of cost recoveries going forward and to refine the indices used in these agreements. We believe the discussions will lead to a further de-risking of our business in future periods of hyperinflation, but it will also enhance our recoveries in the near term. We're also taking the opportunity to push back on traditional practices for things like financing customer tooling, which unduly burden the balance sheet of Cooper-Standard and, frankly, all suppliers. We expect to drive positive changes related to customer tooling that will enhance our ability to generate cash from operations going forward.
We believe we are appropriately managing and improving all aspects of our business that we can control in this dynamic environment. As a result, we expect to be a stronger company and deliver improved results again in 2027. Turning to slide 19. To summarize and conclude our message this morning, we believe that we remain on track to achieve our longer-term strategic financial targets over the next three to five years that we provided you. In view of recent industry dynamics, we are taking the opportunity to improve and further de-risk our business going forward, and we expect to be a stronger company in 2027 and continue the trend of improving our financial performance as well. In addition, we expect to continue to deliver exceptional value for our customers, and we believe they will continue to support us as a valued supplier.
I certainly want to thank our customers for their continued trust and support. I remain extremely positive about our opportunities and outlook over the next several years. With our improved cost structure, strong pipeline of upcoming program launches, outstanding customer relationships, and a global team I would take over any other in the industry, I am confident that we will deliver the long-term value our stakeholders expect and certainly deserve. This concludes our prepared remarks, so let's move into Q&A.
Thank you. Ladies and gentlemen, if you would like to ask a question, please press star, then followed by the number 1 on your telephone keypad. Again, star followed by the number 1 on your telephone keypad. If you are using speakerphone, please pick up the handset before entering your request. To withdraw from the queue, press star then the number 2. One moment, please, as we assemble the queue for questions. Our first question comes from Mike Ward with Citigroup. Your line is now open. You may ask your question.
Thank you very much. Good morning, everyone.
Good morning, Mike.
John, I think to start, if I look at your charts on page 11 and 13, when you are going through the adjusted EBITDA bridge, the general inflation and material economics, are they net of recoveries?
No, Mike, that is a good question. Those are shown gross. Any kind of customer recoveries or price adjustments we can glean are included in volume and mix. Obviously, there is a commercial element to that, and we have historically combined any recoveries or price adjustments in that volume and mix category. What you see as far as the general inflation, material cost inflation, those are gross numbers.
Okay. If I compare the nine months to 12 months, so 11 and 13, and I subtract them out and I kind of look at what it assumes for the fourth quarter, it looks like you have manufacturing is a pretty big delta when you go for the full year compared to the nine months. It is about a $40 million swing, and then volume price, and that is where those recoveries are coming in. That is a $26 million positive. There are offsets, but for additional inflation, it looks like. But when you look at those numbers and you compare them, it does look like, I guess, you get a volume mix on the manufacturing side, you get the benefit, and then you get recoveries.
Am I looking at it the right. When I go from what you saw in nine months and what you expect for the year, that's a big part of the upside you see in Q4.
Yeah, you're absolutely right, Mike. The ongoing run rate, you get the full benefit for the most part in Q4 of a lot of those savings initiatives as the projects are implemented and you get a clean run at them. Keep in mind the performance of both the manufacturing and purchasing organizations. Jeff described how Q3 launches are up 100% compared to the prior year. This was a heavy launch year. There's always challenges and changeover activities that go along with that were impacting the first nine months. Q4 tends to be a lighter launch period, and we expect the performance to ramp up in Q4. You also get the full run rate of rebate impacts that the purchasing organization negotiates as you met volume commitments on the supply side. You'll see more of those pulling through in Q4 overall.
Okay. It looks like that's how you're getting to the upside from a margin standpoint in Q4.
Yeah, but we're still fighting back general inflation and commodity inflation.
Sure, yeah.
You see those in Q4 are continue to be offsets and very challenging for us.
Okay. Jeff, on your chart that you talked about the net new business, and that's new awards less anything programs that fell off. Is that correct?
Yeah, that's correct, Mike. That's the definition now we've used for many years. Nothing's changed there.
Okay. Nothing's changed. Then if I look at it later in your charts, you talk about a three-year type roll-in process. So if I'm looking at 2000, you had a big increase in 2025 and 2026. So if I take a base of $2.7 billion in 2024, you're kind of looking at it where it starts to hit in 2027, 2028, where some of these new businesses start to roll in, and that's where you're getting up north to the $3.5 billion range. Is that correct?
That's correct, Mike. So that's the roughly $1 billion of net new business that we've been talking about launching, is 2027, 2028, 2029, and 2030 arrive. And that's why we continue to be very confident in that outlook and those strategic targets that we've provided. We know what that business is. We know what the margins are. The only thing we don't know, as always, is volume and mix. But otherwise, in terms of the price and the cost associated with selling those products, it's already established. The forecasts are pretty solid.
Okay. And they're all The new commercial agreements you put in a few years ago were all part of those programs, and it's also better programs and higher margin that you focused on.
That's correct. Everything that What we've been saying all along is that the hurdle rates that we established to get the business projected to go on this, call it 15% journey by the time we got to 2030, those programs are here. They're being developed, they're being prepared to launch. And we've consistently been at or above those hurdle rates, which is why we were able to come out with a strategic plan last year talking about really 2025 through 2030 and achieving 15% EBITDA as a company.
John, any reason why the working capital won't turn positive for the year?
Mike, as you know, our fourth quarter is historically a very, very strong working capital release for us, and we don't expect anything different this time around. As you know as well, we're proactively managing all aspects of that working capital bucket that we can control, right? So inventory reductions, accounts payable terms and negotiations, and to a lesser extent, tooling that Jeff talked about in his prepared remarks. However, there are some other things in that bucket this year that are unique. Think government tariff refunds. We can't control the timing of when the government pays us, but those are significant. We're also actively working on those commodity cost recoveries as well.
Those could tie up working capital between now and the end of the year, but we're continuing to drive it and drive the positive free cash flow in Q4 as best we can, and we'll see how things shake out given the continued inflationary impacts we're facing and the drag on earnings that that's presenting to us.
Perfect. Thank you very much, everybody.
Thanks, Mike.
Thank you.
Thank you. Next question comes from the line of Doug Karson with Bank of America. Your line is now open. You may ask your question.
Great, guys. Hi, Roger, Jeff, and John. How are you?
Great. Good morning. How are you, Doug?
Good, thank you. I wanted to talk a little bit more about the bridge. There is kind of a lot riding on Q4 here to try to get to an EBITDA maybe in the neighborhood of 82 to kind of meet guidance. The visibility in the lean manufacturing that you are hoping to get $40 million out, we have already got a kind of month of the quarter underneath our belt. Is there more visibility in that than there is in your tariff rebates? Trying to just bridge my 82, like how I am modeling the $82 million EBITDA. I kind of have a lot of confidence in that lean manufacturing coming through.
Yeah, Doug, this is Jeff. I think if there is anything that we can circle and say we have a high level of confidence, both historically and today, it is in our manufacturing teams and their ability to perform and hit these numbers. So that one is pretty good to go. The big challenge we have, obviously, is what is the price of oil going to be next week and the following week and the next month and so on and so forth, and the headwind that that continues to provide us. We also have significant commercial conversations going on to try to recover as much of that that is owed to us this year as we can. As always in this industry, commercial negotiations are probably those that are most difficult to forecast.
We have done our best to come up with what we think is an achievable commercial recovery plan, and that is what is reflected here. Are we going for more? Of course. But this, I think, is appropriately reflected, and the risk associated with getting everything we want is appropriately reflected.
Right. That's very helpful. If I could double-click on the recovery from the higher commodity cost that your customers essentially owe you. If I'm thinking about it right, and I think, Mike, you dug into it a bit, if I look at slide 11, I see materials negative 25, and then when I go down to slide 13, I see the volume and mix kind of inflects positive five from negative 21. So there's like a $26 million change in your volume and mix against a production number that's actually down about 2% in North America for Q4. So am I safe to assume that that $26 million change is the hope that you'll get some rebates? Is that kind of like the refund number I'm circling in my head?
Doug, I'm assuming you meant recovery, not refunds, right?
Yeah, recovery.
Yeah. There certainly is in the volume and mix category an element of those customer recoveries, but the real driver in volume and mix is traditionally production levels and the mix of what we're producing for our customers around the world. So you do have a fourth quarter year-over-year impact there, is when you got to look around the world, what we're manufacturing in China, Europe, North America, all weighs heavily into that volume and mix number. So it's not just customer recoveries that we're talking about in that plus five for the whole year.
Right. There is a production issue there. Okay. Maybe if I could just be greedy and ask a question on cash flow. I was kind of feeling a little bit perky when we talked about a working capital release and having a strong Q4 free cash flow, but then I think as the conversation kind of extended a bit, there was some kind of one-off puts and takes that I maybe wasn't following. Is free cash flow expected to be positive in 4Q?
In the fourth quarter, yes. We expect it to be positive in the fourth quarter. It traditionally is, Doug.
Yes.
Even with the interest coupon that we'll pay in mid-November here, we expect the significant unwinding of accounts receivable, reductions in inventory to benefit the free cash flow for the quarter.
Is the working capital going to be like a source of $20 million-$30 million kind of neighborhood? Just able to share some of the blocking and tackling there? That would help us kind of model out free cash a little bit.
If I had that locked in, I would give you the full cash guidance for the year, which obviously we don't. I will leave it at the puts and takes that I described.
That is very fair. Last question on the liquidity front. I think at the beginning of the call, you said you expanded your capacity by $20 million, and also perhaps maybe got better terms. What was driving that thought process?
Well, we first and foremost, we wanted to get the maturity extended out. That was originally set to expire a few years earlier than 2031. Extending that maturity was first and foremost. Along with that, obviously our lending partners recognized the financial improvements that we have made over the years since the last time we amended that facility, and that is where the economic improvements ultimately came from. When we said, "Let us look at the whole package, getting the incremental liquidity in terms of $20 million extra, but then also improving the economics for it," it was a no-brainer, a double benefit for us, along with kicking the maturity down a couple more years out. Really, really good result, or really a good outcome for our treasury team to continue to work with our banking partners.
I think that is great. Last thing I will leave on slide six. The year-to-date new business awards of $395 million, and that just blows away any year on that screen. It is $100 million more than a full year of 2025. At some point, those are going to start coming through with higher revenue numbers. What is the kind of cadence of some of those new business wins? Are they like, it will seem like a third, a third, a third over a couple years, or they are like a five-year window? As we think about how the revenue top line looks, what is the duration of some of those wins? Just so I could think about modeling out.
I guess you take $2.8 billion, which is where we are heading this year.
Yeah.
You go out to 2030, 2031, and you put $3.5 billion-$3.7 billion, and then you draw a line.
Got you. Perfect. Well, thanks a lot, guys, for answering all those questions. I appreciate it. I will turn the queue over to somebody else. Thank you so much.
Thank you. Again, if anyone would like to ask a question, that would be star one on your telephone keypad. Our next question comes from the line of Leo Cyker with Beach Point Capital Management. Your line is now open. You may ask your question.
Hey, guys. Thanks for taking the question. Just wanted to ask on the restructuring costs, if you could give a little color on, like big number this quarter, if you could give a little color on sort of what that relates to. We are at, I think, $41 million year to date compared to the full year guide of $30 million-$35 million. So, if you could help me bridge that.
Yeah, Leo, this is John. I will start with the P&L for the quarter. The most significant, or and primarily most of that charge for the quarter, was further downsizing of our Western European workforce. As we continue to do, we continue to optimize the fixed costs and manufacturing footprint around the world. We were able to successfully reach agreement with certain groups there to further downsize our Western European footprint, because it is obviously the most costly and the one that has been a drag on profitability over the years. So, for the most part, that Q3 charge was reaching that agreement and recording all that P&L charge. Cash goes out the door over the next several months into next year or so. It was not all cash that left the company. You just booked the accrual, and then it is pay-as-you-go for the most part.
Anytime we are looking at any of these initiatives, we are looking for cash paybacks, certainly quicker than two years overall. We have announced earlier this year a couple of plant closures, one in Western Europe, another one here in North America. Some of the cash that has been used so far this year has been to start those initiatives, but then also the tail of other restructuring initiatives that we implemented in last year. The guide of cash restructuring of $30 million-$35 million, different than what is going to be on the P&L, obviously. We think there is a few more million that goes out here in Q4 on a net basis that brings you into that cash number of $30 million-$35 million. Hopefully that paints the picture for you.
Yeah. Super helpful. Thank you. How do we think about the kind of cadence of that in the next few quarters?
On the P&L, we do not expect much more ahead of us. Everything we have implemented or announced is what we have got on the plate for now. The business continues to evolve, and we continually assess our fixed costs and our footprint. There is no guarantee that things will not change in the future, but that is what is on the plate for now.
Got it. Just one more. I know you guys cannot predict where oil is going, but what oil price was baked into your guide for the year for Q4?
Well, I had in my prepared remarks that the current prices have been anywhere from $30-$40 a barrel higher than our planning assumptions. If you take the above 110 or 100 mark, that kind of backs you into our plan assumption was around $65 for the year.
That was not, I mean, for the updated guidance, presumably you were not still at around $60.
Oh, no. No, the 100-ish is where the guide is.
Okay.
30 million to 40 million, it remained higher than that level.
Okay. Understood. Got it. That is all for me. Thank you.
All right, Leo. Thanks.
Thank you. It appears that there are no more questions. I would now like to turn the call back over to Roger Hendriksen.
Okay. Thanks, everybody. We appreciate all the questions and the engagement in the call this morning. If further questions come up that weren't answered today, please feel free to reach out, give me a call, and we'll see to it that we get your answers. Thanks again for joining us. This will conclude our call.
Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.