diff --git a/Makefile b/Makefile
index 959ace8c3d..1fbaff7f53 100644
--- a/Makefile
+++ b/Makefile
@@ -69,6 +69,11 @@ GOLANGCI_LINT := $(TOOLS_BIN_DIR)/golangci-lint
 GOTESTSUM := $(TOOLS_BIN_DIR)/gotestsum
 KUSTOMIZE := $(TOOLS_BIN_DIR)/kustomize
 MOCKGEN := $(TOOLS_BIN_DIR)/mockgen
+OPENAPI_GEN := $(TOOLS_BIN_DIR)/openapi-gen
+APPLYCONFIGURATION_GEN := $(TOOLS_BIN_DIR)/applyconfiguration-gen
+CLIENT_GEN := $(TOOLS_BIN_DIR)/client-gen
+LISTER_GEN := $(TOOLS_BIN_DIR)/lister-gen
+INFORMER_GEN := $(TOOLS_BIN_DIR)/informer-gen
 RELEASE_NOTES := $(TOOLS_BIN_DIR)/release-notes
 SETUP_ENVTEST := $(TOOLS_BIN_DIR)/setup-envtest
 GEN_CRD_API_REFERENCE_DOCS := $(TOOLS_BIN_DIR)/gen-crd-api-reference-docs
@@ -304,8 +309,66 @@ generate-controller-gen: $(CONTROLLER_GEN)
 		object:headerFile=./hack/boilerplate/boilerplate.generatego.txt
 
 .PHONY: generate-codegen
-generate-codegen: generate-controller-gen
-	./hack/update-codegen.sh
+generate-codegen: generate-controller-gen $(OPENAPI_GEN) $(APPLYCONFIGURATION_GEN) $(CLIENT_GEN) $(LISTER_GEN) $(INFORMER_GEN)
+	@echo "** Generating OpenAPI definitions **"
+	# The package list includes:
+	# - CAPO's own API packages (v1alpha1, v1alpha7, v1beta1) that have // +k8s:openapi-gen= markers
+	# - Dependency packages from CAPI and k8s.io that are referenced by CAPO's APIs
+	# - Base k8s.io/apimachinery packages
+	$(OPENAPI_GEN) \
+		--go-header-file=./hack/boilerplate.go.txt \
+		--output-file=zz_generated.openapi.go \
+		--output-dir=./cmd/models-schema \
+		--output-pkg=main \
+		--report-filename=./api_violations.report \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha1 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha7 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1beta1 \
+		sigs.k8s.io/cluster-api/api/v1beta1 \
+		k8s.io/api/core/v1 \
+		k8s.io/apimachinery/pkg/apis/meta/v1 \
+		k8s.io/apimachinery/pkg/runtime \
+		k8s.io/apimachinery/pkg/version
+	@echo "** Generating openapi.json **"
+	go run ./cmd/models-schema | jq > ./openapi.json
+	@echo "** Generating applyconfiguration code **"
+	$(APPLYCONFIGURATION_GEN) \
+		--go-header-file=./hack/boilerplate.go.txt \
+		--output-dir=./pkg/generated/applyconfiguration \
+		--output-pkg=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/applyconfiguration \
+		--openapi-schema=./openapi.json \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha1 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha7 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1beta1
+	@echo "** Generating clientset code **"
+	$(CLIENT_GEN) \
+		--go-header-file=./hack/boilerplate.go.txt \
+		--output-dir=./pkg/generated/clientset \
+		--output-pkg=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/clientset \
+		--clientset-name=clientset \
+		--input-base=sigs.k8s.io/cluster-api-provider-openstack \
+		--apply-configuration-package=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/applyconfiguration \
+		--input=api/v1alpha1 \
+		--input=api/v1alpha7 \
+		--input=api/v1beta1
+	@echo "** Generating lister code **"
+	$(LISTER_GEN) \
+		--go-header-file=./hack/boilerplate.go.txt \
+		--output-dir=./pkg/generated/listers \
+		--output-pkg=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/listers \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha1 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha7 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1beta1
+	@echo "** Generating informer code **"
+	$(INFORMER_GEN) \
+		--go-header-file=./hack/boilerplate.go.txt \
+		--output-dir=./pkg/generated/informers \
+		--output-pkg=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/informers \
+		--versioned-clientset-package=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/clientset/clientset \
+		--listers-package=sigs.k8s.io/cluster-api-provider-openstack/pkg/generated/listers \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha1 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1alpha7 \
+		sigs.k8s.io/cluster-api-provider-openstack/api/v1beta1
 
 .PHONY: generate-conversion-gen
 generate-conversion-gen: $(CONVERSION_GEN)
diff --git a/hack/tools/Makefile b/hack/tools/Makefile
index 7c5cac78f1..48a943a5cf 100644
--- a/hack/tools/Makefile
+++ b/hack/tools/Makefile
@@ -71,6 +71,26 @@ CONVERSION_GEN := $(BIN_DIR)/conversion-gen
 $(CONVERSION_GEN): go.mod go.sum | $(BIN_DIR)
 	go build -tags=tools -o $@ k8s.io/code-generator/cmd/conversion-gen
 
+OPENAPI_GEN := $(BIN_DIR)/openapi-gen
+$(OPENAPI_GEN): go.mod go.sum | $(BIN_DIR)
+	go build -tags=tools -o $@ k8s.io/kube-openapi/cmd/openapi-gen
+
+APPLYCONFIGURATION_GEN := $(BIN_DIR)/applyconfiguration-gen
+$(APPLYCONFIGURATION_GEN): go.mod go.sum | $(BIN_DIR)
+	go build -tags=tools -o $@ k8s.io/code-generator/cmd/applyconfiguration-gen
+
+CLIENT_GEN := $(BIN_DIR)/client-gen
+$(CLIENT_GEN): go.mod go.sum | $(BIN_DIR)
+	go build -tags=tools -o $@ k8s.io/code-generator/cmd/client-gen
+
+LISTER_GEN := $(BIN_DIR)/lister-gen
+$(LISTER_GEN): go.mod go.sum | $(BIN_DIR)
+	go build -tags=tools -o $@ k8s.io/code-generator/cmd/lister-gen
+
+INFORMER_GEN := $(BIN_DIR)/informer-gen
+$(INFORMER_GEN): go.mod go.sum | $(BIN_DIR)
+	go build -tags=tools -o $@ k8s.io/code-generator/cmd/informer-gen
+
 ENVSUBST := $(BIN_DIR)/envsubst
 $(ENVSUBST): go.mod go.sum | $(BIN_DIR) # Build envsubst from tools folder.
 	go build -tags=tools -o $@ github.com/a8m/envsubst/cmd/envsubst
diff --git a/hack/tools/go.mod b/hack/tools/go.mod
index cb77df73bd..2d63f1545e 100644
--- a/hack/tools/go.mod
+++ b/hack/tools/go.mod
@@ -13,7 +13,7 @@ require (
 	sigs.k8s.io/cluster-api/hack/tools v0.0.0-20221129083400-679ae3e9e6b6
 	sigs.k8s.io/controller-runtime/tools/setup-envtest v0.0.0-20230926180527-c93e2abcb28e
 	sigs.k8s.io/controller-tools v0.16.5
-	sigs.k8s.io/kustomize/kustomize/v5 v5.7.1
+	sigs.k8s.io/kustomize/kustomize/v5 v5.5.0
 )
 
 require (
@@ -51,6 +51,7 @@ require (
 	github.com/google/go-cmp v0.7.0 // indirect
 	github.com/google/gofuzz v1.2.0 // indirect
 	github.com/google/pprof v0.0.0-20250403155104-27863c87afa6 // indirect
+	github.com/google/shlex v0.0.0-20191202100458-e7afc7fbc510 // indirect
 	github.com/google/uuid v1.6.0 // indirect
 	github.com/gophercloud/gophercloud/v2 v2.8.0 // indirect
 	github.com/gophercloud/utils/v2 v2.0.0-20241209100706-e3a3b7c07d26 // indirect
@@ -132,16 +133,16 @@ require (
 	k8s.io/gengo/v2 v2.0.0-20240826214909-a7b603a56eb7 // indirect
 	k8s.io/klog v0.2.0 // indirect
 	k8s.io/klog/v2 v2.130.1 // indirect
-	k8s.io/kube-openapi v0.0.0-20241212222426-2c72e554b1e7 // indirect
+	k8s.io/kube-openapi v0.0.0-20240228011516-70dd3763d340 // indirect
 	k8s.io/utils v0.0.0-20240711033017-18e509b52bc8 // indirect
 	sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.30.3 // indirect
 	sigs.k8s.io/cluster-api v1.9.11 // indirect
 	sigs.k8s.io/controller-runtime v0.19.7 // indirect
 	sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd // indirect
 	sigs.k8s.io/kubebuilder/docs/book/utils v0.0.0-20211028165026-57688c578b5d // indirect
-	sigs.k8s.io/kustomize/api v0.20.1 // indirect
-	sigs.k8s.io/kustomize/cmd/config v0.20.1 // indirect
-	sigs.k8s.io/kustomize/kyaml v0.20.1 // indirect
+	sigs.k8s.io/kustomize/api v0.18.0 // indirect
+	sigs.k8s.io/kustomize/cmd/config v0.15.0 // indirect
+	sigs.k8s.io/kustomize/kyaml v0.18.1 // indirect
 	sigs.k8s.io/structured-merge-diff/v4 v4.7.0 // indirect
 	sigs.k8s.io/yaml v1.6.0 // indirect
 )
diff --git a/hack/tools/go.sum b/hack/tools/go.sum
index 33c706113f..587ed4b7f3 100644
--- a/hack/tools/go.sum
+++ b/hack/tools/go.sum
@@ -129,6 +129,8 @@ github.com/google/gofuzz v1.2.0 h1:xRy4A+RhZaiKjJ1bPfwQ8sedCA+YS2YcCHW6ec7JMi0=
 github.com/google/gofuzz v1.2.0/go.mod h1:dBl0BpW6vV/+mYPU4Po3pmUjxk6FQPldtuIdl/M65Eg=
 github.com/google/pprof v0.0.0-20250403155104-27863c87afa6 h1:BHT72Gu3keYf3ZEu2J0b1vyeLSOYI8bm5wbJM/8yDe8=
 github.com/google/pprof v0.0.0-20250403155104-27863c87afa6/go.mod h1:boTsfXsheKC2y+lKOCMpSfarhxDeIzfZG1jqGcPl3cA=
+github.com/google/shlex v0.0.0-20191202100458-e7afc7fbc510 h1:El6M4kTTCOh6aBiKaUGG7oYTSPP8MxqL4YI3kZKwcP4=
+github.com/google/shlex v0.0.0-20191202100458-e7afc7fbc510/go.mod h1:pupxD2MaaD3pAXIBCelhxNneeOaAeabZDe5s4K6zSpQ=
 github.com/google/uuid v1.6.0 h1:NIvaJDMOsjHA8n1jAhLSgzrAzy1Hgr+hNrb57e+94F0=
 github.com/google/uuid v1.6.0/go.mod h1:TIyPZe4MgqvfeYDBFedMoGGpEw/LqOeaOT+nhxU+yHo=
 github.com/gophercloud/gophercloud/v2 v2.8.0 h1:of2+8tT6+FbEYHfYC8GBu8TXJNsXYSNm9KuvpX7Neqo=
@@ -469,8 +471,8 @@ k8s.io/klog v0.2.0/go.mod h1:Gq+BEi5rUBO/HRz0bTSXDUcqjScdoY3a9IHpCEIOOfk=
 k8s.io/klog/v2 v2.2.0/go.mod h1:Od+F08eJP+W3HUb4pSrPpgp9DGU4GzlpG/TmITuYh/Y=
 k8s.io/klog/v2 v2.130.1 h1:n9Xl7H1Xvksem4KFG4PYbdQCQxqc/tTUyrgXaOhHSzk=
 k8s.io/klog/v2 v2.130.1/go.mod h1:3Jpz1GvMt720eyJH1ckRHK1EDfpxISzJ7I9OYgaDtPE=
-k8s.io/kube-openapi v0.0.0-20241212222426-2c72e554b1e7 h1:hcha5B1kVACrLujCKLbr8XWMxCxzQx42DY8QKYJrDLg=
-k8s.io/kube-openapi v0.0.0-20241212222426-2c72e554b1e7/go.mod h1:GewRfANuJ70iYzvn+i4lezLDAFzvjxZYK1gn1lWcfas=
+k8s.io/kube-openapi v0.0.0-20240228011516-70dd3763d340 h1:BZqlfIlq5YbRMFko6/PM7FjZpUb45WallggurYhKGag=
+k8s.io/kube-openapi v0.0.0-20240228011516-70dd3763d340/go.mod h1:yD4MZYeKMBwQKVht279WycxKyM84kkAx2DPrTXaeb98=
 k8s.io/utils v0.0.0-20240711033017-18e509b52bc8 h1:pUdcCO1Lk/tbT5ztQWOBi5HBgbBP1J8+AsQnQCKsi8A=
 k8s.io/utils v0.0.0-20240711033017-18e509b52bc8/go.mod h1:OLgZIPagt7ERELqWJFomSt595RzquPNLL48iOWgYOg0=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.30.3 h1:2770sDpzrjjsAtVhSeUFseziht227YAWYHLGNM8QPwY=
@@ -493,14 +495,14 @@ sigs.k8s.io/kind v0.25.0 h1:ugUvgesHKKA0yKmD6QtYTiEev+kPUpGxdTPbMGf8VTU=
 sigs.k8s.io/kind v0.25.0/go.mod h1:t7ueEpzPYJvHA8aeLtI52rtFftNgUYUaCwvxjk7phfw=
 sigs.k8s.io/kubebuilder/docs/book/utils v0.0.0-20211028165026-57688c578b5d h1:KLiQzLW3RZJR19+j4pw2h5iioyAyqCkDBEAFdnGa3N8=
 sigs.k8s.io/kubebuilder/docs/book/utils v0.0.0-20211028165026-57688c578b5d/go.mod h1:NRdZafr4zSCseLQggdvIMXa7umxf+Q+PJzrj3wFwiGE=
-sigs.k8s.io/kustomize/api v0.20.1 h1:iWP1Ydh3/lmldBnH/S5RXgT98vWYMaTUL1ADcr+Sv7I=
-sigs.k8s.io/kustomize/api v0.20.1/go.mod h1:t6hUFxO+Ph0VxIk1sKp1WS0dOjbPCtLJ4p8aADLwqjM=
-sigs.k8s.io/kustomize/cmd/config v0.20.1 h1:4APUORmZe2BYrsqgGfEKdd/r7gM6i43egLrUzilpiFo=
-sigs.k8s.io/kustomize/cmd/config v0.20.1/go.mod h1:R7rQ8kxknVlXWVUIbxWtMgu8DCCNVtl8V0KrmeVd/KE=
-sigs.k8s.io/kustomize/kustomize/v5 v5.7.1 h1:sYJsarwy/SDJfjjLMUqwFDGPwzUtMOQ1i1Ed49+XSbw=
-sigs.k8s.io/kustomize/kustomize/v5 v5.7.1/go.mod h1:+5/SrBcJ4agx1SJknGuR/c9thwRSKLxnKoI5BzXFaLU=
-sigs.k8s.io/kustomize/kyaml v0.20.1 h1:PCMnA2mrVbRP3NIB6v9kYCAc38uvFLVs8j/CD567A78=
-sigs.k8s.io/kustomize/kyaml v0.20.1/go.mod h1:0EmkQHRUsJxY8Ug9Niig1pUMSCGHxQ5RklbpV/Ri6po=
+sigs.k8s.io/kustomize/api v0.18.0 h1:hTzp67k+3NEVInwz5BHyzc9rGxIauoXferXyjv5lWPo=
+sigs.k8s.io/kustomize/api v0.18.0/go.mod h1:f8isXnX+8b+SGLHQ6yO4JG1rdkZlvhaCf/uZbLVMb0U=
+sigs.k8s.io/kustomize/cmd/config v0.15.0 h1:WkdY8V2+8J+W00YbImXa2ke9oegfrHH79e+kywW7EdU=
+sigs.k8s.io/kustomize/cmd/config v0.15.0/go.mod h1:Jq57b0nPaoYUlOqg//0JtAh6iibboqMcfbtCYoWPM00=
+sigs.k8s.io/kustomize/kustomize/v5 v5.5.0 h1:o1mtt6vpxsxDYaZKrw3BnEtc+pAjLz7UffnIvHNbvW0=
+sigs.k8s.io/kustomize/kustomize/v5 v5.5.0/go.mod h1:AeFCmgCrXzmvjWWaeZCyBp6XzG1Y0w1svYus8GhJEOE=
+sigs.k8s.io/kustomize/kyaml v0.18.1 h1:WvBo56Wzw3fjS+7vBjN6TeivvpbW9GmRaWZ9CIVmt4E=
+sigs.k8s.io/kustomize/kyaml v0.18.1/go.mod h1:C3L2BFVU1jgcddNBE1TxuVLgS46TjObMwW5FT9FcjYo=
 sigs.k8s.io/randfill v0.0.0-20250304075658-069ef1bbf016/go.mod h1:XeLlZ/jmk4i1HRopwe7/aU3H5n1zNUcX6TM94b3QxOY=
 sigs.k8s.io/randfill v1.0.0 h1:JfjMILfT8A6RbawdsK2JXGBR5AQVfd+9TbzrlneTyrU=
 sigs.k8s.io/randfill v1.0.0/go.mod h1:XeLlZ/jmk4i1HRopwe7/aU3H5n1zNUcX6TM94b3QxOY=
diff --git a/hack/update-codegen.sh b/hack/update-codegen.sh
deleted file mode 100755
index ae760e6fea..0000000000
--- a/hack/update-codegen.sh
+++ /dev/null
@@ -1,74 +0,0 @@
-#!/usr/bin/env bash
-
-# Copyright 2024 The Kubernetes Authors.
-#
-# Licensed under the Apache License, Version 2.0 (the "License");
-# you may not use this file except in compliance with the License.
-# You may obtain a copy of the License at
-#
-# 	http://www.apache.org/licenses/LICENSE-2.0
-#
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-
-set -euo pipefail
-set -x
-
-SCRIPT_ROOT=$(realpath $(dirname "${BASH_SOURCE[0]}"))
-PROJECT_ROOT=$(realpath "${SCRIPT_ROOT}/..")
-
-GENERATED_PKG="pkg/generated"
-
-# Ensure tools built by kube_codegen go in our own GOBIN rather than something
-# shared under GOPATH. This guards against these tools being rebuilt by some
-# other concurrent invocation, potentially with a different version.
-export GOBIN="${PROJECT_ROOT}/bin"
-
-cd "$PROJECT_ROOT"
-
-# For this to work, the current working directory must be under a Go module which
-# lists k8s.io/code-generator
-CODEGEN_PKG=$(go list -f '{{ .Dir }}' k8s.io/code-generator)
-
-source "${CODEGEN_PKG}/kube_codegen.sh"
-
-# Deep-copies and what-not are generated by controller-gen, so we don't need to use kube::codegen::gen_helpers
-
-declare -a gen_openapi_args=(
-    --report-filename "${PROJECT_ROOT}/api_violations.report"
-    --output-dir "${PROJECT_ROOT}/cmd/models-schema"
-    --output-pkg main
-    --boilerplate "${SCRIPT_ROOT}/boilerplate.go.txt"
-
-    # We need to include all referenced types in our generated openapi schema
-    # or applyconfiguration-gen won't be able to use it. Helpfully it will
-    # generate an error including the missing type.
-    --extra-pkgs sigs.k8s.io/cluster-api/api/v1beta1
-    --extra-pkgs k8s.io/api/core/v1
-)
-
-# It is an error to make a change which updates the api violations. When doing
-# this intentionally, for example when fixing violations, run with
-# UPDATE_API_KNOWN_VIOLATIONS=true to update the api violations report.
-if [ ! -z "${UPDATE_API_KNOWN_VIOLATIONS:-}" ]; then
-    gen_openapi_args+=(--update-report)
-fi
-
-kube::codegen::gen_openapi "${gen_openapi_args[@]}" "${PROJECT_ROOT}/api"
-
-openapi="${PROJECT_ROOT}/openapi.json"
-go run "${PROJECT_ROOT}/cmd/models-schema" | jq > "$openapi"
-
-kube::codegen::gen_client \
-    --with-applyconfig \
-    --with-watch \
-    --applyconfig-openapi-schema "$openapi" \
-    --output-dir "${PROJECT_ROOT}/${GENERATED_PKG}" \
-    --output-pkg sigs.k8s.io/cluster-api-provider-openstack/${GENERATED_PKG} \
-    --versioned-name clientset \
-    --boilerplate "${SCRIPT_ROOT}/boilerplate.go.txt" \
-    --one-input-api "api" \
-    "${PROJECT_ROOT}"