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Mar 31, 2023
CVG Q1 2023 Earnings Report
Reported record quarterly revenues and improved profits driven by new and existing business volumes, improved pricing, and lowered costs.
Key Takeaways
CVG reported record first-quarter revenue of $262.7 million, a 7.5% increase year-over-year. The company's profits improved due to new and existing business volumes, improved pricing, and lowered costs, with net income reaching $8.7 million, or $0.26 per diluted share.
Revenues increased by 7.5% to $262.7 million due to improved demand, price realization, and new business wins.
Operating income increased by 74% to $14.6 million, driven by improved pricing and cost management.
Net income increased to $8.7 million, with earnings per share of $0.26.
New business wins in the quarter totaled approximately $85 million, primarily within the Electrical Systems segment.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Electrical Systems Revenue
CapyFin.com Forward Guidance
CVG expects sustainable margin performance for fiscal year 2023, and they are on track to deliver their 2027 revenue target of $1.5 billion.
Positive Outlook
- Current revenue run rate combined with new wins ramping up puts CVG on track to deliver the 2027 revenue target.
- Continued focus on inflation management.
- Continued focus on cost reduction.
- Continued focus on price maintenance.
- Accretive margin profile of new business wins gives them confidence as they work toward achieving a 9% EBITDA margin target by 2027.