CVG Q1 2023 Earnings Report
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
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CVG Revenue by Segment
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.