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CVG Q1 2025 Earnings Report
CVG reported a decrease in first quarter 2025 revenues due to softening markets, but showed sequential improvement in margins and free cash flow, enabling further debt paydown.
Key Takeaways
CVG announced its first quarter 2025 financial results, with revenues of $169.8 million, a decrease of 12.7% compared to the prior year. The company reported a net loss of $3.1 million, or $(0.09) per diluted share. Despite the revenue decline, CVG achieved significantly improved free cash flow of $11.2 million, leading to a $11.7 million decrease in net debt.
First quarter 2025 revenues decreased by 12.7% to $169.8 million, primarily due to softening in global Construction and Agriculture markets and North America Class 8 truck demand.
The company reported a net loss from continuing operations of $3.1 million, or $(0.09) per diluted share, compared to net income of $1.4 million in the prior year.
Adjusted EBITDA for the quarter was $5.8 million, down 40.2% from the prior year, with an adjusted EBITDA margin of 3.4%.
Free cash flow significantly improved to $11.2 million, up $17.7 million, driven by better working capital management, leading to a $11.7 million reduction in net debt.
Revenue by Segment
Forward Guidance
CVG updated its full-year 2025 outlook, reflecting current market conditions and economic environment. The company expects net sales to be between $660 million and $690 million, and adjusted EBITDA to be between $22 million and $27 million, with free cash flow greater than $20 million.
Positive Outlook
- Strategic portfolio realignment and operational efficiency efforts are beginning to show benefits.
- Focused portfolio, re-segmentation, and improved value capture as end markets recover.
- Expect contribution from new business wins outside of Construction and Agriculture end markets in Electrical Systems to soften decline.
- Commitment to execution, delivery, and driving operational efficiency.
- Significantly improved free cash flow enables further debt paydown.
Challenges Ahead
- Current industry forecasts for North America Class 8 truck builds are expected to be at 255,000 units, down from 332,372 units in 2024.
- Construction and Agriculture end markets are projected to decline approximately 5-15% in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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