CVG Q2 2023 Earnings Report
Key Takeaways
CVG reported strong second quarter results with revenues of $262.2 million, up 4.5% year-over-year. EPS was $0.30, and adjusted EBITDA was $20.8 million, or 7.9% of revenue. The company's strategy execution and operational excellence drove improved results.
Revenues increased by 4.5% to $262.2 million, primarily driven by strong price realization.
Operating income increased by 156.0% to $15.9 million, with adjusted operating income up 106.2% to $16.7 million.
Net income increased to $10.1 million, or $0.30 per diluted share, with adjusted net income at $10.7 million, or $0.32 per diluted share.
Adjusted EBITDA increased by 67.7% to $20.8 million, with an adjusted EBITDA margin of 7.9%.
CVG
CVG
CVG Revenue by Segment
Forward Guidance
CVG expects to deliver record revenues in 2023 and anticipates full year Adjusted EBITDA margins to show significant expansion versus last year, based on the current vehicle production outlook for the second half of the year. The company also believes it is on track to deliver its 2027 targets of $1.5 billion in revenue and 9% EBITDA margin.
Positive Outlook
- On track to deliver record revenues in 2023
- Expects full year Adjusted EBITDA margins to show significant expansion versus last year
- Electrical Systems plant expansions are on track
- Aldama, Mexico plant is open and ramping up production
- On track to deliver 2027 targets of $1.5 billion in revenue and 9% EBITDA margin
Challenges Ahead
- Customer demand decrease is expected to continue in the third quarter for Industrial Automation Segment
- Volatility in and disruption to the global economic environment
- Changes in the Class 8 and Class 5-7 North America truck build rates
- Performance of the global construction equipment business
- Competition faced by the Company