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Jun 30, 2025
CVG Q2 2025 Earnings Report
CVG reported its second quarter 2025 results, highlighting strong free cash flow generation despite a decline in revenues and net income due to softening global demand.
Key Takeaways
CVG experienced a challenging second quarter in 2025 with revenues down 11.2% to $172.0 million, primarily due to softening global demand across all segments. The company reported a net loss from continuing operations of $4.1 million and diluted EPS of $(0.12). Despite these declines, CVG achieved strong free cash flow of $17.3 million, a significant increase from the prior year, driven by improved working capital management. Adjusted EBITDA also decreased by 36.6% to $5.2 million.
Revenues for Q2 2025 were $172.0 million, an 11.2% decrease year-over-year, attributed to softening global demand.
The company reported a net loss from continuing operations of $4.1 million, or $(0.12) per diluted share, compared to a net loss of $1.3 million, or $(0.04) per diluted share, in the prior year.
Adjusted EBITDA for the quarter was $5.2 million, down 36.6% from $8.2 million in Q2 2024.
CVG generated strong free cash flow of $17.3 million, an increase of $16.5 million, primarily due to better working capital management.
Revenue by Segment
Forward Guidance
CVG updated its full-year 2025 outlook, expecting net sales between $650 million and $670 million, adjusted EBITDA between $21 million and $25 million, and free cash flow of at least $30 million. This outlook reflects anticipated declines in Construction and Agriculture end markets, partially offset by new business wins in Electrical Systems.
Positive Outlook
- Raising free cash flow outlook to at least $30 million for the full fiscal year.
- Continued strong free cash generation and debt paydown remain key focus areas.
- Improved performance in Global Electrical Systems segment driven by new business wins outside of Construction and Agriculture.
- Operational efficiency improvements driving sequential gross margin improvement.
- Refinancing of credit facilities provides increased financial flexibility.
Challenges Ahead
- Updated net sales outlook lowered to $650-$670 million from $660-$690 million.
- Adjusted EBITDA outlook lowered to $21-$25 million from $22-$27 million.
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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