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Jun 30
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.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Seating Revenue
CapyFin.comGlobal Electrical Systems Revenue
CapyFin.comTrim Systems and Components Revenue
CapyFin.com 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.
- Continued macroeconomic volatility, particularly softening in Construction and Agriculture and Class 8 end markets.
- Ongoing concerns around tariff impacts.
- North America Class 8 truck production levels expected to be 252,000 units in 2025, down from 332,372 units in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income