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Sep 30
CVG Q3 2025 Earnings Report
CVG reported its third quarter 2025 results, with sales of $152.5 million and an EPS of $(0.20).
Key Takeaways
CVG experienced an 11.2% decrease in revenues to $152.5 million in Q3 2025, primarily due to softening North American demand. Despite this, the company showed resilience with improved adjusted operating income and adjusted EBITDA, driven by operational efficiency and cost reduction efforts. The Global Electrical Systems segment returned to growth, while Global Seating expanded margins, but the Trim Systems and Components segment faced continued weakness.
Revenues decreased by 11.2% to $152.5 million, mainly due to lower North American demand.
Adjusted operating income improved significantly to $1.6 million from a loss of $0.4 million in the prior year, attributed to better gross margin and lower SG&A.
Adjusted EBITDA increased by 7.0% to $4.6 million, with an adjusted EBITDA margin of 3.0%, up from 2.5%.
Global Electrical Systems segment returned to year-over-year revenue growth, driven by new business wins, while Global Seating also expanded margins.
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, lowering net sales expectations but maintaining free cash flow guidance. The outlook reflects anticipated declines in North American Class 8 truck production, and Construction and Agriculture end markets, partially offset by new business wins in Electrical Systems.
Positive Outlook
- Expectation to drive at least $30 million in free cash flow for the full fiscal year 2025, consistent with prior guidance.
- New business wins outside of Construction and Agriculture end markets in Electrical Systems are expected to soften overall declines.
- Continued focus on cash generation and debt paydown as near-term priorities.
- Efforts to drive further cost reductions and improve overall operational efficiency are ongoing.
- The company is launching previously won new customer programs across all segments.
Challenges Ahead
- Net Sales outlook for full year 2025 revised downwards to $640 - $650 million from $650 - $670 million.
- Adjusted EBITDA outlook for full year 2025 revised downwards to $17 - $19 million from $21 - $25 million.
- North American Class 8 truck production levels are expected to be 239,000 units, down 28% versus 2024 actuals.
- North American Class 8 truck production forecast is down 5% from the Q2 2025 earnings release forecast.
- 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