CVG Q4 2022 Earnings Report
Key Takeaways
CVG reported a slight increase in revenue and adjusted EBITDA for Q4 2022, with revenue reaching $234.9 million, a 2.6% increase year-over-year, and adjusted EBITDA of $13.3 million, a 3.1% increase. The company experienced a net loss of $32.0 million due to non-cash charges. Strong free cash flow and debt paydown exceeded target at ~$43 million.
Revenue increased by 2.6% to $234.9 million due to demand and price increases.
Net loss of $32.0 million was caused by non-cash charges related to tax valuation allowance changes and pension settlement.
Adjusted EBITDA increased by 3.1% to $13.3 million due to pricing actions, solid demand, and new business revenues.
Price negotiations secured further increases beginning January 2023.
CVG
CVG
CVG Revenue by Segment
Forward Guidance
CVG anticipates a year of record revenue, higher EBITDA, continued free cash flow and debt paydown, $30 million of cost-out, and at least $100 million of targeted new business wins, concentrated in Electrical Systems.
Positive Outlook
- Expecting 2023 to be a year of record revenue.
- Expecting higher EBITDA in 2023.
- Anticipating continued free cash flow and debt paydown.
- Targeting $30 million of cost-out.
- Aiming for at least $100 million of targeted new business wins, concentrated in Electrical Systems.