Loading...
•
Dec 31, 2024
CVG Q4 2024 Earnings Report
CVG reported a decline in revenue and a net loss in Q4 2024 due to weak demand and operational inefficiencies.
Key Takeaways
CVG's Q4 2024 revenue declined 15.7% to $163.3 million, driven by lower demand in the Construction and Agriculture sectors and a decrease in Class 8 Heavy Truck builds. The company reported a net loss of $35.0 million, including a $28.8 million non-cash tax valuation allowance. Adjusted EBITDA fell sharply to $0.9 million, reflecting lower sales volumes and operational challenges. Cash and cash equivalents stood at $26.6 million at quarter-end, with total liquidity of $111.0 million.
Revenue declined 15.7% year-over-year to $163.3 million.
Net loss widened to $35.0 million, primarily due to a non-cash tax valuation allowance.
Adjusted EBITDA dropped 89.2% to $0.9 million, reflecting weak demand and inefficiencies.
Total liquidity stood at $111.0 million, including $26.6 million in cash and credit availability.
Revenue by Segment
Forward Guidance
CVG expects modest revenue recovery in 2025, supported by new business wins and cost optimization efforts.
Positive Outlook
- Projected revenue between $670M and $710M in FY25.
- Anticipated Adjusted EBITDA of $25M-$30M for FY25.
- New production ramp-up in Morocco and Mexico expected to improve margins.
- Strategic shift towards high-growth Electrical Systems segment.
- Operational improvements expected to drive cost efficiencies.
Challenges Ahead
- Continued weakness in Construction and Agriculture markets expected in 2025.
- Class 8 Heavy Truck builds projected to decline in 2025.
- Ongoing operational inefficiencies may impact profitability.
- Higher freight and material costs remain a concern.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...