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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.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Seating Revenue
CapyFin.comGlobal Electrical Systems Revenue
CapyFin.com 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.
- Macroeconomic uncertainty could affect end-market demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income