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CVG Reports First Quarter 2025 Results
CVGICommercial Vehicle(CVGI) GlobeNewswire·2025-05-06 21:00

Core Viewpoint - CVG reported a challenging first quarter for 2025, with a significant decline in revenues and net loss, but improved free cash flow and operational efficiency initiatives are underway to address these challenges [1][4][5]. Financial Performance - First quarter revenues were 169.8million,down12.7169.8 million, down 12.7% from 194.6 million in the prior year, primarily due to softening demand in global construction and agriculture markets, as well as decreased North American Class 8 truck demand [5][10]. - Operating income decreased to 1.4millionfrom1.4 million from 4.5 million year-over-year, with adjusted operating income at 2.1millioncomparedto2.1 million compared to 6.3 million [5][10]. - The net loss from continuing operations was 3.1million,or3.1 million, or (0.09) per diluted share, compared to a net income of 1.4million,or1.4 million, or 0.05 per diluted share, in the prior year [5][10]. - Adjusted EBITDA was 5.8million,down40.25.8 million, down 40.2% from 9.7 million, with an adjusted EBITDA margin of 3.4%, down from 5.0% [5][10]. Cash Flow and Debt Management - Free cash flow improved to 11.2million,anincreaseof11.2 million, an increase of 17.7 million, attributed to better working capital management [5][10]. - Net debt decreased by 11.7millioncomparedtotheendof2024,indicatingprogressindebtpaydown[5][10].StrategicInitiatives−Thecompanycompletedastrategicreorganizationintothreesegments:GlobalSeating,GlobalElectricalSystems,andTrimSystemsandComponents,aimingtoenhanceoperationalefficiency[2][4].−Managementemphasizedtheimportanceofcashgenerationanddebtreductionaskeypriorities,alongsideongoingeffortstoimprovemarginsandreducecapitalexpenditures[4][5].Outlook−CVGupdateditsfull−year2025guidance,projectingnetsalesbetween11.7 million compared to the end of 2024, indicating progress in debt paydown [5][10]. Strategic Initiatives - The company completed a strategic reorganization into three segments: Global Seating, Global Electrical Systems, and Trim Systems and Components, aiming to enhance operational efficiency [2][4]. - Management emphasized the importance of cash generation and debt reduction as key priorities, alongside ongoing efforts to improve margins and reduce capital expenditures [4][5]. Outlook - CVG updated its full-year 2025 guidance, projecting net sales between 660 million and 690million,downfromthepreviousoutlookof690 million, down from the previous outlook of 670 million to 710million[14].−AdjustedEBITDAisnowexpectedtobebetween710 million [14]. - Adjusted EBITDA is now expected to be between 22 million and 27million,revisedfrom27 million, revised from 25 million to $30 million [14]. - The company anticipates a decline of approximately 5-15% in construction and agriculture end markets for 2025, but expects new business contributions in Electrical Systems to mitigate this decline [15].