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Financial Data and Key Metrics Changes - Consolidated third quarter 2025 revenue was $152.5 million, down from $171.8 million in the prior year, primarily due to softening customer demand in North America [11] - Adjusted EBITDA for the third quarter was $4.6 million, compared to $4.3 million in the prior year, with adjusted EBITDA margins increasing to 3.0% from 2.5% [11] - Net loss for the quarter was $6.8 million, or a loss of $0.20 per diluted share, compared to a net loss of $0.9 million, or a loss of $0.03 per diluted share in the prior year [12] - Free cash flow from continuing operations was negative $3.4 million, down from positive $17.1 million in the prior year [12] Business Line Data and Key Metrics Changes - Global ceiling segment revenues were $68.7 million, a decrease of 10% year-over-year, but adjusted operating income increased to $2.9 million [13][14] - Global electrical systems segment revenues increased by 6% to $49.5 million, with adjusted operating income rising to $1.4 million [14][15] - Trim systems and components revenues decreased by 29% to $34.3 million, with an adjusted operating loss of $0.3 million compared to profits of $4.1 million in the prior year [16][17] Market Data and Key Metrics Changes - ACT Research forecasts a 28% decline in North American Class 8 heavy truck build volumes for 2025, with a further decline of 14% in 2026 [18] - The construction market is expected to decline by 5-10%, while agriculture markets are projected to decrease by 5-15% due to higher interest rates and lower commodity prices [19] Company Strategy and Development Direction - The company is focused on driving operational efficiencies and reducing costs, including right-sizing manufacturing footprints and optimizing production capacity in regions with better demand [6][9] - The global electrical systems segment is a key area for growth, with expectations for sales to increase in the high single-digit to low double-digit percentage range in 2026 [20][21] - The company is actively pursuing new business opportunities in autonomous vehicles and infrastructure markets to enhance revenue and margin growth [21][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged broader market and macroeconomic uncertainties but expressed confidence in the company's ability to enhance shareholder value through operational improvements and new business wins [9][28] - The company expects to generate at least $30 million in free cash flow for the full year, which will be used to pay down debt [26] Other Important Information - The company has generated $25 million in free cash flow year-to-date, up $14 million from the previous year, driven by improved working capital performance [6] - The net leverage ratio at the end of the third quarter was 4.9 times, slightly up from 4.8 times at the end of the second quarter [13] Q&A Session Summary Question: How much more can be achieved in efficiency improvements before needing to increase CapEx? - Management indicated that there are still opportunities for further operational efficiency improvements without significantly impacting the ability to respond to market changes [34][35] Question: Why is there a larger reduction in adjusted EBITDA compared to revenue guidance? - The larger reduction in adjusted EBITDA is primarily due to deleveraging and the fixed cost nature of the North American Class 8 business, which has been significantly impacted by reduced volumes [38] Question: Can the new electrical system products offset declines in the Class 8 business in 2026? - Management expects that the ramp-up of new business in the electrical systems segment will help offset the anticipated downturn in the Class 8 business [39] Question: When will the ramp of new programs in electrical systems reach full annualized rates? - The ramp in volume is expected to start in the second half of 2026, with full annualized rates anticipated in late 2027 or 2028 [44][45] Question: What is the status of tariff negotiations with customers and suppliers? - Management has engaged with customers to provide data on tariff impacts and has made progress in negotiations for price adjustments and mitigation strategies [50][51]

Financial Performance - Q3 2025 revenue was $152.5 million[6], down 11.2% year-over-year[14] - Adjusted EBITDA increased 7% year-over-year to $4.6 million[14] - Adjusted EPS was ($0.14) per diluted share[6] - Adjusted gross margin improved to 12.1%, up 10 bps sequentially from Q2 2025 and 370 bps from Q4 2024[6] - Year-to-date free cash flow was $25 million, an improvement of $14 million over the prior year[6] Segment Performance - Global Seating revenue decreased 10% year-over-year in Q3 2025 to $68.7 million[16], but adjusted operating income increased by $3.7 million[22] - Global Electrical Systems revenue increased 6% year-over-year in Q3 2025 to $49.5 million[24], and adjusted operating income increased by $1.6 million[30] - Trim Systems and Components revenue decreased 29% year-over-year in Q3 2025 to $34.3 million[32], with an adjusted operating income decline of $4.4 million[35] Outlook and Strategy - The company expects free cash flow of at least $30 million in 2025[50] - The company is targeting a $30 million improvement in working capital in 2025[48] - The company updated its fiscal 2025 outlook, projecting net sales of $640-$650 million and adjusted EBITDA of $17-$19 million[49]

Financial Performance - Consolidated revenues decreased by $19.3 million, or 11.2%, to $152.5 million for the three months ended September 30, 2025, primarily due to softening customer demand in North America [132]. - Consolidated revenues decreased by $65.8 million, or 11.8%, primarily due to softening customer demand across all segments [154]. - Net loss from continuing operations was $6.8 million for the three months ended September 30, 2025, compared to a net loss of $0.9 million for the same period in 2024, reflecting the overall decline in revenues [139]. - Net loss from continuing operations was $14.1 million for the nine months ended September 30, 2025, compared to a net loss of $0.7 million for the same period in 2024 [162]. Segment Performance - The Global Seating Segment reported revenues of $68.7 million, a decrease of $7.9 million, or 10.4%, driven by lower sales volume [141]. - Global Seating Segment revenues decreased by $23.3 million, or 9.7%, driven by decreased customer demand in North America [163]. - The Global Electrical Systems Segment experienced a revenue increase of $2.8 million, or 5.9%, reaching $49.5 million, attributed to new business wins [145]. - Global Electrical Systems Segment revenues decreased by $5.6 million, or 3.5%, while gross profit increased by $3.4 million, or 29.0% [167]. - The Trim Systems and Components Segment saw a significant revenue decline of $14.1 million, or 29.2%, with revenues falling to $34.3 million due to reduced customer demand [149]. - Trim Systems and Components Segment revenues decreased by $37.0 million, or 23.0%, with a gross profit decrease of $8.7 million, or 44.9% [171]. Profitability and Expenses - Gross profit margin improved to 10.5% for the three months ended September 30, 2025, compared to 9.6% for the same period in 2024, despite a $0.4 million decrease in gross profit [134]. - Gross profit decreased by $6.7 million, with a gross profit margin of 10.8% for the nine months ended September 30, 2025, compared to 10.7% for the same period in 2024 [156]. - Selling, general and administrative expenses (SG&A) decreased by $0.4 million, or 2.2%, to $17.1 million, primarily due to reduced incentive compensation and restructuring charges [135]. - Interest expense rose by $1.7 million to $4.1 million for the three months ended September 30, 2025, primarily due to higher weighted average margins on debt balances [137]. Cash Flow and Financing - Cash provided by operating activities was $32.4 million for the nine months ended September 30, 2025, compared to cash used of $6.8 million in the prior year [178]. - Net cash used in financing activities was $22.7 million, primarily due to refinancing costs totaling $6.1 million and a net debt reduction of $16.3 million [180]. - As of September 30, 2025, the company had $31.3 million in cash, with $1.1 million in outstanding letters of credit and $96.5 million available under credit facilities [175]. - The company closed on $210 million in senior secured credit facilities, which includes a $95 million term loan and a $115 million revolving credit facility, maturing on June 27, 2030 [127]. Organizational Changes and Future Outlook - The company announced a new organizational structure effective January 1, 2025, reorganizing into three operating divisions: Global Electrical Systems, Global Seating, and Trim Systems and Components [129]. - The company expects capital expenditures in the range of $9 million to $12 million for 2025 [179]. - The company acknowledges that forward-looking statements may differ materially from actual results due to various economic and competitive factors [184]. - As of September 30, 2025, there have been no material changes in the company's exposure to market risk compared to disclosures in the 2024 Form 10-K [186].

Financial Performance - Third quarter 2025 revenues were $152.5 million, a decrease of 11.2% compared to $171.8 million in the prior year period[6] - Adjusted EBITDA for the third quarter was $4.6 million, up 7.0% from $4.3 million in the prior year, with an adjusted EBITDA margin of 3.0%, an increase from 2.5%[3] - Net loss from continuing operations was $6.8 million, or $(0.20) per diluted share, compared to a net loss of $0.9 million, or $(0.03) per diluted share in the prior year[7] - Adjusted operating income for the third quarter was $1.6 million, compared to an adjusted operating loss of $0.4 million in the prior year, driven by improved gross margin performance and lower SG&A expenses[3] - Revenues for the three months ended September 30, 2025, were $152.489 million, a decrease of 11.2% compared to $171.772 million for the same period in 2024[22] - Gross profit for the three months ended September 30, 2025, was $16.043 million, slightly down from $16.421 million in the prior year, representing a gross margin of 10.5%[22] - Net loss from continuing operations for the three months ended September 30, 2025, was $(6.820) million, compared to a loss of $(0.883) million in the same period of 2024[22] - Adjusted net income (loss) from continuing operations for the three months ended September 30, 2025, was $(4.587) million, reflecting a significant decline from $(0.378) million in the prior year[29] - The company reported an operating loss of $(1.061) million for the three months ended September 30, 2025, consistent with the loss of $(1.060) million in the same period of 2024[29] - The company’s diluted earnings per share from continuing operations for the three months ended September 30, 2025, was $(0.20), compared to $(0.03) in the same period of 2024[22] - EBITDA for Q3 2025 was $1,664 million, representing 1.1% of revenues, down from $3,675 million or 2.1% in Q3 2024[31] - Adjusted EBITDA for Q3 2025 increased to $4,642 million, or 3.0% of revenues, compared to $4,348 million or 2.5% in Q3 2024[31] - Free cash flow from continuing operations for Q3 2025 was $(3,446) million, a significant decrease from $17,148 million in Q3 2024[33] - Total operating income for the nine months ended September 30, 2025, was $1,143 million, compared to $4,513 million for the same period in 2024[32] - Adjusted operating income for the nine months ended September 30, 2025, was $5,687 million, reflecting a decrease from $10,738 million in 2024[32] Cash Flow and Assets - The company expects to generate at least $30 million in free cash flow for the full fiscal year 2025[4] - Cash increased to $31.326 million as of September 30, 2025, from $26.630 million at December 31, 2024[24] - Cash flows from operating activities for Q3 2025 were $(1,686) million, compared to $(4,190) million in Q3 2024[33] Debt and Interest - Interest associated with debt increased to $4.1 million in the third quarter 2025, up from $2.4 million in the prior year due to higher interest rates[6] - Interest expense for Q3 2025 was $4,068 million, up from $2,371 million in Q3 2024[31] Segment Performance - The Global Electrical Systems segment returned to year-over-year revenue growth in the third quarter, driven by new business wins outside of the Construction and Agriculture end markets[2] Guidance and Forecast - Full year 2025 sales guidance has been updated to a range of $640 million to $650 million, down from the previous range of $650 million to $670 million[11] - The North American Class 8 truck production forecast for 2025 is expected to be 239,000 units, down 28% from 2024 actual production levels[13] Expenses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $17.104 million, a slight decrease from $17.481 million in the prior year[22] - The company is focused on reducing SG&A expenses and optimizing operations to improve profitability amid lower demand[2] Balance Sheet - Total assets as of September 30, 2025, were $400.265 million, down from $424.573 million at the end of 2024[24] - Total liabilities decreased to $263.738 million as of September 30, 2025, compared to $288.981 million at December 31, 2024[24] Restructuring and Tax - The company reported a restructuring expense of $2,703 million for Q3 2025, compared to $4,217 million in Q3 2024[31] - The company recorded a provision for income taxes of $687 million in Q3 2025, compared to a tax benefit of $(1,515) million in Q3 2024[31]

Core Insights - CVG reported third quarter 2025 revenues of $152.5 million, a decrease of 11.2% compared to $171.8 million in the prior year, primarily due to lower demand in key markets [3][4][9] - The company experienced an operating loss of $1.1 million, consistent with the previous year, but adjusted operating income improved to $1.6 million from an adjusted operating loss of $0.4 million, driven by better gross margin performance and reduced SG&A expenses [4][9][10] - Net loss from continuing operations was $6.8 million, or $(0.20) per diluted share, compared to a net loss of $0.9 million, or $(0.03) per diluted share, in the prior year [4][5][9] - Adjusted EBITDA increased by 7.0% to $4.6 million, with an adjusted EBITDA margin of 3.0%, up from 2.5% [4][5][9] Financial Performance - Revenues for the third quarter 2025 were $152.5 million, down from $171.8 million in 2024, reflecting a decrease of $19.3 million [3][4] - Gross profit was $16.0 million, slightly down from $16.4 million, with a gross margin improvement to 10.5% from 9.5% [3][4] - Adjusted gross profit decreased to $18.4 million from $19.9 million, but adjusted gross margin improved to 12.1% from 11.6% [3][4] - Operating income remained flat at $(1.1) million, while adjusted operating income rose to $1.6 million from $(0.4) million [3][4] Segment Performance - The Global Electrical Systems segment returned to year-over-year revenue growth, driven by new business wins outside of the Construction and Agriculture markets [2][8] - The Global Seating segment also saw margin expansion despite a softer demand environment [2][8] - The Trim Systems and Components segment continued to experience weakness due to declining Class 8 truck production [2][8] Outlook - CVG updated its full year 2025 guidance, projecting net sales between $640 million and $650 million, down from the previous estimate of $650 million to $670 million [11] - Adjusted EBITDA expectations were revised down to a range of $17 million to $19 million from $21 million to $25 million [11] - The company anticipates a decline of approximately 5-15% in the Construction and Agriculture end markets for 2025, but expects contributions from new business in Electrical Systems to mitigate this decline [12]

Vehicle systems manufacturer Commercial Vehicle Group (NASDAQ:CVGI) will be reporting results this Monday afternoon. Here’s what investors should know. Commercial Vehicle Group beat analysts’ revenue expectations by 6.4% last quarter, reporting revenues of $172 million, down 11.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and full-year EBITDA guidance exceeding analysts’ expectations. Is Commercial Vehicle Group a buy or sell going into ...

Core Points - Commercial Vehicle Group (CVG) will hold its quarterly conference call on November 11, 2025, at 8:30 a.m. ET to discuss third quarter 2025 financial results [1] - A press release and presentation will be issued prior to the conference call [1] Conference Call Details - Toll-free participants can dial (800) 549-8228 using conference code 19689, while international participants can dial (289) 819-1520 with the same code [2] - The call will be webcast and accessible through the "Investors" section of CVG's website, where it will be archived for one year [2] Replay Information - A telephonic replay of the conference call will be available until November 25, 2025 [3] - Toll-free callers can access the replay by dialing (+1) 888 660 6264 with access code 19689 , and toll callers can dial (+1) 289 819 1325 [3] Company Overview - CVG provides solutions to complex design, engineering, and manufacturing problems, aiming to create positive change for customers, industries, and communities [4] - Additional information about the company and its products can be found on its website [4] Investor Relations Contact - Investor relations can be contacted through Ross Collins or Nathan Skown at Alpha IR Group via email [5]

Group 1 - Commercial Vehicle Group, Inc. (CVGI) has been added to the Zacks Rank 5 (Strong Sell) List due to a 116.7% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - First Internet Bancorp (INBK) is also on the Zacks Rank 5 (Strong Sell) List, with a 38.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - MannKind Corporation (MNKD) has seen a 50% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 (Strong Sell) List [2]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 was $172 million, down from $193.7 million in the prior year, primarily due to softening customer demand [13] - Adjusted EBITDA was $5.2 million, compared to $8.2 million in the prior year, with adjusted EBITDA margins at 3%, down 120 basis points from 4.2% [13] - Free cash flow for the quarter was $17.3 million, a significant increase from $0.8 million in the prior year [15] - Net loss for the quarter was $4.1 million, or a loss of $0.12 per diluted share, compared to a net loss of $1.3 million, or a loss of $0.04 per diluted share in the prior year [14] Business Line Data and Key Metrics Changes - Global Seating segment revenues decreased by 10% to $74.5 million, with adjusted operating income increasing by $200,000 to $3.1 million [15][16] - Global Electrical segment revenues remained flat at $53.6 million, with adjusted operating income increasing by $400,000 to $1.2 million [16] - Trim Systems and Components revenues decreased by 24% to $43.9 million, with adjusted operating income down by $3.7 million to $300,000 [18] Market Data and Key Metrics Changes - The Class 8 heavy truck build forecast for 2025 indicates a 24% decline in year-over-year volumes, with flat projections for 2026 and a 12% improvement expected in 2027 [20] - The construction market is expected to decline by approximately 5% to 15%, while the agriculture market is anticipated to decline in the same range due to economic factors [20] Company Strategy and Development Direction - The company is focused on improving cash generation and aligning SG&A structure with current revenue, expecting $30 million in working capital reduction [22] - Strategic portfolio actions taken in 2024 are expected to lower cost structures and improve earnings power as market demand recovers [22] - The company is actively pursuing new business opportunities and maintaining strong relationships with customers to gain market share [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged broader market and macroeconomic uncertainties but remains optimistic about long-term recovery in construction and agriculture markets [20] - The company is adjusting its full-year 2025 revenue guidance to a range of $650 million to $670 million, down from $660 million to $690 million [24] - Free cash flow guidance for 2025 has been increased to at least $30 million, reflecting strong year-to-date performance [25] Other Important Information - The company completed a debt refinancing during the second quarter, providing more financial flexibility for operational initiatives [8] - The net leverage ratio at the end of Q2 was 4.8x, down from 5.0x at the end of Q1 [15] Q&A Session Summary Question: Are you seeing new business being bid and won? - Management confirmed ongoing new business wins and a robust pipeline, although some implementation dates have shifted due to economic conditions [30][32] Question: How much of the expected cost savings are permanent? - Management indicated that cost savings are both material and permanent, with ongoing actions to optimize SG&A and manufacturing overhead [35][36] Question: How is the tariff renegotiation process progressing? - Management expects to complete tariff renegotiations by the end of the year, with ongoing assessments of impacts and mitigation strategies [38][39] Question: How did July perform relative to Q2? - Management noted increased downtime in July due to OEMs' schedules, requiring adjustments in manufacturing and inventory management [42] Question: Is there a natural replacement cycle for Class 8 trucks? - Management acknowledged a replacement cycle exists, but current economic uncertainty is causing delays in purchases [53][55]