Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $169.8 million, down from $194.6 million in the prior year, primarily due to softening in global construction and agriculture end markets as well as North American Class eight truck demand [12] - Adjusted EBITDA for Q1 2025 was $5.8 million, compared to $9.7 million in the prior year, with adjusted EBITDA margins at 3.4%, down 160 basis points from 5% in Q1 2024 [12][13] - Free cash flow from continuing operations improved to $11.2 million compared to negative $6.5 million in the prior year, supported by better working capital management and reduced capital expenditures [14] Business Line Data and Key Metrics Changes - Global Seating segment revenues decreased by 9% to $73.4 million, with adjusted operating income of $2.7 million, a decrease of $100,000 compared to the prior year [16] - Global Electrical segment revenues decreased by 14% to $50.5 million, with adjusted operating income of $200,000, down $1.3 million from the prior year [17] - Trim Systems and Components revenues decreased by 17% to $45.9 million, with adjusted operating income of $1.6 million, a decrease of $3.1 million compared to the prior year [18] Market Data and Key Metrics Changes - The Class eight heavy truck build forecast for 2025 indicates a 23% decline in year-over-year volumes, with a projected 19% increase in truck builds anticipated in 2026 [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 higher interest rates and lower commodity prices [21] Company Strategy and Development Direction - The company has shifted to a new segment structure to enhance clarity and focus within each business unit, aiming to better align with customers and end markets [4][5] - Strategic actions taken in 2024 are expected to lower costs and improve operational efficiency, with a focus on reducing freight, labor, and overhead costs [9][10] - The company is actively pursuing new business opportunities while managing working capital and reducing capital expenditures by 50% in 2025 [22][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current macroeconomic challenges and emphasizes the importance of maintaining flexibility and agility in operations to respond to market changes [37][39] - The company expects to generate at least $20 million of free cash flow in 2025, which will be used to pay down debt, with a focus on reducing working capital [25] Other Important Information - The company has decided to discontinue reporting new business wins due to the current macroeconomic environment, believing that annual guidance is a better way to contextualize future results [7][8] - The net leverage ratio at the end of Q1 2025 was five times, with expectations to decline throughout 2025 and 2026 as the company works towards a targeted two times level [14][16] Q&A Session Summary Question: What is the potential for gross margin improvement in a normalized environment? - Management sees potential for gross margin to reach around 15% in a normalized environment, with a focus on self-help initiatives and market recovery [30][31] Question: How does the company view the current downturn in end markets? - Management acknowledges the extended downturn but believes they have adequate plans in place to manage costs and maintain EBITDA and cash flow [36][37] Question: What percentage of COGS is impacted by tariffs? - The largest exposure is related to tariffs from Mexico and Canada, with a smaller percentage from China, primarily affecting the global seating business [51][54] Question: How is the revenue profile for April compared to March? - Revenue for April is in line with expectations set in February and March, with no significant shifts noted [63] Question: What cost-saving measures remain to be implemented in 2025? - Continued focus on operational and material cost reductions, labor productivity, and supply chain optimization are key areas of focus for 2025 [69][70]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $169.8 million, down from $194.6 million in the prior year, primarily due to softening in global construction and agriculture end markets as well as North American Class eight truck demand [12] - Adjusted EBITDA for the first quarter was $5.8 million, compared to $9.7 million in the prior year, with adjusted EBITDA margins at 3.4%, down 160 basis points from 5% in Q1 2024 [12][13] - The company reported a net loss of $3.1 million or a loss of $0.09 per diluted share, compared to a net income of $1.4 million or $0.05 per diluted share in the prior year [13] - Free cash flow from continuing operations was $11.2 million, a significant improvement from negative $6.5 million in the prior year [14] Business Line Data and Key Metrics Changes - Global Seating segment revenues decreased by 9% to $73.4 million, with adjusted operating income of $2.7 million, a decrease of $0.1 million compared to the previous year [15] - Global Electrical segment revenues fell 14% to $50.5 million, with adjusted operating income of $200,000, down $1.3 million from the prior year [17] - Trim Systems and Components revenues decreased by 17% to $45.9 million, with adjusted operating income of $1.6 million, a decrease of $3.1 million compared to the prior year [19] Market Data and Key Metrics Changes - The Class eight heavy truck build forecast for 2025 indicates a 23% decline in year-over-year volumes, with a projected 19% increase in 2026 [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 higher interest rates and lower commodity prices [21] Company Strategy and Development Direction - The company has shifted to a new segment structure to enhance clarity and focus within each business unit, aiming to better align with customers and end markets [5] - Strategic actions taken in 2024 are expected to lower costs and improve operational efficiency, with a focus on reducing working capital and capital expenditures [22][23] - The company is actively pursuing new business opportunities while managing costs and improving cash generation [8][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic challenges and the impact on customer demand, emphasizing the importance of operational efficiency and cost management [7][20] - The company remains optimistic about long-term recovery in construction and agriculture markets despite current softness [21] - Management expects to generate at least $20 million of free cash flow in 2025, which will be used to pay down debt [26] Other Important Information - The company has decided to discontinue reporting new business wins due to the current macroeconomic environment and customer challenges in predicting future program ramps [7] - The company is focused on mitigating the impact of tariffs and broader macroeconomic headwinds through strategic portfolio actions and improved cash generation [22][23] Q&A Session Summary Question: What is the potential for gross margin improvement in a normalized environment? - Management indicated that they see potential for gross margins to reach around 15% in a normalized environment, with a focus on operational improvements [29][31] Question: How does the current market outlook compare to previous downturns? - Management acknowledged the current extended downturn but emphasized their preparedness and actions taken to stabilize operations and improve margins [36][38] Question: What percentage of COGS is impacted by tariffs? - Management noted that the largest exposure is related to tariffs from Mexico and Canada, with a smaller percentage from China, estimated to be less than 10% of the cost structure [48][49] Question: What are the covenant levels for the company's net leverage ratio? - The net leverage ratio is currently at five times, with covenant levels around four times, gradually stepping down throughout the year [54][55]

Financial Performance - Revenue decreased by 12.7% to $169.8 million in Q1 2025, compared to $194.6 million in Q1 2024 [6, 13] - Adjusted EBITDA decreased by $3.9 million to $5.8 million in Q1 2025, compared to $9.7 million in Q1 2024 [6, 13, 15] - Adjusted EPS decreased by $0.16 to ($0.08) per diluted share in Q1 2025 [6, 15] - Free cash flow improved by $17.7 million to $11.2 million in Q1 2025, compared to ($6.5) million in Q1 2024 [6, 13, 15] - Net debt reduced by $11.7 million compared to the end of 2024 [6] Segment Performance - Global Seating revenue declined by 9% to $73.4 million in Q1 2025, compared to $80.8 million in Q1 2024 [17, 21] - Global Electrical Systems revenue declined by 14% to $50.5 million in Q1 2025, compared to $58.7 million in Q1 2024 [23, 28] - Trim Systems and Components revenue decreased by 17% to $45.9 million in Q1 2025, compared to $55.1 million in Q1 2024 [30, 34] Market Outlook and Guidance - The company expects free cash flow of at least $20 million in 2025 [43, 44] - The company updated its full-year 2025 net sales outlook to $660-$690 million [43]

Group 1 - Commercial Vehicle Group (CVGI) reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and compared to earnings of $0.13 per share a year ago, representing an earnings surprise of 46.67% [1] - The company posted revenues of $169.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.85%, but down from year-ago revenues of $232.07 million [2] - The stock has lost approximately 63.3% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] Group 2 - The earnings outlook for Commercial Vehicle Group is mixed, with the current consensus EPS estimate for the coming quarter at -$0.05 on revenues of $168.22 million, and -$0.08 on revenues of $674.75 million for the current fiscal year [7] - The Zacks Industry Rank for Automotive - Original Equipment is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for the stock's performance [8]

Financial Performance - Consolidated revenues decreased by 12.8% to $169.8 million for the three months ended March 31, 2025, compared to $194.6 million in the same period of 2024[110]. - Gross profit fell by 23.2% to $17.8 million, with a gross profit margin of 10.5% in Q1 2025, down from 11.9% in Q1 2024[110][112]. - Net loss from continuing operations was $3.1 million for Q1 2025, compared to net income of $1.4 million in Q1 2024, reflecting a decrease of $4.6 million[110][116]. - The Global Seating Segment reported revenues of $73.4 million, a decrease of 9.1% from $80.8 million in Q1 2024, primarily due to decreased customer demand[117]. - The Global Electrical Systems Segment experienced a revenue decline of 14.1%, with revenues of $50.5 million compared to $58.7 million in the prior year[121]. - The Trim Systems and Components Segment saw revenues drop by 16.6% to $45.9 million, attributed to decreased customer demand[126]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by 12.2% to $16.4 million in Q1 2025, down from $18.7 million in Q1 2024[110][113]. - Net cash provided by operating activities was $15.2 million for Q1 2025, a significant improvement compared to net cash used of $2.4 million in Q1 2024[132]. - Net cash used in investing activities was $3.8 million, an increase from $1.9 million for the same period in 2024, primarily due to $3.2 million proceeds from the sale of the FinishTEK business in Q1 2024[133]. - Net cash used in financing activities for the three months ended March 31, 2025, was $18.1 million, compared to net cash provided of $14.2 million in the same period of 2024, mainly due to partial repayment of the revolving credit facility[134]. Capital and Future Outlook - Capital expenditures for 2025 are expected to be in the range of $10 million to $15 million[133]. - The company anticipates future growth in the wire harness, warehouse automation, and electric vehicle markets, along with plans to improve financial results and address customer needs[138]. - The company is focused on strategic plans that include organic growth and potential acquisitions to enhance market position[138]. Market and Risk Factors - The company is navigating external factors such as geopolitical dynamics and fluctuating foreign exchange rates, which may impact costs and pricing strategies[109]. - The company acknowledges that various economic and competitive factors could cause actual results to differ materially from forward-looking statements made[139]. - There have been no material changes in the company's exposure to market risk as of March 31, 2025, compared to disclosures in the 2024 Form 10-K[140]. - As of March 31, 2025, there have been no material changes to the company's critical accounting estimates from those disclosed in the 2024 Form 10-K[137].

Financial Performance - First quarter 2025 revenues were $169.8 million, a decrease of 12.7% compared to $194.6 million in the prior year[5] - Net loss from continuing operations was $3.1 million, or $(0.09) per diluted share, compared to net income of $1.4 million, or $0.05 per diluted share in the prior year[11] - Adjusted EBITDA for the first quarter was $5.8 million, down 40.2% from $9.7 million in the prior year, with an adjusted EBITDA margin of 3.4%[3] - Operating income for the first quarter was $1.4 million, down 68.9% from $4.5 million in the prior year[5] - The company reported a decrease in adjusted operating income to $2.1 million from $6.3 million in the prior year[5] - Revenues for the three months ended March 31, 2025, were $169.8 million, a decrease of 12.7% compared to $194.6 million for the same period in 2024[24] - Gross profit for the same period was $17.8 million, down 23.3% from $23.2 million year-over-year[24] - Adjusted gross profit was $18.3 million, representing 10.8% of revenues, down from 12.7% in the prior year[31] - The company reported an EBITDA of $5.1 million, which is 3.0% of revenues, down from 4.1% in the same quarter of 2024[31] Cash Flow and Outlook - Free cash flow improved to $11.2 million, an increase of $17.7 million due to better working capital management[3] - The company updated its full year 2025 outlook for net sales to a range of $660 million to $690 million, and adjusted EBITDA to a range of $22 million to $27 million[13] Market Trends and Projections - The North American Class 8 truck production levels are expected to be 255,000 units in 2025, down from 332,372 units in 2024[13] - Construction and Agriculture end markets are projected to decline approximately 5-15% in 2025, but new business wins in Electrical Systems are expected to soften this decline[14] Balance Sheet and Liabilities - Total assets decreased to $419.8 million as of March 31, 2025, from $424.6 million at the end of 2024[26] - Current liabilities increased to $138.6 million, up from $125.8 million at the end of the previous year[26] Historical Comparisons - Total revenues for the three months ended March 31, 2024, were $194,626 million, a decrease from $218,051 million in the same period of 2023, representing a decline of approximately 10.7%[35] - Gross profit for the three months ended June 30, 2024, was $20,568 million, down from $35,618 million in the same period of 2023, indicating a decrease of about 42.3%[35] - Adjusted operating income for the three months ended September 30, 2024, was a loss of $387 million, compared to an adjusted operating income of $12,489 million in the same period of 2023, reflecting a significant decline[36] - Operating income for the three months ended December 31, 2024, was a loss of $2,442 million, compared to a profit of $15,602 million in the same period of 2023, showing a substantial decrease[36] - The company incurred restructuring costs of $1,777 million for the three months ended March 31, 2024, compared to $90 million in the same period of 2023, indicating a significant increase in restructuring efforts[35] Expenses and Interest - Selling, general & administrative expenses for the three months ended June 30, 2024, were $16,680 million, up from $18,033 million in the same period of 2023, showing a slight decrease of about 7.5%[35] - Interest expense for the three months ended September 30, 2024, was $2,371 million, compared to $2,672 million in the same period of 2023, indicating a reduction of approximately 11.3%[36] - The company reported a loss before provision for income taxes of $6,395 million for the three months ended December 31, 2024, compared to a profit of $9,853 million in the same period of 2023, marking a significant downturn[36] Segment Performance - Revenues for the Global Seating segment for the three months ended March 31, 2024, were $80,797 million, down from $95,877 million in the same period of 2023, a decline of approximately 15.7%[35] - The company’s total cost of revenues for the three months ended June 30, 2024, was $173,097 million, compared to $185,182 million in the same period of 2023, reflecting a decrease of about 6.5%[35] Non-GAAP Measures - The company emphasizes the use of non-GAAP measures to provide supplemental metrics for assessing financial performance[40] - Non-GAAP financial measures are used internally for performance evaluation and may differ from similar measures used by other companies[42]

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 $169.8 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 $1.4 million from $4.5 million year-over-year, with adjusted operating income at $2.1 million compared to $6.3 million [5][10]. - The net loss from continuing operations was $3.1 million, or $(0.09) per diluted share, compared to a net income of $1.4 million, or $0.05 per diluted share, in the prior year [5][10]. - Adjusted EBITDA was $5.8 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 $11.2 million, an increase of $17.7 million, attributed to better working capital management [5][10]. - Net debt decreased by $11.7 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 $690 million, down from the previous outlook of $670 million to $710 million [14]. - Adjusted EBITDA is now expected to be between $22 million and $27 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].

Group 1 - Commercial Vehicle Group (CVG) will hold its quarterly conference call on May 7, 2025, at 8:30 a.m. ET to discuss first quarter 2025 financial results [1] - A press release and presentation will be issued prior to the conference call [1] - The conference call will be accessible via a toll-free number for participants and will also be webcasted on CVG's website [2] Group 2 - A telephonic replay of the conference call will be available until May 21, 2025, with specific access codes for toll-free and international callers [3] - CVG focuses on delivering solutions to complex design, engineering, and manufacturing problems while positively impacting customers and communities [4] - Additional information about CVG and its products can be found on the company's website [4]

Core Points - Robert C. Griffin will retire from the Board of Directors of Commercial Vehicle Group, Inc. effective May 15, 2025, and will not stand for re-election at the 2025 annual meeting of stockholders [1][2] - Griffin has been a Director since 2005 and is currently the Chairman of the Board; his retirement is not due to any disagreements with the Company or its management [2] - William C. Johnson is expected to succeed Griffin as Chairman of the Board following his retirement [2] - Michael Nauman, Chairman of the Nominating, Governance and Sustainability Committee, expressed gratitude for Griffin's contributions and leadership during his tenure [3] - Griffin stated it has been a privilege to serve the shareholders of CVG for 20 years and expressed his best wishes for the Company's future success [3]

Financial Performance - For the year ended December 31, 2024, the company recorded revenues of $723.4 million, a decrease of 13.4% compared to $835.5 million in 2023[248]. - The gross profit for 2024 was $73.1 million, down from $121.1 million in 2023, reflecting a gross margin of 10.1%[248]. - The company reported a net loss of $27.9 million for 2024, compared to a net income of $49.4 million in 2023[248]. - Operating income for 2024 was a loss of $0.8 million, a significant decline from an operating income of $39.9 million in 2023[248]. - The company recorded a loss from continuing operations of $35.7 million in 2024, compared to a profit of $43.6 million in 2023[248]. - Comprehensive loss for 2024 totaled $40,926 thousand, contrasting with a comprehensive income of $50,677 thousand in 2023[251]. - Net income for 2024 was a loss of $27,867 thousand, compared to a profit of $49,411 thousand in 2023, indicating a significant decline in profitability[259]. - The company reported a pre-tax loss of $8,241 million for 2024, a decrease from a pre-tax income of $28,430 million in 2023[331]. - Basic earnings per share from continuing operations for 2024 was $(1.07), a decline from $1.32 in 2023[375]. - The company reported a total other comprehensive loss of $(13.059) million for the year ended December 31, 2024, compared to a total other comprehensive income of $1.266 million for 2023[378]. Assets and Liabilities - Total assets decreased from $483,214 thousand in 2023 to $424,573 thousand in 2024, reflecting a reduction of approximately 12.1%[254]. - Current assets fell from $327,742 thousand in 2023 to $303,300 thousand in 2024, a decrease of about 7.4%[254]. - Cash reserves decreased from $37,848 thousand in 2023 to $26,630 thousand in 2024, representing a decline of approximately 29.5%[254]. - Total liabilities decreased from $310,282 thousand in 2023 to $288,981 thousand in 2024, a decline of approximately 6.9%[254]. - Stockholders' equity decreased from $172,932 thousand in 2023 to $135,592 thousand in 2024, reflecting a decrease of about 21.6%[254]. - The carrying amount of long-term debt obligations was $135,500 million in 2024, with a fair value of $134,863 million, compared to a carrying amount of $141,514 million and a fair value of $139,213 million in 2023[325]. Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of $33,452,000 in 2024, down from an inflow of $38,276,000 in 2023[259]. - The company reported a net cash inflow from investing activities of $30,896,000 in 2024, a turnaround from a cash outflow of $19,696,000 in 2023[259]. - The company had outstanding letters of credit of $1.1 million under the Revolving Credit Facility as of December 31, 2024[303]. - The company divested its cab structures business and Industrial Automation segment, which are classified as discontinued operations, impacting the overall financial results[264]. Debt and Interest - Interest expense for 2024 was $9.2 million, slightly lower than $10.2 million in 2023[248]. - The company had total long-term debt of $127.1 million as of December 31, 2024, compared to $126.2 million in 2023[295]. - The term loan facility was reduced to $85 million and the revolving credit facility commitments were decreased to $125 million as of December 19, 2024[301]. - The company recognized a loss on extinguishment of debt of $0.5 million due to the fourth amendment of the credit agreement[302]. - Cash payments for interest for the twelve months ended December 31, 2024, were $11.7 million, a decrease from $12.8 million in 2023[312]. Foreign Currency and Inflation - The company is exposed to foreign currency risks, with significant revenues derived from operations outside the U.S., affecting the translation of financial results into U.S. Dollars[230]. - Inflation impacts the company through increased material costs and labor, with limited ability to pass these costs onto customers due to competitive market conditions[233]. - The effect of currency exchange rate changes resulted in a cash outflow of $1,540,000 in 2024, contrasting with a cash inflow of $172,000 in 2023[259]. Restructuring and Operations - The company incurred a loss of $2,454 million on foreign exchange contracts designated as hedging instruments in 2024, contrasting with a gain of $5,339 million in 2023[323]. - The company incurred $10.8 million in restructuring expenses during the year ended December 31, 2024, primarily for workforce reductions ($8.4 million) and facility exit costs ($2.4 million)[381]. - The restructuring program approved during the quarter ended December 31, 2023, included workforce reductions and footprint optimization across segments[379]. Taxation - The provision for income taxes for 2024 was $27,493 million, compared to a benefit of $(15,203) million in 2023[331]. - The company recorded a valuation allowance of $26.6 million in 2024 primarily related to U.S. deferred tax assets due to a cumulative three-year loss position[333]. - The total net deferred tax asset was $10.76 million, a decrease from $33.29 million in 2023[332]. Segment Performance - The company has three reportable segments for 2024: Vehicle Solutions, Electrical Systems, and Aftermarket & Accessories, following the divestiture of the cab structure business[392]. - Revenue from Vehicle Solutions for the twelve months ended December 31, 2024, was $404.2 million, down from $470.3 million in 2023, representing a decline of 14.1%[294]. - The Vehicle Solutions segment generated revenues of $404,164 million in 2024, a decrease of 13.9% from $469,962 million in 2023[396]. - Revenues from the Industrial Automation segment were $16,468 million in 2024, down from $38,900 million in 2023[406].