Commercial Vehicle(US:CVGI)2025-11-10 22:24Financial 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].