CVG Reports Second Quarter 2025 Results

Financial Performance - Second quarter 2025 revenues were $172 million, a decrease of 11.2% compared to $193.7 million in the prior year, primarily due to softening global demand [3][4][8] - Operating income for the second quarter was $0.8 million, down from $1.1 million in the prior year, with adjusted operating income decreasing to $1.9 million from $4.8 million [4][8] - Net loss from continuing operations was $4.1 million, or $(0.12) per diluted share, compared to a net loss of $1.3 million, or $(0.04) per diluted share, in the prior year [4][8][19] - Adjusted EBITDA was $5.2 million, down 36.6% from $8.2 million, with an adjusted EBITDA margin of 3.0%, down from 4.2% [4][5][8] Cash Flow and Debt Management - The company generated strong free cash flow of $17.3 million, an increase of $16.5 million due to improved working capital management [4][6] - Net debt decreased by $31.8 million compared to the year-end 2024 level, indicating effective debt management [4][6] Segment Performance - The Global Electrical Systems segment showed improved performance driven by new business wins outside of the Construction and Agriculture end markets, despite lower demand in those markets [2][11] - The Global Seating segment reported revenues of $74.5 million, down 9.6% year-over-year, while the Trim Systems and Components segment remained flat at $53.6 million [9][24] - The company is focusing on operational efficiency and margin improvement across all segments [2][4] Guidance and Outlook - The company updated its full-year 2025 outlook, lowering net sales expectations to $650-670 million from a prior range of $660-690 million [7][10] - The Construction and Agriculture end markets are projected to decline by approximately 5-15% in 2025, but new business contributions in Electrical Systems are expected to mitigate this decline [11][10]