CVG Reports Third Quarter 2025 Results

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]