Commercial Vehicle Group Inc
NASDAQ:CVGI
Commercial Vehicle Group Inc
Commercial Vehicle Group, Inc. engages in the manufacture, supply, and sale of cab related products and systems. The company is headquartered in New Albany, Ohio and currently employs 7,300 full-time employees. The company went IPO on 2004-08-05. The firm operates through four segments, Vehicle Solutions, Warehouse Automation, Electrical Systems and Aftermarket & Accessories. The Vehicle Solutions segment manufactures commercial vehicle seats, plastic components (trim) and cab structures. The Warehouse Automation segment manufactures warehouse automation subsystems, including control panels, electro-mechanical assemblies, cable assemblies, and power and communication solutions. The Electrical Systems segment manufactures cable and harness assemblies for both high and low voltage applications, control boxes, dashboard assemblies and design and engineering for these applications. The Aftermarket & Accessories segment manufactures seats and components; commercial vehicle accessories, including wipers, mirrors and sensors, and office seats.
Commercial Vehicle Group, Inc. engages in the manufacture, supply, and sale of cab related products and systems. The company is headquartered in New Albany, Ohio and currently employs 7,300 full-time employees. The company went IPO on 2004-08-05. The firm operates through four segments, Vehicle Solutions, Warehouse Automation, Electrical Systems and Aftermarket & Accessories. The Vehicle Solutions segment manufactures commercial vehicle seats, plastic components (trim) and cab structures. The Warehouse Automation segment manufactures warehouse automation subsystems, including control panels, electro-mechanical assemblies, cable assemblies, and power and communication solutions. The Electrical Systems segment manufactures cable and harness assemblies for both high and low voltage applications, control boxes, dashboard assemblies and design and engineering for these applications. The Aftermarket & Accessories segment manufactures seats and components; commercial vehicle accessories, including wipers, mirrors and sensors, and office seats.
Revenue Decline: Q3 revenue fell to $152.5 million, down from $171.8 million last year, mainly due to softer demand in North America.
Margin Expansion: Adjusted gross margin improved to 12.1%, up both sequentially and year-over-year, highlighting successful operational efficiency initiatives.
Guidance Lowered: Full-year 2025 revenue and adjusted EBITDA guidance were both lowered due to weaker demand and macroeconomic headwinds.
Free Cash Flow Focus: Company remains committed to generating at least $30 million in free cash flow for 2025, despite a negative Q3 free cash flow.
Cost Cutting Progress: Continued reductions in SG&A and manufacturing overhead, with a 15% reduction in SG&A run rate year-over-year.
New Program Ramps: Growth in the Global Electrical Systems segment driven by new business wins, with further ramp-up expected through 2026 and 2027.
Interest Expense Up: Interest expense increased to $4.1 million from $2.4 million last year due to higher rates after debt refinancing.
Proactive Tariff Mitigation: The company is making progress on tariff impact recovery through customer negotiations and supply chain adjustments.
