Commercial Vehicle Group Reports 13.4% Revenue Decline and Net Loss for Fiscal Year 2024

Commercial Vehicle Group, Inc. (CVG) reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenues of $723.4 million, a decrease of 13.4% from $835.5 million in 2023. The company experienced a net loss from continuing operations of $35.7 million, compared to a net income of $43.6 million in the previous year. This downturn was attributed to a softening in customer demand across all segments and the wind-down of certain programs in the Vehicle Solutions segment. Gross profit also fell sharply to $73.1 million, down 39.6% from $121.1 million in 2023, resulting in a gross profit margin of 10.1%, compared to 14.5% the previous year.

In 2024, CVG undertook strategic divestitures, selling its cab structures business and the First Source Electronics (FSE) business, which were classified as discontinued operations. The sale of the cab structures business generated approximately $40 million, with a reported after-tax gain of $28.8 million. The divestiture of the FSE business is expected to yield an estimated after-tax loss of $7.9 million. These moves are part of CVG's strategy to reduce exposure to the cyclical Class 8 market and lower customer concentration, aiming to streamline operations and improve financial performance.

Operationally, CVG's workforce consisted of approximately 6,900 employees as of December 31, 2024, with 83% located outside the United States. The company reported a significant restructuring program that incurred $10.8 million in expenses, primarily related to headcount reductions and facility exit costs. The restructuring is aimed at aligning the company's cost structure to support margin expansion. Additionally, CVG's liquidity position remained stable, with $111 million available, including $26.6 million in cash and $84.4 million from credit facilities.

Looking ahead, CVG's management expressed a commitment to enhancing its Electrical Systems segment, which is expected to become the largest business unit. The company plans to focus on organic growth, strengthen its product portfolio, and explore mergers and acquisitions to diversify revenue streams and reduce cyclicality. However, the outlook remains cautious due to anticipated declines in North American Class 8 and Class 5-7 truck production in 2025, as reported by ACT Research, which could further impact CVG's financial performance in the near term.