Commercial Vehicle Group Reports 12.8% Revenue Decline and $4.3 Million Net Loss in Q1 2025

Commercial Vehicle Group, Inc. (CVG) reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $169.8 million, down 12.8% from $194.6 million in the same period of 2024. The decrease in revenue was primarily attributed to a 14.7% drop in original equipment manufacturer (OEM) and other sales, alongside a 3.7% decline in aftermarket and original equipment service (OES) sales. The company's gross profit also fell to $17.8 million, a 23.2% decrease from the previous year, reflecting lower sales volumes and increased costs associated with raw materials and labor.

In terms of profitability, CVG reported a net loss of $4.3 million for the quarter, compared to a net income of $2.9 million in the prior year. The loss from continuing operations was $3.1 million, a stark contrast to the $1.4 million profit recorded in the same quarter of 2024. The company’s selling, general, and administrative expenses decreased by 12.2% to $16.4 million, primarily due to reduced incentive compensation expenses. However, interest expenses rose to $2.5 million, up 14.5% from the previous year, reflecting the impact of higher debt levels.

Strategically, CVG underwent a significant reorganization in January 2025, consolidating its operations into three segments: Global Seating, Global Electrical Systems, and Trim Systems and Components. This restructuring aims to enhance alignment with customer needs and improve operational efficiency. The company also divested its cab structures and Industrial Automation segments in 2024, which it classified as discontinued operations, further streamlining its focus on core business areas.

Operationally, CVG's cash flow from operating activities improved significantly, generating $15.2 million in the first quarter of 2025, compared to a cash outflow of $2.4 million in the same period last year. The company ended the quarter with $20.2 million in cash and $102.5 million in available credit, indicating a solid liquidity position despite the operational challenges. However, the company remains cautious about external factors such as geopolitical dynamics and fluctuating foreign exchange rates, which could impact future performance.

Looking ahead, CVG anticipates continued challenges in customer demand across its segments, which may affect revenue growth. The company is focused on navigating these uncertainties while leveraging its restructured operations to capitalize on market opportunities. Management remains committed to maintaining compliance with financial covenants and ensuring adequate liquidity to support ongoing operations and strategic initiatives.