Commercial Vehicle Group Reports 11.2% Revenue Decline and Net Loss in Q2 2025

Commercial Vehicle Group, Inc. (CVG) reported a decline in financial performance for the second quarter of 2025, with revenues of $171.96 million, down 11.2% from $193.67 million in the same period last year. The company experienced a net loss of $4.76 million, compared to a loss of $1.6 million in the prior year. For the first half of 2025, revenues totaled $341.75 million, a decrease of 12% from $388.29 million in the first half of 2024. The gross profit also fell to $37.32 million from $43.62 million, reflecting a gross profit margin of 10.9% for the six months ended June 30, 2025.

The decline in revenue was attributed to a softening in customer demand across the Global Seating and Trim Systems & Components segments, with OEM and other sales decreasing by $20.8 million, or 12.9%. The company’s cost of revenues decreased by $40.2 million, primarily due to lower raw material and labor costs. Selling, general and administrative expenses also decreased by 7.7% to $35.12 million for the first half of 2025, reflecting cost-cutting measures and a reduction in incentive compensation expenses.

In terms of strategic developments, CVG completed a significant reorganization of its operations into three segments: Global Seating, Global Electrical Systems, and Trim Systems and Components, effective January 1, 2025. This restructuring aims to enhance alignment with customer needs and improve operational efficiency. Additionally, on June 27, 2025, the company secured $210 million in senior secured credit facilities, which included a $95 million term loan and a $115 million asset-based revolving credit facility, both maturing in June 2030.

Operationally, CVG reported a decrease in customer engagement, with the Global Seating segment generating $74.46 million in revenue, down 9.6% year-over-year. The Global Electrical Systems segment remained relatively stable, with revenues of $53.59 million, while the Trim Systems and Components segment saw a significant decline of 23.8%, generating $43.91 million. The company’s employee headcount remained stable, with 33.88 million shares outstanding as of June 30, 2025.

Looking ahead, CVG anticipates continued challenges due to external factors such as geopolitical dynamics and fluctuating foreign exchange rates. The company is prepared to adapt to these conditions and expects to maintain compliance with its financial covenants. Despite the current downturn, CVG remains focused on strategic growth opportunities and improving its financial performance in the coming quarters.