Commercial Vehicle Group (CVGI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 12.7–12.8% year-over-year to $169.8 million, driven by weaker demand in construction, agriculture, and North America Class 8 truck markets.

• Net loss from continuing operations was $3.1 million ($(0.09) per share), compared to net income of $1.4 million ($0.05 per share) in Q1 2024.

• Adjusted EBITDA was $5.8 million (3.4% margin), down from $9.7 million (5.0% margin) in Q1 2024.

• Free cash flow improved to $11.2 million, a $17.7–$18 million increase year-over-year, driven by working capital and capex reductions.

• Completed strategic reorganization into three segments and divested non-core businesses, streamlining operations and improving efficiency.

Financial highlights

• Gross margin for Q1 2025 was 10.5–10.8%, up 240–250 bps sequentially from Q4 2024, but down from 11.9–12.7% year-over-year.

• Adjusted operating income was $2.1 million; GAAP operating income was $1.4 million.

• Adjusted net loss was $2.6 million ($(0.08) per share), versus adjusted net income of $2.8 million ($0.08 per share) in Q1 2024.

• Interest expense increased to $2.5 million from $2.2 million year-over-year.

• Net debt reduced by $11.7 million and gross debt by $18.1 million in Q1.

Outlook and guidance

• 2025 revenue guidance lowered to $660–$690 million (from $670–$710 million); adjusted EBITDA guidance reduced to $22–$27 million (from $25–$30 million).

• Free cash flow expected to be at least $20 million in 2025, with proceeds used to pay down debt.

• Net leverage expected to decline through 2025 and 2026, targeting a 2x level.

• Guidance reflects continued market softness, tariff impacts, and potential EPA emission standard delays.

• Capital expenditures for 2025 projected at $10–$15 million, with a 50% reduction in planned capex.