Commercial Vehicle Group (CVGI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 13.5% year-over-year to $195.2 million, with all three segments contributing and reflecting successful diversification beyond cyclical North American Class 8 truck exposure.

• Gross margin expanded by up to 140 basis points year-over-year, driven by operational efficiency and higher volumes.

• Adjusted EBITDA was $5.4 million, but margin declined to 2.8% from 3.0% due to higher SG&A and FX headwinds.

• Net loss from continuing operations widened to $8.7 million ($0.25/share), impacted by higher SG&A, warrant expense, and interest costs.

• Raised full-year 2026 revenue and adjusted EBITDA guidance based on strong first-half performance and new business wins.

Financial highlights

• Q2 2026 revenue was $195.2 million (+13.5% YoY); gross profit rose 26.6% to $24.7 million, with adjusted gross margin improving to 12.9%.

• Adjusted EBITDA was $5.4 million (margin 2.8%), compared to $5.2 million (margin 3%) in Q2 2025.

• Net loss from continuing operations was $8.7 million ($0.25/share); adjusted net loss was $4.6 million ($0.13/share).

• Free cash flow from continuing operations was an outflow of $1.4 million, versus an inflow of $17.3 million in Q2 2025, reflecting higher working capital needs.

• Total debt decreased by $14.6 million versus year-end 2025; net leverage ratio improved to 3.3x from 4.1x.

Outlook and guidance

• Raised 2026 revenue guidance to $725–$755 million, and adjusted EBITDA guidance to $26–$31 million, reflecting strong new business ramps and international growth.

• Positive free cash flow expected for 2026, supported by equity ATM proceeds and disciplined capital expenditures.

• North American Class 8 truck production forecasted to increase 9% in 2026 and 2027, with 13% growth in 2028.

• Construction market expected to grow mid-single digits in 2026.

• Net leverage targeted at approximately 2x long-term.