CVG reported third quarter sales of $152 million, with an EPS of $(0.20) and Adjusted EBITDA of $4.6 million. Global Electrical Solutions segment saw growth, and the company updated its full year 2025 guidance. Revenues decreased by 11.2% due to softening North American demand, but adjusted operating income increased to $1.6 million. Net loss was $6.8 million, or $(0.20) per diluted share. Adjusted EBITDA margin improved to 3.0%.

In the face of lower demand in key markets, CVG showed resilience in third quarter results. Operational efficiency improvements and cost reductions led to increased adjusted gross margins. Global Electrical Systems segment returned to year-over-year growth, driven by new business wins. Efforts to mitigate tariff impacts and improve profitability are ongoing.

CVG’s CFO, Andy Cheung, highlighted margin performance against challenging conditions. The company expects to drive at least $30 million in free cash flow for the full fiscal year. Lower demand led to an inventory increase, but efforts are focused on cash generation and debt paydown. CVG remains committed to further cost reductions and operational efficiency improvements.

Looking ahead, CVG updated its full year 2025 outlook. Net sales are expected to be between $640-$650 million, with adjusted EBITDA projected at $17-$19 million. The company is closely monitoring industry forecasts for North American Class 8 truck production, with a focus on new business wins to offset declines in Construction and Agriculture markets.

CVG uses non-GAAP financial measures to evaluate performance and assist investors in assessing the impact of certain items on financial results. These measures are intended to provide a clearer picture of the company’s financial and operational performance, but should not be considered a substitute for GAAP measures. Investors are encouraged to carefully evaluate both sets of financial data provided by the company.

Read more at GlobeNewswire: CVG Reports Third Quarter 2025 Results