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 weak demand in construction, agriculture, and Class 8 truck markets.

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

• Adjusted EBITDA was $5.8 million (3.4% margin), down from $9.7 million (5.0% margin) year-over-year.

• Free cash flow improved to $11.2 million, a $17.7 million increase over Q1 2024, enabling $11.7 million net debt reduction.

• Strategic reorganization into three segments and divestitures of non-core businesses streamlined operations and improved efficiency.

Financial highlights

• Revenue was $169.8 million, down from $194.6 million year-over-year.

• Adjusted EBITDA margin was 3.4%, down from 5.0% in Q1 2024.

• Adjusted net loss was $2.6 million ($0.08 per share) versus adjusted net income of $2.8 million ($0.08 per share) last year.

• Free cash flow improved to $11.2 million from -$6.5 million year-over-year.

• Gross margin for Q1 2025 was 10.5%, down from 11.9% in Q1 2024, but up sequentially from Q4 2024.

Outlook and guidance

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

• Free cash flow expected to exceed $20 million for 2025, to be used for debt reduction.

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

• Guidance reflects ongoing demand weakness, tariff impacts, and potential regulatory changes.

• North America Class 8 truck builds forecasted to decline to 255,000 units in 2025; construction and agriculture markets projected to contract 5–15%.