Commercial Vehicle Group (CVGI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 1.0% year-over-year to $171.5 million, led by strong growth in Global Electrical Systems and a return to growth in Global Seating.

• Net income from continuing operations was $0.9 million ($0.03/share), reversing a net loss of $3.1 million in Q1 2025, aided by operational improvements and a gain from a sale-leaseback transaction.

• Adjusted EBITDA was $4.8 million (2.8% margin), down from $5.8 million (3.4%) due to higher SG&A expenses.

• Sale-leaseback of Vonore, TN facility generated $16 million in gross proceeds, with $14.6 million used to prepay term loan debt, reducing leverage.

• Total debt reduced by $12.8 million, lowering net leverage to 3.8x from 4.1x at 2025 year-end.

Financial highlights

• Q1 2026 revenue was $171.5 million, up from $169.8 million year-over-year, with gross profit of $19.8 million and adjusted gross margin at 12.2%.

• Adjusted EBITDA margin was 2.8%, down from 3.4% in Q1 2025.

• Net income was $0.9 million; adjusted net loss was $3.4 million.

• Free cash flow from continuing operations was $11.7 million, up from $11.2 million year-over-year.

• Interest expense increased to $4.1 million from $2.5 million year-over-year due to refinancing.

Outlook and guidance

• Full-year 2026 net sales expected between $660 million and $700 million, nearly 5% growth at midpoint over 2025.

• Adjusted EBITDA guidance of $24 million to $30 million, ~50% growth at midpoint over 2025.

• Positive free cash flow projected for 2026, with capital expenditures at the lower end of 2–3% of revenue.

• Net leverage expected to decline further through FY26, with a target of 2x.

• Global Electrical Systems segment sales expected to increase over 10% in 2026.