Commercial Vehicle Group (CVGI) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $154.8 million, down 5.2% year-over-year due to softer demand, especially in North America and in Global Seating and Trim Systems & Components.

• Adjusted EBITDA for Q4 was $2.3 million, up 156% year-over-year, driven by operational efficiencies and lower SG&A expenses.

• Net loss for Q4 was $6.4 million, a significant improvement from $35 million loss last year, which included a large non-cash tax allowance.

• Free cash flow for the year reached $34.0 million, up $21.5 million, enabling net debt reduction of $35.8 million.

• Net leverage improved to 4.1x from 4.7x at the end of 2024.

Financial highlights

• Q4 adjusted gross margin was 10.3%, up 190 basis points year-over-year.

• Q4 adjusted EBITDA margin was 1.5%, up from 0.6% in Q4 2024.

• Q4 adjusted operating loss was $0.9 million; GAAP net loss was $6.4 million.

• Q4 free cash flow was $8.7 million, up from $0.8 million last year.

• Interest expense increased to $4.2 million in Q4 2025 due to higher rates.

Outlook and guidance

• 2026 net sales guidance: $660–$700 million, with adjusted EBITDA of $24–$30 million and positive free cash flow.

• Net leverage projected to decline further, with continued debt reduction and net leverage target of 2x.

• Class 8 truck build forecast for 2026 is 260,000 units, up 4% year-over-year, with further growth in 2028.

• Construction market expected to grow in low single digits, aided by lower interest rates and fiscal stimulus.