Commercial Vehicle Group 2025 Q3 Earnings Net Loss Surges 174% Amid Revenue Decline

Commercial Vehicle Group (CVGI) reported third-quarter 2025 earnings that fell short of expectations, with revenue declining 11.2% year-over-year and a net loss widening significantly. The company revised its full-year guidance downward, reflecting weaker demand in key markets.

Revenue

The company’s total revenue dropped to $152.49 million in Q3 2025, a 11.2% decline from $171.77 million in Q3 2024. This contraction was driven by reduced demand in North American markets, particularly in the Global Seating and Trim Systems segments. The Global Seating segment generated $68.71 million, while the Global Electrical Systems segment reported $49.49 million. Trim Systems and Components contributed $34.29 million, reflecting ongoing challenges in the construction and agriculture sectors.

Earnings/Net Income

Commercial Vehicle Group swung to a loss of $0.21 per share in Q3 2025, compared to a profit of $0.28 per share in Q3 2024—a 175.0% negative change. The company reported a net loss of $7.08 million, a 174.4% deterioration from a net income of $9.51 million a year ago. This marks a significant turnaround in profitability. The results underscore the company’s struggle to offset declining revenue with cost controls.

Post-Earnings Price Action Review

The strategy of buying CVGI shares following earnings announcements and holding for 30 days has underperformed over the past three years, with an APY loss of 26.84%. This suggests the market has not rewarded CVGI’s earnings surprises, potentially due to short-term holding periods or negative sentiment around its fundamentals.

CEO Commentary

James Ray, CEO, emphasized operational efficiency gains, including right-sizing manufacturing and reducing SG&A expenses, which drove sequential margin expansion. He highlighted resilience in the Global Electrical Systems segment, which returned to year-over-year growth, and noted cautious optimism about positioning CVGI for recovery in end markets.

Guidance

CVGI revised its full-year 2025 guidance downward, now projecting net sales of $640–$650 million (previously $650–$670 million) and adjusted EBITDA of $17–$19 million (prior: $21–$25 million). The update reflects 28% lower North American Class 8 truck production and 5–15% declines in construction and agriculture markets. The company anticipates continued debt paydown and working capital reductions in Q4.

Additional News

1. Analyst Optimism: Despite a $7.08 million net loss, analysts maintain a “strong buy” consensus, with a median price target of $4.00, 66.5% above the recent $1.34 closing price.

2. Free Cash Flow Focus: CVGI reaffirmed its target of generating over $30 million in free cash flow for 2025, signaling confidence in liquidity despite weak demand.

3. Margin Resilience: The company’s adjusted gross margin expanded to 12.1% in Q3, driven by cost discipline and operational efficiency, offering a silver lining amid revenue declines.

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