Commercial Vehicle Group 2025 Q3 Earnings Net Loss Widens 174.4% Amid Revenue Decline

Commercial Vehicle Group (CVGI) reported weaker-than-expected Q3 2025 results, with revenue falling 11.2% year-over-year and a net loss contrasting last year’s profit. The company cut full-year revenue and EBITDA guidance due to soft North American demand.

Revenue

Revenue declined to $152.49 million in Q3 2025, driven by reduced demand in North American markets. Global Seating led with $68.71 million in revenue, while Global Electrical Systems contributed $49.49 million, reflecting a rebound from prior-year declines. Trim Systems and Components generated $34.29 million, though both segments faced headwinds from lower Class 8 truck production and construction/agriculture demand.

Earnings/Net Income

The company swung to a loss of $0.21 per share in Q3 2025, a 175.0% deterioration from a $0.28 profit in Q3 2024. Net income turned negative at -$7.08 million, a 174.4% decline year-over-year, underscoring margin pressures and operational challenges.

Post-Earnings Price Action Review

The strategy of buying CVGI shares post-earnings and holding for 30 days underperformed significantly, with an annualized return of -22.3% over three years. Despite sequential gross margin improvements and SG&A reductions, the stock closed at $1.34 on November 10, 2025, its lowest point post-earnings, and continued downward trends. Q3 2023–2025 revenue consistently missed estimates, with 2025’s $152.5 million falling 3.1% short. This suggests persistent demand and profitability issues, cautioning investors against relying on earnings-driven buying signals.

CEO Commentary

CEO James Ray highlighted operational efficiency gains, including right-sized manufacturing costs and SG&A reductions, despite soft demand in Construction, Agriculture, and Class 8 truck markets. He noted margin expansion in Global Electrical Systems and proactive steps to stabilize Trim Systems’ profitability, emphasizing execution and positioning for recovery.

Guidance

CVGI revised full-year 2025 guidance downward, projecting net sales of $640–$650 million (vs. prior $650–$670 million) and adjusted EBITDA of $17–$19 million (vs. $21–$25 million). The outlook reflects lower North American Class 8 truck production and 5–15% declines in Construction and Agriculture markets.

Additional News

CVGI lowered 2025 guidance following Q3’s $152.5 million revenue miss, with analysts citing weak North American demand as the primary driver. The company announced plans to reduce working capital and prioritize debt paydown, targeting over $30 million in free cash flow. Meanwhile, the stock dropped 46% year-to-date amid industry underperformance. Management emphasized diversification into non-core markets, such as electrical systems, to offset sector volatility.