• Revenue: $171.8 million, down from $202.9 million in the prior year period.

• Adjusted EBITDA: $4.3 million, compared to $12.2 million in the prior year.

• Adjusted EBITDA Margin: 3.5%, down 350 basis points from 6% in the prior year.

• Net Loss: $0.9 million, or a loss of 3 per diluted share, compared to net income of $4.7 million or 14 per diluted share in the prior year.

• Adjusted Net Loss: $0.4 million, or a loss of 1 per diluted share, compared to adjusted net income of $4.7 million or 14 per diluted share in the prior year.

• Free Cash Flow: $17 million, compared to $11 million in the prior year.

• Electrical Systems Revenue: $43.4 million, a decrease of 19% from the prior year.

• Vehicle Solutions Revenue: $97.3 million, a decrease of 16% from the prior year.

• Aftermarket and Accessories Revenue: $31.1 million, a decrease of 8% from the prior year.

• Interest Expense: $2.4 million, compared to $2.5 million in the prior year.

• 2024 Revenue Guidance: Adjusted to $710 million to $740 million, down from $730 to $780 million.

• 2024 Adjusted EBITDA Guidance: Adjusted to $20 to $25 million, down from $28 to $36 million.

• Warning! GuruFocus has detected 5 Warning Signs with CVGI.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Commercial Vehicle Group Inc (NASDAQ:CVGI) has successfully streamlined its operations by selling non-core businesses, including Finish Tech, cap structures, and industrial automation, which is expected to improve focus and profitability.

• The company has reduced its debt by $13 million and received an additional $20 million from the sale of its cap structures business, enhancing its financial position.

• CVGI has secured approximately $95 million in new business wins year-to-date, indicating potential future growth across all segments.

• The company has implemented significant workforce reductions, eliminating around 1,200 roles, which is expected to create a more efficient and agile organization.

• New leadership appointments, including Peter Lugo for the electrical systems segment and Carlos Jimenez for global operations, are expected to drive growth and operational excellence.

Negative Points

• CVGI's third-quarter results were below internal expectations, with revenues and profitability impacted by operational inefficiencies and market softness.

• The company experienced a 15% decrease in revenue compared to the prior year, primarily due to lower sales in vehicle solutions and electrical systems segments.

• Adjusted EBITDA margins declined by 350 basis points to 3.5%, driven by lower volumes, inflationary impacts, and operational inefficiencies.

• The company has lowered its full-year 2024 revenue and adjusted EBITDA guidance due to ongoing demand pressures and operational challenges.

• CVGI continues to face challenges in its electrical systems segment, with a 19% revenue decline due to global softening in construction and agricultural markets.