CVGI

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the heavy transportation equipment stocks, including Commercial Vehicle Group (NASDAQ:CVGI) and its peers. Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings. The 12 heavy transportation equipment stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 8.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.2% since the latest earnings results. Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses. Commercial Vehicle Group reported revenues of $195.2 million, up 13.5% year on year. This print exceeded analysts’ expectations by 13.8%. Overall, it was a strong quarter for the company with full-year EBITDA and full-year revenue guidance exceeding analysts’ expectations. Commercial Vehicle Group scored the biggest analyst estimate beat and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 31.2% since reporting and currently trades at $3.16. Is now the time to buy Commercial Vehicle Group? Access our full analysis of the earnings results here, it’s free. With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods. Wabash reported revenues of $417.2 million, down 9.1% year on year, outperforming analysts’ expectations by 3.6%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.6% since reporting. It currently trades at $12.16. Is now the time to buy Wabash? Access our full analysis of the earnings results here, it’s free. Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services. Greenbrier reported revenues of $576.5 million, down 31.6% year on year, falling short of analysts’ expectations by 5.9%. It was a disappointing quarter as it posted full-year revenue and EPS guidance missing analysts’ expectations significantly. Greenbrier delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. As expected, the stock is down 5% since the results and currently trades at $45.50. Read our full analysis of Greenbrier’s results here. With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems. Cummins reported revenues of $9.46 billion, up 9.4% year on year. This number beat analysts’ expectations by 1.6%. Zooming out, it was a slower quarter as it recorded a significant miss of analysts’ EPS and EBITDA estimates. The stock is down 6.1% since reporting and currently trades at $609.33. Read our full, actionable report on Cummins here, it’s free. Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators. Allison Transmission reported revenues of $1.57 billion, up 92.4% year on year. This print surpassed analysts’ expectations by 3.1%. It was a very strong quarter as it also logged full-year revenue guidance beating analysts’ expectations and full-year EBITDA guidance slightly topping analysts’ expectations. Allison Transmission scored the fastest revenue growth in the group. The stock is up 7.3% since reporting and currently trades at $124.81. Read our full, actionable report on Allison Transmission here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. 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Commercial Vehicle Group’s second quarter saw robust revenue growth across all three business segments, with management crediting the ramp-up of new business wins and increased demand in international markets for this performance. Despite an improved top line, higher operating expenses—particularly in selling, general, and administrative costs—kept profitability constrained. CEO James Ray noted, “Our ongoing efforts to reduce end market concentration in cyclical North American Class 8 truck exposure through geographic and end market diversification are showing results.” The market reacted negatively to the results, with concerns stemming from margin pressures and lower-than-expected adjusted earnings. Is now the time to buy CVGI? Find out in our full research report (it’s free). Revenue: $195.2 million vs analyst estimates of $171.6 million (13.5% year-on-year growth, 13.8% beat) Adjusted EPS: -$0.13 vs analyst estimates of -$0.05 (significant miss) Adjusted EBITDA: $5.4 million vs analyst estimates of $6.26 million (2.8% margin, 13.7% miss) The company lifted its revenue guidance for the full year to $740 million at the midpoint from $680 million, a 8.8% increase EBITDA guidance for the full year is $28.5 million at the midpoint, above analyst estimates of $26.2 million Operating Margin: 1.2%, in line with the same quarter last year Market Capitalization: $137.9 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. John Franzreb (Sidoti & Co.) asked which segments drove the upward revenue guidance revision. CEO James Ray responded that all three segments contributed, with Trim Systems and Components showing the largest percent increase, but Global Seating and Electrical also seeing material gains. John Franzreb (Sidoti & Co.) questioned why higher revenue did not translate to more EBITDA growth. Interim CFO Angela O’Leary explained that increased SG&A, especially incentive compensation, and market volatility led to more modest EBITDA gains despite top-line momentum. John Franzreb (Sidoti & Co.) sought clarification on which operational levers would have the most immediate gross margin impact. Ray pointed to operating leverage, product mix, and pricing flexibility—particularly in aftermarket and new business—as key near-term drivers. Joseph Gomes (NOBLE Capital) asked for details on what drove the significant upward revision in full-year guidance despite unchanged Class 8 market forecasts. Ray highlighted non-Class 8 growth, new business wins, and improved international performance as key factors. Gary Prestopino (Barrington Research) probed whether SG&A would rise further due to new business launches. Ray stated that no significant SG&A headcount increases are planned; O’Leary detailed that incentive costs tied to stock and performance are the primary drivers of SG&A increases. In the coming quarters, the StockStory team will monitor (1) the pace and profitability of new business ramps, especially in the Electrical Systems and Zoox programs; (2) the company’s ability to maintain gross margin gains while controlling SG&A and incentive expenses; and (3) ongoing progress in deleveraging through cash flow and asset sales. Sustained improvement in core end markets and execution on cost management will be critical milestones. Commercial Vehicle Group currently trades at $3.70, down from $4.59 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:30 a.m. ET President and Chief Executive Officer - James Ray Interim Chief Financial Officer - Angie O’Leary Vice President of Investor Relations - Michelle Hards Operator: Good morning, ladies and gentlemen, and welcome to CVG's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Michelle Hards, Vice President of Investor Relations. Please go ahead. Michelle Hards: Thank you, operator, and welcome, everyone, to our second quarter 2026 conference call. Joining me on the call today are James Ray, President and CEO; and Angie O'Leary, Interim Chief Financial Officer. This morning, we will provide a brief company update as well as commentary regarding our second quarter 2026 results, after which we will open the call for questions. As a reminder, this conference call is being webcast and Q2 2026 earnings call presentation, which we will refer to during this call, is available on our website. Both may contain forward-looking statements, including, but not limited to, expectations for future periods regarding market trends, cost savings initiatives and new product initiatives, among others. Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include, but are not limited to, economic conditions in the markets in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity, risks associated with conducting business in foreign countries and currencies and other risks as detailed in our SEC filings. I will now turn the call over to James to provide some highlights from our second quarter performance. James Ray: Thank you, Michelle. Good morning, and thanks to all those who joined the call. Please turn your attention to the supplemental earnings presentation, starting on Slide 3. As we have highlighted on this slide, CVG delivered year-over-year revenue growth across all 3 segments. This reflects our ongoing efforts to reduce our end market concentration in cyclical North American Class 8 truck exposure through geographic and end market diversification. While there are still macroeconomic uncertainties to monitor, CVG is hitting its stride as our new business wins are ramping coincidentally with a recovery in our key end markets. During the quarter, we delivered an adjusted gross margin of 12.9%, up 90 basis points compared to last year and 70 basis points sequentially from the first quarter of 2026. The continued year-over-year and sequential improvement in profitability was again driven by our focus on improvements in operational efficiency and the operating leverage we are seeing from improved volumes. We have recently highlighted the growth in our Electrical Systems segment, and that accelerated again with a 15.8% growth in segment revenues in the quarter. This growth has been driven by the ramp of previously mentioned programs across North American and international markets, particularly Zoox in North America and the ramp of our key wins in the EMEA region. This growth is going a long way to increase capacity utilization at our Aldama, Mexico, and Tangier, Morocco facilities. While we are adding labor to handle the additional volumes, we continue to see margin expansion in this segment. Another highlight in the last quarter was the continued debt and leverage reduction we delivered. Angie will give you more details shortly, but the at-the-market equity program we announced and executed a portion of during the quarter is not only accretive but provides us additional capacity to continue to invest for growth opportunities going forward. The at-the-market transaction, combined with the sale-leaseback transaction on our Vonore facility provided us with cash that we used to pay down total debt by $14.6 million since the end of 2025, facilitating a net leverage ratio reduction from 4.1x at the end of 2025 to 3.3x at the end of the second quarter. Our goal remains to bring leverage back down to the 2x level over time. As we look ahead, we will continue to monitor potential macroeconomic uncertainty, but we are encouraged by the growth we are seeing across all 3 segments as we head into expected end market improvement. Class 8 truck production is projected to accelerate throughout the year, and we are also benefiting from the ramp-up of new business across our 3 segments. We are focused on disciplined execution, driving operational efficiency and positioning CVG to drive further shareholder value going forward. Turning to Slide 4. I will provide more detail on the ramp of the Zoox program. As I'm sure you've seen, Zoox made a major announcement in June. They have locked in the design and are moving to commercial scale production. As a result, they are preparing for large-scale manufacturing at their Hayward, California facility, which will shift them from the trial and testing phase into fleet deployment. Zoox also recently announced they have received NHTSA approval to begin charging for their robotaxi services and will be rolling that out in Las Vegas in August. As a result of the expected Zoox momentum, we began adding staffing in Q2 and continue to add into Q3 at Aldama to support the production ramp and we'll be investing in planned incremental capital to support the ramp also. As Zoox and other programs continue to ramp up, we are seeing further utilization increases at our production facilities in Aldama and Tangier, helping fuel gross margin expansion. These state-of-the-art low-cost facilities position us to support continued new business win ramps and drive further margin improvement throughout 2026 and beyond for the Global Electrical Systems segment. With that, I would like to turn the call over to Angie for a more detailed review of our financial results. Angela O’Leary: Thank you, James, and good morning, everyone. If you're following along in the presentation, please turn to Slide 5. Consolidated second quarter 2026 revenue was $195.2 million compared to $172 million in the prior year period. The increase in revenues was primarily due to the increased customer demand in international markets and the ramp of previously awarded new business wins across all 3 of our segments. After challenges we experienced in the second half of 2024 and throughout 2025, we're encouraged that now we are seeing much better top line performance. And as you'll see from the guidance James will share in a few minutes, we expect that trend to continue. Adjusted EBITDA was $5.4 million for the second quarter compared to $5.2 million in the prior year period. Adjusted EBITDA margin was 2.8%, down 20 basis points compared to adjusted EBITDA margin of 3% in the second quarter of 2025 as higher SG&A expenses and foreign exchange headwinds more than offset improved gross margins. SG&A expense increased year-over-year, primarily reflecting higher incentive compensation. Our long-term performance awards are tied to stock price performance, which has been favorable, while our annual incentive plans are benefiting from improved financial performance compared with the prior year. To help offset these increases, we continue to tightly manage discretionary SG&A spending. Interest expense was $2.9 million compared to $2.3 million in the second quarter of 2025, driven by higher interest rates resulting from our refinancing completed in the second quarter of 2025. Net loss from continuing operations in the quarter was $8.7 million or $0.25 per diluted share compared to a net loss of $4.1 million or $0.12 per diluted share in the prior year period. GAAP net loss for the quarter included a $3.4 million pretax warrant liability revaluation expense. Adjusted net loss for the quarter was $4.6 million or a loss of $0.13 per diluted share compared to adjusted net loss of $2.9 million or a loss of $0.09 per diluted share in the prior year period. Adjusted net loss was impacted by higher sales and improved gross margin performance, offset by higher SG&A and interest expense. Free cash flow from continuing operations for the quarter was an outflow of $1.4 million compared to an inflow of $17.3 million in the prior year period, reflecting higher working capital investment to support the growth in revenues. While we are encouraged by the strong top line inflection we're seeing, that also requires additional direct and indirect labor as well as capital spending for new business launches to support the revenue growth. We remain committed to driving operating leverage and free cash flow generation, but I believe it's worth noting the growth requirements of the business as the end markets recover. At the end of the second quarter, our net leverage ratio was 3.3x, down from 4.1x at the end of 2025. We calculate net leverage as net debt divided by trailing 12-month adjusted EBITDA from continuing operations, and the improvement demonstrates meaningful progress toward our long-term target of approximately 2x. Turning to Slide 6. I want to highlight the year-over-year and sequential adjusted gross margin improvement we saw in the second quarter. Our actions to remove costs, mitigate transitory impacts from macroeconomic and geopolitical developments and position the business for the end market recovery now emerging across our segments are beginning to show results. These efforts have enabled us to support higher production volumes while also improving margins. Sequentially, we have expanded margins the last 2 quarters, resulting in adjusted gross margin of 12.9% this quarter, up 90 basis points year-over-year and 70 basis points sequentially. As volumes continue to recover, we remain focused on driving additional operating leverage through disciplined execution and operational improvement. Turning to Slide 7. I'd like to highlight our continued progress on our deleveraging efforts. As previously mentioned, at the end of the second quarter of 2026, net debt to adjusted EBITDA was 3.3x, down from 4.1x at the end of 2025. This improvement was supported by both the sale-leaseback transaction announced in Q1 and the recently announced at-the-market equity program. During the quarter, we generated $11.6 million in net proceeds from the ATM program. Combined with our sale-leaseback proceeds, these actions enabled $14.6 million of total debt paydown since the end of 2025 and demonstrate our commitment to cash generation and deleveraging. They also provide improved balance sheet flexibility to support future growth and shareholder value. This is important because our June 2025 refinancing increased our average interest rate notably compared with our prior term loan. Our ability to pay down $26.2 million of the term loan year-to-date is accretive through reduced interest expense. Because the ATM proceeds were received at the end of the quarter, the related term loan paydown will further reduce interest expense going forward. Moving to the segment results, starting on Slide 8. Our Global Seating segment achieved revenues of $80 million, an increase of 7.5% compared to the prior year period, with the increase primarily driven by increased customer demand in international markets, again showing the benefits of our geographical diversification. Adjusted operating income was $4 million, an increase of $0.9 million compared to the second quarter of 2025 as we delivered expanded margins on higher sales volumes in the quarter. We also saw benefits from our recent footprint consolidation efforts in the Asia Pacific region. Turning to Slide 9. Our Global Electrical Systems segment second quarter revenues were $62 million, an increase of 15.8% compared to the prior year period, primarily due to the ramp of previously awarded new business wins in North America and internationally. Adjusted operating income for the second quarter was $1.7 million, an increase of $0.5 million compared to the prior year period, primarily attributable to volume and product mix. As production continues to ramp in 2026, boosted by the Zoox robotaxi program and the ramp of additional wins across the globe, we remain well positioned to accelerate overall segment revenue growth in the second half of 2026. Moving to Slide 10. Our Trim Systems and Components revenues in the second quarter increased 21.1% to $53.2 million compared to the prior year period due to higher sales volumes from increasing customer demand in North America. As we've mentioned previously, this segment solely serves the North American market and is the most directly impacted by Class 8 production volumes, which were down 6% year-over-year in the second quarter based on ACT data. Despite that decline, we delivered strong year-over-year top line growth driven by an improved product mix. Adjusted operating profit for the second quarter was $2.2 million compared to $0.3 million in the prior year period. The increase is primarily attributable to improved volume leverage. Taken collectively, we've delivered strong revenue growth and gross margin expansion in the quarter. We are ramping new business wins and beginning to see end market improvement. While we are investing to support growth and working capital in the near-term, we are encouraged by the opportunities we see ahead for CVG. That concludes my financial overview commentary. I will now turn the call back over to James to cover our end market outlook, key strategic actions and a review of our 2026 guidance. James Ray: Thank you, Angie. I will start with our key end market outlook on Slide 11. According to ACT's Class 8 heavy truck build forecast, 2026 estimates continue to imply a 9% increase in year-over-year volumes. The big change since last quarter is that ACT is now forecasting another 9% increase in 2027 versus a prior expectation of a 2% decline. They currently expect strong growth of 13% in 2028. Similar to prior quarters, we are showing you a more granular look into the quarterly ACT data and outlook. Q2 2026 production came in as currently estimated at 68,000 with expectations for a further uptick in Q3 and Q4. Moving to our construction market outlook. Based on recent commentary and outlooks from our customers, we expect the construction market to be up in the mid-single-digit percentage range, primarily driven by stronger industrial production and fiscal stimulus initiatives for 2026. And finally, we are including a new geographical revenue breakdown chart this quarter. This chart highlights the success we've had in balancing our exposure to cyclical North American Class 8 truck market and capturing growth opportunities globally through customer diversification and new business wins. We are excited about the increased volumes in the Class 8 truck market and look forward to supporting our Class 8 customers as they grow their business. Turning to Slide 12. I will share a few thoughts on our updated outlook for 2026. As always, our guidance ranges are based on current macroeconomic trends, forecasted Class 8 truck build rates, demand levels in construction markets and the ramp of new business. Based on our solid first half performance as well as the continued ramp of new business and the recovery we're seeing in the end market demand, we are increasing our revenue and adjusted EBITDA guidance ranges for 2026. We are increasing our revenue guidance range to $725 million to $755 million, which now represents a growth of approximately 14% over 2025 results at the midpoint. This remains supported by strong growth across all 3 business segments. Our increased adjusted EBITDA guidance range of $26 million to $31 million represents a growth of approximately 60% over 2025 results at the midpoint of the range, reflecting the operating leverage on the gross margin line as end markets recover, offset by the expense pressures we're seeing in SG&A. Finally, we continue to expect to generate positive free cash flow in 2026, further supported in the quarter by the proceeds from our equity ATM program. As evidenced by our recent actions, we continue to prioritize free cash flow for debt paydown, reducing interest expense and driving net leverage toward our targeted leverage ratio of 2x. Before I conclude, I'd like to highlight our ongoing efforts to drive additional gross margin expansion, control costs and drive cash flow. We see continued opportunity to drive further operational efficiencies across the business, especially as our new business ramps drive increased facility utilization. We are leveraging price and mix management to drive revenue while recovering costs associated with tariffs, freight costs, fuel surcharges and material costs. We remain focused on tightly managing salaries and discretionary spending. Subsequent to quarter end, we executed a sale-leaseback transaction on our Dublin, Virginia facility, which generated $3.8 million in net proceeds that were applied against our term loan in Q3, further reducing interest expense. Finally, I would like to thank all our CVG employees for their continuous efforts to drive shareholder value every day. With that, I will now turn the call back to the operator and open up the line for questions. Operator? Operator: [Operator Instructions] The first question comes from the line of John Franzreb with Sidoti & Co. John Franzreb: I'd like to start with the revenue guide. Nice improvement on a year-over-year basis. I'm kind of curious which segments was the largest upward revision? James Ray: Well, if you look at our percent versus prior year, Trim Systems and Components had the largest percent increase. Our Global Seating business with the international demand that we saw new programs and other end markets internationally had an appreciable increase year-over-year, too. And then Electrical, 16% up year-over-year, which is really big for that business. So they all contributed a material amount to the year-over-year increase as well as when you look at our guide going forward, all 3 are contributing a similar outlook. John Franzreb: Okay. So you're applying kind of the first half pace of increase to the second half across all 3 segments or maybe the second quarter to the balance of the year. Is that how I'm reading that, James? Angela O’Leary: This is Angie. Yes, I think we are looking at the first half in terms of expectations for the second half. We do see a little bit of a bigger ramp in Q2, but you'll remember in Q4, that tends to be a little bit of a lighter quarter for us just with less production days. John Franzreb: Okay. Fair enough. And that revenue guide, it's roughly up $60 million, but I guess the incremental EBITDA didn't drop down maybe as much as I thought on that kind of revenue. Is there any particular reason for that? Angela O’Leary: I think on the EBITDA side, as we mentioned here on the call, we are still seeing some headwinds on the SG&A, in particular, on our incentive compensation expense year-over-year. Our long-term performance awards are directly tied to stock price performance to align our management team and shareholders. So as we continue to see that performance in the second half, we will continue to see that expense be a little bit elevated. And I think probably on the whole of the year, we're looking to be just north of that 11% range, maybe into 11.5% on a full year basis from an SG&A percent of sales perspective. James Ray: The other thing I would add too, John, is that we continue to mine opportunities on the gross margin line to offset some of this SG&A increase. And then longer-term target, we are focused on getting to 10% going into subsequent years. So that's our long-term target. With the additional gross margin expansion, we see that fall through coming down to EBITDA. The other thing I would mention, too, John, is relative to the volatility and the uncertainty on the market recovery as well as exogenous geopolitical things. We're getting somewhat cautious because things are changing very frequently. Everything from constrained sea containers to move freight, which puts you in the expedite also tariffs, also fuel surcharges. So we're being somewhat cautious on that EBITDA line because things move back and forth. And as far as recovery goes, that does lag. So as we have impact to our input costs, those areas I just mentioned, and we go to get recovery from customers, there's a lag effect in that normally by quarter. So we're baking that in that outlook as well. John Franzreb: Understood. And since you brought it up, James, in your closing remarks, you mentioned gross margin improvements and you have a slide dedicated to it also in the presentation. You had -- I think you highlighted 4 key drivers. Which one of those drivers will have the most immediate impact in the near-term? James Ray: I would say the operating leverage because of the cost structure, the changes we made over the past several quarters and over the past couple of years. So we expect the thinning of our fixed as we see volume come through. The other item is product mix. Everything -- especially in our trim business, we had a higher mix of larger revenue items and then the launching of new business, the pricing impact of new business launch as well as pricing and product mix for our legacy business in addition to areas where we have a little more price flexibility like in our aftermarket business, where we have more promotional pricing versus our OEM business. So pricing is a big factor. Product mix is a big factor, the volume leverage and then recovery of the material economics, fuel surcharges, tariffs and those items additionally add more opportunity for gross margin expansion. John Franzreb: Got it. And I hate to ask this last question, Angie, but can you just walk us through what's going on the tax line one more time? Angela O’Leary: Sure. From a tax perspective, we have been in a full valuation allowance on our U.S. deferred tax assets. And so we don't get to take any benefit for paying foreign taxes. So to the extent we are making money in our international jurisdictions, we pay about a 25% rate on that income. So we just don't get the benefit at the federal level. So that's why we see that expense sort of on the net loss. Sure. I was just going to say it's pretty well in line with our 2025 10-K disclosures around tax. Operator: The next question comes from the line of Joe Gomes with NOBLE Capital. Joseph Gomes: I kind of want to follow up with John's question on the guide. Last quarter, James, you talked about the Class 8 forecast came in as expected, you'd kind of be at the high end of the previous range, which was $700 million and $30 million of adjusted EBITDA. The forecast for at least '26 hasn't changed at all. And yes, for '27, we've seen the increase for the Class 8 over the previous one. But just maybe you could walk us a little bit more through there as to what you're seeing that would cause you to raise the forecast as high as you did for the rest of '26. James Ray: Yes. That's a good point, Joe. And primarily, it's driven by non-Class 8 growth. The international seat business, if you look at the growth year-over-year, the Class 8 truck volume in North America being down is pretty substantial. The trim systems business in Q2 was substantially higher, and that's product mix, new business that we've won that we've launched -- we're launching that is in current ramp-up phase. And then in our Electrical Systems business, we actually had pretty significant growth in our EMEA business and Zoox is starting to ramp down. They seem to be on their plan for their volume production. We're somewhat cautious in -- with a new customer, new vehicle, new end market in our outlook before. But now we see all of the leading indicators pointing toward them achieving their planned ramp to get to 100 vehicles per week. And we're in constant dialogue with all of our key customers. Our Class 8 customers drive a large portion of our business, and they expect increases starting in Q3 more than they had in Q2, and that's reflected in the ACT outlook, but also in our schedules. And some of our schedules, again, ACT is a guidepost we use for outlook, but some of our customer schedules that are specific to certain models and certain customers could have a higher increase than what ACT is projecting in an aggregate level. Joseph Gomes: Okay. Great. I appreciate it. And just on the new business, maybe you could talk a little bit about what the environment looks out there now for new awards, not just ramping up awards that you won previously, but what the kind of business cycle looks like award cycle is looking in the second quarter, what you're seeing looking in the third and fourth quarter in terms of new business to go out and get and hopefully get awards and win for awards. James Ray: Yes. We target on average about $100 million a year in new business wins. Obviously, the vehicle cycle and sourcing cycles that could go up or down either way. And I would say through the first half of this year, we're on track based on what we've currently booked and what our outlook is from a pending award standpoint, what we've already quoted. And then there's additional opportunity funnels that we manage. And this is becoming more global in nature, Joe. And we have some pretty big opportunities in EMEA, especially in our Seating business. In North America, we're expanding beyond Class 8 and our trim systems business with more wins in powersports and non-Class 8 vehicles. So there's diversification there. So based on our outlook on the business won and what we have in our funnel, we continue to see further diversification as these programs hit start of production and start to ramp in the coming years. So the outlook right now is a pretty balanced outlook as far as diversification in the business, both regional and from an end market standpoint and across the business segments. So we're really feeling positive about the momentum we're building. Now the key, obviously, is to manage the uncertainties, volatility and variability we're seeing across the markets. With more diversification, you have more elements you have to track. And then the tough part is making the adjustments in your business, not just what you're currently producing, but how you're planning for future business. So investments in working capital, inventory and managing payment terms for receivables, that's soaking up some of our cash generation, but we still expect to be positive this year, and we're managing all of those elements to maximize our positive free cash flow to pay down additional debt to get down to that 2x level. So that remains a key focus in the business. And the best way to get there is through diversification, new business wins. As you know, pricing elasticity is more advantageous in the first portion of new wins. Some companies manage or measure vitality. And there's a certain part of the business, the revenue stream that they expect with new business because you have more pricing flexibility. So that's another area that we're putting more focus on, which will also help us drive to a target mid-teens gross margin level that we're looking for in the coming years. Joseph Gomes: Okay. And then one last one for me. I mean you guys do a great job at focused on reducing debt here. And you mentioned how the ATM proceeds came in at the end of the quarter, and you just did pay down another $3.8 million from the most recent sale leaseback. So given all that, kind of what would you say the quarterly run rate for interest expense is now? Angela O’Leary: Yes. Thanks for that. Yes, we continue to focus on free cash flow generation and paying down that debt. So we were happy to get that done during the quarter. We've been around -- running around $3.5 million to almost $4 million. I think in the second half, we're looking more at $2 million to $2.5 million per quarter on the interest expense. And as you mentioned, we'll be a little bit lower, maybe than $2.5 million just because of that Dublin transaction that we've just done there. So -- and we do, on the free cash flow topic have -- even though we've invested in free cash flow, we continue to see that we're being a little bit more efficient on that front. So despite of the investment, efficiency is favorable year-over-year, where we're at about 18.5% currently versus around 21% last year. So that's giving us some encouragement as well as we head into the second half. Operator: The next question comes from the line of Gary Prestopino with Barrington Research. Gary Prestopino: A couple of questions. First of all, James, did I hear you say correctly that -- did I hear you say that the Zoox program volumes are running up to expectations? I think you said in 2026, you were going to have about 2,500 going to '27, 5,000 and 10,000 in 2028. Is that -- am I hearing that right? James Ray: Yes, that's correct, Gary. Gary Prestopino: Okay. So there's no change in that. And I want... James Ray: I said not an appreciable change based on what we know, obviously, day-to-day and week-to-week, their production -- vehicle production schedules fluctuate. But the intent is the numbers that we have previously disclosed and they have told all their supply base to plan for. Gary Prestopino: Yes. Okay. And then again, I don't like to talk about guidance, but with the sales increase that you've projected and the flow-through of the EBITDA is just so minimal. And I understand that you're not kicking back stock comp into your EBITDA calculation, but it looks like your stock comp for 6 months was $2.5 million versus $1.7 million. So if that increases, I mean, it just can't explain that low flow-through. So I guess the question I'm asking is in the back half of the year, given the new business wins and what you're doing with Zoox, what kind of -- is there increased investment in growth on the SG&A line to accommodate this increase in sales that you're looking at? James Ray: Yes. I would take on the investment portion of it from an SG&A standpoint. We are not forecasting significant headcount increases associated with the new business launching as it relates to SG&A heads. We are adding direct labor, indirect labor heads that are on the gross margin line. But the sales, engineering, commercial, purchasing, IT, all the back-office SG&A costs and SG&A costs in the business, we're not really looking at any significant increase to hit the increased forecast outlook as well as launch new business. There is CapEx planned that we had in our plan, and there's some incremental to what's in our plan to bring on some of the business in international locations that we've won recently that have more of a near-term impact on our outlook. And that's also what's really increased it last year at this time and earlier this year, some of these programs we won recently and are already starting in production within 12 months, which is pretty quick for our business profile. So that's it from an SG&A and CapEx standpoint from headcount related, and I'll let Angie speak to the other part. Angela O’Leary: Sure. So the stock-based compensation line, that's right. That's $2.5 million year-to-date. What I was mentioning earlier is actually our -- we have cash-based long-term awards as well that are liability classified that we have to mark-to-market every quarter, which are also tied to stock performance. So that's probably the bigger side, which you don't see on a specific line item here in our financials, but it's driving some meaningful increases year-over-year as well as the annual program because as you might recall, last year, obviously, the performance didn't warrant much in terms of an annual plan result. Operator: There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back over to Mr. James Ray for closing remarks. James Ray: Thank you all for joining today's call. We continue to execute and deliver. We are back to top line growth across all 3 segments and delivered another quarter of gross margin expansion. Our focus on diversifying our end markets and improving our revenue mix is driving accretive growth. We are well positioned to drive further operating leverage as end markets improve and new business ramps going forward. We look forward to updating you on CVG's progress next quarter. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Commercial Vehicle Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Commercial Vehicle Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Commercial Vehicle Group (CVGI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $195.2 million in Q2 2026, up from $172 million in the prior-year period. Adjusted Gross Margin: 12.9%, up 90 basis points year-over-year and 70 basis points sequentially. Adjusted EBITDA: $5.4 million, compared to $5.2 million in Q2 2025; margin was 2.8%, down 20 basis points year-over-year. Net Loss (GAAP): $8.7 million, or $0.25 per diluted share, compared to a net loss of $4.1 million, or $0.12 per diluted share, in the prior-year period. Adjusted Net Loss: $4.6 million, or $0.13 per diluted share, compared to an adjusted net loss of $2.9 million, or $0.09 per diluted share, in the prior-year period. Free Cash Flow: Outflow of $1.4 million from continuing operations, compared to an inflow of $17.3 million in the prior-year period. Net Leverage Ratio: 3.3 times, down from 4.1 times at the end of 2025. Global Seating Segment Revenue: $80 million, up 7.5% year-over-year; adjusted operating income of $4 million. Global Electrical Systems Segment Revenue: $62 million, up 15.8% year-over-year; adjusted operating income of $1.7 million. Trim Systems and Components Segment Revenue: $53.2 million, up 21.1% year-over-year; adjusted operating profit of $2.2 million. 2026 Revenue Guidance: Increased to $725 million to $755 million, representing approximately 14% growth over 2025 at the midpoint. 2026 Adjusted EBITDA Guidance: Increased to $26 million to $31 million, representing approximately 60% growth over 2025 at the midpoint. Warning! GuruFocus has detected 2 Warning Sign with CVGI. Is CVGI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew year-over-year across all three segments, driven by new business wins and market recovery. Adjusted gross margin improved to 12.9%, up 90 basis points year-over-year and 70 basis points sequentially. Net leverage ratio reduced from 4.1x at end of 2025 to 3.3x at end of Q2 2026, with a goal of reaching 2x. Global Electrical Systems segment revenue grew 15.8% year-over-year, driven by the Zoox program and EMEA wins. Raised full-year 2026 revenue and adjusted EBITDA guidance, reflecting strong growth expectations. Adjusted EBITDA margin declined 20 basis points year-over-year due to higher SG&A expenses and FX headwinds. Net loss widened to $8.7 million in Q2 2026 from $4.1 million in the prior-year period. Free cash flow was an outflow of $1.4 million in Q2, versus an inflow of $17.3 million last year, due to working capital investment. SG&A expenses increased due to higher incentive compensation tied to stock price and improved financial performance. Interest expense rose to $2.9 million from $2.3 million, driven by higher rates from the 2025 refinancing. Q: Can you walk us through the reasoning behind raising the 2026 revenue and adjusted EBITDA guidance, especially given the Class 8 forecast for 2026 hasn't changed?A: James Ray (President and CEO) explained that the upward revision is primarily driven by non-Class 8 growth, including the international seat business, new product launches in the Trim Systems segment, and significant growth in the Electrical Systems segment, particularly from the Zoox program and EMEA wins. He noted that customer schedules for specific models indicate higher increases than the aggregate ACT projections, and the company is seeing leading indicators that Zoox is on track to achieve its planned ramp to 100 vehicles per week. Q: The revenue guide is up roughly $60 million, but the incremental EBITDA drop-down seems lower than expected. What is driving that?A: Angela O'Leary (Interim CFO) cited headwinds on the SG&A line, particularly elevated incentive compensation expense tied to stock price performance and improved financial results. James Ray added that the company is being cautious on the EBITDA line due to volatility from constrained sea containers, tariffs, and fuel surcharges, noting there is a lag effect in recovering these input costs from customers. Q: Which of the four key drivers for gross margin improvement will have the most immediate impact in the near term?A: James Ray highlighted operating leverage from the cost structure changes made over the past several quarters as volumes come through, followed by product mix. He noted the Trim business had a higher mix of larger revenue items, and the company is seeing pricing benefits from new business launches and more flexibility in the aftermarket business. Recovery of material economics, fuel surcharges, and tariffs also present additional opportunities for margin expansion. Q: Can you walk us through what's going on with the tax line?A: Angela O'Leary explained that the company has been in a full valuation allowance on US deferred tax assets, so it doesn't get a benefit for paying foreign taxes. To the extent the company is profitable in international jurisdictions, it pays about a 25% rate on that income without a federal-level benefit, which is why the expense shows up on the net loss line. Q: What does the environment look like for new business awards, and what are you seeing in the pipeline?A: James Ray stated the company targets about $100 million per year in new business wins and is on track through the first half. He noted significant opportunities in EMEA, especially in the Seating business, and expansion beyond Class 8 in North America with wins in powersports and non-Class 8 vehicles. The outlook is balanced across regions, end markets, and business segments, with a focus on managing uncertainties and maximizing free cash flow to pay down debt. Q: Given the recent ATM proceeds and sale-leaseback transactions, what is the quarterly run rate for interest expense now?A: Angela O'Leary indicated the company was running around $3.5 million to almost $4 million per quarter, but in the second half, they expect more like $2 million to $2.5 million per quarter. The recent Dublin, Virginia sale-leaseback transaction, which generated $3.8 million in net proceeds applied against the term loan, will push interest expense toward the lower end of that range. Q: Did you confirm that Zoox program volumes are running up to expectations, with 2,500 units in 2026, 5,000 in 2027, and 10,000 in 2028?A: James Ray confirmed those numbers are correct, noting there is no appreciable change based on what the company knows. While vehicle production schedules fluctuate day-to-day and week-to-week, the intent aligns with previously disclosed numbers that Zoox has communicated to its supply base to plan for. Q: Is there increased investment in growth on the SG&A line to accommodate the increase in sales, given the minimal EBITDA flow-through?A: James Ray clarified that the company is not forecasting significant SG&A headcount increases for new business launches. Additions are primarily direct and indirect labor on the gross margin line. Angela O'Leary added that beyond stock-based compensation, the company has cash-based long-term awards that are liability-classified and marked-to-market quarterly, tied to stock performance, which is driving meaningful year-over-year increases along with the annual incentive program. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved year-over-year revenue growth across all three segments by reducing concentration in cyclical North American Class 8 truck markets through geographic diversification. Expanded adjusted gross margins by 90 basis points year-over-year, driven by operational efficiency gains and improved capacity utilization at low-cost facilities in Mexico and Morocco. Leveraged a recovery in international seating demand and new business wins in the EMEA region to offset a 6% decline in North American Class 8 production volumes. Successfully executed a deleveraging strategy, reducing the net leverage ratio from 4.1x to 3.3x through an at-the-market equity program and sale-leaseback transactions. Capitalized on improved product mix in the Trim Systems segment, where higher-value components drove a 21.1% revenue increase despite broader market headwinds. Prioritized the ramp of the Zoox robotaxi program, which is transitioning from trial phases to commercial-scale fleet deployment in major markets like Las Vegas. Increased 2026 revenue guidance to $725 million–$755 million, assuming a 14% growth rate supported by accelerating Class 8 production and new business ramps. Projected a 60% year-over-year increase in adjusted EBITDA at the midpoint, reflecting significant operating leverage on the gross margin line as volumes recover. Anticipates continued SG&A pressure in the 11% to 11.5% of sales range due to incentive compensation tied to stock performance and improved financial results. Maintains a long-term net leverage target of 2x, with plans to use positive free cash flow for further debt paydown and interest expense reduction. Assumes a mid-single-digit increase in the construction market for 2026, fueled by industrial production and fiscal stimulus initiatives. Executed a sale-leaseback of the Dublin, Virginia facility for $3.8 million in net proceeds to further reduce term loan debt in Q3 2026. Identified macroeconomic risks including constrained sea containers, fluctuating freight costs, and potential lag in recovering material economics from customers. Noted a $3.4 million pretax warrant liability revaluation expense which impacted GAAP net loss for the second quarter. Transitioned to a higher interest rate environment following a 2025 refinancing, making aggressive debt paydown a primary accretive strategy. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the raise to non-Class 8 growth, specifically international seating demand and the Electrical Systems segment's 16% growth. The Zoox program is meeting expectations for a ramp toward 100 vehicles per week, providing confidence in the second-half outlook. Management explained that incremental EBITDA is partially offset by higher incentive compensation and mark-to-market adjustments on cash-based long-term awards. Long-term strategy aims to bring SG&A down to 10% of sales as gross margin expansion from new business begins to fall through to the bottom line. CVG is on track for its target of $100 million in annual new business wins, with a focus on powersports and non-Class 8 vehicles in North America. New wins are increasingly global, with significant opportunities identified in the EMEA seating market to further balance regional exposure. Quarterly interest expense is expected to drop to between $2 million and $2.5 million in the second half of 2026, down from nearly $4 million. The reduction is driven by the $26.2 million in total term loan paydowns achieved year-to-date through various capital actions.

Interested in Commercial Vehicle Group, Inc.? Here are five stocks we like better. Second-quarter revenue rose 13.5% to $195.2 million, with growth across all three segments. Adjusted gross margin expanded to 12.9%, although higher SG&A and interest expense contributed to a wider adjusted net loss of $4.6 million. CVG reduced its net leverage ratio to 3.3 times and paid down $26.2 million of its term loan year to date, but free cash flow was negative $1.4 million as the company invested in working capital and new program launches. The company raised its 2026 outlook to $725 million–$755 million in revenue and $26 million–$31 million in adjusted EBITDA, citing new business ramps, improving end-market demand and expected growth in Class 8 truck production. Hidden Gems: 3 Value Stocks to Watch for Strong 2025 Returns Commercial Vehicle Group (NASDAQ:CVGI) reported higher second-quarter revenue across each of its three operating segments, while adjusted gross margin expanded as new business programs ramped and end-market demand improved. Revenue for the second quarter of 2026 rose to $195.2 million from $172.0 million a year earlier. Adjusted EBITDA increased to $5.4 million from $5.2 million, though adjusted EBITDA margin declined 20 basis points to 2.8% as higher SG&A expenses and foreign-exchange headwinds more than offset gross-margin improvement. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “CVG is hitting its stride as our new business wins are ramping coincidentally with a recovery in our key end markets,” President and CEO James Ray said on the company’s earnings call. Adjusted gross margin reached 12.9% during the quarter, improving 90 basis points from the prior-year period and 70 basis points sequentially from the first quarter. Ray said the improvement reflected operational-efficiency efforts and operating leverage from higher volumes. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? The company said it continues to pursue additional margin expansion through higher facility utilization, price and mix management, and recovery of costs associated with tariffs, freight, fuel surcharges and materials. Ray also cited product mix, particularly in the Trim Systems and Components business, and the effect of new business launches. Despite the revenue growth and gross-margin gains, CVG recorded a net loss from continuing operations of $8.7 million, or $0.25 per diluted share, compared with a loss of $4.1 million, or $0.12 per share, in the prior-year quarter. The GAAP loss included a $3.4 million pre-tax warrant-liability revaluation expense. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Adjusted net loss was $4.6 million, or $0.13 per diluted share, versus an adjusted net loss of $2.9 million, or $0.09 per diluted share, a year earlier. Interim CFO Angie O’Leary said higher sales and improved gross margin were offset by higher SG&A and interest expense. SG&A rose primarily because of higher incentive compensation, including long-term awards tied to stock-price performance and annual incentive plans tied to improved financial performance. O’Leary said the company continues to manage discretionary spending tightly. Global Seating: Revenue increased 7.5% to $80.0 million, driven primarily by higher customer demand in international markets. Adjusted operating income rose $0.9 million to $4.0 million, helped by higher volumes and benefits from footprint consolidation in the Asia-Pacific region. Global Electrical Systems: Revenue rose 15.8% to $62.0 million, reflecting the ramp of previously awarded business in North America and international markets. Adjusted operating income increased $0.5 million to $1.7 million, primarily due to volume and product mix. Trim Systems and Components: Revenue climbed 21.1% to $53.2 million as customer demand increased in North America. Adjusted operating profit rose to $2.2 million from $0.3 million, primarily due to improved volume leverage and product mix. Ray highlighted the company’s Electrical Systems growth, including the ramp of the Zoox robotaxi program in North America and programs in the Europe, Middle East and Africa region. CVG began adding staff at its Aldama, Mexico, facility during the second quarter and expects to continue adding staffing in the third quarter to support Zoox production. The company also plans incremental capital investment for the ramp. Ray said increased activity at Aldama and Tangier, Morocco, is raising capacity utilization and contributing to margin expansion in the Electrical Systems segment. Zoox announced in June that it had locked its vehicle design and was preparing for large-scale manufacturing at its Hayward, California, facility. Ray said Zoox’s planned production volumes remained consistent with prior expectations. Free cash flow from continuing operations was an outflow of $1.4 million in the second quarter, compared with an inflow of $17.3 million a year earlier. O’Leary attributed the change primarily to higher working-capital investment needed to support revenue growth, including direct and indirect labor and capital spending for new launches. The company reduced its net leverage ratio to 3.3 times at the end of the quarter from 4.1 times at the end of 2025. The improvement was supported by a sale-leaseback transaction and the company’s at-the-market equity program, which generated $11.6 million in net proceeds during the quarter. CVG said the transactions enabled $14.6 million of total debt paydown since year-end 2025. O’Leary said the company had paid down $26.2 million of its term loan year to date, reducing future interest expense. Subsequent to quarter-end, CVG completed a sale-leaseback transaction involving its Dublin, Virginia, facility, generating $3.8 million in net proceeds that were applied to the term loan. Management reiterated its longer-term objective of bringing net leverage toward approximately two times. CVG increased its 2026 revenue guidance to a range of $725 million to $755 million, representing approximately 14% growth over 2025 at the midpoint. It raised adjusted EBITDA guidance to $26 million to $31 million, representing approximately 60% growth at the midpoint. The company continues to expect positive free cash flow for 2026. Ray said the outlook is supported by growth across all three segments, new business ramps and improving demand in key markets. According to ACT’s forecast cited by CVG, Class 8 truck production is expected to increase 9% in 2026, followed by another 9% increase in 2027 and 13% growth in 2028. Ray said CVG expects Class 8 production to increase further in the third and fourth quarters, while construction markets are expected to grow in the mid-single-digit percentage range during 2026. Commercial Vehicle Group, Inc (NASDAQ: CVGI) is a global designer, engineer and manufacturer of seating systems and interior components for commercial vehicles. The company serves original equipment manufacturers (OEMs) in the on‐highway, off‐highway and specialty vehicle markets, supplying complete seating assemblies, suspension mechanisms and interior trim products. CVGI's offerings are aimed at enhancing driver comfort, safety and overall vehicle usability across a diverse range of applications, from heavy‐duty trucks and transit buses to agricultural and construction equipment. The company's product portfolio is organized around three core segments: Seating, Controls and Interiors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Commercial Vehicle Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second quarter revenues of $195 million, EPS of $(0.25), Adjusted EBITDA of $5.4 millionStrong revenue growth across all three business segmentsRaises full-year 2026 guidance NEW ALBANY, Ohio, Aug. 03, 2026 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its second quarter ended June 30, 2026. Second Quarter 2026 Highlights (Results from Continuing Operations; compared with prior year, where comparisons are noted) Revenues of $195.2 million, up 13.5%, primarily driven by increased demand across all three segments. Gross margin expansion of 140 basis points versus Q2 2025 and 120 basis points sequentially versus Q1 2026 primarily from increased revenues and operational efficiency improvements. Operating income of $1.6 million, up $0.8 million, compared to $0.8 million. Adjusted operating income of $2.6 million, compared to $1.9 million. Net loss from continuing operations of $8.7 million, or $(0.25) per diluted share and adjusted net loss of $4.6 million, or $(0.13) per diluted share, compared to net loss from continuing operations of $4.1 million, or $(0.12) per diluted share and adjusted net loss of $2.9 million, or $(0.09) per diluted share. Net loss includes a $3.4 million pre-tax warrant liability revaluation expense. Adjusted EBITDA of $5.4 million, compared to $5.2 million, with an adjusted EBITDA margin of 2.8%, down from 3.0%. Net proceeds of approximately $11.6 million from the at-the-market equity issuance program used to pay down term loan. James Ray, President and Chief Executive Officer, said, “We are encouraged by the strong revenue growth and gross margin expansion we delivered in the second quarter. All three segments generated year-over-year revenue growth, driven by the continued ramp of new business and increased customer demand. North American Class 8 truck production began to improve late in the quarter. We continued to deliver sequential gross margin expansion, reflecting the improvements from our operational efficiency and footprint rationalization initiatives and position CVG to benefit from increased demand.” Mr. Ray continued, “Our Trim Systems & Components segment returned to year-over-year growth despite a lower Class 8 build rate compared with the prior-year quarter, driven in part by new business ramping in our wiper systems business. Global Seating continued to benefit from customer demand growth in international markets. Global Electrical Systems benefited from the ramp of new business, including the Zoox robotaxi program and a more diversified end market mix driving consistent growth. As we look to the second half of 2026, we remain focused on disciplined execution, continued margin improvement, and free cash generation. We expect CVG to be positioned to capitalize on improving market conditions." Angie O’Leary, Interim Chief Financial Officer, added, “During the second quarter, we continued to strengthen our balance sheet and execute our capital allocation priorities. Building on the progress from earlier this year, we further reduced outstanding debt with proceeds from our recently executed at-the-market equity offering program, which we expect to contribute to lower cash interest expense going forward. We also continue to make targeted investments in working capital to support key program launches and the growth opportunities across our businesses. SG&A expense increased from the prior year driven by higher incentive compensation and advisory service fees. We remain focused on driving profitable growth, generating free cash flow, and advancing toward our long-term net leverage objective of approximately two times. Based on our first-half revenue performance, and the momentum we see across all three segments, we are raising our revenue and Adjusted EBITDA guidance ranges for the year.” Second Quarter Financial Results from Continuing Operations(amounts in millions except per share data and percentages) Consolidated Results from Continuing Operations Second Quarter 2026 Results Second quarter 2026 revenues were $195.2 million, compared to $172.0 million in the prior year period, an increase of 13.5%. The overall increase in revenues was primarily due to increased customer demand in international markets and the ramp of previously awarded new business wins across all three of our segments. Operating income in the second quarter 2026 was $1.6 million, up $0.8 million compared to the prior year period. Second quarter 2026 adjusted operating income was $2.6 million, compared to adjusted operating income of $1.9 million in the prior year period. The increase in adjusted operating income was primarily attributable to higher sales and improved gross margin performance, partially offset by higher SG&A expense that was driven by higher incentive compensation and advisory service fees. Interest associated with debt and other expenses was $2.9 million and $2.3 million for the second quarter 2026 and 2025, respectively, with the increase for the second quarter 2026 due to higher interest rates. Net loss from continuing operations was $8.7 million, or $(0.25) per diluted share, for the second quarter 2026 compared to net loss of $4.1 million, or $(0.12) per diluted share, in the prior year period. Net loss includes a $3.4 million pre-tax warrant liability revaluation expense. Second quarter 2026 adjusted net loss from continuing operations was $4.6 million, or $(0.13) per diluted share, compared to adjusted net loss of $2.9 million, or $(0.09) per diluted share. On June 30, 2026, the Company had $24.8 million of outstanding borrowings on its U.S. revolving credit facility and $2.9 million outstanding borrowings on its China credit facility, $36.0 million of cash and $91.2 million of availability from the credit facilities (subject to customary borrowing base and other conditions), resulting in total liquidity of $127.2 million. Second Quarter 2026 Segment Results Global Seating Segment Revenues were $80.0 million compared to $74.5 million for the prior year period, an increase of 7.5%, due primarily to increased customer demand in international markets. Operating income was $3.0 million, compared to $2.7 million in the prior year period, an increase of $0.3 million, driven by higher sales and improved gross margin performance. Second quarter 2026 adjusted operating income was $4.0 million compared to $3.1 million in the prior year period. Global Electrical Systems Segment Revenues were $62.0 million compared to $53.6 million in the prior year period, an increase of 15.8%, primarily as a result of ramping new business wins. Operating income was $1.7 million compared to operating income of $0.7 million in the prior year period. The increase in operating income was primarily attributable to higher revenues. Trim Systems and Components Segment Revenues were $53.2 million compared to $43.9 million in the prior year period, an increase of 21.1%, primarily due to higher sales volume as a result of increased customer demand in North America, including improved product mix. Operating income was $2.2 million compared to operating income of $0.1 million in the prior year period. The increase in operating income was primarily attributable to higher demand and improved operational efficiencies. Outlook CVG updated the Company's outlook for the full year 2026, based on current market conditions: This outlook reflects, among others, current industry forecasts for North America Class 8 truck builds. According to ACT Research, 2026 North American Class 8 truck production levels are expected to be at 274,111 units, up 9% versus the 2025 actual Class 8 truck builds of 251,251 units. The outlook for the Construction end market reflects mid-single digit growth in 2026. GAAP to Non-GAAP Reconciliation A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to this release. Conference Call A conference call to discuss this press release is scheduled for Tuesday, August 4, 2026, at 8:30 a.m. ET. Management intends to reference the Q2 2026 Earnings Call Presentation during the conference call. To participate, dial (833) 461-5787 using conference code 592968497. International participants dial (585) 542-9983 using conference code 592968497. This call is being webcast and can be accessed through the “Investors” section of CVG’s website at ir.cvgrp.com, where it will be archived and available for replay for one year. Company ContactMichelle HardsVice-President, Investor Relations / Corporate Financial Planning & [email protected] Investor Relations ContactRoss Collins or Nathan SkownAlpha IR [email protected] About CVG CVG is a global provider of systems, assemblies and components to global commercial vehicle markets and electric vehicle markets. We deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com. Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, including, but not limited to, global commercial vehicle markets and electric vehicle markets, changes in the North America Class 8 and Class 5-7 truck build rates, performance of the global construction and agricultural equipment businesses, the Company’s prospects in the global commercial vehicle markets and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment including global supply chain constraints, inflation and labor shortages, tariffs and counter-measures, financial covenant compliance, anticipated effects of acquisitions or divestitures, production of new products, plans for capital expenditures, and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements. Other Information Throughout this document, certain numbers in the tables or elsewhere may not sum due to rounding. Rounding may have also impacted the presentation of certain year-on-year percentage changes. Reported Tax Provision adjusted for tax effect of special charges at 25%. The following tables present reconciliations of the captions within CVG's Condensed Consolidated Statements of Cash Flows to Free cash flow, attributable to continuing operations, discontinued operations, and total CVG for the three and six months ended June 30, 2026 and 2025. Use of Non-GAAP Measures This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, engage in financial and operational planning and to determine incentive compensation. Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on the Company’s financial and operating results and in comparing the Company’s performance to that of its competitors and to comparable reporting periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.

Vehicle systems manufacturer Commercial Vehicle Group (NASDAQ:CVGI) will be reporting earnings this Monday after the bell. Here’s what to expect. Commercial Vehicle Group beat analysts’ revenue expectations last quarter, reporting revenues of $171.5 million, up 1% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS and EBITDA estimates. Is Commercial Vehicle Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Commercial Vehicle Group’s revenue to be flat year on year, improving from the 11.2% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Commercial Vehicle Group has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Commercial Vehicle Group’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wabash’s revenues decreased 9.1% year on year, beating analysts’ expectations by 3.6%, and Oshkosh reported revenues up 6.7%, topping estimates by 3.3%. Wabash traded down 6.8% following the results while Oshkosh was also down 7.8%. Read our full analysis of Wabash’s results here and Oshkosh’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the heavy transportation equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Commercial Vehicle Group is up 6% during the same time and is heading into earnings with an average analyst price target of $7.50 (compared to the current share price of $4.39). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Commercial Vehicle Group sits in focus as analysts fine tune their models around a steady fair value price target of US$7.17 per share. Recent Street research links these modestly higher targets to updated assumptions, with commentary pointing to adjustments in discount rates and valuation inputs rather than a new thesis on the stock. As you read on, you will see how these evolving price targets and the surrounding narrative can help you track Commercial Vehicle Group through upcoming earnings and guidance updates. Stay updated as the Fair Value for Commercial Vehicle Group shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Commercial Vehicle Group. Both Noble Capital and Barrington have raised their price targets for Commercial Vehicle Group, signaling that their updated models support a fair value view above prior levels. These firms appear comfortable fine tuning assumptions around discount rates and other valuation inputs. This suggests they see Commercial Vehicle Group’s risk and execution profile as aligned with their refreshed targets. The timing of Barrington’s move ahead of earnings highlights that some analysts see upcoming results and guidance as important catalysts for reassessing the stock’s valuation framework. The recent target changes from Noble Capital and Barrington are described as modest, which can indicate that, in their view, a large part of the perceived value in Commercial Vehicle Group is already reflected in current expectations. Commentary tied to discount rate and model tweaks rather than a new thesis suggests that analysts are refining, not rethinking, their stance. This may limit how much further their fair value estimates move without new execution or growth data. Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives! We've flagged 2 risks for Commercial Vehicle Group. See which could impact your investment. Fair value is steady at US$7.17 per share, with no change in the modeled intrinsic value. Revenue growth assumption remains at 5.35%, with expectations described as stable. Net profit margin stays effectively flat at 87.27%, with only a very small refinement. Future P/E moves from 43.90x to 43.66x in the updated valuation work. The discount rate adjusts from 10.68% to 10.48% in the revised model. Narratives connect Commercial Vehicle Group’s business story to analyst forecasts and fair value, so you can see how the pieces fit together. They update as new information comes through, helping you keep context around each headline. Head over to the Simply Wall St Community and follow the Narrative on Commercial Vehicle Group to stay up to date on: How new business wins in electrical systems and wire harness solutions tied to electric and autonomous vehicles shape Commercial Vehicle Group’s long term revenue mix. What ongoing efficiency efforts, including facility optimization, automation, SG&A reductions, and deleveraging, could mean for future margins and financial flexibility. Key risks such as cyclical weakness in core truck and agriculture markets, high leverage, execution risk in new EV and autonomous programs, and exposure to tariffs and trade policy shifts. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CVGI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]