Commercial Vehicle Group, Inc. Q3 FY2025 earnings call

• CVG delivered an adjusted gross margin of 12.1%, up 10 basis points q/q and 50 basis points y/y, driven by operational efficiency initiatives. - Global Electrical Systems segment revenues up 6% y/y despite end market softness, with ramp of 2 key new programs. - Strong year-to-date free cash generation of $25 million, up $14 million y/y. - In North America, rightsizing manufacturing footprint; in EMEA and APAC, optimizing production capacity. - Managing headcount and flexing work schedules to reduce SG&A and manufacturing overhead costs.

Global Seating: Achieved revenues of $68.7 million, a decrease of 10% compared to the year ago quarter. Adjusted operating income was $2.9 million, an increase of $3.7 million compared to the third quarter of 2024. Global Electrical Systems: Third quarter revenues was $49.5 million, an increase of 6% compared to the year ago quarter. Adjusted operating income for the third quarter was $1.4 million, an increase of $1.6 million compared to the prior year. Trim Systems and Components: Third quarter revenues decreased 29% to $34.3 million compared to the year ago quarter. Adjusted operating loss for the third quarter was $0.3 million compared to a profit of $4.1 million in the prior year.

• Expect to generate free cash flow in Q4 2025. - Full year working capital reduction target $30 million, 50% reduction in capital expenditures, $15-20 million cost savings. - Revised 2025 revenue guidance: $640-650 million (down from $650-670 million). Revised adjusted EBITDA guidance: $17-19 million (down from $21-25 million). - Global Electrical Systems sales expected to increase high single-digit to low double-digit in 2026.

• Economic conditions in markets operated. - Fluctuations in 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. - Other risks as detailed in SEC filings.

Q: About efficiency improvements, headcount, and CapEx A: James and Andy discuss ongoing efficiency efforts, headcount reductions across SG&A and manufacturing, and CapEx tied to future business program launches Q: Updated guidance, adjusted EBITDA reduction A: Andy explains that the majority of the adjusted EBITDA reduction is due to deleveraging and mix impact from the sharp decline in North America Class 8 business Q: New program wins in electrical, ramp timeline A: James and Andy state that new program ramps start in late 2026, with full annualized rate expected in late 2027/2028 Q: Tariffs, suppliers, customers A: James discusses tariff negotiations with customers, mitigation efforts like reshoring, and alignment with customers on tariff impact Q: Interest expense, SG&A A: Andy explains that interest expense increased due to refinancing in June 2025, and SG&A has been reduced by ~15% year-over-year through headcount and process changes Q: Global Electrical new programs A: James details programs with an autonomous vehicle OEM in North America and a European OEM, with ramps starting in late 2026 and full volume expected in late 2027/2028