Commercial Vehicle Group, Inc. Q1 FY2026 earnings call

• Welcomed Angie O'Leary, Interim Chief Financial Officer to her first earnings call. - CVG delivered year-over-year revenue growth driven by global electrical systems and global seeding segments. - Adjusted gross margin was 12.2%, up 140 basis points year-over-year. - Executed sale-leaseback transaction of Venore, Tennessee manufacturing facility, used cash to pay down debt. - Global electrical systems segment saw 14% growth in segment revenues, ramp of Zoox Robotaxi program production. - Trim systems and components segment saw sequential improvement in gross and adjusted operating margins.

Global electrical systems: Q1 2026 revenues were $57.4 million, up 13.9% year-over-year, driven by ramp of previously awarded new business wins. Adjusted operating income was $0.5 million, up $0.3 million. Global seeding: Revenues were $74.5 million, up 1.5% year-over-year, with increase from higher international volumes. Adjusted operating income was $3.6 million, up $0.9 million. Trim systems and components: Revenues decreased 13.9% to $39.5 million. Adjusted operating profit was $0.1 million, down from $1.6 million prior year.

• Reaffirming net sales guidance range of $660 to $700 million and adjusted EBITDA guidance range of $24 to $30 million for 2026. - Expecting positive free cash flow in 2026, prioritize for debt paydown to drive net leverage toward two times. - If ACT Class A forecasts play out as projected, expect metrics to come in toward high end of ranges and plan further update on second quarter earnings call.

• Economic conditions in markets CBG operates. - Fluctuations in production volumes of vehicles for which CBG is supplier. - Financial covenant compliance and liquidity. - Risks associated with conducting business in foreign countries and currencies. - Other risks as detailed in SEC filing.

Q: Asked about increased content per vehicle in global electrical systems, timing and growth.

A: Varies by vehicle architecture, autonomous vehicles have double electrical content, new business wins focus on higher contented applications, enough capacity for next year, may plan additional capacity next year.

Q: Talked about Class 8 truck market order growth, if ACT's 9% growth could be low.

A: Volatility in truck build forecast due to external events, inbound orders over last five months give confidence, but supply chain constraints could be a factor.

Q: Asked about SG&A increase, behind it and if it'll come down.

A: Driven by incentive compensation, focus on surgically managing SG&A, expect level to hold or improve if sales go up.

Q: Asked about capacity in global electrical business, new facilities.

A: Have enough capacity through 2026, not looking at big new facility expenses for at least another year.

Q: Asked about percentage of global electrical business in EV market, breakdown by region.

A: About 10%-12% in EV market, majority in EMEA, Zoox ramp in North America will increase North American EV revenue percentage.

Q: Asked about Zoox contract length.

A: Agreements take through end of the decade, have supply agreements and statements of work for next few years.

Q: Asked about global seeding breakdown between aftermarket and OEM.

A: Aftermarket sales approximately $50-$60 million, focused on field sales rep organization and new configurations, seeing 20% increase in aftermarket orders