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NEW ALBANY, Ohio - Commercial Vehicle Group (NASDAQ:CVGI) saw its stock rise 4.8% after reporting fourth quarter earnings that missed analyst estimates, but provided an optimistic outlook for 2025.
The industrial products company reported a Q4 adjusted loss of $0.15 per share, worse than the $0.03 loss analysts expected. Revenue came in at $163.3 million, falling short of the $220.49 million consensus estimate and declining 15.7% YoY.
CVG attributed the revenue decline primarily to softening demand in construction and agriculture markets, as well as lower Class 8 heavy truck builds. The company reported an operating loss of $5.3 million for the quarter, compared to operating income of $4.1 million in the year-ago period.
Despite the earnings miss, investors appeared encouraged by CVG’s outlook. The company provided 2025 revenue guidance of $670-710 million, in line with analyst expectations of $691.9 million. CVG also projected adjusted EBITDA of $25-30 million for 2025.
"2024 was a year of meaningful change for CVG. We undertook immediate and decisive actions, including divestitures of non-strategic assets and businesses, and improvement initiatives that we believe position us for future accretive growth," said CEO James Ray.
The company highlighted new business wins totaling over $97 million when fully ramped, concentrated in its Electrical Systems segment. CVG also noted it is shifting production to lower-cost facilities in Morocco and Mexico to improve operating leverage.
While facing continued market headwinds, CVG expressed confidence that its strategic initiatives will drive margin expansion and EBITDA growth in 2025. The company’s stock move suggests investors are optimistic about its turnaround efforts despite the Q4 earnings miss.
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