Commercial Vehicle Group reports Q1 adjusted EPS (8c), consensus (14c)

Reports Q1 revenue $169.8M, consensus $163.5M. The company noted the 12.7% year-over-year revenue decrease was primarily due to softening in global Construction and Agriculture markets and North America Class 8 truck demand. CVG reported free cash flow from continuing operations of $11.2M for the quarter. James Ray, president and CEO, said, “Our first quarter results demonstrate sequential improvement in margins and free cash flow. Cash generation and debt paydown remain key priorities for CVG, as we look to build on our strong free cash performance in the first quarter through further margin improvement, working capital reduction, and reduced capital expenditures. We are beginning to see the benefits of efforts made in 2024, including strategic divestments of non-core businesses, to transform CVG. These divestitures, as well as our priority on improving operational efficiency, have allowed us to streamline operations, lower our cost structure, and drive cash generation to pay down debt. Despite industry-wide and global macroeconomic headwinds, we are prioritizing strong execution from the top down within CVG focused on cost mitigation, margin improvement, and operational efficiency.”