Improved Gross Margin and Free Cash Flow
CVG delivered an adjusted gross margin of 12%, up 120 basis points sequentially and 70 basis points year-over-year. Free cash flow improved to $17.3 million, an increase of $16.5 million compared to last year.
Debt Refinancing Provides Financial Flexibility
Completed debt refinancing during the second quarter, providing significantly more financial flexibility for operational initiatives, including cost reductions and margin improvements.
Global Electrical Systems Segment Performance
Revenues in the Global Electrical Systems segment remained flat compared to the prior year, with an improvement in adjusted operating income by $0.4 million due to lower salary expenses.
Raised Free Cash Flow Guidance
Free cash flow guidance for the year was raised to at least $30 million, reflecting robust performance year-to-date.