CVG — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenues reached $208.1 million in Q3 2026, a 36.5% increase compared to $152.5 million in Q3 2025.
• Gross margin expanded to 13.5% in Q3 2026 from 10.5% in Q3 2025, representing a 300 basis point year-over-year increase and 80 basis points sequential increase.
• Operating income was $7.7 million in Q3 2026, including a $3.1 million gain on sale of assets, compared to an operating loss of $1.1 million in Q3 2025.
• Adjusted operating income was $5.6 million in Q3 2026, up from $1.6 million in Q3 2025.
• Net income from continuing operations was $5.6 million ($0.14 per diluted share) in Q3 2026, compared to a net loss of $6.8 million ($(0.20) per diluted share) in Q3 2025; net income included a $4.1 million pre-tax warrant liability revaluation benefit.
• Adjusted net income from continuing operations was $1.2 million ($0.03 per diluted share) in Q3 2026, compared to an adjusted net loss of $4.6 million ($(0.14) per diluted share) in Q3 2025.
• Adjusted EBITDA was $8.5 million in Q3 2026 with a margin of 4.1%, compared to $4.6 million with a 3.0% margin in Q3 2025.
• Interest expense was $3.4 million in Q3 2026, down from $4.1 million in Q3 2025, driven by lower debt balances.
• As of September 30, 2026, the company had $34.2 million in outstanding borrowings on its U.S. revolving credit facility and $1.5 million on its China credit facility.
• Total liquidity was $123.1 million as of September 30, 2026, comprising $39.8 million in cash and $83.3 million of availability from credit facilities.
• Net leverage was approximately 2.7 times as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 revenue outlook was raised to $755–$775 million from the prior range of $725–$755 million.
• Full-year 2026 Adjusted EBITDA guidance range was narrowed to $26–$29 million from the prior range of $26–$31 million, reflecting incremental expenses related to CEO succession.
• Full-year 2026 Free Cash Flow outlook remains positive.
• Management expects further earnings growth into 2027 driven by new business ramps, operational improvements, and execution in key end markets.
• 2026 North American Class 8 truck production is forecasted at 272,442 units, an 8% increase versus 2025 actuals.
• The construction end market outlook reflects high-single-digit growth for 2026.
• Adjusted EBITDA outlook incorporates current estimates of long-term performance shares settled in cash; GAAP Adjusted EBITDA may fluctuate due to share price changes affecting fair value of these awards.

Business Segments and Product Lines:

• Global Seating: Revenues increased 23.3% to $84.7 million in Q3 2026, driven by increased demand in North America and Asia-Pacific. Operating income rose to $3.6 million from $1.4 million. Adjusted operating income was $4.6 million.
• Global Electrical Systems: Revenues increased 30.2% to $64.4 million in Q3 2026, driven by new program ramps and increased construction demand. Operating income rose to $3.7 million from $0.8 million.
• Trim Systems & Components: Revenues surged 71.9% to $58.9 million in Q3 2026, driven by higher sales volume and improved product mix in North America. Operating income turned to $5.8 million from a $0.9 million loss, including a gain on sale of assets. Adjusted operating income was $2.7 million.
• Trim Systems & Components benefited from higher North American Class 8 production volumes and new program launches.
• Global Electrical Systems continues to work closely with Zoox to support their production plans.
• Global Seating is executing footprint initiatives in China, the U.S., and the U.K. to lower the cost base over time.

Market and Competitive Landscape:

• Revenue growth was primarily driven by increased customer demand across all three segments and the ramp of previously awarded new business wins.
• The company operates in global commercial vehicle markets and electric vehicle markets.
• Management cited opportunities to recover higher commodity and freight costs.

Risks and Challenges:

• Forward-looking statements note risks including volatility in the global economic environment, global supply chain constraints, inflation, labor shortages, tariffs, and counter-measures.
• Risks include financial covenant compliance, anticipated effects of acquisitions or divestitures, and production of new products.
• GAAP earnings volatility may occur due to the periodic remeasurement of long-term incentive awards settled in cash based on share price changes.

Management Commentary and Tone:

• James Ray, outgoing CEO, stated the quarter demonstrated the earnings potential of a leaner, more efficient, and focused CVG, driven by strong volume growth and productivity gains.
• CFO Angie O'Leary described the quarter as a meaningful step toward profitable growth, with financial priorities focused on converting earnings to cash, strengthening the balance sheet, and investing in working capital and capacity.
• William C. Johnson, Chairman of the Board, expressed confidence in David Ruppel's ability to advance CVG's strategy and drive growth.
• David Ruppel, incoming CEO, highlighted a strong foundation with clear potential to deliver profitable growth.
• Management noted that SG&A expense increased due to share-based compensation, performance-based incentives, and recruiting costs related to the CEO succession.

Other Key Points:

• The Board appointed David Ruppel as President and CEO and a Board member, effective November 9, 2026.
• James Ray will step down as CEO and Board member on November 9, 2026, and will remain as a Senior Advisor through his retirement on January 5, 2027.
• Mr. Ruppel brings over 25 years of experience, currently serving as Senior Vice President and General Manager of Transportation & Logistics at Littelfuse, Inc., with global P&L responsibility for a $700 million segment.
• The CEO succession did not result from any disagreement with the Company regarding operations, policies, or practices.
• A conference call to discuss results is scheduled for November 3, 2026, at 8:30 a.m. ET.
• Free cash flow from continuing operations was $600 million for the three months ended September 30, 2026, compared to $(3,446) million in the prior year period.
• Free cash flow from continuing operations was $10,910 million for the nine months ended September 30, 2026, compared to $25,018 million in the prior year period.