second quarter 2026
Filed Aug 3, 2026CVG reports second-quarter revenues of $195.2 million, adjusted EBITDA of $5.4 million, and raises full-year 2026 revenue and Adjusted EBITDA guidance.
All three segments delivered year-over-year revenue growth and gross margin expanded, supporting higher full-year revenue and Adjusted EBITDA guidance. However, adjusted EBITDA margin declined, losses widened, and a $3.4 million pre-tax warrant liability revaluation expense contributed to a larger net loss.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $195.2 million | – | 13.5% |
| Gross profitGAAP | $24.7 million | – | 26.7% |
| Gross marginGAAP | 12.7% | 120 basis points | 140 basis points |
| Adjusted gross profitnon-GAAP | $25.2 million | – | 22.3% |
| Adjusted gross marginnon-GAAP | 12.9% | – | – |
| Operating incomeGAAP | $1.6 million | – | 100.0% |
| Operating marginGAAP | 0.8% | – | – |
| Adjusted operating incomenon-GAAP | $2.6 million | – | 36.8% |
| Adjusted operating marginnon-GAAP | 1.3% | – | – |
| Net income (loss) from continuing operationsGAAP | $(8.7) million | – | NM |
| Adjusted net income (loss) from continuing operationsnon-GAAP | $(4.6) million | – | 58.6% |
| Earnings (loss) per share, dilutedGAAP | $(0.25) | – | NM |
| Adjusted earnings (loss) per share, dilutednon-GAAP | $(0.13) | – | 44.4% |
| Adjusted EBITDAnon-GAAP | $5.4 million | – | 3.8% |
| Adjusted EBITDA marginnon-GAAP | 2.8% | – | – |
| Interest associated with debt and other expensesGAAP | $2.9 million | – | – |
| Global Seating operating incomeGAAP | $3.0 million | – | – |
| Global Seating adjusted operating incomenon-GAAP | $4.0 million | – | – |
| Global Electrical Systems operating incomeGAAP | $1.7 million | – | – |
| Trim Systems and Components operating incomeGAAP | $2.2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global SeatingIncreased customer demand in international markets. | $80.0 million | – | 7.5% |
| Global Electrical SystemsRamping new business wins, including the Zoox robotaxi program and a more diversified end market mix. | $62.0 million | – | 15.8% |
| Trim Systems and ComponentsHigher sales volume from increased customer demand in North America, including improved product mix. | $53.2 million | – | 21.1% |
full year 2026 outlook
- Revenue$725 - $755 million
- NoteAdjusted EBITDA: $26 - $31 million
- NoteFree Cash Flow: Positive
Capital returns
- Net proceeds of approximately $11.6 million from the at-the-market equity issuance program used to pay down term loan.
What drove it
- Increased customer demand in international markets and the ramp of previously awarded new business wins across all three segments drove consolidated revenue growth.
- Gross margin expansion reflected increased revenues and operational efficiency improvements.
- Adjusted operating income increased on higher sales and improved gross margin performance, partially offset by higher SG&A expense.
- SG&A expense increased from the prior year because of higher incentive compensation and advisory service fees.
- North American Class 8 truck production began to improve late in the quarter.
- Trim Systems & Components returned to year-over-year growth despite a lower Class 8 build rate compared with the prior-year quarter, aided by new business ramping in wiper systems.
- Global Electrical Systems benefited from new-business ramping, including the Zoox robotaxi program, and a more diversified end market mix.
Concerns
- Net loss from continuing operations widened to $(8.7) million from $(4.1) million.
- Net loss includes a $3.4 million pre-tax warrant liability revaluation expense.
- Adjusted EBITDA margin declined to 2.8% from 3.0%.
- Interest associated with debt and other expenses increased to $2.9 million from $2.3 million due to higher interest rates.
- The outlook reflects current industry forecasts for North America Class 8 truck builds.
What to watch
- Execution against the updated full-year 2026 revenue outlook of $725 - $755 million.
- Execution against the updated full-year 2026 Adjusted EBITDA outlook of $26 - $31 million.
- Delivery of positive full-year 2026 Free Cash Flow.
- Progress in operational efficiency and footprint rationalization initiatives intended to support continued margin improvement.
- The continued ramp of new business, including wiper systems and the Zoox robotaxi program.
- North American Class 8 truck production conditions and customer demand across international markets.
- Progress toward the long-term net leverage objective of approximately two times.
Balance sheet and cash flow
- On June 30, 2026, the Company had $36.0 million of cash.
- On June 30, 2026, the Company had $24.8 million of outstanding borrowings on its U.S. revolving credit facility.
- On June 30, 2026, the Company had $2.9 million outstanding borrowings on its China credit facility.
- On June 30, 2026, availability from the credit facilities was $91.2 million, subject to customary borrowing base and other conditions.
- Total liquidity was $127.2 million.
- The Company expects the at-the-market equity offering proceeds used to reduce debt to contribute to lower cash interest expense going forward.
- The Company continues to make targeted investments in working capital to support key program launches and growth opportunities.
Analysis
CVG generated $195.2 million of second-quarter revenue, up 13.5% from $172.0 million. Growth was broad-based, with year-over-year revenue gains in Global Seating, Global Electrical Systems, and Trim Systems and Components. Management attributed the consolidated increase to international customer demand and the ramp of previously awarded new business across all three segments. Trim Systems and Components delivered the fastest segment revenue growth, supported by North American demand and improved product mix.
Profitability improved at the gross-profit and operating-income levels. Gross profit increased to $24.7 million from $19.5 million, while gross margin rose to 12.7% from 11.3% and expanded 120 basis points sequentially versus Q1 2026. Operating income was $1.6 million versus $0.8 million, and adjusted operating income was $2.6 million versus $1.9 million. Higher sales and improved gross margin performance supported the improvement, while higher incentive compensation and advisory service fees increased SG&A expense.
The earnings outcome remained pressured below operating income. Net loss from continuing operations widened to $(8.7) million, or $(0.25) per diluted share, from $(4.1) million, or $(0.12) per diluted share. The reported loss included a $3.4 million pre-tax warrant liability revaluation expense. Adjusted net loss also widened to $(4.6) million from $(2.9) million, and adjusted EBITDA increased only to $5.4 million from $5.2 million as adjusted EBITDA margin declined to 2.8% from 3.0%. Interest associated with debt and other expenses rose to $2.9 million from $2.3 million due to higher interest rates.
Capital allocation focused on balance-sheet improvement and working-capital support. CVG received net proceeds of approximately $11.6 million from its at-the-market equity issuance program and used the proceeds to pay down term loan. At June 30, 2026, the company reported $36.0 million of cash, $24.8 million of U.S. revolving credit facility borrowings, $2.9 million of China credit facility borrowings, and total liquidity of $127.2 million. Management also cited targeted working-capital investments for program launches and growth opportunities.
The company raised its full-year 2026 revenue outlook to $725 - $755 million from $660 - $700 million and its Adjusted EBITDA outlook to $26 - $31 million from $24 - $30 million, while retaining its expectation for Positive Free Cash Flow. The guide is based in part on current North American Class 8 truck-build forecasts and reflects mid-single digit growth in the Construction end market. The central execution issues are sustaining the recent gross-margin improvement, converting revenue growth into adjusted EBITDA margin expansion, ramping awarded business, and generating the guided free cash flow.
Management, verbatim
We are encouraged by the strong revenue growth and gross margin expansion we delivered in the second quarter. All three segments generated year-over-year revenue growth, driven by the continued ramp of new business and increased customer demand.
James Ray, President and Chief Executive Officer
As we look to the second half of 2026, we remain focused on disciplined execution, continued margin improvement, and free cash generation. We expect CVG to be positioned to capitalize on improving market conditions.
James Ray, President and Chief Executive Officer
Based on our first-half revenue performance, and the momentum we see across all three segments, we are raising our revenue and Adjusted EBITDA guidance ranges for the year.
Angie O’Leary, Interim Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter revenue, gross profit, operating income, net income (loss), EPS, adjusted EBITDA, and segment revenue figures were not reported on their respective line items.
- Operating cash flow was not reported.
- Actual free cash flow for the second quarter was not reported.
- Capital expenditures were not reported.
- Total debt was not reported.
- Dividend declarations or payments were not reported.
- Share repurchases were not reported.
- Income tax expense, tax rate, and adjusted tax rate were not reported.
- Guidance for gross margin, operating expenses, and tax rate was not reported.
- A separate previous earnings release outlook section was not provided for guidance-versus-actual comparisons.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.