Commercial Vehicle Group Reports Q4 Loss, Plans Cost Savings

Commercial Vehicle Group Inc (CVGI) reported a net loss of $35 million in the fourth quarter of 2024, a significant drop from a net income of $22.6 million in the previous year, as revenues fell to $163.3 million, primarily due to declining sales in vehicle solutions and electrical systems. Despite this, the company secured approximately $97 million in new business wins for 2024 and opened low-cost facilities in Mexico and Morocco, which are expected to enhance operational efficiency. CVGI has implemented a new organizational structure and anticipates $15 million to $20 million in cost savings in 2025, aimed at improving financial performance. The company's adjusted EBITDA for Q4 was $0.9 million, down sharply from $8.3 million a year earlier, highlighting ongoing operational challenges. Management expressed confidence in the company's future growth trajectory, citing improvement initiatives and strategic divestitures as key factors. However, CVGI's stock has underperformed the market, raising questions about its immediate financial stability and recovery prospects.