CVG (NASDAQ: CVGI), a diversified industrial products and services company headquartered in New Albany, Ohio, reported its financial results for the second quarter ended June 30, 2026. The company posted revenues of $195 million, a diluted loss per share of $(0.25), and Adjusted EBITDA of $5.4 million, with strong revenue growth across all three business segments. CVG also raised its full-year 2026 guidance. The results come as the company continues to navigate a multi-year operational turnaround, working to lift margins from historically low levels while diversifying its end-market exposure beyond traditional heavy-truck cycles.

Second Quarter 2026 Highlights

All results are from continuing operations and compared with the prior-year period where noted.

• Revenues: $195.2 million, up 13.5%, primarily driven by increased demand across all three segments.
• Gross margin: Expanded 140 basis points versus Q2 2025 and 120 basis points sequentially versus Q1 2026, reflecting increased revenues and operational efficiency improvements.
• Operating income: $1.6 million, up $0.8 million from $0.8 million in the prior-year quarter. Adjusted operating income was $2.6 million, compared to $1.9 million.
• Net loss from continuing operations: $8.7 million, or $(0.25) per diluted share. Adjusted net loss was $4.6 million, or $(0.13) per diluted share. This compared to a prior-year net loss from continuing operations of $4.1 million, or $(0.12) per diluted share, and adjusted net loss of $2.9 million, or $(0.09) per diluted share. The current-quarter net loss includes a $3.4 million pre-tax warrant liability revaluation expense, a non-cash item reflecting mark-to-market adjustments on outstanding warrants.
• Adjusted EBITDA: $5.4 million, compared to $5.2 million, with an adjusted EBITDA margin of 2.8%, down from 3.0%.
• Capital actions: Net proceeds of approximately $11.6 million from the at-the-market equity issuance program were used to pay down the term loan.

Management Commentary

James Ray, President and Chief Executive Officer, said, "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. North American Class 8 truck production began to improve late in the quarter. We continued to deliver sequential gross margin expansion, reflecting the improvements from our operational efficiency and footprint rationalization initiatives and position CVG to benefit from increased demand."

Mr. Ray continued, "Our Trim Systems & Components segment returned to year-over-year growth despite a lower Class 8 build rate compared with the prior-year quarter, driven in part by new business ramping in our wiper systems business. Global Seating continued to benefit from customer demand growth in international markets. Global Electrical Systems benefited from the ramp of new business, including the Zoox robotaxi program and a more diversified end market mix driving consistent growth. 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."

Angie O'Leary, Interim Chief Financial Officer, added, "During the second quarter, we continued to strengthen our balance sheet and execute our capital allocation priorities. Building on the progress from earlier this year, we further reduced outstanding debt with proceeds from our recently executed at-the-market equity offering program, which we expect to contribute to lower cash interest expense going forward. We also continue to make targeted investments in working capital to support key program launches and the growth opportunities across our businesses. SG&A expense increased from the prior year driven by higher incentive compensation and advisory service fees. We remain focused on driving profitable growth, generating free cash flow, and advancing toward our long-term net leverage objective of approximately two times. 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."

Consolidated Results from Continuing Operations

Second quarter 2026 revenues totaled $195.2 million, compared to $172.0 million in the prior-year period, an increase of 13.5%. The overall revenue increase was primarily due to increased customer demand in international markets and the ramp of previously awarded new business wins across all three segments.

Operating income in Q2 2026 was $1.6 million, up $0.8 million compared to the prior-year period. Adjusted operating income was $2.6 million, compared to $1.9 million in the prior-year quarter. The increase in adjusted operating income was primarily attributable to higher sales and improved gross margin performance, partially offset by higher SG&A expense driven by higher incentive compensation and advisory service fees.

Interest associated with debt and other expenses was $2.9 million in Q2 2026 versus $2.3 million in Q2 2025, with the increase attributable to higher interest rates.

Net loss from continuing operations was $8.7 million, or $(0.25) per diluted share, compared to a net loss of $4.1 million, or $(0.12) per diluted share, in the prior-year period. The current-quarter net loss includes a $3.4 million pre-tax warrant liability revaluation expense. Adjusted net loss from continuing operations was $4.6 million, or $(0.13) per diluted share, compared to $2.9 million, or $(0.09) per diluted share.

As of June 30, 2026, the company had $24.8 million of outstanding borrowings on its U.S. revolving credit facility and $2.9 million outstanding on its China credit facility. The company held $36.0 million in cash and had $91.2 million of availability from the credit facilities (subject to customary borrowing base and other conditions), resulting in total liquidity of $127.2 million.

Second Quarter 2026 Segment Results

Global Seating Segment. Revenues were $80.0 million, compared to $74.5 million in the prior-year period, an increase of 7.5%, driven primarily by increased customer demand in international markets. Operating income was $3.0 million, compared to $2.7 million, an increase of $0.3 million, driven by higher sales and improved gross margin performance. Adjusted operating income was $4.0 million, compared to $3.1 million in the prior-year period.

Global Electrical Systems Segment. Revenues were $62.0 million, compared to $53.6 million, an increase of 15.8%, primarily from ramping new business wins. The segment's growth includes contributions from the Zoox robotaxi program, positioning CVG within the autonomous mobility supply chain alongside its core commercial vehicle business. Operating income was $1.7 million, compared to $0.7 million in the prior-year period, with the increase primarily attributable to higher revenues.

Trim Systems and Components Segment. Revenues were $53.2 million, compared to $43.9 million, an increase of 21.1%, primarily due to higher sales volume from increased customer demand in North America, including improved product mix. Operating income was $2.2 million, compared to $0.1 million in the prior-year period, with the increase primarily attributable to higher demand and improved operational efficiencies.

Outlook

CVG updated its full-year 2026 outlook based on current market conditions. This outlook reflects, among other factors, current industry forecasts for North America Class 8 truck builds. According to ACT Research, 2026 North American Class 8 truck production is expected to reach 274,111 units, up 9% versus the 2025 actual Class 8 truck builds of 251,251 units. The outlook for the Construction end market reflects mid-single-digit growth in 2026. The combination of recovering Class 8 production volumes, ongoing new program ramps, and the company's footprint rationalization efforts underpins management's decision to raise guidance.

A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to the release.

Conference Call

A conference call to discuss the press release is scheduled for Tuesday, August 4, 2026, at 8:30 a.m. ET. Management intends to reference the Q2 2026 Earnings Call Presentation during the call. To participate, dial (833) 461-5787 using conference code 592968497. International participants should dial (585) 542-9983 using the same conference code. The call is being webcast and can be accessed through the "Investors" section of CVG's website at ir.cvgrp.com, where it will be archived and available for replay for one year.

Company Contacts

• Michelle Hards, Vice-President, Investor Relations / Corporate Financial Planning & Analysis, CVG — IR@cvgrp.com
• Ross Collins or Nathan Skown, Alpha IR Group — CVGI@alpha-ir.com

About CVG

CVG is a global provider of systems, assemblies, and components to commercial vehicle and electric vehicle markets worldwide. The company delivers solutions to design, engineering, and manufacturing challenges. Additional information is available at www.cvgrp.com.

Forward-Looking Statements

This press release contains forward-looking statements subject to risks and uncertainties. These statements often include words such as "believe," "anticipate," "plan," "expect," "intend," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions. Forward-looking statements may address the company's expectations regarding plans to improve financial results; the future of its end markets, including global commercial vehicle and electric vehicle markets; changes in North America Class 8 and Class 5-7 truck build rates; performance of the global construction and agricultural equipment businesses; the company's strategic plans; competition; volatility and disruption to the global economic environment, including supply chain constraints, inflation, labor shortages, tariffs and counter-measures; financial covenant compliance; anticipated effects of acquisitions or divestitures; production of new products; plans for capital expenditures; and the company's financial position.

These statements are based on assumptions the company has made in light of its experience, historical trends, current conditions, expected future developments, and other factors it considers appropriate. Actual results may differ materially due to risks and uncertainties, including those included in the company's filings with the SEC. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, unanticipated events, or changes to future operating results over time.

Other Information

Throughout this document, certain numbers in the tables or elsewhere may not sum due to rounding. Rounding may also have impacted the presentation of certain year-over-year percentage changes. The reported tax provision was adjusted for the tax effect of special charges at 25%.

Use of Non-GAAP Measures

This earnings release contains financial measures not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). In general, the non-GAAP measures exclude items that (i) management believes reflect the company's multi-year corporate activities, or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate performance, engage in financial and operational planning, and determine incentive compensation.

Management provides these non-GAAP measures to investors as supplemental metrics to assist in assessing the effects of items and events on the company's financial and operating results and in comparing performance to competitors and comparable reporting periods. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP.