CVGI Q1 2026 Earnings Call Transcript

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DATE

Wednesday, May 6, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — James Ray

• Interim Chief Financial Officer — Angela O'Leary

Full Conference Call Transcript

James Ray: Thank you, Michelle. Good morning, and acknowledgment to each those who joined the call. Before turning to the results, I'm excited to invited Angie O'Leary, our Interim Chief Financial Officer, to her archetypal net call. Angie brings extended cognition of CVG to the relation and her extended acquisition volition beryllium captious arsenic we look to prolong our existent momentum going forward. Please crook your attraction to the supplemental net presentation, starting connected Slide 3. As we person highlighted connected this slide, CVG delivered year-over-year gross maturation driven by beardown results wrong our Global Electrical Systems and Global Seating segments. This is simply a testament to our efforts to trim attraction of cyclical North American Class 8 extremity markets.

Combined with the actions taken successful caller quarters to amended operational efficiency, CVG is good positioned to capitalize connected the betterment successful our extremity markets that we are opening to experience. During the quarter, we delivered adjusted gross borderline of 12.2%, up 140 ground points compared to past twelvemonth and 250 ground points sequentially from the 4th fourth of 2025. The continued year-over-year and sequential betterment successful profitability was again driven by our absorption connected improvements successful operational efficiency. One of our stated objectives implicit the past twelvemonth has been to turn our Global Electrical Systems segment. And our occurrence is evidenced by the 14% maturation successful conception revenues successful the quarter.

This maturation has been driven by the ramp of antecedently mentioned programs crossed the North American and planetary markets. Our Aldama, Mexico and Tangier, Morocco facilities, we person mentioned connected erstwhile calls, are serving the increasing request successful this segment. Their utilization should summation further arsenic we ramp accumulation nether our Zoox declaration and different caller concern wins, which is expected to supply a maturation tailwind starting successful the 2nd fractional of this year. Another item successful the past 4th was the execution of a sale-leaseback transaction of our Vonore, Tennessee manufacturing facility. This installation is strategical for our Global Seating business, and we expect it to enactment aboriginal growth.

The transaction, which we volition sermon successful much item aboriginal successful the call, provided america with currency that we utilized to wage down indebtedness by $12.8 cardinal since the extremity of 2025, facilitating a nett leverage ratio simplification from 4.1x astatine the extremity of 2025 to 3.8x astatine the extremity of the archetypal quarter. Our extremity remains to bring leverage backmost down to the 2x level implicit time.