Q2 2026 Commercial Vehicle Group Inc Earnings Call Transcript
Key Points
- Revenue grew year-over-year across all three segments, driven by new business wins and market recovery.
- Adjusted gross margin improved to 12.9%, up 90 basis points year-over-year and 70 basis points sequentially.
- Net leverage ratio reduced from 4.1x at end of 2025 to 3.3x at end of Q2 2026, with a goal of reaching 2x.
- Global Electrical Systems segment revenue grew 15.8% year-over-year, driven by the Zoox program and EMEA wins.
- Raised full-year 2026 revenue and adjusted EBITDA guidance, reflecting strong growth expectations.
- Adjusted EBITDA margin declined 20 basis points year-over-year due to higher SG&A expenses and FX headwinds.
- Net loss widened to $8.7 million in Q2 2026 from $4.1 million in the prior-year period.
- Free cash flow was an outflow of $1.4 million in Q2, versus an inflow of $17.3 million last year, due to working capital investment.
- SG&A expenses increased due to higher incentive compensation tied to stock price and improved financial performance.
- Interest expense rose to $2.9 million from $2.3 million, driven by higher rates from the 2025 refinancing.
Good morning, ladies and gentlemen, and welcome to CVG's second-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the call over to Michelle Hards, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and welcome, everyone, to our second-quarter 2026 conference call. Joining me on the call today are James Ray, President and CEO; and Angie O'Leary, Interim Chief Financial Officer. This morning, we will provide a brief company update as well as commentary regarding our second-quarter 2026 results, after which we will open the call for questions.
As a reminder, this conference call is being webcast, and Q2 2026 earnings call presentation, which we will refer to during this call, is available on our website. Both may contain forward-looking statements, including, but not limited to, expectations for future periods regarding market trends, cost-savings
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