NASDAQ$CVGI

Commercial Vehicle Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong quarterly revenues and improved financial results driven by strategic execution and operational excellence.

CVG reported strong second quarter results with revenues of $262.2 million, up 4.5% year-over-year. EPS was $0.30, and adjusted EBITDA was $20.8 million, or 7.9% of revenue. The company's strategy execution and operational excellence drove improved results.

  • Revenues increased by 4.5% to $262.2 million, primarily driven by strong price realization.
  • Operating income increased by 156.0% to $15.9 million, with adjusted operating income up 106.2% to $16.7 million.
  • Net income increased to $10.1 million, or $0.30 per diluted share, with adjusted net income at $10.7 million, or $0.32 per diluted share.
  • Adjusted EBITDA increased by 67.7% to $20.8 million, with an adjusted EBITDA margin of 7.9%.

Headline financials

Total Revenue

$262M

Previous: $251M+4.5%
EPS (adj)

$0.32

Previous: $0.13+146.2%
Adjusted EBITDA Margin

7.9%

Previous: 4.9%+61.2%
Capital Expenditures

-$9.18M

Previous: -$8.62M-6.5%
Free Cash Flow

$961K

Previous: -$6.13M+115.7%
Net Income

$10.1M

Previous: $2.49M+308.0%
Operating Income

$15.9M

Previous: $6.23M+156.0%
Gross Profit

$38.4M

Previous: $21.9M+75.5%
Cash & Equivalents

$42.4M

Previous: $28.5M+48.9%
Total Assets

$500M

Previous: $557M-10.1%
Stock-Based Comp

-$245K

Previous: $1.7M-114.4%

Revenue & EPS history

CVG · Revenue · Quarterly

$262M

Q2 2023+4.5%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CVG · $63.6M total across 1 segment · Q2 2023

  • Global Electrical Systems
    $63.6M+34.4%

Forward guidance

CVG expects to deliver record revenues in 2023 and anticipates full year Adjusted EBITDA margins to show significant expansion versus last year, based on the current vehicle production outlook for the second half of the year. The company also believes it is on track to deliver its 2027 targets of $1.5 billion in revenue and 9% EBITDA margin.

Tailwinds

  • On track to deliver record revenues in 2023
  • Expects full year Adjusted EBITDA margins to show significant expansion versus last year
  • Electrical Systems plant expansions are on track
  • Aldama, Mexico plant is open and ramping up production
  • On track to deliver 2027 targets of $1.5 billion in revenue and 9% EBITDA margin

Headwinds

  • Customer demand decrease is expected to continue in the third quarter for Industrial Automation Segment
  • Volatility in and disruption to the global economic environment
  • Changes in the Class 8 and Class 5-7 North America truck build rates
  • Performance of the global construction equipment business
  • Competition faced by the Company

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+7.1%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+32.0%

Q2 2020

Best reaction

-23.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%+20.0%+29.9%
Q4 2026+25.5%+123.5%+142.0%
Q3 2025+0.0%+2.0%+8.7%
Q1 2025+14.7%+60.0%+56.7%
Q4 2024-3.8%-15.6%-50.5%
Q3 2024-20.3%-15.9%-23.6%
Q2 2024-17.6%-28.8%-31.7%
Q1 2024-6.4%-5.9%-9.2%
Q4 2023-8.2%-7.5%-3.7%
Q3 2023-10.9%-15.5%-0.9%
Q2 2023+8.9%-2.8%-12.3%
Q1 2023+18.5%+36.7%+32.5%
Q4 2022-12.7%-10.7%-18.7%
Q3 2022+4.5%+21.1%+48.8%
Q2 2022+0.7%-2.6%-17.2%
Q1 2022+1.5%-3.5%-3.2%
Q4 2021-1.8%+7.5%+7.9%
Q3 2021-10.8%-11.7%-17.0%
Q2 2021+2.7%+5.0%+11.2%
Q1 2021+7.4%+17.0%+0.6%
Q4 2020+0.5%+7.1%-0.6%
Q3 2020+4.9%+9.3%+31.8%
Q2 2020+32.0%+48.1%+59.9%
Q1 2020+6.1%+21.9%+64.5%
Q4 2019-23.8%-40.7%-53.3%
Q3 2019-4.6%-5.0%-9.3%
Q2 2019-7.3%-8.4%-22.6%
Q1 2019-6.5%-16.1%-27.7%
Q4 2018+4.4%+0.8%+7.4%
Q3 2018-1.4%-2.1%-5.3%
Q2 2018+24.0%+26.8%+32.5%
Q1 2018+27.4%+19.8%+15.1%
Q4 2017-19.2%-21.3%-34.2%
Q3 2017+21.6%+20.1%+32.1%
Q2 2017-21.4%-28.7%-25.2%
Q1 2017-2.5%+10.5%-0.1%
Q4 2016-2.3%-4.4%+13.1%
Q3 2016+1.7%+4.1%+12.9%
Q2 2016+7.7%+9.7%+37.2%
Q1 2016+12.8%
Q4 2015-9.2%
Q3 2015-6.7%
Q2 2015-12.3%
Q1 2015+3.0%
Q4 2014+11.5%
Q3 2014-1.0%
Q2 2014-0.5%
Q1 2014-6.4%
Q4 2013+2.2%
Q3 2013-5.3%
Q2 2013-7.7%
Q1 2013+3.6%
Q4 2012-4.8%
Q3 2012+4.3%
Q2 2012-8.6%
Q1 2011-2.3%
Q1 2012+4.5%
Q4 2009+5.5%
Q4 2011+5.5%
Q3 2011+19.2%
Q3 2010+19.2%
Q4 2010-12.3%
Q2 2010-12.3%
Q2 2011-12.3%
Q1 2010+8.0%

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