Commercial Vehicle Group Posts 10.3% Gross Margin, $33.7M Free Cash Flow; Q4 Revenue Down to $154.8M
Commercial Vehicle Group achieved a 10.3% adjusted gross margin, up 190 basis points, generated $33.7 million free cash flow (up $21.5 million) and reduced net debt by over $35 million to cut leverage to 4.1x. Q4 revenue declined to $154.8 million from $163.3 million, adjusted EBITDA fell to $17.8 million and interest expense rose to $4.2 million.
1. Profitability and Cash Flow Improvements
Commercial Vehicle Group raised its adjusted gross margin to 10.3%, a 190 basis point increase year-over-year, and generated $33.7 million in free cash flow, up $21.5 million. The company reduced net debt by over $35 million, lowering its net leverage ratio to 4.1x from 4.7x.
2. Revenue Performance and Segment Results
Consolidated fourth-quarter revenue fell to $154.8 million from $163.3 million, driven by a 22.5% decline in its Trim Systems and Components segment, while Global Electrical Systems rose 13% on program ramp-ups. Adjusted EBITDA dropped to $17.8 million from $23.2 million and Q4 interest expense increased to $4.2 million.
3. Zoox Contract and Production Outlook
The company secured a new contract with autonomous ridesharing developer Zoox and is ramping production at its Aldama, Mexico facility, with volume shipments expected in late Q2. Commercial Vehicle Group is targeting approximately $100 million in new annual business wins, with no significant program terminations scheduled for 2026.