Slides
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Q3-2025 Earnings Presentation James Ray – President & Chief Executive Officer Andy Cheung – Executive Vice President & Chief Financial Officer November 11, 2025
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Q3 2025 Earnings Presentation - 2 These slides contain forward-looking statements that are 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. In particular, these slides may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction and agricultural equipment business, the Company’s prospects in the wire harness and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment including global supply chain constraints, inflation and labor shortages, tariffs and counter-measures, financial covenant compliance, anticipated effects of acquisitions, production of new products, plans for capital expenditures, and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in these slides relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements. See slide 13 for use of non-GAAP financial measures. Forward Looking Statements and Non-GAAP Financial Measures
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Q3 2025 Earnings Presentation - 3 Q3 2025 Overview OPERATIONAL EFFICIENCY & HEADCOUNT REDUCTION • Lower cost footprint to support future growth in EMEA and Asia-Pacific • Removed additional ~170 roles during the quarter, bringing YTD decrease to ~7% of YE2024 headcount REVENUE $152.5 MILLION ADJUSTED EBITDA $4.6 MILLION ADJUSTED OPERATING INCOME $1.6 MILLION ADJUSTED EPS ($0.14) PER DILUTED SHARE Q3 FINANCIAL OVERVIEW Q3 HIGHLIGHTS Note: US GAAP net loss was ($6.8M) for Q3 2025. GAAP loss per share was ($0.20) for Q3 2025. IMPROVED GROSS MARGINS 12.1% ADJ. GROSS MARGIN • Up 10bps sequentially from Q2’25 and 370bps from Q4’24 • Improved profitability driven by operational efficiency initiatives STRONG YTD FREE CASH FLOW • New business wins contribution driving return to top-line growth • Year-over-year and sequential margin expansion for this segment • Improvement of $14 million over prior year • Driven by improved working capital performance and lower capital spending GLOBAL ELECTRICAL SYSTEMS IMPROVEMENT $25 MILLION IN YTD FCF
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• Gross margin up 10 basis points sequentially, despite a decline of ~11% in revenue compared to Q2’25; up 370 basis points since Q4’24, driven by continued operational efficiency improvements: ✓ Freight o Reduced expedited shipments o Optimizing terms with shippers o Improving lead times and order quantities ✓ Labor o Flexing direct labor to align with customer volume changes o Optimizing production across facilities to balance lower cost and growth ✓ Operation o Improved quality and delivery performance o New segmentation allows optimization of overhead structure Q3 2025 Earnings Presentation - 4 Sequential Gross Margin Improvement Sequential Improvement 8.4% 10.8% 12.0% 12.1% $163.3 $169.8 $172.0 $152.5 0% 2% 4% 6% 8% 10% 12% 14% 140 150 160 170 180 190 200 Q4'24 Q1'25 Q2'25 Q3'25 Adjusted Gross Margin (%) Revenue ($M) +120bp Revenue/Margin Trends Key Drivers Note: totals may not match due to rounding +240bp +10bp
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Third Quarter 2025 Results Year-Over-Year Performance Commentary • Revenue down 11.2% year-over-year in Q3 due to softening in customer demand across Global Seating and Trim Systems & Component segments, primarily in North America • Adjusted EBITDA up 7.0% year-over-year to $4.6 million due to operational efficiencies and reductions in SG&A expense • Adjusted EPS down $0.13 year-over-year due to lower revenue, higher interest, as well as higher taxes, offset by improved margins • Year-to-date free cash flow of $25.0 million compared to $11.4 million in the prior year period: ✓ Prior year period includes $27.4 million in asset sale proceeds ✓ Improvement of $41.0 million (ex-asset sale proceeds) driven by improved working capital and reduced capital expenditures • Net leverage at 4.9x, up from 4.8x at the end of Q2’25 CONSOLIDATED RESULTS (Continuing Operations) GAAP Measures Three Months Ended Sep 30 Nine Months Ended Sep 30 ($ in millions except for share information) 2025 2024 2025 2024 Revenue $ 152.5 $ 171.8 $ 494.2 $ 560.1 Operating Income (1.1) (1.1) 1.1 4.5 Operating Income Margin (0.7%) (0.6%) 0.2% 0.8% Diluted EPS (0.20) (0.03) (0.42) (0.02) Non-GAAP Measures Three Months Ended Sep 30 Nine Months Ended Sep 30 ($ in millions except for share information) 2025 2024 2025 2024 Adjusted EBITDA $ 4.6 $ 4.3 $ 15.6 $ 22.3 Adjusted EBITDA Margin 3.0% 2.5% 3.1% 4.0% Adjusted Diluted EPS (0.14) (0.01) (0.30) 0.12 Free Cash Flow (3.4) 17.1 25.0 11.4 Q3 2025 Earnings Presentation - 5
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239.8 216.6 YTD'24 YTD'25 4.9 8.3 YTD'24 YTD'25 Q3 2025 Earnings Presentation - 6 Global Seating • Q3 Revenue declined 10% year-over-year due to lower sales volume as a result of decreased customer demand • Q3 adjusted OI increased $3.7 million year-over-year primarily attributable to improved gross margin performance and lower SG&A expenses ✓ Actions taken on cost and footprint in 2024 drive margin expansion in the face of lower revenues • Entered into co-development with an OEM on Next-Gen seat development • Improved aftermarket seat order rates throughout Q3 and into Q4 • Portfolio actions allow continued focus on strengthening performance of the Seating business Year-Over-Year Performance Commentary Sales and Adjusted Operating Income 76.6 68.7 Q3'24 Q3'25 -10% Revenue ($mm) (0.8) 2.9 Q3'24 Q3'25 +3.7 Adjusted OI ($mm) Off-Highway Seats Next-Gen Seat Q3 YTD -10% +3.4
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Q3 2025 Earnings Presentation - 7 Global Electrical Systems Year-Over-Year Performance Commentary • Q3 revenue up 6% year-over-year due primarily to the ramp of new business wins ✓ Benefiting from ramp of previously awarded program wins in North America and EMEA • Q3 adjusted OI increased $1.6 million in the quarter primarily attributable to higher sales volumes • Benefitting from prior restructuring actions taken to align headcount with current demand outlook • EMEA Team received Caterpillar's 2025 Supplier Excellence Award Sales and Adjusted Operating Income 46.7 49.5 Q3'24 Q3'25 +6% Revenue ($mm) (0.2) 1.4 Q3'24 Q3'25 +1.6 Adjusted OI ($mm) Power Distribution Box High Voltage Product Line Q3 YTD 159.1 153.5 YTD'24 YTD'25 2.2 2.6 YTD'24 YTD'25 -4% +0.4
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Q3 2025 Earnings Presentation - 8 Trim Systems and Components • Q3 revenue decreased 29% year-over-year primarily as a result of lower customer demand in North America (key geography for this segment) ✓ ACT Class 8 production -39% year-over-year in Q3 • Q3 adjusted OI decline of $4.4 million primarily attributable to lower demand levels • Implementing headcount reductions to further right-size business to adjust to lower NA Class 8 customer demand • Further operational improvements identified and in process of implementation ✓ Direct and indirect spend reductions ✓ Supplier workshopping to reduce costs • New wiper program launched in Q3’25 Year-Over-Year Performance Commentary Sales and Adjusted Operating Income 48.4 34.3 Q3'24 Q3'25 -29% Revenue ($mm) 4.1 (0.3) Q3'24 Q3'25 (4.4) Q3 Sales and Adjusted Operating Income Interior Trim Plastics YTD 12.7 1.4 YTD'24 YTD'25 (11.3) Adjusted OI ($mm) 161.1 124.1 YTD'24 YTD'25 -23% Wipers
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Construction/Ag 20 – 25% Bus/Auto/Other 15 – 20% Aftermarket & Accessories 5 – 10% Medium Truck 5 – 10% Heavy Truck 40 - 45% Q3 2025 Earnings Presentation - 9 Key CVG Markets Update CVG Revenue by End Market* • Construction equipment end market seeing global weakening with year over year volumes declining ~5-10%*, due to higher interest rates, weaker housing starts, and slower commercial real estate activity. • Agriculture equipment end market experiencing year over year softening of ~5-15%*, due to higher interest rates and lower agricultural commodity prices. • CVG remains optimistic on these markets given replacement needs and underlying secular trends, with an anticipated recovery in end market demand in 2026 and beyond. Construction and Agricultural Equipment Market Outlook *Source: Customers’ estimates 315 340 332 239 205 274 2022 2023 2024 2025F 2026F 2027F ACT Research is forecasting a weaker 2025 and 2026 followed by a strong recovery in 2027 Source: ACT Research, dated October 10th -2% -28% -14% NA Class 8 Heavy Truck Build Outlook Units in Thousands +34% * Based on FY 2024 Results
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Q3 2025 Earnings Presentation - 10 Global Electrical Systems Growth • Expect segment revenue to increase high single-digit to low double-digit percentage in 2026 ✓ Driven by continued ramp up of new business, accelerating the utilization of additional capacity • Improved business model to drive growth and reduce volatility ✓ Strengthen core markets through expanding wallet share ✓ Accelerate into markets with strong secular growth drivers ✓ Expand ES differentiated solutions to increase content per vehicle (i.e., high voltage wire harness, power distribution boxes) • Ramp up of previously announced new wins ✓ Working with partners to establish a leading position in low-voltage wire harnesses for the autonomous vehicle market in North America ✓ Wire harness solutions for European OEMs across various markets • Margin improvement from ramp up of our new facilities in Aldama, Mexico and Tangier, Morocco ✓ Improved utilization in Q3’25 and continue ramping into 2026 Positioned for Strong Growth and Margin Expansion in Global Electrical Systems Aldama, Mexico Tangier, Morocco
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Q3 2025 Earnings Presentation - 11 Improved Execution in an Uncertain Environment Taking Actions to Best Position CVG for Success in a Dynamic Market Environment • Delivering Cash Flow Improvement and Cost Reduction • Working capital efficiency ✓ Targeting $30 million improvement in 2025, focused on reductions in inventory and accounts receivable ✓ Slight build in Q3, expect to reduce working capital in Q4 • SG&A reduction – continued focus to align SG&A with current revenue base • Capital expenditure reduction – expect 2025 around 1.5% of revenue versus 2.0% historical run rate • Results Continue to be Supported by Strategic Actions Taken in 2024 • Lower decremental margins due to lower cost structure and efficiency gains • Higher operating leverage when markets recover • Collaboration with Customers • Improving our line of sight to customers’ fluid production schedules and adjusting our cost structure as needed • Executing tariff recovery and mitigation terms with our customers
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Q3 2025 Earnings Presentation - 12 • Class 8 truck build rate of 239k (down ~28% y/y); continued weakness in construction and agricultural markets offset by ramp of new business in Electrical Systems ✓ H2’25 Class 8 truck build rate down ~37% sequentially versus H1’25, according to ACT ✓ Focus on operational efficiency and reducing SG&A to maintain margins in face of lower demand • Free Cash Flow of at least $30 million expected in 2025 and will be used to pay down debt ✓ Benefit from working capital improvement and capex reduction • Expect net leverage to decline through the end of FY26 FY25 CVG Outlook ($M) Metric 2024 Results Prior 2025 Outlook Current 2025 Outlook Net Sales $723.3 $650 - $670 $640 - $650 Adjusted EBITDA $23.2 $21 - $25 $17 - $19 Free Cash Flow $12.2 > $30 > $30 Guidance reflects continued operational improvement and updated end market outlooks Updated Fiscal 2025 Outlook
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Q3 2025 Earnings Presentation - 13 Appendix
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This earnings presentation contains financial measures that are 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 the Company’s performance, engage in financial and operational planning and to determine incentive compensation. Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on the Company’s financial and operating results and in comparing the Company’s performance to that of its competitors and to 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. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The financial results calculated in accordance with GAAP and reconciliations to those financial statements are set forth in the supplemental information. Q3 2025 Earnings Presentation - 14 Non-GAAP Financial Measures
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Q3 2025 Earnings Presentation - 15Note: totals may not match due to rounding Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Gross Profit 16.0 19.5 17.8 13.1 Restructuring 2.4 1.1 0.5 0.6 Adjusted Gross Profit 18.4 20.6 18.3 13.6 % of Revenues 12.1% 12.0% 10.8% 8.4%
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Q3 2025 Earnings Presentation - 16Note: totals may not match due to rounding Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q3 2025 Q3 2024 YTD 2025 YTD 2024 Operating Income/(Loss) (1.1) (1.1) 1.1 4.5 Restructuring 2.7 4.2 4.5 9.8 Gain on sale of fixed assets - (3.5) - (3.5) Adjusted Operating Income 1.6 (0.4) 5.7 10.7 % of Revenues 1.1% (0.2)% 1.2% 1.9% Net Income/(Loss) (6.8) (0.9) (14.1) (0.7) Interest Expense 4.1 2.4 8.9 7.0 Provision (benefit) for income taxes 0.7 (1.5) 4.5 (1.1) Depreciation Expense 3.6 3.6 10.5 10.4 Amortization Expense 0.1 0.1 0.4 0.5 EBITDA 1.7 3.7 10.3 16.0 % of Revenues 1.1% 2.1% 2.1% 2.9% EBITDA Adjustments Restructuring 2.7 4.2 4.5 9.8 Gain on sale of fixed assets - (3.5) - (3.5) Loss on extinguishment of debt - - 0.5 - Warrant fair value adjustment 0.3 - 0.3 - Adjusted EBITDA 4.6 4.3 15.6 22.3 % of Revenues 3.0% 2.5% 3.1% 4.0%
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Q3 2025 Earnings Presentation - 17Note: totals may not match due to rounding Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS (in millions except for share information) Q3 2025 Q3 2024 YTD 2025 YTD 2024 Net income/(Loss) from continuing operations (6.8) (0.9) (14.1) (0.7) Operating income (loss) adjustments 2.7 0.7 4.5 6.2 Loss on early extinguishment of debt - - 0.5 - Warrant fair value adjustment 0.3 - 0.3 - Adjusted (benefit) provision for income taxes (0.7) (0.2) (1.3) (1.6) Adjusted net income (loss) from continuing operations (4.6) (0.4) (10.1) 3.9 Diluted EPS (0.20) (0.03) (0.42) (0.02) Adjustments to diluted EPS 0.06 0.02 0.12 0.14 Adjusted diluted EPS (0.14) (0.01) (0.30) 0.12
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Q3 2025 Earnings Presentation - 18Note: totals may not match due to rounding Segment GAAP to Non-GAAP QTD For the Three Months Ended September 30, 2025 (in millions) Global Seating Global Electrical Systems Trim Systems and Components Corporate Total Operating Income/(Loss) 1.4 0.8 (0.9) (2.4) (1.1) Restructuring 1.5 0.6 0.6 - 2.7 Adjusted Operating Income/(Loss) 2.9 1.4 (0.3) (2.4) 1.6 % of Revenue 4.3% 2.8% (0.9)% - 1.1% For the Three Months Ended September 30, 2024 (in millions) Global Seating Global Electrical Systems Trim Systems and Components Corporate Total Operating Income/(Loss) (1.5) (1.5) 5.4 (3.5) (1.1) Restructuring 0.8 1.3 2.2 - 4.2 Gain on Sale of Fixed Assets - - (3.5) - (3.5) Adjusted Operating Income/(Loss) (0.8) (0.2) 4.1 (3.5) (0.4) % of Revenue (1.0)% (0.4)% 8.4% - (0.2)%
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Q3 2025 Earnings Presentation - 19Note: totals may not match due to rounding Segment GAAP to Non-GAAP QTD For the Nine Months Ended September 30, 2025 (in millions) Global Seating Global Electrical Systems Trim Systems and Components Corporate Total Operating Income/(Loss) 6.4 1.0 0.5 (6.8) 1.1 Restructuring 1.9 1.6 0.9 0.1 4.5 Adjusted Operating Income/(Loss) 8.3 2.6 1.4 (6.7) 5.7 % of Revenue 3.8% 1.7% 1.2% - 1.2% For the Nine Months Ended September 30, 2024 (in millions) Global Seating Global Electrical Systems Trim Systems and Components Corporate Total Operating Income/(Loss) 3.4 (1.6) 12.0 (9.2) 4.5 Restructuring 1.6 3.8 4.3 0.1 9.8 Gain on Sale of Fixed Assets - - (3.5) - (3.5) Adjusted Operating Income/(Loss) 4.9 2.2 12.7 (9.1) 10.7 % of Revenue 2.1% 1.4% 7.9% - 1.9%
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Q3 2025 Earnings Presentation - 20Note: totals may not match due to rounding Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q3 2025 Q3 2024 YTD 2025 YTD 2024 CONTINUING OPERATIONS Cash Flow from Operations $ (1.7) $ (4.2) $ 32.0 $ (2.3) Capital Expenditures1 (1.8) 1.6 (7.0) (9.3) Proceeds From Sale of Business - 19.8 - 23.0 Free Cash Flow from Continuing Operations (3.4) 17.1 25.0 11.4 DISCONTINUED OPERATIONS Cash Flow from Operations $ - $ (12.9) $ 0.3 $ (4.6) Capital Expenditures1 - (0.4) - (0.8) Free Cash Flow from Discontinued Operations - (13.3) 0.3 (5.4) TOTAL COMPANY Cash Flow from Operations $ (1.7) $ (17.1) $ 32.3 $ (6.8) Capital Expenditures1 (1.7) 1.2 (7.0) (10.1) Proceeds From Sale of Business - 19.8 - 23.0 Free Cash Flow (3.4) 3.9 25.3 6.0 1Net of proceeds from disposal/sale of property, plant, and equipment
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Q3 2025 Earnings Presentation - 21Note: totals may not match due to rounding Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net Income/(Loss) (34.0) (3.1) (4.1) (6.8) Interest Expense 2.2 2.5 2.3 4.1 Provision (benefit) for income taxes 28.6 2.1 1.7 0.7 Depreciation Expense 3.5 3.4 3.5 3.6 Amortization Expense 0.1 0.1 0.1 0.1 EBITDA (0.6) 5.1 3.6 1.7 EBITDA Adjustments Restructuring 1.0 0.7 1.1 2.7 (Gain) loss on sale of fixed assets - - - - Loss on Early Extinguishment of Debt 0.5 - 0.5 - Warrant fair value adjustment - - - 0.3 Adjusted EBITDA 0.9 5.8 5.2 4.6 Adjust EBITDA (TTM) 16.5 Long-Term Debt at End of Quarter 107.3 Current Portion of LT and ST Debt at End of Quarter 5.2 Cash at End of Quarter (31.3) Net Debt at End of Quarter 81.1 Leverage Ratio (Continuing Operations) 4.9x