Commercial Vehicle Group (NASDAQ: CVGI) reported second-quarter revenue of $195.2 million, a 13.5% increase from $172.0 million in the prior-year period. The growth was driven by increased demand in international markets and the ramp-up of new business wins across all three segments.

Despite top-line expansion, adjusted EBITDA edged up to $5.4 million from $5.2 million, with adjusted EBITDA margin contracting 20 bps to 2.8%. Higher incentive compensation and foreign exchange headwinds offset gains in gross margin efficiency.

Segment performance and margin trends

Revenue growth was broad-based, with the Trim Systems and Components segment leading percentage growth at 21.1%. The Global Electrical Systems segment grew 15.8%, aided by the ramp-up of the Zoox robotaxi program and wins in the EMEA region. Global Seating revenues rose 7.5% on international demand.

Adjusted gross margin improved to 12.9%, up 90 bps year over year and 70 bps sequentially. Management attributed this improvement to operational efficiency initiatives and operating leverage from higher volumes.

Balance sheet and guidance updates

The company reduced its net leverage ratio to 3.3 times from 4.1 times at the end of FY25. This deleveraging was supported by $14.6 million in total debt paydown since the start of the fiscal year, funded by an at-the-market equity program and a sale-leaseback transaction. Interest expense rose to $2.9 million due to higher rates following a refinancing completed in Q2FY25.

Free cash flow was an outflow of $1.4 million, compared to an inflow of $17.3 million in the prior-year period. Management cited higher working capital investment required to support revenue growth and new business launches.

What the numbers show

A divergence exists between gross margin expansion and EBITDA margin contraction. While adjusted gross margin expanded by 90 bps, adjusted EBITDA margin fell by 20 bps. This indicates that SG&A expenses grew faster than revenue, specifically driven by higher incentive compensation tied to stock price performance and improved financial results. Consequently, operational efficiencies at the production level have not yet fully translated into bottom-line profit improvement due to these fixed-cost pressures.

Outlook

For FY26, Commercial Vehicle Group raised its revenue guidance to $725–$755 million and adjusted EBITDA guidance to $26–$31 million. This implies approximately 14% revenue growth and 60% EBITDA growth over FY25 results at the midpoint. The company expects continued growth in Class 8 truck production and further ramp-ups in electrical systems.

Commercial Vehicle Group Inc (NASDAQ: CVGI) appointed Angie O'Leary as Executive Vice President and Chief Financial Officer, effective August 6, 2026. The Board of Directors confirmed the appointment on August 10, 2026, transitioning O'Leary from her interim role which began in March 2026. This move stabilizes the finance leadership at the diversified industrial products and services company, ensuring continuity in financial strategy and reporting for its global commercial vehicle and electric vehicle markets.

O'Leary brings extensive internal knowledge to the permanent position, having joined Commercial Vehicle Group in 2020. Prior to serving as Interim CFO, she held the positions of Senior Vice President, Corporate Controller, and Chief Accounting Officer. Her promotion reflects the Board's confidence in her ability to lead the finance organization after demonstrating strong performance during the interim period.

James Ray, President and Chief Executive Officer of Commercial Vehicle Group, cited O'Leary's exceptional leadership and commitment to the business as key factors in the decision. He noted that her performance over the past several months reinforced confidence in her ability to drive the company's long-term success. Ray emphasized that O'Leary has played a critical role in strengthening financial processes and supporting strategic initiatives throughout her tenure.

In her new capacity, O'Leary will oversee the company's global finance organization. Her responsibilities include financial planning and analysis, accounting, treasury, tax, investor relations, and financial reporting. She expressed excitement about partnering with Ray and the broader leadership team to execute the company's strategy and create value for stakeholders.

Leadership Transition Details

The following table outlines the timeline of Angie O'Leary's roles within Commercial Vehicle Group:

O'Leary's deep understanding of CVG's global operations and strategic priorities positions her to continue the financial improvements initiated during her time as Corporate Controller. The appointment ensures that the finance function remains aligned with the company's growth objectives in both traditional commercial vehicle and emerging electric vehicle sectors.