Company: CVGI
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-051174
Chunk: 98

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 98
---
 respectively. The increase in interest expense was primarily attributed to higher weighted average margins on debt balances, partially offset by the impact of lower average debt balances in the nine months ended September 30 2025.

Loss on extinguishment of debt. Loss on extinguishment of debt reflects the write-off of deferred financing fees related to early repayment of the prior revolver of $0.5 million.

Provision (benefit) for Income Taxes. Income tax expense of $4.5 million and benefit of $1.1 million were recorded for the nine months ended September 30, 2025 and 2024, respectively. The primary driver in the effective tax rate change is the Company's losses in the U.S. while maintaining its full valuation allowance position on U.S. deferred tax assets.  

Net Income (loss) from continuing operations. Net loss from continuing operations was $14.1 million for the nine months ended September 30, 2025 compared to net loss of $0.7 million for the nine months ended September 30, 2024. The decrease is attributable to the factors noted above.

Segment Results

Global Seating Segment Results 

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

The table below sets forth certain Global Seating Segment operating data for the nine months ended September 30, (dollars are in thousands):

 20252024$ Change% ChangeRevenues$216,574 $239,844 $(23,270)(9.7)%Gross profit27,537 28,983 (1,446)(5.0)Selling, general & administrative expenses 21,092 25,628 (4,536)(17.7)Operating income6,445 3,355 3,090 92.1

Revenues. The decrease in Global Seating Segment revenues of $23.3 million was primarily driven by decreased customer demand in North America.

Gross Profit. The decrease in gross profit of $1.4 million was primarily attributable to lower freight costs and improved operational efficiency. The decrease in cost of revenues was driven by a decrease in raw material and purchased component costs of $18.3 million, or 14.0%, and a decrease in labor and overhead expenses of $3.2 million, or 4.0%. 

As a percentage of revenues, gross profit margin was 12.7% for the nine months ended