Company: CVGI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022764
Chunk: 28

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 28
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 customer demand. 

Gross Profit. The decrease in 2025 gross profit of $1.8 million was primarily attributable to lower sales volumes and increased freight costs. The decrease in cost of revenues was driven by a decrease in raw material and purchased component costs of $4.1 million, or 9.4%, and a decrease in labor and overhead expenses of $1.6 million, or 5.9%. 

As a percentage of revenues, gross profit margin was 12.4% for the three months ended March 31, 2025 compared to 13.4% for the three months ended March 31, 2024. The decrease in gross profit margin was primarily due to lower sales volumes and increased freight costs. 

23

Selling, General and Administrative Expenses.  SG&A expenses decreased $1.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily as a result of reduced incentive compensation expense and headcount reduction. 

Global Electrical Systems Segment Results 

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

The table below sets forth certain Trim Systems and Components Segment operating data for the three months ended March 31 (dollars are in thousands):

 20252024$ Change% ChangeRevenues$50,453 $58,726 $(8,273)(14.1)%Gross profit3,990 4,825 (835)(17.3)Selling, general & administrative expenses4,306 4,382 (76)(1.7)Operating income (loss)(316)443 (759)NM1

1.Not meaningful

Revenues. The decrease in Global Electrical Systems Segment revenues of $8.3 million was primarily driven by decreased customer demand.

Gross Profit. The decrease in gross profit of $0.8 million was primarily attributable to lower sales volume and unfavorable foreign exchange impacts. The cost of revenues decreased in line with the sales decrease of 14.1%, driven by a decrease in labor and overhead expenses of $5.1 million, or 18.6%; and a decrease in raw material and purchased component costs of $2.3 million, or 8.8%. 

As a percentage of revenues, gross profit margin was 7.9% for the three months ended March 31, 2025