Commercial Vehicle Group, Inc. (CVGI): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of a key supplier to the heavy-duty world, trying to see past the current market softness in trucking and construction. Honestly, looking at Commercial Vehicle Group, Inc.'s (CVGI) model as we head into late 2025, it's a story of balancing legacy strength with a necessary pivot; they are managing a global footprint supporting approximately 6,900 people while guiding for $640 million to $650 million in revenue this year, even as their core OEM customers face headwinds. The real question is whether their integrated systems value proposition and strategic push into EV/Autonomous platforms can successfully offset the near-term pressures in their traditional segments-the full canvas below lays out exactly where the risks and opportunities lie for this operation.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Key Partnerships

You're looking at how Commercial Vehicle Group, Inc. (CVGI) manages its external relationships to keep the wheels turning, especially given the market volatility seen through late 2025. The focus here is on the critical external entities that enable their operations across the new structure of Global Electrical Systems, Global Seating, and Trim Systems and Components.

Strategic suppliers for raw material cost optimization

CVGI actively collaborates with its supplier base to drive down costs, a necessity when facing margin pressure. The company works with key suppliers to implement savings opportunities aimed at total cost improvement. This involves fostering mutually beneficial ideas and shared goals. Furthermore, in response to market conditions, CVGI is engaged in constructive negotiations with customers while simultaneously implementing internal mitigating actions, which include nearshoring, onshoring, and renegotiation with suppliers to preserve margin performance.

The purchasing strategy for Commercial Vehicle Group, Inc. is guided by core values including Continuous Improvement, Innovation, Integrity, and Teamwork.

Major Original Equipment Manufacturers (OEMs) for long-term contracts

The business model relies heavily on deep alignment with major Original Equipment Manufacturers (OEMs) across the commercial vehicle, construction, and agriculture sectors. CVGI supports multiple global manufacturers. The company acknowledges that its customer base is concentrated, meaning the loss of business from a major customer or the discontinuation of a vehicle platform could significantly reduce revenues. OEM customers typically issue blanket purchase orders that cover annual requirements rather than specific product quantities.

The operational alignment is reflected in the new segment structure, which better positions CVGI to serve its customers:

• Global Electrical Systems
• Global Seating
• Trim Systems and Components

Market forecasts influence these partnerships. For instance, the North American Class 8 truck build estimate for the full year 2025 was set at 316,000 units, down from the 2024 actual of 332,382 units, according to ACT Research data referenced in early 2025.

Technology partners in the autonomous vehicle sector

Commercial Vehicle Group, Inc. is a leading supplier of systems, assemblies, and components, including electric vehicle assemblies and electrical wire harnesses, supporting the industry's move toward carbon neutrality. While the search results indicate that the commercial vehicle autonomous driving market is concentrated among major players like Bosch, Continental, and ZF Group, specific named technology partners for CVGI in the autonomous sector as of late 2025 were not detailed in the recent financial disclosures.

CVGI's focus is on adapting its expertise into new areas, including electric vehicles.

Key customers representing approximately 30% of total revenue

While the customer base is known to be concentrated, the specific financial data point identifying a single customer or group of customers accounting for exactly 30% of total revenue is not present in the latest public filings reviewed. The total revenue for the trailing twelve months ending September 30, 2025, was $657.53 million, with Q3 2025 revenue at $152.5 million.

The revenue contribution breakdown across the new segments provides context on customer dependency:

The company is working closely with OEMs to ensure recovery mechanisms are in place, reflecting the tight integration with its primary customer base.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Key Activities

You're looking at the core things Commercial Vehicle Group, Inc. (CVGI) has to do to make its business model work, based on their late 2025 performance snapshot. It's all about making parts, making them efficiently, designing for the future, and managing where those parts come from.

Manufacturing seating, electrical systems, and trim components

Commercial Vehicle Group, Inc. (CVGI) focuses its manufacturing across three main reporting segments as of January 1, 2025: Global Seating, Global Electrical Systems, and Trim Systems and Components. The activity here is directly tied to the health of the heavy-duty truck and construction markets, which saw softness in 2025.

For the third quarter ended September 30, 2025, the revenue breakdown by segment shows the current mix of manufacturing output:

The company is actively managing these manufacturing lines to align with lower demand, especially in the Trim and Components area tied to North American Class 8 truck production.

Driving operational efficiency and cost-out initiatives

This is a major focus area for Commercial Vehicle Group, Inc. (CVGI), especially as revenues declined. Management repeatedly pointed to these efforts as key to maintaining profitability despite volume headwinds. They are working to lower their fixed cost base.

Key metrics reflecting these efficiency drives through Q3 2025 include:

• Adjusted EBITDA for Q3 2025 was $4.6 million, representing a 7.0% increase year-over-year.
• The Adjusted EBITDA margin improved to 3.0% in Q3 2025, up from 2.5% in Q3 2024.
• Gross margin saw sequential expansion for the second consecutive quarter in Q3 2025.
• The target normalized gross margin the CFO mentioned is around 15%.
• The company is focused on generating at least $30 million in free cash flow for the full fiscal year 2025.
• Free cash flow from continuing operations for Q2 2025 was $17.3 million, up significantly from $0.8 million in the prior year, driven by working capital management.

They achieved this through reduced reliance on expedited freight, improved supplier terms, and labor optimization. Honestly, keeping the adjusted EBITDA moving up while revenue drops is a clear sign of cost discipline.

Engineering and design for new vehicle platforms (EV/Autonomous)

While overall market demand softened, Commercial Vehicle Group, Inc. (CVGI) is dedicating resources to engineering and design work tied to future vehicle platforms, primarily within the growing Global Electrical Systems segment. This activity positions them for future revenue streams outside of traditional truck builds.

The success of this activity is already showing up in segment performance:

• The Global Electrical Systems segment revenue grew 6% year-over-year in Q3 2025.
• This growth is credited to the early ramp-up of new programs, including one with a North American autonomous vehicle manufacturer.
• Another key driver is a new program with a European automotive OEM.
• These specific projects are projected to drive high single- to low double-digit percentage sales growth in the Global Electrical Systems segment in the coming year.

The company is managing its investment in this area carefully, as its new credit facility caps maximum consolidated capital expenditures at $20 million in any fiscal year.

Managing a global manufacturing and supply chain footprint

Commercial Vehicle Group, Inc. (CVGI) manages a complex global footprint to serve its diverse customer base, which includes manufacturing in various international locations. This activity involves optimizing plant utilization and managing logistics costs.

The company's operational footprint includes manufacturing locations in:

• United States
• Mexico (ramping up the Aldama facility)
• China
• United Kingdom
• Czech Republic
• Ukraine
• Morocco (new facility opened)
• India
• Australia

Management has been actively rightsizing this footprint and implementing structural cost reductions, particularly in response to the lower North American Class 8 build forecast of 239,000 units for 2025, down from 332,372 units in 2024. Finance: draft 13-week cash view by Friday.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Key Resources

You're looking at the core assets Commercial Vehicle Group, Inc. (CVGI) relies on to deliver its value proposition as of late 2025. These aren't just line items; they are the engines of the operation.

Global manufacturing facilities across multiple continents represent a significant physical asset base, enabling localized supply chains and service delivery worldwide. Commercial Vehicle Group, Inc. expands its presence on five continents.

The physical footprint includes numerous operational sites, with headquarters in New Albany, Ohio, United States.

Proprietary product designs for seating and wire harnesses are critical intellectual property, underpinning the offerings within the new organizational structure. Commercial Vehicle Group, Inc. focuses on three operating divisions as of January 1, 2025: Global Electrical Systems, Global Seating, and Trim Systems and Components.

The company takes pride in developing and manufacturing products in these key areas for domestic and international markets.

• Global Seating product portfolio
• Global Electrical Systems product portfolio
• Trim Systems and Components portfolio

The human capital is substantial, comprising a skilled engineering and direct labor workforce. Commercial Vehicle Group, Inc. total employee count in 2025 is reported as 6,900.

This workforce supports the manufacturing of component systems across its segments.

Financial initiatives highlight a focus on optimizing the balance sheet through efficiency drives. Commercial Vehicle Group, Inc. has a stated working capital reduction initiative targeting $30 million in 2025, focused primarily on inventory and accounts receivable.

Through the first half of 2025, the company realized $12 million in inventory reductions and $11 million in accounts receivable reductions as part of this effort.

The financial targets related to this resource management include:

• Targeted working capital reduction: $30 million
• Realized inventory reduction (H1 2025): $12 million
• Realized accounts receivable reduction (H1 2025): $11 million

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Value Propositions

You're looking at the core value Commercial Vehicle Group, Inc. (CVGI) delivers to its customers, which is really about providing essential, engineered systems when the broader market is facing headwinds. The value proposition centers on deep integration, efficiency gains, and future-proofing through electrical systems, all backed by a global footprint.

Integrated systems for commercial, construction, and agriculture vehicles

Commercial Vehicle Group, Inc. (CVGI) is a global provider of systems, assemblies, and components for the commercial and electric vehicle markets, including those serving the construction and agriculture sectors. The company's product portfolio includes seating systems, plastic components, electrical wire harnesses, mirrors, wipers, and other accessories. The Q3 2025 revenue for the company was reported at $152.5 million, reflecting softening demand in these key end markets, though the company maintains its role as a foundational supplier.

Here's a look at the segment performance as of the third quarter ended September 30, 2025:

Reduced total cost of ownership for OEM customers via efficiency

A key value is helping Original Equipment Manufacturer (OEM) customers manage their total cost of ownership through CVGI's own operational efficiency. The company has been actively pursuing cost discipline to offset volume weakness. For the full year 2025, Commercial Vehicle Group, Inc. (CVGI) is targeting $15 million to $20 million in cost savings. This focus on internal efficiency has shown results; for instance, in Q1 2025, the adjusted gross margin saw a sequential improvement of approximately 240 to 250 basis points compared to Q4 2024.

The overall focus on efficiency is tied to financial targets, including generating at least $30 million in Free Cash Flow for 2025 to support debt paydown.

Low-voltage electrical systems for emerging EV and autonomous platforms

The Global Electrical Systems segment represents the value proposition tied to next-generation platforms. This segment bucked broader market softness in Q3 2025, reporting revenue of $49.5 million, a year-over-year increase of 5.9%, primarily from ramping new business wins. Management anticipates that the ramp-up of new electrical and wiring harness programs specifically for autonomous and traditional vehicle OEMs will drive high single- to low double-digit percentage sales growth in this segment in the coming year.

Global supply chain capability and localized manufacturing support

Commercial Vehicle Group, Inc. (CVGI) supports its global customer base through its worldwide supply chain capabilities, which include manufacturing operations in North America and China. To bolster liquidity and manage the supply chain effectively, the company is aiming for a $30 million reduction in working capital for the full year 2025. This working capital discipline was evident in Q1 2025, where the company achieved $11.2 million in free cash flow from continuing operations, an improvement of $17.7 million year-over-year, driven by better working capital management.

• FY 2025 Revenue Guidance midpoint: $645 million (as of Q3 2025 update).
• FY 2025 Adjusted EBITDA Guidance midpoint: $18 million (as of Q3 2025 update).
• Net debt reduction achieved in Q1 2025: $11.7 million compared to year-end 2024.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Customer Relationships

You're looking at how Commercial Vehicle Group, Inc. (CVGI) manages its connections with the big truck and vehicle makers as of late 2025. Honestly, the relationships are the backbone, especially when the market gets choppy, like it did in the third quarter.

Dedicated OEM account management for long-term contracts is how they anchor their business. While I don't have the specific contract lengths, the structure of their business relies on deep integration. For instance, the Global Electrical Systems segment saw revenues of $49.5 million in Q3 2025, a 5.9% increase year-over-year, directly tied to ramping up new business wins with an autonomous vehicle manufacturer in North America and a major automotive manufacturer in Europe. That kind of growth doesn't happen without dedicated, long-term account focus.

The ability to manage costs through these relationships is key, especially given the inflation pressures. They focus on negotiated price recovery to offset material and freight costs. The proof is in the margin, even if the top line dipped. For Q3 2025, the adjusted gross margin hit 12.1%, which was an increase of 50 basis points year-over-year. That 50 basis point lift suggests their commercial teams were effective in passing through, or absorbing strategically, cost increases through contract mechanisms.

Managing the flow of parts requires tight coordination, which is what proactive alignment with customer build schedules (flexed labor) is all about. You saw the challenge: consolidated revenue for Q3 2025 was $152.5 million, down from $171.8 million the prior year, largely due to softening demand in North America Class 8, which ACT Research noted was down 39% year-over-year in the quarter. Still, CVGI's revenue decline was less severe than the overall market in that specific area, which points to their ability to manage build schedule fluctuations, likely through flexible labor agreements tied to OEM forecasts.

Finally, direct technical support for product integration and design is what secures future revenue. The success in the Global Electrical Systems segment, which is up 6% in revenue, is a direct result of this. They aren't just shipping parts; they are engineering solutions into the next generation of vehicles. This technical partnership is what drives the year-to-date free cash flow improvement of $14 million, reaching $25 million for the first nine months of 2025, as new programs move from heavy capital investment to production.

Here's a quick look at the financial results that reflect the health of these customer-facing strategies as of the third quarter of 2025:

The relationships also involve managing the overall financial pressure. For example, interest expense rose to $4.1 million in Q3 2025 from $2.4 million in Q3 2024, partly due to debt refinancing, which means the value derived from customer contracts must be strong enough to service this higher cost of capital.

The company's customer-facing strategy is further detailed by the focus areas they are pushing:

• Securing new business in the Global Electrical Systems segment.
• Driving operational efficiency improvements across all segments.
• Managing lower North American Class 8 volumes effectively.
• Improving working capital performance to boost cash flow.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Channels

You're looking at how Commercial Vehicle Group, Inc. gets its products-systems, assemblies, and components-to the market as of late 2025. The channels rely on a mix of direct OEM relationships, a dedicated aftermarket presence, and global production flow.

The total revenue for the trailing twelve months ending September 30, 2025, was reported at $657.53 million. The company's guidance for the full year 2025 revenue midpoint was set at $660 million.

The revenue breakdown across the continuing operations segments for the third quarter ended September 30, 2025, gives us a clearer picture of channel focus:

The direct sales force targets global OEM customers across the Vehicle Solutions and Electrical Systems segments. The Electrical Systems segment saw revenue of $49.5 million in the third quarter of 2025, driven partly by ramping new business wins.

The aftermarket distribution network for replacement parts is managed through the Aftermarket & Accessories Segment. This channel serves original equipment service centers and retail distributors. For context, this segment generated revenues of $31.6 million in the fourth quarter of 2024.

Direct-to-customer shipments are supported by a wide manufacturing footprint. Commercial Vehicle Group, Inc. manufactures customized products in numerous international locations, which supports its global supply chain directly to customers:

• United States
• Mexico (including a facility in Aldama)
• China
• United Kingdom
• Czech Republic
• Ukraine
• Morocco (new facility opened in 2024)
• Thailand
• India
• Australia

The company is actively managing its manufacturing footprint, having made progress in right sizing it during the second quarter of 2025.

Finance: draft 13-week cash view by Friday.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Commercial Vehicle Group, Inc. (CVGI) right as the company navigates a tough cycle in its core markets. Here's the hard data on who they sell to, based on the latest figures available as of late 2025.

Heavy-Duty and Medium-Duty Truck OEMs (North American Class 8 market is soft)

Demand from this group is clearly under pressure. Management specifically noted ongoing lower demand in the Class 8 truck end market in their Q3 2025 commentary. The North American Class 8 truck production forecast for 2025, according to ACT Research, is set at 316,000 units. This follows 2024 actual builds of 332,382 units.

The impact of this softness is visible across the segments that serve these OEMs. For instance, the Trim Systems and Components Segment revenue in the third quarter of 2025 was $34.3 million, a significant decrease of 29.2% compared to the prior year period, primarily due to lower sales volume tied to this declining production environment. The Global Seating Segment also saw a decrease of 10.4% in revenue, landing at $68.7 million for Q3 2025, also due to decreased customer demand.

Construction and Agriculture Equipment OEMs (facing demand softness)

This customer base is also contributing to the current headwinds. Commercial Vehicle Group, Inc. (CVGI) explicitly cited lower demand in its Construction and Agriculture end markets during Q3 2025. Projections for these specific end markets in 2025 suggest a decline of approximately 5-10%. This softness was also a primary driver for revenue decline in Q4 2024.

Electric Vehicle (EV) and Autonomous Vehicle Manufacturers (growth focus)

This area represents a bright spot against the broader market softness. The Global Electrical Systems Segment returned to year-over-year growth, posting revenues of $49.5 million in Q3 2025, an increase of 5.9%. This growth is directly attributed to ramping new business wins. One such win mentioned is with an autonomous vehicle manufacturer in North America, positioning the company for the transition to electric commercial vehicles.

Aftermarket Distributors and Dealers

While the most recent segment revenue breakdown is from Q3 2025, which doesn't isolate aftermarket sales, prior period data shows this is a distinct customer channel. For example, in the fourth quarter of 2024, the Aftermarket & Accessories Segment generated revenues of $31.6 million, which represented a 4.0% increase year-over-year from the prior period's $30.4 million.

Here's a look at the revenue contribution by segment for the third quarter of 2025, which shows the current mix of business:

Consolidated revenue for Commercial Vehicle Group, Inc. (CVGI) in Q3 2025 was $152.5 million, down 11.2% from the prior year period. The revenue for the last twelve months ending September 30, 2025, stood at $657.53 million.

The key customer-facing dynamics for Commercial Vehicle Group, Inc. (CVGI) as of late 2025 can be summarized by:

• Reduced volume from North American Class 8 truck OEMs.
• Projected decline of 5-10% in Construction and Agriculture end markets for 2025.
• Growth in Electrical Systems driven by new business, including EV/Autonomous exposure.
• Aftermarket sales providing a relatively more stable, though smaller, revenue base.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Commercial Vehicle Group, Inc. (CVGI)'s operations as of late 2025. The cost structure is clearly under intense scrutiny, with management actively targeting overheads while dealing with the impact of higher borrowing costs.

Significant Cost of Goods Sold (COGS) from raw materials and direct labor

While direct COGS line items for raw materials and direct labor aren't broken out separately in the latest filings, the resulting profitability metric, Adjusted Gross Margin, shows the cost efficiency of production. The company achieved an 12.1% Adjusted Gross Margin in the third quarter of 2025. This compares to 11.6% in the third quarter of 2024, indicating some incremental benefit from operational efficiency improvements, even with volume headwinds. For context on the absolute cost of sales, Q3 2025 revenue was $152.5 million, and the Q1 2025 Gross Profit was $17.8 million.

Here's a look at the profitability component tied to production costs:

Selling, General, and Administrative (SG&A) expenses (focus on reduction)

Reducing SG&A is a key lever for margin expansion this year. Management explicitly cited lower SG&A expenses as a driver for the Q3 2025 adjusted operating income improvement. This focus follows concrete actions taken earlier in the year. Honestly, every dollar saved here flows straight to the bottom line when volumes are soft.

The efforts to control overhead costs include:

• Pursuing additional SG&A and overhead cost savings into the end of 2025.
• Managing headcount and flexing manufacturing work schedules to reduce overhead costs.
• Achieving a $2.3 million reduction in SG&A expenses during the first quarter of 2025.

Interest expense on debt, which is higher due to interest rates

The cost of servicing debt has notably increased, a direct reflection of the higher interest rate environment following the June 2025 debt refinancing. This higher fixed cost pressures profitability, especially when revenues are declining.

The interest expense figures clearly show this trend:

• Q3 2025 Interest Expense: $4.1 million.
• Q3 2024 Interest Expense: $2.4 million.
• Q1 2025 Interest Expense: $2.5 million.

The increase in Q3 2025 interest expense was $1.7 million year-over-year.

Capital expenditures (CapEx) reduced by 50% in 2025

Commercial Vehicle Group, Inc. (CVGI) made a significant commitment to cash preservation by targeting a major reduction in planned capital spending for the year. This is a classic move to boost free cash flow when the market is uncertain.

Key points on capital spending:

• Management expected a 50% reduction in planned capital expenditures for 2025.
• Year-to-date free cash generation through Q3 2025 reached $25 million, supported by lower capital expenditures.
• This lower CapEx, combined with working capital management, drove year-to-date free cash flow up by $14 million from the previous year.

Finance: draft 13-week cash view by Friday.

Commercial Vehicle Group, Inc. (CVGI) - Canvas Business Model: Revenue Streams

The revenue streams for Commercial Vehicle Group, Inc. (CVGI) are fundamentally tied to the production volumes and demand across the heavy-duty truck, construction, and agriculture end markets, though the Electrical Systems segment is showing a positive offset from new business.

Sales from Global Seating segment represent a core revenue component, though this area experienced a significant drop in the third quarter of 2025 due to softening customer demand, particularly in North America. For the third quarter ended September 30, 2025, revenues for this segment were reported at $68.7 million.

The Global Electrical Systems segment is a key area showing resilience, seeing new business ramp-up that helps offset weaker demand in other areas. Third quarter 2025 revenues for Global Electrical Systems were $49.5 million, marking an increase of 6% compared to the year-ago quarter, directly attributable to the ramp-up of new business wins.

Sales from Trim Systems and Components segment also felt the pressure from lower sales volume in the third quarter of 2025. This segment generated revenues of $34.3 million for the quarter, which was a decrease of 29.2% compared to the prior year period.

Here's a quick look at the most recent reported segment performance, which feeds into the overall annual expectation:

The company's overall expectation for the full year reflects the challenging macro environment seen through the third quarter. Full-year 2025 revenue guidance is set at $640 million to $650 million.

You can see how the segment performance compares to the overall guidance:

• Global Seating segment revenue was $68.7 million in Q3 2025.
• Global Electrical Systems segment revenue was $49.5 million in Q3 2025.
• Trim Systems and Components segment revenue was $34.3 million in Q3 2025.
• The full-year 2025 revenue guidance is $640 million to $650 million.