Commercial Vehicle Group, Inc.

Good morning, ladies and gentlemen. Welcome to CVG's fourth quarter 2024 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions with instructions to follow up that time. As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Andy Truong, Chief Financial Officer. Please go ahead, sir.

Thank you, operator, and welcome everyone to our conference call. Joining me on the call today is James Wei, President and CEO of CVG. This morning, we will provide a brief company update as well as commentary regarding our fourth quarter and full year 2024 results, after which we will open the call for questions. As a reminder, this conference call is being webcast and the Q4 2024 earnings call presentation, which we will refer to during this call, is available on our website. Both may contain forward-looking statements, including, but not limited to, expectations for future periods regarding market trends, cost savings initiatives, and new product initiatives, among others. Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include, but are not limited to, economic conditions in the markets in which CVG operates. fluctuations in the production volumes of vehicles for which CVG is a supplier, financial governance compliance and liquidity, risks associated with conducting business in foreign countries and currencies, and other risks as detailed in our SEC filings. I will now turn the call over to James to provide a company update.

Thank you, Andy. I'd like to turn your attention to the supplemental earnings presentation starting on slide three. I'd like to take a moment to recap a very eventful 2024 for CVG. We've always focused on improving our cost structure, diversifying our end markets, and positioning for future accretive growth. To that end, we took some immediate and decisive actions in 2024 with the goal of becoming a more focused organization through divesting non-core businesses. In the first quarter, we sold Finish Tech, our hydrographic and paint decorating business. In the third quarter, we sold our Chillicothe, Ohio production facility, consolidating production into other CVG facilities, and closed on the sale of our cap structures business. In the fourth quarter, we closed on the sale of our industrial automation business, Over the course of the year, we also eliminated approximately 1,300 positions, or roughly 17% of our headcount. While continuous improvement is an ongoing focus for CVG, the reality is that marketing conditions accelerated the need for these business actions. Executing actions of this magnitude would be a heavy lift for any organization, and the level of difficulty was raised due to the in-market conditions we faced in 2024. I'd like to thank the entire CVG team for their efforts in positioning the company for a higher growth, more profitable future. Turning to the fourth quarter results, our financial performance was challenged due to both external market conditions and internal operating inefficiencies resulting from our portfolio actions. Most importantly, we continued to make transformational progress, which we believe will enable meaningfully improved operational efficiency and position us for success as our end markets begin to recover. The strategic actions I described earlier have positioned CVG well moving forward. Through the sale of our non-core facilities and businesses, we've improved our operational focus and believe we are now in a position to drive accretive growth, accelerate margin expansion, increase capital efficiency, and enhance shareholder value this year and beyond. While these actions created some operational inefficiencies in 2024, we believe we've remediated approximately 85% of those and expect to address the rest in early 2025. We'll discuss our 2025 financial guidance in a few minutes, but we believe these efficiency improvements, combined with our headcount reduction and restructuring efforts, put us on track to deliver 15 to 20 million in cost savings in 2025, setting us up for margin expansion this year. On the commercial front, we've continued to secure a new business at a very strong pace with approximately $97 million of new wins in 2024, when fully ramped. As a reminder, our new business wins figure represents a risk-adjusted assessment of our customers' estimate of their ultimate production rates. These new wind programs are key to our growth strategy, and a majority of these winds occurred in our electrical system segment, although we were awarded meaningful new business in our vehicle solution segment as well. Additionally, the winds within electrical systems were primarily outside of construction and agriculture in markets, which should further diversify our revenue profile. We were pleased to open our Morocco facility during the quarter, and we continue to ramp our facility in Aldama, Mexico. Overall, we identified several necessary and impactful opportunities to improve CVG. And now that we've completed these actions and are ramping our low-cost facilities, we expect our operating leverage to benefit later this year as the markets improve. While 2024 was a tough year financially, we believe we've taken the right steps to position CVG for the future. Turning to slide four, I'd like to highlight and provide further clarity around our new organizational structure, which we announced in early January 2025. In an effort to further align with our customers and in markets, we created a new business unit structure, which now has three operating segments, global electrical systems, global seating, and trim systems and components. As previously discussed, CVG has streamlined its operating model and lowered its cost profile. And we fully expect this new structure to enhance clarity and focus within each business unit. In short, the realignment better positions CVG for future growth while lowering corporate and administrative costs to align with the company's current revenue profile. This new organizational structure is an important step in our transformation to become a more agile company that puts our customers and our markets first and we anticipate that our new structure will accelerate our operational momentum and drive higher growth through a product-focused, customer-centric enterprise strategy. As a reminder, we will begin reporting results under the new reportable segment structure, beginning with first quarter 2025 results. With that, I'd like to turn the call back to Andy for a more detailed review of our financial results.