v3.25.2
Discontinued Operations
 6 Months Ended
Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
On July 31, 2024, the Company entered into a purchase agreement to sell its cab structures business with operations in Kings Mountain, North Carolina for approximately $40 million. On September 6, 2024, the Company entered into an Amendment to the Purchase Agreement whereby the transaction closed on September 6, 2024 with the Company receiving $20 million of the purchase price on September 6, 2024 and $20 million (subject to adjustment) on October 1, 2024. The decision to divest this business was part of our strategy to reduce our exposure to the cyclical Class 8 market, lower our customer concentration, remove complexity from our business, and improve our return profile.

On October 30, 2024, the Company entered into a purchase agreement to sell its First Source Electronics (FSE) business with operations in Elkridge, Maryland for approximately $1.5 million, with a note in the amount of $0.5 million and earn out potential of an additional $1.5 million subject to certain criteria. The Elkridge facility was the primary manufacturing facility of the Company's Industrial Automation segment. The decision to divest this business was part of our strategy to continually evaluate our portfolio of businesses and product lines for strategic fit and continued investment.

We determined that the sale of the cab structures and Industrial Automation businesses represent discontinued operations as they constitute disposals of a product line and an operating segment, respectively, and are a strategic shift that will have a major effect on our operations and financial results (individually and collectively). As a result, we reclassified the related earnings (loss) from continuing operations to earnings (loss) from discontinued operations - net of income taxes on the consolidated
statement of earnings (loss) for all the periods presented. No amounts for shared general and administrative operating support expense were allocated to the discontinued operation.

The Company has continuing involvement with the cab structures business through a transition services agreement (TSA), pursuant to which the Company and Buyer parties provide certain service to each other for a period of time following the disposition, up to one year. While the transition services are expected to vary in duration depending upon the type of service provided, the Company expects to reduce costs as the transition services are completed. The Company recognized $0.4 million of income related to the transition services agreement for the six months ended June 30, 2025, which was presented in Continuing operations, Other (income) expense in the Condensed Consolidated Statements of Operations.
The following table provides a reconciliation of the individual discontinued operations to the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Income (loss) from discontinued operations, net of tax
Cab structures business$(512)$493 $(1,535)$3,513 
Industrial Automation segment(143)(794)(293)(2,322)
Total income (loss) from discontinued operations, net of tax$(655)$(301)$(1,828)$1,191 
The following tables present reconciliations of the captions within CVG's Condensed Consolidated Statements of Operations attributable to each discontinued operation for the three and six months ended June 30, 2025 and 2024.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Income (loss) from discontinued operations attributable to Cab structures business:
Revenues$— $31,252 $(657)$64,391 
Cost of revenues512 30,599 878 59,739 
Gross profit(512)653 (1,535)4,652 
Selling, general and administrative expenses— — — — 
Operating income (loss)(512)653 (1,535)4,652 
Income (loss) before provision for income taxes(512)653 (1,535)4,652 
Provision (benefit) for income taxes of discontinued operations— 160 — 1,139 
Net income (loss) from discontinued operations, net of income taxes$(512)$493 $(1,535)$3,513 
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Income (loss) from discontinued operations attributable to Industrial Automation segment:
Revenues$— $4,990 $(150)$9,291 
Cost of revenues— 5,123 — 9,922 
Gross profit— (133)(150)(631)
Selling, general and administrative expenses— 823 — 2,262 
Operating income (loss)— (956)(150)(2,893)
Other (income) expense143 — 143 — 
Interest expense— 72 — 137 
Income (loss) before provision for income taxes(143)(1,028)(293)(3,030)
Provision (benefit) for income taxes of discontinued operations— (234)— (708)
Net income (loss) from discontinued operations, net of income taxes$(143)$(794)$(293)$(2,322)


The following tables present reconciliations of the captions within CVG's Condensed Consolidated Statements of Cash Flows attributable to discontinued operations for the six months ended June 30, 2025 and 2024.

Six Months Ended June 30,
20252024
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Net cash provided by operating activities$306 $8,310 
Net cash used in investing activities— (434)
Total cash provided by discontinued operations$306 $7,876