Coventry Group Limited (ASX: CYG) announced its FY25 trading results, reporting a decrease in group sales to $365.2 million, down 1.7% compared to the prior year. The unaudited EBITDA for the same period was $12.3 million, reflecting a significant decline of 40.9% from the previous year. This downturn was attributed to softer market conditions across Australia and New Zealand, the challenges associated with the implementation of a new ERP system, and underperformance in sales growth strategies. Despite these challenges, the company maintained strong gross margins; however, the high cost base led to poor net margin outcomes. In the Fluid Systems segment, sales declined by 7.4%, contributing to the overall decrease in consolidated group sales. Additionally, the segment faced a one-off, pre-tax loss of approximately $1.3 million due to an onerous contract identified during the period. Looking ahead, Coventry Group Limited has set an earnings guidance for FY26 with an expected EBITDA exceeding $20 million. The group is focused on a "back to basics" strategy, emphasizing sales growth, cost reduction, cash generation, debt reduction, and a significant improvement in financial performance. The Board is confident in the market opportunities and believes the team is well-positioned to execute these strategic goals. July sales were reported at $34 million, marking a 6.3% increase from June, indicating an improving run-rate.