CMT News & Events

Reports Q3 revenue $58.4M vs $72.992M last year. David Duvall, the Company's President and Chief Executive Officer, and Eric Palomaki, Chief Operating Officer, commented, "While topline challenges persist, we are enthusiastic about Core Molding's Invest for Growth achievements, highlighted by $47 million in new incremental business scheduled to launch over the next two years. These programs reflect a balanced mix of market share gains, wallet-share expansion with existing customers, and new business wins - including key opportunities in SMC and topcoat applications. Our $25 million strategic investments in organic growth are advancing as we expand Core's Matamoros plant and establish a new greenfield facility in Monterrey, Mexico. These initiatives enhance our ability to serve a major truck customer with superior quality and service, while leveraging DCPD molding and paint capabilities to drive long-term growth."

Core Molding Technologies announced its leadership transition. Dave Duvall, President and CEO, is to retire on May 31, 2026. Consistent with the Company's succession plan, the Company's COO, Mr. Eric Palomaki, will assume the President and CEO role effective June 1, 2026. Following his retirement, Duvall will continue to support the Company's strategic work as an Executive Advisor through December 2027.

Alex Panda, the Company's EVP and Chief Financial Officer, said, "Similar to the first quarter, the majority of the sales declines resulted from the previously announced truck program phase-out, coupled with persistent consumer demand weakness in the truck and powersports segments. In the second quarter, we delivered solid profitability and healthy operating and free cash flow, a clear demonstration of our ability to execute and drive value, even in a softer demand environment. Despite pressure on fixed cost leverage and sales mix this quarter, we held gross margins in our projected range of 17% to 19%. Looking ahead to the second half of 2025, we expect year-over-year sales comparisons to improve, with projected sales moderating to a manageable 4% to 6% decline range in the second half. As a reminder, we still anticipate our sales mix to be meaningfully impacted in 2025 by higher tooling sales, which pressured gross margins compared to product sales. We were pleased to generate $9.6 million of cash from operations and $5.2 million of free cash flow. Our balance sheet remains strong, and we have flexibility and ample liquidity to advance our 'Invest for Growth' strategy including the recently awarded Volvo Mexico program and our capital allocation investment of $25 million related to our plant expansion. We plan to continue with another capital allocation priority of returning capital to shareholders through our ongoing share repurchase program."

The Company's capital expenditures for the first six months of 2025 were $4.4 million. The Company still anticipates spending approximately $10 to $12 million during 2025 on property, plant and equipment purchases for all of the Company's operations. Following the award of the Volvo Mexico business, the Company expects to invest approximately $25 million over the next 18 months, with $8 to $10 million anticipated to be spent by the end of fiscal 2025. The Company generated a Return on Capital Employed of 7.2% for the trailing twelve months and 9.6% excluding cash.