Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________to___________ Commission file number 001-12505 CORE MOLDING TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) | ...

Financial Data and Key Metrics Changes - For fiscal 2024, net sales were $302 million, down 15.5% due to lower demand across end markets [21][22] - Gross profit margin was 17.6%, within the long-term target range of 17% to 19% [22] - Adjusted EBITDA for the year was $33.8 million, or 11.2% of sales [22] - Record cash flow from operations reached $35 million, translating to free cash flow of $23.6 million [23][29] - The company reported a slight net loss of $39,000 for the fourth quarter compared to net income of $2.2 million in the prior year [28] Business Line Data and Key Metrics Changes - The company won $45 million in new business in 2024, with nearly all launching in 2025 [19] - The fourth-quarter sales were $62.5 million, down 15.3% primarily due to declines in the truck and tire sports market [23] - Demand in end markets such as industrials, utility, and building products grew compared to the prior year quarter [24] Market Data and Key Metrics Changes - The truck market is experiencing a cyclical downturn, with expectations for a cyclical upturn in the second half of 2025 [21] - The company anticipates a revenue decline of approximately $30 million due to the Volvo transition in 2025 [32] Company Strategy and Development Direction - The company is focused on driving organic and inorganic growth, with an emphasis on acquisitions [12][30] - Investment in top coat paint capabilities at the Matamoros facility aligns with growth in construction equipment and agricultural markets [13] - The three growth pillars include wallet share growth, sales diversification, and growth through acquisition [30][42] Management Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the macro environment and customer decision-making due to tariffs [64][65] - The company expects to offset the Volvo impact through higher tooling sales and new program launches [32][33] - Management remains confident in maintaining gross margins between 17% and 19% despite changes in revenue mix [33][79] Other Important Information - The company repurchased approximately 172,000 shares at an average price of $17.09 per share [32] - Total outstanding liquidity was $91.8 million, including $41.8 million in cash [29] Q&A Session Summary Question: What is the current visibility from customers regarding the full-year outlook? - Management noted that there is a lot of waiting from customers due to uncertainty around tariffs and decision-making processes [64][65] Question: How are tariffs impacting the company? - The company has set up processes to pass through costs to customers and has communicated these changes effectively [70][71] Question: What is the expected impact of the Volvo transition on margins? - The Volvo business was not the highest margin business, so its exit may help overall margins despite hurting top-line revenue [76][78] Question: How much tooling revenue is expected this year? - Tooling revenue is anticipated to be in the $30 to $40 million range, indicating strong future business [84] Question: How does the company view share repurchases versus acquisitions? - Management believes in balancing capital allocation between share repurchases and acquisitions for long-term growth [93][95]

Financial Performance - Net sales for fiscal year 2024 were $302.4 million, a decrease of 15.5% from $357.7 million in the prior year, primarily due to lower demand across significant markets [4]. - Gross margin for the year was $53.3 million, or 17.6% of net sales, compared to $64.5 million, or 18.0% of net sales, in the prior year [4]. - Adjusted EBITDA for the year was $33.8 million, representing 11.2% of net sales, down from $42.9 million, or 12.0% of net sales, in the prior year [4]. - Net income for the year was $13.3 million, or $1.51 per diluted share, down from $20.3 million, or $2.31 per diluted share, in the prior year [4]. - Adjusted EBITDA for the year ended December 31, 2024, was $33,802, down 21.2% from $42,861 in 2023 [23]. - The company reported a net income of $13,299 for the year, a decline of 34.6% from $20,324 in 2023 [21]. - Adjusted net income per share for the year was $1.65, down from $2.42 in 2023, a decrease of 31.9% [31]. Cash Flow and Liquidity - The company achieved record operational cash flow of $35 million in 2024 [5]. - Total liquidity at year-end was $91.8 million, with $41.8 million in cash and a Debt to Trailing Twelve Months Adjusted EBITDA ratio of 0.64 times [9]. - Cash and cash equivalents increased to $41,803 at the end of 2024, compared to $24,104 at the end of 2023, representing a growth of 73.3% [19]. - Free cash flow surplus for the year was $23,626, compared to $25,742 in 2023, reflecting a decrease of 8.2% [29]. Expenses and Liabilities - Selling, general and administrative expenses for the year were $36.6 million, or 12.1% of net sales, compared to $38.0 million, or 10.6% of net sales, in the prior year [4]. - Total liabilities decreased to $62,189 in 2024 from $74,424 in 2023, a reduction of 16.4% [19]. Market Outlook and Future Plans - The company plans capital expenditures of approximately $10 to $12 million for 2025 to meet current demand and allow for expansion [8]. - The sales opportunity pipeline is currently valued at $275 million, indicating potential growth [6]. - The company expects flat sales for 2025, impacted by the phase-out of approximately $30 million of Volvo programs, but anticipates a truck cycle upturn starting in the second half of 2025 [7]. Segment Performance - Net product revenue for the year ended December 31, 2024, was $291,092, a decrease of 16.2% from $347,375 in 2023 [17]. - The medium and heavy-duty truck segment generated $163,915 in revenue for the year, down 9.6% from $181,376 in 2023 [17]. Return Metrics - Return on capital employed (ROCE) for 2024 was 9.9%, down from 16.4% in 2023 [27]. - The weighted average common shares outstanding for the year was 8,693,000, compared to 8,550,000 in 2023 [31].

Core Insights - Core Molding Technologies, Inc. reported a successful fiscal year 2024, achieving record operational cash flow of $35 million despite a 15.5% decline in net sales to $302.4 million due to lower customer demand across significant markets [5][6][8] - The company focused on improving operational efficiencies and cost reductions, resulting in a gross margin of 17.6% and a return on capital employed (ROCE) of 9.9% for the year [5][6][10] - The company plans to continue its "Invest For Growth" strategy in 2025, aiming to enhance sales and marketing efforts, diversify its business, and pursue strategic acquisitions [7][8] Fiscal Year 2024 Highlights - Net sales decreased by 15.5% from $357.7 million to $302.4 million, with product sales down 16.2% [6] - Gross margin fell to $53.3 million (17.6% of net sales) from $64.5 million (18.0% of net sales) in the prior year [6] - Operating income decreased to $16.7 million (5.5% of net sales) from $26.5 million (7.4% of net sales) [6] - Net income was $13.3 million ($1.51 per diluted share), down from $20.3 million ($2.31 per diluted share) a year ago [6] Fourth Quarter 2024 Highlights - Net sales for Q4 were $62.5 million, down 15.3% from $73.8 million in the prior year [6] - Product sales in Q4 were $60.0 million, a decrease of 17.1% [6] - The company reported a net loss of $39 thousand for Q4, compared to a net income of $2.2 million in the same period last year [6] Financial Position - Total liquidity at year-end was $91.8 million, with $41.8 million in cash and $25 million of undrawn capacity under credit facilities [10] - The company's debt to trailing twelve months adjusted EBITDA ratio was 0.64 times, indicating a strong financial position [10][28] - Capital expenditures for 2024 were $11.5 million, with plans for 2025 expenditures of approximately $10 to $12 million [9] Strategic Initiatives - The company secured $45 million in new revenue wins in 2024 and aims to ramp up its sales and marketing efforts in 2025 [7] - Core Molding's strategy includes growing wallet share with existing customers, diversifying into new markets, and pursuing mergers and acquisitions [7] - The sales opportunity pipeline is currently valued at $275 million, indicating potential for future growth [7]

Group 1 - Core Molding Technologies, Inc. is a leading engineered materials company specializing in molded structural products across various industries including building products, industrial utilities, medium and heavy-duty trucks, and powersports in North America [1][3] - The company will participate in the 37th Annual Roth Conference from March 16-18, 2025, at the Laguna Cliffs Marriott in Dana Point, California [1] - Management will host one-on-one investor meetings during the event, providing an opportunity for investors to engage directly [2] Group 2 - Core Molding operates in one segment as a molder of thermoplastic and thermoset structural products, offering a variety of manufacturing processes such as compression molding, resin transfer molding, and structural foam injection molding [3] - The company serves diverse markets including medium and heavy-duty trucks, marine, automotive, agriculture, and construction, with demand influenced by economic conditions in the U.S., Mexico, and Canada [3]

Group 1 - Core Molding Technologies, Inc. will release its fourth quarter and fiscal year 2024 results on March 11, 2025, before the market opens [1] - A conference call will be held on the same day at 10:00 am Eastern, which will be broadcast live over the internet [1] - Core Molding specializes in molded structural products for various industries including building products, utilities, transportation, and powersports across North America [2] Group 2 - The company operates in one segment as a molder of thermoplastic and thermoset structural products [2] - Core Molding offers a variety of manufacturing processes such as compression molding, resin transfer molding, and structural foam injection molding [2] - The demand for Core Molding's products is influenced by economic conditions in the United States, Mexico, and Canada [2]

Core Viewpoint - Western Union reported mixed fourth-quarter 2024 results, with adjusted EPS missing estimates but showing year-over-year improvement, while total revenues slightly increased and surpassed expectations [1][2]. Financial Performance - Adjusted EPS for Q4 2024 was 40 cents, missing the Zacks Consensus Estimate by 4.8%, but improved 8.1% year over year [1]. - Total revenues reached $1.1 billion, a 1% increase year over year, exceeding the Zacks Consensus Estimate by 3.1% [2]. - Adjusted operating margin improved by 100 basis points to 17%, driven by marketing and technology efficiencies [4]. - Total expenses decreased by 1% year over year to $880.1 million, although this was higher than the estimate of $822.5 million [4]. Segment Analysis - Consumer Money Transfer (CMT) segment revenues fell by 4% to $938.8 million but exceeded estimates [5]. - CMT operating income rose 14% year over year to $170 million, though it fell short of estimates [5]. - Consumer Services (CS) unit revenues surged 56% to $119.4 million, significantly surpassing estimates, driven by new business initiatives [7]. Cash Flow and Financial Position - Cash and cash equivalents stood at $1.5 billion, a 16.2% increase from the end of 2023 [9]. - Net cash from operations was $406.3 million, a decline of 48.1% from the previous year [10]. - Total stockholders' equity more than doubled to $968.9 million compared to the end of 2023 [9]. Capital Deployment - Western Union returned $318 million to shareholders through dividends and $177 million through share buybacks in 2024 [11]. 2025 Outlook - Management projects adjusted revenues between $4.115 billion and $4.215 billion, indicating a potential decline from 2024 [12]. - Adjusted EPS is expected to range from $1.75 to $1.85, suggesting a 3.4% improvement from 2024 [12]. - GAAP EPS is forecasted to decline by 42% from 2024 levels, with an expected range of $1.54 to $1.64 [12].

Core Molding Technologies Overview - Core Molding Technologies, Inc. is a leading engineered materials company specializing in molded structural products across various industries including building products, industrial utilities, medium and heavy-duty trucks, and powersports in North America [3] - The company operates in one segment as a molder of thermoplastic and thermoset structural products, offering a wide range of manufacturing processes such as compression molding, resin transfer molding, and structural foam injection molding [3] Upcoming Conference Participation - Core Molding's President and CEO David Duvall, along with EVP and CFO John Zimmer, will participate in the 16th Annual Southwest IDEAS Conference in Dallas on November 21, 2024 [1] - The company will host one-on-one investor meetings throughout the day, with a presentation scheduled from 4:10 to 4:45 PM CT, which will be webcast live [2] Market Demand and Economic Impact - The demand for Core Molding's products is influenced by economic conditions in the United States, Mexico, and Canada, indicating a sensitivity to regional economic fluctuations [3] - The company's operations may experience changes that are proportionately more significant than revenue changes, highlighting potential operational leverage [3]

Financial Performance - Net sales for the three months ended September 30, 2024, were $72,992,000, a decrease of approximately 16% compared to $86,728,000 for the same period in 2023[109] - Product sales, excluding tooling project sales, for the three months ended September 30, 2024, were $71,258,000, down from $80,896,000 in 2023, reflecting lower demand across most industries[109] - Net income for the three months ended September 30, 2024, was $3,160,000, or $0.36 per share, compared to $4,354,000, or $0.50 per share, for the same period in 2023[114] - For the nine months ended September 30, 2024, net sales totaled $239,880,000, a decrease from $283,961,000 in 2023, with product sales excluding tooling at $231,045,000 compared to $274,933,000[116] - Comprehensive income for the nine months ended September 30, 2024, was $10,620,000, down from $18,311,000 in the same period of 2023, reflecting a decrease in net income of $4,804,000 and a decrease in foreign currency hedging valuation of $2,267,000[123] Margins and Costs - Gross margin for the three months ended September 30, 2024, was 16.9%, down from 17.6% in 2023, impacted by lower fixed cost leverage and operational inefficiencies[109] - The gross margin for the nine months ended September 30, 2024, was approximately 18.1%, down from 18.9% in 2023, due to lower fixed cost leverage and operational inefficiencies[116] Future Outlook - The company expects revenues for the fourth quarter of 2024 to decrease by approximately 17% to 20% compared to the same period in 2023 due to seasonal demand slowdown and decreased customer inventory builds[105] - The company anticipates raw material pricing in the fourth quarter of 2024 to remain flat or slightly lower compared to 2023, with stable supply chains[107] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, totaled $30,162,000, with net income positively impacting cash flows[125] - Cash used in investing activities for the nine months ended September 30, 2024, was $7,045,000, primarily for property, plant, and equipment purchases, with anticipated spending of $11,000,000 to $13,000,000 for 2024[126] - Cash used in financing activities for the nine months ended September 30, 2024, totaled $4,873,000, including treasury stock purchases and long-term debt repayments[127] - As of September 30, 2024, the Company had $42,348,000 cash on hand and a $25,000,000 revolving loan facility with no outstanding balance[128] Debt and Financial Agreements - The Company is in compliance with financial covenants associated with the Huntington Credit Agreement as of September 30, 2024[129] - The Huntington Credit Agreement provides secured loans totaling $75,000,000, including a term loan, CapEx loan, and revolving loan commitments[131] - The interest rate for the Huntington Term Loan was 6.85% as of September 30, 2024, down from 7.11% as of December 31, 2023[143] - The Company entered into an interest rate swap agreement to hedge $25,000,000 of the Huntington Term Loan, resulting in an effective interest rate of 4.75%[144] Market Risks - The Company is exposed to market risks from fluctuations in commodity prices, interest rates, and foreign currency exchange rates, which could adversely affect operating margins[149][150] Restructuring Charges - The company incurred restructuring charges of $228,000 for the three months ended September 30, 2024, with anticipated additional charges of approximately $81,000 in the following quarter[108] Interest Income - The company recorded net interest income of $144,000 for the three months ended September 30, 2024, compared to net interest expense of $187,000 for the same period in 2023[111]

Financial Data and Key Metrics Changes - Third quarter sales were $73 million, with adjusted EBITDA of $7.5 million or 10.3% of sales, contributing to year-to-date free cash flow of over $23 million [10][11] - Net income was $3.2 million or $0.36 per diluted share, down from $4.4 million or $0.49 in the comparable year period [20][22] - Product sales and total net sales were down 11.9% and 15.8% respectively compared to a year ago [13] Business Line Data and Key Metrics Changes - Truck sales declined due to lower demand and the start of the Volvo transition, with expectations of a cyclical upturn in the second half of 2025 [14][15] - Other markets such as power sports and building products were impacted by macroeconomic pressures, while industrial and utilities faced challenges from customer in-sourcing [16] Market Data and Key Metrics Changes - The truck market is currently in a cyclical downturn but is expected to rebound in 2026 due to upcoming environmental regulation changes [14][40] - The company has secured over $45 million in new business with a thriving pipeline of over $270 million in active opportunities [37] Company Strategy and Development Direction - The company is focused on its "Invest for Growth" strategy, which includes sales force development, advancing technology functions, and acquisitions [35][43] - The strategy aims to optimize the business model by growing wallet share with large customers and enhancing customer-focused systems [29][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds but emphasized maintaining profitability and preparing for growth [10][11] - There is cautious optimism among customers as they prepare for significant investments, with expectations of a market stabilization [37][38] Other Important Information - The company ended the quarter with $42.3 million in cash and cash equivalents, with total outstanding liquidity of $92.3 million [23][24] - The company plans to participate in the upcoming Southwest IDEAS Conference in Dallas [45] Q&A Session Summary Question: Can you expand on the $100 million pipeline? - Management noted that the pipeline is somewhat inverted, with large programs in construction, truck, and power sports, but customers are slow to launch due to approval processes [47][48] Question: Thoughts on volumes next year given the Volvo transition? - Management indicated that the Volvo transition will negatively impact sales next year, with a wait-and-see approach for other customers [51][52] Question: Details on the hospital bed project? - Management explained that they are producing a support structure for hospital beds, transitioning from sheet metal to a molded solution, which took about a year to develop [58][59] Question: Update on Volvo's transition process? - Management stated that the transition is ongoing and moving slower than planned, with a long phase-out time frame due to numerous part numbers [61][62]