Core Insights - The company is advancing its CMT-SORD program and has scheduled a meeting with the FDA in Q3 2025 to discuss the New Drug Application (NDA) submission for govorestat [1][4] - Full 12-month clinical results from the INSPIRE Phase 2/3 trial of govorestat for CMT-SORD were presented, showing slowed disease progression observed via MRI at 24 months [1][4] - A new sponsored Sorbitol Assay has been launched to assist in identifying patients suspected of having CMT-SORD [1][4] - The company has entered into an out-licensing agreement with Biossil, Inc. for AT-001, an investigational therapy for Diabetic Cardiomyopathy [1][9] CMT-SORD Program - A meeting with the FDA is planned to align on the NDA submission strategy for govorestat, focusing on comprehensive data for Sorbitol Dehydrogenase Deficiency [4] - The newly launched Urine Sorbitol Assay aims to support healthcare providers in identifying suspected CMT-SORD cases at no cost to patients [4] - Clinical results from the INSPIRE trial indicated that govorestat was generally safe and well-tolerated, with significant improvements in key secondary endpoints at 12 months [4] Other Development Programs - New data on govorestat for PMM2-CDG will be presented at the 2025 ASHG Annual Meeting [2][6] - The review of the govorestat development program for Classic Galactosemia is progressing as planned, including responses to the Complete Response Letter from the FDA [5] Financial Performance - As of June 30, 2025, cash and cash equivalents totaled $30.4 million, down from $79.4 million at the end of 2024 [8] - Research and development expenses for Q2 2025 were $9.9 million, slightly down from $10.0 million in Q2 2024 [8] - General and administrative expenses increased to $13.2 million in Q2 2025 from $10.6 million in Q2 2024 [8] - The net loss for Q2 2025 was $21.3 million, compared to a net income of $2.9 million in Q2 2024 [8][15]

Core Company Overview - Core Molding Technologies, Inc. is a leading engineered materials company specializing in molded structural products across various industries including building products, utilities, transportation, 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] Recent Events - Core Molding Technologies will participate in the 16th Annual Midwest IDEAS Investor Conference on August 26, 2025, at The InterContinental Chicago Magnificent Mile [1] - The management team, including the CEO, CFO, and COO, will host one-on-one investor meetings and present from 2:45-3:20 PM CT, with the presentation available via live webcast [2] Market Dynamics - The demand for Core Molding Technologies' products is influenced by economic conditions in the United States, Canada, and Mexico, indicating a sensitivity to regional economic fluctuations [3]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Core Viewpoint - Core Molding Technologies (CMT) reported Q2 FY2025 results that exceeded analyst estimates for both revenue and earnings, but showed year-over-year declines in revenue and net income due to weakness in core markets [1][5] Financial Performance - Q2 FY2025 adjusted EPS was $0.53, beating the expected $0.46, while GAAP revenue was $79.2 million, surpassing the $75.5 million forecast [1][5] - Year-over-year, GAAP revenue declined by 10.7% from $88.7 million in Q2 FY2024, and net income decreased by 27.4% from $0.73 EPS in Q2 FY2024 [2][5] - Gross margin fell to 18.1% from 20.0% in the previous year, and operating income dropped 30.5% to $5.2 million [2][8] Business Overview - Core Molding Technologies specializes in engineered structural plastics and composites, serving sectors like transportation and powersports [3][12] - The company focuses on converting traditional metal components to lighter composite solutions, enhancing performance and weight [3][12] Strategic Focus - Recent investments include $1.9 million in R&D and a $25 million investment in plant expansions to support new contracts and growth [4][7] - The company aims to diversify its end-markets and improve operational efficiency to protect margins [4][14] Customer and Market Dynamics - The two largest segments, medium and heavy-duty trucks and powersports, accounted for approximately 75% of total revenue, both experiencing double-digit declines [6][12] - New customer programs have been secured across various markets, including a significant deal with Volvo Mexico expected to generate $150 million over the next seven to ten years [7][12] Operational Metrics - Tooling sales increased significantly by 267% to $17.6 million, partially offsetting a 27% decline in product revenue [6][10] - Operating cash flow for the first half of FY2025 was $9.6 million, with free cash flow totaling $5.2 million, down from $16.1 million in the prior year [9][10] Future Outlook - Management projects a moderation in year-over-year sales decline to a range of 4% to 6% for the second half of FY2025, contingent on new program wins and demand stabilization [14] - The target for gross margins remains in the 17% to 19% range for the full fiscal year, balancing capacity investments and cost control against pricing effects [14]

Financial Performance - Net sales for Q2 2025 were $79,239,000, a decrease of 10.7% from $88,743,000 in Q2 2024, primarily due to lower demand in power sports and medium and heavy-duty truck markets [112]. - Gross margin for Q2 2025 was 18.1%, down from 20.0% in Q2 2024, impacted by fixed cost leverage and unfavorable sales mix [112]. - Net income for Q2 2025 was $4,052,000, or $0.47 per share, compared to $6,419,000, or $0.74 per share, in Q2 2024 [115]. - Comprehensive income for Q2 2025 was $4,762,000, compared to $5,388,000 in Q2 2024, primarily due to lower net income [116]. - For the first half of 2025, net sales totaled $140,686,000, down from $166,888,000 in the same period of 2024, reflecting a decrease in product sales [117]. - The company expects revenues for the second half of 2025 to decrease by approximately 4 to 6 percent compared to 2024, influenced by market uncertainties and program transitions [110]. Expenses and Costs - SG&A expenses for Q2 2025 were $9,100,000, a decrease from $10,236,000 in Q2 2024, primarily due to lower bonuses and favorable foreign currency translation [113]. - The company anticipates raw material pricing in 2025 to remain flat or experience a slight increase relative to 2024, with stable supply chains [111]. - A hypothetical 10% decrease in the USD to MXN and CAD exchange rate would increase operating costs, adversely affecting operating margins [150]. Cash Flow and Investments - Cash provided by operating activities for the first half of 2025 totaled $9,594,000, positively impacted by net income and non-cash deductions [124]. - Cash used in investing activities for the six months ended June 30, 2025 was $4,387,000, with an anticipated total capital expenditure of approximately $10,000,000 to $12,000,000 for 2025 [125]. - The Company expects to invest approximately $25 million over the next 18 months following the award of the Volvo Mexico business, with $8 to $10 million anticipated to be spent by the end of fiscal 2025 [125]. - Cash used for financing activities for the six months ended June 30, 2025 totaled $3,798,000, including $2,249,000 for treasury stock purchases [126]. Debt and Financing - As of June 30, 2025, the Company had $43,212,000 cash on hand and a $25,000,000 revolving loan facility with no outstanding balance [127]. - The Huntington Credit Agreement provides secured loans in the maximum aggregate principal amount of $75,000,000, including a term loan, a CapEx loan, and a revolving loan [130]. - The interest rate for the Huntington Term Loan was 6.08% as of June 30, 2025, with monthly installments beginning at $104,000 for the first 24 months [142]. - The Company entered into an interest rate swap agreement effective July 22, 2022, resulting in an effective interest rate of 4.75% on the Huntington Term Loan as of June 30, 2025 [143]. - The Company is in compliance with financial covenants associated with the Huntington Credit Agreement as of June 30, 2025 [128]. - The Company anticipates using cash from operations and available borrowings to fund capital investments [129].

Financial Data and Key Metrics Changes - Revenue for Q2 was $79.2 million, representing a 10.7% decrease from the same period a year ago [19] - Gross margins were maintained at 18.1%, with adjusted EBITDA margin growing to 12%, up 30 basis points from Q1 [12][20] - Net income for Q2 was $4.1 million, or diluted EPS of $0.47, compared to net income of $6.4 million, or diluted EPS of $0.73 in the comparable year period [22] - Cash flow from operations exceeded $9.6 million for the first half of the year, resulting in free cash flow of $5.2 million after capital expenditures [12][22] Business Line Data and Key Metrics Changes - Towing revenue increased by almost $13 million between Q1 and Q2, with further growth projected from new business wins secured last year [13] - Tooling revenues grew over 3.5 times compared to the prior year due to customer launches primarily from 2024 business development activities [19] Market Data and Key Metrics Changes - Sales declined in the second quarter compared to the prior year period by low double digits, but this represented a sequential improvement from the first quarter [12] - The company expects sales to decline in the second half of the year by 4% to 6% compared to the same period in the prior year [25] Company Strategy and Development Direction - The company is focused on an "invest for growth" strategy, successfully winning $47 million of new business in the first half of the year, with 99% being incremental [6][10] - A $25 million investment is planned for expanding the Matamoros plant and establishing a new facility in Monterrey, Mexico, to support new business and anticipated future business [10][22] - The company aims to return to over $300 million in annual product revenues within the next few years, even at current demand levels [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth outlook, anticipating a return to $300 million in product revenues despite current market challenges [38] - The company is preparing for eventual revenue rebound and is focused on continuous operational improvements [30][27] - Management noted that tariff uncertainties are causing some delays in the market, but they see signs of stabilization [30] Other Important Information - The company has maintained a strong balance sheet with total liquidity of $93.2 million and a debt to EBITDA ratio of less than one [23] - The company repurchased 151,584 shares at an average price of $14.82, with $2.5 million remaining in the share buyback program [25] Q&A Session Summary Question: Growth outlook and product revenues - Management expects the truck market to start recovering, with a clear line of sight to returning to $300 million in product revenues [38] Question: Incremental wins and pipeline outlook - The company is excited about opportunities in the industrial sector, particularly in EV and municipal buses, and has identified significant leads in the SMC market [41][42] Question: CapEx in Mexico and adjacent opportunities - The $25 million investment will expand the Matamoros facility and relocate DCPD molding to a larger facility in Monterrey, enhancing logistics and growth opportunities with major customers [50][52]

Leadership Transition - CEO Dave Duvall will retire on May 31, 2026, and COO Eric Palomaki will succeed him as President and CEO effective June 1, 2026 [1][2] - Duvall will continue to support the company as an Executive Advisor until December 2027 [1] Company Transformation - Under Duvall's leadership since 2018, the company has undergone significant transformation from financial instability to sustained growth and strategic diversification [2][4] - The company has achieved consistent margin expansion, positive free cash flow, and strategic growth wins [4] Future Strategy - Eric Palomaki has been involved in the company's turnaround since 2018 and is committed to continuing the "Invest For Growth" strategy [2][4] - The leadership transition reflects the company's strength in strategy, execution, and its management team [2]

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management maintained gross margins despite sales declines in key markets, anticipating improved sales comparisons in H2 2025 - Sales declined in the **Truck and Powersports markets**, which constitute **75% of total revenue**, primarily due to a previously announced truck program phase-out and persistent consumer demand weakness[3](index=3&type=chunk)[4](index=4&type=chunk) - Despite market challenges, the company maintained gross margins within the projected range of **17% to 19%** in **Q2 2025**[4](index=4&type=chunk) - Management expects year-over-year sales comparisons to improve in the **H2 2025**, projecting a manageable **4% to 6% decline**[5](index=5&type=chunk) [Strategic Growth Initiatives](index=1&type=section&id=Strategic%20Growth%20Initiatives) The company pursues 'Invest For Growth', securing new business wins and expanding capacity, especially in Mexico - Core Molding Technologies secured **$47 million** in new incremental business wins in the **H1 2025**, with programs launching over the next two years across diverse end-markets including **building products, EV - transportation, aerospace, and powersports**[3](index=3&type=chunk) - The company won new Volvo Mexico programs, anticipated to launch in **Q1 2027**, which are expected to generate **$150 million** in revenues over the next **7 to 10 years**[4](index=4&type=chunk) - An organic investment of **$25 million** is planned over the next **18 months**, including an expansion of the Matamoros plant and a new plant and equipment in Monterrey, Mexico, adding **DCPD molding and paint capabilities**[4](index=4&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) The company demonstrated solid profitability, strong cash flow, a robust balance sheet, and continued capital return - Generated **$9.6 million** of cash from operations and **$5.2 million** of free cash flow in **Q2 2025**[6](index=6&type=chunk) - The balance sheet remains strong, with ample liquidity to support the 'Invest for Growth' strategy and plant expansion[6](index=6&type=chunk) - The company continues to return capital to shareholders through its ongoing **share repurchase program**[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) [Second Quarter 2025 Performance](index=2&type=section&id=Second%20Quarter%202025%20Performance) Q2 2025 net sales and profitability declined, yet gross margin percentage remained within expectations Metric | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Total net sales | $79.2M | $88.7M | -10.7% | | Gross margin | $14.3M | $17.7M | -19.3% | | Gross margin (% of net sales) | 18.1% | 20.0% | -1.9 pp | | Operating income | $5.2M | $7.5M | -30.7% | | Operating income (% of net sales) | 6.6% | 8.4% | -1.8 pp | | Net income | $4.1M | $6.4M | -35.9% | | Diluted EPS | $0.47 | $0.73 | -35.6% | | Adjusted EBITDA | $9.5M | $11.6M | -18.0% | | Adjusted EBITDA (% of net sales) | 12.0% | 13.0% | -1.0 pp | - The decrease in gross margin was primarily due to unfavorable fixed cost leverage (**2.2%**) and lower operational efficiencies/product mix (**0.9%**), partially offset by higher net changes in selling price and raw material costs (**1.2%**)[10](index=10&type=chunk) - **88,207 shares** were repurchased under the share repurchase authorization at an average price of **$15.07**[10](index=10&type=chunk) [Six Month 2025 Performance](index=2&type=section&id=Six%20Month%202025%20Performance) H1 2025 saw declines in net sales, operating income, and net income, with gross margin percentage remaining stable Metric | Metric | H1 2025 | H1 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Total net sales | $140.7M | $166.9M | -15.7% | | Gross margin | $26.1M | $31.0M | -15.9% | | Gross margin (% of net sales) | 18.5% | 18.6% | -0.1 pp | | Operating income | $8.1M | $12.2M | -33.7% | | Operating income (% of net sales) | 5.7% | 7.3% | -1.6 pp | | Net income | $6.2M | $10.2M | -39.1% | | Diluted EPS | $0.72 | $1.15 | -37.4% | | Adjusted EBITDA | $16.7M | $20.3M | -17.7% | | Adjusted EBITDA (% of net sales) | 11.9% | 12.2% | -0.3 pp | - **151,584 shares** were repurchased under the share repurchase authorization at an average price of **$14.82**[10](index=10&type=chunk) [Sales by Market Segment](index=7&type=section&id=Sales%20by%20Market%20Segment) Product sales declined in truck and powersports segments for Q2 and H1 2025, while industrial and utilities grew Product Sales by Market (in thousands) | Market Segment | Q2 2025 | Q2 2024 | Q2 Change (%) | H1 2025 | H1 2024 | H1 Change (%) | | :----------------------- | :------ | :------ | :------------ | :------ | :------ | :------------ | | Medium and heavy-duty truck | $31,246 | $46,841 | -33.3% | $60,806 | $88,350 | -31.1% | | Power sports | $14,208 | $20,902 | -32.0% | $28,414 | $39,761 | -28.5% | | Building products | $4,671 | $5,429 | -13.9% | $11,050 | $11,974 | -7.7% | | Industrial and utilities | $5,874 | $4,175 | +40.7% | $11,244 | $7,521 | +49.5% | | All other | $5,634 | $6,609 | -14.7% | $11,131 | $12,181 | -8.6% | | **Net product revenue** | **$61,633** | **$83,956** | **-26.6%** | **$122,645** | **$159,787** | **-23.3%** | [Financial Position](index=2&type=section&id=Financial%20Position) As of June 30, 2025, the company maintained strong liquidity, a healthy debt profile, and continued growth investments Financial Position Highlights (as of June 30, 2025) | Metric | Amount | | :-------------------------------- | :------ | | Total liquidity | $93.2M | | Cash | $43.2M | | Undrawn revolving credit facility | $25.0M | | Undrawn capex credit facility | $25.0M | | Term debt | $20.6M | | Term debt-to-trailing twelve months Adjusted EBITDA | <1x | | Capital expenditures (first six months 2025) | $4.4M | | Anticipated 2025 Capital Expenditures | $10M - $12M | | Anticipated Volvo Mexico program investment (by end of 2025) | $8M - $10M | | Return on Capital Employed (TTM) | 7.2% | | Return on Capital Employed (TTM, excluding cash) | 9.6% | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) Statements of operations show decreased net sales and profitability for Q2 and H1 2025, driven by lower product sales Consolidated Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Products net sales | $61,633 | $83,956 | $122,645 | $159,787 | | Tooling net sales | $17,606 | $4,787 | $18,041 | $7,101 | | **Total net sales** | **$79,239** | **$88,743** | **$140,686** | **$166,888** | | Total cost of sales | $64,925 | $71,018 | $114,589 | $135,858 | | **Gross margin** | **$14,314** | **$17,725** | **$26,097** | **$31,030** | | Selling, general and administrative expense | $9,100 | $10,236 | $18,044 | $18,810 | | **Operating income** | **$5,214** | **$7,489** | **$8,053** | **$12,220** | | Income before income taxes | $5,363 | $7,665 | $8,296 | $12,451 | | Income tax expense | $1,311 | $1,246 | $2,061 | $2,273 | | **Net income** | **$4,052** | **$6,419** | **$6,235** | **$10,178** | | Diluted Net income per common share | $0.47 | $0.73 | $0.72 | $1.15 | [Consolidated Balance Sheets](index=8&type=section&id=Balance%20Sheets) The balance sheet as of June 30, 2025, shows increased total assets and equity, with higher cash and accounts receivable Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $43,212 | $41,803 | | Accounts receivable, net | $37,792 | $30,118 | | Inventories, net | $19,356 | $18,346 | | **Total current assets** | **$113,193** | **$102,888** | | Property, plant and equipment, net | $79,203 | $80,807 | | **Total Assets** | **$219,924** | **$209,550** | | Current portion of long-term debt | $1,814 | $1,814 | | Accounts payable | $22,630 | $17,115 | | **Total current liabilities** | **$39,685** | **$36,711** | | Long-term debt | $18,797 | $19,706 | | **Total Liabilities** | **$66,463** | **$62,189** | | **Total Stockholders' Equity** | **$153,461** | **$147,361** | | Total Liabilities and Stockholders' Equity | $219,924 | $209,550 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) H1 2025 saw significantly decreased operating cash flow, stable investing cash flow, and increased financing cash use Consolidated Statements of Cash Flows (in thousands) | Metric | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Net cash provided by operating activities | $9,594 | $20,943 | | Net cash used in investing activities | $(4,387) | $(4,805) | | Net cash used in financing activities | $(3,798) | $(2,455) | | Net change in cash and cash equivalents | $1,409 | $13,683 | | Cash and cash equivalents at end of period | $43,212 | $37,787 | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Definitions](index=10&type=section&id=Non-GAAP%20Definitions) The company uses non-GAAP financial measures for performance insights, reconciled to comparable GAAP results - **Adjusted EBITDA** represents net income before interest expense, income taxes, depreciation and amortization, share-based compensation, restructuring and severance costs, and nonrecurring legal settlement costs[24](index=24&type=chunk) - **Free Cash Flow** is defined as net cash provided by operating activities less purchase of property, plant and equipment[24](index=24&type=chunk) - **TTM Return on Capital Employed** is calculated as TTM earnings before interest and taxes divided by stockholders' equity and total debt[24](index=24&type=chunk) [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA decreased for Q2 and H1 2025, reflecting the overall decline in net income Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Adjusted EBITDA | $9,544 | $11,563 | $16,708 | $20,306 | | Adjusted EBITDA as a percent of net sales | 12.0% | 13.0% | 11.9% | 12.2% | [Debt and Capital Employed Metrics](index=11&type=section&id=Debt%20and%20Capital%20Employed%20Metrics) The company maintained a healthy debt-to-Adjusted EBITDA ratio and reported TTM Return on Capital Employed Debt and Capital Employed Metrics (in thousands) | Metric | Value | | :-------------------------------- | :---- | | Total Outstanding Term Debt as of June 30, 2025 | $20,611 | | Trailing Twelve Months Adjusted EBITDA | $30,205 | | Debt to Trailing Twelve Months Adjusted EBITDA | 0.68 | | Trailing Twelve Months Return on Capital Employed | 7.2% | | Trailing Twelve Months Return on Capital Employed, Excluding Cash | 9.6% | [Free Cash Flow](index=12&type=section&id=Free%20Cash%20Flow) H1 2025 free cash flow significantly decreased, primarily due to lower cash flow from operations Free Cash Flow (in thousands) | Metric | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Cash flow provided by operations | $9,594 | $20,943 | | Purchase of property, plant and equipment | $(4,387) | $(4,805) | | **Free cash flow** | **$5,207** | **$16,138** | [Adjusted Net Income per Share](index=14&type=section&id=Adjusted%20Net%20Income%20per%20Share) Adjusted net income and diluted EPS for Q2 and H1 2025 were lower, impacted by severance and optimization costs Adjusted Net Income per Share (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net Income | $4,052 | $6,419 | $6,235 | $10,178 | | Severance costs (net of tax) | $378 | $— | $773 | $— | | Footprint optimization costs (net of tax) | $158 | $— | $158 | $— | | **Adjusted net income** | **$4,588** | **$6,419** | **$7,166** | **$10,178** | | Diluted Net income per share | $0.47 | $0.73 | $0.72 | $1.15 | | Diluted Adjusted net income per share | $0.53 | $0.73 | $0.83 | $1.15 | [Corporate Information](index=3&type=section&id=Corporate%20Information) [About Core Molding Technologies, Inc.](index=3&type=section&id=Company%20Profile) Core Molding Technologies is a leading engineered materials company specializing in molded structural products across North America - The company specializes in molded structural products for building products, utilities, transportation, and powersports industries[12](index=12&type=chunk) - Core Molding Technologies offers various manufacturing processes, including compression molding (**SMC**), resin transfer molding (**RTM**), liquid molding (**DCPD**), spray-up, hand-lay-up, direct long-fiber thermoplastics (**DLFT**), and **structural foam/web injection molding**[12](index=12&type=chunk) - Key markets served include **medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products**[12](index=12&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks, and actual results may differ from expectations - Forward-looking statements are identified by words such as '**believe**', '**anticipate**', '**plan**', '**expect**', '**intend**', '**will**', and similar expressions[13](index=13&type=chunk) - Factors that could cause actual results to differ include dependence on major customers, macroeconomic conditions, market volatility, inflationary pressures, industry changes, and regulatory matters[13](index=13&type=chunk) - The company undertakes no obligation to update or revise forward-looking statements[13](index=13&type=chunk) [Company and Investor Relations Contact](index=5&type=section&id=Investor%20Relations) Contact information for the CFO and Investor Relations representatives is provided for inquiries - Company Contact: Alex Panda, Executive Vice President & Chief Financial Officer, **apanda@coremt.com**[14](index=14&type=chunk) - Investor Relations Contact: Three Part Advisors, LLC, Sandy Martin or Steven Hooser, **smartin@threepa.com**, **shooser@threepa.com**, **214-616-2207**[14](index=14&type=chunk)

Core Insights - Core Molding Technologies, Inc. reported new business wins of $47 million in the first half of 2025, with a focus on its "Invest For Growth" strategy, which aims to enhance long-term growth through strategic investments and partnerships [2][3] - The company announced an organic investment of $25 million to expand its Matamoros plant and establish a new facility in Monterrey, Mexico, which is expected to support new business opportunities, including a significant program with Volvo [3][5] Financial Performance - For the second quarter of 2025, total net sales were $79.2 million, a decrease of 10.7% compared to the same period in the previous year [6] - Gross margin for the second quarter was $14.3 million, or 18.1% of net sales, down from 20.0% in the prior year, primarily due to unfavorable fixed cost leverage and lower operational efficiencies [6][13] - The company reported a net income of $4.1 million, or $0.47 per diluted share, compared to $6.4 million, or $0.73 per diluted share in the prior year [13] Operational Highlights - The company generated $9.6 million in cash from operations and $5.2 million in free cash flow, maintaining a strong balance sheet with total liquidity of $93.2 million as of June 30, 2025 [5][10] - Capital expenditures for the first six months of 2025 were $4.4 million, with expectations to spend approximately $10 to $12 million throughout the year [9] Market Outlook - The company anticipates a year-over-year sales comparison improvement in the second half of 2025, projecting a manageable decline of 4% to 6% [4] - The sales mix is expected to be impacted by higher tooling sales, which may pressure gross margins compared to product sales [4] Strategic Initiatives - The "Invest For Growth" strategy is a key focus for the company, with organic growth prioritized in capital allocation, including the recent Volvo Mexico program [3][5] - The company aims to generate approximately $150 million in revenues over the next seven to ten years from long-term programs initiated with new customers [3]

Group 1 - Core Molding Technologies, Inc. will release its second quarter fiscal 2025 results on August 5, 2025, before market opens [1] - A conference call will be held on the same day at 10:00 am Eastern, available via phone and webcast [1] - The company specializes in molded structural products across various industries including building products, utilities, transportation, and powersports in North America [2] Group 2 - Core Molding operates in one segment as a molder of thermoplastic and thermoset structural products [2] - The company offers a variety of manufacturing processes such as compression molding, resin transfer molding, and structural foam injection molding [2] - Demand for Core Molding's products is influenced by economic conditions in the United States, Mexico, and Canada [2]