Core Molding Technologies(US:CMT)2025-11-04 20:18Financial Performance - Net sales for Q3 2025 were $58.435 million, a decrease of approximately 20% compared to $72.992 million in Q3 2024[111] - Product sales, excluding tooling project sales, for Q3 2025 were $54.178 million, down from $71.258 million in Q3 2024, primarily due to lower demand from medium and heavy-duty trucks[111] - Net income for Q3 2025 was $1.877 million, or $0.22 per share, compared to $3.160 million, or $0.36 per share, in Q3 2024[115] - For the nine months ended September 30, 2025, net sales totaled $199.121 million, a decrease of approximately 17% from $239.880 million in the same period of 2024[117] Gross Margin and Expenses - Gross margin for Q3 2025 was 17.4%, an increase from 16.9% in Q3 2024, driven by higher operational efficiencies[111] - The gross margin for the nine months ended September 30, 2025 was approximately 18.2%, slightly up from 18.1% in the same period of 2024[117] - SG&A expenses for Q3 2025 were $7.572 million, down from $8.740 million in Q3 2024, mainly due to favorable foreign currency translation and lower labor costs[112] - SG&A expenses for the nine months ended September 30, 2025 were $25.616 million, down from $27.550 million in the same period of 2024[118] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025 totaled $14.166 million, positively impacted by net income of $8.112 million[124] - Cash used in investing activities for the nine months ended September 30, 2025 was $9,305,000, primarily for property, plant, and equipment purchases[125] - The Company anticipates spending approximately $18,000,000 to $22,000,000 on property, plant, and equipment purchases during 2025, including the Mexico expansion[125] - Following the award of the Volvo Mexico business, the Company plans to invest approximately $25,000,000 over the next 18 months, with $8,000,000 to $10,000,000 expected to be spent by the end of fiscal 2025[125] Financing and Debt - Cash used for financing activities for the nine months ended September 30, 2025 totaled $4,267,000, including $2,249,000 for treasury stock purchases and $1,418,000 for long-term debt repayments[126] - The interest rate for the Huntington Term Loan was 5.93% as of September 30, 2025, with monthly installments beginning at $104,000[143] - 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 September 30, 2025[144] - The Company is in compliance with financial covenants associated with the Huntington Credit Agreement as of September 30, 2025[128] Market Outlook - The company expects revenues for 2025 to decrease by approximately 10 to 12 percent compared to 2024, influenced by market uncertainties and program transitions[109] Currency Risk - A hypothetical 10% decrease in the USD to MXN and CAD exchange rate would increase operating costs, adversely affecting operating margins[151] Cash Position - As of September 30, 2025, the Company had $42,397,000 cash on hand and a $25,000,000 revolving loan facility with no outstanding balance[127] - The Company has no significant off-balance sheet arrangements as of September 30, 2025[145]