Core Molding Technologies Reports Fiscal 2025 Second Quarter Results

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]