Core Insights - Core Molding Technologies, Inc. anticipates a 10% to 12% decline in full-year sales for 2025 compared to the previous year, while positioning itself for accelerated program launches in 2026 [1][3] - The company has secured $47 million in new incremental business expected to launch over the next two years, focusing on market share gains and new business opportunities [2] - Strategic investments of $25 million in organic growth are underway, including expansions at the Matamoros plant and a new facility in Monterrey, Mexico [2] Financial Performance - Total net sales for Q3 2025 were $58.4 million, a decrease of 19.9% year-over-year, with a gross margin of 17.4% [6][15] - For the nine-month period ending September 30, 2025, total net sales were $199.1 million, down 17.0% from the prior year [6][15] - The company maintained gross margins within the range of 17% to 19%, despite sales declines, by focusing on operational excellence and cost control [3] Operational Efficiency - The company achieved a record low scrap rate of 2%, zero inventory variance, and on-time delivery rates above 98% [3] - Adjusted EBITDA for Q3 2025 was $6.4 million, or 11.0% of net sales, compared to $7.5 million, or 10.3% for the prior year [6][30] Capital Expenditures and Financial Position - Capital expenditures for the first nine months of 2025 were $9.3 million, with an anticipated total of $10 to $12 million for the year [8] - As of September 30, 2025, the company had total liquidity of $92.4 million, including $42.4 million in cash [9][20] Market Segmentation - In Q3 2025, the medium and heavy-duty truck segment generated $19.5 million in sales, down from $41.3 million in the prior year [18] - The power sports segment saw sales of $17.5 million, compared to $16.5 million in the previous year [18]

Core Insights - Core Molding Technologies reported a net sales decrease of 21.4% year-over-year for Q1 2025, totaling $61.4 million, primarily due to the phase-out of a truck program and weakened consumer demand in powersports [3][4][6] - Despite the revenue decline, the company achieved a gross margin of $11.8 million, representing 19.2% of net sales, an increase from 17.0% in the prior year [4][6] - Operating income fell to $2.8 million, or 4.6% of net sales, down from $4.7 million, or 6.1% of net sales, in the same quarter last year [4][6] - Net income decreased by 41.9% to $2.2 million, or $0.25 per diluted share, compared to $3.8 million, or $0.43 per diluted share, in Q1 2024 [4][6] - Adjusted EBITDA was $7.2 million, or 11.7% of net sales, down from $8.7 million, but improved sequentially from 9.2% in the previous quarter [4][6] Financial Performance - Selling, general, and administrative expenses increased to $8.9 million, or 14.6% of net sales, compared to $8.6 million, or 11.0% in Q1 2024 [4][6] - The company repurchased 63,377 shares at an average price of $14.50, investing approximately $2 million in stock buybacks in 2025 [4][7] - Total liquidity at the end of Q1 2025 was $94.5 million, including $44.5 million in cash and $50 million in undrawn credit facilities [8] Market Outlook - The trucking sector is experiencing varied demand scenarios for 2025, with expectations of a recovery in the second half of the year driven by pre-buy activity and new program launches [5][6] - The company anticipates that its sales mix will shift towards higher Tooling sales, which typically have lower gross margins than Product sales, impacting overall profitability [6] - Core Molding expects full-year gross margins to remain in the range of 17% to 19% despite the projected mix shift [6]