Core Molding Technologies Reports Q1 2025 Results

Core Molding ( (CMT) ) has released its Q1 earnings. Here is a breakdown of the information Core Molding presented to its investors.

Core Molding Technologies is a prominent engineered materials company that specializes in molded structural products, serving industries such as building products, industrial utilities, and transportation across North America. The company operates as a molder of thermoplastic and thermoset structural products, offering a diverse range of manufacturing processes to meet various program volume and investment needs.

In its latest earnings report, Core Molding Technologies announced a decline in total net sales by 21.4% to $61.4 million for the first quarter of 2025 compared to the same period last year. Despite the drop in sales, the company achieved a gross margin increase to 19.2% of net sales, up from 17.0% the previous year, reflecting improved operational efficiency.

Key financial metrics revealed a decrease in net income to $2.2 million, or $0.25 per diluted share, from $3.8 million, or $0.43 per diluted share, in the prior year’s first quarter. However, the adjusted EBITDA as a percentage of net sales improved sequentially to 11.7% from 9.2% in the previous quarter. The company also repurchased 63,377 shares under its share repurchase authorization, indicating confidence in its long-term strategy.

The management highlighted the successful execution of its ‘Invest for Growth’ strategy, securing $15 million in new business wins, predominantly from new customer agreements for formulated sheet molding compound materials. Looking ahead, Core Molding anticipates a recovery in the second half of the year, driven by pre-buy activity in the trucking sector and new program launches.

In conclusion, Core Molding Technologies remains focused on strategic growth initiatives, supported by a robust liquidity position of $94.5 million. The company is cautiously optimistic about the remainder of 2025, with expectations of maintaining gross margins in the 17% to 19% range, despite ongoing macroeconomic uncertainties.