Core Molding ( (CMT) ) has released its Q2 earnings. Here is a breakdown of the information Core Molding presented to its investors.
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Core Molding Technologies, Inc., a prominent engineered materials company, specializes in molded structural products across various industries such as building products, transportation, and powersports in North America. The company recently released its fiscal 2025 second-quarter results, highlighting a strategic focus on growth despite a challenging market environment.
In the second quarter of 2025, Core Molding reported total net sales of $79.2 million, marking a 10.7% decrease compared to the previous year. Despite the sales decline, the company maintained a gross margin within its projected range, demonstrating resilience in a softer demand environment. The company successfully generated $9.6 million in cash from operations and $5.2 million in free cash flow, underscoring its operational efficiency.
Key financial metrics included an operating income of $5.2 million and a net income of $4.1 million, both showing a decrease from the prior year’s figures. However, the company achieved significant milestones with $47 million in new business wins and announced a $25 million investment to expand its facilities in Mexico, aiming to support future growth and enhance its capabilities.
Looking ahead, Core Molding anticipates a moderate sales decline of 4% to 6% in the second half of 2025, with a focus on higher tooling sales impacting gross margins. The company’s strong balance sheet and liquidity position it well to continue its ‘Invest for Growth’ strategy, including the expansion of its Matamoros and Monterrey plants to accommodate new business opportunities.
Core Molding remains optimistic about its long-term growth prospects, supported by strategic investments and partnerships with key customers like Volvo. The company’s management is committed to executing its growth strategy while maintaining financial discipline and returning capital to shareholders through its share repurchase program.