CORE MOLDING TECHNOLOGIES INC
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
CMT$21.67+2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001026655-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001026655-25-000071
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 80 previous paragraphs and 86 current paragraphs.
59 unchanged; 18 reworded; 7 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 1 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Looking forward, based on industry analyst projections, customer forecasts, anticipated price changes, as well as anticipated new program launches, the Company expects revenues for second half of the calendar year 2025 to decrease by approximately 4 to 6 percent as compared to 2024. The Company still anticipates a change in mix in 2025 as compared to 2024 between product revenues and tooling revenues as new programs launch during 2025. Our 2025 revenue outlook also reflects ongoing market uncertainty related to tariffs, as well as expectations that heavy-duty and medium-duty truck pre-buy volumes will be more evenly distributed across future years.
Current report
Six Months Ended June 30, 2025, as Compared to Six Months Ended June 30, 2024
Current report
Gross margin was approximately 18.5% of sales for the six months ended June 30, 2025, compared with 18.6% for the same period in 2024. Gross margin compared to last year decreased due to lower fixed cost leverage of 1.9%, offset by higher net changes in selling price and raw material costs of 1.5% and operational efficiencies and product mix of 0.3%.
Current report
SG&A was$18,044,000 for the six months ended June 30, 2025, which included severance of $979,000 and one-time transition related expense of $200,000. Excluding severance and one-time portfolio optimization costs, SG&A cost for the six months ended June 30, 2025 totaled $16,865,000 compared to SG&A costs of$18,810,000 for the same period in 2024. Decreased SG&A expenses resulted primarily from lower bonus and labor and benefits of $1,537,000 and favorable foreign currency translation of $582,000.
Current report
Net interest income totaled $16,000 for the six months ended June 30, 2025 compared to net interest expense of$45,000 for the same period in 2024. Lower interest expense was primarily due to higher interest income of $77,000 from cash accumulation.
Current report
The Company recorded net income for the six months ended June 30, 2025 of $6,235,000 or$0.73 perbasic share and $0.72 per diluted share, compared with net income of$10,178,000, or $1.17 per basic and $1.15 diluted share, for the same period in 2024.
Current report
Comprehensive income totaled $7,823,000 for the sixmonths ended June 30, 2025, compared to comprehensive income of$8,853,000 for the same period in 2024. The decrease was primarily related to lower net income of $3,943,000 offset by an increase in valuation of foreign currency hedging of $3,340,000.
Removed paragraphs (3)
Previous report
Looking forward, based on industry analyst projections, customer forecasts, cyclical demand, and customer programs ramping down throughout 2025, offset by anticipated program launches and price changes, the Company expects revenues for first half of the calendar year 2025 to decrease by approximately 10 to 15 percent as compared to 2024. For the full year 2025 macro-economic and potential regulatory changes, including rapidly changing tariff rates and the resulting impact to the economy and potential changes to EPA regulations, may impact our customers demand levels which would decrease our revenues. The Company still expects a change in revenue mix in 2025 as compared to 2024 between product revenues and tooling revenues as new programs launch during 2025 increasing tooling revenues compared to 2024.
Previous report
Leaf Capital Funding
Previous report
On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.50% and a term of 60 months.
Reworded paragraphs (18)
Previous wording
The Company’s raw material supply chains remain stable, and raw material pricing in 2025 is expected to remain flat or experience a slight increase relative to 2024. Given that the majority of the Company’s raw materials are sourced domestically within the United States, and that its operations in Mexico and Canada comply with the United States-Mexico-Canada Agreement ("USMCA"), tariffs currently are not anticipated to have a material impact on raw material costs. Future changes to tariff rates or application of tariffs to other countries and materials could have an impact on the Company’s, material cost.
Current wording
The Company’s raw material supply chains remain stable, and the Company anticipates raw material pricing in 2025 to remain flat or experience a slight increase relative to 2024. Given that the majority of the Company’s raw materials are sourced domestically within the United States, and that its operations in Mexico and Canada comply with the United States-Mexico-Canada Agreement ("USMCA"), tariffs currently are not anticipated to have a material impact on raw material costs. Future changes to tariff rates or application of tariffs to other countries and materials could have an impact on the Company’s, material cost.
Previous wording
Net sales for the three months ended March 31, 2025 and 2024 totaled $61,447,000 and $78,145,000, respectively. Included in net sales were tooling project sales of $435,000 and $2,314,000 for the three months ended March 31, 2025 and 2024, respectively. Tooling sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the three months ended March 31, 2025 were $61,012,000 compared to $75,831,000 for the same period in 2024. The decrease in sales is primarily the result of lower demand in power sports and medium and heavy-duty truck markets, including transitioning the Company's business with Volvo from existing programs that the Company currently supplies to new programs that the Company does not support. The Company's product sales for the three months ended March 31, 2025 compared to the same period in 2024 by market are as follows (in thousands):
Current wording
Net sales for the three months ended June 30, 2025 and 2024 totaled $79,239,000 and $88,743,000, respectively. Included in net sales were tooling project sales of $17,606,000 and $4,787,000 for the three months ended June 30, 2025 and 2024, respectively. Tooling sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the three months ended June 30, 2025 were $61,633,000 compared to $83,956,000 for the same period in 2024. The decrease in sales is primarily the result of lower demand from the power sports and medium and heavy-duty truck, including transitioning the Company's business with Volvo from existing programs that the Company currently supplies to new programs that the Company does not support, offset by demand increase in the industrial and utilities market and new program launches. The Company's product sales for the three months ended June 30, 2025 compared to the same period in 2024 by market are as follows (in thousands):
Previous wording
Gross margin was 19.2% and 17.0% of sales for the three months ended March 31, 2025 and 2024, respectively. Gross margin compared to last year was favorably impacted by changes in selling price and raw material costs of 2.8% and product mix and operational efficiencies of 1.1%, offset by lower fixed cost leverage of 1.7%.
Current wording
Gross margin was 18.1% and 20.0% of sales for the three months ended June 30, 2025 and 2024, respectively. Gross margin compared to last year was unfavorably impacted by fixed cost leverage of 2.2% and unfavorable sales mix of 0.9%, offset by higher net changes in selling price and raw material costs of 1.2%.
Previous wording
Selling general and administrative expense ("SG&A") was $8,944,000 for the three months ended March 31, 2025, which included severance expense of $500,000. Excluding severance expense, SG&A cost for the three months ended March 31, 2025 totaled $8,444,000 compared to $8,573,000 for the three months ended March 31, 2024. Decreased SG&A expenses resulted primarily from lower labor and benefits, including bonus, of $515,000, offset by higher foreign currency of $343,000.
Current wording
Selling general and administrative expense ("SG&A") was $9,100,000 for the three months ended June 30, 2025, which included severance expense of $479,000 and one-time transition related expense of $200,000. Excluding severance and one-time portfolio optimization costs, SG&A cost for the three months ended June 30, 2025 totaled $8,421,000 comp ared to $10,236,000 for the three months ended June 30, 2024. Decreased SG&A expenses resulted primarily from lower bonus and labor and benefits of $1,021,000 and favorable foreign currency translation of $925,000.
Previous wording
Net interest expense totaled $16,000 for the three months ended March 31, 2025, compared to $82,000 for the three months ended March 31, 2024. Lower interest was primarily due to higher interest income from cash accumulation of $90,000.
Current wording
Net interest income totaled $32,000 for the three months ended June 30, 2025, compared to net interest income of $38,000 for the three months ended June 30, 2024. Lower interest income was primarily due to lower interest income of $86,000 from cash accumulation.
Previous wording
Income tax expense for the three months ended March 31, 2025 is estimated to be $750,000, approximately 25.6% of income before income taxes. Income tax expense for the three months ended March 31, 2024 was estimated to be $1,029,000, approximately 21.5% of income before income taxes. The Company’s effective tax rates reflect the effects of taxable income being generated in higher tax rate jurisdictions while taxable losses are being generated in lower tax rate jurisdictions.
Current wording
Income tax expense for the three months ended June 30, 2025 is estimated to be $1,311,000, approximately 24.4% of income before income taxes. Income tax expense for the three months ended June 30, 2024 was estimated to be $1,246,000, approximately 16.3% of income before income taxes. The Company’s effective tax rates reflect the effects of taxable income being generated in higher tax rate jurisdictions and lower FDII benefit.
Previous wording
The Company recorded net income for the three months ended March 31, 2025 of $2,183,000 or $0.25 perbasic and diluted share compared with net income of $3,759,000, or $0.43 per basic and diluted share, for the three months ended March 31, 2024.
Current wording
The Company recorded net income for the three months ended June 30, 2025 of $4,052,000 or $0.47 perbasic and diluted share compared with net income of $6,419,000, or $0.74 per basic and $0.73 diluted share, for the three months ended June 30, 2024.
Previous wording
Comprehensive income totaled $3,061,000 for the three months ended March 31, 2025, compared to comprehensive income of $3,465,000 for the same period ended March 31, 2024. The decrease was primarily related to the decrease in net income of $1,576,000, offset by hedging activity of $1,157,000.
Current wording
Comprehensive income totaled $4,762,000 for the three months ended June 30, 2025, compared to comprehensive income of $5,388,000 for the same period ended June 30, 2024. The decrease was primarily related to lower in net income of $2,367,000, offset by a increase in valuation of foreign currency hedging of $1,818,000.
Previous wording
Historically, the Company’s primary sources of funds have been cash generated from operating activities and borrowings from third parties. Primary cash requirements are for operating expenses, capital expenditures, repayments of debt, and acquisitions. The Company from time to time will enter into foreign exchange contracts and interest rate swaps to mitigate risk of foreign exchange and interest rate volatility. As of March 31, 2025, the Company had outstanding foreign exchange contracts with notional amounts totaling $19,261,000. As of March 31, 2025, the Company had outstanding interest rate swaps with notional amounts totaling $21,250,000.
Current wording
Historically, the Company’s primary sources of funds have been cash generated from operating activities and borrowings from third parties. Primary cash requirements are for operating expenses, capital expenditures, repayments of debt, and acquisitions. The Company from time to time will enter into foreign exchange contracts and interest rate swaps to mitigate risk of foreign exchange and interest rate volatility. As of June 30, 2025, the Company had outstanding foreign exchange contracts with notional amounts totaling $10,725,000. As of June 30, 2025, the Company had outstanding interest rate swaps with notional amounts totaling $20,781,000.
Previous wording
Cash provided by operating activities for the three months ended March 31, 2025 totaled $6,099,000. Net income of $2,183,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization, and share-based compensation included in net income amounted to $3,214,000 and $631,000, respectively. Increased working capital decreased cash provided by operating activities by $145,000. Higher working capital was primarily related to changes in accounts receivable, prepaid assets, and accrued liabilities offset by accounts payable.
Current wording
Cash provided by operating activities for the six months ended June 30, 2025 totaled $9,594,000. Net income of $6,235,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization, and share-based compensation included in net income amounted to $6,391,000 and $1,125,000, respectively. Increased working capital decreased cash provided by operating activities by $3,941,000. Higher working capital was primarily related to changes in accounts receivable, inventories, and accrued liabilities offset by accounts payable.
Previous wording
Cash used in investing activities for the three months ended March 31, 2025 was $1,772,000, which related to purchases of property, plant and equi pment. The Company anticipates spending approximately $10,000,000 to$12,000,000 during 2025 on property, plant and equipment purchases for all of the Company's operations. At March 31, 2025, purchase commitments for capital expenditures in progress were $2,653,000. The Company anticipates using cash from operations, its available revolving line of credit or its capex line to fund capital investments.
Current wording
Cash used in investing activities for the six months ended June 30, 2025 was $4,387,000, which related to purchases of property, plant and equi pment. The Company anticipates spending approximately $10,000,000 to $12,000,000 during 2025 on property, plant and equipment purchases for all of the Company's operations. Following the award of the Volvo Mexico business, the Company expects to invest approximately $25 million over the next 18 months, with $8 to $10 million anticipated to be spent by the end of fiscal 2025. At June 30, 2025, purchase commitments for capital expenditures in progress were $2,893,000. The Company anticipates using cash from operations, its available revolving line of credit or its capex line to fund capital investments.
Previous wording
Cash used in financing activities for the three months ended March 31, 2025 totaled $1,656,000, which consisted of treasury stock related to the Company's stock buy back plan of $916,000, purchase of treasury stock of $262,000 in exchange for payment of taxes related to net shares settlements of equity awards and repayments of long-term debt of $478,000.
Current wording
Cash used for financing activities for the six months ended June 30, 2025 totaled $3,798,000, which consisted of purchase of treasury stock of $2,249,000, repayments of long-term debt of $949,000 and the purchase of treasury stock of $600,000 in exchange for payment of taxes related to net shares settlements of equity awards.
Previous wording
At March 31, 2025, the Company had $44,474,000 cash on hand, a $25,000,000 revolving loan facility of which none is outstanding, and a $25,000,000 Capex loan facility with no outstanding balance.
Current wording
At June 30, 2025, the Company had $43,212,000 cash on hand, a $25,000,000 revolving loan facility of which none is outstanding, and a $25,000,000 Capex loan facility with no outstanding balance.
Previous wording
Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured Capex loan (the “Huntington Capex Loan”) in the maximum aggregate principal amount of $25,000,000. Proceeds of the Huntington Capex Loan will be used to finance the ongoing capital expenditure needs of the Company.
Current wording
Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured Capex loan (the “Huntington Capex Loan”) in the maximum aggregate principal amount of $25,000,000 which none was outstanding as of June 30, 2025 and December 31, 2024. Proceeds of the Huntington Capex Loan will be used to finance the ongoing capital expenditure needs of the Company.
Previous wording
Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a revolving loan commitment (the “Huntington Revolving Loan”) of $25,000,000. The Company has $25,000,000 of available revolving loans of which none was outstanding as of March 31, 2025 and December 31, 2024, respectively.
Current wording
Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a revolving loan commitment (the “Huntington Revolving Loan”) of $25,000,000. The Company has $25,000,000 of available revolving loans of which none was outstanding as of June 30, 2025 and December 31, 2024.
Previous wording
The interest rate for the Huntington Revolving Loan was 6.11% and 6.33% as of March 31, 2025 and December 31, 2024, respectively.
Current wording
The interest rate for the Huntington Revolving Loan was 6.08% and 6.33% as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a Term Loan commitment (the “Huntington Term Loan”) of $25,000,000 ($25,000,000 of which was advanced to the Company on July 22, 2022). The Huntington Term Loan is to be repaid in monthly installments beginning August 2022 of $104,000 per month for the first 24 months, $156,000 per month for the next 24 months, $208,000 for the next 12 months and the remaining balance to be paid on July 22, 2027. The interest rate for the Huntington Term Loan was 6.11% as of March 31, 2025 and December 31, 2024.
Current wording
Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a Term Loan commitment (the “Huntington Term Loan”) of $25,000,000 all of which was advanced to the Company on July 22, 2022). The Huntington Term Loan is to be repaid in monthly installments beginning August 2022 of $104,000 per month for the first 24 months, $156,000 per month for the next 24 months, $208,000 for the next 12 months and the remaining balance to be paid on July 22, 2027. The interest rate for the Huntington Term Loan was 6.08% and 6.11% as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
The Company entered into an interest rate swap agreement that became effective July 22, 2022 and continues through July 2027, which was designed as a cash flow hedge for $25,000,000 of the Huntington Term Loan. Under this agreement, the Company will pay a fixed rate of 2.95% to the swap counterparty in exchange for the Term Loans daily variable SOFR. As a result the interest rate paid on the Huntington Term Loan was 4.75% as of March 31, 2025 and December 31, 2024. The fair value of the interest rate swap was an asset of $299,000 and $491,000 at March 31, 2025 and December 31, 2024, respectively.
Current wording
The Company entered into an interest rate swap agreement that became effective July 22, 2022 and continues through July 2027, which was designed as a cash flow hedge for $25,000,000 of the Huntington Term Loan. Under this agreement, the Company will pay a fixed rate of 2.95% to the swap counterparty in exchange for the Term Loans daily variable SOFR. As a result the interest rate paid on the Huntington Term Loan was 4.75% as of June 30, 2025 and December 31, 2024. The fair value of the interest rate swap was an asset of $187,000 and $491,000 at June 30, 2025 and December 31, 2024, respectively.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net sales for the six months ended June 30, 2025 and 2024 totaled $140,686,000 and$166,888,000, respectively. Included in net sales were tooling project sales of $18,041,000 and $7,101,000 for the six months ended June 30, 2025 and 2024, respectively. Tooling sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the six months ended June 30, 2025 were$122,645,000 compared to$159,787,000 for the same period in 2024. The decrease in sales is primarily the result of lower demand from the power sports and medium and heavy-duty truck, including transitioning the Company's business with Volvo from existing programs that the Company currently supplies to new programs that the Company does not support, offset by new program launches. The Company's product sales for the six months ended June 30, 2025 compared to the same period in 2024 by market are as follows (in thousands):
Current report — wording carried from elsewhere
Income tax expense for the six months ended June 30, 2025 is estimated to be$2,061,000, approximately 24.8% of income before income taxes. Income tax expense for the same period in 2024 was estimated to be $2,273,000, approximately 18.3% of income before income taxes. The Company’s effective tax rates reflect the effects of taxable income being generated in higher tax rate jurisdictions and lower FDII benefit.