CORE MOLDING TECHNOLOGIES INC

Previous wording

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 wording

Looking forward, based on industry analyst projections, customer forecasts, anticipated price changes, as well as anticipated new program launches, the Company expects revenues for 2025 to decrease by approximately 10 to 12 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.

Previous 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):

Current wording

Net sales for the three months ended September 30, 2025 and 2024 totaled $58,435,000 and $72,992,000, respectively. Included in net sales were tooling project sales of $4,257,000 and $1,734,000 for the three months ended September 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 September 30, 2025 were $54,178,000 compared to $71,258,000 for the same period in 2024. The decrease in sales is primarily the result of lower demand from the 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 and new product launches in the Power Sports, Building Products and industrial and utilities market. The Company's product sales for the three months ended September 30, 2025 compared to the same period in 2024 by market are as follows (in thousands):

Previous 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%.

Current wording

Gross margin was 17.4% and 16.9% of sales for the three months ended September 30, 2025 and 2024, respectively. Gross margin compared to last year was favorably impacted by higher operational efficiencies and product mix of 1.6%, offset by lower fixed cost leverage of 0.8% and net changes in selling price and raw material costs of 0.3%.

Previous 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.

Current wording

Selling general and administrative expense ("SG&A") was $7,572,000 for the three months ended September 30, 2025, which includes portfolio optimization related expense of $220,000. Excluding portfolio optimization costs, SG&A cost for the three months ended September 30, 2025 totaled $7,352,000 compared to $8,740,000 for the three months ended September 30, 2024. Decreased SG&A expenses resulted primarily from favorable foreign currency translation of $620,000, lower bonus of $208,000 and lower labor and benefits costs of $134,000.

Previous 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.

Current wording

Net interest expense totaled $34,000 for the three months ended September 30, 2025, compared to net interest income of $144,000 for the three months ended September 30, 2024. Higher interest expense was primarily due to lower interest income of $184,000 from cash accumulation.

Previous 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.

Current wording

Income tax expense for the three months ended September 30, 2025 is estimated to be $779,000, approximately 29.3% of income before income taxes. Income tax expense for the three months ended September 30, 2024 was estimated to be $727,000, approximately 18.7% 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 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.

Current wording

The Company recorded net income for the three months ended September 30, 2025 of $1,877,000 or $0.22 per basic and diluted share compared with net income of $3,160,000, or $0.36 per basic and diluted share, for the three months ended September 30, 2024.

Previous 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.

Current wording

Comprehensive income totaled $1,491,000 for the three months ended September 30, 2025, compared to comprehensive income of $1,767,000 for the same period ended September 30, 2024. The decrease was primarily related to lower in net income of $1,283,000, offset by hedging activities of $995,000.

Previous wording

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 wording

Net sales for the nine months ended September 30, 2025 and 2024 totaled $199,121,000 and$239,880,000, respectively. Included in net sales were tooling project sales of $22,298,000 and $8,835,000 for the nine months ended September 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 nine months ended September 30, 2025 were$176,823,000 compared to$231,045,000 for the same period in 2024. The decrease in sales is primarily the result of lower demand from the medium and heavy-duty truck and power sports, 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 nine months ended September 30, 2025 compared to the same period in 2024 by market are as follows (in thousands):

Previous wording

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 wording

Gross margin was approximately 18.2% of sales for the nine months ended September 30, 2025, compared with 18.1% for the same period in 2024. Gross margin compared to last year increased due to higher net changes in selling price and raw material costs of 1.2%, offset by lower fixed cost leverage of 0.8% and operational inefficiencies and product mix of 0.3%.

Previous wording

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 wording

SG&A was $25,616,000 for the nine months ended September 30, 2025, which included severance of $979,000 and portfolio optimization related expense of $420,000. Excluding severance and portfolio optimization costs, SG&A cost for the nine months ended September 30, 2025 totaled $24,217,000 compared to SG&A costs of $27,550,000 for the same period in 2024. Decreased SG&A expenses resulted primarily from lower bonus $1,405,000, favorable foreign currency translation of $1,202,000 and lower labor and benefits costs of $858,000.

Previous wording

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 wording

Net interest expense totaled $18,000 for the nine months ended September 30, 2025 compared to net interest income of $99,000 for the same period in 2024. Higher interest expense was primarily due to lower interest income of $275,000 from cash accumulation.

Previous wording

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.

Current wording

Income tax expense for the nine months ended September 30, 2025 is estimated to be $2,840,000, approximately 25.9% of income before income taxes. Income tax expense for the same period in 2024 was estimated to be $3,000,000, approximately 18.4% 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 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 wording

The Company recorded net income for the nine months ended September 30, 2025 of $8,112,000 or $0.95 per basic share and $0.93 per diluted share, compared with net income of $13,338,000, or $1.53 per basic and $1.51 diluted share, for the same period in 2024.

Previous wording

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.

Current wording

Comprehensive income totaled $9,314,000 for the nine months ended September 30, 2025, compared to comprehensive income of $10,620,000 for the same period in 2024. The decrease was primarily related to lower net income of $5,226,000 offset by foreign currency hedging activity of $3,933,000.

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 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.

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 September 30, 2025, the Company had outstanding foreign exchange contracts with notional amounts totaling $7,354,000. As of September 30, 2025, the Company had outstanding interest rate swaps with notional amounts totaling $20,312,000.

Previous 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.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2025 totaled $14,166,000. Net income of $8,112,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization, and share-based compensation included in net income amounted to $9,504,000 and $1,646,000, respectively. Increased working capital decreased cash provided by operating activities by $4,815,000. Higher working capital was primarily related to changes in accounts receivable, inventories, and prepaid and other assets offset by accounts payable.

Previous 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.

Current wording

Cash used in investing activities for the nine months ended September 30, 2025 was $9,305,000, which related to purchases of property, plant and equipment. The Company anticipates spending approximately $18,000,000 to $22,000,000 during 2025 on property, plant and equipment purchases for all of the Company's operations, including the Mexico expansion. Following the award of the Volvo Mexico business, the Company announced an invest of approximately $25,000,000 over the next 18 months, with $8,000,000 to $10,000,000 million anticipated to be spent by the end of fiscal 2025 and $2,475,000 spent during the three months ended September 30, 2025. At September 30, 2025, purchase commitments for capital expenditures in progress were $8,948,000. 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 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.

Current wording

Cash used for financing activities for the nine months ended September 30, 2025 totaled $4,267,000, which consisted of purchase of treasury stock of $2,249,000, repayments of long-term debt of $1,418,000 and $600,000 for the purchase of treasury stock in exchange for payment of taxes related to net shares settlements of equity awards.

Previous 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.

Current wording

At September 30, 2025, the Company had $42,397,000 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

The interest rate for the Huntington Revolving Loan was 6.08% and 6.33% as of June 30, 2025 and December 31, 2024, respectively.

Current wording

The interest rate for the Huntington Revolving Loan was 5.93% and 6.33% as of September 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 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.

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 5.93% and 6.11% as of September 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 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.

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 September 30, 2025 and December 31, 2024. The fair value of the interest rate swap was an asset of $138,000 and $491,000 at September 30, 2025 and December 31, 2024, respectively.