CORE MOLDING TECHNOLOGIES INC
For the period ended Mar 31, 2026. Filed May 7, 2026.
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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.
Mar 31, 2026 · Filed May 7, 2026
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 2025-09-30; filed 2025-11-04.
0001026655-25-000085
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001026655-26-000028
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 86 previous paragraphs and 79 current paragraphs.
52 unchanged; 22 reworded; 4 added; 9 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 1 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 (4)
Current report
•costs and other resources related to Core Molding Technologies' efforts to expand its customer base and grow its business, and provide on-time delivery to customers;
Current report
•the Company’s decision to pursue new products and initiatives to quote and execute manufacturing processes for new business, acquire raw materials, address inflationary pressures, regulatory matters and labor relations;
Current report
Looking forward, based on industry analyst projections, customer forecasts, cyclical demand, anticipated program launches and price changes, the Company expects revenues for the calendar year 2026 to increase by approximately 0 to 5 percent as compared to 2025 and the second half of 2026 to be greater than the first half of 2026. The Company also expects a consistent mix in 2026 as compared to 2025 between product revenues and tooling revenues as new programs launch during 2026. In 2026, the Company expects to incur incremental one-time costs of approximately $3,000,000 in connection with the Mexico Expansion Project, primarily related to press relocations and the temporary overlap of two facility leases in Monterrey, as well as approximately $2,000,000 associated with the Company’s succession plan. The increase in succession plan costs is primarily due to the increase in the Company's stock price over the last 60 days. Both expenses will primarily be incurred during the first half of 2026 and will be recorded in Selling, General, and Administrative expenses.
Current report
The Company continues to monitor evolving geopolitical tensions involving Iran and any potential impact such developments may have on global supply chains, such as cost and availability. While disruptions could create volatility in the costs of certain inputs used in the Company’s manufacturing processes, the Company maintains contractual raw material adjustment mechanisms with many of its customers that allow for changes in material costs to be passed through, which may help mitigate the financial impact of such fluctuations.
Removed paragraphs (9)
Previous report
•efforts of Core Molding Technologies to expand its customer base; the ability to develop new and innovative products and to diversify markets, materials and processes and increase operational enhancements;
Previous report
•management’s decision to pursue new products or businesses which involve additional costs, risks or capital expenditures;
Previous 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 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 report
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 report
Nine Months Ended September 30, 2025, as Compared to Nine Months Ended September 30, 2024
Previous report
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 report
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 report
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 report
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.
Reworded paragraphs (22)
Previous wording
•general economic, social, regulatory (including foreign trade policy) and political environments in the countries in which Core Molding Technologies operates;
Current wording
•general economic, social, regulatory (including foreign trade policy) and political environments, including uncertainties surrounding volatility in financial markets;
Previous wording
•the ability to successfully identify, evaluate and manage potential acquisitions and to benefit from and properly integrate any completed acquisitions;
Current wording
•the ability to successfully identify, evaluate and manage potential acquisitions and to benefit from and properly integrate and completed acquisitions;
Previous wording
•other risks identified from time to time in Core Molding Technologies’ other public documents on file with the Securities and Exchange Commission, including those described in Item 1A of this Annual Report on Form 10-K.
Current wording
•other risks identified from time to time in Core Molding Technologies’ other public documents on file with the Securities and Exchange Commission, including those described in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Previous wording
Operating performance is also dependent on the Company’s ability to effectively launch new customer programs, which are extremely complex in nature. The start of production of a new program is the result of a process of developing new molds and assembly equipment, validation testing, manufacturing process design, development and testing, along with training and often hiring employees. Meeting the targeted levels of manufacturing efficiency for new programs usually occurs over time as the Company gains experience with new tools and processes. Therefore, during a new program launch period, start-up costs and inefficiencies can affect operating results.
Current wording
Operating performance is also dependent on the Company’s ability to effectively launch new customer programs, which are extremely complex in nature. The start of production of a new program is the result of a process of developing new molds and assembly equipment, validation testing, manufacturing process design, development and testing, along with training and often hiring employees. Meeting the targeted levels of manufacturing efficiency for new programs usually occurs over time as the
Previous 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):
Current wording
Net sales for the three months ended March 31, 2026 and 2025 totaled $58,583,000 and $61,447,000, respectively. Included in net sales were tooling project sales of $1,123,000 and $435,000 for the three months ended March 31, 2026 and 2025, 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, 2026 were $57,460,000 compared to $61,012,000 for the same period in 2025. The decrease in sales is primarily the result of lower demand in 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, offset by increase in Powersports due to demand increases and launching new programs. The Company's product sales for the three months ended March 31, 2026 compared to the same period in 2025 by market are as follows (in thousands):
Previous 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%.
Current wording
Gross margin was 20.4% and 19.2% of sales for the three months ended March 31, 2026 and 2025, respectively. Gross margin compared to last year was favorably impacted by product mix and operational efficiencies of 1.1% and changes in selling price and raw material costs of 0.5%, offset by fixed cost leverage of 0.4%.
Previous 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.
Current wording
Selling general and administrative expense ("SG&A") was $11,214,000 for the three months ended March 31, 2026, which included succession plan costs of $924,000 and Mexico expansion related expense of $2,102,000. Excluding succession plan costs and Mexico expansion related expense, SG&A cost for the three months ended March 31, 2026 totaled $8,188,000 compared to $8,444,000, excluding $500,000 of severance expense, for the three months ended March 31, 2025. Decreased SG&A expenses resulted primarily from lower foreign currency of $268,000.
Previous 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.
Current wording
Net interest expense totaled $86,000 for the three months ended March 31, 2026, compared to $16,000 for the three months ended March 31, 2025. Higher interest expense was primarily due to lower interest income from cash accumulation of $190,000.
Previous 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.
Current wording
Income tax expense for the three months ended March 31, 2026 is estimated to be $190,000, approximately 23.9% of income before income taxes. Income tax expense for the three months ended March 31, 2025 was estimated to be $750,000, approximately 25.6% 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.
Previous 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.
Current wording
The Company recorded net income for the three months ended March 31, 2026 of $605,000 or $0.07 perbasic and diluted share compared with net income of $2,183,000, or $0.25 per basic and diluted share, for the three months ended March 31, 2025.
Previous 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.
Current wording
Comprehensive income totaled $623,000 for the three months ended March 31, 2026, compared to comprehensive income of $3,061,000 for the same period ended March 31, 2025. The decrease was primarily related to the decrease in net income of $1,578,000 and hedging activity of $857,000.
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 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.
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 March 31, 2026, the Company had outstanding foreign exchange contracts with notional amounts totaling $57,665,000. As of March 31, 2026, the Company had outstanding interest rate swaps with notional amounts totaling $19,375,000.
Previous 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.
Current wording
Cash used in operating activities for the three months ended March 31, 2026 totaled $9,229,000. Net income of $605,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization, and share-based compensation included in net income amounted to $3,057,000 and $495,000, respectively. Increased working capital decreased cash provided by operating activities by $13,572,000. Higher working capital was primarily driven by payments to tooling vendors, increased inventory associated with the Mexico expansion, and changes in product mix impacting accounts receivable, partially offset by accounts payable and accrued liabilities.
Previous 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.
Current wording
Cash used in investing activities for the three months ended March 31, 2026 was $3,784,000, which related to purchases of property, plant and equi pment. The Company anticipates spending approximately $25,000,000 to $30,000,000 during 2026 on property, plant and equipment purchases for all of the Company's operations. Included in the Company's anticipated spending in 2026 is approximately $18,000,000 to $20,000,000 for the Mexico expansion project. At March 31, 2026, purchase commitments for capital expenditures in progress were $8,042,000. 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 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.
Current wording
Cash used in financing activities for the three months ended March 31, 2026 totaled $1,538,000, which consisted of purchase of treasury stock of $612,000 in exchange for payment of taxes related to net shares settlements of equity awards, repayments of long-term debt of $469,000 and treasury stock related to the Company's stock buy back plan of $457,000.
Previous 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.
Current wording
At March 31, 2026, the Company had $23,507,000 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
On July 22, 2022, the Company entered into a credit agreement (the “Huntington Credit Agreement”) with The Huntington National Bank (“Huntington”), as the sole lender, administrative agent, lead arranger and book runner, and the lenders from time to time thereto. Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured loans (the “Huntington Loans”) in the maximum aggregate principal amount of $75,000,000, comprised of three $25,000,000 commitments: a term loan commitment, a CapEx loan commitment and a revolving loan commitment.
Current wording
On July 22, 2022, the Company entered into a credit agreement (as amended on March 7, 2024 and February 10, 2026, the “Huntington Credit Agreement”) with The Huntington National Bank (“Huntington”), as the sole lender, administrative agent, lead arranger and book runner, and the lenders from time to time thereto. Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured loans (the “Huntington Loans”) in the maximum aggregate principal amount of $75,000,000, comprised of three $25,000,000 commitments: a term loan commitment, a CapEx loan commitment and a revolving loan commitment.
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 which none was outstanding as of September 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.
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. 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 September 30, 2025 and December 31, 2024.
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 March 31, 2026 and December 31, 2025, respectively.
Previous 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.
Current wording
The interest rate for the Huntington Revolving Loan was 5.43% and 6.33% as of March 31, 2026 and December 31, 2025, 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 5.93% and 6.11% as of September 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 ($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 5.43% and 5.46% as of March 31, 2026 and December 31, 2025, 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 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.
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 3.65% 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, 2026 and December 31, 2025. The fair value of the interest rate swap was an asset of $78,000 and $23,000 at March 31, 2026 and December 31, 2025, respectively.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Company gains experience with new tools and processes. Therefore, during a new program launch period, start-up costs and inefficiencies can affect operating results.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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.