CORE MOLDING TECHNOLOGIES INC
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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, 2026 · Filed Aug 4, 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 2026-03-31; filed 2026-05-07.
0001026655-26-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001026655-26-000053
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 79 previous paragraphs and 90 current paragraphs.
60 unchanged; 19 reworded; 9 added; 0 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 (9)
Current report
The Company also continues to monitor developments related to the upcoming review of the United States-Mexico-Canada Agreement ("USMCA") and other potential changes in North American trade policy. To date, the Company has not experienced any material disruption to production schedules related to these developments and believes its diversified North American manufacturing footprint, long-standing customer relationships, and strong balance sheet positions the Company well to respond to changes in the evolving trade environment while continuing to support future growth initiatives.
Current report
Net interest expense totaled $60,000 for the three months ended June 30, 2026, compared to net interest income of $32,000 for the three months ended June 30, 2025. Lower interest income was primarily due to lower interest income of $106,000 from cash accumulation. For the three months ended June 30, 2026, the Company recognized an loss of $87,000 related to the repayment of the Huntington Term Loan and a gain of $170,000 for the termination of Interest Rate Swap.
Current report
Six Months Ended June 30, 2026, as Compared to Six Months Ended June 30, 2025
Current report
Gross margin was approximately 20.4% of revenue for the six months ended June 30, 2026 and included a favorable one-time capacity charge impacting gross margin by 60 basis points. Excluding the one-time gain, gross margin was 19.8% of revenue for the same period compared with 18.5% for the six months ended June 30, 2025. Gross margin compared to last year was favorably impacted by product mix and operating efficiencies of 2.8%, offset by fixed cost leverage of 1.4% and net changes in selling price and raw material costs of 0.1%.
Current report
SG&A was$21,647,000 for the six months ended June 30, 2026, which included severance of $1,411,000 and Mexico expansion related expense of $3,404,000. Excluding severance and one-time portfolio optimization costs, SG&A cost for the six months ended June 30, 2026 totaled $16,832,000 compared to SG&A costs without severance costs and one-time portfolio optimization costs $16,865,000 for the same period in 2025. Decreased SG&A expenses resulted primarily from favorable foreign currency translation of $509,000, offset by labor and benefit of $652,000.
Current report
The Company recorded net income for the six months ended June 30, 2026 of $2,388,000 or$0.28 perbasic share and $0.27 per diluted share, compared with net income of$6,235,000, or $0.73 per basic and $0.72 diluted share, for the same period in 2025.
Current report
Comprehensive income totaled $2,978,000 for the sixmonths ended June 30, 2026, compared to comprehensive income of$7,823,000 for the same period in 2025. The decrease was primarily related to lower net income of $3,847,000.
Current report
Credit Refinancing
Current report
On July 2, 2026, the Company entered into the Third Amendment to "the Huntington Credit Agreement". The amendment refinanced the Company's existing term loan and amended the Company's credit facilities. Pursuant to the amended Huntington Credit Agreement, Huntington provides secured credit facilities in an aggregate principal amount of $100,000,000, consisting of (i) a $50,000,000 revolving credit facility and (ii) a $50,000,000 delayed draw term loan facility. The revolving credit facility matures on July 2, 2031. The delayed draw term facility is available for borrowings through July 2, 2031, with amounts borrowed converting into amortizing term loans on specified annual conversion dates and all outstanding balances maturing on July 2, 2031. For additional information on the Third Amendment, see Note 18, "Subsequent Events," to the consolidated financial statements included herein.
Reworded paragraphs (19)
Previous wording
Product sales fluctuate in response to several factors, including many that are beyond the Company’s control, such as general economic conditions, interest rates, government regulations, consumer spending, raw material cost inflation, labor availability, and our customers’ production rates and inventory levels. The Company's customers operate in many different markets with different cyclicality and seasonality.
Current wording
Product revenue fluctuate in response to several factors, including many that are beyond the Company’s control, such as general economic conditions, interest rates, government regulations, consumer spending, raw material cost inflation, labor availability, and our customers’ production rates and inventory levels. The Company's customers operate in many different markets with different cyclicality and seasonality.
Previous wording
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 wording
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 project revenues as new programs launch during 2026. During the second half of 2026, the Company expects to incur incremental one-time costs of approximately $500,000 in connection with the Mexico Expansion Project, related to press relocations and temporary overlap of two facility leases in Monterrey. The expense will primarily be incurred during the third quarter of 2026 and will be recorded in Selling, General and Administrative expenses.
Previous 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):
Current wording
Net revenue for the three months ended June 30, 2026 and 2025 totaled $62,729,000 and $79,239,000, respectively. Included in net revenue were tooling project revenue of $1,839,000 and $17,606,000 for the three months ended June 30, 2026 and 2025, respectively. Tooling project revenue are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product revenue, excluding tooling project revenue, for the three months ended June 30, 2026 were $60,890,000 compared to $61,633,000 for the same period in 2025. The change in product revenue 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 in the building products market and new program launches. The Company's product revenue for the three months ended June 30, 2026 compared to the same period in 2025 by market are as follows (in thousands):
Previous 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%.
Current wording
Gross margin was approximately 20.3% of revenue for the three months ended June 30, 2026 and included a favorable one-time capacity charge impacting gross margin by 90 basis points. Excluding the one-time gain gross margin was 19.4% of revenue for the same period compared to 18.1% of revenue for the three months ended June 30, 2025. Gross margin compared to last year was favorably impacted by product mix and operating efficiencies of 4.0%, offset by fixed cost leverage of 2.2% and net changes in selling price and raw material costs of 0.5%.
Previous 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.
Current wording
Selling general and administrative expense ("SG&A") was $10,433,000 for the three months ended June 30, 2026, which included severance expense of $487,000 and Mexico expansion related expense of $1,302,000. Excluding severance and Mexico expansion related expense, SG&A cost for the three months ended June 30, 2026 totaled $8,644,000 comp ared to $9,100,000 for the three months ended June 30, 2025.
Previous 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.
Current wording
Income tax expense for the three months ended June 30, 2026 is estimated to be $569,000, approximately 24.2% of income before income taxes. Income tax expense for the three months ended June 30, 2025 was estimated to be $1,311,000, approximately 24.4% 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 the affect of one time nontaxable expenses.
Previous 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.
Current wording
The Company recorded net income for the three months ended June 30, 2026 of $1,783,000 or $0.21 perbasic and diluted share compared with net income of $4,052,000, or $0.47 per basic and diluted share, for the three months ended June 30, 2025.
Previous 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.
Current wording
Comprehensive income totaled $2,355,000 for the three months ended June 30, 2026, compared to comprehensive income of $4,762,000 for the same period ended June 30, 2025. The decrease was primarily related to lower in net income of $2,269,000.
Previous 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.
Current wording
Net interest expense totaled $146,000 for the six months ended June 30, 2026 compared to net interest income of$16,000 for the same period in 2025. Higher interest expense was primarily due to lower interest income of $320,000 from cash accumulation. For the six months ended June 30, 2026, the Company recognized an loss of $87,000 related to the repayment of the Huntington Term Loan and a gain of $170,000 for the termination of Interest Rate Swap.
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, 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.
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, 2026, the Company had outstanding foreign exchange contracts with notional amounts totaling $53,700,000. As of June 30, 2026, the Company had outstanding interest rate swaps with notional amounts totaling $0.
Previous 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.
Current wording
Cash provided by operating activities for the six months ended June 30, 2026 totaled $7,070,000. Net income of $2,388,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization, and share-based compensation included in net income amounted to $6,231,000 and $996,000, respectively. Increased working capital decreased cash provided by operating activities by $2,056,000. Higher working capital was primarily related to changes in accounts receivable, inventories, and prepaid assets offset by accounts payable and accrued liabilities.
Previous 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.
Current wording
Cash used in investing activities for the six months ended June 30, 2026 was $12,082,000, 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 June 30, 2026, purchase commitments for capital expenditures in progress were $8,319,000. 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, 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.
Current wording
Cash used for financing activities for the six months ended June 30, 2026 totaled $20,912,000, which consisted of repayments of long-term debt of $19,843,000, the purchase of treasury stock of $612,000 in exchange for payment of taxes related to net shares settlements of equity awards and purchase of treasury stock of $457,000.
Previous 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.
Current wording
At June 30, 2026, the Company had $12,134,000 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, 2026 and December 31, 2025. 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, 2026 and December 31, 2025, 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, 2026 and December 31, 2025.
Previous 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.
Current wording
The interest rate for the Huntington Revolving Loan was 5.42% and 5.46% as of June 30, 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 ($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.
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 5.42% and 5.46% as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, the Company repaid in full the outstanding balance of the Huntington Term Loan.
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 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.
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, 2026 and December 31, 2025. The fair value of the interest rate swap was an asset of $0 and $23,000 at June 30, 2026 and December 31, 2025, respectively. Concurrent with the repayment of the Huntington Term Loan, the Company terminated the Interest Rate Swap and recognized a gain of $170,000.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net revenue for the six months ended June 30, 2026 and 2025 totaled $121,312,000 and$140,686,000, respectively. Included in net revenue were tooling project revenue of $2,962,000 and $18,041,000 for the six months ended June 30, 2026 and 2025, respectively. Tooling project revenue are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product revenue, excluding tooling project revenue, for the six months ended June 30, 2026 were$118,350,000 compared to$122,645,000 for the same period in 2025. The decrease in revenue 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 increase demand in power sports market and new program launches. The Company's product revenue for the six months ended June 30, 2026 compared to the same period in 2025 by market are as follows (in thousands):
Current report — wording carried from elsewhere
Income tax expense for the six months ended June 30, 2026 is estimated to be$759,000, approximately 24.1% of income before income taxes. Income tax expense for the same period in 2025 was estimated to be $2,061,000, approximately 24.8% 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 the affect of one time nontaxable expenses.