Core Molding Technologies
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Core Molding Technologies (CMT) investor relations material

Core Molding Technologies Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary7 May, 2026

Executive summary

  • Q1 2026 saw $17M in new business wins, strong execution on growth strategy, and best gross margin in over a decade, despite a 4.7% sales decline due to truck market weakness, partially offset by robust Powersports and new product category growth.

  • Leadership transition underway, with COO role split and Erik Palomaki becoming CEO; succession plan costs impacted results.

  • Mexico expansion progressing ahead of schedule, with major investments and facility consolidation expected by end of Q2.

  • Business development pipeline exceeds $220M, targeting $50M in new program awards for 2026 and a long-term revenue goal of $500M.

  • Powersports market delivered 46% year-over-year revenue growth, marking the third consecutive quarter of growth.

Financial highlights

  • Q1 revenues were $58.6M, down 4.7% year-over-year, mainly due to truck cycle dynamics; product sales were $57.5M, tooling sales $1.1M.

  • Gross margin reached 20.4% ($12M), up from 19.2% year-over-year and 15.2% sequentially.

  • Operating income was $764K (1.3% margin), down from $2.8M, reflecting higher SG&A from Mexico expansion and succession costs.

  • Net income was $605K ($0.07 per diluted share), down from $2.2M ($0.25 per share); adjusted net income was $3.2M ($0.37 per share).

  • Adjusted EBITDA was $7.3M (12.5% of sales), up from $7.2M (11.7%) year-over-year.

  • Operating cash flow was negative $9.2M, with capital expenditures of $3.8M and negative free cash flow of $13M, in line with investment plans.

Outlook and guidance

  • Full-year 2026 sales expected to be flat to up 5%, with tooling revenue weighted to Q4 and truck market recovery anticipated in H2.

  • Gross margin guidance reaffirmed at 17%-19% for the year.

  • Capital expenditures for 2026 projected at $25M-$30M, with $18M-$20M for Mexico growth.

  • Anticipates $3M in one-time Mexico expansion costs and $2M in succession plan costs, mainly in H1 2026.

  • Expecting $50M in new program awards in 2026 and long-term revenue target of $500M.

Role of SMC wins in offsetting truck down cycle
Drivers for Q1 margin vs 17-19% FY guidance
Impact of Mexico expansion on 2026 SG&A levels
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