Core Molding Technologies (CMT) 16th Annual Midwest Ideas Conference summary

Strategic transformation and operational turnaround

• Since 2019, focused on operational turnaround, leadership engagement, and process optimization, reducing employee turnover to under 6% and stabilizing the business after emerging from bank default.

• Implemented a 'fix or get out' approach, raising prices to market levels, exiting unprofitable programs, and regaining lost business, leading to improved gross margins in 2022-2023.

• Diversified revenue streams, reducing truck market exposure from 92% to 54% over seven years, and expanded into power sports, building products, industrial, and utilities.

• Investments in organic growth include a $150 million Volvo contract and $25 million facility expansion in Mexico, targeting higher value solutions and new industry verticals.

• Large North American manufacturing footprint with over 1.3 million sq. ft. and 82 presses, supporting USMCA-compliant products.

Market leadership, innovation, and product expansion

• Holds 87% market share in personal watercraft and 30% in the truck market, with high barriers to entry due to capital-intensive equipment and proprietary processes.

• Developed proprietary SMC formulations and expanded SMC production capacity, now selling externally as a new revenue stream with a $200 million addressable market.

• Introduced top coat paint capabilities to capture new markets, such as construction and agriculture, and launched innovative composite solutions for various industries.

• Market leadership supported by proprietary engineered products and tariff-protected, USMCA-compliant solutions.

• Long-term customer relationships with industry leaders in trucks, powersports, and building products, providing single-source manufacturing arrangements.

Financial performance and capital allocation

• 2024 sales reached $302 million, with adjusted EBITDA of $30.2 million for the twelve months ended June 2025.

• Maintains a strong balance sheet with $43.2 million in cash, zero net debt as of June 2025, and a $50 million credit line, supporting organic growth, M&A, and shareholder returns.

• Free cash flow over the past three years totaled $52 million (excluding growth capex), with reinvestment supporting capacity for $425–$475 million in revenues.

• Adjusted EBITDA margin at 10.9% and ROCE at 11.5% for TTM June 2025, with long-term targets of $500 million+ revenue, 8–10% operating income, and 14–16% ROCE within three to five years.

• Authorized $7.5 million in share buybacks, with $2.5 million remaining and plans to renew authorization.