Core Molding (CMT) investor relations material

Strategic transformation and operational turnaround

• Focused on internal execution and leadership engagement from 2019, moving from bank default to a strong financial position with low employee turnover.

• Addressed high costs and low pricing by fixing operations first, then implementing significant price increases and portfolio rationalization, regaining lost business such as Volvo.

• Shifted strategy to 'invest for growth,' leveraging improved execution and financial health to expand sales and diversify markets.

Market diversification and product innovation

• Reduced truck market concentration from 92% to 54% over seven years, expanding into powersports, industrial, utilities, aerospace, and consumer products.

• Holds leading market shares in personal watercraft (87%) and truck (30%), with high barriers to entry due to capital-intensive equipment.

• Developed proprietary SMC formulations and expanded into new revenue streams, including SMC sales and topcoat paint for new markets.

• Won major contracts such as the $150M Volvo roof program, driving $25M in new plant investments and capacity expansion in Mexico.

Financial performance and capital allocation

• Maintains $40M cash, $50M credit line, and a strong balance sheet, supporting organic growth, M&A, and shareholder returns.

• Targeting 14–16% pre-tax returns on investments, with disciplined M&A focused on $10–$40M tuck-in deals and leverage below 2.5x.

• Authorized $7.5M stock buyback, with $2.5M remaining and plans to renew.

• Achieved $90M operating cash flow over three years, with $52M free cash flow and capacity for $425M–$475M in sales.

• Long-term goals: $500M revenue, 8–10% operating income, and 14–16% return on capital within 3–5 years.