Core Molding Technologies (CMT) 16th Annual East Coast IDEAS Conference summary

Business Transformation and Strategy

• The company has diversified beyond heavy trucks into powersports, building products, industrials, and utilities, focusing on profitable growth, innovation, and long-term value creation.

• Operational turnaround began in 2019, with cultural improvements, contract optimization, and a shift to growth mode from 2024 onward, supported by institutionalized operating systems.

• Recent initiatives include expanding sales, investing in organic growth, and launching new revenue streams, underpinned by a strong culture and continuous improvement systems.

• Deep customer relationships and technical expertise enable solutions for demanding applications, driving customer loyalty and program wins.

• Diversification reduces reliance on single markets and supports resilience through industry cycles.

Financial Performance and Outlook

• 2025 sales reached $274 million with $30.7 million adjusted EBITDA and 17.4% gross margin; Q1 2026 trailing twelve months EBITDA margin was 11.4%.

• Maintains zero net debt and a cash balance of $24 million as of March 2026, prioritizing organic growth, disciplined CapEx, and Mexico expansion.

• Operating cash flow over the past three years totaled $89 million, with $51 million in free cash flow excluding growth capex.

• Long-term targets include revenue exceeding $500 million in 3–5 years, 8%-10% operating margins, and 14%-16% return on capital employed.

• Capacity exists for $425–$475 million in annual revenue, with significant operating leverage as volumes recover.

Growth Initiatives and Market Opportunities

• Major organic growth is driven by a $150 million Volvo roof contract launching in Matamoros in 2027, supported by $25 million CapEx for facility and equipment expansion.

• Recent program wins total $105 million in incremental opportunities across truck, powersports, building products, and industrial applications.

• The company is expanding into new verticals, including medical, automotive (EV), and grid hardening solutions, with a focus on advanced composites.

• SMC (Sheet Molding Compound) business is growing, with expansion paced to ensure successful launches and maintain quality; additional capacity may be announced in 2027 for 2028.

• Serves diverse markets: transportation (44% of 2025 sales), powersports (27%), building products (10%), and industrial/utilities (19%).