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, followed by cultural improvements, contract optimization, and a shift to growth mode, with expansion efforts especially in Mexico through 2026.

• Transformation efforts institutionalized operating systems, leveraged pricing and contract adjustments, and emphasized leadership development.

• The company leverages a North American footprint with large-scale manufacturing capabilities, serving blue-chip customers and maintaining high barriers to entry.

Financial Performance and Outlook

• 2025 sales reached $274 million with $30.7 million adjusted EBITDA and a 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, with a leverage ratio below 1x adjusted EBITDA.

• Despite recent sales declines from market normalization and portfolio decisions, gross margins have improved to 17%-19% through operational efficiency and pricing discipline.

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

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

Growth Initiatives and Market Opportunities

• Growth is driven by new customer wins, deeper wallet share, and composites offering lightweighting, durability, and sustainability across industries.

• The Mexico expansion includes a $25 million investment, new presses, and facility upgrades to support a $150 million Volvo contract and additional verticals such as medical, automotive, and grid hardening solutions.

• Recent program wins total $105 million in incremental opportunities, with commercial traction ahead of P&L realization.

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

• Addressable market growth is driven by material conversions to composites, with global composites industry CAGR of 7-8%.