Core Molding Technologies (CMT) Q1 2026 earnings summary

Executive summary

• Achieved $17 million in new business wins, including a major $9 million/year grid battery energy storage project with a three-year commitment, and advanced strategic investments in Mexico despite a modest sales decline due to the ongoing truck market down cycle.

• Relocated five of nine presses to the new Monterrey facility, with Mexico expansion ahead of schedule and full consolidation expected by end of Q2.

• Powersports and new product categories delivered strong sales, offsetting truck market weakness.

• Gross margin expanded to 20.4%, the best in over a decade, reflecting disciplined cost control and favorable program mix.

• Leadership transition underway, with COO role split for operational continuity and focus on growth.

Financial highlights

• Q1 2026 net sales were $58.6 million, down 4.7% year-over-year, mainly due to lower truck demand, partially offset by higher Powersports sales.

• Gross margin reached $12.0 million (20.4% of sales), up from 19.2% a year ago and 15.2% in the prior quarter.

• Operating income was $764,000 (1.3% of sales), down from $2.8 million (4.6%) prior year; net income $605,000 or $0.07 per diluted share, compared to $2.2 million ($0.25 per share) last year.

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

• Operating cash flow was negative $9.2 million, reflecting planned Mexico investments; capex $3.8 million.

Outlook and guidance

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

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

• Truck market volumes expected to recover in H2 2026; $63 million in new wins from 2025 to launch through 2026-2027.

• Targeting $50 million in new program awards for 2026 and long-term revenue goal of $500 million.

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