Core Molding Technologies (CMT) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales were $88.7 million, down 9.2% year-over-year, reflecting lower demand across most industries and end market headwinds.

• Net income for Q2 2024 was $6.4 million ($0.73 diluted EPS), compared to $7.9 million ($0.91) in Q2 2023.

• Gross margin for Q2 2024 was 20.0%, up from 17% in Q1 but slightly below 21.0% in Q2 2023.

• Awarded $42 million in new business in H1 2024, with benefits expected in 2025–2026 and a $250 million sales opportunity pipeline.

• Recognized with the 2023 PACCAR 10 PPM Quality Award and continued focus on operational excellence and customer partnerships.

Financial highlights

• Six-month net sales were $166.9 million, down 15.4% year-over-year; net income was $10.2 million ($1.15 per share).

• Adjusted EBITDA for Q2 was $11.6 million (13% of sales), down from $13.7 million (14.1%) in Q2 2023.

• Free cash flow for the first half of 2024 was $16.1 million, up from $14.4 million in the prior year.

• SG&A expense for Q2 2024 was $10.2 million (11.5% of sales), slightly lower in dollars but higher as a percentage than last year.

• Net interest income for Q2 2024 was $38,000, compared to net interest expense of $293,000 in Q2 2023.

Outlook and guidance

• Full-year 2024 net sales expected to decline approximately 15% from 2023, with gross margins at the lower end of the 17%-19% range.

• Second half margins anticipated to be lower than the first half due to cyclical demand slowdown, seasonality, and program transitions.

• Ongoing softness in end customer demand and normal seasonality expected to persist.