Core Molding Technologies (CMT) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 54.4% to $90.2M, including $25.4M of tooling revenue; production revenue grew 19.7%.

• Net income declined to $1.5M from $1.9M, while operating income fell to $1.6M from $2.6M.

• More than $90M of annualized revenue opportunities were won across 30+ programs over 18 months; management expects investment benefits to become more visible in 2027.

Financial highlights

• Q3 gross margin was 14.8% versus 17.4%; excluding tooling mix and Monterrey commissioning charges, it was 18.6%.

• Adjusted EBITDA was $6.4M, or 7.1% of revenue, versus 11.0% a year earlier; adjusted net income was $2.9M, or $0.33 diluted EPS.

• Q3 diluted EPS was $0.17 versus $0.22; 9M net income was $3.9M versus $8.1M and diluted EPS was $0.45 versus $0.93.

• Q3 SG&A was $11.8M, or 13.1% of revenue, including $1.8M of one-time Mexico expansion and footprint optimization costs.

• 9M revenue was $211.5M versus $199.1M; operating cash flow was $3.4M and free cash flow was negative $16.3M.

Outlook and guidance

• FY2026 sales guidance remained flat to up ~5%, with gross margin expected at 16%–17%; Q4 margin could fall below the range due to tooling mix.

• Q4 project revenue is expected at $9M–$11M; customer decisions and tooling lead times affect timing of awards and production revenue.

• FY2026 capital spending is expected at $28M–$30M, including $18M–$20M for Mexico expansion; 2027 sustaining CapEx is targeted at 3%–3.5% of sales.

• Management expects to issue FY2027 guidance earlier than its usual March timing, no later than January.

• Truck OEMs expect demand to remain strong into H1 2027; management anticipates a smoother emissions transition rather than a January 1 step-change.