Core Molding Technologies (CMT) Q4 2025 earnings summary

Executive summary

• Achieved $63 million in new business wins for 2025, with over 65% outside core Truck and Powersports markets, supporting diversification and portfolio resilience.

• Completed executive leadership transition, with Eric Palomaki as CEO and David Duvall as executive advisor through 2027.

• Invested in Mexico expansions and new greenfield plant, enhancing technical capabilities and customer alignment.

• Proprietary SMC launched in Building Products, generating nearly $10 million in revenue.

• Maintained a strong business development pipeline with $220 million in opportunities and targeting $500 million in annual revenue long-term.

Financial highlights

• Fiscal 2025 revenues declined 9.5% year-over-year to $273.8 million, mainly due to Truck sector weakness, but Q4 revenue rose 27.8% sequentially and 19.5% year-over-year to $74.7 million.

• Gross margin for 2025 was $47.6 million (17.4%), within the 17%-19% target range; Q4 gross margin was $11.3 million (15.2% of sales).

• Adjusted EBITDA margin for Q4 was 10.2%, up 100 basis points year-over-year; FY2025 adjusted EBITDA was $30.7 million (11.2%).

• Net income for Q4 was $3.1 million ($0.36 per diluted share), compared to a loss of $39,000 in the prior year; FY2025 net income was $11.2 million ($1.29/share).

• Generated $19.2 million in GAAP cash from operations for the year; free cash flow was $1.9 million after $17.3 million in capex.

Outlook and guidance

• 2026 sales expected to be flat to up 5%, with tooling revenue weighted toward Q4 and driven by SMC wins and Truck sector recovery in H2 2026.

• Gross margin guidance for 2026 remains 17%-19%.

• Majority of $63 million in new wins to impact results in H2 2026 and 2027; visibility for product revenue exceeding $300 million in 2027.

• Truck market recovery anticipated in H2 2026; powersports market already showing signs of rebound.

• Long-term target of $500 million annual revenue and low-20s% gross margin by 2027.