Core Molding Technologies — Q3 2026 Earnings Summary

Financial Performance:

• Total net revenues for the quarter ended September 30, 2026, were $90.2 million, a 54.4% increase from $58.4 million in the prior year period.
• Production revenue increased 19.7% year-over-year to $64.8 million, while Tooling Project revenue rose to $25.4 million from $4.3 million.
• Gross margin was 14.8% ($13.4 million) for the quarter, compared to 17.4% in the prior year; excluding tooling mix and Monterrey commissioning charges, gross margin would have been 18.6%.
• Selling, general, and administrative (SG&A) expenses were $11.8 million (13.1% of revenue), up from $7.6 million (13.0% of revenue) in the prior year, including $1.8 million in non-recurring costs.
• Operating income was $1.6 million (1.8% of revenue), down from $2.6 million (4.4% of revenue) in the prior year.
• Net income was $1.5 million ($0.17 per diluted share), compared to $1.9 million ($0.22 per diluted share) in the prior year.
• Adjusted net income was $2.9 million ($0.33 per diluted share), compared to $0.24 per diluted share in the prior year.
• Adjusted EBITDA was $6.4 million (7.1% of revenue), flat with $6.4 million (11.0% of revenue) in the prior year.
• For the nine months ended September 30, 2026, total net revenues were $211.5 million, up from $199.1 million in the prior year.
• Nine-month production revenue increased 3.6% to $183.2 million, and Tooling Project revenue was $28.4 million compared to $22.3 million.
• Nine-month gross margin was 18.0% ($38.1 million), compared to 18.2% in the prior year.
• Nine-month SG&A expenses were $33.4 million (15.8% of revenue), up from $25.6 million (12.9% of revenue), including $6.6 million in non-recurring costs.
• Nine-month operating income was $4.6 million (2.2% of revenue), down from $10.6 million (5.3% of revenue).
• Nine-month net income was $3.9 million ($0.45 per diluted share), compared to $8.1 million ($0.93 per diluted share).
• Nine-month Adjusted net income was $9.4 million ($1.07 per diluted share).
• Nine-month Adjusted EBITDA was $21.4 million (10.1% of revenue), down from $23.1 million (11.6% of revenue).
• Capital expenditures for the first nine months were $19.7 million, including $12.2 million for the Mexico expansion.
• Return on Capital Employed was 5.0% for the trailing twelve months and 5.1% excluding cash.
• Cash and cash equivalents were $5.4 million as of September 30, 2026, compared to $38.1 million at December 31, 2025.
• Revolving credit facility balance was $4.8 million as of September 30, 2026.
• Free cash flow for the nine months ended September 30, 2026, was negative $16.3 million, compared to positive $4.9 million in the prior year.

Guidance and Future Outlook:

• Full-year 2026 net sales are expected to be flat to up approximately 5%.
• Full-year 2026 gross margins are expected to be in the 16% to 17% range.
• Full-year 2026 capital spending is expected to be approximately $28 to $30 million, including approximately $20 million for the Mexico expansion.
• Two 4,500-ton presses in Matamoros are on track to come online by year-end.
• The company sees a path to approximately $50 million in new business awards through six major projects currently in the final stage of the sales pipeline.

Business Segments and Product Lines:

• Medium- and heavy-duty truck production continued to recover during the quarter.
• Building products and industrial and utilities end markets remained healthy.
• Power sports demand contributed to the 3.6% increase in nine-month production revenue.
• The company secured approximately $30 million in new business awards so far in 2026.
• A significant award was secured for battery energy storage systems.
• A center of excellence for hood and battery systems was established in the Gaffney, South Carolina facility.
• Tooling project revenue accounted for a larger portion of sales, creating recurring demand despite short-term margin impacts.

Market and Competitive Landscape:

• Demand trends improved across key markets including medium- and heavy-duty truck, building products, and industrial/utilities.
• The company is expanding its position in long-term growth markets driven by electrification, grid hardening, and increasing power demand.
• The company operates in one operating segment as a molder of thermoplastic and thermoset structural products across North America.

Risks and Challenges:

• Profitability was impacted by one-time commissioning costs in Monterrey, portfolio footprint optimization activities, and higher external input costs.
• SG&A expenses included non-recurring costs associated with Mexico expansion, footprint optimization, and severance.
• Forward-looking statements note risks including dependence on major customers, raw material availability and price increases, macroeconomic conditions, tariffs, safety conditions in Mexico, and cybersecurity incidents.

Management Commentary and Tone:

• CEO Eric Palomaki stated results reflect continued progress against strategic initiatives despite one-time start-up costs.
• CFO Alex Panda noted strong underlying business activity and execution of strategic growth investments.
• Management highlighted that investments in capacity and efficiency are supporting future growth.
• The tone indicates confidence in the path to improved performance and long-term growth despite current margin pressures.

Other Key Points:

• On July 2, 2026, the company entered into the third amendment of its 2022 Credit Agreement, refinancing existing facilities.
• The company secured credit facilities totaling $100 million, consisting of a $50 million revolving credit facility and a $50 million delayed draw term loan facility.
• The company remained active in its share repurchase program during the quarter and into October.
• Payments for taxes related to net share settlement of equity awards were $0.6 million for the nine months ended September 30, 2026.
• Purchase of treasury stock was $0.6 million for the nine months ended September 30, 2026.
• The company operates in medium- and heavy-duty truck, powersports, building products, and industrial and utilities industries across the United States, Canada, and Mexico.