Core Molding Technologies, Inc.

What they do

Core Molding operates as one segment, molding thermoplastic and thermoset structural products for OEMs. It runs six production facilities in the U.S., Canada, and Mexico with 82 molding presses (compression, resin transfer, and injection). The company sells directly to customers and also supplies sheet molding compound (SMC) materials.

Revenue drivers

• Medium- and heavy-duty trucks — Largest end market, approximately 44% of 2025 product sales; demand is cyclical and has been soft recently.
• Powersports — A key non-truck market, contributing to strong growth (20.8% growth in production sales excluding truck in Q2 2026).
• Building products — Another non-truck market that helped offset truck weakness in Q2 2026.
• Industrial and utilities — Includes new business wins such as battery energy storage systems, supporting diversification.

Recent performance

In Q2 2026, total net revenues were $62.7 million, with production revenues of $60.9 million and tooling revenue. Production sales declined 1.2% year-over-year as truck weakness offset growth in other markets; gross margin was 20.3%. For the first half of 2026, the company reported new business wins of $25.7 million. Full-year 2025 revenue was $273.8 million with net income of $11.2 million, and the latest balance sheet shows zero long-term debt.

Strategy

Management's 'Invest for Growth' strategy focuses on diversifying revenue beyond cyclical truck and powersports markets. In 2026, the company plans to quadruple its Monterrey, Mexico manufacturing footprint and add two 4500-ton presses in Matamoros. They also completed a major plant relocation in Mexico. The company is pursuing opportunities in secular growth markets like battery energy storage and grid reliability.

Risks

• Customer concentration — Five customers made up approximately 65% of 2025 total sales; loss of any significant customer could hurt results.
• Transition with Volvo — Business with Volvo (about 14% of 2024 sales) has been transitioning to programs the company no longer supports, with no guarantee of replacement revenue.
• Cyclical truck market — Heavy- and medium-duty truck demand is highly cyclical and accounted for 44% of 2025 product sales, causing volatility.
• Tariffs and trade policy — Operations in Mexico and Canada expose the company to potential tariff increases and trade policy changes.

Outlook

Management expects 2026 total net sales to be flat to up approximately 5%, including production and tooling revenue, with a gradual truck recovery in the second half. Gross margin is projected at 17% to 19%, depending on mix. Larger tooling customer acceptances are anticipated in the fourth quarter. The company also expects to continue diversifying and generating cash flow from new business wins.