CMT earnings analysis
What we found in CMT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Core Molding delivered Q2 revenue of $62.729 million and diluted EPS of $0.21; revenue improved from the implied $58.583 million first-quarter level but fell from $79.239 million and EPS fell from $0.47 a year earlier, primarily because tooling revenue declined by $15.767 million. Gross margin improved to 20.3% from 18.1%, aided by a 90-basis-point one-time capacity benefit, while Mexico-expansion and severance costs totaled $1.789 million in Q2 SG&A. Liquidity remains adequate following repayment of the term loan, but $12.082 million of six-month capex exceeded $7.070 million of operating cash flow, and management maintained its outlook for approximately 0% to 5% 2026 revenue growth.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue recovered sequentially, fell 20.8% YoY
- Q2 revenue was $62.729 million, up from the implied Q1 level of $58.583 million, but down $16.510 million, or 20.8%, from $79.239 million a year earlier. The year-over-year decline was overwhelmingly tooling related: tooling revenue fell to $1.839 million from $17.606 million, while product revenue declined only $0.743 million to $60.890 million.
- Gross margin expanded despite lower sales
- Gross margin reached 20.3%, up 220 basis points from 18.1% a year ago, though it was below the implied 20.5% first-quarter level. The reported Q2 margin included a favorable one-time capacity charge worth 90 basis points; excluding it, margin was 19.4%.
- EPS declined on tooling and one-time costs
- Diluted EPS was $0.21, versus $0.47 in Q2 2025, while six-month diluted EPS was $0.27 versus $0.72. Q2 SG&A of $10.433 million included $1.302 million of Mexico-expansion expense and $0.487 million of severance expense.
- Non-truck markets offset some truck weakness
- Product-market performance was mixed: medium/heavy-duty truck revenue declined $7.074 million to $24.172 million, while power sports rose $1.037 million to $15.245 million, building products rose $1.645 million to $6.316 million, and all other rose $3.316 million to $8.950 million.
- Capex exceeded operating cash generation
- Six-month operating cash flow was $7.070 million, but capital expenditures were $12.082 million, as working-capital increases consumed $2.056 million of cash. Cash on hand was $12.134 million at June 30, with no outstanding revolver or Capex-loan borrowings.
- Debt repaid and liquidity facility expanded
- The company repaid $19.843 million of long-term debt during the first six months and fully repaid the Huntington Term Loan by June 30. Subsequently, it refinanced into aggregate credit facilities of $100.0 million, comprising a $50.0 million revolver and a $50.0 million delayed-draw term facility, both maturing July 2, 2031.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tooling revenue remains highly volatile
- Tooling-project revenue fell to $1.839 million from $17.606 million in Q2 2025, a $15.767 million decline. Management states tooling revenue is sporadic and fluctuates based on project scope, leaving reported sales and earnings exposed to program timing.
- Truck-program transition pressures demand
- Medium- and heavy-duty truck product revenue declined to $24.172 million from $31.246 million, driven in part by Volvo business transitioning from programs the company supplies to programs it does not support.
- Mexico project creates near-term cash and cost drag
- The Mexico expansion is capital intensive: expected 2026 spending is $18.0 million to $20.0 million, within total planned capex of $25.0 million to $30.0 million. Management also expects approximately $500,000 of incremental one-time costs in the second half of 2026, primarily in Q3.
- No material risk-factor updates disclosed
- Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. Accordingly, this filing does not disclose a newly added or materially revised risk factor.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.21
- Gross margin
- 20.3%
- Segment
- The company reports one operating segment. Product-market revenue: medium/heavy-duty truck $24.172 million; power sports $15.245 million; building products $6.316 million; industrial and utilities $6.207 million; all other $8.950 million. Tooling-project revenue was $1.839 million.
What they said about what is next.
The company continues to expect calendar-2026 revenue growth of approximately 0% to 5% versus 2025, with the second half of 2026 greater than the first half. It expects 2026 capital spending of approximately $25.0 million to $30.0 million, including approximately $18.0 million to $20.0 million for the Mexico expansion; it also expects approximately $500,000 of incremental Mexico-expansion costs in the second half, primarily Q3. No EPS outlook was provided in the 10-Q.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 7, 2026
- Core Molding Technologies reported a Q1 2026 revenue of $58.6 million and EPS of $0.07, both of which fell short of consensus estimates. Despite a decline in revenue compared to the previous year, the company achieved a…
- 10-Q · August 5, 2025
- Core Molding reported Q2 net sales of $79,239,000, down versus Q2 2024 ($88,743,000) but up sequentially from implied Q1 2025 sales of $61,447,000. Gross margin narrowed to $14,314,000 (18.1%) and operating income was…
- 10-Q · May 8, 2025
- Core Molding reported quarterly revenue of $61,447,000 (down 21.4% vs. $78,145,000 a year ago) and diluted EPS of $0.25 (down from $0.43). Gross margin improved to 19.2% while operating margin compressed to 4.6%;…
- 10-Q · November 5, 2024
- Core Molding reported revenue of $72,992,000 for the three months ended September 30, 2024, down from $86,728,000 a year earlier. Gross margin dollars declined to $12,345,000 and diluted EPS fell to $0.36 (from $0.49),…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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