Core Molding Technologies, Inc. reported its second quarter fiscal 2025 results, with net sales totaling $79.24 million, a 10.7% decrease from the prior year. Despite top-line pressures, the company maintained a gross margin of 18.1% for Q2 2025 and 18.5% for the first half of 2025, within its targeted 17-19% range. Adjusted EBITDA for Q2 2025 was $6.5 million, representing a 12% margin.
The company announced significant new business wins, securing $47 million in the first half of 2025, with 99% being incremental. A key win includes the Volvo Mexico truck business, projected to generate $150 million in revenues over the next 7 to 10 years. To support this growth, CMT is investing $25 million over the next 18 months for an expansion of its Matamoros plant and a new 150,000 square foot facility in Monterrey, Mexico, which will add DCPD molding and top coat paint capabilities.
CMT's balance sheet remains robust with $93.2 million in total liquidity, including $43.21 million in cash, as of June 30, 2025. Cash flow from operations for H1 2025 was $9.59 million, leading to a positive free cash flow of $5.2 million. The company also continued its share repurchase program, buying back 88,207 shares in Q2 2025 at an average price of $15.07.
In a strategic leadership announcement, Dave Duvall, President and Chief Executive Officer, is set to retire on May 31, 2026. Consistent with the company’s succession plan, Chief Operating Officer Eric Palomaki will assume the President and CEO role effective June 1, 2026. Mr. Duvall will continue to support the company as an Executive Advisor through December 2027, ensuring a smooth transition.
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