Core Molding Technologies Reports Decline in Q1 2025 Financial Performance

Core Molding Technologies, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales totaling $61.4 million, down from $78.1 million in the same period of 2024. The decrease in revenue was primarily attributed to reduced demand in the power sports and medium and heavy-duty truck markets, particularly as the company transitions its business with Volvo to new programs. Gross margin for the quarter was 19.2%, an increase from 17.0% in the prior year, benefiting from favorable changes in selling prices and raw material costs, although this was partially offset by lower fixed cost leverage.

Operating income for the first quarter of 2025 was reported at $2.8 million, a decrease from $4.7 million in the previous year. Selling, general, and administrative expenses rose slightly to $8.9 million, which included a severance expense of $500,000. Excluding this expense, SG&A costs were lower than the previous year, reflecting reduced labor and benefits costs. Net income for the quarter was $2.2 million, or $0.25 per share, compared to $3.8 million, or $0.43 per share, in the first quarter of 2024.

In terms of operational developments, Core Molding Technologies maintained a stable cash position with $44.5 million in cash and cash equivalents as of March 31, 2025, compared to $41.8 million at the end of 2024. The company also reported an increase in accounts receivable and inventories, indicating a potential buildup in working capital. The total employee headcount remained consistent, supporting ongoing operations across its six production facilities in the U.S., Canada, and Mexico.

Looking ahead, the company anticipates a revenue decline of approximately 10% to 15% for the first half of 2025 compared to the previous year, influenced by cyclical demand and potential regulatory changes. However, Core Molding Technologies expects a shift in revenue mix towards tooling revenues as new programs launch throughout the year. The company’s raw material supply chains are stable, and pricing is expected to remain flat or slightly increase, with no significant impact anticipated from tariffs due to compliance with the USMCA.

Overall, Core Molding Technologies is navigating a challenging market environment while focusing on operational efficiencies and strategic transitions to new customer programs. The company remains committed to managing costs and optimizing its product offerings to enhance profitability in the coming quarters.