Core Molding Technologies Reports Decline in Q2 2025 Financial Performance

Core Molding Technologies, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $79.2 million, down from $88.7 million in the same period last year. For the first half of 2025, total revenue reached $140.7 million, a decrease from $166.9 million in the first half of 2024. The company's gross margin also fell to 18.1% from 20.0% year-over-year, attributed to lower fixed cost leverage and an unfavorable sales mix. Net income for the second quarter was $4.1 million, or $0.47 per share, compared to $6.4 million, or $0.74 per share, in the prior year.

The decrease in revenue was primarily driven by reduced demand in the power sports and medium and heavy-duty truck markets, particularly as the company transitioned its business with Volvo to new programs. However, there was an increase in demand from the industrial and utilities sectors, which partially offset the declines. Tooling project sales also saw a significant increase, rising to $17.6 million from $4.8 million in the previous year, although these sales are typically sporadic.

Operationally, Core Molding Technologies has maintained a stable cash position, reporting $43.2 million in cash and cash equivalents as of June 30, 2025. The company has also been actively managing its expenses, with selling, general, and administrative expenses (SG&A) decreasing to $9.1 million from $10.2 million in the prior year, largely due to lower bonuses and favorable foreign currency translations. The company’s employee headcount remained stable, supporting its operational capabilities across its six production facilities in North America.

Looking ahead, Core Molding Technologies anticipates a revenue decline of approximately 4% to 6% for the second half of 2025 compared to the previous year, influenced by ongoing market uncertainties and the distribution of heavy-duty truck pre-buy volumes. The company expects raw material prices to remain stable or slightly increase, with no significant impact from tariffs anticipated due to its compliance with the United States-Mexico-Canada Agreement (USMCA). The management remains focused on optimizing its operations and launching new programs to enhance revenue streams in the coming quarters.