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Jun 30, 2025
Core Molding Q2 2025 Earnings Report
Core Molding Technologies reported its financial and operating results for the second fiscal quarter ended June 30, 2025.
Key Takeaways
Core Molding Technologies delivered solid profitability and healthy operating and free cash flow in Q2 2025, despite sales declines primarily due to a truck program phase-out and persistent consumer demand weakness in the truck and powersports segments. The company maintained gross margins within its projected range and made significant progress on its 'Invest For Growth' strategy, securing $47 million in new incremental business.
Core Molding Technologies maintained gross margins between 17% and 19% despite a decrease in sales.
The company secured $47 million in new incremental business in the first half of 2025, with programs launching over the next two years.
Core Molding generated $9.6 million in cash from operations and $5.2 million in free cash flow during the second quarter.
The company announced a new Volvo Mexico program, anticipating $150 million in revenues over the next seven to ten years, supported by a $25 million investment in plant expansion and new facilities in Mexico.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Core Molding Technologies expects year-over-year sales comparisons to improve in the second half of 2025, with projected sales moderating to a manageable 4% to 6% decline range. The company anticipates continued investment in its 'Invest For Growth' strategy, including significant capital expenditures for new programs and plant expansions.
Positive Outlook
- Year-over-year sales comparisons are expected to improve in the second half of 2025.
- Projected sales decline moderating to a manageable 4% to 6% in the second half.
- New incremental business wins totaling $47 million are expected to launch over the next two years.
- Investment of $25 million over the next 18 months for the Volvo Mexico program and plant expansion, with $8 to $10 million anticipated by end of fiscal 2025.
- Long-term Volvo Mexico programs are anticipated to provide revenues of $150 million over the next seven to ten years.
Challenges Ahead
- Sales mix is expected to be meaningfully impacted by higher tooling sales in 2025, which could pressure gross margins.
- Market demand levels in 2025 are not where the company desires them to be.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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