Key Highlights

  • Product Revenue grew 19.7%, and Net Income was USD 1.5 million, or USD 0.17 per share, versus USD 0.22.
  • Adjusted net income was USD 2.9 million, or USD 0.33 per share, and adjusted EBITDA was USD 6.4 million.
  • Gross Margin was 14.8% versus 17.4%, and would have been 18.6% excluding tooling mix and Monterrey commissioning charges.
  • Management kept full-year net sales guidance of flat to up 5% with gross margin in the 16% to 17% range.

Quarter Absorbs Start-Up Costs

Core Molding Technologies, Inc. (NYSE American:CMT), a maker of molded structural products for the truck, powersports, building products and utilities markets, reported fiscal third-quarter 2026 results with product revenue growth of 19.7%. Net income was USD 1.5 million, or USD 0.17 per diluted share, compared with USD 1.9 million, or USD 0.22. Adjusted net income was USD 2.9 million, or USD 0.33 per share, compared with USD 0.24 a year earlier.

Gross margin of USD 13.4 million was 14.8% of net revenues versus 17.4% in the prior-year quarter. Selling, general and administrative expense was USD 11.8 million, or 13.1% of net revenues, and included USD 1.8 million of non-recurring costs tied to the Mexico expansion and footprint optimization. Operating Income was USD 1.6 million, or 1.8% of net revenues. Adjusted EBITDA was USD 6.4 million, or 7.1% of net revenues, compared with USD 6.4 million, or 11.0%.

Analyst estimates were EPS of USD 0.06 against reported EPS of USD 0.33, and revenue of USD 86.2 million against reported revenue of USD 90.2 million.

Mexico Expansion and Pipeline

President and Chief Executive Officer Eric Palomaki said the quarter absorbed one-time start-up costs from the Mexico expansion, footprint optimization and higher input costs. The Monterrey Facility is now operational, and two 4,500-ton presses in Matamoros are scheduled to come online by year end. Medium- and heavy-duty truck production continued to recover, and building products and industrial and utilities markets stayed healthy.

The company has secured USD 30 million of new Business awards this year and sees a path to USD 50 million through six major projects in the last stage of its sales pipeline. It also reported a award for battery energy storage systems.

Nine-Month Results and Balance Sheet

For the first nine months, net revenues comprised production revenue of USD 183.2 million, up 3.6% on higher powersports Demand and program launches, and tooling project revenue of USD 28.4 million versus USD 22.3 million. Net income was USD 3.9 million, or USD 0.45 per share, versus USD 8.1 million, or USD 0.93. Adjusted EBITDA was USD 21.4 million, or 10.1% of net revenue, versus USD 23.1 million, or 11.6%.

Cash and cash equivalents fell to USD 5.4 million from USD 38.1 million at the end of 2025. Operating Cash Flow for the nine months was USD 3.4 million versus USD 14.2 million, Capital spending was USD 19.7 million versus USD 9.3 million, and free cash flow was negative USD 16.3 million versus positive USD 4.9 million. Inventories rose to USD 26.7 million from USD 19.7 million and receivables rose to USD 40.6 million from USD 30.8 million. For 2026 the company expects capital spending of USD 28 million to USD 30 million, including USD 20 million for Mexico.

Items to Follow

Matamoros press start-up, gross margin recovery toward the 16% to 17% range and conversion of pipeline awards into revenue are the items to follow.