Key Highlights

  • Total net Revenue rose 54.4% to USD 90.2 million in the quarter ended September 30, 2026, as tooling project revenue reached USD 25.4 million against USD 4.3 million a year earlier.
  • Production revenue grew 19.7% to USD 64.8 million, led by medium and heavy-duty truck sales up 44.8%, while power sports sales fell to USD 13.6 million from USD 17.5 million.
  • Gross Margin slipped to 14.8% from 17.4%, and management said it would have been about 18.6% without the tooling mix and Monterrey commissioning charges.
  • Diluted EPS was USD 0.17 against USD 0.22, adjusted EPS rose to USD 0.33 from USD 0.24, and guidance of flat to 5% higher full-year sales was reiterated.

Tooling Surge Lifts Third Quarter Sales to USD 90.2 Million

Core Molding Technologies (NYSEAMERICAN:CMT) reported third quarter 2026 results on November 3, 2026, with total net revenue of USD 90.2 million, up 54.4% from USD 58.4 million. Most of the jump came from tooling projects, which are customer-funded programs built ahead of a production cycle. Tooling revenue was USD 25.4 million, and the chief financial officer said a major project contributed earlier than planned after a change in the customer's revenue recognition method. Production revenue still grew 19.7% to USD 64.8 million, driven by heavy-duty truck Demand and new program launches. The company molds structural products for truck, powersports, building products and utilities customers across the United States, Canada and Mexico.

Why Margins Fell Despite Higher Volume

Gross margin was USD 13.4 million, or 14.8% of revenue, against 17.4% a year earlier. Tooling work carries lower margins than production parts, so a larger share of tooling in the mix drags the reported rate even when Volume is healthy. Start-up charges at the new Monterrey plant also weighed. Selling, general and administrative expense rose to USD 11.8 million from USD 7.6 million, including USD 1.8 million of non-recurring Mexico expansion and footprint costs. Operating Income fell to USD 1.6 million from USD 2.6 million, and Net Income was USD 1.5 million, or USD 0.17 per diluted share. Adjusted net income, a non-GAAP measure, was USD 2.9 million, or USD 0.33 per share.

Thin Cash, Mexico Ramp and the Fourth Quarter Test

Cash fell to USD 5.4 million at September 30, 2026 from USD 38.1 million at December 31, 2025, with USD 4.8 million drawn on the revolver. Capital spending reached USD 19.7 million in nine months, USD 12.2 million of it for Mexico, while receivables and inventory both rose. A July 2, 2026 refinancing set up USD 100 million of Credit facilities. Risks include customer concentration, tariffs, raw material costs, security conditions in Mexico and a 22.8% drop in power sports sales (simple arithmetic on the reported figures). Management reiterated 2026 sales of flat to up about 5% and gross margin of 16% to 17%, with the fourth quarter possibly below that range.

Where Things Stand

Revenue jumped 54.4% mainly because tooling revenue reached USD 25.4 million, not because production sales surged by that much; production grew 19.7%. EPS fell because tooling carries lower margins and Core Molding Technologies (NYSEAMERICAN:CMT) absorbed Monterrey start-up and footprint costs, although adjusted EPS rose. The next tests are fourth quarter margins, the start-up of two Matamoros presses due by year-end, and conversion of about USD 30 million in new awards so far this year toward a USD 50 million target.