Core Molding's Q2 2025: Navigating Contradictions in Truck Market Recovery and Operational Efficiency

Truck market recovery timeline, capacity and operational efficiency, Truck Market Recovery Expectations, Growth Outlook and Revenue Expectations, SMC Market and Capacity are the key contradictions discussed in Core Molding Technologies' latest 2025Q2 earnings call.



New Business Wins and Growth Strategy:
- Core Molding Technologies won $47 million of new business in the first 6 months of the year, with 99% of that being incremental.
- The growth was driven by exceeding 2024 full-year new wins of $45 million, focusing on new markets like aerospace, EV cars, and municipal buses.

Capital Expenditures and Expansion:
- The company invested $25 million in expanding its Matamoros plant and building a new plant and equipment in Monterrey, Mexico.
- This investment supports new business wins and adds DCPD molding and top coat paint capabilities to the Monterrey facility, improving customer offerings.

Financial Performance and Profitability:
- Core Molding Technologies reported second quarter revenue of $79.2 million, representing a 10.7% decrease from the same period a year ago.
- Despite the decline, the company maintained gross margins at 18.1% and achieved positive free cash flow from operations over $9 million for the first half of the year.

Operational Efficiencies and Cost Management:
- The company plan to invest $1.5 million in a footprint optimization project, expecting direct cost savings of over $1 million annually starting from January 2026.
- Operational efficiencies and lower raw material costs partially offset lower leverage, contributing to the stability of gross margins.

Leadership Transition and Succession Planning:
- The company announced the retirement of President and CEO David Duvall by the end of May 2026, with Eric Palomaki succeeding him as CEO.
- The transition is part of a strategic plan and reflects the organization's commitment to succession readiness and continued growth.