- **Power Sports Recovery**: 8% YoY growth in power sports after 8 quarters of decline, driven by UTV skid plate program ($8M annual run-rate). 
- **Mexico Expansion**: $25M investment in DCPD molding and topcoat paint capabilities, targeting $300M+ 2027 revenue. 
- **Financial Resilience**: 17.4% gross margin, 11% EBITDA margin, and $4.9M free cash flow despite 19.9% revenue decline. 
- **Tooling Timing**: Q4 tooling sales (~15% of 2025 revenue) to offset Q3 decline, with $35M 2027 tooling revenue. 
- **SMC Momentum**: Four customers complete SMC trials, with potential wins in Q4 and $200M total addressable market.

### CEO Summary Section
- **Revenue Growth and Market Recovery**: Despite a 19.9% YoY decline in Q3 revenue ($58.4M), the company highlights recovery in power sports (8% YoY growth after 8 quarters of decline) and new business wins ($46.7M incremental in 2025). The UTV skid plate program is expected to generate $8M annual run-rate revenue.
- **Strategic Investments**: $25M investment in Mexico expansions (Matamoros and Monterrey) for DCPD molding and topcoat paint capabilities. New business development roles focus on wallet-share growth and SMC opportunities.
- **Operational Efficiency**: 99% on-time deliveries, 62 PPM quality performance, and industry-low safety incident rates. Footprint optimization in RTM processes to save $1M/year starting Q1 2026.
- **Long-Term Outlook**: Targeting $300M+ revenue in 2027 from truck and power sports programs, with $150M in revenue over 7-10 years. Free cash flow of $4.9M for the first 9 months of 2025.

### CFO Financial Commentary
- **Financial Performance**: Gross margin of 17.4% (within 17%-19% target), adjusted EBITDA margin of 11% (up 70bps YoY). GAAP net income of $1.9M ($0.22 EPS) vs. $3.2M ($0.36 EPS) YoY, impacted by higher tax rates.
- **Cash Flow and Capital Allocation**: $14.2M cash from operations, $9.3M capex, and $4.9M free cash flow. 2025 capex guidance of $18M-$22M, with $7.5M spent on Mexico by end-2025.
- **Tooling Revenue Timing**: Q4 tooling sales expected to offset Q3 decline, with $35M tooling revenue anticipated in 2027. Tooling sales to be ~15% of 2025 revenue but at lower margins.

### Q&A Highlights
- **Tariffs and Trade Compliance**: All products USMCA-compliant, mitigating tariff risks. RMA clauses allow cost pass-through if tariffs apply.
- **SMC Progress**: Four customers completed SMC trials, with potential wins in Q4. Total addressable market for SMC estimated at $200M.
- **Buyback Activity**: $2.1M remaining under $10M buyback authorization, with no shares repurchased in Q3.
- **Truck Market Recovery**: ACT forecasts suggest truck builds to increase in H2 2026, aligning with company's $300M+ 2027 revenue target.

Core Molding Technologies, Inc. (CMT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

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Diluted EPS from Discontinued Operations

CMT

CMT fundamentals

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