Core Molding Reports $58.6M Q1 Sales, 120bp Margin Expansion
CMT•Core Molding reported Q1 fiscal 2026 net sales of $58.6 million, down 4.7% year-over-year, with gross margin expanding 120 basis points to 20.4% and $17 million in new business wins. Adjusted EBITDA rose to $7.3 million (12.5% of sales) and full-year capex is guided at $25–30 million.
1. Q1 Financial Performance
Core Molding delivered net sales of $58.6 million in the first quarter, a 4.7% decline from the prior year driven by the ongoing heavy- and medium-duty truck down cycle. Net income was $0.6 million, or $0.07 per diluted share, while adjusted net income reached $3.2 million, or $0.37 per diluted share.
2. New Business Wins and Market Trends
The company secured $17 million in new business wins during the quarter, led by gains in its Powersports segment across water- and land-based products. Truck orders show early signs of recovery supported by pre-buy activity and new program launches tied to its 2024-and-beyond contract wins.
3. Margin Expansion and Cost Discipline
Gross margin expanded to 20.4% from 19.2% a year ago, reflecting disciplined cost control, footprint optimization and favorable program mix. Adjusted EBITDA improved to $7.3 million, or 12.5% of net sales, up from 11.7% in the prior year quarter.
4. Strategic Investments and Outlook
Capital expenditures in Q1 totaled $3.8 million, including $3.2 million for the Mexico expansion, with full-year capex expected at $25–30 million (including $18–20 million in Mexico). Total liquidity stood at $73.5 million at March 31, and full-year sales are forecast flat to up approximately 5% as truck cycle recovery gains traction in H2 2026.
