CORE MOLDING TECHNOLOGIES INC Q1 FY2026 earnings call

Eric thanked Dave for his impact, split COO role with Arnold Alaniz leading Mexico ops and Mike Gayford overseeing US and Canada ops. Teams had 99.1% on-time delivery and 52 ppm quality performance. Invest for Growth initiatives generated $17 million new business wins. Business development pipeline over $220 million, target $50 million new program awards in 2026. Preparing Investor Day in Sept and East Coast Ideas Conference in June.

First quarter product revenue was lighter. The company delivered $17 million in additional new wins, relocated five of nine presses into new facility in Monterey. Gross margin was 20.4%, an increase of 120 basis points year over year and 520 basis points sequentially. Power sports market had 46% year-over-year revenue growth for third consecutive quarter. Invested $6.5 million in 2025 to expand Mexico operations and plan to invest additional $19 million this year, projects ahead of schedule.

First quarter revenues declined 4.7% year-over-year. Full year gross margin target 17 - 19%. Total sales flat to up ~5% in 2026 with tooling revenue weighted to 4th quarter. 2025's $63 million new wins mostly contribute to 2026 H2 and hit full annualized volumes in 2027. Mexico expansion related expense $2.1M in Q1, expected $900k in Q2. Succession related cost $924k in Q1, expected ~$900k more in 2026. Monitor USMCA review and oil price impacts on demand and costs.

USMCA scheduled for joint governmental review in July 2026 which could affect demand patterns. Recent oil price increases have contractual mechanisms to pass through most costs but still have uncertainties.

Q: Chip Moore asked about Power Sports strength and Q2 impacts, A: Recovery with watercraft push, skid plate launch, and base recovery in all mix.

Q: Bill Rosello asked about AR and contract liabilities, A: Related to progress billing to Volvo.

Q: Lawrence Baumgartner asked about Mexico expansion expenses and acquisition strategy, A: Expenses expensed as no true value add, strategy continues with no major changes, Dave to advise for 18 months