Core Molding Technologies Q3 net revenue jumps on tooling projects
Overview
US molded structural products maker's Q3 production revenue rose nearly 20% yr/yr on truck demand
Total net revenues rose 54% yr/yr, boosted by higher tooling project revenue
Profitability affected by one-time Mexico expansion and higher input costs
Outlook
Company expects full-year net sales to be flat to up about 5%
Company sees full-year gross margins in the 16% to 17% range
Company expects 2026 capital spending of $28 mln to $30 mln
Result Drivers
TRUCK DEMAND & NEW PROGRAMS - Co said higher medium and heavy-duty truck demand, new program launches, and strength in building products and industrial and utilities markets lifted production revenue
ONE-TIME COSTS - Profitability was reduced by one-time commissioning costs in Monterrey, footprint optimization, and higher external input costs
TOOLING PROJECT REVENUE - Larger share of tooling project revenue in sales mix weighed on margins but supports future recurring revenue
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $64.80 mln | $86.18 mln (1 Analyst) |
Q3 Net Income | Beat | $1.50 mln | $500,000 (1 Analyst) |
Q3 Adjusted EBITDA | Meet | $6.40 mln | $6.40 mln (1 Analyst) |
Q3 Operating Income | Beat | $1.60 mln | $390,000 (1 Analyst) |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the non-paper containers & packaging peer group is "buy"
Wall Street's median 12-month price target for Core Molding Technologies Inc is $30.00, about 32.7% above its November 2 closing price of $22.60
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)