Core Molding Technologies Reports Decline in Revenue and Net Income for Fiscal Year 2024

Core Molding Technologies, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with net sales totaling $302.4 million, down from $357.7 million in 2023. The decrease in revenue was primarily attributed to reduced demand across all significant markets, particularly in the medium and heavy-duty truck sector, which accounted for 56% of total sales. The company’s net income also fell to $13.3 million, or $1.51 per diluted share, compared to $20.3 million, or $2.31 per diluted share, in the previous year. Gross margin slightly decreased to 17.6% from 18.0%, reflecting lower fixed cost leverage and production inefficiencies.

In terms of operational changes, Core Molding Technologies experienced a significant shift in its customer base, with five major customers—BRP, International, PACCAR, Volvo, and Yamaha—accounting for approximately 69% of total sales. Notably, sales to International increased to 22% of total sales, while sales to Volvo decreased to 14%. The company is currently transitioning its business with Volvo from existing production programs to new ones, which may impact future revenues. Additionally, the company repurchased 172,043 shares of its common stock during the year under a stock repurchase program authorized for up to $7.5 million.

The company’s operational metrics showed a total employee count of 1,570 as of December 31, 2024, with a significant portion of the workforce covered by collective bargaining agreements. Core Molding Technologies operates six production facilities across the U.S., Canada, and Mexico, and continues to focus on enhancing its manufacturing capabilities and product offerings. Capital expenditures for the year were approximately $11.5 million, primarily for equipment improvements and production capacity enhancements.

Looking ahead, Core Molding Technologies anticipates a revenue decrease of approximately 5% to 10% in the first half of 2025 compared to 2024, with expectations of flat revenue for the full year. The company is actively pursuing new business opportunities to offset the loss of revenue from transitioning programs with existing customers. Management remains optimistic about stabilizing raw material supply chains and labor markets, although they acknowledge potential cost pressures due to inflation and tariffs. The company’s strategic focus will continue to be on securing new contracts and improving operational efficiencies to navigate the evolving market landscape.