Core Molding Q2 production revenue falls 1.2% on weak truck demand

Overview

• US engineered materials firm's fiscal Q2 production revenue fell 1.2% yr/yr on weak truck demand

• Adjusted net income per share for Q2 declined from prior year

• Company secured $26 mln in new business awards, expanding into energy storage and utilities

Outlook

• Core Molding expects 2026 net sales to be flat to up approximately 5%

• Company projects 2026 gross margin in the 17% to 19% range

• Core Molding expects gradual recovery in truck market during second half of 2026

Result Drivers

• TRUCK MARKET WEAKNESS - Co said lower production sales were due entirely to softness in the medium- and heavy-duty truck market

• OTHER MARKETS OFFSET - Strong growth in powersports, building products, and industrial and utilities end markets offset truck weakness, per CEO Eric Palomaki

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to favorable product mix, operating efficiencies, and a one-time customer capacity credit

Company press release: ID:nGNX5JbxhP

Key Details

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 $29.00, about 20.8% above its August 3 closing price of $24.00

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Aug 3 - Commercial Vehicle Group Q2 revenue beats estimates; 2026 outlook lifted

• Aug 3 - Allison Transmission Q2 sales rise 92% on Allison Transmission unit growth

• Aug 4 - DuPont raises annual profit forecasts after quarterly beat on price hikes, cost cuts

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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.)