CMT · Core Molding Technologies, Inc.

Management Discussion of Financial Condition and Results of Operations

Core Molding Technologies’ Q1 FY2026 results reflect a deliberate inflection point in strategic execution: revenue moderated modestly while profitability and cash flow absorbed near-term pressures from planned, forward-looking investments. Revenue decreased 4.7% to $58.6M compared to $61.4M in Q1 FY2025. This decline occurred against a backdrop of fluctuating customer demand — a dynamic the Company notes can require rapid operational ramping, which may disproportionately affect manufacturing efficiencies relative to periods of steady demand.

Cash flow from operations was negative $9.2M, reversing a $6.1M inflow in Q1 FY2025. This shift reflects heightened working capital deployment, particularly related to facility readiness and inventory build in support of new programs. Capital expenditures totaled $3.8M — more than double the prior-year $1.8M — underscoring accelerated investment in growth infrastructure. Management reaffirms its view that cash on hand, operating cash flow, and available borrowings under its credit agreement remain sufficient to meet current liquidity needs. Primary uses of cash continue to be operating expenses, capital expenditures, debt repayments, and potential acquisitions — all consistent with stated financial policy and strategic intent.