Monitor H2 2026 truck market recovery as the key catalyst for production revenue growth; Mexico expansion capex of $18-20M will pressure FCF but supports long-term diversification. Any guidance revision on the next earnings call would be a more significant signal.
Price Chart
Executive Summary
Q2 2026 GAAP EPS of $0.21 matched consensus while total revenue of $62.7M beat the $60.0M estimate, largely driven by tooling project revenue. However, production revenue declined 1.2% YoY and net income fell 56% to $1.8M as prior-year quarters benefited from large tooling projects. Gross margin improved to 20.3% from 18.1% a year ago. The company maintained its full-year 2026 outlook (flat-to-~5% revenue growth, 17-19% gross margin) and strengthened its balance sheet by repaying its term loan and securing new $100M credit facilities.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.21 in-line with consensus of $0.21
- Total net revenue $62.7M beat $60.0M consensus, but includes $1.8M tooling project revenue vs $17.6M in Q2 2025
- Production revenue $60.9M declined 1.2% YoY; excluding truck downcycle, production revenue grew 20.8%
- Gross margin expanded 220bps to 20.3% (19.4% excluding one-time customer credit)
- Net income $1.8M vs $4.1M in prior-year Q2; operating income $2.3M vs $5.2M
- Adjusted EBITDA $7.6M (12.2% margin) vs $9.5M (12.0% margin) last year
- Full-year 2026 guidance maintained: revenue flat-to-~5% growth, gross margin 17-19%
- Huntington Term Loan fully repaid; new $50M revolver and $50M delayed-draw term loan (maturity July 2031)
- Cash $12.1M vs $38.1M year-end 2025, reflecting $12.1M capex in H1 2026 (mostly Mexico expansion)
Financial Impact
In-line quarter with no material surprise; revenue beat is overshadowed by halved net income and maintained guidance
Risk Factors
- Truck cycle recovery delayed beyond H2 2026 could prolong revenue weakness
- Mexico expansion execution and integration risks may increase costs
- Negative free cash flow (-$5.0M in H1 2026) due to elevated capex
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001026655-26-000049 |
| Document: cmt-20260804.htm | 0001026655-26-000049 |
| Document: 0001026655-26-000049-index-headers.html | 0001026655-26-000049 |
| Document: 0001026655-26-000049-index.html | 0001026655-26-000049 |
| Document: 0001026655-26-000049.txt | 0001026655-26-000049 |
| 8-K Data (Synthetic) | 0001026655-26-000049 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | Press Release | $22.44 | awaiting T+60 | — | $22.78 (+1.52%) |
Sep 28, 2026 29d ago | 8-K | $22.50 | awaiting T+60 | — | $22.78 (+1.24%) |
Sep 28, 2026 29d ago | 8-K | $22.50 | awaiting T+60 | — | $22.78 (+1.24%) |
Aug 4, 2026 12w ago | 8-K | $24.55 | awaiting T+60 | — | $22.78 (−7.21%) |
Jul 1, 2026 16w ago | Insider Cluster | $23.61 | awaiting T+60 | — | $22.78 (−3.52%) |
Jun 8, 2026 20w ago | 8-K | $23.24 | awaiting T+60 | — | $22.78 (−1.98%) |
Jun 5, 2026 20w ago | 8-K | $23.25 | awaiting T+60 | — | $22.78 (−2.02%) |
May 19, 2026 23w ago | 8-K | $23.40 $25.31 | ▼ −8.16% | ▼ −3.16% | $22.78 (+2.65%) |
May 7, 2026 24w ago | 8-K | $24.96 $24.00 | ▲ +3.85% | ▲ +7.68% | $22.78 (+8.73%) |
May 7, 2026 24w ago | Press Release | $24.96 $24.00 | ▼ −3.85% | ▼ −7.68% | $22.78 (−8.73%) |
US Market Status
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