Expect negative stock reaction on the EPS miss, but the maintained guidance and margin improvement could limit downside. Monitor the conference call for truck orders and Mexico expansion timeline. If truck recovery signs are robust, the selloff may be shallow.
Price Chart
Executive Summary
CMT's Q1 2026 results missed drastically on EPS ($0.07 vs $0.22 consensus) as revenue declined 4.7% YoY, driven by continued truck downcycle. While gross margins expanded to 20.4% and adjusted EBITDA was stable, the sharp earnings miss and negative free cash flow overshadow these positives. Management maintained its 2026 sales guidance of flat to +5% growth, contingent on truck recovery in H2.
Key Financial Metrics
Key Facts
- Revenue declined 4.7% YoY to $58.6M, in line with company expectations.
- GAAP diluted EPS of $0.07 missed consensus of $0.22 by 68%.
- Net income fell 72% to $0.6M from $2.2M in Q1 2025.
- Gross margin improved 120bps to 20.4% (19.2% a year ago).
- Operating cash flow was -$9.2M vs +$6.1M a year ago; free cash flow -$13.0M.
- Company maintained 2026 sales guidance of flat to +5% YoY.
- SG&A included $0.9M succession plan costs and $2.1M Mexico expansion costs.
Financial Impact
EPS miss of $0.15 per share (-68%) vs consensus; revenue inline with muted expectations.
Risk Factors
- Truck sector downturn persists longer than expected.
- Mexico expansion capital expenditure weighs on cash flow and margins.
- Customer concentration risk in truck and powersports markets.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001026655-26-000027 |
| Document: cmt-20260506.htm | 0001026655-26-000027 |
| Document: 0001026655-26-000027-index-headers.html | 0001026655-26-000027 |
| Document: 0001026655-26-000027-index.html | 0001026655-26-000027 |
| Document: 0001026655-26-000027.txt | 0001026655-26-000027 |
| 8-K Data (Synthetic) | 0001026655-26-000027 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | Press Release | $22.44 | awaiting T+60 | — | $22.61 (+0.76%) |
Sep 28, 2026 28d ago | 8-K | $22.50 | awaiting T+60 | — | $22.61 (+0.49%) |
Sep 28, 2026 28d ago | 8-K | $22.50 | awaiting T+60 | — | $22.61 (+0.49%) |
Aug 4, 2026 11w ago | 8-K | $24.55 | awaiting T+60 | — | $22.61 (−7.90%) |
Jul 1, 2026 16w ago | Insider Cluster | $23.61 | awaiting T+60 | — | $22.61 (−4.24%) |
Jun 8, 2026 20w ago | 8-K | $23.24 | awaiting T+60 | — | $22.61 (−2.71%) |
Jun 5, 2026 20w ago | 8-K | $23.25 | awaiting T+60 | — | $22.61 (−2.75%) |
May 19, 2026 22w ago | 8-K | $23.40 $25.31 | ▼ −8.16% | ▼ −3.16% | $22.61 (+3.38%) |
May 7, 2026 24w ago | 8-K | $24.96 $24.00 | ▲ +3.85% | ▲ +7.68% | $22.61 (+9.42%) |
May 7, 2026 24w ago | Press Release | $24.96 $24.00 | ▼ −3.85% | ▼ −7.68% | $22.61 (−9.42%) |
US Market Status
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