Core Insights - The construction cycle is currently in a challenging phase, with interest rates having slightly decreased but remaining high compared to historical levels [1] - There is notable capacity expansion in sectors such as data centers, manufacturing, and power generation, while other categories may still be lagging [1] Industry Analysis - The construction industry is experiencing a mixed environment, with some sectors showing growth potential while others face challenges due to high interest rates [1] - The expansion in data centers and manufacturing indicates a shift towards technology-driven infrastructure, which may present investment opportunities [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $70.2 million, down 3% from $72.6 million in Q2 2024 [5][10] - Adjusted earnings per share was $0.56, similar to Q2 2024 results [5] - Net income from continuing operations was $2 million or $0.33 per diluted share, compared to $4.1 million or $0.65 per diluted share in Q2 2024 [12] - Gross margin as a percentage of net sales decreased to 23.3% from 25.4% in the prior year [10][11] - Senior net leverage ratio increased to 1.32 from 1.23 in the previous year [13] Business Line Data and Key Metrics Changes - Eberhard is ramping up participation in the new USPS delivery vehicle program, indicating a strategic focus on custom-engineered solutions [6] - The backlog as of June 28, 2025, decreased by $20 million or 19% to $87.1 million, driven by decreased orders for returnable transport packaging and latch and handle assemblies [10] Market Data and Key Metrics Changes - The heavy truck and automotive markets are currently challenging, with reduced model changes expected to increase in the future [15] - The Class eight truck fleet age has increased significantly, which may lead to increased demand as maintenance costs rise [15][16] Company Strategy and Development Direction - The company is focused on margin protection and has built flexible and resilient supply chains [17] - There is an intention to be active but disciplined in M&A opportunities due to the challenging environment [17] - A share buyback program was completed with 400,000 shares purchased, including 82,000 shares in the quarter [7][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of the business environment on top-line performance but expects recovery in the coming months [16] - The leadership team is in place with a strategic refresh across businesses, positioning the company for future success [20] Other Important Information - The company undertook salaried headcount reductions impacting over 60 jobs, resulting in annual savings of $4 million [6] - Capital expenditures for the quarter were $800,000, and dividends paid were $700,000 [13] Q&A Session Summary - There were no questions from participants during the Q&A session [19]

Core Viewpoint - The aerial work platform industry has experienced a golden decade from 2013 to 2023, but it is now facing challenges due to market saturation and declining demand in key regions [1][2][3]. Group 1: Historical Growth and Market Dynamics - From 2013 to 2017, growth was primarily driven by mature markets in Europe and North America, with significant demand for replacement due to new emission regulations [2]. - The period from 2018 to 2021 saw a surge in demand from China, while the growth from 2021 to 2024 is expected to be led by the United States [2][3]. - The domestic market for aerial work platforms has shown less volatility compared to earthmoving machinery, maintaining steady sales despite a downturn in real estate and infrastructure [3][4]. Group 2: Rental Market Insights - The rental market for aerial work platforms is characterized by a duopoly, with major players holding significant market shares, and rental rates have been declining, indicating oversupply [8][9]. - The rental utilization rate has been on a downward trend, with projections for 2024 indicating a further decline, which could lead to the exit of smaller rental companies [12]. Group 3: Export Challenges and Tariffs - The European Union has initiated anti-dumping and countervailing investigations against Chinese aerial work platforms, leading to increased tariffs that could impact competitiveness [16][17]. - Companies that have localized production in Europe are better positioned to mitigate tariff impacts, with some achieving significant reductions in their tariff rates [18][19]. Group 4: Market Outlook and Future Trends - The aerial work platform market is facing a triple challenge: cooling domestic construction in China, policy pressures in Europe, and limited growth in the Belt and Road Initiative markets [25]. - The U.S. market is showing signs of slowdown, with the infrastructure investment act losing momentum, which could affect future growth prospects for aerial work platforms [24].