Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $16.6 million, down from $23.3 million in the prior year, primarily due to lower product sales to the largest channel partner, partially offset by growth in SuperSuite offerings [13] - Gross profit decreased to $7.2 million from $10.3 million, with gross margin at 43.3% compared to approximately 47% in the previous year, driven by an increase in services income [14] - Net loss attributable to iPower was $340,000 or a loss of $0.01 per share, compared to net income of $1 million or a profit of $0.03 per share in the same period last year [16] - Cash and cash equivalents were $2.2 million as of March 31, 2025, down from $7.4 million at June 30, 2024, while total debt was reduced by 43% to $3.6 million [16][17] Business Line Data and Key Metrics Changes - SuperSuite now accounts for approximately 20% of total revenue, indicating significant adoption of integrated supply chain offerings [6] - The company is enhancing SuperSuite capabilities by adding functions from value-added partners across logistics, merchandising, and data analytics [6][8] Market Data and Key Metrics Changes - The majority of supplies are still sourced from China, although there is an ongoing effort to diversify suppliers, including onboarding US-based suppliers [19] - The company is actively engaging with a sales partner in the US to establish a comprehensive domestic production line, reflecting a strategic shift towards local manufacturing [9][11] Company Strategy and Development Direction - The company is focusing on diversifying its supply chain and expanding manufacturing into the US to build a more agile and durable supply chain [5][10] - The Made in USA initiative aims to support domestic manufacturing by providing resources for legal compliance, facility sourcing, and access to sales channels [8][9] - The commitment to enhancing operational efficiency and building a resilient supply chain remains a strategic priority [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious demand environment but believes that diversification efforts and the momentum in SuperSuite will help navigate current market conditions [12] - The company is taking a disciplined approach to capital allocation while strengthening its operational foundation [11][12] Other Important Information - The company has reduced operating expenses by 15% to $7.4 million, driven by lower general and administrative costs and reduced selling and fulfillment expenses [14][15] - The ongoing efforts to diversify the supply chain are expected to yield operational benefits, including improved production economics and streamlined logistics [11][17] Q&A Session Summary Question: What is the exposure to different geographies based on sales in Q3? - Management indicated that while Southeast Asia is growing, the majority of supplies still come from China, with efforts ongoing to diversify further [19] Question: How does the inventory situation affect the largest channel partner's reordering? - Management emphasized the importance of maintaining adequate inventory levels in the US to balance overall demand and avoid overstocking [20][22] Question: What expertise does the company have in supporting the Made in USA initiative? - Management highlighted their established sales channels, product capabilities, and understanding of local policies as critical components for successfully launching manufacturing in the US [25][26][27]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported an adjusted EBITDA loss of $81 million, primarily due to weaker automotive demand and lagged pricing [33] - Total shipments in Q4 were 3.8 million tons, lower than Q3 due to idling of the C6 furnace and seasonally weaker demand [37] - Q4 price realization was $976 per net ton, a decrease of $70 per net ton from the previous quarter, influenced by the inclusion of Stelco and its lower price mix [37] Business Line Data and Key Metrics Changes - Direct shipments to the automotive sector in Q4 were the lowest since the pandemic, reflecting a significant impact from weak demand [33] - The company expects to improve shipment levels above 4 million tons in Q1 2025 due to better demand and full utilization of Stelco [37] - The inclusion of Stelco helped reduce weighted average unit costs by approximately $15 per net ton compared to the prior quarter [38] Market Data and Key Metrics Changes - The demand for steel in 2024 was the weakest since 2010, with significant declines in automotive demand and construction activity [8] - The company noted a significant uptick in demand for automotive steel as 2025 begins, with improved volumes from both existing and new programs [23] - The company is experiencing a tightening scrap market, with prime scrap prices increasing by $70 per gross ton in just two months [21] Company Strategy and Development Direction - The company is focused on leveraging tariffs to strengthen domestic production and protect American manufacturing [11][12] - The acquisition of Stelco is expected to yield $120 million in synergies, with many already in motion [18][145] - The company aims to maintain a target net debt-to-EBITDA ratio of 2.5 times and will use free cash flow for debt reduction [41][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a recovering order book and rising steel prices [6][34] - The company anticipates that the fourth quarter of 2024 was the trough in profitability, with expectations for improved performance in 2025 [35] - Management highlighted the importance of domestic manufacturing and the positive impact of tariffs on the steel industry [10][14] Other Important Information - The company reported a total reportable incident rate of 0.9% for 2024, indicating a strong safety record [26] - The company has $3 billion in liquidity and plans to focus on debt reduction following the acquisition of Stelco [40][132] - Capital expenditures for 2025 are expected to be $700 million, down from $800 million in 2024 [46] Q&A Session Summary Question: Discussion on evolving tariff environment and implications for Stelco - Management stated that tariffs are necessary and will benefit the overall business, with minimal negative impact on Stelco [54][55] Question: Mechanics of reporting tariffs in adjusted EBITDA - Management confirmed that results will be reported as they are, without excluding tariffs from adjusted EBITDA [58][59] Question: Volume cadence and cost guidance for 2025 - Management indicated that only 30% to 35% of volumes will be under fixed pricing, with a $40 per ton reduction in costs expected for the full year [76][78] Question: Capital expenditures and project timelines - Management outlined a clear CapEx plan for 2025, with $500 million for legacy operations and $100 million for Stelco [88][89] Question: Working capital expectations for Q1 - Management expects working capital to be relatively neutral in Q1, with benefits seen in subsequent quarters [124][115] Question: Pricing expectations for automotive steel in 2025 - Management indicated that automotive prices may slightly decrease but are not expected to drop significantly compared to competitors [126] Question: Possibility of equity issuance - Management confirmed there are no plans for equity issuance, focusing instead on debt reduction [128][132] Question: Conditions for restarting the C6 furnace - Management stated that the C6 furnace remains indefinitely idle with no current plans for a restart [141] Question: Synergies from Stelco acquisition - Management expressed confidence in exceeding the $120 million synergy target, with many initiatives already underway [144][145] Question: Status of the Zanesville electrical steel line - Management confirmed that the electrical steel line is ramping up and they are well-positioned in the market [150][153]