Financial Data and Key Metrics Changes - Total sales for Q2 2025 decreased by 19.1% year-over-year to $132.3 million, primarily due to soft customer demand and channel inventory destocking [20] - Adjusted EBITDA for Q2 was $13.7 million, down from $19.6 million in the prior year, with an adjusted EBITDA margin of 10.3%, a decrease of 170 basis points [22] - Free cash flow during Q2 was $12.5 million, compared to $19.2 million in the prior year, reflecting less cash generated from operating activities [23] Business Line Data and Key Metrics Changes - Manufacturing margin decreased to $13.6 million in Q2 from $22.3 million in the same prior year period, with a manufacturing margin rate of 10.3% compared to 13.6% [20][21] - The company secured its first cross-selling win after the acquisition of AccuFab, which is expected to generate revenues in the third quarter [10] Market Data and Key Metrics Changes - The commercial vehicle market is projected to see a 24% decline in production in 2025, with an expected production of approximately 252,000 units [9] - Customer orders in key end markets have remained soft, particularly in commercial vehicles, power sports, and agriculture [7] Company Strategy and Development Direction - The company completed the acquisition of AccuFab, which is expected to increase its serviceable addressable market by approximately 60% to $8 billion [6] - The focus remains on increasing share of wallet with existing customers and expanding into high-growth adjacent markets [5] - The company aims to achieve a billion dollars in revenue and adjusted EBITDA margins exceeding 15% in the long term [15] Management's Comments on Operating Environment and Future Outlook - Management has withdrawn the 2026 financial targets due to the current macro environment but believes the financial profile implied by those targets is achievable once demand normalizes [15] - The company does not expect a recovery in market demand in the second half of 2025, particularly in the commercial vehicle market [9][72] Other Important Information - The company has initiated cost reduction initiatives and is consolidating facilities to optimize its manufacturing footprint [10][28] - The updated 2025 financial guidance reflects expected net sales between $528 million and $562 million, with adjusted EBITDA between $49 million and $55 million [24] Q&A Session Summary Question: Insights on AccuFab integration and synergies - Management expressed excitement about the integration of AccuFab and the potential for significant commercial synergies, projecting AccuFab revenues to reach approximately $100 million by 2028 [34] Question: Clarification on market outlook and customer feedback - Management noted that the primary change in outlook is in the commercial vehicle market, with significant reductions in production capacity observed among key customers [38][40] Question: Discussion on military and other segments - Management indicated that the military segment remains stable, with ongoing programs expected to progress due to global conflicts and restocking of US inventories [92] Question: Future contracts and reshoring opportunities - Management highlighted an increase in requests for quotations driven by tariffs, indicating a potential for reshoring aluminum fabrications to the US [84] Question: Sustainability of military backlog and revenue sources - Most military programs are recurring, with a small portion from aftermarket services, ensuring a stable revenue stream [90]