Financial Data and Key Metrics Changes - Net earnings for Q3 2025 increased to $15.2 million or $0.78 per share compared to $6.6 million or $0.34 per share in the prior year, with adjusted earnings at $0.81 per share excluding non-recurring charges [4][10] - Average selling prices rose 11.7% year over year and 8.2% sequentially from Q2 2025, reflecting pricing actions taken to manage rising raw material costs [4][6] - Gross profit for the quarter increased to $30.8 million, with gross margin expanding by 650 basis points to 17.1% [6][7] Business Line Data and Key Metrics Changes - Shipments for the quarter increased by 10.5% year over year and 3.5% sequentially, driven by acquisitions and improving demand in construction markets [6][10] - SG&A expenses rose to $10.6 million or 5.9% of net sales compared to $7.9 million or 5.4% in the prior year, primarily due to increased compensation expenses [8][9] Market Data and Key Metrics Changes - The U.S. wire rod market remains tight, with public prices for steel wire rod increasing by approximately $190 per ton since January [5] - The architectural billing index increased to 47.2, indicating early signs of stabilization, while the Dodge Amendment Index rose 6.8% month over month to 225.1, suggesting a growing pipeline for nonresidential construction [13][14] Company Strategy and Development Direction - The company aims to capitalize on improving demand trends while managing working capital and maintaining strong customer relationships [17] - The administration's tariff strategy is seen as a work in progress, with only about 10% of revenue directly affected by imports, indicating a cautious approach to import competition [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing demand recovery despite macroeconomic uncertainties, noting that customer confidence remains strong [19] - The company is well-positioned to navigate near-term challenges while pursuing growth opportunities, both organic and through acquisitions [29] Other Important Information - The effective tax rate for the quarter fell to 23.3%, with expectations to remain around 23.4% for the remainder of the year [10] - The company ended the quarter with $53.7 million in cash and is debt-free, providing financial flexibility for growth opportunities [12] Q&A Session Summary Question: Have quoting levels for newer projects followed the strong business activity trajectory? - Management noted that raw material constraints have caused backlogs to grow, but they remain optimistic about overall market conditions [35] Question: What is the potential timeline to resolve the recent Section 232 tariff disconnect? - Management believes the administration's intent is for the tariff to be on the full value of the product, and they are actively engaging with the Department of Commerce on this matter [37] Question: How is the integration of Engineered Wire Products going? - Management expressed satisfaction with the integration process, noting that they are learning from the acquired facility and seeing positive operational results [39] Question: Do you anticipate being able to maintain current margin levels? - Management expects to pass through higher costs and does not anticipate margin deterioration in the current market environment [53] Question: What needs to occur for the housing market to improve? - Management indicated that while they do not solely rely on housing, infrastructure investments are expected to drive demand for their products [55] Question: What is the outlook for cash balance at year-end? - Management stated that they are not dissatisfied with the current cash position and will assess the year-end outlook as they approach the end of the fiscal year [56] Question: Can you quantify the domestic wire rod supply shortage? - Management estimated that they will have imported 25% to 30% of their steel requirements, approximating the domestic shortfall [57]