Financial Data and Key Metrics Changes - Total shipments in Q4 were 3.8 million tons, slightly lower than Q3 due to seasonal impacts, with expectations for Q1 to improve back to 4 million tons [17] - Q4 price realization was $993 per net ton, down by around $40 per net ton, but a substantial improvement in realized prices is expected starting in Q1 2026, with an anticipated increase of approximately $60 per ton [18] - 2025 marked the third consecutive year of unit cost reductions, with a reduction of $40 per ton, and expectations for another $10 per ton decrease in 2026 [19] Business Line Data and Key Metrics Changes - The company has secured more business from automotive clients, which is expected to show throughout 2026 as OEMs reshore production back to the U.S. [4] - The cancellation of the slab contract with ArcelorMittal is projected to yield an EBITDA improvement of around $500 million by replacing lower-margin slabs with higher-margin products [28][29] - The company anticipates continued demand for domestically produced slabs due to melted and poured requirements [5] Market Data and Key Metrics Changes - The Canadian government has moved to restrict imported steel, creating positive momentum for the company's Canadian subsidiary, Stelco [4] - The spot steel price is currently at a two-year high, benefiting the company due to its cost structure and ability to generate its own power [6] - Vehicle production in the U.S. was down for three consecutive years, but a return to pre-COVID levels is expected due to policy-driven reshoring [7] Company Strategy and Development Direction - The company is focused on sustainable performance in an improved market, operating with a leaner footprint and a stronger order book [24] - The partnership with POSCO is a strategic priority, aimed at enhancing industrial cooperation and meeting U.S. trade requirements [14][52] - The company is positioned to benefit from the transition from aluminum to steel in automotive applications, leveraging existing technology and production capabilities [10][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving business environment, with solid order books, rising prices, and declining costs [23] - The company is confident in its ability to absorb increased automotive demand with existing production capacity, avoiding the need for new plant construction [8] - Management highlighted the importance of the recent changes in the Canadian steel market and the positive impact on pricing and shipments [12][63] Other Important Information - The company achieved the lowest total recordable incident rate since becoming a steel producer, with a 43% improvement compared to 2021 [15] - Capital expenditures in 2025 were at a record low of $561 million, with projections for 2026 to be around $700 million [20] - Total liquidity at the end of 2025 was $3.3 billion, with a focus on generating EBITDA and cash flow [22] Q&A Session Summary Question: What benefit is expected from the cancellation of the slab contract? - The cancellation is projected to yield an EBITDA improvement of around $500 million by replacing lower-margin slabs with higher-margin products [28][29] Question: When should the improvement in EBITDA be expected? - The company is already selling the material in Q1, with more impact expected in Q2 and Q3 as cost flows through inventory [32] Question: How much open capacity is available for contracting? - The company has downstream capacity in every location, with significant potential to deploy more specialized steel products [40][41] Question: What is the outlook for Q1 regarding ASP and costs? - Shipments are expected to return to 4 million tons, with ASP projected to increase by $60 per ton in Q1, while costs may rise temporarily before normalizing [44][46] Question: How has Stelco performed and what is the outlook? - Stelco was disappointing in 2025 but is expected to contribute significantly in 2026 as market dynamics improve [60][62] Question: What is the status of asset sales? - The company is under contract to sell several idled properties, with total proceeds expected to reach $425 million, while larger asset sales are on hold pending POSCO negotiations [70][72]

Financial Data and Key Metrics Changes - Total shipments in Q4 2025 were 3.8 million tons, slightly lower than Q3 due to seasonal impacts, with expectations for Q1 2026 to improve back to 4 million tons [15] - Q4 price realization was $993 per net ton, down by approximately $40 per net ton, but a substantial improvement in realized prices is expected starting in Q1 2026, with an anticipated increase of about $60 per ton [16][30] - Unit costs decreased by $40 per ton in 2025, marking the third consecutive year of reductions, with further expectations of a $10 per ton decrease in 2026 [16][17] Business Line Data and Key Metrics Changes - The company has shifted melting capacity from low-margin slabs to higher-margin flat-rolled products, anticipating continued demand for domestically produced slabs [5] - Multi-year fixed-price contracts with major automotive OEMs have been signed, increasing market share and securing high-margin business for 2026 [7][9] Market Data and Key Metrics Changes - The Canadian government has implemented restrictions on imported steel, positively impacting the Canadian subsidiary Stelco and improving pricing and shipments [4][12] - The U.S. market is benefiting from Section 232 tariffs at 50%, driving demand for domestically produced steel and reducing import competition [4][20] Company Strategy and Development Direction - The company is focused on leveraging existing production capacity without the need for new plants, positioning itself to benefit from the anticipated increase in domestic vehicle production [8][10] - The strategic partnership with POSCO aims to enhance collaboration and meet U.S. trade requirements, with a definitive agreement targeted for the first half of 2026 [13][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving business environment, citing a solid order book, rising prices, and declining costs as key factors for profitability in 2026 [20][21] - The company is committed to maximizing profitability through operational efficiency and strategic partnerships, with a focus on the automotive sector [20][21] Other Important Information - The company achieved its lowest total recordable incident rate in 2025, reflecting significant improvements in safety performance [14] - Capital expenditures in 2025 were a record low at $561 million, with projections for 2026 to be around $700 million, reflecting normalized maintenance capital [18] Q&A Session Summary Question: Expected benefits from the cancellation of the slab contract - Management expects an EBITDA improvement of approximately $500 million from the cancellation of the slab contract, with benefits starting in Q1 but more pronounced in Q2 and Q3 [26][30] Question: CapEx expectations beyond 2026 - CapEx for 2026 is projected at $700 million, with expectations to rise to $900 million in 2027 due to a blast furnace reline, then returning to $700 million in 2028 [34] Question: Open capacity and potential EBITDA sensitivity - The company has significant downstream capacity available, with the need for increased domestic automotive production to fully utilize this capacity [39] Question: Outlook for Q1 and pricing expectations - Shipments are expected to return to 4 million tons in Q1, with ASP anticipated to increase by $60 per ton, driven by improved demand and pricing dynamics [43][44] Question: Impact of Stelco on earnings and market dynamics - Stelco's performance in 2025 was disappointing due to market conditions, but improvements are expected in 2026 as Canadian pricing stabilizes [60][64]

Financial Data and Key Metrics Changes - The company achieved record-breaking results in Q3, with revenues of $147.3 million, a 10% increase year-over-year [21] - Adjusted EBITDA increased by 12% to $35.6 million, with an adjusted EBITDA margin of 24.2% [25] - GAAP earnings per share rose to $0.55, up from $0.54 in the prior year, while adjusted earnings per share increased by 18% to $0.66 [25] Business Line Data and Key Metrics Changes - OpEx revenues were $122 million, a 5% increase compared to last year, representing 83% of total revenues [22] - Large project revenue was $25.4 million, up 37% year-over-year, reflecting improved project execution [22] - The company reported a 14% increase in orders to $158.2 million, with a book-to-bill ratio of 1.1 times [25] Market Data and Key Metrics Changes - The USLAM market saw a 10% year-over-year revenue increase, driven by demand for large capital projects [26] - EMEA revenue increased by 37%, attributed to strong execution and rising demand related to electrification and decarbonization [26] - APAC delivered 9% revenue growth, supported by ongoing project activity [26] Company Strategy and Development Direction - The company is focused on capitalizing on trends such as the growth of data centers, decarbonization, and electrification [7] - Strategic initiatives include expanding into the data center market and medium voltage heaters, which are seen as key growth areas [7][14] - The company is raising its fiscal 2026 guidance for revenue and adjusted EBITDA, reflecting confidence in ongoing momentum [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving macro conditions and capital project momentum, supporting a positive outlook for the remainder of the fiscal year [8] - The company is well-positioned to benefit from macroeconomic drivers such as reshoring and increased power demand [30] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities [28] Other Important Information - The company has a backlog of $180 million in the power sector, up 58% year-over-year, with over 60% of opportunities in the US market [11] - The liquid load bank solutions for data centers are expected to drive significant growth, with quoting activity doubling to $60 million [16] - The medium voltage heater pipeline has expanded to over $150 million, benefiting from global electrification trends [17] Q&A Session Summary Question: Can you talk about the sustainability of the 46%-plus gross margin? - Management noted that improved gross margins are driven by productivity gains, pricing, and a favorable project mix, with expectations for sustained margins [35][36] Question: How have conversations with potential customers in the data center industry evolved? - The company has formed relationships with various stakeholders, including construction contractors and end users, enhancing its market position [39][41] Question: What is the competitive landscape for liquid load banks? - Management confirmed that the market remains robust, with a significant increase in quoting activity, indicating strong future demand [48][49] Question: How do you see the medium voltage opportunity progressing? - The company has a backlog of $11 million and a quote pipeline exceeding $150 million, indicating a multi-year growth opportunity [55][56] Question: Can you discuss the growth drivers in the LNG and midstream markets? - Management highlighted ongoing projects in LNG liquefaction and midstream gas processing, which are expected to drive demand for their products [57][59]

Thermon (NYSE:THR) Q3 2026 Earnings call February 05, 2026 11:00 AM ET Speaker3Greetings and welcome to the Thermon Group Holdings third quarter fiscal 2026 results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to your h ...

Financial Data and Key Metrics Changes - First quarter revenue increased by 44% year-over-year, reaching $809.5 million, with 3.5% organic growth and 40.6% from acquisitions [5][14] - Adjusted EBITDA rose by 63% to $112.2 million, with an adjusted EBITDA margin of 13.9%, the highest first quarter margin in company history [5][15] - Net income was reported at $17.2 million, while adjusted net income was $26.4 million, translating to adjusted earnings per diluted share of $0.47 [15] Business Line Data and Key Metrics Changes - The company has a project backlog of $3.09 billion, indicating strong demand across its markets [5][18] - The commercial sector is experiencing steady project bidding, supported by population migration to the Sun Belt and reshoring trends [6][8] - The public sector is expected to see a 10%-15% increase in contract awards for FY 2026 compared to FY 2025, particularly in small and medium-sized maintenance projects [8][9] Market Data and Key Metrics Changes - The company is actively participating in approximately 1,000 commercial sector projects across eight states [7] - The federal and state governments are continuing to invest in infrastructure, which is expected to drive demand for the company's services [8][9] Company Strategy and Development Direction - The company aims to double its revenue to over $6 billion by 2030, targeting an EBITDA margin growth to approximately 17% [12][13] - Recent acquisitions, including GMJ Paving Company, are part of a strategy to strengthen market position and expand geographic footprint [10][11] - The company is focused on both organic growth and strategic acquisitions to enhance shareholder value [12][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for infrastructure projects and the positive impact of recent acquisitions on future growth [9][10] - The company anticipates a robust pipeline of acquisition opportunities and plans to continue using cash flow from operations to fund these acquisitions [81][82] - Management remains optimistic about the reauthorization of the Surface Transportation Program, expecting increased funding for infrastructure projects [82][83] Other Important Information - Cash flow from operations was $82.6 million in Q1, up from $40.7 million in the same quarter last year [16] - The company expects to convert 75%-85% of EBITDA to cash flow from operations in FY 2026 [17] Q&A Session Summary Question: Can you provide more details on the acquisition pipeline? - Management indicated a robust pipeline with a mix of platform deals and tuck-ins, emphasizing strategic and cultural fit in acquisitions [24][25] Question: What is the size and scope of the data center project mentioned? - Management clarified that data centers are part of their commercial projects, with ongoing demand in southern and southeastern markets [28][29] Question: How do you expect to achieve the organic growth target of 7%-8% for the year? - Management explained that delays in project starts and competitive dynamics affected Q1 organic growth but reaffirmed the full-year target [34][35] Question: What is the outlook for public sector bidding? - Management expects public sector contract awards to increase by 10%-15% this year, with steady demand in the commercial market as well [50][54] Question: How confident are you in reducing leverage to 2.5 times by year-end? - Management expressed confidence in achieving the leverage target through strong cash flow generation and strategic acquisitions [78][81]

Construction Partners (NasdaqGS:ROAD) Q1 2026 Earnings call February 05, 2026 10:00 AM ET Speaker8Welcome to the Construction Partners first quarter earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Rick Black, Investor Relations. ...

As of the end of the quarter, our three non-earning asset debt investments were unchanged with a cost basis of $28.8 million or $13.2 million at fair value or 1.6%. In addition, PIK income for the quarter rose to $2.3 million or 9.6% of interest income. However, we also collected $2.8 million of PIK for the period, so our accrued PIK balance declined accordingly. Since the end of the quarter, we have experienced one significant prepayment of Vets Choice in the amount of $42.8 million, which also generated a ...

Gladstone Capital (NasdaqGS:GLAD) Q1 2026 Earnings call February 05, 2026 08:30 AM ET Speaker6Greetings. Welcome to Gladstone Capital Corporation First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to Mr. Davi ...

In Europe, Letts said conditions remain more challenging, with slower activity in cyclical and industrial end markets such as construction and some capital-expenditure-sensitive manufacturing segments. However, he said the company is seeing early signs of improvement supported by fiscal spending increases in countries like Germany, stabilizing energy prices, and more accommodative monetary policy in much of the region.Adrian Letts, head of global business operations, described conditions as “relatively stab ...

Core Insights - Exco Technologies reported a higher year-over-year profit with modest revenue growth in its fiscal 2026 first quarter, driven by gains in the Automotive Solutions segment which offset weaker demand in die-cast tooling within the Casting and Extrusion segment [4][7]. Financial Performance - Cash provided by operating activities was CAD 10.2 million, slightly down from CAD 10.4 million in the prior-year quarter. Free cash flow increased to CAD 4.8 million from CAD 3.8 million, while cash used in investing activities declined to CAD 4.5 million from CAD 7.7 million [1]. - Consolidated net income was CAD 4.8 million, or CAD 0.13 per share, compared to CAD 4.2 million, or CAD 0.11 per share, in the prior-year quarter. Quarterly consolidated EBITDA was CAD 17.4 million, representing 12% of sales, versus CAD 16.7 million (also 12%) a year ago [2][7]. Segment Performance - The Automotive Solutions segment saw sales climb 10% to CAD 79.3 million, with pre-tax profit jumping 37% to CAD 6.5 million, driven by new product launches and improved operational efficiency [6][8]. - The Casting and Extrusion segment reported a 2% decline in sales to CAD 70.2 million, primarily due to softer die-cast tooling demand amid OEM delays and trade uncertainty, although extrusion sales remained resilient [5][12]. Strategic Focus - Management emphasized a diversification strategy and operational efficiency, with plans to moderate fiscal 2026 capital expenditures to CAD 28 million, down from CAD 36 million in fiscal 2025 [3][17]. - The company is focusing on pricing discipline to mitigate cost inflation and expects sales to benefit from recent and upcoming product launches [10]. Market Conditions - Global trade policy uncertainty, particularly regarding tariffs, remains a significant macro consideration. The company believes that its products comply with USMCA rules of origin, which should keep them exempt from tariffs in the long term [19]. - Demand for aluminum extrusion related to AI data centers is currently low but is expected to grow significantly, providing a future tailwind for the company [20].