Financial Data and Key Metrics Changes - Net earnings for Q1 2026 rose to $7.6 million or $0.39 per share, compared to $1.1 million or $0.06 per share in the same period last year [4] - Gross profit improved to $18.1 million from $9.5 million a year ago, with gross margin expanding to 11.3% from 7.3% [6] - SG&A expenses increased to $8.8 million, or 5.5% of net sales, compared to $7.9 million, or 6.1% of net sales, in the prior year [6][7] - Effective tax rate decreased to 21% from 26.1% in the prior year [7] Business Line Data and Key Metrics Changes - First quarter shipments increased by 3.8% year over year, reflecting improved demand across commercial and infrastructure markets [4][5] - Average selling prices increased by 18.8% year over year due to pricing actions taken to offset higher steel wire rod costs [5] Market Data and Key Metrics Changes - The Architectural Billings Index (ABI) registered 45.3, indicating a contraction in nonresidential commercial construction activity for 13 consecutive months [10] - The Dodge Momentum Index rose 7% in December, with a year-over-year increase of 50%, indicating strengthening activity in commercial planning [11] Company Strategy and Development Direction - The company is optimistic about 2026, driven by demand from the Infrastructure Investment and Jobs Act (IIJA) and data center construction [3][15] - The company plans to invest approximately $20 million in capital expenditures to support growth and reduce production costs [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainties due to trade policies and economic conditions but remains confident in the demand trends observed [3][12] - The company expects inventory levels to moderate as purchasing activity normalizes and shipment volumes increase [9][19] Other Important Information - The company returned $19.4 million to shareholders through a special cash dividend and continued share buybacks [10] - Cash flow from operations used $700,000 in the quarter, compared to providing $19 million last year, primarily due to increased inventories [8] Q&A Session Summary Question: Can you provide more details on commitments related to data center projects? - Management noted that the data center business is new to the company, but they are seeing repeat opportunities and robust demand [22][23] Question: How have wire rod constraints affected volumes? - Management explained that inventory growth was due to insufficient domestic wire rod supply, leading to offshore purchases [24][25] Question: Are you realizing SG&A leverage from recent acquisitions? - Management confirmed that they have realized expected synergies from acquisitions, contributing to improved performance [28] Question: What has allowed the company to grow despite industry headwinds? - Management attributed growth to internal factors such as work in the cast-in-place market and successful acquisitions [34][35] Question: What is the outlook for the residential market? - Management indicated that any meaningful impact from the residential market is unlikely for 2026 [40][41] Question: How are labor costs being managed? - Management acknowledged upward pressure on labor costs and inflationary impacts on operations [42][43]