Financial Data and Key Metrics Changes - For 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 the 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 is expected to reduce average costs by an additional $40 per net ton in 2025 [39] Market Data and Key Metrics Changes - The demand for steel in 2024 was the weakest since 2010, with significant declines in automotive and construction sectors [8] - The company noted a significant uptick in demand for automotive products as 2025 begins, indicating a recovery in market share [23] - The first quarter of 2025 is expected to see a price increase of at least $10 per ton compared to Q4 2024 due to increased automotive shipments [101] Company Strategy and Development Direction - The company is focused on leveraging tariffs to strengthen domestic production and reduce reliance on foreign steel imports [11][12] - The acquisition of Stelco is seen as a strategic move to enhance operational efficiency and cost structure [16][18] - The company aims to achieve $120 million in synergies from the Stelco acquisition by the end of 2025, with a strong focus on maximizing value from the combination [18][145] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing improvements in order books and rising steel prices as positive indicators [6][23] - The company is prepared for the implementation of tariffs, which are expected to bolster domestic demand and reduce competition from foreign producers [10][109] - Management emphasized a commitment to debt reduction and maintaining financial flexibility despite current leverage levels [41][132] Other Important Information - The company reported a total reportable incident rate of 0.9% for 2024, highlighting a strong safety record [26] - The company has $3 billion in liquidity and plans to use free cash flow for debt reduction [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 due to its Canadian operations [54][55] Question: Clarification on 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 cost reductions expected to materialize more in the latter half of the year [76][78] Question: Update on capital expenditures and project timelines - Management outlined a clear CapEx plan for 2025, with specific allocations for legacy operations and ongoing projects [88][90] Question: Conditions for potential restart of 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 achieving and potentially exceeding the $120 million synergy target from the Stelco acquisition [145] Question: Working capital expectations for Q1 - Management indicated that working capital build in Q4 was to prepare for improved demand in 2025, with benefits expected in subsequent quarters [114][115] Question: Possibility of equity issuance - Management confirmed there are no plans for equity issuance, focusing instead on debt reduction [128][132]

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]

Financial Data and Key Metrics Changes - Total sales for 2024 were $1.9 billion, with net income at $23 million and adjusted EBITDA of $72.5 million, reflecting the company's ability to deliver profitable results despite a challenging environment [11][12][13] - For Q4 2024, net income totaled $3.9 million compared to $7.4 million in Q4 2023, with adjusted EBITDA at $14.5 million, down from $16.7 million year-over-year but up from $13 million in Q3 2024 [32][33] Business Segment Data and Key Metrics Changes - The carbon segment maintained shipping volumes despite lower OEM demand, achieving $7.2 million in EBITDA for Q4 2024, supported by a 17% growth in galvanized participation [25] - The pipe and tube segment delivered adjusted EBITDA of $7.2 million, focusing on fabricated product growth [26] - The Specialty Metals segment contributed $4 million of EBITDA, with strong market share gains in stainless and aluminum [27] Market Data and Key Metrics Changes - The company successfully navigated a difficult year for the metals industry, maintaining shipping volumes within 1% of 2023 levels, outperforming industry shipment levels [10] - The Purchasing Managers' Index for manufacturing was below 50 for eleven of the twelve months in 2024, indicating a challenging demand environment [10] Company Strategy and Development Direction - The company is focused on diversification and growth through strategic investments in automation and capacity expansion, with significant projects expected to become operational in 2025 or early 2026 [14][29] - The acquisition of Metalworks is part of the company's strategy to enhance its position in manufactured metal products and is expected to be accretive [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the metals industry, emphasizing the importance of remaining nimble and adaptive to market dynamics [21][22] - The company plans to continue investing in automation, product diversity, and quality solutions for customers [22] Other Important Information - The board approved a 7% increase in the quarterly dividend, raising it from $0.15 to $0.16 per share, marking the fourth dividend increase since 2022 [20][37] - The company ended Q4 2024 with total debt of approximately $272 million, an increase due to the Metalworks acquisition [35] Q&A Session Summary Question: What drove the increase in gross profit per ton in the carbon flat segment? - Management attributed the increase to the expansion of end-use metal products and a concerted effort in growing the fabrication business, which contributed positively to margins [44][47][48] Question: What are the expectations for the pipe and tube segment moving into Q1? - Management indicated that the first quarter is expected to be traditional, with opportunities for recovery due to new customers acquired at the end of 2024 [50] Question: How will the tariffs affect profitability and M&A valuations? - Management noted that the tariffs could impact profitability in Q1 and that they anticipate more activity in the M&A market as conditions improve in the back half of 2025 [84][86] Question: What is the outlook for capital expenditures and margins? - Management expects capital expenditures to increase in 2025, with a positive impact on margins anticipated in 2026 as new projects come online [90] Question: What contributed to the decrease in selling and general expenses? - The decrease was primarily due to $1.8 million less in variable incentive expenses tied to profitability, reflecting the lower performance in Q4 2024 compared to the previous year [92]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $124 million on shipments of 3.8 million tons during Q3, impacted by weaker steel demand and pricing [11] - Average selling prices fell by $80 per ton, and shipments decreased by 150,000 tons compared to the prior quarter [12] - Unit costs were reduced by over $40 per ton, exceeding previous guidance [13] Business Line Data and Key Metrics Changes - The automotive segment experienced the lowest build rates since the semiconductor shortage, with only 3.75 million units built in Q3, leading to decreased shipments and margins [11] - The non-automotive business also faced continued weakness in demand and pricing across flat rolled and plate products [12] Market Data and Key Metrics Changes - North American automotive build expectations for the year were revised down to approximately 15.5 million units, about 1 million less than previous estimates [11] - The company temporarily idled one blast furnace, reducing annual capacity by about 1.5 million net tons, due to reduced order activity [12] Company Strategy and Development Direction - The acquisition of Stelco is expected to enhance the overall EBITDA margin and improve the cost structure, allowing the company to better serve non-automotive markets [7][10] - The company plans to prioritize debt repayment over share repurchases following the acquisition of Stelco [15] - Strategic projects at Middletown, Butler, and Weirton are progressing well, with Phase 1 funding approvals received [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a strong 2025, citing factors such as falling interest rates, election certainty, and manufacturing onshoring [20] - The current demand weakness is attributed to high interest rates affecting consumer purchasing decisions [67][70] - Management anticipates a recovery in demand as economic conditions improve and trade protections are potentially strengthened [94] Other Important Information - The company achieved significant cost savings, with quarterly SG&A of $112 million and capital spending of $151 million remaining below historical averages [13] - The company expects to generate $120 million in cost synergies within the first year post-Stelco acquisition [10][103] Q&A Session Summary Question: Q4 volume price and cost expectations - Management anticipates a strong Q1 with volumes returning to normal by the first half of next year, driven by improved customer order activity [25] Question: CapEx guidance for 2025 - The company has reduced CapEx guidance to $600 million for 2025, reflecting lower needs across the footprint and updated estimates for strategic projects [14][36] Question: Cost savings potential heading into Q4 - While significant cost savings were achieved in Q3, similar reductions are not expected in Q4 due to the idling of the Cleveland 6 blast furnace [46] Question: Current contracting cycle and pricing - Pricing for the October contracts is expected to be stable, with some flexibility required to avoid price dumping from foreign competitors [48] Question: Impact of high interest rates on demand - High interest rates are significantly affecting consumer purchasing decisions, leading to reduced demand in both automotive and housing markets [67][70] Question: Synergies from Stelco acquisition - The company is confident in achieving $120 million in synergies within the first year, with potential for higher estimates in future calls [103][106]

As filed with the Securities and Exchange Commission on January 29, 2024 Registration No. 333-275930 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 4 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Legato Merger Corp. III (Exact name of registrant as specified in its charter) Cayman Islands 6770 98-1761148 (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identifi ...

As filed with the Securities and Exchange Commission on January 5, 2024 Registration No. 333-275930 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Legato Merger Corp. III (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Cayman Islands 6770 98-1761148 (State or other jurisdiction of incorporation or organization) (Primary Standard In ...