Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $219.3 million, a decrease of 4.7% from Q3 2024. Adjusted EBITDA was $43.6 million, an increase of 1.2% year-over-year, resulting in an adjusted EBITDA margin of 19.9%, up approximately 120 basis points from the prior year [5][11][12]. Business Line Data and Key Metrics Changes - The self-storage segment saw a revenue increase of 3.7%, driven by new construction growth of 5.5%, primarily in the international market, which offset weakness in North America. The R3 sales channel experienced a revenue increase of 0.7% due to door replacement and renovation activities. However, the commercial and other sales channel declined by 20.1%, mainly due to TMC business declines [6][11][12]. - The international segment's revenue increased to $28.3 million, up 32.9% compared to the prior year, driven by new construction growth [11]. Market Data and Key Metrics Changes - The overall market for commercial sheet doors remains soft, but there is growth in rolling steel and the carport and sheds business. The TMC business accounted for approximately 70% of the revenue decline in the quarter due to project timing and weakness in the LTL trucking industry [6][12]. Company Strategy and Development Direction - The company continues to invest in innovation and expand its offerings, including a comprehensive expansion of its metal decking product line and enhancements to the Noke Smart Entry system. The focus remains on capital allocation priorities, including share repurchase and M&A opportunities [9][10][14]. - The self-storage industry is viewed as resilient, with consolidation presenting growth opportunities for the R3 business. The company believes it is well-positioned to deliver long-term shareholder value [10][14]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the end markets served, supported by a stable backlog and pipeline. They noted that the operating environment remains challenging but emphasized the flexibility of the financial profile and solid cash generation [5][10]. - The company updated its 2025 guidance, expecting revenues in the range of $870 million to $880 million and adjusted EBITDA between $164 million and $170 million, reflecting a slight decrease in EBITDA margins due to geographic and product mix [16]. Other Important Information - The company ended the quarter with $256.2 million in total liquidity, including $178.9 million in cash and equivalents. Total outstanding long-term debt was $554 million, with a net leverage ratio of 2.3 times [14][15]. - S&P upgraded the company's credit rating from B plus to BB minus with a stable outlook, reflecting the resilient business model and consistent cash flow generation [15]. Q&A Session Summary Question: Guidance on revenue and EBIT margin changes - Management indicated that the primary reason for the lower EBIT margin was product and segment mix, with international sales being lower margin compared to North America. Tariffs and input costs were not significant factors [19][20]. Question: Backlogs and customer plans for growth - Management noted that the backlog and pipeline appear stable, with no significant changes from the previous quarter [21]. Question: Weakness in TMC business - The decline in TMC was attributed to project timing and softness in end markets, with expectations for recovery in the fourth quarter and into 2026 [25][26]. Question: Impact of TMC on revenue - The estimated impact from TMC was around $11 million for the quarter, with some projects expected to push into Q4 and 2026 [34]. Question: Raw materials and pricing trends - Management stated that steel prices have remained stable, and they have hedged costs for the upcoming year. They do not anticipate significant changes in pricing trends [47][51]. Question: Cost-saving initiatives - The company has realized about 70% of the expected $10-12 million in cost savings, with further opportunities being explored [57]. Question: Noke system adoption - There is optimism regarding the adoption of the Noke system, particularly among institutional clients, with significant reductions in theft reported [61].