Core Points - Reeflex Solutions Inc. has entered into an exclusive distribution agreement with Roch IB Corp. for the marketing and sale of its products in South America [1][2] - The agreement grants Roch IB the exclusive rights to market and sell downhole tools, coiled tubing injectors, associated equipment, and mobile coiled tubing units [2] - The initial term of the agreement is 12 months, with automatic renewals for successive 24-month periods unless terminated by either party [2][3] - There are no minimum purchase obligations in the agreement, and products will be supplied under CSI's standard terms of sale [3] - The agreement allows for termination by either party under specific conditions, including breach or insolvency [4] Company Information - Reeflex Solutions Inc. is a public company providing advanced engineering and manufacturing solutions across various industry sectors, particularly in the oil and gas sector through its subsidiary Coil Solutions Inc. [6] - Coil Solutions Inc. specializes in coil tubing injectors and downhole tools, while the manufacturing division, Ranglar Manufacturing, focuses on custom-designed mobile equipment for industrial applications [6] - Roch IB Corp. is a privately-held Canadian company with interests in real estate, oil and gas, and sustainable energy, operating in both Canadian and international markets [5]

Group 1: Company Performance - Rewey Asset Management's "RAM Smid Composite" increased by 6.11% in Q2 2025, slightly trailing the benchmark Russell 2500 Value Total Return Index which gained 7.29% [1] - Year-to-date, the composite returned -1.29% compared to the benchmark's 1.03% [1] - Ducommun Incorporated (NYSE:DCO) was highlighted as a top performer, rising 42.39% in Q2 2025 [3] Group 2: Ducommun Incorporated (NYSE:DCO) - Ducommun provides engineering and manufacturing services to aerospace, defense, industrial, and medical industries [2] - The stock had a one-month return of 1.48% and a 52-week gain of 44.34%, closing at $93.03 per share with a market capitalization of $1.388 billion on September 12, 2025 [2] - Strong order flows and production from Boeing and Airbus support the investment thesis for Ducommun, alongside commitments from European NATO countries to increase military spending to 5% of GDP [3] - Ducommun is not among the 30 most popular stocks among hedge funds, with 20 hedge fund portfolios holding the stock at the end of Q2, up from 15 in the previous quarter [4]

Core Viewpoint - Kadant Inc. is a manufacturer and supplier of engineered equipment and systems, focusing on fluid handling, filtration, doctoring, and material handling, with three reportable segments: Flow Control, Industrial Processing, and Material Handling [1] Company Overview - Kadant Inc. operates in the engineered equipment sector, providing solutions across various applications [1] - The company employs approximately 1,000 individuals [1]

Group 1 - The fiscal year '26 budget for modernization accounts is projected to increase by over 20%, indicating robust funding flows for the defense sector [1] - Curtiss-Wright, a 95-year-old company, has over 50% of its business in defense, making it significantly impacted by the DoD budget changes [2] - The company specializes in engineering and manufacturing highly engineered systems that are critical and often safety-related [3]

Group 1 - Zacks Premium offers various tools to help investors make informed decisions, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are designed to complement the Zacks Rank, rating stocks based on value, growth, and momentum characteristics, which can help investors identify stocks likely to outperform the market in the short term [2][3] Group 2 - Stocks are rated from A to F based on their value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook, looking at projected earnings and sales growth [4] - The Momentum Score identifies stocks with favorable price trends, utilizing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth potential, and positive momentum [6] - The Zacks Rank model uses earnings estimate revisions to identify stocks, with 1 (Strong Buy) stocks historically achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][9] Group 4 - ITT Inc. is highlighted as a 2 (Buy) stock on the Zacks Rank with a VGM Score of B, indicating strong potential for growth investors [11] - ITT is forecasted to have a year-over-year earnings growth of 10.6% for the current fiscal year, with upward revisions in earnings estimates from analysts [12] - The Zacks Consensus Estimate for ITT's earnings has increased by $0.11 to $6.48 per share, with an average earnings surprise of +1.5% [12]

Company Overview - Reeflex Solutions Inc. is a public company that provides advanced engineering and manufacturing solutions across various industry sectors, particularly in the oil and gas sector through its subsidiary Coil Solutions Inc. [5] - The manufacturing division, Ranglar Manufacturing, specializes in custom-designed mobile equipment for a wide range of industrial applications [5] Market-Making Agreement - Reeflex has entered into an agreement with Ventum Financial Corp. to provide market-making services, subject to TSX Venture Exchange approval [1] - Ventum will receive a compensation of CAD$5,000 per month, payable in advance, for an initial term of three months, with automatic renewal for additional one-month terms unless terminated [2] - The agreement can be terminated by either party with 30 days' notice, and there are no performance factors or share options involved in the compensation [3] Ventum Financial Corp. - Ventum is a privately owned corporation based in Toronto, Ontario, with operational functions in Vancouver, British Columbia, and is recognized as a leading independent investment advisory and capital markets firm in Canada [4] - Ventum is a dealer-member of the Canadian Investment Regulatory Organization (CIRO) and has a commitment to integrity and client service [4]

Core Viewpoint - NN plans to host a virtual investor day in August 2025 to discuss updates and important topics related to shareholder value creation [1][2] Group 1: Company Overview - NN is a global diversified industrial company that engineers and manufactures high-precision components and assemblies for various markets [3] - The company is headquartered in Charlotte, North Carolina, with facilities across North America, Asia, Europe, and South America [3] Group 2: Investor Day Details - The investor day will include discussions on NN's five-year targets for sales growth, increased profitability, and shareholder value [5] - Management will provide updates on the company's capital allocation strategy, M&A acquisition strategy, and capital markets strategy [5] - Key market trends and NN's participation in specific markets such as the US electrical grid, US industrial, global passenger vehicle, global commercial vehicle, and global medical markets will be discussed [5] Group 3: Business Initiatives - NN's $700+ million new business program and pipeline specifics will be highlighted during the investor day [5] - The company will discuss its cost-out program and major ongoing and upcoming projects [5] - An overview of NN's free cash flow generation program and associated projects will also be presented [5]

Financial Data and Key Metrics Changes - Total sales for Q4 2024 decreased by 18.4% year-over-year to $121.3 million, driven by customer destocking and weaker end-user demand [34][35] - Manufacturing margin for Q4 was $10.8 million, down from $18.2 million in the prior year, with a manufacturing margin rate of 8.9%, a decrease of 340 basis points [35][36] - Adjusted EBITDA for Q4 was $9.2 million, compared to $17.7 million in the same prior-year period, resulting in an adjusted EBITDA margin of 7.6%, down 430 basis points [38] - Full-year 2024 net sales were $581.6 million, a decrease of 1.2% compared to the prior year, while adjusted EBITDA was $64.4 million, down from $66.1 million in 2023 [39] Business Line Data and Key Metrics Changes - Commercial vehicle revenue decreased by 10.5% year-over-year in Q4, reflecting a similar trend in the broader market [15] - Powersports market revenue decreased by 29.1% year-over-year in Q4, driven by inventory destocking and soft consumer demand [17] - Construction and access revenues decreased by 34.5% year-over-year in Q4, with expectations of continued softness in demand [19] - Agricultural market revenue decreased by 46.5% year-over-year in Q4, with an uncertain outlook due to various economic factors [20] Market Data and Key Metrics Changes - North American Class 8 truck production decreased by 10.4% year-over-year, with forecasts predicting a further decline of 4.8% in 2025 [15][16] - The powersports market is expected to see a low single-digit decline in 2025, with significant uncertainty due to high financing rates [43] - The agricultural market is anticipated to decline by low to mid-twenty percentiles in 2025, reflecting ongoing challenges [43] Company Strategy and Development Direction - The company is focusing on diversifying into less cyclical, higher-value opportunities, particularly in industrial infrastructure investments [8][12] - A systematic approach to share repurchases and debt reduction is being prioritized, with $5.9 million of common stock repurchased in 2024 [10][11] - M&A remains a key part of the long-term strategy, targeting acquisitions in high-growth adjacent markets [29] Management's Comments on Operating Environment and Future Outlook - Management anticipates ongoing softness in demand through the first half of 2025, with a gradual recovery expected in the second half [7][13] - The company remains committed to achieving long-term targets despite current market challenges, with expectations for improved demand conditions in 2026 [31][85] - Management highlighted the importance of operational efficiencies and cost-saving initiatives to navigate the current demand cycle [26][68] Other Important Information - Free cash flow for 2024 was nearly $78 million, with organic free cash flow more than doubling compared to 2023 levels [9] - The company has a healthy financial position, enabling a focus on long-term strategy execution [28][46] Q&A Session Summary Question: Margin guidance for 2025 and MBX initiatives - Management indicated that $1 to $3 million of margin improvement is anticipated from MBX initiatives, with benefits expected to materialize more significantly in the second half of 2025 [49][51] Question: Exposure to potential tariffs - Management noted that only a small percentage of inputs are subject to tariffs, and costs are generally passed through to customers, limiting the impact on margins [54][56] Question: Guidance for Powersports market - Powersports market is expected to decline by low single digits, with a potential 20-25% year-over-year decline anticipated [60] Question: M&A strategy and target values - The company is targeting acquisitions with revenues between $50 million and $150 million, focusing on margin-accretive opportunities in high-growth markets [75][76] Question: Path to achieving EBITDA margin targets - Management acknowledged that achieving the 14% to 16% EBITDA margin targets will take longer due to current market conditions, but remains confident in the long-term potential [84][86]