Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported solid absolute returns in the quarter but lagged the benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025. In its third-quarter 2025 investor ...

Roof Hugger Worthington Enterprises has signed a definitive agreement to acquire LSI Group, LLC (LSI) of Logansport, Indiana. LSI, which includes market-leading brands BPD, Logan Stampings, LSI Metal Fabrication and Roof Hugger®, is one of the largest U.S. manufacturers of standing seam metal roof clips and retrofit components in the commercial metal roof market. COLUMBUS, Ohio, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading bran ...

Korea Zinc surged more than 26% on Monday after local media reported that the world’s largest zinc smelter is preparing to approve a 10 trillion won ($6.8 billion)investment in America with financial backing from the US government https://t.co/0H8BDWHwOx ...

Group 1 - The commentary discusses stocks reaching new 52-week highs and lows, particularly in relation to the performance of the "Magnificent Seven" companies over the past five years [1][2] - The average cumulative return of the Magnificent Seven was 292.8%, with Nvidia contributing nearly 61% of that return [3] - Excluding the highest and lowest returns among the Magnificent Seven, the average return is 153.2%, indicating a more attainable performance benchmark [3] Group 2 - Mueller Industries (MLI) reached a new 52-week high of $110.52, marking its 35th high in the past year and an all-time high, with a 553.2% increase over the past five years [4] - The company has been positively viewed due to its strong positioning to benefit from construction industry demand and a solid balance sheet, holding $1.07 billion in net cash valued at 5.2 times cash per share [5] - As of Q3 2025, Mueller Industries reported $1.32 billion in net cash with no debt, a 25% increase from December 2024, and a cash per share of $11.89, trading at 9.3 times cash [6]

Financial Performance - Net sales increased by 6.6% year-over-year, while organic net sales decreased by 9.1% to $123.1 million[6] - Adjusted EBITDA decreased year-over-year to $14.1 million, resulting in an adjusted EBITDA margin of 9.8%[6] - Free Cash Flow decreased year-over-year to ($1.1) million[6] - Adjusted Diluted EPS was $0.10[6] Strategic Initiatives and Outlook - The company maintained its 2025 financial guidance[8] - Accu-Fab integration is proceeding as planned, with expected completion by year-end 2025[8] - Increased 2026 Accu-Fab revenue synergies are projected to be $20 to $30 million, as the Data Center & Critical Power pipeline exceeds $100 million[8] End-Market Outlook - Commercial Vehicle market sales are expected to decline by 16%-26% in 2025[13] - Data Center & Critical Power is expected to grow by 12%-14% in 2025[18] - Accu-Fab acquisition is expected to add $32 - $36 million in net sales to the Data Center & Critical Power end market in 2H25[22] Capital Allocation - Net leverage ratio was 3.5x as of September 30, 2025, with a target of 3.0x or lower by the end of 2026[6, 32] - The company is prioritizing $7 – $10 million of investment in equipment and automation to meet high-growth Data Center & Critical Power demand over the next 18 months[28]

Core Insights - Monroe Capital LLC has led the debt financing and made an equity co-investment to support Westbourne Capital Partners LLC in acquiring Harvey Vogel Manufacturing Co., a metal fabrication company [1][3]. Company Overview - Harvey Vogel is recognized as a leading high-precision stamper and fabricator of metal components, focusing on hard-to-produce, tight tolerance, and appearance-focused parts. The company serves aerospace, defense, medical, and industrial markets and holds AS9100, ISO 9001, and ITAR certifications [2]. Investment Strategy - Westbourne Capital Partners expressed enthusiasm about partnering with Monroe Capital, highlighting the flexible capital structure that positions Harvey Vogel for growth. The partnership aims to professionalize and scale the company into a market leader while maintaining its local reputation for service and reliability [3]. - Monroe Capital's Independent Sponsor group specializes in providing flexible capital solutions, including both debt and equity co-investments for various corporate activities such as acquisitions and growth initiatives [3]. Monroe Capital Profile - Monroe Capital LLC is a premier asset management firm focusing on private credit markets, offering a range of strategies including direct lending and alternative credit solutions. The firm has been active since 2004, providing capital solutions across the U.S. and Canada [4].

Financial Performance - Sales reached $417.3 million, a 2.0% increase compared to the previous fiscal year[3] - Adjusted EBITDA was $88.7 million, representing a substantial 150.0% increase[3] - Adjusted Diluted EPS stood at $1.55, up by 3.4%[3] Segment Results - Metal Coatings sales amounted to $190 million, reflecting a 10.8% increase[1, 5] with Adjusted EBITDA Margin of 30.8%[5] - Precoat Metals sales were $227.3 million, a decrease of 4.3%[1, 6] with Adjusted EBITDA Margin of 20.2%[6] Balance Sheet and Cash Flow - Cash provided by operating activities in Q2 was $58.4 million, a 23% increase[1] - Debt reduction of $5 million was achieved, resulting in a net leverage ratio of 1.7X[1] FY2026 Guidance - The company maintains its FY2026 sales guidance of $1.625-$1.725 billion[1] - Adjusted EBITDA is projected to be in the range of $360-$400 million[1] - Adjusted Diluted EPS is expected to be $5.75-$6.25[1] Shareholder Returns - Total value returned to shareholders year-to-date in FY2026 through dividend payments was $11.1 million[7]

Financial Performance - Net sales decreased by 191% year-over-year in 2Q25, reaching $1323 million compared to $1636 million in 2Q24 [6, 10] - Adjusted EBITDA decreased year-over-year to $137 million in 2Q25, compared to $196 million in 2Q24 [6, 10] - Adjusted EBITDA margin improved sequentially to 103% in 2Q25, an increase of 130 bps [6] - Adjusted Diluted EPS was $010 in 2Q25 [6, 10] - Free Cash Flow was $125 million in 2Q25 [6, 10] Strategic Initiatives and Capital Allocation - The company repurchased $29 million of shares during the quarter [6] - Capital expenditures are prioritized with $7 to $10 million of investment in growth/automation advancements [27] - Net leverage was 14x as of June 30, 2025 [6, 30] Outlook - Revenue for 2025 is expected to be between $528 million and $562 million, a decrease of (9%) – (3%) year-over-year [35] - Adjusted EBITDA for 2025 is projected to be between $49 million and $55 million, a decrease of (24%) – (15%) year-over-year [35] - Free cash flow for 2025 is expected to be between $25 million and $31 million, a decrease of (68%) – (60%) year-over-year [35] End-Market Outlook - Commercial Vehicle end market is expected to decline by (9%) – (14%) in 2025 [13, 35] - Agriculture end market is projected to decline by (25%) – (29%) in 2025 [13, 35]

Group 1 - Insteel Industries, Inc. (IIIN) shares have increased by 30.9% year-to-date, outperforming the industry and S&P 500, which declined by 8% and 0.4% respectively [1][2] - The stock closed at $35.37, near its 52-week high of $37.61, and is above both its 50-day and 200-day moving averages, indicating strong upward momentum and market confidence [4] - The demand for welded wire reinforcement (WWR) products is a key driver for Insteel Industries, supported by a stable construction market and contributions from acquired assets [6][8] Group 2 - In the second quarter of fiscal 2025, net sales from WWR products rose by 43.3% year-over-year to $100 million, while sales from Prestressed Concrete (PC) strand products increased by 5.2% to $60.6 million [8] - The company anticipates growth in the non-residential construction market, bolstered by federal funding from the Infrastructure Investment and Jobs Act, which is expected to enhance project activity [9] - Insteel Industries has made strategic acquisitions to expand its WWR product portfolio, including the acquisition of EWP and O'Brien Wire Products, strengthening its competitive position [10] Group 3 - The company has implemented shareholder-friendly policies, paying out $20.6 million in dividends and repurchasing $1.7 million in shares in the first half of fiscal 2025 [11] - The Zacks Consensus Estimate projects fiscal 2025 revenues at $640.4 million and fiscal 2026 revenues at $698.7 million, reflecting year-over-year growth of 21% and 9.1% respectively [11] - The earnings estimate for fiscal 2025 is $1.86 per share, indicating a 34.8% increase over the past 60 days and year-over-year growth of 87.9% [13] Group 4 - Despite positive growth indicators, IIIN's valuation is a concern, trading at a forward P/E ratio of 13.59X, higher than the industry average of 10.99X [14] - Positive analyst sentiment and robust growth prospects suggest favorable conditions for potential investors, despite the elevated valuation [18]

Summary of Mayville Engineering Company (MEC) Acquisition Call Company and Industry - **Company**: Mayville Engineering Company (MEC) - **Acquired Company**: AccuFab LLC - **Industry**: Metal fabrication solutions, focusing on high growth end markets such as critical power infrastructure, data centers, and renewable energy Key Points and Arguments 1. **Acquisition Details**: MEC announced the acquisition of AccuFab for a total cash consideration of $140.5 million, with customary adjustments expected to close in Q3 2025 [4][5][13] 2. **Strategic Fit**: AccuFab is a vertically integrated provider, enhancing MEC's geographic footprint and allowing for better service to customers in high growth markets [4][5] 3. **Cultural Alignment**: AccuFab's technology-forward approach and strong innovation track record complement MEC's operations [5] 4. **Financial Impact**: The acquisition is expected to be immediately accretive to adjusted EBITDA, margin, and earnings per share, with projected revenues of $28 million to $32 million and adjusted EBITDA of $6 million to $8 million in the second half of 2025 [14][15] 5. **Operational Synergies**: MEC anticipates generating approximately $1 million in annual cost synergies by 2026 through the implementation of its MBX Lean manufacturing framework [10][11] 6. **Market Diversification**: The acquisition allows MEC to diversify into less cyclical, high-growth markets, moving away from its legacy focus on wheeled mobility platforms [8][9] 7. **Revenue Synergies**: MEC estimates potential revenue synergies of $3 million to $5 million over the next 24 months, with further upside as customer relationships deepen [10] 8. **Capacity Utilization**: AccuFab is currently operating at 50-60% capacity, providing an opportunity for MEC to drive incremental volume and growth [11][61] 9. **Customer Base**: AccuFab's top 10 customers account for approximately 75% of its revenue, with limited overlap with MEC's existing customer base [33] 10. **Debt Management**: MEC plans to prioritize free cash flow generation to reduce net leverage from approximately three times to 1.5-2 times within 18 months post-acquisition [15][39] Additional Important Information - **Integration Timeline**: The initial integration process is expected to take about six months [6] - **Management Retention**: The current management team at AccuFab will remain post-acquisition, facilitating a smoother integration process [50] - **CapEx Requirements**: Expected annual capital investment for AccuFab is projected to be between $2 million and $3 million, aligning with MEC's previous guidance [39] - **Market Growth**: The data center and critical power markets are projected to grow by 20% from 2023 to 2024, making them attractive for MEC's expansion [25] - **Competitive Landscape**: AccuFab operates in a competitive environment with significant players, but its 95% sole-source revenue indicates strong customer reliance [71] This summary encapsulates the key aspects of the acquisition call, highlighting the strategic rationale, financial implications, and operational plans associated with the acquisition of AccuFab by Mayville Engineering Company.