Financial Data and Key Metrics Changes - Adjusted earnings per share was $0.30, an increase of 11% year-over-year [8] - Adjusted EBITDA was $13.6 million for an adjusted EBITDA margin of 14.6%, reflecting a slight increase from last year [8] - Year-to-date sales increased 5.3% to $280.5 million, driven by strength in Defense and Aerospace [9] - Cash generated from operations was $11.8 million, reducing net debt to $37.3 million, resulting in a leverage of 0.7x [8] Business Line Data and Key Metrics Changes - Electron sales were $50 million, up 2.5% year-over-year, with adjusted EBITDA of $9.9 million at a 19.8% margin, up 160 basis points from last year [10] - Gas cylinders performance was stable with sales of $42.9 million, driven by steady demand in SCBA [12] - Adjusted EBITDA for gas cylinders was $3.7 million, with margins holding near 9% [12] Market Data and Key Metrics Changes - Continued strength in Defense and Aerospace markets, partially offset by softer demand in certain gas cylinder end markets [8] - Market pressure in clean energy persisted, but strength in first response and Aerospace helped sustain a healthy mix [5] Company Strategy and Development Direction - The company is shifting its mix toward higher value markets, particularly in Defense and Aerospace, to enhance profitability [4] - Plans to establish a powders center of excellence in Saxenburg, Pennsylvania, to improve throughput and service for Defense and specialty industrial customers [7] - Focus on operational optimization through centers of excellence to deliver tangible cost savings and improve capital efficiency [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook, raising full-year guidance for adjusted EPS to a range of $1.40-$1.80 [13] - The company continues to see some softness in automotive and alternative fuels, which is reflected in guidance ranges [13] - Direct impact from tariffs remains modest, with ongoing monitoring of supply chains [14] Other Important Information - The sale of the graphic arts business was completed at the beginning of the quarter, allowing for a more concentrated allocation of resources toward higher margin opportunities [5] - The Pomona to Riverside composite cylinder relocation is on track, expected to deliver up to $4 million of annualized savings [6] Q&A Session Summary Question: Strength in Electron despite challenging comp - Management noted strong demand in Aerospace and Defense, increased orders, and a favorable mix of higher value products contributed to the strong results [21] Question: Pricing and costs impact on margins - Management indicated that the margin improvement was mainly due to a favorable mix in Aerospace and Defense products, with pricing improvements primarily in the cylinders part of the business [22] Question: Opportunities in the commercial space market - Management highlighted the ability to repurpose large cylinder capacity to the space exploration market, which has shown strong order visibility for Q4 [23] Question: Details on powders center of excellence and timing for cost savings - Management explained the investment in the Saxenburg site to improve production and efficiency, with completion expected over the next year [25] Question: Growth outlook for 2026 - Management stated it is too early to provide guidance for 2026 but indicated potential areas for growth [27]