Financial Data and Key Metrics Changes - Subscription revenue for Q1 FY 2026 was $132.9 million, exceeding the guidance range of $129 million to $132 million, with a year-over-year growth of 1.1% on a constant currency basis [14] - Total revenue for Q1 was $152.6 million, reflecting a 1% increase compared to the prior year [15] - Non-GAAP gross profit was $102.4 million, a slight decrease of 0.2% year-over-year, with a non-GAAP gross margin of 67.1% [15] - Adjusted EBITDA for Q1 was $52.2 million, representing a margin of 34.2%, compared to $50.7 million and a margin of 33.6% in the prior year [16] - Net loss for Q1 was $15.5 million, significantly improved from a net loss of $42.8 million in the same period last year [16] - Adjusted operating cash flow was $48 million, with cash at the end of Q1 totaling $230.2 million, an increase of $33 million from the previous quarter [17] Business Line Data and Key Metrics Changes - Professional services and other revenue for Q1 was $19.7 million, showing a year-over-year decline of 0.1%, indicating stabilization in that business [14] Company Strategy and Development Direction - The company is focused on returning to organic growth and enhancing client retention through improved management and long-term partnerships [6] - E2Open is set to combine with WiseTech Global, which will expand its capabilities in supply chain logistics and enhance its market position [8][10] - The strategic partnership aims to leverage both companies' strengths in software innovation and client service [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and innovate despite a volatile business environment [7] - The acquisition by WiseTech is expected to create new opportunities and enhance the value offered to clients [8][19] - The company anticipates closing the acquisition by the end of the calendar year, with ongoing operations as independent entities until then [12] Other Important Information - The company will not provide quarterly guidance moving forward but will maintain full-year guidance [2] - The focus remains on operational efficiency and cost discipline to support growth [16] Summary of Q&A Session Questions and Answers - There was no live Q&A session conducted due to the pending acquisition, and no individual discussions with analysts or investors were held [2]

Financial Data and Key Metrics Changes - The company reported a 9% increase in organic net revenue for Q2, marking the third consecutive quarter of high single-digit growth [7][33] - Gross margin reached a record 62.6%, expanding 140 basis points year-over-year, driven by lower product costs and a favorable channel mix [36][38] - Adjusted diluted EPS increased by 37% year-over-year to $0.22 [38] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales grew by 10%, with 13 consecutive quarters of positive comparable sales growth [7][22] - The wholesale business also saw growth, up 7%, with notable performance in Europe [7][33] - Women's business grew by 13%, while men's business increased by 6% [33] Market Data and Key Metrics Changes - The Americas net revenues were up 9%, with operating margins increasing to 20.5% [39] - Europe experienced a 15% increase in net revenues, with a 17.2% operating margin [40] - Asia's net revenues were flat due to strategic actions taken to improve structural economics, but DTC grew double digits in several markets [41] Company Strategy and Development Direction - The company is transitioning to a DTC-first model, with over half of its business now coming from owned and operated channels [9][11] - A focus on becoming a full head-to-toe apparel lifestyle brand is evident, with significant growth in lifestyle categories [9][10] - The company is narrowing its focus by divesting from non-core brands like Dockers, allowing for a more concentrated effort on the Levi's brand [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging global operating environment, citing strong brand equity and consumer connection [11][30] - The company raised its full-year guidance for organic net revenue growth to 4.5% to 5.5% [45] - Despite uncertainties around tariffs, the company believes it is well-positioned to manage potential impacts [44][50] Other Important Information - The company opened 16 net new stores in Q2, expanding its global store network [24] - The loyalty program has nearly 40 million members, contributing to increased consumer engagement and higher average unit retail (AUR) [25] - The company expects to return at least $100 million from the net proceeds of the Dockers sale to shareholders through share repurchases [42] Q&A Session Summary Question: Drivers of demand strength and market share gains - Management noted broad-based growth across all business segments and maintained a top market share position globally and in the U.S. [53][56] Question: Clarification on organic wholesale revenues - Management indicated a prudent approach to wholesale, expecting it to remain flat to slightly positive for the year, with growth driven by digital channels and premium customers [66][70] Question: Marketing initiatives and price increases - The company is investing in brand marketing and has exciting campaigns planned for the fall, with room for further AUR growth across categories [75][80] Question: Margin profile of DTC business - DTC margins have improved significantly, with a focus on revenue per square foot and cost management contributing to this positive trend [95][99] Question: Tariff assumptions and pricing strategy - The company has factored in additional tariffs into its guidance and is implementing strategies to mitigate their impact [103][44]

Financial Data and Key Metrics Changes - The company reported third quarter net sales of $156.9 million, a 1% increase compared to the same period last year, marking a record sales quarter [7][8] - Adjusting for foreign currency translation, net sales would have been $158.6 million, reflecting a 2% increase year over year [8] - Gross margin improved to 56.2%, up from 53.1% last year, driven by higher average selling prices and lower specialty chemical costs [30][31] - Adjusted EBITDA margin was 20%, compared to 19% in the same period last year, with adjusted EBITDA of $30.7 million, up 3% from the prior quarter [36][37] - Operating income improved to $27.4 million, an increase of 1% over the prior period, and diluted earnings per share were $1.54, reflecting a 5% increase [38] Business Line Data and Key Metrics Changes - Maintenance products net sales reached $150.4 million, a 2% year-over-year increase, with year-to-date sales of $435.2 million representing a 6% increase [8][9] - Sales of WD-40 Multi Use Product increased 6% year to date, while WD-40 Specialist products were up 11% year to date [47] - Sales in The Americas increased 4% to $78.2 million, with maintenance products sales up 4% to $75 million [10][11] - EMEA sales declined 5% to $56.7 million, with maintenance products down 3% to $55.6 million [12][13] - Asia Pacific sales increased 7% to $22 million, with maintenance products up 9% to $19.8 million [16][17] Market Data and Key Metrics Changes - The Americas accounted for 50% of global business, while EMEA made up 36% and Asia Pacific contributed 14% [12][17] - Sales in Latin America showed strong growth of 19%, while Turkey experienced a significant decline of nearly 40% [19][70] - Sales in France increased by 9%, 14% in DACH, 13% in Iberia, and 7% in the UK, indicating strong market trends in these regions [14][15] Company Strategy and Development Direction - The company is focused on driving revenue growth in maintenance products and enhancing overall profitability through geographic expansion and premiumization [18][20] - The strategic enablers emphasize operational excellence and a people-first mindset, with a commitment to social responsibility and community support [24][26] - The company is targeting a compound annual growth rate for premiumized products of greater than 10% and for WD-40 Specialist products of greater than 15% [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in concluding the fiscal year with solid growth, despite challenges in certain markets [9][47] - The company narrowed its net sales guidance for fiscal year 2025 to between 6% and 9%, reflecting a clearer view of business performance [42][68] - Management acknowledged potential risks including inflationary pressures and foreign currency fluctuations but remains optimistic about achieving long-term targets [45][72] Other Important Information - The company plans to continue returning capital to stockholders through dividends and share repurchases, with a quarterly cash dividend of $0.94 per share approved [40] - The divestiture of the Home Care and Cleaning business is ongoing, with active discussions with potential buyers [41] Q&A Session Summary Question: Why is the Q4 guidance wide? - Management noted that promotional activity and timing of orders can impact revenue, leading to a wider guidance range [52][54] Question: Will gross margin growth slow next year? - Management indicated that while they are pleased with current margins, they have supply chain initiatives that could offset potential inflationary pressures [55][56] Question: How should G&A costs be viewed moving forward? - Management stated that they are focused on controlling costs and do not expect double-digit increases in G&A expenses [58][60] Question: What is the impact of foreign exchange on Q4? - Management expects a small benefit from foreign exchange in Q4, with some currencies remaining a headwind [61][62] Question: Are tariffs affecting customer order trends? - Management clarified that while there is some exposure to tariffs, substantial supply chain initiatives are mitigating their impact [63][64] Question: What changed in the top line guidance? - Management explained that the guidance reflects a clearer picture of business performance and adjustments for currency fluctuations [67][72]

Financial Data and Key Metrics Changes - Subscription revenue for Q1 FY 2026 was $132.9 million, exceeding the guidance range of $129 million to $132 million, with a year-over-year growth of 1.1% on a constant currency basis [15] - Total revenue for Q1 FY 2026 was $152.6 million, reflecting a 1% increase compared to the prior year [16] - Non-GAAP gross profit was $102.4 million, a slight decrease of 0.2% year-over-year, with a non-GAAP gross margin of 67.1% compared to 67.8% in the previous year [16] - Adjusted EBITDA for Q1 was $52.2 million, representing a margin of 34.2%, compared to $50.7 million and a margin of 33.6% in the prior year [17] - Net loss for Q1 FY 2026 was $15.5 million, significantly improved from a net loss of $42.8 million in the same period last year [17] - Adjusted operating cash flow was $48 million, with cash at the end of Q1 totaling $230.2 million, an increase of $33 million from the previous quarter [18] Business Line Data and Key Metrics Changes - Professional services and other revenue for Q1 was $19.7 million, showing a year-over-year decline of 0.1%, indicating stabilization in that business area [15] Company Strategy and Development Direction - The company is focused on returning to organic growth and enhancing client retention through improved management and prioritizing long-term partnerships [6][9] - E2Open is set to be acquired by WiseTech Global, which is expected to enhance its capabilities in supply chain logistics and broaden its client base [9][10] - The combination with WiseTech aims to create a comprehensive suite of supply chain solutions, extending from sourcing to fulfillment [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth, emphasizing the importance of customer satisfaction and operational efficiency [6][12] - The acquisition process is on schedule, with expectations for completion by the end of the calendar year [11][12] - The company anticipates continued innovation and value creation for clients post-acquisition [20] Other Important Information - The company will not provide quarterly guidance moving forward due to the pending acquisition [2] - Management highlighted the importance of their skilled workforce and existing client relationships as key assets in the acquisition [10][11] Summary of Q&A Session Questions and Answers - There was no live Q&A session conducted during this earnings call due to the pending acquisition [2]

Financial Data and Key Metrics Changes - The company reported third quarter net sales of $156.9 million, a 1% increase compared to the same period last year, marking a record sales quarter [6][7] - Adjusting for foreign currency translation, net sales would have been $158.6 million, reflecting a 2% increase year over year [7] - Year-to-date net sales of maintenance products reached $435.2 million, representing a 6% increase [8] - Gross margin improved to 56.2% in the third quarter, up from 53.1% last year, driven by higher average selling prices and lower specialty chemical costs [30][31] - Adjusted EBITDA margin was 20% compared to 19% in the same period last year, with adjusted EBITDA of $30.7 million, up 3% from the prior quarter [36][37] - Operating income improved to $27.4 million, an increase of 1% over the prior period, while diluted earnings per share were $1.54, reflecting a 5% increase [38] Business Line Data and Key Metrics Changes - Maintenance products sales increased 2% year over year to $150.4 million in the third quarter, with year-to-date sales aligning with long-term growth targets [7][8] - Sales of WD-40 Multi Use Product in The Americas increased 7%, driven by promotional activity [9] - WD-40 Specialist sales increased 11% year to date, with a target of greater than 15% compound annual growth rate for future sales [20][21] - Home Care and Cleaning product sales remained steady, reflecting a strategic shift towards higher margin maintenance products [10][13] Market Data and Key Metrics Changes - Sales in The Americas increased 4% to $78.2 million, with maintenance products sales up 4% to $75 million [8][9] - EMEA sales declined 5% to $56.7 million, with maintenance products down 3% [10][11] - Asia Pacific sales increased 7% to $22 million, with maintenance products up 9% [14][16] - Sales in Turkey and the Middle East were impacted by operational changes and timing of customer orders, affecting overall performance in EMEA [12][13] Company Strategy and Development Direction - The company is focused on driving revenue growth in maintenance products and enhancing overall profitability through geographic expansion and premiumization [17][20] - The strategic enablers emphasize operational excellence and a people-first mindset, with a commitment to social responsibility and community support [22][25] - The company is actively pursuing a divestiture of its Home Care and Cleaning business, with ongoing discussions with potential buyers [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in concluding the fiscal year with solid growth, despite challenges in certain markets [8][47] - The company anticipates a strong start to the fourth quarter, with robust performance across all trade blocks [47] - Management acknowledged potential risks including cost volatility and foreign currency fluctuations, but remains optimistic about achieving long-term growth targets [32][45] Other Important Information - The company plans to maintain a disciplined capital allocation strategy, targeting annual dividends greater than 50% of earnings [40] - Employee tenure at the company averages eight years, significantly higher than the median tenure at U.S. companies [24] Q&A Session Summary Question: Why is the Q4 guidance wide? - Management noted that promotional activity and timing of orders can impact revenue, leading to a wider guidance range [52][54] Question: Will gross margin growth slow next year? - Management indicated that while they are pleased with current margins, they have initiatives in place to potentially enhance margins further [55][56] Question: How should SG&A costs be viewed moving forward? - Management suggested that SG&A costs may not rise at the same rate as in previous years, focusing on cost management [60] Question: What is the impact of foreign exchange on Q4? - Management expects a small positive impact from foreign exchange in Q4, particularly in Europe [62] Question: Are tariffs affecting customer order trends? - Management stated that while there is some exposure to tariffs, substantial supply chain initiatives are mitigating their impact [63][64]

Financial Data and Key Metrics Changes - The company reported a 9% organic net revenue growth in Q2, marking the third consecutive quarter of high single-digit growth [9][35] - Gross margin reached a record 62.6%, expanding 140 basis points year-over-year, driven by lower product costs and a favorable channel mix [38] - Adjusted diluted EPS increased by 37% to $0.22 compared to the prior year [40] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales grew by 10%, with 13 consecutive quarters of positive comparable sales growth [9][32] - The wholesale business also saw growth, up 7%, marking its third consecutive quarter of growth [32][35] - Women's business grew by 13%, while men's business increased by 6% [35] Market Data and Key Metrics Changes - The Americas net revenues were up 9%, with operating margins increasing to 20.5% [41] - Europe experienced a 15% increase in net revenues, with a 17.2% operating margin [42] - Asia's net revenues were flat, but DTC grew double digits, indicating strong performance in specific markets like Japan and Turkey [44] Company Strategy and Development Direction - The company is transitioning to a DTC-first model, with over half of its business now coming from owned and operated channels [10][12] - Strategic focus has shifted towards the Levi's brand, with the sale of Dockers and exiting the Denizen and footwear businesses [11][30] - The company aims to become a $10 billion company, emphasizing growth in lifestyle categories beyond denim [12][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging global operating environment, citing strong brand equity and consumer connection [12][54] - The company raised its full-year guidance for organic net revenue growth to 4.5% to 5.5% [48] - Management highlighted the importance of brand marketing and collaborations, such as with Nike and Beyoncé, to maintain cultural relevance [14][82] Other Important Information - The company generated free cash flow of $146 million and declared an 8% increase in dividends to $0.14 per share [45] - Inventory levels increased by 15%, primarily to support holiday sales and mitigate tariff impacts [46] Q&A Session Summary Question: Drivers of demand strength and market share gains - Management noted broad-based growth across DTC and wholesale, with strong performance in both men's and women's categories [58][64] Question: Gross margin inflection and structural changes - Management highlighted that higher DTC sales, focus on women's products, and exiting less profitable lines contributed to improved gross margins [65][68] Question: Organic wholesale revenues and growth expectations - Management indicated a prudent approach to wholesale growth, expecting it to remain flat to slightly positive for the year [73][75] Question: Marketing initiatives and AUR growth - Management discussed ongoing marketing efforts, including collaborations and campaigns, which are expected to drive brand strength and AUR growth [82][84] Question: DTC margin profile and SG&A rate - Management confirmed that DTC growth is no longer a drag on EBIT margins, with significant improvements in revenue per square foot and cost management [99][100]

Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million, up from $55.3 million in the prior fiscal year, representing a significant increase [8][10] - Gross profit increased due to higher revenue and improved gross margin, with operating income rising to $11.7 million from $5 million in the previous fiscal year [13][14] - Consolidated net income for the year was $23.7 million or $2.46 per share, compared to $5.6 million or $0.59 per share in the previous fiscal year [14] - The company's balance sheet reflects a strong working capital position of approximately $30 million and a current ratio of about 2.3:1, with no debt [15] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs was approximately $40.9 million, accounting for 59% of total revenue, compared to $23.2 million or 42% in the prior fiscal year [9] - Revenue from non-space U.S. Government and DoD customers decreased to $26.5 million from $29 million, representing 38% of consolidated revenue compared to 52% previously [9] Market Data and Key Metrics Changes - The company is expanding its customer base beyond traditional prime contractors and is actively submitting bids alongside next-generation defense companies [5] - The company anticipates meaningful growth with traditional primes and is well-positioned to benefit from industry trends over the next five to ten years [5] Company Strategy and Development Direction - The company is focusing on several growth opportunities, including quantum sensing and alternative navigation technologies, which are expected to drive future growth [6][10] - The company is committed to maintaining technical excellence through increased R&D spending, which rose to $6.1 million from $3.4 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by new legislation supporting space and defense programs, although they cautioned about variability in contract timing due to changes in administration [4][30] - The company expects to see additional revenue from contract awards flowing in over the coming quarters and years [4] Other Important Information - The company recorded a decrease in valuation allowance of approximately $13.9 million, primarily related to deferred tax assets [14] - Cash decreased by approximately $13.6 million, with dividends accounting for about $9.6 million of this decrease [15] Q&A Session Summary Question: Allocation of resources to growth opportunities - Management is actively pursuing proposals in various growth areas, with quantum sensors appearing particularly promising due to the vulnerability of GPS [21][22] Question: Adequacy of cash for increased R&D spending - Management is confident in their ability to fund increased R&D through internal funds and is exploring external funding options [24][25] Question: Short-term uncertainty and backlog variability - Management clarified that while there may be variability in future contracts, the current backlog of $70 million is solid [33][34] Question: Gross margin outlook - Management aims to maintain gross margins in the low to mid-40% range for the upcoming fiscal year [68] Question: Revenue opportunities from quantum sensing - Quantum sensing is expected to contribute less than 1% of overall revenue in the next fiscal year, with product revenue anticipated in about five years [70] Question: SG&A and R&D targets for 2026 - SG&A is expected to remain around 18% of revenue, while R&D is projected to be in the 6% to 9% range [79]

Financial Data and Key Metrics Changes - For the fiscal year ended April 30, 2025, consolidated revenue was $69.8 million, up from $55.3 million in the prior fiscal year, representing a significant increase [8] - Gross profit increased due to higher revenue and improved gross margin, with operating income rising to $11.7 million from $5 million in the previous year [13][14] - Consolidated net income for the year was $23.7 million or $2.46 per share, compared to $5.6 million or $0.59 per share in the previous fiscal year [14] - The company's fully funded backlog at April 2025 was approximately $70 million, down from $78 million in the previous fiscal year [14] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. Government satellite programs was approximately $40.9 million, accounting for 59% of total revenue, compared to $23.2 million or 42% in the prior fiscal year [8] - Revenue from non-space U.S. Government and DoD customers decreased to $26.5 million from $29 million, representing 38% of consolidated revenue compared to 52% in the prior year [9] Market Data and Key Metrics Changes - The company is expanding its customer base beyond traditional prime contractors and is actively submitting bids alongside next-generation defense companies [5] - The company anticipates meaningful growth with traditional prime contractors and is well-positioned to benefit from industry trends over the next five to ten years [5] Company Strategy and Development Direction - The company is focusing on several growth opportunities, including quantum sensing and alternative navigation technologies, which are expected to drive future growth [6][24] - The company is committed to maintaining technical excellence through increased R&D spending, which rose to $6.1 million from $3.4 million [12] - The company aims to maintain a gross margin of 40% or more in the upcoming fiscal year [72] Management's Comments on Operating Environment and Future Outlook - Management noted that while the recent quarter was strong, future quarters may not replicate this performance due to the lumpiness of contract awards [4] - There is variability in the timing of contracts due to changes in administration priorities, but the overall spending outlook remains positive [30][31] - Management expressed confidence in the company's ability to fund increased R&D spending through internal funds and external funding opportunities [25][26] Other Important Information - The company is debt-free and maintains a strong working capital position of approximately $30 million [15] - Cash decreased by approximately $13.6 million since the prior fiscal year end, primarily due to dividend payments and timing of billing [15][16] Q&A Session Summary Question: Allocation of resources to growth opportunities - Management is actively pursuing proposals in various growth areas and is in discussions with prime customers about capabilities [22][24] Question: Potential for growth in specific areas - Quantum sensor technology appears promising, with significant market potential, while Golden Dome also shows potential but with uncertain funding [24] Question: Adequacy of cash for increased R&D spending - Management is confident in having adequate cash to fund increased R&D, with a cautious approach to resource allocation [25] Question: Short-term uncertainty and backlog variability - Management clarified that the $70 million backlog is solid, with variability mainly concerning future contracts [34][35] Question: Revenue opportunities from quantum sensing - Quantum sensing is expected to contribute less than 1% of overall revenue in the next fiscal year, with product revenue anticipated five years out [73] Question: SG&A and R&D targets for future years - SG&A is expected to remain around 18% of revenue, while R&D is projected to be in the 6% to 9% range [83] Question: SDA bids and investment expenses - The SDA process is currently being rethought by the new administration, with potential developments expected within the next 9 to 12 months [86][87]

Financial Data and Key Metrics Changes - The reorganization proposal to approve the reorganization plan and agreement did not receive sufficient votes for approval, with about 66% of stockholders voting and 99% of those in favor of the reorganization [3] Company Strategy and Development Direction and Industry Competition - The company is seeking to solicit more proxies and votes to achieve the necessary majority for the reorganization proposal, indicating a strategic focus on restructuring and governance [3] Other Important Information - The annual meeting was adjourned to reconvene on July 24, 2025, at 10 AM Pacific time to continue discussions regarding the reorganization proposal [4] Q&A Session All Questions and Answers Question: Status of the reorganization proposal - The reorganization proposal has overwhelming support from those who voted, but it still requires approval from a majority of outstanding shares [3]

Financial Data and Key Metrics Changes - The company reported record high sales of $422 million for Q1 2026, a 2.1% increase from $413.2 million in the same quarter last year [12][13] - Adjusted EBITDA for the quarter was $106.4 million, representing a margin of 25.2%, up from $94.1 million or 22.8% in the prior year [17][18] - Net income for Q1 was $170.9 million compared to $39.6 million in the prior year, with adjusted net income of $53.8 million or adjusted diluted EPS of $1.78, up from $44 million or $1.46 [17][19] Business Line Data and Key Metrics Changes - The Metal Coatings segment saw a 6% increase in sales due to higher steel volume processed, while Precoat Metals experienced a slight decline of 0.8% in sales due to inventory challenges [12][13][14] - Adjusted EBITDA margins for Metal Coatings were 32.9%, while Precoat Metals had margins of 20.7% [6][12] - The company incurred a $3.8 million restructuring charge related to the closure of a powder coating facility and divestiture of a plating facility [14] Market Data and Key Metrics Changes - Demand from infrastructure-related projects benefited the company across multiple end markets, particularly in construction and electrical sectors [20] - The aluminum transition in food and beverage packaging remains a key growth driver, with the new Greenfield plant ramping production [20] - Prepainted imports fell 38% year-over-year in May, indicating a positive impact from tariffs on domestic sourcing [38] Company Strategy and Development Direction - The company is focused on disciplined execution of its strategic plan, including market share expansion and converting customers from post-paint to prepay [23] - Recent acquisitions, such as Canton Galvanizing, are aimed at scaling the galvanizing business and enhancing customer relationships [9][10] - The company plans to pursue regular and opportunistic share repurchases and has increased its quarterly cash dividend by 17.6% [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and growth trajectory, despite ongoing tariff uncertainties [56] - The company anticipates continued demand growth driven by infrastructure spending and reshoring initiatives [20][21] - Future sales and EBITDA guidance remains unchanged, with adjusted diluted EPS expected to increase by 10-20% over the previous fiscal year [24][23] Other Important Information - The company generated cash flow from operations of $314.8 million, including $273.2 million from the Avail divestiture [18] - The net leverage ratio improved to 1.7 times, down from 2.8 times in the prior year [19] - The company is committed to maintaining a disciplined capital allocation strategy focused on debt reduction and strategic acquisitions [19] Q&A Session Summary Question: Did Q1 benefit from normalization in volumes? - Yes, about half of the recovery was from Q4 and the other half was organic growth [27] Question: What drove improved zinc utilization for Metal Coatings? - The team has been focusing on digital tools, training, and operational excellence, nearing theoretical zinc efficiency levels [28][29] Question: How are customer inventory levels impacting Precoat? - Customers are pulling down inventory, indicating true demand, despite overall market declines [36] Question: What is the outlook for Precoat given tariff impacts? - Precoat has been affected by tariffs, but margins are up, demonstrating adaptability in cost structure [72] Question: Will share repurchases increase in future quarters? - Yes, the company is committed to share buybacks and has a $100 million facility approved for this purpose [46] Question: What is the outlook for solar projects? - There is an expectation of a pull forward in solar projects due to recent legislative changes [81]