AZZ (AZZ) 10 Oct 242025 Q2 Earnings call transcript

Good day, and welcome to the AZZ Second Quarter 2025 Earnings Conference Call and Webcast. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Sandy Martin, Three Part Advisors. Please go ahead.

operator. you, Thank thank AZZ's and quarter, joining today us ended Good results you for review financial XX, second the to August morning, XXXX. for fiscal which XXXX

today call questions. Officer; and open remarks, today's Nark, Chief webcast call be Joining and President Marketing, President we Please the David at www.azz.com/investor-events. live Tom After Investor for Crawford, Financial Jason will Relations Senior and Officer. the note found Chief the Executive are can of Officer; for Communications Vice call Ferguson, prepared today's

are Before discussion our the uncertainties, for undue are Commission, time we their by of By provisions Reform therefore, with reliance the which statements involve control. company's containing the Securities documents future begin, be upon that not report should I Litigation risks Form them. comments want to actual statements may time of annual outside filed forward-looking Exchange XXXX. detailed These harbor placed today made nature, and performance, statements in Except remind for everyone forward-looking fiscal the safe of year. our Securities on AZZ of forward-looking from the statements and guarantees some Private will not are results, include to the Act including and under uncertain XX-K

differ Actual materially expectations. could from these results

to turn to Tom call earnings now like from discuss reconciliation today's supplemental for over I today's the a would not financial measures We the call to considered non-GAAP non-GAAP will be substitute refer addition, financial measures release. In financial measures. to GAAP Ferguson. should Non-GAAP press in GAAP to measures.

David questions. second call for results I end will thank will provide industry our the of you year. the on and up our Jason results, will morning, update an cover Good discuss joining will for Sandy. and open for to outlook financial and us. detailed Then you, review sales the markets. Nark Crawford rest we our Today, quarter the Thank

year most, the and We to business innovative EBITDA execution momentum this matters productivity we service with X.X% million pleased improvements, customers quarter. the quarter Top solutions. team's and in and grew on delighting exceptional and sales We of are what continue reported and year's through on compared second line sales and $XXX another emphasis the prior focus to the margins compared prior expanded continued to dollars year. to quarter, by quality

As flow cash increased fiscal due Precoat and a Metal from Metal our of gains. X% primarily X.X% generated the by result, market meaningful the year's million Coatings to by first sales half compared $XXX to operations increased for prior quarter, of we year, sales share

and entirely in sales due both coating Organic the to volume processed almost higher in segments quarter. steel coil on were based tonnage

we sales more construction. certain growth driven As highway, manufacturing. bridge and of including construction-related infrastructure closely distribution to represented detail, like tracks sector from XX% and the and were by renewables. AZZ's markets Dave and will projects, critical markets transmission benefited strength spending cover and in continued This to energy markets public infrastructure construction, related and combined our coating end diversified in The

XXXX. to actions calendar spur lower Fed that interest optimistic capital may into spending are We year rates greater

strong XX%, margin Continuing XX.X%, and range the productivity also cost. of exceeding zinc with strong and the our delivered pay operational and Coatings profitability the down improved strengthen and year through operational and and year's maximizing Metals results, improve our and for better to flow higher XX% efficiencies. revenue summary company's performance due target objectives a EBITDA debt balance margin strategic are volume, significant improved well this objectives cash XX.X% prior of of Metal sheet. was to Precoat volume of our EBITDA has business to margin Executing higher drive to year our This AZZ generated growth mix. due to

to in patient has acquisition pay on organic, in growth projects would to debt. strategy we our leverage but rebuilding high year, inorganic timing, our in while growth. evaluate fiscal plan that segment. the delever drive acquisitions continue market each while our to continue emphasize Jason to evaluating we allocation We growth paused we to slowed knew of months markets. investment discuss target and been these pipeline a and capital bolt-on want to best add We I X remain down will our several seek entirely take moment, first will the after to transactions valuations as return For that quarters

this down quarter cash is sustainable to We loan XX our million lower container debt once coating year continue will aluminum also month this investment We last construction of anticipate points. coil basis capacity facility An growth repriced occur. new the to paid in $XX Missouri. long-term debt of facility by The through aluminum our sector, term to again we in important shareholders expand Washington, where to interest the another dividends. and will pay down capital cost and return our

track to fiscal continue to be schedule in early on and We XXXX. budget and operational year expect

reminder, sites with a customer long-term from to benefit capacity. production X As committed will XX% this capacity a of contract and facility's the new

progress excited new plan. the are of the We about

will that, it to I With turn over Jason.

you, good and Tom, Thank morning.

Coating from Metal segment, quarter, X.X%. Metal Precoat sales an the we increased the of For our and prior second $XXX By increase reported year sales X.X% increased X% million, sales of quarter.

offset better the Precoat helped performance cost increases in mix variable improved to gross labor XX.X% million, cost Gross helped segments, quarter. both other of profit increase of improved the and [indiscernible] margins XX.X% segment. segment, in in was Metal and prior or sales productivity headwinds an Coatings quarter's of The year operational improved zinc sales, points in Metal second volume, basis same the XX offset and $XXX.X from higher

rates XX.X% million or in of compared for million is income $XX.X XX.X% average prior the second more Selling, prior $XX.X slight which decrease last $XX.X from year sales the quarter quarter. This a of administrative our in in a X.X% or versus debt re-pricings, were million to sales interest will of Interest to and year's X.X% expense Operating second various down to paying $XX.X few and sales, consistently quarter. or due expenses million the in general of to million quarter $XX.X compared discuss improved the in lower million improvement the primarily moments. year. was sales second I weighted $XX or debt

and $XX.X positions ownership quarter earnings quarter prior acquisition earnings due related benefited Equity XX% the of higher the Precoat from from increase to of unconsolidated is same million year. the tax of provided $X.X for rate reflecting AVAIL. compared quarter tax XX.X% $X the XX.X% This to of an our to Current increased from previously JV in to to subsidiaries quarter, Metals. second tax million where expenses income year the we was effective in million compared reversal last

was million compared $XX.X of to an quarter quarter. prior for was compared the $XX.X On Reported million, net from income income year $XX.X an increase adjusted XX% basis, to the net the $XX.X million million year. prior QX second from adjusted

Second quarter primarily and $XX $XX.X of XX earnings of to million year. basis was XX.X% in segments. driven EBITDA adjusted revenue in prior EBITDA point million the This sales by improvement or or sales margin was XX.X% both improved strength adjusted compared in

the cash months flow million, capital generated ahead our funding for After financial $XX.X from $XX.X X of and million, expenditures $XXX.X of flow was million. year's We sheet. balance cash $XXX.X to first year-to-date Turning of free operations position million. last our

XX-acre coil we our expanding facility Missouri, Washington, fiscal it coating coil capacity anticipate aluminum by year mentioned, a operationally Tom constructing we coating As to in in XXXX. are be new early and

million spent year, We $XX.X which this project expect was spend of paid first year. half in fiscal $XX.X to we of our million approximately have the the in greenfield fiscal

investing the paying to potential of allocation business debt, down through growth, in acquisitions. capital and evaluating strategy consists our returning shareholders for cash Our dividends bolt-on

million now exceed which debt $XXX full expect total by ended we for year. $XX second the million and to debt XX, During quarter, the reduced August repayments

leverage trailing Our current to year. quarter compares of last debt which favorably X.Xx, EBITDA X.Xx the of is adjusted second our in XX-month to

On our SOFR our quarter we repriced X.X%. down plus September loan XX, term to after B end,

rates in year. actions benefit a the of time, these to same second our expect half the around we With interest reducing also the earnings have the favorable to Fed

agreement until interest notional of we rate variable and fixes for our current rate debt our interest XXXX. XX, swap XXXX, have maturities Our debt through September portion a no

a second the call quarter. to shareholders turn that, David paid Nark. common dividend we I'll to over in With Finally, the million of $X.X cash

Good everyone. markets. Sales end Jason. momentum of second number a you, across for Thank morning, mixed the quarter was

growth transmission and trailer, the and bridge side, renewables. category, share compared with positive sales year and in prior as Electrical transportation slightly within vehicles, the bus Construction the as gains public as and grew and sector Sales prior remained On somewhat recreational market continued over the infrastructure by such and quarter. up quarter, which highway, year truck projects, as includes driven distribution spending on well same muted

we were consistent to down, were markets quarter investment. industrial and consumer communicated had consumer both and is spending by directions. within opposite beginning public what spending This sector private sales we when comparison, By said private trending we in driven and lower last see with

quarter communicated we our spending. As remain we call, during public optimistic about first sector

growth Additionally, we spur consumer believe sector could action and by in the both rate Fed private the recent spending.

the growth secular benefit plastics I'd in aluminum it back our re-shoring continue of to conversion businesses. as turn that container like see the aluminum to to from migration that, over the in and steel trends continue We to as now to well to manufacturing, pre-painted space With will Tom.

David. you, Thank

that year. we spring quarter, I business And I this aligned to second want brisk the are the typically construction peak you last and months our activity. business our during is communicated summer first As about as quarters, optimistic and with more remind again, prospects

private that sector directions. David we in As are and mentioned, signs trending public opposite see spending

particularly weather business. hurricanes that such as can know events also We impact well macroeconomic changes as our as or

it we if remain comes. choppiness prepared for So

to set for of in our and the We balance half have what of continuing the this year executing first do to we to year. plans look focus the out forward accomplished on

well first weather the of construction be in seasonal the second to half expected, slowdown will XXXX the than holidays. activity due as the As half and as lower normal fiscal

sector geared All we against time. Also, policy sales delivered public total growth this last infrastructure spending difficult recall annual stimulate up quarter from remains while more we up has sales over X.X%. toward to with slowed. are Fed that And And sector sales private spending fourth plan will up quarter last comparisons our XX% year we the year's conservative prior. year's say of guidance. Precoat be loosening we reported good, to monetary double-digit over growth, that fourth the sales in strong as expect in

guidance fiscal guidance billion, $X.XXX year. at of half Today, EBITDA and unchanged interest for the EPS narrowing our $X.XXX first lower billion expectations costs we fiscal are to our this leaving strong sales and reflect raising our year the balance to

to to narrowing and $XXX to $X.XX. $X.XX to EBITDA guidance million are EPS guidance We $XXX adjusted adjusted million increasing

of million rate XX% given Our year, regulatory excludes million full to fiscal guidance $XXX expected expenditures best lower the Capital any remain the unchanged our interest federal and emerge. reflects tax including related may at for approximately for greenfield expected conditions $XX plant. annualized new and that million, the $XXX are to estimates market changes to current year effective

expected Debt $XX now our pay-down previous range to $XXX million million. is million of $XX exceed to versus

solutions, while are internal plan analysis. and evaluate paying weaknesses acquisition our on strengths met to focus pipeline. analysis robust executive of update recently build I a corrosion-protective believe track position to other many to diverse America. opportunities continue our finishing remain down a and SWAT We AZZ's we on in beginning sustain debt evaluating team successful strategic services markets as collaborative Based our We large that and we positioned and North and bolt-on The are our a end threats, and our of and and opportunities coatings years. to providing and well throughout for value-added leading galvanizing, about for metal hot-dip provider excited aesthetic record external

growing customers. by on befit facilities processes, people, in Precoat will We Metal focus profitably to that AZZ's Metal's and investing and technologies continue Coating

plan at for us believe positions culture and to confident in our that I we well for the a and talent customer bench the am first every Our long-term of creates with to win on continue success. of will execution opportunities develop, grow marketplace by will people deep free level we sales focusing targeting value initiatives margin working deliver excellence, of enhancements current all execution initiatives, year our growth, stakeholders. We significant and flow longer-term strategic AZZ for and improvements. and believe the our capital our strategic cash successful maximize disciplined shareholder operational

to I I headquarters, in work dedication they am everything our the for corporate do. want excellence teams again of them segments our both of and proud and delivering and thank in

on tolling unmatched Our our of lower-risk experience a years experience customer legacy with and best-in-class offer an of moat business exceptional based value-added customers a competitive service. XX

open With Our that, longer-term fully questions. up team Board, segment like the leadership plans. our and this execute aligned operator, are near-term would teams call to to growth I year strategic objectives and for

today with Instructions] first Riley from Pipes Securities. [Operator comes The question Lucas B.

And like? bolt-on maybe to appetite you appreciate And is right a paint I what at also of the look looked M&A first timing acquisitions you the that bit the does here the you on broadly, could is set. I opportunity I little speak M&A for competitors wondered and maybe if would attractive make more could anything side on your My question And recall your on focus? some past, landscape. still your customers geographically, where thoughts or here? lines the in -- sense at that maybe

the we've Lucas, in pipeline Yes, gotten active again.

we've got space lot out a And open so within there. galvanizing of the sector,

and Southeast. So basically we're but looking to the call also the -- Northwest it, Rocky region,

some got too. even we So something significant wherever available, we don't And came at probably have look if a and came that, one-off we've we're -- where capacity, open. footprint,

say table. of much multisite I'd lot well. a available, both opportunities of two-off they that a one-off, pretty side, then those. if of on X there's and there's X be there's galvanizing off the very And on nothing lot became there out active the or that's -- So we'd

don't before talk we So again works at the third anything anticipating say would have of end I'm that the in quarter. closing I the we

at I'll that. it So leave

side, they question. would got and process involves go that, specific these Hopefully, nice one. acquisition about Precoat these the we'd We to a the opportunities it. there's the through. we've your conversions a customer, announce customers. a and probably next of balance for But months the always into about a that. We're few galvanizing on it it's on year we we interesting of would this because The the likely thing conversions, those specifics On year. active list on that not opportunities just of it's while as talk announce fact that completed answers through work take

That is very helpful.

business, kind do In state? the post it think M&A out the for you where the terms level ramp, of steady Missouri of would a on

of terms sales overall just growth? In

of terms overall Yes, in capital spending.

Capital spending. Yes.

about we've some includes million that Each and talked think -- growth I about capital. $XX needs million maintenance $XX in segment it. to with

call So X bit for between a that. things it, IT segments, $XX of little and like million the corporate

no works. greenfield We in that have don't -- anything are the other

planning I'm for the year, about do million that capabilities up. the for get of sure on next a about amount to enter -- we'll So get outside just we'll sure -- I'd requests safety that's $XX first, annual those carefully. of few if get all normal a opportunities. way to We say basis we environmental and maintaining We're is acquisitions and And right middle to as stacking our we process it's of that. quite want make and care we productivity, take and

is else, $X million million, the find And million number. $XX good we $XX for something in So be if growth capital. a range it'd

with Franzreb John from comes question Sidoti. Next

a you in you in reconstruction you Mississippi address facility adequately talked I mentioned but the I'd pointed questions. Florida? that just happens. southeast, conference like in South that's of something with one lean you like about to the address what's in in have actually and out. of start Virginia. don't and facilities some that going I'm sorry, when curious have thoughts Can kind of Just timing Can that you also kind One, and Carolina, I past, know -- last X anything as on -- the guess in following the call, years hurricanes. about North construction,

go little and people, And able are out the close affected of property Yes. to and and in We And the we do our to Great facility question. there's Tampa. the evacuate bit damage. areas. prayers in that first, the thoughts have it a just folks were

Foundation, exactly do we formed out which Harvey, folks have our a support we of is this. families Hurricane to like where the that's their and Care's events XXX(c)(X) for -- AZZ So

side, people the on all do have damage. So some safe, that's are they but -- our folks property

go are going the because within the facility Virginia, in that, by and -- going the a I'd facilities South impacted some on number to about those damaged Alabama, is particularly facility Mississippi. within Florida, to also -- hurricanes a fabrication states Helene. other then got of Tennessee, one, but quite And we're is that's We've lot in thing Carolina, support of say to in

going So adjacent those states. the is go to on to fabrication

facilities And so those. around are that then you think about stretched our

the be doors, within bit within ripped capacity -- off. we Tennessee. sector. all produced facilities you by And those then to we've states. stuff stuff on quite like that and don't is galvanizing kind on And have way, roof do to that painted and be the that going side, rev, where got you add a when siding, the stadium the those they Precoat see of That metal side of sheet on sheet metal that's

we So for to whatever go to takes and efforts to ahead have out. those support and businesses recovery and rebuilding the to stand capacity the ready help it commit turnaround

is the reaction just I'd rescue first say and that recovery.

facilities first projects bit few a restarted. is A bit months little So little the lag have in get probably the to within of areas. a as those

I'd ramp-up with X- terms highway seen, work. of to then going we've buildings, to amount X-month magnitude the just to on you you a So the about everywhere And of of while, the rework, usually towers, given that poles. look, do just in that's to lag continue see say it rebuilding bridge, signage, what for due

X time. lag is X the months yes, So to

but because for to also side was reconstruction. one that my be participate find it Precoat in they addressing also Thanks I to it follow-ups, out going the appreciate of that

you're a volatility on The I go-forward I coming we hurting to that's I'm thoughts in months how X some in quarters. tough pricing past basis? about your And Because there? Curious your the of have face prices to been shocking about or guess. know question, I helping environment? that going comps think swings seeing me, should what in kind and guess, about we're curious about the Second thoughts zinc current the

Yes.

zinc so about X-month lag to through know, the LME. from kettles our you our As a with moves X-

year. So we've pricing, go the move what somewhat our often affects the costs The to volatility zinc that down around of this in got continuing premiums it. balance the is

So were think this year, a if $X.XX $X.XX, was you they're $X.XX. I it premiums years, of go $X.XX, -- and then couple $X.XX, back

price LME often goes premiums adjust So as cost around up, zinc zinc goes -- as that. the

first that's a -- our whole reaction. We've services. to package value-added done offer best the of So we

of you in so say costs different easier from just most end cost. we've -- moving up zinc be that spot purchased. versus total the this got we've kind disconnected buy move that cost, when tends the to underlying and having I it price price And got to because zinc already to our will around ways, are volatility, competitors they've are what zinc

seen So it I the not where ago that up it price that it we're tends ago watching -- was, $X, to drive up. forget overall because years of how and popped level we've carefully long but many over galvanizing

And yet of the total it's still small a projects. part

the different point drive to it So process. switch they doesn't that to up it a

So the us season concern. and the where -- and commitments that -- not causing zinc get year. say volumes for and annual we're coming where -- commitments any when into next December, also but November, suppliers the thing, now, right this another great the But premiums is -- it's I'll negotiating are

So in some season. there's part during the this always volatility of some ways,

of JV for a could curious, And JV the are of sneak if one color but that? quarter unchanged. JV? Got you What any issue. getting last left you If kind guidance it. I'm that's the your Got I just trends, timing sequentially behind the recent it. from income in. was down out Maybe it question, The

was That a timing Yes. just issue.

know on nicely that QX think we'll this see pop we that based back at I what time. in

we to is million that's the bounce which range back, going $XX to million. $XX So why of held

that maybe in the feel -- that. so the going to comfortable the that's year And very come for to even to of midpoint that, upside I about

question The comes from next Krueger Baird. with Matthew

and focus does seen to the fluctuations, And could you bit then zinc wanted quarter? in remainder have what impact you I for that cost perspective second But impact already you the would from include on what had a the cost great. the in versus budgeted cost. half, the from what little be for during that EBITDA? and first year compare And then its half if specific from a of how on price was price any price impact 'XX? to then quarter fiscal first second And

I here. start. quarter solid But I'll be so guy. prices Jason look add first actually as Yes, compared up. quarter to color were it, maybe to at -- the may first I'll specifics, last or year want some some and color When

about quarter, down competition, year, to I related think were the slightly but mostly last QX but mix. in we second -- that it's less prices was QX versus and

terms paint costs So the zinc interestingly be side, there's price the And in or realized in more pressures. at more capacity slightly. cost bit enough, in seeing was in looking the business when just terms little We're we're been there's of region, Southeast down drove it galvanizing of that of the it mix it on to price more demand. tends where probably a was -- than the normal

rather that's get because later. the that And the hurricanes, affected in the earlier -- capacity of just prices I I occupy than sounds, way to it So going there Southeast. hate but

probably over in back that's flip and basis going of So go-forward us competitors. terms a our on to

different component volatility. and cost so. it, got Just a of we the of sales work we've or talked costs, it's zinc because the about of our We -- XX% around And zinc we to some and some demand excess our some of kettles. on in particular our or in What sitting region market buy yard the for plants. a specific spot for fill inventories

we bought X still ago So the underlying most trending still experiencing -- we're that trending had for that's the down. costs things in months part,

public been case. paint paint that In bear transmission, streams many the industrial bridges, on markets what's a to, the value different distribution the -- final got there's never bring softened, we what is as going never spending, influence the Precoat so prices Precoat alluded infrastructure least David down. then And lot time terms We've the sector markets, it's we've for landed it's to forward, tend at -- utilities. the highways, but so And or go we have been owned that's me side on of of for down trend whether they price. go that's focus the some that cost private of to tell the

now, everything in budgeted. had we've we've to budgets better we're and than factored a got we our right So factored been had little -- what into we've

say slightly second balance know year little to the this bit -- it's half than hurricane to be I've part. year, our outlook the We're prices better the mix. I last excluding is of answered are For that second and but just a that yet holding year, positive. I'd impact in latter don't expecting everything, any lower thing due

margins driving services And to operational provide. productivity Our continuing we've got are also be of because lot we We've the improvements. strong we're a that gains. value-add then had

Jason? So

to mean, don't think to anything you left that. I I add that I fair, can be

the that being challenges dynamic certainly and offsetting our second and any half highlighted, our that's then improvements, economics market I you supply then any mix with normalized look aligned very facilities. very base, and playing through than expectations see we're the marketplace. And in pricing our is the of And to we more in the think don't at to summary pricing budgets. our productivity pricing that as the terms year within continuous fluctuations say much end the price change of basic in a within improvements of it as much would out are seeing related as see various We Tom I We well. year. within is the

half see. in very of second we'll with in much is the terms half line first going what So be the I to say would

zinc one volatility just thing so and you other add would up into the I now then going costs And in that. with brought --

ways headwind demand coming actually But up the benefit that us to So back there of rebuilding think out with obviously, prices could next actually zinc a to as cost get increase we in could I'll going year come that that opportunities overall the some could become extent. market. with along some I hurricane in into be because the to

they of about Because when connection value pricing go to zinc kind prices. the raising there's still day, -- at costs customers expect see the while us talk up, to to end our of we like some be

as So demand flip stronger the there's that if anticipated. on going But be as think get is side for both into will year. well as kind next opportunities of us side over productivity pricing had the to been we what than I on

sufficient second of this And for provide of the margins That's context it. the That's recent operating detail. demand current current detail added helpful. on really levels then Is big my some question, at can Got the EBITDA margins, we closer great fluctuations? just you to a do environment picture, in sustainability back thoughts recovery elevated growth and Metal somewhere the XX% support XX% and there. margins? sustain in to to over those respectively, Or need any across Just Coatings really business Precoat? mid-single-digit

great Yes, that's a question.

to I around think the chasing weren't on for QX, volume volume demonstrated had, sake. Metal and that there in side but volume we not on demonstrated focusing that their And done be profitability. discipline But galvanizing the side I volumes the fact say on team was much. I'd spite we've of that Coatings value up -- think our

But depending the up -- what more when the I fourth a volume winter. drops happens while because on significantly, on slows months. happens, winter just no So what given construction quarter in matter quarter basis, with

talking summer we're fall type versus weather, about winter spring thing. the of talking more we're when So about

that as we've long QX, -- margins demonstrated we when I XX%. as So it'll which think just to -- below does, QX, we'll it got off should discipline hold falls slightly able the in opportunity we volume probably other be continue as the given we drop to, would than that, those intend

last a part our wide planning been we've that the kick XX% above that X of to range. two, too been, range, do Because is We've off will And of here shortly. process I XX% we'll to range, as and X the got long revisit too one think quarters, of XX%. we've of a

given close hope would I outlook, XX% that, or at could to So I we it. sustain that think

side, On volume. it's Precoat about the all

about And situation. can in the same so construction up. volume, slows above quarter, fourth when stay they the in They're talked they've we've got XX%.

on So we'd to XX% good XX% the now But drop quarter like good is we've Fourth focus the in and is as number. -- but maintaining seen. volume of mix. center the that the It's our I range. could think a good right

i liking the So XXs. am

comes Wolfe from question next Tanners Timna with Research. The

market how to gains? in more are on in? are wonder, ask And the about productivity much I wanted market we and productivity and and of both we -- comment we what share in see could inning gains that

we're yes, But and -- think But the opportunity of quartile digital still we're that equipment on side, But productivity to AI -- the still to I'll continuing One, Yes, I operationally, on maybe up couple things can couple on and a XX and and things. more fact got bring galvanizing galvanizing streamline and fleet perspective, efficiency there's that there's our averages. and from them drive innings to system. And other a we bottom opportunities the galvanizing we've later and we're given our focus locations, this, infrastructure. that got galvanizing and always on side. to need use productivity we've that of using the on with -- side. invest think a years we in of I some obviously, to probably improvements, the there's mid- G&A

go still say we've on got And that. few so that's a still why I innings to

every playbook X fashion on. the with But disciplined managed to level. that next the what high as through in strong to to get and our kind really Our I this facilities still those years facility out is top ones. just got work of make those. being We've focus we've we're over in got think performing it the very facilities consistently XX sure challenge go of really, is is going perform as at that's or And X

high those make thing. team really, and operationally. number keep going us that side, -- got of The we've So we're kind the opportunities. to of We've in I think And but others same good on got is the the and then productivity. a And investments opportunities to sites performing lines to that the Precoat margins really production are of we've drive that some near that got give continue probably peak. the

to Precoat we're mid-innings say in probably the earlier the I'd So on mid-innings side. --

some but zone, to have more do universally. bringing doing we So going efficiencies with of there to like some more in and tools and of -- We're to going be we do some work. productivity be is having DGS doing things some kind systems can we're opportunities Cal drive -- with the things and

So I'm improve and maintain to optimistic about margins. our opportunities

some for question. there's to the also of do to part think take the share helpful the on share? continue market market That's room But you productivity side,

we We Absolutely the this think construction there's how architecture things, side, they're well, in terms because and Europe. different. that disciplined. I galvanizing there's last in demonstrated quarter, of bit there's galvanizing hot-dip X market But little things U.S. we're like into versus as taking galvanizing, a share, and -- very still more of the talk penetration on and about

market So XX% share, on in. we're XX%, play that at I think maintaining in side, market least we what share,

the in moment that, of little not but we Precoat the as pushing So I've because some performing up my it's can we're on highest it is the that of mind as to little opportunity side, big a volume although sites do season. as constrained a our be are at peak bit, an bit in got actually careful

own precoat opportunities for customer those think on share their side. But a side I -- find of that to painting the market that's than galvanizing those And more when form market to view opportunities as get on stuff, is I the conversions, a of so because share and stop gain. there we looking there's

put I'd fourth So this inning.

more And if Okay. I for Super. me, then one could.

you've that the to increase or what addition conditions into insights had think steady capital a go in to cause I dividend. know allocation, Any could you need On returns dividend about what maybe? really or to shareholder up the buybacks

a there's down. ourselves great. couple that paying we're is get we're But get that of to now for is still One, now, service debt. cheaper, which still trying think I getting down debt Yes, things. And

current Xx think leverage. target a is like more our I

still So that. focused we're on

looking not think as start at pipeline, probably but dividend we're our that one multiples, the rather nicely think nearing it's if I money. things because that's if get on for if the dependent to acquisition things, acquisitions then spend we done can action We -- the where then year. we rather opportunity, leverage, then will are anything some that's -- I'd under that I'd buy going And I those our this some

to, put in talk get investments, and January, do, on And think So year now. we technology more. debt got late next acquisitions for as early we plan I for the the February, as we've side about the always guidance our in then next well some investments as for year, together we'll as that the continuing we CapEx given

comes Markets. question Noble Capital next with The from Mark Reichman

revenue a if $XX remember I I talk it's expected could $XX you Missouri was wondering how the revenue will correctly, to million facility. ramp to Washington, million. little bit of the about generate up new If from

look in starts XXXX year that year is fiscal to what would just fully that And February, given does XXXX? expect in ramp-up the you like? So exactly fiscal realize what

answer to Jason since... let I'll that

be through fiscal the of Yes. our come through end we'll here testing clear, To this year.

that line year make start that the which the mentioned. us that of March the we're first slowly really, year starts wouldn't time fiscal peak executing. XXXX to us, ramp to is you see start for We'll I operationally, frame getting revenue. that that to in and So sure line build at

into really, before and margins. you associated with So you've get year run that to second got see rate full that revenue

Okay.

mean, takes long so get just rate? of run I kind reiterate, to the So to peak that ramp-up how to

Yes.

So again, the through will about first first year, if then you think ramp that year. we

As you're just probably year, about ramp. tailing the I that second think off

that $XX to second the lower end we'll out million the that's in million be year, estimate probably at $XX So there. of

operationally you and get the It's the first could running. up and number you look the probably we that that I think as to have subject then obviously, at customer facility X. year, all

But be the certainly a numbers as preference. customer, is go and those then we could taking slow up delighting the a So going quicker. look move could cautious we to right to at approach

we've wildcards what question on just in guidance? at I during of call, I view, the of your the margins? comfortable EBITDA second of and the I is high the -- pretty end end in the think coming low matter sounded sales but you're it are margins then a this It the have versus a terms more with. like sales in or touched is mean, And just Great. Okay. lot

Yes.

and I'll going facilities now, positive putting are some bunch hurricanes and we this together, if of been the us, had were our to for of have it think overrun, which when that a things I be could flooded say been negative. Right a couple the of things.

from to upside. opportunity moved and it's that So

the at question of of end our sales the low think range out I So this is point.

a September the to strong here quarter We and outlook also through for got in October. off QX

some the and the and Avail. income had better we of concern also into on about have the of us equity things just that been So mitigated positive probably from -- the recently. are terms feel And sales then and side in now EBITDA turning

latest less I So But their confidence us. news XX for I over trended third positively the end -- had, from hours quarter to going concerns the gives the last think we us the think that affects the trend of have sales. mean, range. I so to also EBITDA that's some of I that high that we things -- have just say

one a Would of did early Just the on second in little it you follow-up that half to is It Or last have a a too split to that? Avail. year. fourth expect similar kind strong predict third quarters?

looking so quarter. They're they had lot we're see us, and second because -- better. a they've strong what going backlog, at got they you're to unlike predict trend. exactly theirs a strong that's half, a similar I a they third No, think predicting Yes, can

Thompson Thalhimer with The next Adam from Davis. question comes

about are seeing you there? you What visibility Can side? Electrical talk on the T&D

really see our seeing can far centers, then, And side, we're the outlook some And necessarily positive is things of hurricanes data as very course, done that. when as and we But -- strong. We're really it tie strong well, to and particularly. too, -- to that. you the for the look It's additional robust. next like T&D doesn't have clearly, damage towers, out the on -- continuing which at poles, loving

to in term. the just that So got stronger too, intermediate short least at

touched actually about a quarter, last data think at you I And Precoat? centers. which question, follow-up my talked benefit you on was center data And

Yes, there's the built. really of are being to to more business, and panels. a lot they this paint there because -- them a lot built And a need it's going that great is be just and

of opportunity, -- and pre-aint good that's it's in So own of avail our electrical one converted has group post-paint. those instead to

center they and do a -- lot work. data So of

think about. that's So we that. That's to those about exciting just remain opportunities one excited of

quickly half? Great. on And Jason What just then are you expense. for for the interest back using

we Term swap XX% our there through Fed obviously, that north and refinanced rates Term Loan our reduced there. overall September B of B mean, in well, our I arrangement as got then we've and our interest of recognizing Loan fixed the

you look reduction. rate half. in certainly, loan XX of term back a in in million $X So the our factored building is terms around at of that which B additional if basis been that's points, about And

in As confirmation there. forecast. there more and our you was was and forward the huge in not arrangement, pickup swap already curves what there's forecasted at There's look our what a of

Lucas with The next question Securities. from B. comes Pipes Riley

cetera? decline versus is How the versus You spending, changes touched on implying of so EBITDA mix versus seasonal half. a there? maybe touch drivers public guidance this first with call. half changes private on little bit et much XX% throughout second about But in in this a or the key you Could

question. we be going half QX, of now how last great of better we this half given this second it's year started to Yes, the second I'd at than say We slightly in just XXX% is anticipate point, seasonal. -- year. the

EBITDA we conservatism our range. think I in some had So

is the that a which So there just we construction it, as we fourth feel but impact things volume, normally in quarter. about right would -- on now, see good look seasonal we'll

third EBITDA fine So a is quarter basis on an from looking comparative perspective.

in don't us that's anything impact levels we some price profit a see to cost So perspective going issue. terms margin or of extraneous from

So last year the this pure seasonality yet year. and second second half related volume. than half to better

would the how very you you cuts appreciate already on broader demand in kind pockets I quickly helpful. of through? flow that of do it. have rate the think changes -- color. this backdrop with I seen And appreciate Very quickly recent And demand?

the at as -- rate election, through much It's I waiting talk they're to cycle, it we the to we see waiting think what as what's to the get of see all. in we've next election seen happens for cut. still think don't Yes, I customers,

don't I at than about So much we've other that customers terms know change of in all talking we've it. seen opportunities got

plans going think I next -- affect CapEx year. for they their as And to it's

budget season. on And coming up so they're

project that seeing we into year and impact activity start could the we that, seeing interest as and for rate in terms budget they get cuts those next start from as spend. so of And

the on as anticipating affect So our our I'm a as as next projects we fiscal now And that outlays kick we our will right. that. Thank be CapEx year, ours we easier. some that, forward it can justify close With I will for to we'll off do -- bit it up. little looking probably for end of budget of All our quarter our going is the to you balance earnings of look focus second call. in a the be the had forward talking to and third and our for we've to We of focus quarter. We success at year. successful forward for the our to that care execution you look customers participating continuing taking

has now conference for you The concluded. today's Thank attending presentation.

may now disconnect. You