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President and CEO Jennifer Slater described the transformation as being in the 'early innings,' with the focus shifting to longer-term initiatives. She clarified that portfolio reshaping involves refocusing on growth areas like power access, not divesting existing lines, and that customer expansion is prioritized within automotive first. CFO Matthew Pauli stated that while FY26 will see pricing tailwinds, they will be offset by lower volumes and labor inflation, and noted incremental margins are in the 25-30% range. He also confirmed inventory would likely increase by about $5 million. Slater added that she is comfortable with current personnel investment levels and that there is no new update on the Milwaukee facility sale.

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Mike Williams, CEO & Director, clarified that recent market share gains were primarily from domestic competitors, though tariff-related inquiries are increasing. He noted that aerospace and defense supply chain issues are improving, with more orders expected in Q4. Regarding melt utilization, Williams cited electrical supply interruptions and equipment reliability as challenges and detailed a new initiative with a third-party expert to optimize shop floor execution, targeting $10 million in annual savings.

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CEO Harold Bevis stated that second-half guidance relies on the ramp-up of new program launches rather than a market rebound. SVP & COO Tim French confirmed the increased CapEx is primarily for growth and that the 'Group of Five' facilities are on track for profitability. Bevis added that the electrical wiring venture is still being evaluated but will leverage the company's existing ITAR, ATF, and FDA certifications.

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SVP and CFO Chris Bohnert confirmed that the $14 million to $16 million free cash flow guidance includes the CARES Act refund, which amounts to approximately $12.3 million to $12.4 million. He also noted the guidance is net of the targeted $10 million in cash CapEx for the year. President and CEO Harold Bevis and SVP and COO Tim French both reiterated that business in April started stronger than forecasted, providing optimism for their full-year guidance.

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Executive Harold Bevis confirmed new business is written above the 20% target, with a floor of 25% margin and ROI, noting they walked away from $340 million in quotes due to poor economics. COO Tim French detailed that the Juarez plant is leased and has ceased production, while the owned Dowagiac facility is for sale and will close in Q2. Regarding the balance sheet, executive Christopher Bohnert stated the term loan refinancing is expected to conclude in the first half of the year, with the preferred equity being a 'third step' after the loan and China financing are addressed.

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CEO Brett Cope noted that the project pipeline remains strong, particularly in the gas, utility, and commercial sectors. CFO Mike Metcalf explained that the backlog provides revenue visibility into late fiscal 2027, with about 65% converting in the next year. Metcalf quantified that project closeouts and unusual items contributed approximately 150 basis points to the year-to-date gross margin. He also attributed the SG&A increase to higher variable compensation and expenses related to the REMSAK acquisition.

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CEO Brett Cope confirmed a robust project pipeline, particularly in the gas, utility, and commercial markets. CFO Mike Metcalf added that the backlog provides revenue visibility into late fiscal 2027, with about 65% converting in the next year. Metcalf clarified that on a year-to-date basis, project closeouts and unusual items contributed approximately 150 basis points to gross margin. He also attributed the higher SG&A to increased variable compensation and expenses related to the REMSAK acquisition.

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CEO Brett Cope explained that market conditions have stabilized but don't yet support more aggressive pricing. CFO Michael Metcalf projected a normalized gross margin rate of 26-27% excluding recent elevated project closeouts. Cope projected the expansion would add $20-$40 million in revenue next year and stated that cash is being prioritized for organic growth and M&A over buybacks or a stock split. Metcalf clarified data center revenue is still in the single-digits of total company revenue.

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Executive Brett Cope detailed that capacity expansions are on track, with the Houston product factory set for completion by mid-fiscal 2025 and newly acquired acreage providing further options. He noted pricing on large capital projects is holding steady, with value-add focus shifting to services and automation. Regarding the cash balance, Cope confirmed an active M&A focus on the product and automation spaces, targeting acquisitions in the $50-$75 million range. CFO Michael Metcalf added that a portion of the cash, around $175 million, is earmarked for working capital to execute the existing backlog.

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CFO Michael Metcalf explained that Q4 gross margins were lifted by 150-200 basis points from project closeouts and 60 basis points from three non-systemic project cancellations. CEO Brett Cope stated that pricing on new jobs has not significantly changed and detailed the capacity expansions, noting the Hansen facility could add $20-$40 million in revenue over two years. Cope also confirmed data center sales were in the low double-digits (around 10%) for the quarter and highlighted that the utility sector is causing the most significant change in the backlog's composition. Regarding cash, Cope affirmed that the company is very active in evaluating M&A opportunities, with a clearer strategic focus emerging for the midterm.

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James Ray, President and CEO, explained that the cost savings are considered permanent, stemming from material, indirect, and manufacturing improvements that will scale with volume. He described tariff negotiations as a dynamic, ongoing process expected to conclude by year-end. Ray also noted increased OEM downtime from June through August. Andy Cheung, EVP and CFO, added that current market activity is tracking with ACT's projections. Regarding the forecast, Ray clarified that ACT has removed the 2027 emissions pre-buy dynamic, now projecting flat builds into 2026 followed by a low double-digit increase in 2027.

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President and CEO James Ray stated that April's revenue profile was in line with expectations and that the company has about 2-3 months of visibility into customer production schedules and downtime. Executive Andy Cheung noted the decremental margin is around 20% and explained how the new segments correlate to different end markets. Ray detailed that remaining cost savings will come from operational excellence, supply chain optimization, and synergies under the new COO. Cheung clarified that freight cost improvements, stemming from operational stabilization and reduced expedited shipping, accounted for about one-third of the 240 basis point sequential gross margin improvement in Q1.

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President and CEO James Ray stated that Q1 performance was tracking in line with market forecasts, with an expected H2 2025 uplift from a Class 8 pre-buy cycle. He confirmed a $100 million annual target for new business wins, highlighting recent success in the EV and autonomous vehicle space. Executive Andy Cheung added that D&A for 2025 is expected to be consistent with 2024, and CapEx will be at the low end of the typical 2-3% of revenue range to prioritize positive free cash flow.

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Executive Andy Cheung stated that the majority of the recent $20 million payment was used for debt paydown and the average interest rate is 7-8%. He also clarified the flat outlook for ag and construction is a full-year 2025 vs. 2024 comparison. CEO James Ray added that competitive pressures are stable and that the company is at the tail end of production inefficiencies, which had an annualized impact in the upper-single to low-double-digit millions for continuing operations.

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Ziv Shoshani, CEO, President & Director, explained that the transportation market's variability was due to very large onboard weighing orders in Q1 that did not repeat in Q2. He attributed steel market softness to a weak global auto market and tariffs, noting recent orders were for R&D rather than inline equipment. Shoshani stated the $5 million cost savings program should conclude by Q4 2025, with $2.8 million realized so far. He described July trends as having 'no surprises' and affirmed that VPG is collaborating closely with robotics customers to ensure capacity will meet their future production demands without becoming a bottleneck.

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The company sees positive signs in the Sensors segment with a book-to-bill over 1 and expects an H2 acceleration. Steel tariffs are expected to be a net positive due to the company's non-Chinese manufacturing footprint. The $5 million in cost savings are structural efficiency improvements. The Nokra acquisition is expected to be accretive in 2025, and the $100 million new business pipeline is a 3-4 year opportunity with attractive margins.

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CEO Ziv Shoshani explained that the Sensors segment is showing positive signs with a book-to-bill over 1 and expects an acceleration in the second half of the year. He noted that steel tariffs have a limited direct impact due to VPG's India-based manufacturing but could create a tailwind for US sales. The $5 million in cost savings are permanent reductions from operational efficiencies and moving functions to lower-cost regions. Shoshani also stated that Nokra had a neutral Q4 impact but is projected to contribute $6 million in revenue in 2025 with positive margins, and the $100 million new business opportunity is an aggregate target over the next 3-4 years with margins expected to be at or above the company average.

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CEO Ziv Shoshani explained that the Sensors segment is showing positive signs with a book-to-bill over 1.0 and an expected acceleration in H2 2025. He noted that steel tariffs have limited direct impact due to VPG's India-centric manufacturing but could create a competitive tailwind. The $5 million in cost savings are permanent reductions from operational efficiencies and automation. Shoshani also stated that the Nokra acquisition was neutral in Q4 but is targeted for $6 million in profitable sales in 2025, and the $100 million new business opportunity is an aggregate revenue target over the next 3-4 years with a margin profile similar to or better than the company average.

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The end-market outlook is mixed, with some inventory replenishment but no broad demand recovery yet, though long-term optimism is growing. The company is actively reducing costs by relocating production to its India facility, which is expected to yield multi-million dollar savings. The M&A strategy includes both small technology acquisitions like Nokra and potentially larger targets that offer operational synergies.

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CEO Ziv Shoshani described a mixed end-market environment, noting a Q3 order drop in Measurement Systems due to project timing but expecting a Q4 rebound. He highlighted stock replenishment in some markets, softness in Europe, and optimism in precision agriculture. Regarding costs, he mentioned ongoing streamlining, including product line relocations to India, which are expected to yield multi-million dollar savings. He explained that Nokra was acquired to broaden the KELK product portfolio to meet customer demand and that the M&A pipeline includes both small technology tuck-ins and larger, synergistic targets.

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CEO Kieran O’Sullivan explained that strong therapeutic sales were driven by a large order, while diagnostic softness stemmed from capital spending in Asia and potential tariff effects, though he expects overall medical growth for the year. CFO Ashish Agrawal noted that the tariff impact was minimal in Q2. Regarding transportation, Mr. O'Sullivan described a mixed regional outlook with potential bottoming in China but ongoing caution due to tariffs. He confirmed the SciQuest integration is proceeding well, with a focus on growth rather than cost savings. For M&A, Mr. O'Sullivan stated CTS is actively exploring opportunities in diversified markets and aims to complete a deal within 12 months to support its inorganic growth targets.

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CEO Kieran O'Sullivan clarified that strong Q1 bookings were driven by medical therapeutics and defense, not pre-buying, and that the company hasn't factored a demand drop from tariffs into its guidance. He explained that profitability is expected to ramp through the year, aided by the SyQwest acquisition's seasonality and favorable product mix. CFO Ashish Agrawal attributed the SG&A increase primarily to the SyQwest acquisition, including amortization, and confirmed the company is managing discretionary spending. Agrawal also noted that normal seasonality will be affected by SyQwest's second-half strength, and confirmed the CapEx budget is around 4% of sales and the tax rate guidance is 19-21%.

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CEO Kieran O'Sullivan stated that CTS is proactively mitigating potential tariff impacts by working with customers and suppliers, leveraging its global footprint and past experience. For the 2025 guidance, he noted that SyQwest is expected to show solid growth, contributing to an overall forecast of 1% to 7% company growth, with transportation declining slightly and diversified markets growing in the high single digits. O'Sullivan also indicated that the commercial vehicle market is expected to experience softness throughout 2025.

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CEO Kieran O'Sullivan and executive Ashish Agrawal explained that the gross margin improvement was driven by a strategic shift in sales mix towards diversified markets, favorable foreign exchange rates, and factory efficiencies. Ashish Agrawal clarified that the R&D drop was due to the timing of customer reimbursements. Regarding SyQwest, it contributed $3.6 million in Q3 sales and is accretive at the EBITDA level but slightly dilutive to EPS in the short term. Kieran O'Sullivan noted that while a detailed 2025 outlook will come later, they see positive trends in industrial and defense but near-term softness in medical and transportation. He also confirmed the company remains active in its M&A pipeline to support diversification, with Ashish Agrawal adding that M&A and buybacks are higher priorities than aggressive debt repayment.

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CEO Jonathan DeGaynor clarified that the reduction in the 'net other launches' figure was due to other EV program delays and cancellations, not a failure to secure pricing. He confirmed that the company expects growth in the industrial segment, particularly from data centers and lighting, aiming for a 50/50 split between automotive and other businesses. He expressed pride in the Nordic Lights team's performance in a challenging market. Regarding transformation, he stated that rightsizing is ongoing, while headquarters relocation and portfolio reviews are expected to occur within fiscal 2026.

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CEO Jonathan DeGaynor clarified that the reduction in the 'net other launches' figure stemmed from program delays and cancellations, primarily in North American EV, not from pricing issues. He confirmed that growth is assumed in the industrial business, particularly data centers and lighting, to rebalance the portfolio. DeGaynor expressed satisfaction with Nordic Lights' performance and affirmed that initiatives like plant rightsizing, portfolio review, and the headquarters relocation are all actively being worked on for execution in fiscal 2026.

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President and CEO Jonathan DeGaynor expressed satisfaction with the Nordic Lights team's performance, noting they managed well despite challenging industrial end markets in calendar 2024. He mentioned seeing positive signs or 'green shoots' for calendar 2025 and sees further opportunities for growth in the industrial lighting sector, which is a strategic focus area.

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President and CEO Jonathan DeGaynor explained that the revenue drop was mainly due to slower-than-expected ramp-ups of new customer programs, not cancellations. He noted that while expectations for some programs like Stellantis are now lower, a new takeover program with GM signals customer confidence. DeGaynor confirmed pricing actions are an ongoing, global activity. He highlighted data centers as a bright spot, contributing 7% of revenue in the quarter and expected to be 9% for the year. Regarding the Class 8 market, he stated their guidance incorporates a market decline but that Methode is seeing higher RFQ activity. He also expressed satisfaction with the Nordic Lights team's performance despite end-market challenges, seeing growth opportunities in fiscal 2026.

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CEO Jonathan DeGaynor confirmed that improved overhead absorption and reduced scrap contributed to cost savings. He stated the majority of new awards were for EV and power programs and that the data center business, roughly 3-5% of sales, grew 50% year-over-year. DeGaynor also noted that while the commercial vehicle market outlook is soft, operational improvements in Mexico are progressing from a 'fix' to an 'improve' phase, evidenced by a $7 million quarterly reduction in premium freight. He explained the CapEx reduction is due to both efficiency gains and program timing shifts. CFO Laura Kowalchik added that the company expects to reverse some of the cash outflow and approach a neutral position by year-end.

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Interim CFO David Rawden and CEO Jonathan DeGaynor explained they are maintaining guidance to be cautious and build credibility, citing market headwinds and the newness of the leadership team. DeGaynor noted that pricing discussions are ongoing and rigorous, especially when customer delays impact Methode's capital and inventory. He described supply chain efforts as a holistic approach to reduce total costs, not just procurement prices. Rawden confirmed the tax guidance is a GAAP estimate, and DeGaynor stated that new EV programs are expected to be at least on par with, or accretive to, current gross margins.

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CEO Jonathan DeGaynor clarified that the decline in the 'net other' category was driven by other EV program delays and cancellations, not a failure to secure pricing. He confirmed that the fiscal 2026 guidance assumes growth in the industrial business, particularly from data centers and lighting, with a goal of achieving a 50/50 revenue split between automotive and other segments. DeGaynor expressed satisfaction with Nordic Lights' performance and stated that transformation initiatives, including plant rightsizing and portfolio reviews, are actively underway and expected to have an impact within fiscal 2026.

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CEO Natalia Shuman acknowledged a challenging operating environment due to "unprecedented uncertainty" from tariffs causing project delays. However, she highlighted that the PCMS data analytics segment grew 6% and that the company's commercial discipline continues. Shuman confirmed a slight improvement in demand in April and stated that the $6.5 million in delayed turnaround revenue is expected to be recovered and exceeded in the second half of the year. CFO Ed Prajzner added that Q2 offers an easier year-over-year comparison than Q1.

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President and CEO Natalia Shuman shared that customer feedback has been very positive, with excitement around MISTRAS's full suite of integrity solutions. SVP and CFO Edward Prajzner confirmed that receivable issues are behind them and that the 2025 turnaround season is expected to be normalized, with a weaker spring and a more robust fall, contrasting with 2024. Natalia Shuman added that while data analytics revenue was down in 2024 due to project timing, the company is investing for growth in 2025, driven by strong demand for its PCMS software.

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Executive Edward Prajzner explained that the cash flow guidance was lowered due to an elevated accounts receivable balance that cannot be fully recovered by year-end. He detailed process improvements, including increased management focus and a future ERP upgrade, to address this. Prajzner also confirmed that modest price increases contributed to revenue while volume was flatter. Regarding healthcare, he noted the impact was in the 'millions plus' range due to claims experience rather than a structural issue. Executive Manuel Stamatakis added that the company focuses on improving the profitability of existing accounts rather than exiting business lines.

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CEO John Hewitt explained that the transmission and distribution business was exited due to competitive disadvantages and a lack of new awards, making a wind-down the most logical step. He noted project deferrals were due to contract finalization delays and client caution amid trade uncertainty, but emphasized strong underlying demand. Regarding smaller projects, Hewitt stated that a new business development structure aims to recapture this foundational work, which is vital for client relationships, team development, and overhead absorption. CFO Kevin Cavanah added that exiting the T&D business primarily saves the company from its operating losses.

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President and CEO John Hewitt explained that the transmission and distribution business was wound down due to competitive disadvantages and a lack of new project wins, making a sale unfeasible. CFO Kevin Cavanah noted the primary savings would be the elimination of that unit's operating losses. Regarding deferrals, Hewitt cited the delayed start of a major storage project and a client's offtake agreement delay due to trade uncertainties. He also highlighted the strategic shift to refocus on winning smaller, foundational projects to strengthen client relationships and improve overhead absorption.

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CEO John Hewitt explained that the transmission business was exited due to competitive disadvantages and high capital needs after failing to secure key projects. He noted project deferrals were due to contract timing and client hesitancy around trade policy, but emphasized strong client intent for future spending. CFO Kevin Cavanah added that exiting the business primarily saves on its operating losses. Hewitt also stressed the strategic shift to refocus on foundational smaller projects to strengthen client relationships and build the business base.

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President and CEO John Hewitt explained that the exit from the transmission and distribution business was due to competitive disadvantages, as the company was 'too big to be small and too small to be big,' leading to an inability to win work at acceptable margins. He noted the business will be wound down. Regarding project deferrals, Hewitt cited a delayed contract signing for a major storage project and a client's pause on another project due to trade uncertainties. He also highlighted a renewed focus on smaller, 'foundational' projects to deepen customer relationships and improve overhead absorption. CFO Kevin Cavanah added that the primary financial benefit of exiting the T&D business is the elimination of its operating losses.

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CEO John Hewitt and CFO Kevin Cavanah addressed the questions. Hewitt confirmed a singular, significant project delay caused the revenue shift, with that revenue now expected in the first half of fiscal 2026. Cavanah noted that profitability is more likely in Q4 than Q3 due to the revenue ramp. Hewitt stated that strong market demand should support favorable margin profiles on new work. He attributed the pipeline's growth from $5.7 billion to $7 billion primarily to new LNG peak shaving opportunities. On inorganic growth, Hewitt reiterated that the main focus is organic profitability, but future M&A would target strengthening regional capabilities and specialized E&C services.

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President and CEO John Hewitt clarified that the deferred revenue was from a singular, significant job that is delayed, not lost, with revenue likely realized in Q1 and Q2 of fiscal 2026. CFO Kevin Cavanah added that profitability is more likely in Q4 than Q3 due to the expected revenue ramp. Hewitt stated that strong market demand and project scale should allow for a strong margin profile on new work. He attributed the opportunity pipeline's growth from $5.7 billion to $7 billion primarily to new LNG peak shaving projects. On inorganic growth, Hewitt said the principal focus remains on returning to profitability, but future M&A would aim to strengthen regional capabilities and their position as a specialized E&C provider.

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CFO Kevin Cavanah addressed the financial questions, explaining that the Utility segment's revenue dip was due to project timing and is expected to reverse, while the SG&A increase was primarily driven by non-cash, stock-based compensation. CEO John Hewitt commented on the market dynamics, stating that small project demand is stable with improved visibility from a key refinery client. He opined that a new administration would be a net positive, likely lifting the LNG export permit pause. Hewitt also clarified that Matrix has minimal direct exposure to wind and solar but sees opportunities in renewable fuels, and confirmed that the company is successfully managing a tight labor market to secure the talent needed for growth.

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CFO Kevin Cavanah explained that the utility revenue dip was due to project timing and expects it to increase quarterly. He attributed the SG&A rise to non-cash stock compensation (LTI) and projected it to remain around $18 million per quarter. CEO John Hewitt clarified that small project demand is stable, not necessarily increasing, but visibility has improved with a key refinery maintenance contract renewal. Hewitt also stated that a change in administration would likely be a net positive, potentially lifting the LNG export permit pause and unlocking projects. He noted the company has minimal direct exposure to wind and solar but sees opportunities in renewable fuels. Regarding staffing, Hewitt confirmed the company has been adding talent and is confident in its ability to find the necessary resources to execute on its growing backlog despite a tight labor market.

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CFO Kevin Cavanah attributed the strong Process margin to exceptional project execution and a favorable work mix, guiding long-term for that segment to 9-11%. He and CEO John Hewitt confirmed new backlog projects are bid at healthier, historical margins. They detailed that FY2025 revenue will see significant growth in the Storage segment, while the Process segment will be weaker in the first half before recovering. Hewitt clarified the current revenue mix is roughly 30% service/70% project work. On competition, he noted that while smaller jobs are competitive, larger, complex projects have a more rational landscape. Regarding hydrogen, Hewitt sees it as a long-term opportunity but noted a recent slowdown and expressed caution towards developer-led projects.

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CEO Carlos Quezada stated that he does not see 'vaccine fatigue' as a factor, attributing strong performance to the successful execution of their strategic plan, pricing structure, and operating model. CFO John Enwright detailed ongoing supply chain initiatives targeting insurance assignments, urns, caskets, and fleet management, with savings expected to be realized progressively through the year. Quezada added that the industry is historically resilient during recessions and that while preneed sales might require more effort, the company can accelerate lead generation to meet its growth targets.

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CEO Carlos Quezada stated that the preneed cemetery growth is sustainable, driven by a more mature strategy, better lead generation, and strong leadership, projecting low double-digit growth for the next 4-5 years. He expects normal seasonality to return in 2025, with Q3 2024 being an exception due to large sales. He also explained that volume adjustments are ongoing as the company balances pricing and market share. CAO Kathryn Shanley clarified the 13-14% overhead target is on an adjusted basis, excluding items like Project Trinity costs, and is the normalized expectation for 2025.

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CEO Carlos Quezada explained that while data on cremation service upgrades is still new, the trend is very positive. Regarding the supply chain, he detailed a phased approach, expecting $450,000 to $700,000 in savings by year-end 2024 and around $2 million in 2025 from Phase 1 alone. He acknowledged the unexpected drop in death rates in September of the past two years but does not anticipate a repeat in 2024 based on positive July trends.

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CFO Bob VanHimbergen identified dual sourcing as the strategy with the most immediate near-term impact. He noted that surcharge pricing will be targeted, with greater effectiveness in the APS segment compared to the more price-sensitive MTS segment. He confirmed the $15 million tariff cost in the outlook is a high-end estimate that includes some initial mitigation, but expects further offsets over time. He then detailed the TerraSource deal, explaining that Hillenbrand expects to receive approximately $100 million in net proceeds, which will be used for debt paydown upon closing in late Q3 or early Q4.

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CEO Kim Ryan described India as a continued growth opportunity with strong performance, while China's demand has stabilized at lower levels after a significant downturn. She emphasized the company's 'local for local' strategy. Ryan confirmed that test lab activity remains a robust and positive leading indicator, with labs for key end markets like recycling, food, and polyols remaining full, signaling serious customer investment and future capital projects.

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Executive Tom Ferguson described field reports as optimistic, with projects moving forward and customers confirming capacity for Q1 and Q2. Executive Jason Crawford noted that sentiment at recent industry forums has been upbeat. Regarding zinc, Executive David Nark clarified that zinc is on the tariff-exempt list, the vast majority of AZZ's supply is from North America, and suppliers have expressed no concerns about availability.

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CEO Thomas Ferguson stated that the Metal Coatings segment's strong margin performance is sustainable due to fundamental operational discipline and zinc productivity, and the company is considering resetting its target margin range upwards. He confirmed the AVAIL JV has seasonality but possesses a very strong backlog on its electrical side. Regarding the new plant, Ferguson noted that filling the remaining capacity looks 'really good,' with opportunities to optimize production between the new facility and the existing St. Louis plant.

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Executive Thomas Ferguson confirmed that AZZ's facilities in Virginia, South Carolina, Alabama, Tennessee, and Mississippi are well-positioned to support rebuilding efforts, with a typical 3-to-6-month lag before reconstruction demand ramps up. Regarding zinc, he explained that while volatility exists, AZZ's pricing is largely disconnected from the underlying commodity cost, though rising zinc prices can make it easier to increase overall service prices. He clarified that the lower JV income was a timing issue and expressed confidence it would rebound, maintaining the full-year guidance.

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CEO Bryan Sayler explained that the guidance does not assume a significant recovery in China for the Test business. Regarding policy changes, he noted that underlying electricity demand remains strong, and while renewable incentives could face threats, the need to optimize existing assets benefits the Utility Solutions Group. CFO Christopher Tucker clarified that the debt refinancing costs hit the interest expense line, while restructuring charges were recorded at the EBIT line.

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