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President & CEO John Kasel explained that while the significant AMH portion of the UK business is being exited, some telecommunications work remains and is being right-sized to improve its profile. Regarding guidance, he expressed confidence in a strong second half, with Q3 typically being the best quarter seasonally, supported by a robust backlog and improved gross profit margins. For the EnviroCast business, Kasel stated the current focus is on establishing the operation correctly and building a foundation for future years, with no significant revenue contribution expected in 2025.

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President and CEO John Kasel expressed strong confidence in a significant Q2 and Q3 for Rail Products, stating the company is positioned for a big quarter despite prior year comparisons. CFO Bill Thalman detailed the backlog mix, highlighting 22% growth in Rail Products and 71% in the higher-margin Friction Management business, alongside a 53% decline in the challenged U.K. market. Kasel attributed Friction Management's strength to acquiring new customers and geographies, excellent service team performance, and effective management of tariff-related supply chain issues.

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President and CEO John Kasel attributed the strong 2025 outlook to technology innovation in Rail, improved margins, and SG&A leverage, noting that Rail tech adoption is driven by customers' need to operate more safely and reliably. He identified working capital funding for organic growth as the main use of cash flow now that the Union Pacific settlement is complete. CFO Bill Thalman quantified the restructuring, stating a $1.5M charge in 2024 will yield an incremental $2.5M in savings in 2025. Thalman also detailed that growth platforms (~$230M of 2024 revenue) are expected to grow in the high single to low double-digits, while return platforms (~$300M) will see low single-digit growth.

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President and CEO Antonio Carrillo explained that the primary benefit of the legislation was providing clarity, which is critical for the industry to move forward. He confirmed that recent weakness was due to weather, not project funding delays, and that the project pipeline is robust. For multifamily demand, he highlighted Texas and New Jersey as areas showing improvement. CFO Gail Peck added that this aligns with third-party research indicating a recovery in the multifamily market.

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CEO Antonio Carrillo emphasized the strong double-digit volume growth in utility structures and excellent operational execution. CFO Gail Peck added that both the wind and Amaron businesses were accretive to segment margins, with the ramp-up of the Belen, New Mexico facility being a significant positive contributor. Carrillo further explained that the fundamental demand for wind energy is stronger now than in past cycles due to growing U.S. power needs, making the business highly viable even with potential changes to tax credits.

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CFO Santiago Giraldo clarified that the revenue pull-forward was driven by customer orders placed ahead of price increases announced in May, with the impact expected mainly in Q3. COO Christian Daes added that while it's early, the plans for a highly automated U.S. plant are progressing well, with the goal of achieving EBITDA levels comparable to their Colombian operations.

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Executive Jose Daes explained that the Continental acquisition is primarily for the condominium replacement and remodel market and provides a needed U.S. manufacturing footprint. CFO Santiago Giraldo asserted the deal would not be dilutive to margins due to expected synergies and operating leverage. Regarding the new U.S. plant, executive Christian Daes outlined a 5-to-7-year phased plan to build a state-of-the-art, vertically integrated facility, which Santiago Giraldo added should yield higher returns on invested capital than typical M&A.

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Executive Jose Daes responded that the company expects vinyl revenue to continue growing, potentially doubling the previous year's results, driven by expansion into new states like Louisiana, Alabama, and Georgia. Executive Christian Daes added that the company is currently operating at 65-70% capacity and is investing in automation to enhance efficiency, confirming they will have sufficient capacity to maintain their 4-5 week delivery timeframe.

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Executive Santiago Giraldo confirmed that while organic growth is the priority, the company is now also contemplating opportunistic tuck-in acquisitions. He clarified that the year-over-year SG&A increase was driven by non-recurring items like strategic review costs and since-reversed aluminum tariffs, plus annual salary adjustments, and he does not expect that high rate of growth to continue.

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Chairman & CEO Bill Bosway detailed a three-channel strategy (wholesale, retail, direct-to-contractor) and explained that the direct model for custom metal roofing significantly increases the revenue per job. He noted the company uses local brands to maintain contractor loyalty and can turn around custom orders in one to three days. He clarified that there are no significant operational synergies between the AgTech and Infrastructure segments.

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Executive William Bosway detailed that Agtech project visibility is mixed; large produce projects can have timing shifts, but the Lane Supply acquisition adds a more predictable cadence of smaller projects, improving overall segment predictability. He confirmed a strong second half is expected, starting in Q2. Regarding capital allocation, Bosway stated the company will continue to pursue both M&A, particularly in Residential and Agtech, and opportunistic share buybacks, as strong cash flow and a healthy balance sheet provide the capacity for both. The new authorization supports this flexible approach.

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Executive William Bosway detailed that Lane Supply is a strong strategic fit due to its leadership in the growing canopy market and its alignment with Gibraltar's existing structures business, offering customer and supply-side synergies. Regarding guidance, Bosway explained the range accounts for uncertainties in the Renewables market related to potential energy policy changes. Upside could come from faster-than-expected participation gains in Residential or stronger project flow in Agtech, while the plan remains conservatively balanced overall.

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Executive William Bosway specified a $4 million revenue impact in Q3 from delayed participation gains, which are now starting to materialize in Q4. He defined participation gains as winning business from competitors, entering new product lines with existing customers, or expanding into new geographies. For Renewables, he attributed the significant margin pressure to the learning curve and operational inefficiencies of launching the new 1P tracker product amid a volatile market with shifting customer deadlines, which was more challenging than anticipated.

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CEO Lasse Petterson expressed high confidence in a Q1 2026 delivery for the Acadia, noting international award lead times are about a year or less. SVP & CFO Scott Kornblau indicated the vessel could generate well over $100 million in revenue in a full year. Petterson also confirmed the base business is executing well under the continuing resolution, with a strong beach renourishment market.

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CFO Scott Kornblau explained that one hopper dredge was in dry dock for part of Q1. For Q2, one hopper and three other vessels will be in dry dock, which will make it the lowest quarter for revenue and margins. He noted a typical dry dock costs $3-6 million plus lost revenue. He also stated that tariff exposure is immaterial due to the company's domestic sourcing under the Jones Act and that most newbuild components are already procured.

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CEO Lasse Petterson ranked the Acadia's opportunities as 1) European/Asian offshore wind, 2) power cable protection, and 3) telecom cable protection, with a primary focus on Europe. He also expressed a positive short-term outlook for U.S. LNG projects. CFO Scott Kornblau detailed the remaining newbuild CapEx at $110-$120 million and projected the company would be roughly cash flow neutral in 2025, even with the significant capital outlay.

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CFO Scott Kornblau explained that an expedited dry docking cost approximately $2 to $2.5 million in the third quarter. He confirmed that fourth-quarter margins are expected to increase sequentially from Q3, a historical trend driven by the opening of certain environmental windows. For 2025, Kornblau noted that while the strong backlog of capital and coastal projects is positive for margins, 2025 will be a higher dry-docking year compared to 2024, which will be a factor.

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CEO & Director Joseph Cutillo explained that Sterling's strategy is to be fair on pricing and drive margin through productivity, which limits new competition. He emphasized that integrating services, like the pending CEC acquisition, creates a significant competitive advantage by reducing project timelines. Mr. Cutillo stated the CEC deal is progressing and is now primarily awaiting state licensing approvals. Future M&A will focus on geographic expansion and adding service capabilities.

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CEO Joseph Cutillo attributed the Transportation margin improvement primarily to a strategic mix shift towards higher-margin services like alternative delivery, aviation, and rail projects. He noted that the impact from exiting low-bid work is still minimal but will increase later in the year. Cutillo expressed high confidence in the bidding environment, citing extremely strong activity in E-Infrastructure and Transportation, while acknowledging near-term softness but long-term optimism for the residential market.

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CEO Joseph Cutillo emphatically confirmed the tone from data center customers is not just positive but 'more aggressive and more hungry to grow faster,' with no change in contractual terms. He suggested E-Infrastructure margins could continue to rise with increasing project scale. He quantified the Texas low-bid business that is being reduced as roughly $75 million annually, which is factored into the company's guidance.

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CEO Joe Cutillo explained that the company is not holding back on current projects as it can rapidly scale capacity when future mega-projects materialize. He clarified that the 'pipeline' consists of subsequent phases of existing awarded jobs, not speculative bids. Cutillo attributed the strong margins to significant efficiency gains and technology adoption on large-scale projects, which more than offset the impact of smaller jobs. He stated that strong cash flow is a result of favorable contract structures that allow the company to work with customer capital, a dynamic he expects to continue.

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SVP and CFO David Goldberg attributed the gross margin resilience to the profitability of newer homes and successful cost reduction efforts on their Zero Energy Ready homes, which offset higher incentives and a high spec mix. Chairman and CEO Allan Merrill detailed the marketing strategy, highlighting the importance of in-person experiences, such as a movable wall panel display that viscerally shows the construction quality difference, to create a connection with buyers.

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CEO Allan Merrill explained that the company plans for affordability to remain constrained and that the book value goal is driven by earnings growth and buybacks, not primarily the deferred tax asset. Executive David Goldberg added that the repurchase cadence will be a dynamic balance between land opportunities, growth, deleveraging, and the stock's price, rather than a predetermined quarterly amount.

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CEO Allan Merrill clarified that the 47 delayed homes were a closings issue, not a sales issue, caused by isolated incidents: a utility company prioritizing storm repairs in Houston and a meter supply issue in California. On community count, he explained that opening 60+ communities to reach a net of 20 implies about 40 closeouts. For future profitability, Merrill highlighted their 'alpha opportunity' in Zero Energy Ready homes, which provides a unique competitive advantage beyond market-wide rate improvements.

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CEO Travis Boone explained that the four large private-sector pursuits had their decision timelines slide out of Q2, with awards now expected in the latter half of the year. Both Boone and CFO Alison Vasquez agreed that recent legislation provides clients with more certainty and financial incentives, which should help expedite capital investment decisions. Boone emphasized that Orion's competitive edge in data centers comes from its deep, long-standing relationships with general contractors and a proven track record of execution.

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CEO Travis Boone explained that while the strong Marine margins were driven by excellent performance on large projects, the Q1 level represents a high point for the year. He also noted that tariff risks are mitigated through 'Buy America' provisions in government contracts and proactive contingency planning. CFO Scott Thanisch highlighted that strong supplier relationships provide a significant competitive advantage in sourcing materials.

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CEO Travis Boone attributed the high gross margin to improved bidding discipline and execution, which has been a focus for the past two years. CFO Scott Thanisch elaborated that better initial pricing and risk contingency were key factors. Thanisch confirmed that margins can improve further with scale through better equipment and labor absorption. He also noted the increased CapEx is primarily for marine construction equipment to capture future growth. Regarding backlog, Boone expects a strong year of growth, while Thanisch noted concrete jobs burn quicker and marine wins are expected later in the year, building the backlog for 2026.

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Executive Travis Boone explained that the 29 data center projects have been accumulated over the last five years, with a significant increase in the past two years, noting 5 were added in the last few months. CFO Scott Thanisch projected continued positive operating cash flow in Q4, though not at the same high level as Q3, and emphasized that the primary focus for capital is investing in equipment to drive top-line growth and earnings.

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H.O. Woltz III, Chairman, President & CEO, confirmed that strong demand, particularly from data centers, has continued, leading to extended backlogs. Regarding tariffs, he stated the company believes the administration's intent is to tax the full value of imported products and is actively communicating with the Department of Commerce to resolve the ambiguity. He also noted that the integration of the acquired Engineered Wire Products facility is proceeding well, praising the team's expertise and highlighting that Insteel is learning a great deal from the new operation.

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H.O. Waltz (Executive) explained that the business momentum from Q1 has continued, with robust demand and solid April shipments, making raw material availability the primary constraint. He acknowledged the disconnect with macro data but highlighted strong customer backlogs and quotation activity as evidence of real demand. Regarding tariffs, Waltz stated that while the Section 232 extension on PC strand is positive news, Insteel still faces a disadvantage due to the significant price gap between U.S. and world market steel.

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H.O. Waltz, an executive, explained that the demand increase was broad-based but difficult to precisely quantify due to variables like inventory levels and weather. He noted that the company anticipated the tightening domestic wire rod supply, which supported proactive price increases. Waltz also described the acquisition integrations as "fantastic," highlighting a rapid and successful transition to Insteel's information systems and positive customer reception due to the stability Insteel provides.

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CEO Ty Silberhorn attributed the Metals segment's momentum to operational improvements, specifically better lead times and on-time delivery, which are rebuilding customer confidence after challenges in Q4. CFO Matt Osberg added that while higher aluminum costs weighed on Q1, he expects continued sequential improvement in Q2 sales and margins as new pricing takes effect. Osberg clarified that savings from Project Fortify Phase two were minimal in Q1 and will ramp up in Q2. Regarding tariffs, he stated the full-year negative EPS impact estimate was lowered to $0.35-$0.45, with the impact heavily weighted to the first half, but did not provide a specific Q1 figure.

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CFO Matt Osberg detailed the tariff impacts, noting the direct effect is on the Services segment importing from Canada, which will be mitigated by closing the Toronto facility. The indirect impact is primarily from higher aluminum costs, which will be offset by pricing and other actions in the first half of the year. CEO Ty Silberhorn added that the UW Solutions integration is substantially complete and performing as expected, with its flooring business showing strong double-digit growth potential. While the overall combined business is guided to high single-digit growth due to macro uncertainty, the acquisition is on track to meet its financial targets.

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CFO Matt Osberg explained that the Glass segment is currently seeing more pressure on volume than price, but expects pricing pressure to increase. He projected Q4 Glass sales to be comparable to Q3. CEO Ty Silberhorn highlighted that the industrial flooring business within UW Solutions is showing better-than-expected pipeline growth and will be a key driver for the new unit. Regarding capital, Ty Silberhorn confirmed that while debt paydown is planned, M&A remains the top priority, and the company has the capacity for another significant acquisition.

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CEO Ty Silberhorn detailed that the Industrial Flooring segment has been a key growth driver for UW Solutions, approaching double-digit growth, and is differentiated by its proprietary coatings that create a durable and smooth surface ideal for robotics. CFO Matt Osberg added that it is a 'better together' acquisition that will enhance LSO's capabilities. Regarding Project Fortify, Matt Osberg confirmed that most charges have been incurred and raised the annual run-rate savings target to a range of 13% to 14%.

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President and CEO Frankie S. Renda explained that Southland is selectively adding new Civil work, focusing on projects with strong teams and track records, and may see a natural shift toward civil projects as the paving business winds down. He confirmed that the two alternative delivery projects are progressing well toward becoming construction contracts within a year. Regarding bonding, Renda emphasized the company maintains strong, regular communication with its surety partners to support strategic project pursuits.

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Frank Renda, President & CEO, explained that the Civil segment's core work continues to produce strong double-digit margins, though quarterly results were impacted by an unfavorable ruling on a legacy project dispute. He also highlighted a key milestone on a Midwest bridge project, which de-risks the portfolio. Renda confirmed the company expects to complete the majority of non-M&P legacy work by the end of 2025. Cody Gallarda, EVP & CFO, projected strong cash flow from operations in 2025, likely weighted towards the second half of the year, driven by new core projects.

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EVP and CFO Cody Gallarda confirmed they expect a sequential revenue rebound in Q4. He advised against a straight-line model for the M&P burn-off, noting it will taper, and stated there are no specific cash settlement expectations for Q4 but significant inflows are anticipated in 2025. President and CEO Frank Renda added that the strategic shift involves focusing on core markets and bolt-on, higher-margin civil projects, supported by an overhauled procurement and risk assessment process.

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CFO Cody Gallarda explained that the low M&P revenue was an accounting adjustment from a settlement that lowered the project's percentage of completion, not an operational slowdown. He also mentioned the debt refinancing aims to preserve cash flow, potentially at a higher interest rate. CEO Frankie S. Renda acknowledged some higher-than-normal rain events but did not quantify a significant impact.

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President and COO Matthew Tobolski responded that feedback from the sales channel and bid activity indicates AAON's price premium has contracted by 1-2%, enhancing competitiveness. He noted that while current national account market share is low, it is accelerating significantly due to intentional efforts and the value proposition of the Alpha Class heat pump. Tobolski anticipates a meaningful impact in late 2025, with 2026 expected to be a major year for revenue conversion from these new national account programs.

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President and COO Matthew Tobolski indicated the order's margin profile would be in line with historical BASX margins from 2023, with potential upside as production scales. He confirmed the revenue will be reported within the Coil Products segment and will ramp up sequentially through Q1 and Q2 2025. He described the Memphis facility as roughly doubling the company's available square footage for data center products. CFO and Treasurer Rebecca Thompson clarified that the 24.9% annual effective tax rate is a baseline and does not imply a high Q4 rate; discrete items will likely result in a lower actual rate for the quarter.

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Executive Brian Harris stated that the company expects free cash flow to be greater than net income for the full year and anticipates a strong second half. Harris then detailed CPP demand, noting continued weakness in North America and the U.K., but good demand in Australia, supported by both organic growth and the Pope acquisition.

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Executive Brian Harris explained that the consumer weakness in North America was broad-based across all CPP product lines. He reiterated the company's long-term margin targets of 15% for CPP overall, which is a blend of 12% for Lawn & Garden and 20% for the Hunter Fan business. Regarding real estate, Harris noted that Griffon has about $5 million of held-for-sale assets remaining on its balance sheet, suggesting at least that much in future proceeds.

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Executive Brian Harris stated that CPP margin improvement will be gradual as inventory transitions, with an expected pace of increase in 2025 and 2026 similar to that seen in 2024. CEO Ronald Kramer explained the $1 billion free cash flow target is based on organic growth, sustained HBP margins, and benefits from the CPP sourcing initiative, with cash intended for share buybacks and deleveraging.

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Chairman and Interim CEO David King affirmed their comfort in the bidding environment, stating that opportunities remain strong and Primoris remains diligent on risk management. CFO Ken Dodgen commented that while they cannot predict the timing of legislation, they are mapping all scenarios with customers and feel prepared for any outcome.

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CFO Ken Dodgen reiterated that strong upfront payments, improved collections, and a $100 million cash pull-forward drove 2024 results, leading to a normalized 2025 cash flow forecast of $200-$225 million. He ranked end-market strength as: 1) Renewables, 2) Power Delivery, followed by 3) Communications and Natural Gas Generation. CEO Tom McCormick added that gas generation has a long-term, 5+ year tailwind.

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CFO William George stated that there is currently 'no sign of a let up in demand' for data centers and that the COVID period presented tougher challenges, which the company navigated successfully. He noted that while some suppliers have implemented minor price increases, the impact is not significant. CEO Brian Lane emphasized that Comfort Systems' large scale, strong balance sheet, and skilled workforce position it as a preferred contractor for complex projects, especially with potential onshoring trends. He concluded that the company's scale and experience are key differentiators in the current environment.

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CFO William George explained that while historically focused on pharmaceuticals, the modular business is now 80-90% dedicated to data center clients, though capacity is reserved for other verticals. CEO Brian Lane added that applications for hospitals and other areas have a long runway. Both confirmed that stick-built data center demand is also extremely robust. Regarding Century Contractors, George highlighted their complex piping capabilities as a strong strategic fit with existing operations in the region.

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CEO Brian Lane stated that current record margins result from a combination of pricing, high-level execution, technology application, and disciplined risk management, and he expects margins to remain in a similar range if market conditions hold. For project selection, Lane emphasized focusing on familiar work with long-term customers. CFO William George added that a key consideration is the project's impact on their employees, including the general contractor's quality and job site conditions, framing the strategy as "people first, partner second, profit third."

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CEO George Wilson acknowledged affordability constraints but believes falling interest rates will release pent-up demand. He suggested Europe may be further along in its recovery cycle, but North America could rebound faster. Wilson explained the new segments are structured around core manufacturing competencies, not end-markets, to foster broader growth opportunities and leverage operational strengths. CFO Scott Zuehlke confirmed the Q1 interest expense of $15 million will be the 'high watermark' for the year, as debt paydown is a priority.

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CEO George Wilson described the post-acquisition reception as extremely positive, highlighting similar corporate cultures and strong collaboration within the integration management office. Executive Scott Zuehlke confirmed the cost and operational downtime for the inventory count were factored into guidance and that the process will be streamlined in the future. Wilson added that Tyman has a higher SKU count due to its make-to-stock business model, compared to Quanex's typical make-to-order approach, and that ERP systems will be evaluated post-restructuring.

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