Justin Mechetti

Justin Mechetti, on behalf of Julio Romero, asked about NWPX Infrastructure's strategic interest in the Colorado market following the Boughton's Precast acquisition and the potential for further roll-up opportunities. He also inquired about any incremental demand from the private sector, specifically data centers, for NWPX's water infrastructure solutions.

Answer

President and CEO Scott Montross explained that Colorado's El Paso County is a significant growth market, aligning with NWPX's 'beachhead' strategy for single-plant acquisitions, though finding willing sellers remains a challenge. He noted that while WTS saw minor data center activity, the Precast segment, particularly Park USA, is heavily involved in approximately 12 data center-related projects, providing prepackaged water management solutions with favorable pricing and a focus on speed of delivery. He confirmed some of these projects were in the Q4 2025 order book.

Justin Mechetti asked about NWPX's interest in the Colorado market following the Boughton's acquisition, including potential roll-up opportunities. He also inquired about incremental demand from the private sector, specifically data centers, and NWPX's role in providing water infrastructure for such projects, and if these projects were included in the Q4 order book.

Answer

President and CEO Scott Montross explained that Colorado, particularly El Paso County, offers significant expansion and organic growth opportunities, though finding willing sellers for roll-up acquisitions remains a challenge. He highlighted the 'beachhead' strategy for market entry. For data centers, Scott noted limited WTS activity but significant Precast involvement, with about 12 projects (several million dollars) for pump lift stations, meter vaults, and wastewater solutions. He confirmed some data center projects were included in the Q4 order book, emphasizing the secrecy and good pricing/speed of delivery for these projects.

Justin Mechetti asked about specific geographic overlaps, such as the Pacific Northwest, where Gibraltar Industries anticipates commercial synergy opportunities following the OmniMax acquisition. He also inquired about the role of digitization investments in accelerating the integration process.

Answer

William Bosway, Chairman, President, and CEO, confirmed commercial synergy opportunities across multiple regions including the Pacific Northwest, Northeast, and parts of Texas, emphasizing a broader spread of cross-selling potential. He detailed digitization efforts, including stitching together data from SAP and Oracle for improved visibility across 39 locations, ensuring system reliability, and implementing common communication tools to enhance operational performance and integration.

Justin Mechetti asked about commercial synergy opportunities, specifically focusing on geographic overlap in the Pacific Northwest between Legacy Gibraltar and OmniMax, and the role of digitization investments in accelerating integration.

Answer

Chairman, President, and Chief Executive Officer Bill Bosway confirmed that commercial synergies are broad-spread, including the Pacific Northwest, Northeast, and parts of Texas, with teams actively identifying cross-selling opportunities. He detailed that digitization efforts involve stitching together data from Gibraltar's SAP and OmniMax's Oracle systems to gain immediate visibility into order intake, sales, and plant performance across all 39 locations, while also ensuring foundational IT stability and common communication systems.

Justin Mechetti, on behalf of John Franzreb at Sidoti & Company, LLC, asked for key takeaways from the PCMS users conference, specifically regarding customer feedback and the adoption of the new PCMS mobile platform. He also inquired about the demand from data center customers and how Mistras is positioned to serve this growing market.

Answer

CEO Natalia Shuman highlighted the PCMS conference's success, noting that customer feedback drove the development of new modules like digital twin modeling, contributing to the service's 30% revenue growth. She stated Mistras is well-positioned to serve data centers both directly with core NDT services and indirectly by supporting their power infrastructure. CFO Edward Prajzner added that the PCMS mobile platform is seeing rapid adoption as it enables faster data collection and analysis, which enhances customer connectivity and drives pull-through service revenue.

Justin Mechetti of Sidoti & Company, LLC, speaking on behalf of Julio Romero, sought specifics on which parts of the Tyman portfolio are yielding faster-than-expected cost synergies and requested clarification on the forward-looking run rate for D&A and intangible asset amortization.

Answer

SVP, CFO & Treasurer Scott Zuehlke identified procurement and corporate functions (finance, HR, IT, legal) as the primary areas where synergy realization has surpassed initial estimates. He also confirmed that the Q2 intangible amortization is a reasonable go-forward run rate and reiterated the full-year adjusted D&A guidance of approximately $60 million.

Justin Mechetti from Sidoti & Company, LLC asked for more detail on where in the Tyman portfolio cost synergies were realized ahead of schedule and sought clarification on the forward-looking run rate for D&A and intangible asset amortization.

Answer

Scott Zuehlke, SVP, CFO & Treasurer, identified procurement and corporate functions (such as finance, HR, and IT) as the primary areas where synergy realization surpassed initial estimates. He also confirmed that the Q2 intangible amortization of $6.5 million is a reasonable quarterly run rate and reiterated the full-year adjusted D&A guidance of approximately $60 million.

Justin Mechetti of Sidoti & Company, LLC asked for specifics on where in the Tymon portfolio cost synergies were realized ahead of schedule and sought clarification on the forward-looking run rate for depreciation and amortization (D&A).

Answer

SVP, CFO & Treasurer Scott Zuehlke identified procurement as the primary area for outperforming synergy targets, noting more opportunity was found than originally estimated. He added that corporate functions like finance, HR, and IT also contributed. Zuehlke confirmed that the Q2 intangible amortization is a decent go-forward run rate and that the full-year adjusted D&A guidance of approximately $60 million remains accurate.

Justin Mechetti from Sidoti & Company, LLC asked for more detail on where in the Tymon portfolio cost synergies are being realized faster than expected and sought clarification on the forward-looking run rate for D&A.

Answer

SVP, CFO & Treasurer Scott Zuehlke identified procurement as the primary area for outperformance on synergies, along with corporate functions like finance, HR, and IT. Regarding guidance, he confirmed that the Q2 intangible asset amortization is a decent go-forward run rate and that the full-year adjusted D&A guidance of approximately $60 million remains unchanged.

Justin Mechetti, on behalf of Julio Romero from Sidoti & Company, LLC, requested specifics on where in the Tyman portfolio cost synergies were realized faster than expected and sought clarification on the full-year guidance for depreciation and amortization (D&A).

Answer

Scott Zuehlke, SVP, CFO & Treasurer, clarified that the accelerated synergies were primarily from procurement and corporate functions like finance, HR, and IT. He also confirmed that the Q2 intangible asset amortization of $6.5 million is a good quarterly run rate and reaffirmed the full-year adjusted D&A guidance of approximately $60 million.

Justin Mechetti from Sidoti & Company, LLC, sought specifics on which parts of the Tyman portfolio contributed to the accelerated cost synergies and asked for clarification on the full-year guidance for depreciation and amortization (D&A).

Answer

Scott Zuehlke, SVP, CFO & Treasurer, identified procurement as the main driver for the increased synergy target, along with greater-than-expected savings in corporate functions like finance, HR, and IT. For D&A, he confirmed that the Q2 intangible asset amortization is a good quarterly run rate and reaffirmed the full-year adjusted D&A guidance of approximately $60 million.

Justin Mechetti inquired about the Tyman segment's adjusted EBITDA margin appearing low compared to the European segment, and asked how the new Jackson, Georgia facility strengthens Quanex's competitive position.

Answer

CEO George Wilson explained that the Tyman business is not directly comparable to the legacy European Fenestration segment because 60-70% of Tyman's operations are in North America, which influences its margin profile and seasonality. Regarding the Jackson facility, Wilson stated it was a strategic decision to better serve regional customers, reduce freight costs, and add capacity for mixing and compounding, which supports growth in adjacent markets like flashing tapes and solar products.