Justin Mechetti

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, 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, 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 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 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 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.