Manny Stoupakis

Manny Stoupakis from Geo Investments asked about the specific amount of one-time costs associated with the contract ramp-up and the Panama factory move in Q3 2025. He also inquired if the lower gross margins applied to both new food-grade contracts and if there was any potential data center angle for parts of the business.

Answer

Daniel O'Brien, President, CEO, CFO, CAO, and a Director, stated he would provide the exact one-time cost figures via email, but confirmed they were very significant and responsible for a large percentage of the Q3 loss. He clarified that both new food-grade contracts would have similar lower gross margins. O'Brien explicitly stated there was no data center angle for the business, but acknowledged that data centers use energy and often water, which could theoretically connect to water evaporation solutions if a connection were provided.

Manny Stoupakis inquired about AmeraMex's forward outlook, asking for guidance on Q3 revenue trends, the sustainability of the high-margin profile seen in Q2, the reasonableness of projecting specific quarterly revenue and EPS figures, and whether forward-looking visibility has improved beyond a single quarter.

Answer

CEO Lee Hamre responded that he expects Q3 revenue to be better than Q2 based on current business activity. He explained that while profit margins depend on acquiring used equipment at favorable prices, he anticipates Q3 margins could be equal to or better than Q2. Hamre confirmed the analyst's projection of $3.5M-$4M in quarterly revenue and $0.05-$0.07 in EPS is possible if trends continue, but noted that visibility remains limited due to uncertainty around the upcoming election.