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    Martin Englert • Seaport Research Partners

    Martin Englert's questions to Reliance Inc (RS) leadership

    Martin Englert's questions to Reliance Inc (RS) leadership • Q2 2025

    Question

    Martin Englert from Seaport Research Partners inquired about the Q3 2025 guidance, asking if the expected pressure on FIFO gross margin implies sequential weakness or a continuation of Q2 levels. He also sought clarification on the conservative tone of the guidance, customer feedback regarding the tariff environment, and the expected duration of the inventory overhang in the commercial aerospace supply chain.

    Answer

    President and CEO Karla Lewis clarified that the Q3 guidance reflects normal seasonal demand weakness but is more conservative on gross profit margin due to Q2's unique dynamics, where tariff uncertainty compressed margins despite price increases. She stated this pressure is likely temporary and expressed confidence once trade issues are resolved. Lewis also highlighted continued strength in non-residential construction, driven by data centers, schools, and airports. Regarding aerospace, she confirmed an inventory overhang and anticipates activity will increase once Boeing's higher build rates flow through the supply chain.

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    Martin Englert's questions to Reliance Inc (RS) leadership • Q1 2025

    Question

    Martin Englert asked about Reliance's exposure to import tariffs within its Cost of Goods Sold (COGS) and Capital Expenditures (CapEx), the long-term influence of tariffs on CapEx strategy, customer conversations around reshoring, and any observed red flags in demand or supply chains.

    Answer

    Executive Karla Lewis explained that with over 95% of metal sourced domestically, direct COGS exposure to tariffs is very limited. For CapEx, a small portion of specialized equipment is imported, and the company is actively working with suppliers to mitigate tariff impacts. Lewis stated that while tariffs are a factor, the primary driver for CapEx remains supporting customer needs, so no major strategic shift is expected. She also confirmed an increase in customer conversations about reshoring and noted that despite general market uncertainty, customer confidence in Reliance's supply capabilities remains strong.

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    Martin Englert's questions to Reliance Inc (RS) leadership • Q4 2024

    Question

    Martin Englert from Seaport Research Partners asked about the drivers of recent demand activity, questioning whether it was due to seasonal gains, a pull-forward ahead of tariffs, or a genuine cyclical recovery. He also inquired about which end markets might show momentum in 2025 and the potential impacts of trade policy on Reliance's business and the broader supply environment.

    Answer

    Karla Lewis, an executive, stated that Reliance's volumes were steady through 2024, outperforming the industry, and that the company anticipates continued momentum in 2025, particularly in general manufacturing, infrastructure, data centers, and the electrical grid. Executive Stephen Koch added that January activity was strong and acknowledged some customer pull-forward due to potential tariffs. Regarding policy, Karla Lewis noted that historically, tariffs have led to higher domestic prices, which has been a positive for Reliance.

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    Martin Englert's questions to Worthington Steel Inc (WS) leadership

    Martin Englert's questions to Worthington Steel Inc (WS) leadership • Q3 2025

    Question

    Martin Englert inquired about the impact of recent tariff policies, the cause of the quarterly loss at the TWB joint venture, and the expected timeline for underlying unit EBITDA to normalize. He also asked for details on the fixed cost impact from lower volumes and the performance of the Serviacero joint venture.

    Answer

    CEO Geoff Gilmore stated that tariffs would have very little impact on the business due to their localized purchasing strategy, with the main effect being a temporary jump in steel prices. CFO Tim Adams clarified the TWB loss was due to one-off charges, including an R&D write-off and an early retirement program, not inventory holding issues. Adams noted that EBITDA normalization is tied to market demand uncertainty but expressed cautious optimism for a return to more normal run rates by the end of the calendar year. He attributed Serviacero's performance to demand compression, peso exchange rate movements, and minor inventory holding losses.

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    Martin Englert's questions to Worthington Steel Inc (WS) leadership • Q2 2025

    Question

    Martin Englert of Seaport Research Partners inquired about the industries of the customers associated with the bad debt expense and reserve increase, the potential business impact of a new U.S. administration and trade tariffs, and whether management is seeing any 'green shoots' or early signs of improving activity in its end markets.

    Answer

    President and CEO Geoffrey Gilmore clarified the reserve increase was for a scrap dealer and the bankruptcy was in the heavy truck industry, stating both were customer-specific issues, not signs of broader industry weakness. Regarding potential tariffs, Gilmore expressed little concern, citing the company's local sourcing model and historical ability to navigate policy changes. VP and CFO Timothy Adams provided an outlook, expecting a stable auto market, positive construction trends, challenges in agriculture, and a late-year pickup in heavy truck. Gilmore added that auto recovery could accelerate with lower interest rates and pointed to strong November vehicle sales as a positive data point, but does not anticipate a significant demand pull-forward from customers ahead of potential tariffs.

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    Martin Englert's questions to Worthington Steel Inc (WS) leadership • Q1 2025

    Question

    Martin Englert from Seaport Research Partners inquired about the dynamics in the automotive market, including slower new model ramp-ups, the shift from direct sales to tolling, and whether underlying EBITDA has normalized. He also asked about demand and availability for galvanized products and the potential impact of trade cases.

    Answer

    CEO Geoff Gilmore and COO Jeffrey Klingler attributed the automotive volume dip to model changeover delays, a customer's commercial strategy reset, and a tough comparison to the prior year's strike-related pull-ahead. Gilmore also explained the shift to tolling was driven by customer preference in galvanizing and tailor-welded blanks. CFO Tim Adams confirmed that Q1's underlying EBITDA is more representative of a normalized mix. Regarding galvanized products, Gilmore noted stable demand and that the company has open capacity to capture potential new volume from trade cases.

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    Martin Englert's questions to Ferroglobe PLC (GSM) leadership

    Martin Englert's questions to Ferroglobe PLC (GSM) leadership • Q4 2024

    Question

    Martin Englert asked for clarification on the 2025 guidance, questioning if the $100 million low end is achievable at current spot prices and what volume assumptions are included. He also requested a breakdown of the French energy credit recognized in 2024 and the amount factored into the 2025 outlook.

    Answer

    CEO Marco Levi confirmed the low end of the guidance is achievable even with current conditions, citing expected improvements in product mix and volume recovery in the second half of the year, with total 2025 volumes projected to be similar to 2024. Chief Financial Officer Beatriz García-Cos Muntañola detailed the 2024 French energy credit, noting a total of $61 million for the year with a $24 million P&L impact in Q4. She added that the 2025 credit will be lower.

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    Martin Englert's questions to Ferroglobe PLC (GSM) leadership • Q3 2024

    Question

    Martin Englert of Seaport Research Partners asked for clarification on the margin compression and fixed cost absorption issues in the silicon-based alloy segment. He also sought details on the new U.S. ferrosilicon import tariffs, their expected market impact, and specifics regarding new contracts in the U.S. and the Middle East.

    Answer

    CEO Marco Levi explained that margin compression in European silicon-based alloys is due to weak demand and a flood of low-priced imports, driving prices to a four-year low. This, combined with flat U.S. demand, led to production cuts and higher unabsorbed fixed costs. CFO Beatriz García-Cos added this segment benefited less from the French energy agreement. Regarding tariffs, Levi noted the duties on Russian imports were significant and final, while decisions on Brazil, Kazakhstan, and Malaysia are pending. He confirmed two new U.S. contracts and a new silicon metal deal in the Middle East tied to a 100,000-ton polysilicon plant.

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    Martin Englert's questions to Nucor Corp (NUE) leadership

    Martin Englert's questions to Nucor Corp (NUE) leadership • Q4 2024

    Question

    Martin Englert asked about the underlying assumptions for raw material costs in the Q1 outlook and Nucor's view on February ferrous scrap price movements. He also asked which downstream products were expected to see sequential volume gains in Q1.

    Answer

    CEO Leon Topalian suggested that scrap pricing might see a slight increase on stronger demand before moderating in the coming months. Executive John Hollatz identified the joist and deck business as having the largest backlog increase, while other downstream businesses were expected to have volumes similar to the previous quarter, accounting for seasonality.

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    Martin Englert's questions to Nucor Corp (NUE) leadership • Q3 2024

    Question

    Martin Englert inquired about the drivers behind the expected decrease in Q4 steel conversion costs despite lower volumes, and asked about Nucor's coating capabilities and strategy for lighter gauge markets following the recent trade case filing.

    Answer

    Executive Dave Sumoski explained that while a major drop isn't expected in Q4, conversion costs will improve as greenfield projects ramp up, increasing utilization and reducing start-up expenses. CEO Leon Topalian and executive Noah Hanners detailed the strategy to expand coated products to 35-40% of the mix, moving up the value chain to meet growing demand for value-added products and serve evolving regional needs with new capabilities in thinner gauge and higher strength steel.

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    Martin Englert's questions to Steel Dynamics Inc (STLD) leadership

    Martin Englert's questions to Steel Dynamics Inc (STLD) leadership • Q3 2024

    Question

    Martin Englert of Seaport Research Partners inquired about the staffing for the new aluminum project and the current state of the labor market, as well as recent pricing trends in the steel fabrication backlog.

    Answer

    CEO Mark Millett confirmed that the aluminum project's management team is fully staffed with a solid blend of industry veterans and internal leaders, noting the labor market in Columbus is more favorable than what was experienced in Sinton. CFO Theresa Wagler addressed fabrication, stating that while normal seasonality is expected in Q4, she anticipates price appreciation in 2025 driven by moderating interest rates and public funding.

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