Metallus Inc (MTUS) 2025 Q3 法說會逐字稿

Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to the 3rd quarter 2025 Metalus Inc. Earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. I would now like to turn the call over to Jennifer Beaman. Jennifer, please go ahead.

您好，感謝您的耐心等待。我叫蒂芬妮，今天將由我擔任你們的會議接線生。在此，我謹代表Metalus Inc.歡迎各位來到2025年第三季。財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講結束後，將進行問答環節。如果您想在此期間提問，只需按下星號鍵，然後按下電話鍵盤上的數字 1 即可。現在我將把電話交給珍妮佛·比曼。珍妮弗，請繼續。

Good morning and welcome to Metalis's 3rd quarter 2025 conference call. I'm Jennifer Beaman, director of communications and investor relations for Metalis. Joining me today is Mike Williams, Chief Executive Officer, Chris Westbrooks, President and Chief Operating Officer, John Zorennik, executive Vice President and Chief Financial Officer, and Kevin Rakettic, executive Vice President and Chief Commercial Officer.

早上好，歡迎參加Metalis 2025年第三季電話會議。我是 Jennifer Beaman，Metalis 公司的傳播與投資者關係總監。今天與我一同出席的有：執行長 Mike Williams、總裁兼營運長 Chris Westbrooks、執行副總裁兼財務長 John Zorennik 以及執行副總裁兼首席商務長 Kevin Rakettic。

You all should have received a copy of our press release which was issued last night. During today's conference call, we may make forward-looking statements as defined by the SEC. Our actual results may differ materially from those projected or implied due to a variety of factors which we described in greater detail in yesterday's release. Please refer to our SEC filings, including our most recent Form 10k and Form 10Q. And the list of factors included in our earnings release, all of which are available on the Vitalis website, where non-GAAP financial information is referenced. Additional details and reconciliations to its GAAP equivalent are also included in the earnings release. With that, I'd like to turn the call over to Mike. Mike.

你們都應該已經收到我們昨晚發布的新聞稿副本了。在今天的電話會議中，我們可能會發表符合美國證券交易委員會定義的前瞻性聲明。由於各種因素的影響，我們的實際結果可能與預測或暗示的結果有重大差異，我們在昨天的新聞稿中對此進行了更詳細的描述。請參閱我們向美國證券交易委員會提交的文件，包括我們最新的 10-K 表格和 10-Q 表格。我們收益報告中列出的各項因素，都可以在 Vitalis 網站上找到，該網站提供了非 GAAP 財務資訊。盈利報告中還包含了更多細節以及與 GAAP 等效值的調整表。那麼，我把電話交給麥克了。麥克風。

Good morning and thank you for joining us today. I want to start with safety. Throughout the year, we've been dedicated to our mission of being recognized as having the safest specialty metals operation in the world. In line with this mission, we continue to make substantial investments in the safety of our people. We remain on track to spend $5 million to further enhance our safety management systems and critical equipment this year.

早安，感謝各位今天收看我們的節目。我想先從安全問題談起。一年來，我們一直致力於實現我們的使命，成為世界上最安全的特種金屬作業企業。秉承這項使命，我們持續加大對員工安全的投入。我們仍將按計劃在今年投入 500 萬美元，以進一步加強我們的安全管理系統和關鍵設備。

To date in 2025 we've had zero serious injuries. These are events which are life threatening or life altering.

截至2025年，我們尚未發生任何嚴重傷亡事故。這些都是危及生命或改變生命的事件。

We have also had a 15% reduction in days away and restricted work cases and a 34% reduction in lost and restricted work days compared to the same period a year ago.

與去年同期相比，我們的缺勤天數和受限工作案例減少了 15%，損失和受限工作天數減少了 34%。

In October we successfully completed our planned annual maintenance shutdown at the Faircrest facility. These shutdowns are highly coordinated efforts involving collaboration between our teams and external contractors. Over the course of 9 days, we performed essential maintenance to ensure the 2026 reliability and performance of our melt shop assets.

10 月份，我們成功完成了 Faircrest 工廠的年度計畫維護停機檢修。這些停工停產是需要我們團隊和外部承包商密切合作的高度協調的行動。在9天的時間裡，我們進行了必要的維護，以確保我們的熔煉車間資產在2026年達到可靠性和性能標準。

Most importantly, I'm proud that the Faircrest shutdown was completed without any serious safety incidents. As a reminder, We will see additional shutdown activities in our other facilities in the late 4th quarter.

最重要的是，我感到自豪的是，Faircrest 的關閉工作順利完成，沒有發生任何嚴重的安全事故。再次提醒，我們將在第四季末對其他工廠進行額外的停產檢修。

Customer feedback continues to reaffirm the strength of our service and quality. We recently wrapped up our annual customer survey.

客戶的回饋不斷印證了我們服務和品質的優勢。我們最近完成了年度客戶調查。

And I'm pleased that over 97% of respondents said they would recommend Metalli products to others, a testament to the exceptional work our teams deliver every day.

令我欣慰的是，超過 97% 的受訪者表示他們會向他人推薦 Metalli 產品，證明了我們團隊每天的卓越成就。

As expected, the survey showed that most customers prefer buying steel made in the United States, and it's a key factor in their purchasing decision.

正如預期的那樣，調查顯示大多數顧客更喜歡購買美國製造的鋼材，這是他們購買決策中的關鍵因素。

We're seeing continued interest from both new and long standing customers who are actively shifting toward domestic supply chain solutions.

我們看到，無論是新客戶或舊客戶，都持續對國內供應鏈解決方案表現出濃厚的興趣，並積極轉向國內供應鏈解決方案。

So far in 2025 we've successfully sold to over two dozen new customers which will contribute to the future business growth. In addition, We saw a substantial year over year increase in our overall order backlog. Specifically, aerospace and defense backlog is up approximately 80% compared to a year ago. As we enter the final quarter of the year, we've begun our annual commercial contract negotiations.

截至目前，2025 年我們已成功向二十多位新客戶銷售產品，這將有助於未來的業務成長。此外，我們的整體訂單積壓量也比去年同期大幅成長。具體而言，航空航太和國防領域的積壓訂單比一年前增加了約 80%。隨著我們進入今年的最後一個季度，我們已經開始了年度商業合約談判。

Our goal remains to secure approximately 70% of our long products business through annual agreements.

我們的目標仍然是透過年度協議確保約 70% 的長材業務。

While we're in the midst of negotiations, customer conversations have been encouraging for 2026.

雖然我們仍在進行談判，但與客戶的溝通對 2026 年的前景令人鼓舞。

Now turning to business results for the 3rd quarter, despite shipments being down slightly from the second quarter, sales increased as a result of favorable product mix with continued expansion in the aerospace and defense and market.

現在來看第三季的業績，儘管出貨量比第二季略有下降，但由於航空航太和國防市場的持續擴張，產品組合有利，銷售額有所增長。

On a year over year basis, shipments in the 3rd quarter improved by 36%, driven by broad-based improvements across all end markets.

與去年同期相比，第三季出貨量成長了 36%，這主要得益於所有終端市場的全面改善。

Our current lead times extend to late January for our SPQ bars and February for our seamless mechanical tubing products.

目前，SPQ棒材的交貨週期最長可達一月下旬，無縫機械管材產品的交貨週期最長可達二月。

Adjusted EBITDA rose sequentially to $29 million driven by our growing participation in the aerospace and defense and market and stability across the other end markets. Additionally, higher levels of production during the quarter resulted in greater fixed cost leverage. Now let's cover some of the 3rd quarter highlights of our specific end markets.

經調整的 EBITDA 環比增長至 2,900 萬美元，這得益於我們在航空航太和國防市場參與度的提高以及其他終端市場的穩定性。此外，本季較高的產量水準也帶來了更大的固定成本槓桿效應。現在讓我們來看看我們各個終端市場第三季的一些亮點。

Industrial shipments decreased slightly in the 3rd quarter on a sequential basis.

第三季工業出貨量較上季略有下降。

Distribution customer inventories have improved but still remain lean and in line with demand.

分銷客戶的庫存有所改善，但仍偏低，與需求相符。

Several key customers have indicated plans to ramp up operations and are projecting stronger forecasts for 2026, while others remain cautious, closely monitoring year-end inventory levels. Automotive shipments increased slightly on a sequential basis. Key automotive cost demand was solid throughout the quarter, and we have not yet experienced any disruption due to global supply chain challenges.

一些主要客戶已表示計劃擴大營運規模，並對 2026 年的業績做出更樂觀的預測，而其他客戶則保持謹慎，密切關注年底庫存水準。汽車出貨量較上季略有成長。本季關鍵汽車成本需求保持穩健，我們尚未因全球供應鏈挑戰而受到任何影響。

Energy shipments remain at reduced volumes on a sequential basis, with import levels declining and tightened enforcement of tariffs. We are beginning to capture greater customer share for 2026. However, overall energy market conditions still remain subdued.

由於進口水準下降和關稅執行力度加強，能源出貨量較上季持續減少。我們正逐步擴大2026年的客戶份額。然而，整體能源市場狀況依然低迷。

Finally, higher shipments in aerospace and defense contributed to a favorable product mix this quarter.

最後，航空航太和國防領域出貨量增加，也為本季產品組合的良好表現做出了貢獻。

We continue to gain traction across both new and existing programs, all supporting our targeted annual A&D sales run rate of $250 million by mid-2026. In the quarter we added several new customer opportunities for our specialty bar and tubing products for applications including new munitions programs, gun barrels, and aerospace bearings. We also recently secured prototype orders with multiple customers that once fully commercialized, will utilize Metallis' carbon and specialty alloys in newer warheads and in rocket motor casings. These are applications where strength, efficiency, quality, and shorter lead times are critical.

我們在新專案和現有專案中持續取得進展，所有這些都支持我們在 2026 年年中實現 2.5 億美元的年度航空航太和國防銷售額目標。本季度，我們為特種棒材和管材產品新增了幾個客戶機會，這些產品可用於包括新型彈藥專案、槍管和航空航天軸承在內的應用領域。我們最近也與多家客戶獲得了原型訂單，一旦全面商業化，這些客戶將在新型彈頭和火箭引擎外殼中使用 Metallis 的碳合金和特殊合金。在這些應用中，強度、效率、品質和更短的交貨時間至關重要。

Today, Metalla supports several dozen defense programs with growth coming from both traditional prime contractors and emerging industry producers. We are on track with the construction of the bloom reheat and roller furnaces. Both assets will increase our capability and optimize our throughput. We remain optimistic about the future in the growing aerospace and defense market.

如今，Metalla 為數十個國防項目提供支持，其成長既來自傳統的主要承包商，也來自新興的產業生產商。我們正在按計劃推進鋼坯再加熱爐和輥式爐的建設。這兩項資產將提升我們的能力並優化我們的生產效率。我們對不斷發展的航空航太和國防市場的未來仍然保持樂觀。

Turning to another bright spot, we are focused on growing our participation in the vacuumar remount or VR steel product line.

再來看另一個亮點，我們正致力於擴大在真空重裝或 VR 鋼材產品線的市佔率。

We recently executed a long-term supply agreement with a trusted partner Bvar Steel, strengthening our strategic position and securing a reliable, high-quality material source to support ongoing sales and profit growth.

我們最近與值得信賴的合作夥伴 Bvar Steel 簽訂了長期供應協議，鞏固了我們的戰略地位，並確保了可靠的高品質材料來源，以支持持續的銷售和利潤成長。

Before I turn it over to John, I'd like to provide a brief update regarding our labor negotiations.

在把發言權交給約翰之前，我想先簡單報告我們勞資談判的最新進展。

As we announced on October 30th, members of our local USW voted not to ratify the tentative labor agreement we had reached with the union negotiating committee.

正如我們在 10 月 30 日宣布的那樣，我們當地 USW 的成員投票決定不批准我們與工會談判委員會達成的臨時勞動協議。

While we're disappointed by the outcome, we remain committed to securing a fair agreement. That supports our employees and aligns with Metallis' long-term strategic goals. The current contract has been extended by 90 days to January 29, 2026.

雖然我們對結果感到失望，但我們仍致力於達成公平的協議。這既有利於我們的員工，也符合 Metallis 的長期策略目標。現有合約已延長 90 天至 2026 年 1 月 29 日。

And we expect our operations to continue without disruption. We appreciate the support of our shareholders, the trust of our customers, and the dedication of our employees as we look forward to a stronger 2026. Now I'd like to turn the call over to John.

我們預計營運將持續進行，不會受到任何影響。我們感謝股東的支持、客戶的信任和員工的奉獻，並期待更強大的 2026 年。現在我想把電話交給約翰。

Thanks, Mike. Good morning and thank you for joining our 3rd quarter earnings call. During the quarter, our team delivered sequential increases in net sales, melt utilization, and profitability consistent with our earnings guidance. We also advanced our capital investments safely on budget and on schedule. As it relates to our top-line, third quarter net sales totaled $305.9 million a sequential increase of $1.3 million. Primarily driven by higher shipments in aerospace and defense and steady volume across auto and industrial markets, net income was $8.1 million in the third quarter, or $0.19 per diluted share. On an adjusted basis, net income was $12 million or $0.28 per diluted share. Adjusted EBITDA was $29 million in the third quarter, a sequential increase of 9%.

謝謝你，麥克。早安，感謝各位參加我們第三季財報電話會議。本季度，我們的團隊實現了淨銷售額、熔化利用率和獲利能力的環比成長，與我們的獲利預期一致。我們也按預算和計劃安全地推進了資本投資。就我們的營收而言，第三季淨銷售額總計 3.059 億美元，比上一季成長 130 萬美元。受航空航太和國防領域出貨量增加以及汽車和工業市場銷售穩定成長的推動，第三季淨收入為 810 萬美元，即每股攤薄收益 0.19 美元。經調整後，淨收入為 1,200 萬美元，即每股攤薄收益 0.28 美元。第三季調整後 EBITDA 為 2,900 萬美元，季增 9%。

Primarily driven by improved product mix and continued improvement in melt utilization, driving better fixed cost leverage, this marks the 4th consecutive quarter of sequential growth in both net sales and adjusted EBITDA, underscoring the consistency of our commercial execution, improving operations, sustained demand in our core markets, and our focus on growing in aerospace and defense. During the 3rd quarter, operating cash flow was $22 million. Primarily driven by profitability, partially offset by a slight increase in working capital needs to support the growing business. At the end of the third quarter, the company's cash and cash equivalent balance was $191.5 million inclusive of approximately $21 million of government funded cash on hand for future outlays as we finalize our capital projects funded by the US government.

主要得益於產品組合的改善和熔體利用率的持續提高，從而提高了固定成本槓桿率，這標誌著淨銷售額和調整後 EBITDA 連續第四個季度實現環比增長，凸顯了我們商業執行的穩定性、運營的改善、核心市場的持續需求以及我們對航空航天和國防領域增長的關注。第三季經營現金流為 2,200 萬美元。主要受獲利能力驅動，但部分被為支持業務成長而略微增加的營運資金需求所抵消。第三季末，公司現金及現金等價物餘額為 1.915 億美元，其中包括約 2,100 萬美元的政府資助現金，用於未來支出，因為我們正在完成由美國政府資助的資本項目。

In the third quarter, capital expenditures totaled $28.4 million including approximately $22 million of third quarter caps supported by previous government funding.

第三季資本支出總額為 2,840 萬美元，其中包括約 2,200 萬美元的第三季上限，該上限由先前的政府資金支持。

Planned capital expenditures for the full year of 2025 are approximately $120 million slightly lower than previous guidance due to timing of cash payments.

由於現金支付時間的原因，2025 年全年計畫資本支出約為 1.2 億美元，略低於先前的預期。

The 4 year CapEx guidance includes approximately $90 million of spending, which is funded by the US government, consistent with our previous guidance and the continued successful execution of the projects. As it relates to government funding, during the third quarter, the company received $10 million of cash from the government as part of the previously announced nearly $100 million funding agreement in support of the US Army's mission of increasing munitions production.

4 年資本支出指導包括約 9,000 萬美元的支出，這筆資金由美國政府提供，與我們先前的指導一致，且專案持續成功執行。就政府撥款而言，該公司在第三季從政府獲得了 1000 萬美元現金，這是先前宣布的近 1 億美元撥款協議的一部分，旨在支持美國陸軍增加彈藥生產的任務。

To date through the end of September, the company has received approximately $82 million of government funding, with an additional $4.1 million received in October. Receipt of the remaining committed government funding is expected in early 2026 as mutually agreed upon milestones are achieved.

截至 9 月底，該公司已收到約 8,200 萬美元的政府資金，10 月又收到 410 萬美元。預計在雙方商定的里程碑達成後，將於 2026 年初收到剩餘的政府承諾資金。

As a reminder, this funding will substantially pay for both the new bloom reheat furnace at the company's Faircrest facility and the new roller furnace at the Gambbrinas facility.

提醒大家，這筆資金將主要用於支付公司位於費爾克雷斯特工廠的新球團再加熱爐和位於甘布里納斯工廠的新輥式爐的費用。

In terms of shareholder return activities, in the third quarter, the company repurchased 178,000 shares of common stock for $3 million. At the end of September, a balance of $90.9 million remained under our share repurchase authorization.

在股東回報活動方面，該公司在第三季以 300 萬美元的價格回購了 17.8 萬股普通股。截至9月底，我們的股票回購授權帳戶中還剩餘9,090萬美元。

Since the inception of common share repurchases in early 2022 combined with the convertible note repurchase activities, we've reduced the looted shares outstanding by a significant 25%, or 13.5 million shares, compared to the fourth quarter of 2021. These actions reflect the strength of the company's balance sheet and the confidence in through cycle cash flow generation.

自 2022 年初開始回購普通股，並結合可轉換票據回購活動以來，與 2021 年第四季相比，我們已將已收回的股份減少了 25%，即 1,350 萬股。這些措施反映了公司穩健的資產負債表以及對持續現金流產生的信心。

As it relates to liquidity, total liquidity remains strong at $437 million and no outstanding borrowings as of September 30th, 2025.

就流動性而言，截至 2025 年 9 月 30 日，總流動性依然強勁，達到 4.37 億美元，且無未償還借款。

Turning to our near term business outlook, commercially, 4th quarter shipments are expected to be 5 to 10% lower than the 3rd quarter, primarily due to normal year-end seasonality and customers' potential global supply chain challenges. Base price per ton is anticipated to increase slightly as we realize the previously announced bar and tube price increases of 5% that will take effect through the fourth quarter.

展望近期業務前景，從商業角度來看，第四季度出貨量預計將比第三季下降 5% 至 10%，主要原因是正常的年末季節性因素以及客戶可能面臨的全球供應鏈挑戰。預計每噸基準價格將略有上漲，因為先前宣布的棒材和管材價格上漲 5% 將在第四季度生效。

Product mix is expected to be less favorable than the 3rd quarter due to the mix of sales within the industrial and aerospace and defense markets, which is primarily timing related.

由於工業、航空航太和國防市場的銷售組合（這主要是由時間因素造成的），預計產品組合將不如第三季有利。

In summary, commercially we expect lower shipments and slightly weaker product mix compared to Q3, slightly offset by increased base price per ton, but the net impact is expected to be a $2 to $3 million adjusted EBITDA sequential headwind.

總而言之，我們預計商業出貨量將低於第三季度，產品組合也將略有下降，每噸基本價格的上漲將略微抵消這些影響，但預計淨影響將導致調整後 EBITDA 環比下降 200 萬至 300 萬美元。

From an operational perspective, annual shutdown maintenance in the fourth quarter will be approximately $11 million a sequential increase of approximately $8 million from the third quarter.

從營運角度來看，第四季年度停機維護費用約為 1,100 萬美元，比第三季季增約 800 萬美元。

The planned annual shutdown maintenance timing and the normal 4th quarter commercial seasonality will result in a decrease in melt utilization from the 72% achieved in the third quarter and is anticipated to result in a sequential decrease in fixed cost leverage of approximately $3 million.

計劃中的年度停機維護時間和正常的第四季度商業季節性將導致熔煉利用率從第三季的 72% 下降，預計這將導致固定成本槓桿率環比下降約 300 萬美元。

And finally, depending on the status and timing of a new labor agreement, we could also face additional labor and benefit costs that could result in a sequential 4th quarter cost increase. Given these elements, the company expects the 4th quarter adjusted EBITDA to be lower than the 3rd quarter, primarily driven by our normal year-end seasonality, planned annual shutdown maintenance costs and timing, and a few potential customer global supply chain challenges.

最後，根據新的勞動協議的狀況和時間，我們還可能面臨額外的勞動力和福利成本，這可能會導致第四季度成本環比增加。鑑於這些因素，該公司預計第四季度調整後 EBITDA 將低於第三季度，主要原因是正常的年末季節性因素、計劃中的年度停機維護成本和時間安排，以及一些潛在的客戶全球供應鏈挑戰。

As compared to the 4th quarter of 2024, we expect adjusted EBITA to improve slightly.

與 2024 年第四季相比，我們預計調整後的 EBITA 將略有改善。

To wrap up, thank you to all of our employees, customers, and suppliers for their support. We're well positioned for a successful 2026 and beyond as a high-quality US based specialty metals producer supporting critical markets.

最後，感謝我們所有的員工、客戶和供應商的支持。作為一家總部位於美國的高品質特種金屬生產商，我們為關鍵市場提供支持，因此我們已做好充分準備，迎接 2026 年及以後的成功。

We remain committed to delivering value to our shareholders by driving profitable growth and executing our capital allocation strategy. As always, thank you for your interest in Metalus.

我們將繼續致力於透過推動獲利成長和執行資本配置策略，為股東創造價值。一如既往，感謝您對Metalus的關注。

We would now like to open the call for questions.

現在我們開始接受提問。

(Operator instruction)

（操作說明）

John Franrep with Sidoti and Company.

John Franrep 與 Sidoti and Company 合作。

Good morning, everyone, and thanks for taking the questions.

各位早安，感謝大家回答問題。

I, I'd like to start with the automotive business. It was up nicely on a year to year basis and last quarter you talked about, regaining share domestically. I'm curious if that's the case, and I have a follow-up to that when you answer it.

我想先從汽車產業入手。與去年同期相比，業績成長良好，正如你上個季度所說，國內市場份額正在重新奪回。我很想知道是否真是如此，等你回答之後，我還有一些後續問題。

Sure, John, thanks for asking the question. Yeah, I mean, if you look at the platforms that we're on, those are the typically, the SUVs, trucks, etc. That continue to sell at a decent rate and they actually, The auto companies were giving us a forecast that They thought the quarter would be lower, but that didn't materialize, so, people are still buying vehicles, they're still having to build transmissions and motors, etc.

當然，約翰，謝謝你提問。是的，我的意思是，如果你看看我們所處的平台，那些通常是SUV、卡車等等。這些車輛繼續以不錯的速度銷售，而且實際上，汽車公司之前預測本季銷量會下降，但這種情況並沒有發生，所以人們仍在購買汽車，他們仍然需要生產變速箱和引擎等等。

To supply those vehicles and that, that's our sweet spot. So, we'll see how the 4th quarter develops. We do expect seasonality from them and then there are some risks of some supply chains in the 4th quarter. Their supply chains disrupting.

供應這些車輛，那就是我們的優勢所在。所以，我們拭目以待第四季的發展。我們預計這些產品會受到季節性因素的影響，而且第四季度某些供應鏈也存在一些風險。他們的供應鏈出現了中斷。

Potentially vehicle production at the level that we saw in Q3.

汽車產量有可能達到第三季的水平。

Does that answer your question?

這樣回答了你的問題嗎？

Yeah, and when you reference supply chains, you said actually you said global, so I'm curious, are you referencing specifically the Ford problems, or is there something more to it?

是的，當你提到供應鏈時，你說的是全球供應鏈，所以我很好奇，你指的是福特的問題，還是有其他原因？

Well, it That there's concern or at least there's been public voice concern over chip supply and other issues with their supply chain. So, but yeah, Ford is the one that stands out because we've seen a lot of that in the public.

嗯，確實有人擔心，或者至少公眾已經表達了對晶片供應和供應鏈其他問題的擔憂。所以，沒錯，福特之所以脫穎而出，是因為我們在公眾面前看到了許多這樣的例子。

Press reporting.

新聞報道。

Okay, and regarding the $3 to $5 million that you expected to incur, with the labor negotiations, how much did you, incur in the third quarter, relative to your expectations?

好的，關於您預計因勞資談判而產生的 300 萬至 500 萬美元費用，您在第三季實際產生的費用與您的預期相比是多少？

Barely nothing except for our costs to negotiate.

除了談判費用之外，幾乎沒有其他費用。

A lot of those 3 to 5 is tied on the final negotiations, so more to come yet on that.

3到5名候選人中有很多人在最終談判中勢均力敵，所以這方面還有更多消息要公佈。

Fair enough And have you seen any impact, from the tariffs, we talked a little bit last quarter that there was kind of a wait and see status. I wonder if you've seen customers gravitate more to reacting to the, tariff environment and maybe another thought on that is, does the government shutdown, impact maybe the A&D business at all.

好吧。那麼，關稅方面，您是否看到了任何影響？我們上個季度也稍微談過，當時的情況是觀望態度。我想知道您是否注意到客戶越來越傾向於對關稅環境做出反應，或許還可以考慮一下，政府停擺是否會對航空航天和國防業務產生任何影響。

No, we've seen no A&D impact.

不，我們沒有看到航空航太與國防領域受到任何影響。

That this is the number one priority is national security, and they need the volumes of munitions and weapons programs supplied, so no, we've not seen any impact on that.

首要任務是國家安全，他們需要大量的彈藥和武器項目供應，所以，不，我們沒有看到這方面受到任何影響。

What was the first part of your question?

你問題的第一部分是什麼？

Any, impact on tariffs, the customers, last quarter you kind of said there was a wait and see.

任何對關稅和客戶的影響，上個季度你都表示要觀望。

Actually, I mean the tariff environment has been favorable to us. We were taking.

實際上，我的意思是關稅環境對我們有利。我們正在拍攝。

New customers we've seen new customers come in and we've seen a tremendous amount of inquiry activity for 2026 where more people are trying to.

我們看到新客戶湧入，我們看到 2026 年的諮詢活動非常活躍，越來越多的人正在嘗試。

Position of domestic supply chain as you as you heard us in our comments. So from a commercial sales perspective it has been fairly pos pretty positive. It's just the rate of speed in which that domestic awards are made, but there is a negative in the fact that we are seeing some tariff impacts on certain materials that we purchase offshore.

正如您在我們評論中聽到的那樣，國內供應鏈的地位。所以從商業銷售的角度來看，結果相當正面。問題在於國內授標的速度，但不利的一面是，我們看到一些從海外購買的材料受到了關稅的影響。

For our operating supplies and manufacturing.

用於我們的營運和生產。

Okay, I'll get back into you. Thanks for taking the question, Mike.

好的，我稍後會再跟你說。謝謝你回答這個問題，麥克。

Thanks John.

謝謝你，約翰。

Bill Gibbs with Key Bank Capital Markets.

基伊銀行資本市場部的比爾·吉布斯。

Hey, thanks very much. Good morning.

嘿，非常感謝。早安.

Hey Like the And I know you talked a little bit about that with the with the last question, but.

嘿，就像……我知道你在上一個問題中稍微談到了這一點，但是……

What are exactly the global supply chain challenges you're mentioning? Is that more so.

您具體指的是哪些全球供應鏈挑戰？確實如此。

Is that more so with automotive and Ford, or is there more to it? Just wanted some context.

這種情況在汽車產業，尤其是福特汽車產業更為普遍嗎？還是另有其他因素？我只是想了解一下背景狀況。

No, I mean there's been information out there that we've been told that there is concern over again some chip supply. Of course, the impact of the Ford F-150 with the aluminum supply domestically. So those are the kind of things that. We're aware of, we haven't seen that impact yet, but that's a potential going forward, so we just wanted to put it out there.

不，我的意思是，有消息稱，人們再次對一些晶片供應感到擔憂。當然，福特F-150對國內鋁供應的影響也是不容忽視的。所以，就是這類事情。我們已經意識到這一點，雖然還沒有看到這種影響，但這是未來可能出現的情況，所以我們想把它提出來。

I mean, it's H1stly, it's just a timing issue, so you know whatever.

我的意思是，首先，這只是個時間問題，所以你知道的，隨便你。

Whatever they don't produce, they will produce because they'll want to meet sales targets and etc. For 2026.

無論他們不生產什麼，他們都會生產，因為他們想要完成銷售目標等等。2026年。

Got it. And With your commentary of improved year over year EBITDA in the 4th quarter, does this contemplate any of the potential employee contract negotiations, or would that be separate to that commentary?

知道了。您提到第四季度 EBITDA 年比有所改善，這是否考慮到了潛在的員工合約談判，還是說這與上述評論無關？

Well, I'm not quite clear what your question is.

我不太明白你的問題是什麼。

We've identified if we do get a contract settlement in the fourth quarter, we're going to see those outline costs that John referenced in his, comments.

我們已經確定，如果我們在第四季度達成合約和解，我們將會看到約翰在他的評論中提到的那些初步成本。

And we didn't quantify it yet, but I think there would be potentially some additional cost. It really depends on the timing.

我們還沒有量化這筆費用，但我認為可能會有一些額外的成本。這主要取決於時機。

Yeah, it's all about timing.

沒錯，一切都取決於時機。

I mean right now we have an extension until January twenty-ninth. We just, we're going to work hard to negotiate a fair and equitable contract in align with our longer, longer-term strategic objectives.

我的意思是，目前我們已經延期到1月29日。我們將努力協商一份公平合理的合同，以符合我們更長遠的戰略目標。

Thank you.

謝謝。

Thanks Bill.

謝謝你，比爾。

Dave Storms with Stonegate.

Dave Storms 與 Stonegate 合作。

Morning and thank you for taking my questions.

早上好，感謝您回答我的問題。

Want to start.

想開始。

The energy and good morning, want to start with energy and market here. What do you see as a potential for volumes to rebound over 2026?

大家早安，我想先從這裡的能源和市場談起。您認為到 2026 年銷售反彈的可能性有多高？

Well, I mean, I, a lot of it's driven by the price of oil and overall global demand, right?

嗯，我的意思是，很多時候都是由石油價格和全球整體需求驅動的，對吧？

And I think there are some other influencing factors like, what sanctions and how effective sanctions against Russian oil are.

我認為還有其他一些影響因素，例如對俄羅斯石油的製裁措施及其有效性。

And would that increase, domestic production in, North America. And then, we would be, we most likely would benefit from that increased production. Higher oil prices tend to drive increased production too.

那是否會提高北美地區的國內產量？那麼，我們很可能會從產量增加中受益。油價上漲往往也會刺激產量增加。

Other areas where as these LNG plants come on over the next couple of years that they're building, that'll drive gas consumption, pipelines, etc. Or or natural gas production.

在其他地區，隨著未來幾年正在建設的液化天然氣工廠陸續投產，這將推動天然氣消費、管道建設等的發展。或天然氣生產。

Etc. To feed the global markets that they're targeting, that's all positive stuff for, but that takes time.

ETC。為了滿足他們瞄準的全球市場的需求，這當然都是好事，但這需要時間。

We are seeing where we're actually probably where we're seeing potential increases in 2026 is.

我們現在看到的可能是，2026年潛在的成長點在哪裡。

That energy and market has historically procured a lot of SPQ into offshore and those tariffs, are starting to affect their thinking and their buying.

從歷史上看，能源和市場已經將大量 SPQ 輸送到海外，而這些關稅正在開始影響他們的想法和購買行為。

Strategy. So we've seen a tremendous amount of inquiries for 2026 for our energy and markets and customers.

戰略。因此，我們收到了大量關於 2026 年能源、市場和客戶的諮詢。

Understood. That's very helpful. Turn into your order book, just curious as to how you feel it's tracking relative to this point last year. I know you mentioned you want to be about 70% booked going into the year. Do you feel like you're on pace to meet that goal relative to last year, or, just maybe where do things stand there?

明白了。那很有幫助。翻翻你的訂單簿，我只是好奇你覺得它與去年同期相比進展如何。我知道你曾說過希望年初的預訂率能達到70%左右。你覺得今年能否依計畫實現目標，與去年相比如何？或者，你覺得目前的狀況如何？

Yeah, we, we're pretty strong believers that we're going to get to that 70%, could be a little bit higher depending on the pricing landscape. We are seeing customers telling us, not every customer, but some key customers telling us their internal production forecast for next year are going up. And we see them asking for more volume for 2026. So we're very happy about that and we look forward to delivering an even better 2026.

是的，我們非常有信心能夠達到70%的目標，根據價格情勢，這個數字可能會更高一些。我們看到一些客戶告訴我們，雖然不是所有客戶都這樣，但一些重要的客戶告訴我們，他們明年的內部生產預測正在上調。我們看到他們要求在 2026 年增加產量。我們對此感到非常高興，並期待在 2026 年取得更大的成就。

Understood that's very helpful and then just maybe one more for me, I know last quarter we talked about, energy input prices, and that you were working on a new negotiation there would just love to hear where that stands, going into the new year.

明白了，這很有幫助。那麼，我可能還有一個問題。我知道上個季度我們討論過能源投入價格，您當時正在就此進行新的談判，我很想知道在新的一年裡，談判進展如何。

I think the biggest one is electrical energy and we had a long-term contract that expired in May of this year and we had to go to market, I can tell you that prices, market prices changed significantly for the time of that really nice electrical energy contract we had.

我認為最大的變化是電力能源，我們之前簽訂的長期合約在今年五月到期，我們不得不進入市場。我可以告訴你，在我們簽訂那份非常優惠的電力能源合約期間，市場價格發生了顯著變化。

So yeah, we, and we've been transparent that we're seeing cost increases on our electrical energy purchases. We currently have A 2 year agreement for a large portion of our requirements, but there is a small portion that's exposed to market pricing.

是的，我們一直坦誠地表示，我們的電力能源採購成本正在上漲。目前我們已就大部分需求簽訂了為期兩年的協議，但仍有一小部分需求會受到市場價格的影響。

And we'll watch that very closely. We have many projects in the pipeline to work on reducing our our electrical energy consumption, and let alone also increase our efficiency of production with how much electrical or kilowatt per ton we use and. On the natural gas side, we're purchased forward for, 70 to 80% of our needs for next year and we actually are probably around 5 years at various supply requirements, but we're an active, buyer in the market and, we look, we're very op opportunistic. So we look for the best competitive prices we get and position ourselves for the best cost in those unit prices for both electricity and natural gas.

我們會密切關注此事。我們有很多項目正在籌備中，旨在降低我們的電力能源消耗，更不用說提高我們的生產效率，降低我們每噸產品使用的電力或千瓦時數了。在天然氣方面，我們已經提前購買了明年所需天然氣的 70% 到 80%，實際上，我們可能已經儲備了未來 5 年的各種供應需求，但我們是市場上的積極買家，而且，我們非常善於把握機會。因此，我們會尋找最具競爭力的價格，並努力在這些電力和天然氣的單位價格中獲得最佳成本。

Yeah, and Dave, real quick, one thing to add to that what Mike was saying on electricity is, if you recall at the end of Q2 we said $2 to $3 million of sequential cost increase, that's what we experienced. So we kind of guided that and that's what we saw, and that's aligned with the contract that we've lined up for the next 2 years.

是的，戴夫，我還要補充一點，關於麥克剛才提到的電力問題，如果你還記得我們在第二季末說過成本將環比增加 200 萬至 300 萬美元，而我們確實經歷了這種情況。所以我們引導了這一方向，我們也看到了這一點，這與我們為未來兩年​​制定的合約相符。

Understood. That's great commentary.

明白了。這是很棒的評論。

Thank you for taking my questions. Good luck for Q4.

謝謝您回答我的問題。祝您第四季一切順利。

Hey, thanks, Dave.

嘿，謝謝你，戴夫。

John, French rep withdod and Company.

John，法國代表 withdod 和公司。

Yeah, I'm just curious about the CapEx spend. You dropped it down a little bit this year. What does next year's look like?

是的，我只是對資本支出狀況比較好奇。你今年稍微降低了一些。明年會是什麼樣子？

Well, we're in the planning phases of that right now. The reason why we dropped down the forecast is it's all about timing. It's tied to, completion of work as well as payment terms tied to after that completion and how long before we have to pay them. So it's all a timing issue. On the, for 2026, we're in the planning phases right now, John, so we'll talk more to that early next year.

嗯，我們目前正處於規劃階段。我們下調預測的原因是，一切都取決於時機。這與工作的完成情況以及工作完成後的付款條款有關，也與我們必須在多長時間內付款有關。所以，這完全是時機問題。關於 2026 年，約翰，我們目前正處於規劃階段，所以我們將在明年初更多地討論這個問題。

Okay, and if I recall, you brought in a third-party to help you maybe with your floor operations. Any kind of progress you can report about that and how that's going?

好的，如果我沒記錯的話，你引入了第三方來幫助你處理一些現場運營方面的事情。關於這方面，您能報告一下進展嗎？

Yeah, we're very pleased with the progress, and you're going to start to see those results, throughout the remainder of this year. The project's not over, but we're very pleased with the outcomes, the findings, the improvements that they're assisting with, and helping my team, implement them. This project goes on until late March, so a lot of those benefits will be really will be realized in 2026.

是的，我們對目前的進展非常滿意，在今年剩下的時間裡，你們將會開始看到這些成果。專案尚未結束，但我們對成果、發現、改進措施以及他們幫助我的團隊實施這些改進措施感到非常滿意。該計畫將持續到三月下旬，因此許多效益要到 2026 年才能真正實現。

That's actually helpful, and I guess lastly, on the new A&D Awards, maybe any additional color you want to provide and maybe the timing of revenue recognition or material revenue recognition, from those jobs.

這確實很有幫助，最後，關於新的 A&D 獎項，也許您想提供一些額外的顏色信息，以及這些項目的收入確認時間或實質性收入確認時間。

Yeah, we're starting to actually see some of that now, particularly in the VR vim sales that continues to grow, which is, just value creation for this company, and that's only going to continue to grow in 2026. We expect the munitions to continue to build a demand build as some of the downstream supply chain issues get resolved throughout the end of this year and early next year. And then we're getting awarded and, as we commented earlier, a number of new programs, weapons programs, gun barrel programs, aircraft, bearings, etc.

是的，我們現在確實開始看到一些這樣的跡象，尤其是在VR Vim銷售額持續成長方面，這為公司創造了價值，而且到2026年，這種成長勢頭還將繼續。我們預計，隨著今年底和明年初一些下游供應鏈問題的解決，軍火需求將持續成長。然後我們獲得了獎勵，正如我們之前提到的，還有許多新項目，包括武器項目、槍管項目、飛機、軸承等等。

That demand and the realization of that value growth is really going to materialize in 2026, in my view, at a, a notable rate. And like we said, our objective overall was to achieve or exceed a run rate of $250 million a year of revenue, and we're very confident that we'll hit at least that in 2020, by mid 2026.

在我看來，這種需求和價值成長的實現將在 2026 年以顯著的速度真正實現。正如我們所說，我們的總體目標是實現或超過每年 2.5 億美元的營收，我們非常有信心在 2020 年或 2026 年年中至少達到這個目標。

Perfect.

完美的。

Thank you for taking my follow-ups. I appreciate it.

感謝您回覆我的後續問題。謝謝。

Hey, thanks, John.

嘿，謝謝你，約翰。

That concludes our question-and-answer session. I will now turn the call back over to Jennifer Beaman for closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給詹妮弗·比曼，請她作總結發言。

Thank you.

謝謝。

All.

全部。

For joining today, and that concludes Our call.

感謝大家今天的參與，我們的通話到此結束。

Ladies and gentlemen, this concludes today's call.

女士們、先生們，今天的電話會議到此結束。

Thank you all for joining. You may now disconnect.

感謝各位的參與。您現在可以斷開連線了。