Worthington Steel Inc (WS) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by.

女士們、先生們，感謝你們的支持。

My name is Krista, and I will be your conference operator today.

我叫克里斯塔，今天我將擔任您的會議主持人。

At this time, I would like to welcome everyone to Worthington Steel's Second Quarter 2025 Earnings Conference Call.

現在，我歡迎大家參加沃辛頓鋼鐵公司 2025 年第二季財報電話會議。

(Operator Instructions)

（操作員指令）

And I would now like to turn the conference over to Melissa Dykstra, Vice President, Corporate Communications, and Investor Relations.

現在，我想將會議交給企業傳播和投資者關係副總裁梅麗莎·戴克斯特拉 (Melissa Dykstra)。

Melissa, you may begin.

梅麗莎，你可以開始囉。

Thank you, operator.

謝謝您，接線生。

Good morning, and welcome to Worthington Steel's second quarter fiscal year 2025 earnings call.

早安，歡迎參加沃辛頓鋼鐵 2025 財年第二季財報電話會議。

On our call today, we have Geoff Gilmore, Worthington Steel's President, and Chief Executive Officer; and Tim Adams, Vice President, and Chief Financial Officer.

今天我們電話會議的嘉賓是沃辛頓鋼鐵公司總裁兼執行長 Geoff Gilmore；以及副總裁兼財務長 Tim Adams。

Before we begin, I'd like to remind everyone that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act.

在我們開始之前，我想提醒大家，今天發表的某些聲明根據 1995 年《私人證券訴訟改革法案》的規定具有前瞻性。

These statements are subject to risks and uncertainties that could cause actual results to differ from those suggested.

這些聲明受風險和不確定性的影響，可能導致實際結果與建議的結果不同。

We issued our earnings release yesterday after the market closed.

我們昨天在市場收盤後發布了收益報告。

Please refer to it for more detail on the factors that could cause actual results to differ materially.

有關可能導致實際結果產生重大差異的因素的更多詳細資訊請參閱。

Unless noted, as reported, today's discussion will reference non-GAAP financial measures, which adjust for certain items included in our GAAP results and which are presented on a standalone basis.

除非另有說明，如上所述，今天的討論將參考非 GAAP 財務指標，這些指標根據我們 GAAP 結果中包含的某些項目進行調整，並以獨立方式呈現。

You can find definitions of each non-GAAP measure and GAAP to non-GAAP reconciliations within our earnings release.

您可以在我們的收益報告中找到每個非 GAAP 指標的定義以及 GAAP 與非 GAAP 的對帳。

Today's call is being recorded and a replay will be available later today on worthingtonsteel.com.

今天的通話正在錄音，重播將於今天晚些時候在 worthingtonsteel.com 上提供。

Now I'll turn it over to Geoff Gilmore.

現在我將把話題交給傑夫吉爾摩 (Geoff Gilmore)。

Thanks, Melissa.

謝謝，梅麗莎。

Good morning, everyone, and thank you for joining us.

大家早安，感謝大家的收看。

As we celebrate our first full year of being a publicly traded standalone company, I am pleased to report we generated solid quarterly earnings despite some sizable headwinds and uncertainty across a number of end markets.

在我們慶祝成為獨立上市公司一周年之際，我很高興地報告，儘管一些終端市場面臨巨大的阻力和不確定性，但我們仍然實現了穩健的季度收益。

In the second quarter, we generated adjusted EBITDA of $30.6 million compared with $23 million in the prior year quarter.

第二季度，我們的調整後 EBITDA 為 3,060 萬美元，而去年同期為 2,300 萬美元。

Earnings per share came in at $0.25 versus a loss of $0.12 per share in the same period last year.

每股收益為 0.25 美元，而去年同期每股虧損 0.12 美元。

Results were impacted by both lower volumes and lower average selling prices for the quarter.

本季業績受到銷量下降和平均售價下降的影響。

There were several highlights this quarter as Worthington Steel continue to work safely, implement our strategy, reach new milestones, and earn accolades as a best place to work.

本季度，沃辛頓鋼鐵公司繼續安全生產、實施我們的策略、達到新的里程碑並贏得最佳工作場所的讚譽，取得了許多亮點。

Last month, we named Cliff Larivey, President of Flat-Roll Steel Processing, separating this role from Jeff Klingler's COO position.

上個月，我們任命 Cliff Larivey 為扁鋼加工總裁，將該職位與 Jeff Klingler 的營運長職位分開。

Cliff's work leading our commercial and purchasing teams has strengthened our partnerships with customers and suppliers.

克利夫領導我們的商業和採購團隊的工作加強了我們與客戶和供應商的合作關係。

This move recognizes Cliff's leadership strength and the talented team he built and allows Jeff Klingler to sharpen his focus on our growing global business operations.

此舉是對 Cliff 的領導實力和他所打造的優秀團隊的認可，並使 Jeff Klingler 能夠更加專注於我們不斷增長的全球業務運營。

Further, Worthington Steel continues to make strides implementing our strategy.

此外，沃辛頓鋼鐵公司在實施我們的策略方面繼續取得進展。

Earlier this month, we made a move toward growing our high value-added business through selective acquisitions when we announced our agreement to acquire a 52% stake in Sitem Group.

本月初，我們宣布同意收購 Sitem 集團 52% 的股份，此舉標誌著我們透過選擇性收購來發展高附加價值業務。

Sitem strengthens our presence in Europe, which is vital to growing our electrical steel lamination business.

Sitem 加強了我們在歐洲的影響力，這對我們電工鋼層壓業務的成長至關重要。

Europe remains a high-growth market for electric vehicles.

歐洲仍然是電動車的高成長市場。

And it is expected that by 2030, 80% of the vehicles produced in Europe will be battery electric or hybrids.

預計到 2030 年，歐洲生產的 80% 的汽車將是電池電動或混合動力汽車。

Like Tempel, Sitem stamps laminations for both automotive and industrial motors.

與 Tempel 一樣，Sitem 也為汽車和工業電機沖壓鐵芯。

More importantly, Sitem gives Worthington access to world-class tool and die making and significant expertise in press automation, which we will be able to leverage across our electrical steel plants.

更重要的是，Sitem 讓 Worthington 能夠獲得世界一流的工具和模具製造能力以及壓力機自動化方面的豐富專業知識，我們將能夠在我們的電工鋼工廠中充分利用這些知識。

Sitem is one of the largest and most respected electrical steel lamination producers in Europe.

Sitem 是歐洲最大、最受尊敬的電工鋼片生產商之一。

And this partnership provides an expanded footprint required for our long-term success.

此次合作將為我們的長期成功提供更廣闊的前景。

Bringing together our compatible cultures and best practices allows us to fulfill customer expectations and solidify our global presence in electrical steel laminations.

將我們相容的文化和最佳實踐結合在一起，使我們能夠滿足客戶的期望並鞏固我們在電工鋼片領域的全球影響力。

We expect this transaction to close in early 2025 after regulatory approvals and customary closing conditions.

我們預計此交易將在獲得監管部門批准和滿足慣例成交條件後於 2025 年初完成。

I am excited to begin serving our customers with the combined expertise of our Tempel and Sitem Group employees.

我很高興能夠利用 Tempel 和 Sitem Group 員工的綜合專業知識來為我們的客戶服務。

Rounding out our strategy is transformation, our system of continuous improvement.

我們的策略完善之處在於轉型，以及我們的持續改善系統。

The transformation mindset drives our employees to always look for ways to improve quality and service, find efficiencies, free-up capacity and eliminate unnecessary costs.

轉型思維驅使我們的員工始終尋找改善品質和服務、提高效率、釋放產能和消除不必要成本的方法。

This is an ongoing process for Worthington Steel.

對沃辛頓鋼鐵公司來說，這是一個持續的過程。

And in the second quarter, we saw teams come together to reduce scrap, streamline purchasing processes and more efficiently manage our IT contractors.

在第二季度，我們看到各個團隊齊心協力減少廢品、簡化採購流程並更有效地管理我們的 IT 承包商。

The transformation mindset often carries over to our interactions with customers.

轉型思維常常延續到我們與客戶的互動中。

Over the quarter, we developed an analytics tool to help both Worthington Steel and a key customer improve inventory control and order lead times, thereby reducing inventory.

本季度，我們開發了一款分析工具，幫助沃辛頓鋼鐵公司和一個主要客戶改善庫存控制和訂單交付週期，從而減少庫存。

On the new product front, we continue to receive interest from customers about new capabilities at TWB using our licensed ablation technology and are filling our pipeline of potential opportunities.

在新產品方面，我們繼續收到客戶對 TWB 使用我們授權的消融技術的新功能的興趣，並正在填補我們的潛在機會管道。

The equipment is being installed and tested and we remain on schedule.

設備正在安裝和測試，一切都按照計劃進行。

I'd like to thank our teams for all they do each quarter to support the Worthington Steel strategy.

我要感謝我們的團隊每季為支持沃辛頓鋼鐵戰略所做的一切。

We rounded out the period with significant momentum in other areas of our business.

我們在該期間的其他業務領域也取得了顯著的發展勢頭。

In October, we released our first corporate citizenship and sustainability report, highlighting key achievements such as a safety record nearly two times better than the industry average, a decrease in carbon emissions and the support of 73 non-profit organizations through The Worthington Companies Foundation.

十月份，我們發布了第一份企業公民和永續發展報告，強調了我們取得的關鍵成就，例如安全記錄幾乎比行業平均水平高出兩倍、碳排放量減少以及透過沃辛頓公司基金會獲得73 個非營利組織的支持。

Our ESG approach is based on our philosophy of doing the right thing for our employees, customers, suppliers, shareholders and communities and we work hard each day to improve our efforts.

我們的 ESG 方法是基於為員工、客戶、供應商、股東和社區做正確的事情的理念，我們每天都在努力改進我們的努力。

We were named a Military Friendly Employer for the 10 year in a row by the Victory organization.

我們連續十年被勝利組織評為「軍事友好雇主」。

Workforce development and a commitment to our military members and veterans is incredibly special to me, and this was a proud moment for our company.

勞動力發展和對軍人和退伍軍人的承諾對我來說非常特別，這對我們公司來說是一個值得驕傲的時刻。

Another accolade for Worthington Steel as an employer was announced just last week when Computerworld included our company in its annual list of Top Places to Work in IT.

就在上週，沃辛頓鋼鐵公司作為雇主榮獲了另一項殊榮，《電腦世界》將我們公司列入了其年度「IT 領域最佳工作場所」名單。

Our IT team deserves special recognition this year.

我們的 IT 團隊今年值得特別表揚。

The team separated infrastructure, end user business applications and security systems as we became a standalone public company and kicked off the ERP implementation at Tempel, all while working to improve every day and ensuring our day-to-day IT-dependent operations perform.

當我們成為一家獨立的上市公司並在 Tempel 啟動 ERP 實施時，團隊將基礎設施、最終用戶業務應用程式和安全系統分開，同時努力每天進行改進並確保我們日常依賴 IT 的營運順利進行。

Yesterday, we added a new member to our Board of Directors.

昨天，我們的董事會增加了一位新成員。

Scott Kelly brings a great background in operations in the energy industry and adds a new and diverse voice to our Board.

斯科特凱利 (Scott Kelly) 在能源行業運營方面擁有豐富的背景，為我們的董事會增添了新的和多樣化的聲音。

I'm pleased to welcome him to Worthington Steel, and I look forward to working with him.

我很高興歡迎他加入沃辛頓鋼鐵公司，並期待與他合作。

As I mentioned earlier, we saw some sizable headwinds during the quarter in several markets, including automotive, construction and heavy truck.

正如我之前提到的，我們在本季看到多個市場面臨相當大的阻力，包括汽車、建築和重型卡車。

Some of these headwinds may persist for the next few quarters, especially in the automotive market.

其中一些不利因素可能會在未來幾季持續存在，尤其是在汽車市場。

Looking ahead, we are cautiously optimistic about this segment as OEMs make moves to adjust their commercial strategy and rebuild market share.

展望未來，隨著原始設備製造商採取措施調整其商業策略並重建市場份額，我們對此領域持謹慎樂觀的態度。

The headwinds could be offset by lower interest rates and lower inflation.

較低的利率和較低的通膨可能會抵消這些不利因素。

We saw some positive signs in November when overall US vehicle sales reached their highest levels since May of 2021.

11 月我們看到了一些積極的跡象，美國汽車整體銷量達到了 2021 年 5 月以來的最高水平。

Lower interest rates and decreasing inflation also provide positive momentum for the construction market.

較低的利率和較低的通貨膨脹也為建築市場提供了積極的動力。

We continued to expect moderate growth in the construction market areas we supply, such as data centers and manufacturing in calendar year 2025.

我們繼續預計，到 2025 年，我們所供應的建築市場領域（例如資料中心和製造業）將適度成長。

We expect heavy truck to remain relatively slow in the first half of calendar year 2025, but we believe regulatory requirements will help fuel growth in the second half of the year and into 2026.

我們預計重型卡車在 2025 年上半年將保持相對緩慢的成長，但我們相信監管要求將有助於推動下半年和 2026 年的成長。

Overall, we are feeling positive about the tailwinds as we enter our second year as a standalone publicly traded company.

總體而言，隨著我們作為獨立上市公司進入第二年，我們對順風感到樂觀。

We have already accomplished so much in a relatively short period of time.

我們在相對較短的時間內已經取得瞭如此多的成就。

We have strong customer relationships, an experienced leadership team and a sound strategy.

我們擁有強大的客戶關係、經驗豐富的領導團隊和完善的策略。

We have an amazing team of employees with a strong commitment to safety and we are recognized consistently as the best place to work.

我們擁有一支出色的員工團隊，他們對安全有著強烈的承諾，我們一直被公認為最佳工作場所。

I'm grateful and energized every day to work with everyone on the Worthington Steel team.

我每天都充滿感激並充滿活力地與沃辛頓鋼鐵團隊的每個人一起工作。

Now I'll turn things over to Tim Adams to discuss financials.

現在我將把話題交給提姆亞當斯討論財務問題。

Thank you, Geoff, and good morning, everyone.

謝謝你，傑夫，大家早安。

Before I provide some color on the quarter, I would like to remind everyone that the current year quarter consolidated results on a standalone basis are compared with a prior year quarter which was prepared on a carve-out basis.

在我介紹本季的情況之前，我想提醒大家，本年度季度的獨立合併業績是與去年同期以剝離基礎編制的業績進行比較的。

For the second quarter, we are reporting earnings of $12.8 million or $0.25 per share as compared with a $6 million loss or $0.12 per share in the prior year quarter.

我們報告第二季度收益為 1280 萬美元，即每股 0.25 美元，而去年同期虧損 600 萬美元，即每股 0.12 美元。

There were several unique items that impacted our quarterly results, including the following.

有幾個獨特因素影響了我們的季度業績，其中包括以下幾點。

The current quarter results included recognition of a pre-tax non-cash gain of $2.7 million or $0.04 per share associated with the annuitization of a portion of the frozen Tempel pension plan.

本季業績包括確認與部分凍結的 Tempel 退休金計畫年金化相關的 270 萬美元或每股 0.04 美元的稅前非現金收益。

Additionally, we recognized a pre-tax gain of $1.5 million or $0.02 per share related to the sale of excess land in China.

此外，我們也確認了與出售中國多餘土地相關的 150 萬美元或每股 0.02 美元的稅前收益。

The prior year results included pre-tax separation expense of $14.9 million or $0.23 per share.

上一年的業績包括稅前分離費用 1,490 萬美元，即每股 0.23 美元。

Excluding these unique items, we generated earnings of $0.19 per share in the current year quarter compared with $0.11 per share in the prior year quarter.

除這些獨特項目外，我們本季的每股收益為 0.19 美元，而去年同期的每股收益為 0.11 美元。

In addition, in the second quarter, we had estimated pre-tax inventory holding losses of $13.4 million or $0.20 per share compared to estimated pre-tax inventory holding losses of $34.8 million or $0.53 per share in the prior year quarter, a favorable pre-tax swing of $21.4 million or $0.33 per share.

此外，在第二季度，我們預計稅前庫存持有損失為1,340 萬美元，即每股0.20 美元，而去年同期預計稅前庫存持有損失為3,480 萬美元，即每股0.53 美元，這是一個有利的預估。

In the second quarter, we reported adjusted EBIT of $14.3 million, which was up $7.7 million from the prior year quarter adjusted EBIT of $6.6 million.

在第二季度，我們報告的調整後息稅前利潤為 1,430 萬美元，比去年同期的調整後息稅前利潤 660 萬美元增加了 770 萬美元。

This increase is primarily due to higher gross margin, partially offset by higher SG&A expense and lower equity earnings at Serviacero.

這一增長主要歸因於毛利率提高，但被 Serviacero 的銷售、一般及行政開支提高和股權收益降低部分抵消。

Gross margin was impacted by higher direct material spreads, including the impact of lower year-over-year pre-tax inventory holding losses, partially offset by lower direct volume.

毛利率受到直接材料價差上升的影響，包括去年同期稅前庫存持有損失下降的影響，但直接銷售下降部分抵消了這一影響。

SG&A increased $7 million over the prior year second quarter, primarily due to incremental costs associated with being a standalone company as well as an increase in bad debt expense associated with the bankruptcy of a customer and an increase in our reserves associated with a separate customer.

銷售、一般及行政費用較去年同期第二季增加了 700 萬美元，主要原因是作為獨立公司產生的成本增加，以及與客戶破產相關的壞帳費用增加和與單獨客戶相關的準備金增加。

Additionally, the company incurred higher than normal professional fees, most of which were associated with the announced pending European acquisition.

此外，該公司還產生了高於正常的專業費用，其中大部分與宣布的即將進行的歐洲收購有關。

Equity earnings from Serviacero decreased due to lower direct spreads, which were unfavorably impacted by lower steel prices as well as the impact of exchange rate movements.

由於直接利差較低，Serviacero 的股權收益出現下降，而鋼材價格下跌以及匯率變動對其產生了不利影響。

Next, I will provide some content on the market and our shipments.

接下來，我將提供一些有關市場和我們的出貨量的內容。

Since July, the market pricing for hot-rolled coil has fluctuated in a relatively tight band between $650 and $700 per ton.

自7月以來，熱軋捲板市場價格一直在每噸650美元至700美元之間相對窄幅波動。

With little movement in market pricing, we expect minimal estimated inventory holding gains in the third quarter of fiscal 2025 as compared with the $13.4 million of estimated holding losses in the second quarter of 2025.

由於市場價格變動不大，我們預計 2025 財年第三季的預期庫存持有收益將很小，而 2025 年第二季的預期持有損失為 1,340 萬美元。

Net sales in the quarter were $739 million, down $69 million or 9% from the prior year quarter, primarily due to lower direct volumes and lower direct market pricing.

本季淨銷售額為 7.39 億美元，較去年同期下降 6,900 萬美元，降幅 9%，主要原因是直接銷售量下降和直接市場定價下降。

We shipped approximately 936,000 tons during the quarter, which was down 3% compared with the prior year quarter.

本季我們出貨量約為 936,000 噸，與去年同期相比下降了 3%。

Direct sales volume made up 55% of our mix in the current year quarter as compared with 56% in the prior year quarter.

本季直銷量占我們銷售產品的 55%，去年同期為 56%。

Direct sales volume was down 5% over the prior year quarter with shipments down in most markets.

直接銷售量較去年同期下降 5%，大多數市場的出貨量均下降。

Our shipments to the automotive market were down 2% compared to the prior year quarter.

我們對汽車市場的出貨量與去年同期相比下降了 2%。

As you know, the Detroit Three Automakers represent approximately 30% of our net sales.

如您所知，底特律三大汽車製造商約占我們淨銷售額的 30%。

The decrease in automotive volume was primarily due to deeper than expected production cuts at one of those customers as they attempted to right size their inventory levels and reset their commercial strategy.

汽車產量下降主要是因為其中一位客戶試圖調整庫存水準並重新設定商業策略，導致產量削減幅度超出預期。

The OEM production cuts continued to increase as the quarter progressed.

隨著季度的進展，OEM 產量削減幅度持續增加。

On a year-over-year basis, for the second quarter, we experienced a volume decrease of more than 30% with that customer, mirroring the customer's estimated decrease in unit production.

與去年同期相比，第二季該客戶的銷售量下降了 30% 以上，與該客戶預期的單位產量下降相吻合。

We are monitoring the situation very closely as the OEM navigates their challenges and we believe they could return to a more normal build schedule within the next two quarters.

我們正在密切關注 OEM 應對挑戰的情況，我們相信他們可以在接下來的兩個季度內恢復更正常的生產計劃。

As we have done in prior years, we are working closely with our partners throughout the entire automotive supply chain to prepare for increased volume requirements as the OEM ramps back up.

正如我們前幾年所做的那樣，我們正在與整個汽車供應鏈中的合作夥伴密切合作，為 OEM 恢復生產後增加的產量需求做好準備。

The vast majority of the year-over-year decrease in our automotive shipments were offset by increases in volume with the other automotive OEMs.

我們的汽車出貨量年減大部分被其他汽車原始設備製造商的銷售成長所抵銷。

We have noted over the past few quarters that we have won new programs and increased our share in the automotive market.

我們注意到，過去幾個季度我們贏得了新的項目並增加了我們在汽車市場的份額。

We are beginning to see the volume impact of some of those new programs.

我們開始看到一些新項目對數量的影響。

Our shipments to the remaining Detroit Three increased by more than 30%.

我們對其餘底特律三巨頭的出貨量增加了 30% 以上。

Our strategy continues to be collaborating with our automotive customers to find mutually beneficial solutions that help them meet their strategic goals.

我們的策略是繼續與汽車客戶合作，找到互惠互利的解決方案，幫助他們實現策略目標。

We look forward to continuing our partnership with our automotive customers.

我們期待與我們的汽車客戶繼續合作。

Turning to the construction market.

轉向建築市場。

Our volumes decreased 20% on a year-over-year basis.

我們的銷量較去年同期下降了 20%。

The decrease was a combination of several factors.

這種下降是多種因素共同作用的結果。

First, in the prior year, we successfully pivoted to a more construction-heavy mix as we prepared for the potential automotive strike at the Detroit Three.

首先，去年，我們成功地將業務重點轉向建築業，為可能出現的底特律三巨頭汽車業罷工做好準備。

Second, in the current year, we anticipated a more typical mix between automotive and construction.

其次，今年我們預期汽車和建築之間的組合將更加典型。

However, as I mentioned, we experienced sudden and deep cuts to our automotive order book.

然而，正如我所提到的，我們的汽車訂單突然大幅減少。

Both the timing and the magnitude of those cuts limited our ability to secure replacement volume in other markets.

減產的時間和幅度都限制了我們在其他市場確保替代產量的能力。

Toll tons were down 1% year-over-year, primarily due to lower coated volumes, partially offset by an increase in pickling and tailor welded blanks.

收費噸位年減 1%，主要原因是塗層產量下降，但被酸洗和拼焊板產量增加部分抵消。

Turning to cash flows and the balance sheet.

轉向現金流和資產負債表。

Cash flow from operations was $68 million and free cash flow was $33.2 million.

經營現金流為 6,800 萬美元，自由現金流為 3,320 萬美元。

During the quarter, we spent $34.8 million on capital expenditures related to a variety of projects, including the previously announced electrical steel expansions.

本季度，我們在各種項目相關的資本支出上花費了 3,480 萬美元，包括先前宣布的電工鋼擴建項目。

We now expect capital expenditures for fiscal 2025 to be approximately $125 million versus our previous estimate of $110 million.

我們現在預計 2025 財年的資本支出約為 1.25 億美元，而先前預計為 1.1 億美元。

We are increasing the estimate for fiscal 2025 CapEx for several reasons.

基於多種原因，我們提高了 2025 財年資本支出的預期。

First, we now expect a larger portion of the CapEx for our Canada expansion to be spent in fiscal 2025 rather than fiscal 2026.

首先，我們現在預計加拿大擴張的資本支出中很大一部分將在 2025 財年而不是 2026 財年支出。

This is simply a change in timing.

這只是時間上的改變。

Second, as we talked about in the past, we expect other projects to come up during the course of any fiscal year.

第二，正如我們過去談到的，我們預計在任何財政年度內都會出現其他項目。

For example, we are adding a new press to our electrical steel facility in China to support new business.

例如，我們正在為位於中國的電工鋼工廠添加一台新壓機，以支援新業務。

In addition, as part of the previously mentioned Tempel ERP system, we have elected to upgrade our shop floor system and data warehouse to maximize the future opportunities for process improvements using the transformation.

此外，作為前面提到的 Tempel ERP 系統的一部分，我們選擇升級我們的車間系統和資料倉儲，以最大限度地利用未來轉型改善流程的機會。

On a trailing 12-month basis, we generated $79.4 million of free cash flow.

在過去 12 個月中，我們產生了 7,940 萬美元的自由現金流。

Wednesday, we announced a quarterly dividend of $0.16 per share payable on March 28, 2025.

週三，我們宣布季度股息為每股 0.16 美元，將於 2025 年 3 月 28 日支付。

We ended the quarter with $52 million of cash and our ABL debt at November 30 was $115 million, resulting in net debt of $63 million.

本季結束時，我們的現金為 5,200 萬美元，截至 11 月 30 日的 ABL 債務為 1.15 億美元，導致淨債務為 6,300 萬美元。

Finally, I would like to thank our team for making safety the highest priority at every facility and for delivering incredible performance in our first year as a public company.

最後，我要感謝我們的團隊將每個設施的安全放在首位，並在我們上市的第一年就取得了令人難以置信的業績。

I am proud to be part of Worthington Steel and look forward to working with our entire team to continue driving value for all stakeholders.

我很自豪能夠成為沃辛頓鋼鐵公司的一員，並期待與我們整個團隊合作，繼續為所有利害關係人創造價值。

At this point, we would be happy to take your questions.

現在，我們很樂意回答您的問題。

(Operator Instructions) Phil Gibbs, KeyBanc Capital Markets.

（操作員指示）Phil Gibbs，KeyBanc 資本市場。

Geoff, the EBITDA per ton ex inventory holding gains and losses I think was down about $26 a ton sequentially, certainly not something we were expecting.

傑夫，我認為扣除庫存持有損益後的每噸 EBITDA 比上一季下降了約 26 美元，這肯定不是我們所預期的。

I know you guys have been managing your profitability within a pretty tight range.

我知道你們一直在將獲利能力控制在一個相當嚴格的範圍內。

What made it drop off so abruptly sequentially in particular?

是什麼導致它在接下來的過程中出現如此突然的下降？

I know you did give some color, but what were some of the biggest, I guess, impacts to that?

我知道您確實給了一些細節，但我猜想，對此最大的影響是什麼？

And when should we expect you guys to get back to some of the levels, we're more used to?

我們什麼時候才能期望你們恢復到我們更習慣的程度？

Thanks for the question, Phil.

謝謝你的提問，菲爾。

I'm actually going to pass that to Tim to answer for you.

我實際上要把這個問題交給提姆來回答你。

Phil, I think it's the three drivers.

菲爾，我認為有三位司機。

Whether it's sequential or year-over-year, I think the three big drivers, number one is volume.

無論是環比還是同比，我認為有三大驅動因素，第一是數量。

We would have expected volume on a sequential basis to be down 2% to 3% and it was actually down 7%.

我們原本預計銷量將較上季下降 2% 至 3%，但實際上卻下降了 7%。

And what we outlined with the D3 customer, that was unexpected.

我們向 D3 客戶概述的內容是出乎意料的。

And if that would occur over a long period of time, you could take a look at your operating expense and everything would be variable.

如果這種情況持續很長一段時間，你可以看看你的營運費用，一切都是可變的。

But the way the production cuts came in, they came fast and furious and kept expanding over the course of the quarter.

但減產幅度來得又快又猛，並且在本季不斷擴大。

Most of our costs are fixed at that point.

我們的大部分成本在那時就已經固定了。

The other two drivers are SG&A, which we touched on.

另外兩個驅動因素是銷售、一般及行政費用，我們之前已經提過。

We had an increase in bad debt as well as the professional fees associated with the Sitem transaction.

我們的壞帳以及與 Sitem 交易相關的專業費用都有所增加。

Now that transaction is not closed yet, but the fees came in.

現在交易尚未結束，但是費用已經到了。

And then finally, performance at Serviacero.

最後，在 Serviacero 進行演出。

So, you've got a couple of things happening down there.

所以，那裡發生了幾件事。

You've got volume, you've got some spread compression plus the FX gains that occur -- FX losses, I should say, rather than gains.

你有交易量，你有價差壓縮，加上發生的外匯收益——我應該說是外匯損失，而不是收益。

So those are really the drivers.

這些才是真正的驅動因素。

And then when you guys highlighted the bad debt expense from the customer bankruptcy and the increased reserve and then also the professional fees, any way to square up the magnitude of those three items?

然後，當你們強調客戶破產造成的壞帳費用和增加的準備金以及專業費用時，有沒有辦法平衡這三個項目的金額？

Sure.

當然。

I mean, I think if you look at that, bad debt expense -- let me start with -- our credit group does a fantastic job.

我的意思是，我認為如果你看一下壞帳費用——讓我先說一下——我們的信貸小組做得非常出色。

I'll just start with that.

我就從那開始吧。

They work hand-in-hand with our commercial group.

他們與我們的商業集團密切合作。

So, we take that very seriously.

因此，我們對此非常重視。

We've got an outstanding track record, and we rarely have bad debt write-offs.

我們有著出色的業績記錄，很少有壞帳註銷。

But two things that happened in the quarter, the unexpected bankruptcy of one of our customers, that was probably about $1 million, maybe a little bit less.

但本季發生了兩件事，我們的一個客戶意外破產，損失大概在 100 萬美元左右，也可能略少一些。

And then we elected to reserve a little over $1 million for a second customer where we think collection of that specific receivable is at risk.

然後，我們選擇為第二位客戶預留略高於 100 萬美元的款項，因為我們認為該特定應收帳款的收回有風險。

So, we review -- as you would guess, we review AR on a customer-by-customer basis every quarter.

因此，正如您所猜測的，我們每個季度都會根據每個客戶的情況對 AR 進行審查。

We don't think beyond this quarter we should have any additional issues from a collectability standpoint.

我們認為，從可收集性的角度來看，本季之後我們不應該再出現任何其他問題。

But if you add those two up, it's about $2 million.

但如果將兩者加起來，總額約 200 萬美元。

And then the professional fees?

那麼專業費用呢？

I'm sorry.

對不起。

Professional fees, probably about $2 million, give or take.

專業費用大概是200萬美元左右。

Any reason you guys didn't carve those out similar to the other items that you did or is some of that expected to recur as you take on Sitem or should that wind down as the transaction gets closer to close?

你們沒有將這些項目像其他項目一樣剝離出來，有什麼原因嗎？ 或者在你們接管 Sitem 時，其中一些項目預計會再次出現，或者是否應該在交易接近結束時逐漸減少？

Yes, we typically -- I mean, that's kind of normal course of business, right?

是的，我們通常——我的意思是，這是一種正常的業務流程，對吧？

Those are normal things versus the pension lift out or the gain on the sale of land.

與退休金增加或土地出售收益相比，這些都是正常現象。

These things are kind of normal course.

這些都是很正常的事。

We're looking at acquisitions all the time.

我們一直在尋找收購機會。

And we're going to have transaction expenses whether the transaction goes through or not.

無論交易是否成功，我們都會產生交易費用。

So we don't expect those to reoccur.

因此我們不希望這些事情再次發生。

And then lastly, as you guys look out into the early part of next year, I know typically volumes do lift a little bit into the first part of calendar year and then certainly much stronger in the latter part of the fiscal year for you all.

最後，展望明年年初，我知道，通常情況下，在日曆年的第一季度，銷售量會略有上升，而在財政年度的第二季度，銷售量肯定會大幅上升。

What are you expecting in terms of kind of customer sentiment, particularly as you come out of this period of deep carve-out from one of your key auto customers?

您對客戶情緒有何預期，特別是當您剛走出與一個主要汽車客戶深度剝離的時期時？

Yes.

是的。

Phil, I think we're -- overall, I had mentioned in my intro, cautiously optimistic.

菲爾，我認為我們 — — 總的來說，我在介紹中提到過，我們持謹慎樂觀的態度。

I specifically said that about automotive, but that's where we feel across the board.

我專門針對汽車產業說過這一點，但這正是我們所有人的感受。

I think things will be fairly stable, excluding the one large OEM customer here looking out the next few months.

我認為情況會相當穩定，除了未來幾個月的一個大型 OEM 客戶。

But as we start to get to spring and beyond, I think our optimism gets greater for various reasons.

但隨著春天的到來以及以後的歲月，我想出於各種原因，我們的樂觀情緒會變得更加強烈。

I think that's really the sentiment from our customers.

我認為這確實是我們客戶的感受。

And Phil, that's what you've been reading and hearing from other executives as well.

菲爾，這也是你從其他高階主管那裡讀到和聽到的。

I think specifically with automotive, lower interest rates, the fact that the vehicle is averaging almost 13 years at this point, which is decade highs, people want to replace those vehicles.

我認為，具體到汽車行業，由於利率較低，而且汽車的平均使用壽命目前已接近 13 年，達到十年來的最高水平，因此人們想要更換這些汽車。

In addition to that, that's overall market.

除此之外，這就是整體市場。

If I look specifically at Worthington, my optimism also comes from how we've positioned ourselves with automotive.

如果我特別關注沃辛頓，我的樂觀也來自於我們在汽車領域的定位。

Even with that large OEM down, we were more than able to offset that specifically into the other OEMs.

即使那個大型 OEM 停產，我們也有足夠的能力透過其他 OEM 來彌補這一損失。

And that was because of market share gains that I have been sharing with you over the last few quarters.

這是因為過去幾季我一直與大家分享市場佔有率的成長。

Now that's excluding Tier 1s, and that's where we had a bit of a hose.

現在，這已經排除了 Tier 1，這就是我們遇到一些困難的地方。

We're feeling good specifically about the market, that's 52% of our business going forward.

我們對市場特別看好，這將占我們未來業務的 52%。

And that large OEM, this isn't a long-term situation.

對於那個大型 OEM 來說，這不是一個長期的情況。

I think we got another quarter and we're going to have to continue to work with them.

我想我們還有另一個季度，我們將不得不繼續與他們合作。

And it's a short-term frustration, not a long-term problem.

這只是短期的挫折，而不是長期的問題。

So, we'll work through that, and I think we're going to be in very good shape.

所以，我們會努力解決這個問題，而且我認為我們的狀態會非常好。

(Operator Instructions) Martin Englert, Seaport Research Partners.

（操作員指示）馬丁恩格勒特（Martin Englert），海港研究夥伴。

A question on the increase in the reserve and the bad debt expense.

關於增加準備金和壞帳費用的問題。

What type of industry were those customers operating in?

這些客戶從事什麼行業的？

The reserve increase was a scrap dealer.

儲備增加的是廢品經銷商。

So, we sell our scrap to that scrap dealer.

所以，我們將廢料賣給那家廢料經銷商。

That was the reserve.

那是儲備。

And then the bankruptcy was in the heavy truck industry.

隨後重型卡車產業也遭遇破產。

Okay.

好的。

Are you seeing, I guess, other risks across any -- elsewhere in those industries or those verticals?

我想，您是否看到這些行業或垂直領域的其他任何地方有其他風險？

No, not in those industries specifically.

不，具體來說不是在那些行業。

These were customer-specific situations.

這些都是針對客戶的具體情況。

So no, we don't -- fundamentally, we think the people we work with from a scrap perspective or the other heavy truck suppliers, we feel pretty good about those things.

所以，不，我們不會——從根本上說，我們認為從廢料角度來看，與我們合作的人或其他重型卡車供應商，我們對這些事情感覺相當滿意。

There's nothing fundamentally wrong with either of those verticals at all.

從根本上來說，這兩個垂直產業都沒有問題。

And Martin, I would add, even the specific customer in that heavy truck market, we feel good about continuing to do business with them going forward.

馬丁，我想補充一點，即使是重型卡車市場的特定客戶，我們也很高興能繼續與他們開展業務。

Okay.

好的。

Appreciate that.

非常感謝。

And then a follow-up question on looking forward, change in the US administration and if there are changes on the trade front with tariffs with our trading partners to the north and the south.

然後是一個關於未來的後續問題，美國政府的變化以及與我們南北貿易夥伴的關稅方面是否會發生變化。

Could you walk through the puts and takes for your businesses, positives, negatives, or neutrals as you think about it?

您能否從各個角度闡述您的業務的利弊，是積極的、消極的還是中性的？

I know you have significant operations to the north and the south and continued investment there in growth.

我知道你們在北方和南方都有大量業務，並且持續在那裡進行投資以促進成長。

Yes, you got it, Martin.

是的，你明白了，馬丁。

I mean, first, as you know, the devil is in the details and the tariffs could take different directions.

我的意思是，首先，如你所知，魔鬼藏在細節中，關稅可能會朝著不同的方向發展。

Is it on steel?

它是鋼製的嗎？

Is it on finished products?

是成品嗎？

So, until we're fully aware of what the implications, I can just give you a general answer.

因此，在我們完全了解其意義之前，我只能給你一個一般性的答案。

I think we're not very concerned.

我認為我們並不太擔心。

We see little impact on our business.

我們認為這對我們的業務影響不大。

You know this, we source locally.

您知道，我們的資源來自本地。

So as far as a raw material perspective, I wouldn't expect any interruptions.

因此就原料的角度來看，我預計不會有任何中斷。

I think we'd be able to manage through costs efficiently as well.

我認為我們也能夠有效地控製成本。

Where maybe a bit of a difference is in Canada, to your point on the north and Mexico on the South.

也許有些差別在於，正如您所說，加拿大位於北部，而墨西哥位於南部。

We are importing.

我們正在進口。

Those countries are less at risk right now of imports.

這些國家目前面臨的進口風險較小。

So, we don't see an interruption in supply there.

因此，我們沒有看到那裡的供應中斷。

The exception may be Canada, who is also looking to put tariffs in place on China.

加拿大可能是個例外，該國也正在考慮對中國徵收關稅。

But even if that were to occur -- sorry Martin, not an issue for us to be able to pivot and mitigate any type of issue there.

但即使發生這種情況 - 對不起馬丁，我們能夠轉變並緩解那裡的任何問題。

So overall, I think we're in very good shape.

所以總的來說，我認為我們的狀況非常好。

And Martin, you know this, we've since 1955 have been dealing with different administrations and different policies and some markets are impacted negatively, some are positively.

馬丁，你知道，自 1955 年以來，我們一直在與不同的政府和不同的政策打交道，有些市場受到負面影響，有些市場則受到正面影響。

And we've always been able to navigate that quite well.

我們始終能夠很好地解決這個問題。

So from a business perspective, we think we're well positioned.

因此從商業角度來看，我們認為我們處於有利地位。

Now my personal opinion, I guess, I'd be a bit surprised if we see that aggressive position on Mexico and Canada, Martin.

現在就我個人的觀點來說，我想，如果我們看到對墨西哥和加拿大採取這種咄咄逼人的立場，我會有點驚訝，馬丁。

We've been under a Trump administration, and he wants to negotiate.

我們一直處於川普政府的領導下，他想要談判。

I think that administration has certain things they'd like to see Canada and Mexico tighten up on.

我認為政府希望加拿大和墨西哥在某些事情上加強合作。

And at the end of the day, I think they'll get that cooperation.

我認為最終他們會獲得合作。

We're already seeing that.

我們已經看到了這一點。

So hopefully, we're able to avoid the tariffs and its business as usual.

因此希望我們能夠避免關稅並照常營業。

Canada, Mexico, and US are too critical to one another to have any type of interruptions.

加拿大、墨西哥和美國彼此關係十分密切，不容許任何形式的干擾。

But that's how we feel at this point.

但這就是我們目前的感受。

Okay, understood.

好的，明白了。

Appreciate the color.

感謝色彩。

If I could, one last one.

如果可以的話，我再說最後一次。

When you look out across all your end markets, automotive, construction, general manufacturing and elsewhere, I understand you're moving through a lull right now.

當你審視所有的終端市場，汽車、建築、一般製造業和其他市場時，我知道你們現在正處於低迷期。

Maybe volumes were a bit worse than expected and I understand the context with one specific OEM.

也許銷量比預期要差一些，而且我了解某個特定 OEM 的情況。

But what are the customer -- I understand that they're constructive with their outlook.

但是顧客呢——我知道他們的觀點是建設性的。

It seems like you are maybe a couple of quarters, some type of recovery.

看起來你可能已經經歷了幾個季度的某種復甦。

But are you seeing any green shoots on the margin today of improved activity or folks with order books out into early next year speaking to improvements or inflections in the marketplace?

但是，您是否看到如今邊緣活動有所改善的跡象，或者人們是否看到明年初的訂單預示著市場將出現改善或轉變？

Yes.

是的。

I mean, I think, Martin, when it comes to our markets, I mean, I think we'll start with automotive.

我的意思是，馬丁，當談到我們的市場時，我認為我們將從汽車市場開始。

This year, I think we're going to end at about 15.5 million units.

今年，我認為我們的銷量將達到約 1,550 萬台。

Next year, depending on how that OEM plays out, I think the market in automotive is going to be 15.4 to 15.7, somewhere around like that.

明年，根據 OEM 的表現，我認為汽車市場將達到 15.4 到 15.7 左右。

And we'll see how it all plays out.

我們將拭目以待事情將如何發展。

I think in construction, we're generally positive about construction.

我認為在建築領域，我們總體上對建築業持正面態度。

Again, I think a lot of people sat on the sidelines here at the end of the year and it was tough for people to understand what the future was going to be like.

再說一次，我認為很多人在年底時袖手旁觀，很難理解未來會是什麼樣子。

But overall, in the construction markets that we serve, we feel positive generally about where the market is going.

但總體而言，在我們所服務的建築市場中，我們總體上對市場的發展方向持樂觀態度。

I think ag is going to continue to have some challenges throughout the year, again, with interest rates still being relatively high and commodity prices being relatively low and then whatever happens with trade, right?

我認為農業全年將繼續面臨一些挑戰，因為利率仍然相對較高，大宗商品價格相對較低，而且貿易情況也會如此，對嗎？

I mean, that has a big impact on the ag market as well.

我的意思是，這也對農業市場產生了很大的影響。

And then heavy truck, I think heavy truck will probably pick-up towards the end of the year.

然後是重型卡車，我認為重型卡車可能會在今年年底回升。

There's some regulatory changes that are coming.

一些監管變化即將發生。

And as you know, in the heavy truck market, when the regulatory changes happen, there's usually -- it's very cyclical and related to those regulatory changes.

如您所知，在重型卡車市場，當監管發生變化時，通常具有很強的周期性，並且與這些監管變化有關。

So, we may see some pick-up in heavy truck as we get to the end of the year.

因此，臨近年底，我們可能會看到重型卡車的銷量回升。

Martin, just to add to that and specifically automotive, I agree with everything Tim said.

馬丁，補充一下，特別是在汽車領域，我同意提姆所說的一切。

And the tailwinds there that could speed up that recovery is, hey, if that larger OEM is able to meet their inventory targets sooner.

而加速復甦的順風因素是，如果大型 OEM 能夠更快達到其庫存目標。

And right now, we're cautiously optimistic.

目前，我們持謹慎樂觀的態度。

It seems that they are making progress.

看來他們正在取得進展。

That certainly is good for us.

這對我們來說當然是好事。

And then again, I think interest rates continuing to come down is certainly going to fuel buyers to get off the sideline.

而且，我認為利率持續下降肯定會促使買家不再觀望。

And the other bit of optimism there, Tim had mentioned 15.5 million, maybe a little bit flat in 2025 with that 2024 calendar year number, but a few data points for you.

另一個樂觀的跡像是，提姆提到了 1550 萬，到 2025 年可能與 2024 日曆年的數字持平，但為您提供了一些數據點。

September and October seasonally adjusted rates were at 16 million.

經季節性調整後，9 月和 10 月的失業率均為 1,600 萬人。

Even more importantly, November was 16.7 million.

更重要的是，11月份的人數為1,670萬人。

So that's the highest it's been in three years.

這是三年來的最高水準。

So your point, we have a large OEM.

所以你的觀點是，我們有一個大型 OEM。

We have a little bit of difficulty to overcome in the short-term.

短期內我們需要克服一些困難。

But if you start looking out six months and beyond, we think automotive is going to start marching back to those pre-COVID levels.

但如果你開始展望六個月及以後，我們認為汽車產業將開始回到疫情之前的水平。

And that's a good sign on those data points.

從這些數據來看，這是一個好兆頭。

Do you think there may be some demand pull forward in automotive and or other end markets because of anticipated broad-based tariffs with the incoming administration, so people trying to get ahead of potential inflation.

您是否認為，由於新政府預計將實施廣泛的關稅，汽車和/或其它終端市場的需求可能提前到來，人們試圖應對潛在的通膨？

So, by now before that might be implemented?

那麼，現在可能已經可以實施了？

So hard to predict,

很難預測，

[Mike].

[麥克風]。

We haven't seen that yet.

我們還沒看到這一點。

So, we're not seeing anything that's been strange in our order books.

因此，我們在訂單中沒有看到任何異常的情況。

And honestly, Martin, I would find that difficult to believe.

說實話，馬丁，我覺得這很難令人相信。

I think the size of these customers, the OEMs, how we manage our business, they're going to want to manage their working capital smart and with discipline.

我認為這些客戶、OEM 的規模，以及我們如何管理業務，他們都希望以明智且有紀律的方式管理他們的營運資金。

So I don't know that we're going to see a big pull ahead from the OEMs.

因此，我不知道我們是否會看到 OEM 出現大幅領先。

The only wildcard I would tell you is the Tier 1s.

我要告訴你的唯一通配符是 Tier 1s。

Certainly, they may try to time things a little bit more and go long.

當然，他們可能會嘗試稍微延長時間並延長時間。

But I think living through those cycles over the last five years, all of our customers have gotten a bit more disciplined on that front.

但我認為，在經歷了過去五年的這些週期後，我們所有的客戶在這方面都變得更加自律了。

And this concludes our question-and-answer session.

我們的問答環節到此結束。

And I will now turn the conference back over to Geoff Gilmore, President, and Chief Executive Officer for closing comments.

現在，我將會議交還給總裁兼執行長傑夫吉爾摩 (Geoff Gilmore)，請他發表最後評論。

First off, thank you for everybody joining today and showing interest in Worthington Steel.

首先，感謝大家今天的加入以及對沃辛頓鋼鐵的關注。

Obviously, we explained to you some of the short-term frustrations.

顯然，我們向您解釋了一些短期的挫折。

But hopefully, what you heard is a lot of optimism about how we start looking going forward.

但希望您聽到的是我們對未來的樂觀展望。

In my opinion, we had a great quarter.

我認為，我們度過了一個非常棒的季度。

The things that we could control, we can control -- we controlled them and controlled them well.

我們能夠控制的事情，我們就能控制──我們控制了它們，而且控制得很好。

I think our team continues to exceed my expectations and couldn't feel better about our future.

我認為我們的團隊繼續超越我的預期，我對我們的未來感到無比樂觀。

So, thank you again for joining and happy holidays to everybody.

所以，再次感謝您的加入並祝大家節日快樂。

Look forward to talking to you next quarter.

期待下個季度與您交談。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

And you may now disconnect.

現在您可以斷開連線了。