Loading...
01/11 03:18
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company's earnings call summary and Q&A session reveal a positive sentiment. The company is optimistic about demand in key markets like data centers and solar, and expects reasonable growth despite some international volatility. They plan significant share buybacks and dividend increases, enhancing shareholder returns. The company is confident in steel conduit pricing trends, with improving margins, and sees potential market share gains. However, some uncertainties exist, such as declining PVC prices and vague management responses. Overall, these factors suggest a stock price increase of 2% to 8% over the next two weeks.
Net Sales $735 million, included 2% organic volume growth. Year-over-year declines in average selling prices were in line with expectations.
Adjusted EBITDA $100 million. Adjusted EBITDA margins compressed year-over-year in the Electrical segment due to pricing declines related to PVC and steel conduit products. Margins improved in the S&I segment due to volume growth and better productivity.
Adjusted EPS $1.63. Increased due to improved visibility and stronger earnings leverage.
Organic Volumes Increased 2% compared to the third quarter of fiscal 2024. Growth driven by PVC and fiberglass conduit products, and demand for domestically-made steel conduit due to tariffs.
Average Selling Prices Declined 12% year-over-year, primarily for PVC conduit and steel conduit products. Sequential pricing improvement observed in steel conduit products.
Year-to-Date Volume Now up slightly, reflecting growth in metal framing, cable management, and construction services. Plastic-pipe, conduit, and fittings category is now flat year-over-year.
Cash Flow from Operations $192 million year-to-date. Includes $14 million proceeds from divestitures and sale of excess equipment.
Net Leverage Ratio Approximately 1x, with no maturity repayments required until 2028.
PVC and fiberglass conduit products: Growth in the third quarter contributed to year-to-date flat performance in the plastic-pipe, conduit, and fittings category.
Electrical cable and flexible conduit: Continued growth, up low single digits year-to-date, attributed to the success of differentiated products.
Onshoring of manufacturing: Positive indicators of increased onshoring investment momentum in the U.S., supported by tariffs.
Tariff impacts: Changes in tariffs, including increased tariffs on steel and aluminum from Mexico and Canada, and new copper tariffs, are influencing market dynamics and demand for domestically-sourced products.
Productivity gains: Improved productivity in the S&I segment due to better cost management in North American operations.
Cash flow and capital deployment: Generated $192 million in cash flow from operations year-to-date, with $14 million from divestitures and equipment sales. Maintains a strong balance sheet with no debt maturities until 2028.
CEO transition: CEO William E. Waltz announced retirement, with a focus on a seamless transition and continued commitment to strategy and stakeholders.
Mitigating FY '26 headwinds: Actively working to offset approximately $50 million of anticipated headwinds due to pricing and tariff challenges.
Tariffs and Regulatory Changes: The evolving tariff environment, including increased tariffs on steel and aluminum from Mexico and Canada (from 25% to 50%) and new tariffs on copper, introduces cost challenges and market pricing dynamics. These changes could slow demand activity and create approximately $50 million of unmitigated headwinds in FY '26.
Pricing Pressures: Year-over-year declines in average selling prices for PVC and steel conduit products have compressed margins. Although there has been sequential pricing improvement, pricing has not kept pace with raw material cost increases, particularly for copper, which has experienced volatility.
Economic and Market Uncertainty: Mixed construction sentiment and a slowdown in planning activity across several nonresidential categories create uncertainty in demand. This could impact volume growth and overall financial performance.
Supply Chain and Input Costs: Volatility in raw material costs, especially copper, and the broader impact of tariffs on input costs pose challenges to maintaining profitability.
Strategic Execution Risks: The CEO's retirement and the ongoing succession planning process could introduce transitional risks, potentially impacting strategic continuity and execution.
Full Year Adjusted EBITDA: Maintaining the full year adjusted EBITDA midpoint of $400 million, with a narrowed range of $390 million to $410 million.
Full Year Adjusted EPS: Raising the midpoint of adjusted EPS to $6.50, with a range of $6.25 to $6.75.
Fourth Quarter Adjusted EBITDA: Expected to be in the range of $75 million to $95 million.
Fourth Quarter Adjusted EPS: Expected to be in the range of $1.05 to $1.35.
Full Year Tax Rate: Adjusted to a range of 19% to 21%, with the fourth quarter tax rate expected to be between 20% and 23%.
FY '26 Headwinds: Anticipating approximately $50 million of unmitigated headwinds due to factors such as lower selling prices for PVC conduit products and increased aluminum tariffs.
Market Demand and Tariffs: Expecting a shift in market demand towards domestically-sourced products due to increased tariffs, particularly benefiting steel conduit products over time.
Volume Growth: For FY '25, volume is expected to be flat to slightly positive, with mid- to long-term confidence in volume growth driven by positioning in key electrical end markets.
Dividend Program: No specific mention of a dividend program or any changes to dividend payouts was made during the call.
Share Buyback Program: The company emphasized its commitment to a balanced capital deployment model, which includes returning cash to shareholders. However, no specific details or announcements regarding a share buyback program were provided.
The earnings call summary and Q&A reveal a positive outlook, with strong financial metrics, optimistic guidance, and strategic growth initiatives. Despite some headwinds, the company is confident in its market position and cost-saving measures. The announcement of plant closures and productivity improvements, along with potential divestments, supports a positive sentiment. The market cap of $4.8 billion suggests a moderate reaction, leading to a prediction of a positive stock price movement in the range of 2% to 8% over the next two weeks.
The company's earnings call summary and Q&A session reveal a positive sentiment. The company is optimistic about demand in key markets like data centers and solar, and expects reasonable growth despite some international volatility. They plan significant share buybacks and dividend increases, enhancing shareholder returns. The company is confident in steel conduit pricing trends, with improving margins, and sees potential market share gains. However, some uncertainties exist, such as declining PVC prices and vague management responses. Overall, these factors suggest a stock price increase of 2% to 8% over the next two weeks.
The earnings call shows mixed results: strong net sales growth and dividend increase are positives, but the slight EPS miss, pricing declines, and impairment charge are negatives. The Q&A reveals management's uncertainty around tariffs and pricing, adding to investor concerns. The market cap indicates a potential for moderate movement, but not drastic. Overall, the sentiment is balanced between positive shareholder returns and financial performance concerns, leading to a neutral stock price prediction.
The earnings call presents a mixed picture: strong financial performance with increased EPS and EBITDA margins, but challenges like pricing declines, tariff impacts, and an impairment charge. The Q&A reveals management's lack of clarity on market share and tariff benefits, which adds uncertainty. The positive elements, such as share repurchases and dividend increases, are offset by concerns over construction market sentiment and competitive pressures. Given the company's mid-sized market cap, the overall sentiment is neutral, expecting minimal stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
