ZEUS

• Rick Marabito started by noting solid performance in challenging environment despite tariff uncertainty, second quarter sales $496 million, net income $5.2 million, flat-rolled shipping volumes H1 2025 ahead of H1 2024. - Andrew Greiff discussed segment performance, noting improved flat-rolled margins, Carbon segment EBITDA $12.5M, Pipe and tube $6.7M, Specialty Metals $5.9M with 60% Q2 improvement, and CapEx plan of $35M for 2025 including new equipment and automation. - Rich Manson discussed financial results: net income $5.2M vs $7.7M Q2 2024, adjusted EBITDA $20.3M (26% Q2 vs Q1), operating expenses, debt reduction to $233M, capital expenditures $17.5M H1 2025, estimated $35M for 2025, tax rate 29.1% Q2 2025, expecting 28%-29% for 2025, and quarterly dividend of $0.16/share.

• Expect challenging second half environment but see positive trends like tariff resolution and tax legislation. - CapEx plan includes $35M spending on organic growth opportunities, with projects like cut-to-length lines, automation, and expansion expected to be operational by end of 2025 or early 2026. - 2025 tax rate expected to approximate 28% to 29%.

Carbon segment: Second quarter EBITDA was $12.5 million, with strength from manufactured product companies. Pipe and tube segment: Adjusted EBITDA of $6.7 million, focusing on fabrication and expecting improved demand for data center work. Specialty Metals Group (stainless and aluminum): EBITDA was $5.9 million, a more than 60% improvement from the first quarter, with improved volume and profitability, and gained market share. Carbon segment contributed significantly, Pipe and tube had focus on fabrication, and Specialty Metals saw improvement in second quarter.

• Uncertainty around tariffs impacting the manufacturing industry, metal supply chain, and customers. - Market volatility and economic conditions that could affect demand for metal products.

Q: Samuel McKinney asked about new processing and automation equipment benefits and quantification.

A: Andrew Greiff and Rick Marabito discussed safety improvement, reduced employee touch, productivity enhancement from cut-to-length lines and slitters, with ramp-up in results expected early next year.

Q: Dave Storms asked about flat-rolled margin drivers and leading indicators.

A: Rich Manson said margin improvement was due to index pricing change and better mix, Rick Marabito mentioned inbound inquiries for fabricating and value-add work from OEMs as a leading indicator, and discussed tariff resolution and tax legislation as positives.

Q: Chris Sakai asked about Carbon Flat gross margin improvement drivers and operating expenses outlook.

A: Rich Manson said it was due to index pricing, better mix, and fabrication focus, and operating expenses expected to be variable with volume, Q3 seasonally slower.

Q: Phil Gibbs asked about tax benefits from investments and working capital.

A: Rich Manson said no bonus depreciation on 2025 projects completed before Jan 2025, expecting flattish Q3 for working capital, and Rick Marabito said M&A opportunities still exist and are being actively explored.