The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Hey, good morning and congrats on the great quarter. Starting on fourth quarter gross margin, up nearly 350 basis points quarter on quarter, and
it was the best figure you guys have posted in two years. Talk us through how you achieved the richer mix of direct tonnes and stronger metal
spreads despite the macro headwinds that you're still facing in some key end markets.
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Well, thanks, Tim, and that leads into my next question, which is that galvanized spreads, like you said, still relatively compressed with demand still
cautious on tariff uncertainty, interest rates. Now how do you view that market as we move into fiscal year '26?
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Okay, thanks, Geoff. And then last one for me. I know throughout the course of fiscal year '25 you guys dealt with some destocking from the
automotive OEMs with the understanding that they're probably not going to build up a huge amount of inventory anytime soon. I mean, how can
you guys continue to be successful in that in market? I know you noted the new market share wins.
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Okay, great. Thanks, Geoff.
Question: John Tumazos - John Tumazos, John Tumazos Very Independent Research. LLC - Analyst
: Thank you for taking my question. Could you describe the competitive dynamics in the Tailor Welded Blanks business? Who else makes them
besides ArcelorMittal? Are there trading companies in that business? I'm surprised that you have to take early retirements there.
Question: John Tumazos - John Tumazos, John Tumazos Very Independent Research. LLC - Analyst
: So if the products are growing, why are you thinning out your people?
Question: John Tumazos - John Tumazos, John Tumazos Very Independent Research. LLC - Analyst
: You described how the products are growing. So then why were you taking early retirements?
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