宜易贸易有限公司- AZZ -2027财年第一季度业绩电话会

00:00:00 Good day and welcome to the azz fiscal2027first quarter results conference call.Allparticipants will be in a listen only mode. 00:00:11 Should you need assistance, please signal a conference specialist by pressing the star keyfollowed by zero. 00:00:17 After today's presentation, there will be an opportunity to ask questions.To ask a question,you may press star then one on a touch tone phone.To withdraw your question, please pressstar then two. 00:00:32 Please note this event is being recorded.I would now like to turn the conference over toPhilip Cooper,managing director of three part advisors.Please go ahead. 00:00:44Good morning. Thank you for joining us today to review azz's fiscal 2027 first quarterresults for the period ended may thirty one twenty twenty six. 00:00:53 Joining the call today are Tom Ferguson, President and chief executive officer, JasonCrawford, chief financial officer, And David lark, chief marketing, communications andinvestor relations officer. 00:01:05 After today's prepared remarks, we will open the call for questions. Please note that the livewebcast for today's call is available at www.az.com forward slash investor cash events. 00:01:19 Before we begin, I would like to remind everyone that, our discussion today will includeforward looking statements made in accordance with the safe harbor provisions of theprivate securities litigation reform act of thousand nine hundred and ninety five, by theirnature, forward looking statements are uncertain and outside the company's control exceptfor actual results. A these comments containing forward looking statements may involverisks and uncertainties. 00:01:41 Some of which are detailed from time to time in documents filed by a zz with the securitiesand Exchange Commission. 00:01:48 Including the latest annual report on form10k and quarterly reports on form10Q,thesestatements are not guarantees of future performance,therefore undue reliance should notbe placed upon them.Actual results could differ materially from these expectations. 00:02:03 In addition, today's call will discuss non GAAP financial measures, which should beconsidered supplemental and not as a substitute for GAAP financial measures. 00:02:11 We refer shareholders to our reconciliations from GAAP to non GAAP measures containedin today's earnings press release. 00:02:17 I would now like to turn the call over to Tom Ferguson.Thank you,Philip.Goodmorning,everyone,and thank you for joining us today.We appreciate your interest in azz andthe opportunity to discuss our first quarter fiscal2027results.We'are off to a strong start forthe first quarter.We delivered record sales in both segments,generated solid cashflow,maintain a strong balance sheet,announced raising our dividend,and raised our fullyear guidance.These results reflect the strength of our strategy,the durability of our endmarkets and the continued execution of our teams. 00:02:54 Our results consistently reflect our ability to convert demand into high quality, profitablegrowth. We continue to leverage our market leadership positions in both metal coatings andprecoed metals to expand earnings and generate robust cash flow, while investingstrategically to extend our competitive advantages. 00:03:12 In metal coatings, we' are investing in added capacity where demand supports attractivereturns. In North Texas, for instance, we successfully commissioned a new large kettle tomeet growing regional demand for hot to galvanizing, effectively doubling our capacity. AtCrowley, Texas, this low risk, high return investment supports growing customer demandand strong market fundamentals. David will discuss us end market demand in more detailin just a moment. 00:03:42 Additionally, a key element of our growth strategy is identifying innovative ways to grow,share and deepen customer partnerships. One example of this is a vertically integrated manufacturer who chose to partner with AZ to divest its noncore galvanizing operations toreduce complexity and cost. 00:04:01 As part of this agreement, we acquired their galvanizing kettle and zinc, providing themwith immediate cash liquidity while securing a long term service agreement. We believe thisdeerticalization model creates value for our customers while delivering long term revenuestreams for azzz. We view this as a scalable blueprint for future partnerships. 00:04:24 At preco metals, our Washington, Missouri facility continues to ramp production as planned.We remain on track to reach targeted utilization with our strategic partner while activelyseeking the commercialization of the remaining capacity. 00:04:38 The facility is approaching expected contribution margin levels for this year andperformance with our partner in this beer and beverage related container category hasbeen very encouraging. 00:04:50 Across both segments, our focus remains clear increased share of wallet capturedincremental market share and deploy capital into high confi