Oct 22, 2026 earnings call — CapEx expansion and cost pressures
Company plans approximately $30 million in fiscal 27 capital spending, including approximately $20 million to expand engineered structural mesh capacity.
Revenue $0.2B (est $0.2B) · EPS $0.43 (est $0.49)
Key quotes
"As a result, we have implemented 6 price increases since December 2025. and a 7th has been announced with an effective date of a few days from now."
"Our largest investment approximating $20 million is focused on expanding our engineered structural mesh capacity with the addition of a new production line at an existing facility."
"Since the Section 232 tariff changes in 2025, we have been unable to source adequate volumes of wire rod in North America and have been forced to purchase significant quantities from other more remote producers."
Analyst Q&A 2
delayed shipments and structural mesh demand
Q (Julio Romero · Sidoti and Company): Analyst asked if the shipment strength would continue into the calendar year and how large the quarter's shipments were. He also asked who drives engineered structural mesh decisions, whether projects are being designed with their material, how durable non-data-center demand is, and details on CapEx including the $20 million for ESM capacity and whether that is tied to committed demand.
A: Management said the business is week-to-week and their forecast reflects current conditions for the first and second quarters. They expect engineered structural mesh to continue to grow, said projects are not being designed with their material (they must convert them), and said there is no committed customer demand; they have committed to the $20 million for ESM capacity but cannot specify output.
"Julio, there is no committed demand from our customers for anything we produce." — Howard Osler Woltz
cost recovery and project business mix
Q (Tyson Bauer · KC Capital): Analyst asked how the company separates recoverable versus nonrecoverable costs amid multiple price increases and whether rising costs are outpacing recovery. He also asked if large project work is growing as a percent of sales, how facility locations affect fulfillment, and whether expected inventory or working capital needs affect the special dividend.
A: Management said they are unaware of any cost that is not recoverable and that raw material costs are the easiest to track, but many other costs are only known when they are incurred so they react as costs hit. They said project work is growing as a percentage of total revenue and is incremental to legacy business, emphasized the need to deliver in 2 to 4 weeks, noted their nationwide footprint helps assign work to logical locations, do not expect an inventory build in 2027, and expect to be in a position to act on the special dividend as they choose.
"Well, let me say first that I am unaware of any cost that is not recoverable." — Howard Osler Woltz