Sep 4, 2026 earnings call — Quarterly results, pricing actions, tariffs and cash priorities
On a consolidated basis, the company reported net sales of $502 million in Q3 of 26, a 1.3% increase year over year.
Revenue $0.5B (est $0.5B) · EPS $0.79 (est $0.66)
Key quotes
"We said then that we would implement targeted price increases in the mid single digit to low teens range phased in through the third quarter and tailored by product line."
"As we now move into the optimization stage, we continue to advance strategic projects built around the 80/20 principle and are completing several value stream mapping exercises."
"For the current quarter, our cash priorities will be to continue paying down debt and to fund organic projects that drive financial returns."
Analyst Q&A 4
hardware margins and pricing impact
Q (Julio Romero · Sidoti): He asked how much of the hardware margin improvement came from price increases versus operations and 80/20 work, and how much of the announced price increases were realized now versus in Q4. He also asked how much the tariff reimbursements headwind will be in Q4.
A: They said the third-quarter price increases were phased and the full impact should come in Q4. Scott said pricing improved adjusted EBITDA by about 3.1 million quarter over quarter. George said 80/20 benefits were minimal in Q3 and will grow in Q4 and next year; Scott said tariff reimbursements were roughly $9 million of revenue impact in Q3 and much less is expected in Q4.
"But in general, I would say that the price increases we implemented in the third quarter were phased so that we do expect a bigger or a more impact or full impact in the fourth quarter of this year." — Scott Michael Zuehlke (CFO)
where Q4 margin strength comes from
Q (Adam Thalhimer · Thompson Davis): He asked which segments to model for the Q4 margin improvement and whether SG&A control will continue. He also asked how Wood Solutions growth breaks down between volume, price, and outsourcing, and whether the company aims to be net cash or pursue M&A.
A: They said focus on the hardware segment because last year’s Monterrey issues won’t repeat and Q4 will show a full quarter of pricing benefit. For Wood, they won new business that adds about $10 million a year, while the market volume is soft; tariffs could create more insourcing opportunities and quoting activity is significant. On cash, they said near-term focus is on paying down debt and reducing interest; they would not aim to be net cash plus and would consider more transformative deals if leverage falls to 1 to 1.5x.
"I would focus more on the hardware solution segment." — Scott Michael Zuehlke (CFO)
spacer demand and screens outlook
Q (Steven Ramsey · Thomas Research Group): He asked for details on demand, pricing, and mix impact for the spacer product in Extruded, and asked about screens performance within hardware and whether that strength will continue.
A: They said the warm-edge spacer market is tied to high-end energy-efficient windows and demand should keep growing as energy costs stay elevated; pricing is often on index mechanisms (petroleum linked) and they have passed through price increases to cover inflation. They added that the Extruded segment’s high margins come from IG spacers and the Liniar vinyl business, which together make up "65% to 70%" of segment revenue. For screens, they said the business is growing, has outpaced the market as OE window makers outsource, and they are driving efficiency with footprint optimization while buffering margins.
"Those 2 product lines make up from a revenue perspective, like, 65% to 70% of the revenue of that segment." — Scott Michael Zuehlke (CFO)
tariff refunds and pass-through policy
Q (Kevin Gainey · Stonex): He asked whether tariff refunds were fully passed to customers, whether that was done product by product, and why some companies keep refunds instead of returning them.
A: They said the tariff refunds only impacted the hardware solutions business in the quarter, while Custom Solutions largely continued prior pass-through practices. Management said their philosophy is to be transparent and not use tariffs to generate margin; everything has been a direct pass through and any refunds are returned to customers.
"So everything we have done, has been a direct pass through." — George L. Wilson (CEO)