Nexstar Media Group, Inc (NXST): A Bull Case Theory
A closeup of a digital newsroom, highlighting the complexity of the modern media landscape.
Nexstar Media Group stands out as a dominant force in U.S. television broadcasting, operating one of the largest portfolios of local TV stations and digital media assets, with reach extending to nearly 70% of U.S. households. This unmatched scale grants Nexstar a commanding position in the local broadcast market, fostering strategic leverage in affiliate relationships and setting the stage for future M&A opportunities.
The company's 2024 performance marked a milestone, with record-breaking revenue primarily fueled by robust distribution fees—underscoring the financial strength and recurring nature of its business model. A core pillar of Nexstar's strategy lies in its focus on live local news and NFL content, which remains essential for cable bundles and continues to attract reliable viewership. These programming priorities, combined with strong network affiliations, bolster subscriber retention and drive consistent demand from political advertisers, especially in key election cycles.
Nexstar's proven ability to monetize its scale while maintaining relevance in an evolving media landscape makes it a compelling media asset. With a business model built around high-margin content and contractual revenue streams, the company is well-positioned to withstand industry headwinds, such as cord-cutting and digital disruption.
Its scale, political revenue tailwinds, and potential for consolidation activity provide further upside optionality. As legacy broadcasters continue to seek operational efficiency and competitive advantage, Nexstar's infrastructure, reach, and cash-generating ability make it both a formidable consolidator and a prime candidate for rerating by investors seeking exposure to resilient, cash-rich media platforms with growth levers still intact.
Previously we covered a on Nexstar Media Group, Inc. by Value Don't Lie in April 2024, which highlighted the company's strong free cash flow profile, disciplined capital allocation, and potential regulatory tailwinds for M&A-led growth. The company's stock price has depreciated approximately by 7% since our coverage. This is because the thesis has not yet played out, as regulatory catalysts and capital return benefits remain longer-term. The thesis still stands as Nexstar continues to generate robust FCF and trades at compelling valuation multiples. Pitchstack Investing shares a similar view but emphasizes Nexstar's operational scale and affiliate relationships as key drivers of strategic positioning and upside.
Nexstar Media Group, Inc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held NXST at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of NXST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None.
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Based on the following guidance assumptions, including the anticipated spending on growth capital expenditures and capital allocation, Chemtrade's implied Payout ratio (1) for 2025 is approximately 40%. Chemtrade's Adjusted EBITDA for 2024 was $470.8 million, marking the second-highest annual Adjusted EBITDA in Chemtrade's history. Achieving the revised 2025 guidance would make 2025 the second-highest annual Adjusted EBITDA in Chemtrade's history. This level of Adjusted EBITDA reinforces the significant step-change in Chemtrade's Adjusted EBITDA and cash flow generation compared to pre-pandemic levels as it would be the fourth consecutive year at the higher level of Adjusted EBITDA. Key Assumptions 2025 Assumptions 2024 Actual Current Previous Approximate North American MECU sales volumes 177,000 168,500 172,000 2025 realized MECU netback being higher than 2024 (per MECU) CAD $60 CAD $30 N/A Average CMA (1) NE Asia caustic spot price index per tonne (2) US$440 US$450 US$385 Approximate North American production volumes of sodium chlorate (MTs) 270,000 254,500 270,000 USD to CAD average foreign exchange rate 1.380 1.380 1.370 Long term incentive plan costs (in $ millions) $15.0 - $20.0 $12.0 - $18.0 $23.3 (1) Chemical Market Analytics (CMA) by OPIS, A Dow Jones Company, formerly IHS Markit Base Chemical. (2) The average CMA NE Asia caustic spot price for 2025 and 2024 is the average spot price of the four quarters ending with the third quarter of that year as the majority of our pricing is based on a one quarter lag. Expand Chemtrade Vision 2030 In May 2025, Chemtrade shared Chemtrade Vision 2030 and the acquisition of Polytec is an important step towards achieving the targets outlined in Vision 2030. One of the key aspects of Chemtrade Vision 2030 is to grow mid-cycle annual Adjusted EBITDA to between $550 million and $600 million by 2030. Chemtrade expects to achieve this by continuing to focus on operational and commercial excellence, as well as pursuing organic and external growth. This improvement in Adjusted EBITDA, along with Chemtrade's commitment to returning capital to unitholders while maintaining a prudent balance sheet, is expected to deliver compelling unitholder value. Update on Organic Growth Projects Chemtrade remains focused on its long-term objective of delivering sustained earnings growth and generating value for investors. To accomplish this, Chemtrade has identified various organic growth initiatives. In 2025, Chemtrade plans to invest between $40.0 million and $60.0 million in growth capital expenditures, which includes expansions of water treatment chemicals, upgrades to ultrapure sulphuric acid production, and other organic growth projects. Construction of the Cairo, Ohio ultrapure acid project is complete, and the project is progressing through the start-up process, with Chemtrade now going through quality validation trials with major customers. Chemtrade continues to expect commercial ramp-up to take place towards the end of 2025. This is expected to be one of the first ultrapure sulphuric acid plants in North America that will meet the quality requirements for next generation semiconductor nodes. This project will further bolster Chemtrade's position as a leading North American supplier of ultrapure sulphuric acid to the semiconductor industry. Acquisition of Polytec, Inc. a Provider of Turnkey Water Treatment Solutions Chemtrade also announced today, that it has entered into an agreement to acquire Polytec, Inc. ("Polytec") for US$150 million representing a multiple of approximately 6.5x LTM Adjusted EBITDA. Polytec is a provider of turnkey water treatment solutions with well-established operations in four U.S. states. The transaction is expected to close in the fourth quarter of 2025 subject to regulatory requirements and customary closing conditions. Further details on this transaction can be found in a separate news release. Distributions and Capital Allocation Update During the second quarter of 2025, Chemtrade purchased approximately 2.2 million units as part of its normal course issuer bid (NCIB). Chemtrade was authorized to purchase approximately 11.7 million units under its NCIB that expired in June 2025. As of June 30, 2025, it had acquired 11.2 million units. Chemtrade intends to implement a new NCIB. Purchases of units were effected through the facilities of the TSX and/or alternative Canadian trading systems and were made by means of open market transactions, or such other means as may be permitted by the TSX, including block purchases of units, at prevailing market rates. The timing and amount of any purchases are subject to management's discretion. Distributions declared in the second quarter of 2025 totalled $0.1725 per unit, comprised of monthly distributions of $0.0575 per unit. This distribution remains well-covered by Chemtrade's cash flow generation, with a Payout Ratio in the second quarter of 2025 of 27% and a Payout Ratio for twelve months ending June 30, 2025 of 33%. Rohit Bhardwaj, CFO of Chemtrade, commented on Chemtrade's capital allocation, 'In the context of an uncertain macroeconomic environment, we remain committed to a disciplined and balanced approach to capital allocation. We continue to prioritize long-term value creation by investing in strategic growth opportunities, while delivering consistent and sustainable capital returns to unitholders. In particular, our successful leverage reduction strategy has provided Chemtrade with the financial flexibility to successfully pursue compelling growth opportunities such as the acquisition of Polytec while continuing to maintain a conservative balance sheet and leverage within our target range. Our capital deployment decisions remain grounded in financial discipline and aligned with our goal of driving sustainable earnings growth and attractive total unitholder returns. To that effect, we are both implementing another NCIB and announcing our intent to redeem the 6.50% convertible debenture due October 31, 2026 using funds from our credit facilities . In addition to continuing to simplify and optimize our capital structure, the redemption will result, on a like basis, in lower interest costs. Normal Course Issuer Bid (NCIB) For Units Chemtrade has filed with the Toronto Stock Exchange ('TSX') a notice of intention to commence a new normal course issuer bid for a one-year period. If accepted by the TSX, Chemtrade would be permitted to purchase for cancellation, through the facilities of the TSX and/or alternative Canadian trading systems, up to 10% of the public float (calculated in accordance with the TSX rules) of Chemtrade's issued and outstanding units during the 12-month period. Subject to TSX acceptance, Chemtrade currently anticipates the NCIB commencing on or about August 19, 2025 and in any event, at least two trading days after TSX acceptance of the normal course issuer bid. The timing and exact amount of any purchases will be determined on the date of acceptance of the notice of intention by the TSX. Redemption of all of the 6.50% Convertible Debentures Due October 31, 2026 Chemtrade will redeem on September 15, 2025 (the 'Redemption Date') all of its outstanding 6.50% convertible unsecured subordinated debentures due October 31, 2026 (the '2026 Debentures') in accordance with the terms of the trust indenture, as amended and supplemented by supplemental indentures thereto (collectively, the 'Indenture'), pursuant to which they were issued (the 'Redemption'). On the Redemption Date, holders of the 2026 Debentures will receive approximately $1,024.5753425 for each $1,000 principal amount of 2026 Debentures, representing their par value, plus all accrued and unpaid interest thereon to but excluding the Redemption Date. The 2026 Debentures that are redeemed in connection with the Redemption will cease to bear interest from and after the Redemption Date. Formal notice of redemption is being delivered to the holders of the 2026 Debentures today in accordance with the terms of the Indenture. The aggregate principal amount of 2026 Debentures outstanding as of the date hereof is $100,000,000. Chemtrade will use cash on hand, or a combination of cash on hand and draws on its credit facilities, to fund the Redemption. About Chemtrade Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also a leading producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams. NON-IFRS AND OTHER FINANCIAL MEASURES Non-IFRS financial measures and non-IFRS ratios Non-IFRS financial measures are financial measures disclosed by an entity that (a) depict historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) are not disclosed in the financial statements of the entity and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by an entity that are in the form of a ratio, fraction, percentage, or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the entity. These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other entities. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate Chemtrade's financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. The following section outlines Chemtrade's non-IFRS financial measures and non-IFRS ratios, their compositions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, Chemtrade's non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. Distributable cash after maintenance capital expenditures Most directly comparable IFRS financial measure: Cash flows from operating activities Definition: Distributable cash after maintenance capital expenditures is calculated as cash flow from operating activities less lease payments net of sub-lease receipts, maintenance capital expenditures incurred, including unpaid amounts, and adjusting for cash interest and current taxes, and before decreases or increases in working capital. Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's cash flows including the amount of cash available for distribution to Unitholders, repayment of debt and other investing activities. Distributable cash after maintenance capital expenditures per unit Definition: Distributable cash after maintenance capital expenditures per unit is calculated as distributable cash after maintenance capital expenditures divided by the weighted average number of units outstanding. Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's cash flows including the amount of cash available for distribution to Unitholders, repayment of debt and other investing activities. Payout ratio Definition: Payout ratio is calculated as Distributions declared per unit divided by Distributable cash after maintenance capital expenditures per unit. Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's cash flows including Chemtrade's ability to pay distributions to Unitholders. Net debt Most directly comparable IFRS financial measure: Total long-term debt, Debentures, lease liabilities, and long-term lease liabilities, less cash and cash equivalents. Definition: Net debt is calculated as the total of long-term debt, the principal value of Debentures, lease liabilities and long-term lease liabilities, less cash and cash equivalents. Why we use the measure and why is it useful to investors: It provides useful information related to Chemtrade's aggregate debt balances. Growth capital expenditures Most directly comparable IFRS financial measure: Capital expenditures Definition: Growth capital expenditures are calculated as capital expenditures less Maintenance capital expenditures, plus investments in joint ventures. These include unpaid amounts at each reporting period. Why we use the measure and why it is useful to investors: It provides useful information related to the capital spending and investments intended to grow earnings. Total of segments measures Total of segments measures are financial measures disclosed by an entity that (a) are a subtotal of two or more reportable segments, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the notes of the financial statements of the entity, and (d) are not disclosed in the primary financial statements of the entity. The following section provides an explanation of the composition of the Total of segments measures. Adjusted EBITDA Most directly comparable IFRS financial measure: Net earnings (loss) Capital management measures Capital management measures are financial measures disclosed by an entity that (a) are intended to enable an individual to evaluate an entity's objectives, policies and processes for managing the entity's capital, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the notes of the financial statements of the entity, and (d) are not disclosed in the primary financial statements of the entity. Net debt to LTM Adjusted EBITDA Definition: Net debt to LTM Adjusted EBITDA is calculated as Net debt divided by LTM Adjusted EBITDA. LTM Adjusted EBITDA represents the last twelve months' Adjusted EBITDA Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's debt leverage and Chemtrade's ability to service debt. Chemtrade monitors Net debt to LTM Adjusted EBITDA as a part of liquidity management to sustain future investment in the growth of the business and make decisions about capital. Supplementary financial measures Supplementary financial measures are financial measures disclosed by an entity that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position, or cash flow of an entity, (b) are not disclosed in the financial statements of the entity, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. The following section provides an explanation of the composition of those Supplementary financial measures. Maintenance capital expenditures Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. These include unpaid amounts at each reporting period. Non-maintenance capital expenditures Represents capital expenditures, including unpaid amounts, that are (a) pre-identified or pre-funded, usually as part of a significant acquisition and related financing; (b) considered to expand the capacity of Chemtrade's operations; (c) significant environmental capital expenditures that are considered to be non-recurring; or (d) capital expenditures to be reimbursed by a third party. Cash interest Represents the interest expense on long-term debt, interest on Debentures, and pension plan interest expense and interest income. Cash tax Represents current income tax expense. Caution Regarding Forward-Looking Statements Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as 'anticipate', 'continue', 'estimate', 'expect', 'expected', 'intend', 'may', 'will', 'project', 'plan', 'should', 'believe' and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: Its ability to obtain required regulatory approvals and to close the Polytec acquisition and the timing thereof; the Fund's intention to commence a new normal course issuer bid, its ability to obtain regulatory approvals and the timing thereof; its expectation that 2025 Adjusted EBITDA guidance will range between $475 million and $500 million; its expectation of strong unitholder returns, 5 to 10% annual growth in mid-cycle Adjusted EBITDA and Distributable cash after maintenance capital expenditures, and ability to have disciplined capital allocation and a continued focus on high-return growth investments; its expectation to grow its mid-cycle annual Adjusted EBITDA to between $550 million and $600 million of mid-cycle EBITDA by 2030; the Fund's expectation that Chemtrade is well-positioned to grow its mid-cycle Adjusted EBITDA and distributable cash by 5-10% annually; its ability to execute and continue generating long-term value for unitholders; the Fund's expectation of an implied Payout ratio for 2025 of approximately 40%, its expectation to achieve the second highest annual EBITDA in Chemtrade's history and the fourth consecutive year at the higher level of adjusted EBITDA; the expected stated range of maintenance capital expenditures and growth capital expenditures, lease payments, cash interest and cash tax; its ability to achieve the objectives of Chemtrade Vision 2030, namely its ability to grow mid-cycle annual Adjusted EBITDA to between $550 million and $600 million in mid-cycle EBITDA by 2030; its intention to continue to focus on operational and commercial excellence, as well as pursue organic and external growth; its expectation that its commitment to returning capital to unitholders while maintaining a prudent balance sheet will deliver compelling unitholder value; its intention to invest between $40.0 million and $60.0 million in growth capital expenditures in 2025 and its allocation among water treatment chemicals expansions, ultrapure sulphuric acid production upgrades, and other organic growth projects; the expected timing of commercial ramp-up of the Cairo project; its ability to be one of the first North American UPA plants to meet the quality requirements of the next generation semiconductor nodes; Chemtrade's ability to retain its position as a leading North American ultrapure sulphuric acid supplier to the semiconductor industry; its ability to effect a disciplined and balanced approach to capital allocation; its ability to carry out its strategy to prioritize long-term value creation by investing in strategic growth opportunities while delivering consistent and sustainable capital returns to unitholders; its intention to redeem the 6.50% convertible debentures due October 31, 2026 and the expected sources of funding to accomplish such redemption and its ability to lower interest costs as a result thereof. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the 'RISK FACTORS' section of the Fund's latest Annual Information Form and the 'RISKS AND UNCERTAINTIES' section of the Fund's most recent Management's Discussion & Analysis. Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: the stated North American MECU sales volumes and sodium chlorate production volumes; the 2025 MECU netback differing from 2024 by the stated amount; the stated average CMA NE Asia caustic spot price index; the stated U.S. dollar average foreign exchange rate; and the stated range of LTIP costs; the timing and completion of the Redemption; there being no significant disruptions affecting the operations of the Fund and its subsidiaries; the timely receipt of required regulatory approvals; no significant changes in global economic conditions. Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at A conference call to review the second quarter 2025 results will be webcast live on Friday, August 15, 2025 at 10:00 a.m. ET. To access the webcast click here.
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SIFCO Industries, Inc. ('SIFCO') Announces Third Quarter and First Nine Months of Fiscal 2025 Financial Results
CLEVELAND--(BUSINESS WIRE)--SIFCO Industries, Inc. (NYSE American: SIF) today announced financial results for its third quarter and first nine months of fiscal 2025, which ended June 30, 2025. Net sales in the third quarter of fiscal 2025 increased 0.5% to $22.1 million, compared with $22.0 million for the same period in fiscal 2024. Net income from continuing operations for the third quarter of fiscal 2025 was $3.3 million, or $0.54 per diluted share, compared with net loss of $0.9 million, or $(0.16) per diluted share, in the third quarter of fiscal 2024. Net loss from discontinued operations for the third quarter of fiscal 2025 was $0.1 million, or $0.02 per diluted share, compared with net income from discontinued operations of $1.0 million, or $0.17 per diluted share, in the third quarter of fiscal 2024. EBITDA was $5.3 million in the third quarter of fiscal 2025, compared with $1.2 million in the third quarter of fiscal 2024. Adjusted EBITDA in the third quarter of fiscal 2025 was $4.4 million, compared with Adjusted EBITDA of $1.8 million in the third quarter of fiscal 2024. First Nine Months Results Net sales in the first nine months of fiscal 2025 increased 7.0% to $62.0 million, compared with $58.0 million for the same period in fiscal 2024. Net loss from continuing operations for the first nine months of fiscal 2025 was $0.4 million, or $(0.07) per diluted share, compared with net loss of $7.2 million, or $(1.20) per diluted share, in the first nine months of fiscal 2024. Net income from discontinued operations for the first nine months of fiscal 2025 was less than $0.1 million, or $0.02 per diluted share, compared with net income from discontinued operations of $2.3 million, or $0.38 per diluted share, in the first nine months of fiscal 2024. EBITDA was $4.9 million in the first nine months of fiscal 2025, compared with $(1.5) million in the first nine months of fiscal 2024. Adjusted EBITDA in the first nine months of fiscal 2025 was $4.0 million, compared with Adjusted EBITDA of $0.1 million in the first nine months of fiscal 2024. Other Highlights 'Demand for SIFCO's products remained strong through the third quarter as end users increase production. While raw material availability has improved, some constraints continued to affect shipments during the period. Pricing discussions with customers have generally been favorable and are expected to continue into the fourth quarter. Both sales and margins in Q3 reflected continued positive trends.' Use of Non-GAAP Financial Measures The Company uses certain non-GAAP measures in this release. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are intended to serve as supplements to results provided in accordance with accounting principles generally accepted in the United States. SIFCO Industries, Inc. believes that such information provides an additional measurement and consistent historical comparison of the Company's performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release. Forward-Looking Language Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, concerns with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, competition and other uncertainties the Company, its customers, and the industry in which they operate have experienced and continue to experience, detailed from time to time in the Company's Securities and Exchange Commission filings. For a discussion of such risk factors and uncertainties, see Item 1A, 'Risk Factors' in the Company's Annual Report on Form 10-K for the year ended September 30, 2024 and other reports filed by the Company with the Securities & Exchange Commission. The Company's Form 10-K for the year ended September 30, 2024 and other reports filed with the Securities & Exchange Commission can be accessed through the Company's website: or on the Securities and Exchange Commission's website: SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, coating, and machining. Consolidated Condensed Balance Sheets (Amounts in thousands, except per share data) (Unaudited) June 30, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 1,978 $ 1,714 Receivables, net of allowance for credit losses of $108 and $117, respectively 14,223 17,272 Contract assets 12,681 10,745 Inventories, net 7,404 6,230 Refundable income taxes 13 13 Prepaid expenses and other current assets 1,800 2,382 Current assets of discontinued operations — 15,967 Total current assets 38,099 54,323 Property, plant and equipment, net 22,860 26,261 Operating lease right-of-use assets, net 12,784 13,326 Goodwill 3,493 3,493 Other assets 53 357 Noncurrent assets of discontinued operations — 6,864 Total assets $ 77,289 $ 104,624 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt, net of unamortized debt issuance costs $ 2,951 $ 353 Promissory note — related party — 3,510 Revolver 8,372 20,142 Short-term operating lease liabilities 941 879 Accounts payable 8,949 11,574 Contract liabilities 2,061 2,879 Accrued liabilities (related party — nil and $880, respectively) 2,372 4,615 Current liabilities of discontinued operations — 10,058 Total current liabilities 25,646 54,010 Long-term finance lease, net of short-term 62 — Long-term operating lease liabilities, net of short-term 12,476 13,035 Deferred income taxes, net 333 154 Pension liability 2,300 2,465 Other long-term liabilities 627 645 Noncurrent liabilities of discontinued operations — 3,890 Commitments and Contingencies Shareholders' equity: Serial preferred shares, no par value, authorized 1,000 shares; zero shares issued and outstanding at June 30, 2025 and September 30, 2024 — — Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 6,180 at June 30, 2025 and 6,158 at September 30, 2024 6,180 6,158 Additional paid-in capital 11,853 11,775 Retained earnings 17,581 17,881 Accumulated other comprehensive income (loss) 231 (5,389 ) Total shareholders' equity 35,845 30,425 Total liabilities and shareholders' equity $ 77,289 $ 104,624 Expand Non-GAAP Financial Measures Presented below is certain financial information based on the Company's EBITDA and Adjusted EBITDA. References to 'EBITDA' mean earnings (losses) from continuing operations before interest, taxes, depreciation and amortization, and references to 'Adjusted EBITDA' mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in the United States of America ('GAAP'). The Company presents EBITDA and Adjusted EBITDA because management believes that they are useful indicators for evaluating operating performance, including the Company's ability to incur and service debt and it uses EBITDA to evaluate prospective acquisitions. Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial measures as analytical tools has limitations. Therefore, reviewers of the Company's financial information should not consider them in isolation, or as a substitute for analysis of the Company's results of operations as reported in accordance with GAAP. Some of these limitations include: Neither EBITDA nor Adjusted EBITDA reflects the interest expense or the cash requirements necessary to service interest payments on indebtedness; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements; The omission of the amortization expense associated with the Company's intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income (loss), net sales, and operating income (loss), to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net loss or cash flow from operations determined in accordance with GAAP. The Company's calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies. The following table sets forth a reconciliation of net loss to EBITDA and Adjusted EBITDA: Three Months Ended June 30, Nine Months Ended June 30, Dollars in thousands 2025 2024 2025 2024 Net income (loss) $ 3,408 $ 72 $ (300 ) $ (4,940 ) Less: Income from discontinued operations, net of tax 106 989 142 2,279 Income (loss) from continuing operations 3,302 (917 ) (442 ) (7,219 ) Adjustments: Depreciation and amortization expense 1,541 1,195 3,912 3,607 Interest (income) expense, net 391 905 1,289 2,065 Income tax expense 41 — 120 11 EBITDA 5,275 1,183 4,879 (1,536 ) Adjustments: Foreign currency exchange loss (gain), net (1) 5 (1 ) 4 — Other (income) expense, net (2) (479 ) 99 (404 ) 253 Gain on disposal of assets (3) — — — 4 Non-recurring severance expense adjustments (4) — 435 (19 ) 435 Equity compensation (4) 47 72 135 243 Pension settlement/curtailment benefit (5) 0 60 — 60 Transaction-related expense adjustments (6) — — (16 ) — LIFO impact (7) (470 ) 475 (606 ) 826 IT incident costs, net (8) — (628 ) — (605 ) Strategic alternative expense (9) — 79 — 399 Adjusted EBITDA $ 4,378 $ 1,774 $ 3,973 $ 79 Expand (1) Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated. (2) Represents miscellaneous non-operating income or expense, such as pension costs or other income from ERC. (3) Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company's books. (4) Represents the equity-based compensation expense recognized by the Company under the 2016 Plan due to granting of awards, awards not vesting and/or forfeitures and executive severance. (5) Represents expense incurred by its defined benefit pension plans related to settlement of pension obligations. (6) Represents credits related to transaction-related legal fees incurred primarily in connection with the unsuccessful attempt in which the Company was the acquisition target. (7) Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out ('LIFO') method. (8) Represents incremental information technology costs (and credits) as it relates to the cybersecurity incident and loss on insurance recovery. (9) Represents expense related to evaluation of strategic alternatives. Expand Reference to the above activities can be found in the consolidated financial statements included in Item 8 of the Company's Annual Report on Form 10-K.
