Latest news with #SteelWire
Yahoo
14-05-2025
- Business
- Yahoo
Bekaert - Trading update for the first three months of 2025
Trading update for the first three months of 2025 Navigating challenging markets successfully Financial highlights Q1 2025 consolidated sales of € 991 million (-3% vs Q1 2024) driven by: Like for like volumes were down -1% (€ -12 million) Price-mix reduced sales by -1% (€ -11 million) Pricing impact from the pass-through of lower input costs was -2% (€ -23 million) Portfolio change <+1% (€ +4 million) Currency impact +1% (€ +9 million) Sales from joint ventures (non-consolidated) of € 214 million (-2% vs Q1 2024) Central overhead and operating cost savings partially offsetting margin pressures from the challenging market environment Lower capital expenditure requirements for 2025, growth platforms well positioned Intensive working capital focus to maintain robust cash flows Balance sheet remains strong with low financial leverage Dividend of € 1.90 per share proposed at AGM Ongoing two-year € 200 million share buyback program with around € 50 million purchased to date Operational and strategic highlights Rubber Reinforcement - strong performance in China offsetting volume decreases in Europe and North America; continued overcapacity and uncertainty over tariffs Steel Wire Solutions - solid sales performance both on volumes and mix BBRG - production output reliability maintained for Steel Ropes in UK and North America; tariff uncertainty delaying customer orders in Ropes and lower hoisting demand in China Specialty Businesses - Sustainable Construction experiencing project delays in flooring in North America, while adoption accelerates in growth markets; as expected, lower contribution from Ultra Fine Wires Steel Wire Solutions disposal in Costa Rica, Ecuador and Venezuela on track Tariff impacts The introduction of tariffs, the threat of further tariffs and escalating trade tensions are creating significant uncertainty for Bekaert, its suppliers and customers. Bekaert is a global business which benefits from a relatively high proportion of local sourcing and local production, and a business model where it is typical to pass on additional costs such as raw material or energy costs to its customers. The group is successfully negotiating increased pricing with its customers to include the additional tariffs. The financial impact of the tariffs to date has been minimal. In several business segments, most notably construction, customers are delaying orders or investment decisions awaiting clarity on the tariff situation. Beyond the simple application of tariffs to products and raw materials, there are larger, long-term questions as to how these tariffs will affect end market demand, change trade flows between regions, encourage substitution of alternative products and materials, and ultimately impact economies around the world. How these longer-term effects will impact is very uncertain at this stage and could be material. Outlook As outlined previously, the difficult market conditions of the second half of 2024 continued into Q1 2025 and in response Bekaert took actions to protect margins and cash flows. This weak business environment is expected to persist with the ongoing uncertainty around tariffs, global trade and macro-economic outlook. To date, Bekaert has been able to mitigate the impact of tariffs through local sourcing and production and with the direct pass through of tariff effects on raw materials and finished goods. Therefore, at the currently anticipated tariff levels and excluding any impacts from additional tariffs, the indirect and longer term impacts of tariffs or further economic deterioration, the group expects stable sales and EBITu margins for the full year 2025 compared with 2024, with a more equally weighted first and second half split. Conference call for analysts and investors Yves Kerstens, CEO, and Seppo Parvi, CFO, will present Bekaert's Q1 2025 trading update to analysts and investors at 09:00 a.m. CET on Wednesday 14 May. This presentation can be accessed live upon registration (registration link) and will be available on Bekaert's website after the event. Attachment p250514E - Trading update Q1 2025
Yahoo
11-05-2025
- Business
- Yahoo
IIIN Q1 Earnings Call: Shipment Growth and Tariff Changes Drive Outperformance
Steel wire manufacturer Insteel (NYSE:IIIN) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 26.1% year on year to $160.7 million. Its non-GAAP profit of $0.55 per share was 90% above analysts' consensus estimates. Is now the time to buy IIIN? Find out in our full research report (it's free). Revenue: $160.7 million vs analyst estimates of $149.9 million (26.1% year-on-year growth, 7.2% beat) Adjusted EPS: $0.55 vs analyst estimates of $0.29 (90% beat) Adjusted EBITDA: $19.19 million vs analyst estimates of $12.51 million (11.9% margin, 53.4% beat) Operating Margin: 8.5%, up from 6.2% in the same quarter last year Free Cash Flow was -$5.54 million compared to -$580,000 in the same quarter last year Market Capitalization: $693.8 million Insteel's first quarter results reflected substantial momentum in shipment volumes and improved cost management, as discussed during the company's recent earnings call. Management identified stronger demand in construction end markets and operational efficiencies following a recent acquisition as the main contributors to the quarter's above-expectation revenue and profit. CEO H.O. Waltz highlighted that the acceleration in business activity was 'not reflected in the broader macroeconomic indicators' but remained tangible through customer engagement and robust order books. Looking ahead, management expressed cautious optimism for the remainder of the year, noting that the primary risk lies in the evolving U.S. trade and tariff environment. Waltz pointed to ongoing uncertainties surrounding raw material supply and the impact of new or adjusted tariffs, especially relating to Section 232, as key variables that could influence future performance. The company's ability to manage these inputs and maintain production levels will be central to meeting its targets in upcoming quarters. Management emphasized that shipment growth and successful integration of acquired assets were key drivers behind the quarter's performance and provided updates on tariff impacts and supply chain trends. Construction Demand Recovery: Recovery across construction end markets fueled significant shipment volume gains and supported higher production utilization rates, offsetting previous periods of industry softness. Tariff Policy Changes: The extension of Section 232 tariffs to finished products, such as PC strand, addressed a years-long competitive disadvantage and is expected to improve Insteel's market position relative to offshore competitors. Raw Material Supply Constraints: Tight domestic supply of hot-rolled steel wire rod, the company's primary input, remains a concern. Management noted two U.S. mill closures and limited alternative sources, increasing the need for imports and raising supply chain risks. Acquisition Integration: Integration of two newly acquired manufacturing facilities has been completed, with operational and freight synergies already being realized. The company closed one facility but reported that the remaining assets are operating efficiently. Capital Expenditure Adjustments: Management reduced the full-year capital spending target to $17 million from $22 million, citing acquisition-related resource allocation and a focus on projects that support product expansion and cost reduction. Management's outlook for the rest of the year centers on demand resilience in construction markets, the impact of tariff changes, and ongoing supply chain uncertainties. Tariff and Trade Policy Impact: The company expects the revised Section 232 tariffs to benefit its competitive stance, but any future policy changes or reciprocal tariffs could increase input costs or disrupt capital sourcing. Raw Material Availability: The ability to secure adequate supplies of steel wire rod will dictate production volumes and margin stability, especially if domestic shortages persist or imports are delayed. End-Market Trends: Management is monitoring commercial and public infrastructure construction trends, noting early signs of improvement in commercial backlogs. However, macroeconomic indicators remain mixed, and future demand could be influenced by broader economic shifts. Julio Romero (Sidoti & Company): Asked about current operating conditions and how management is addressing tariff uncertainty and supply chain challenges; management said the primary constraint is raw material availability, but current demand and order books remain robust. Julio Romero (Sidoti & Company): Inquired about the disconnect between weak macro indicators and strong company performance; management explained that customer activity and backlogs are solid, even if broader data lags or diverges. Julio Romero (Sidoti & Company): Sought perspective on pricing dynamics in the current environment; management stated that the extension of Section 232 tariffs to finished products is a net positive but acknowledged ongoing disadvantages due to global steel price differences. Tyson Bauer (KC Capital): Compared underlying growth drivers now versus during the pandemic; management noted current growth is based on genuine shipment and volume gains rather than artificial inventory or pricing effects. Tyson Bauer (KC Capital): Asked if shipment growth, higher utilization, and pricing could align to support margins in coming quarters; management agreed these factors are favorable in the near term, subject to raw material supply constraints. Going forward, the StockStory team will be watching (1) the company's ability to secure sufficient raw material supplies amid tight domestic markets and import lead times, (2) the operational impact and margin effects of new and existing tariffs, and (3) continued shipment growth across construction end markets. Monitoring the integration benefits from recent acquisitions and any shifts in capital spending priorities will also be important for tracking execution against Insteel's strategic objectives. Insteel currently trades at a forward P/E ratio of 18.2×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
