Q3 2025 Astec Industries Inc Earnings Call
Speaker #2: Hello , and welcome to the Aztec Industries . Third quarter 2020 earnings call . As a reminder , this conference call is being recorded .
Speaker #2: It is my pleasure to introduce your host , Steve Anderson , senior vice president of administration and investor relations . Mr. Anderson , you may begin .
Speaker #3: Thank you , and good morning , everyone . Joining me on today's call are Yaacov for our chief executive officer and Brian Harris chief Financial officer .
Speaker #3: In just a moment , I'll turn the call over to yaku to provide his comments . And then Brian will summarize our financial results .
Speaker #3: For your convenience , a copy of our press release and presentation have been posted on our website under the Investor Relations tab at .
Speaker #3: Turning to slide two , I'll remind you this morning that our discussion will contain forward looking statements that relate to the future performance of the company , and these statements are intended to qualify for the safe harbor liability established by the Private Securities Litigation Reform Act .
Speaker #3: Such statements are not guarantees of future performance and are subject to certain risks , uncertainties and assumptions . Factors that could influence our results are highlighted in today's financial news release , and others are contained in our filings with the US Securities and Exchange Commission .
Speaker #3: As usual , we ask that you familiarize yourself with those factors in an effort to provide investors with additional information regarding the company's results .
Speaker #3: The company refers to various US GAAP and non-GAAP financial measures , which management believes provide useful information to investors . These non-GAAP measures have no standardized meaning for scribed by US .
Speaker #3: GAAP and are therefore unlikely to be comparable to the calculation of similar measures of other companies . Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures .
Speaker #3: A reconciliation of GAAP to non-GAAP results are included in our news release , and the appendix of our slide presentation . And now turning to slide three .
Speaker #3: I'll turn the call over to Yaaku .
Speaker #4: Thank you . Steve . Good morning , everyone , and thank you for joining us . We were pleased to post another solid quarter evidencing our focus on delivering consistent profitability and growth .
Speaker #4: Before we start , I would like to thank our combined Aztec team as we continue to execute . As a reminder , our results now include data source , which we completed on July 1st .
Speaker #4: On slide four , we present a summary of our third quarter performance . This quarter , we continued our positive momentum with increased net sales , increased adjusted EBITDA , and adjusted earnings per share , adjusted EBITDA was 27.1 million , up 9.7 million , or 55.7% , from the third quarter of 2020 .
Speaker #4: For adjusted EBITDA , margins increased to 7.7% , a gain of 170 basis points . While adjusted earnings per share reached $0.47 for a year over year increase of 30.6% .
Speaker #4: Our backlog at quarter end was 449.5 million , representing a sequential increase of 68.7 million , 64.1 million , of which was due to the addition of pterosaurs .
Speaker #4: While the backlog in our legacy infrastructure solutions and Material solutions segments both increased slightly . We continue to see customers order closer to their desired delivery dates due to a combination of our shorter lead times and finished goods inventory on hand .
Speaker #4: Within the infrastructure Solutions segment , asphalt plants , concrete plants , heaters and burners deliver strong results . And contributed to margin expansion , while forestry and mobile paving equipment face headwinds due to challenging end market conditions .
Speaker #4: Part sales for the infrastructure Solutions segment were strong , posting a 14.8% quarter over quarter increase . The Material Solutions segment includes the successful integration of pterosaurs .
Speaker #4: Backlog in this segment has been stable for the past five quarters . We have noticed improved customer sentiment due to the recent movement in interest rates and our part sales mix increased 670 basis points with the addition of pterosaurs .
Speaker #4: Lastly , you may recall our normal third quarter experiences , seasonality as our customers are busy in the field . We were pleased to drive enhanced year over year performance , resulting in 170 basis point increase in our adjusted EBITDA margin .
Speaker #4: Our best since the third quarter of 2017 . On slide five , we outlined the third quarter highlights and present our updated outlook for the full year .
Speaker #4: As previously highlighted , higher net sales contributed to year over year increases in adjusted EBITDA margin and adjusted earnings per share . And we posted adjusted ROIC of 12.3% .
Speaker #4: Given our solid performance through the first three quarters of the year . We are raising the lower end of our full year guidance from 123 million to 132 million , while maintaining the upper range at 142 million .
Speaker #4: Our updated outlook is based on the current operating environment , which I will cover on the next slide . Slide six provides an overview of the current operating environment .
Speaker #4: There are several external factors affecting the markets and which Aztec operates , including potential opportunities as well as challenges . One opportunity is the ongoing funding provided by the current Federal Highway Bill in the United States .
Speaker #4: Multi-year commitments for Federal road and bridge projects provide stability for Aztec customers , many of which have reported substantial backlogs of work . In addition , the demand for aggregate concrete and asphalt used in other public , residential and non-residential construction projects is encouraging .
Speaker #4: All of these are good examples of projects requiring materials . Process . With the equipment we build at Aztec Aztec , recent acquisition of pterosaurs demonstrates the potential of further inorganic growth within our disciplined financial framework , and the one big , beautiful bowl enacted in the United States earlier this year extended expiring provisions from the 2017 Tax Cuts and Jobs Act .
Speaker #4: The reinstated Business Tax benefits , such as accelerated and R&D tax credits , are expected to benefit many of our customers . Lastly , the increased mining activity of rare earth minerals in the United States presents an opportunity for Aztecs material solutions products as minerals are embedded in ore bodies , which must be crushed , screened and conveyed .
Speaker #4: Current challenges include fluctuations in tariffs and any related uncertainty they create . We expect that last week's federal Open Market Committee decision to reduce interest rates will further improve customer sentiment .
Speaker #4: On slide seven , we remind you that Aztec operates in favorable markets within the United States . Contract awards from state and local governments serve as key predictors of upcoming construction projects .
Speaker #4: Those projects typically break ground within 30 to 60 days of being awarded , although the actual construction timeline can extend over several years .
Speaker #4: Based on the project's size and complexity . As of August 30th , 2025 , approximately 230 billion , or 66% of infrastructure investment and Jobs Act funds have been committed , with 150 billion or 44% already allocated .
Speaker #4: Our reports that obligation rates remain strong , indicating that significant funding will continue to flow even after 2026 . The current surface transportation law is set to expire on October 1st , 2026 .
Speaker #4: On September 18th . Aztec team members participated in Hill Days , co-sponsored by the National Asphalt Paving Association . National Stone , Sand and Gravel Association , and National Ready Mixed Concrete Association .
Speaker #4: After the event , they confirmed federal transportation leaders remain optimistic about passing a new transportation bill next year . And are committed to securing presidential approval well before the deadline .
Speaker #4: These developments are promising for Aztec as a specialized provider in the rock to road sector . Ongoing infrastructure upgrades , fuel stable , long term demand for our capital equipment , aftermarket parts and digital solutions .
Speaker #4: Our strong reputation in the infrastructure market , especially in aggregates and road and bridge construction , positions us well for the future . Slide eight provides a summary of how we actively manage the ongoing shift in the current tariff landscape .
Speaker #4: Aztec maintains a proactive approach to minimizing tariff effects. For example, our one Aztec procurement team requires suppliers to justify any price increases, and we are actively negotiating every purchase.
Speaker #4: We have also implemented a new pricing measure where necessary and will continue to evaluate the situation to safeguard our margins . We are consistently pursuing dual sourcing and alternative sourcing options and are working to realign our supply chain , including reshoring to the US when possible .
Speaker #4: Ongoing management of our manufacturing footprint is also a priority so far , our mitigation strategies have neutralized tariff related impacts on our margins .
Speaker #4: These efforts are evident in our results and we anticipate our initiatives will remain effective throughout the rest of the year . As you know , the tariff environment is fluid and creates an element of uncertainty for future periods .
Speaker #4: That said , we will continue to be proactive with our mitigation strategy in order to neutralize the impact of tariffs and to limit potential impacts to manufacturing inefficiencies .
Speaker #4: As such, our revised full-year adjusted EBITDA guidance noted on slide five reflects our current perspective on our operating environment, including the impact of tariffs.
Speaker #4: Slide nine provides an update on our pterosaurs integration . I could not be more pleased with our our team members are working together .
Speaker #4: Step one of onboarding of pterosaurs employees was to ensure a seamless transition to the Aztec payroll and benefit system that has been completed successfully .
Speaker #4: Additional steps are listed on the slide and include harvesting synergies , including procurement opportunities . We have also made investments in high turn inventory to further drive enhanced parts flow rates .
Speaker #4: As a reminder , we define full rates as having the port ready to ship within 24 hours of receiving the order . Although it has only been a few months since welcoming pterosaurs to the Aztec family , our combined team is already in the process of adding to our part sales force , aligning our sales channel and cross-selling efforts , developing and funding new products and identifying factory utilization opportunities .
Speaker #4: We expect most synergies to show up in 2026 and are very satisfied with our progress thus far . On slide ten , we show our historical backlog information on a sequential basis .
Speaker #4: Backlog continued to evidence the ability in the infrastructure solutions and legacy material solutions segment . Data source contributed 64.1 million to Material Solutions , and was the primary growth driver to our consolidated backlog .
Speaker #4: The backlog in our infrastructure Solutions segment reflects a combination of strong invoicing for asphalt and concrete plants , partially offset by weaker demand for mobile paving and forestry equipment in the Material Solutions segment .
Speaker #4: Backlog , net of pterosaurs , remained steady at approximately 126 million . Looking ahead , we anticipate growing demand for material Solutions products in the upcoming quarters .
Speaker #4: Slide 11 is presented net of pterosaurs and show sequential and quarter over quarter increases in consolidated implied orders . And our book to bill ratios .
Speaker #4: Both segments contributed to the quarter over quarter improvements . While the infrastructure Solutions segment drove the sequential increase on a consolidated basis . We are pleased to show book to bill exceeded 100% in both the infrastructure solutions and material Solutions segments .
Speaker #4: With that , I'll hand the call over to Brian , who will share further insights into our third quarter financial performance . Thank you .
Speaker #5: Yaku , and good morning , everyone . The next three slides provide both Q3 and trailing 12 month data , which we feel provide an excellent view of the underlying financial trends in our business .
Speaker #5: Turning to our consolidated financial results presented on slide 13 . Net sales increased by 20.1% , which was due to strong demand for asphalt and concrete plants and the inclusion of pterosaurs .
Speaker #5: Demand for forestry and mobile paving equipment continues to be soft due to a relatively high interest rate environment and an extended global slowdown in end markets .
Speaker #5: Over the trailing 12 month period , net sales increased 6.7% . We are pleased to report an adjusted EBITDA of 27.1 million for the third quarter , up 55.7% from 17.4 million in the same period last year .
Speaker #5: Looking at the trailing 12 months adjusted EBITDA margin grew 49% . Our third quarter adjusted EBITDA margin grew 170 basis points over the same period in 2024 , and on a trailing 12 month basis , adjusted EBITDA margin grew 300 basis points to 10.5% .
Speaker #5: Adjusted earnings per share for the third quarter were $0.47 , a 30.6% increase over the $0.36 reported in Q3 20 . Four , while adjusted earnings per share grew by 48.7% on a trailing 12 month basis .
Speaker #5: Turning to the infrastructure solutions segment outlined on slide 14 . The third quarter came in strong , with a 17.1% increase over the third quarter in 2020 .
Speaker #5: For growth was generated in both equipment and parts sales for the quarter . Solid demand for asphalt and concrete plants helped drive increased domestic sales , while international sales were stable .
Speaker #5: However , forestry and paving remained somewhat depressed . Net sales for the trailing 12 month period grew 8.8% . Segment operating adjusted EBITDA and EBITDA margin grew quarter over quarter and on a trailing 12 month basis , our adjusted operating margin for the Infrastructure Solutions segment grew to 12.4% when compared to the same period in 2020 .
Speaker #5: Four . For an increase of 290 basis points . Segment operating adjusted EBITDA margin on a trailing 12 month basis reached an impressive 17.2% versus 12.7% in 2020 .
Speaker #5: For the 450 basis point improvement, the result was primarily due to strategic pricing, operational excellence initiatives, and effective expense management. Moving on to slide 15.
Speaker #5: As previously mentioned , the Material Solutions segment now includes pterosaurs . Net sales for the quarter increased 30.5 million , or 24.1% . Adjusted EBITDA for the segment increased 6.2% .
Speaker #5: However , adjusted EBITDA margin showed a 170 basis point decline due to elevated profitability in the third quarter of 2020 . For stemming from the one time release of $1.9 million of litigation reserves .
Speaker #5: On a trailing 12 month basis . Increases were seen in net sales segment operating adjusted EBITDA and segment operating adjusted EBITDA margin , as shown on slide 16 .
Speaker #5: Our balance sheet remains strong , supported by a substantial liquidity at quarter end . We held 67.3 million in cash and cash equivalents , and had 244.8 million in available credit , resulting in total liquidity of 312.1 million .
Speaker #5: Our net debt to adjusted EBITDA of approximately two times is well within our target range of 1.5 to 2.5 times . This provides us with the capacity for continued organic and inorganic growth for modeling purposes , you should take into account the following full year ranges .
Speaker #5: Adjusted EBITDA of 132 million to 142 million . Effective tax rate between 24% and 27% . Capital expenditures between 25 and 35 million and the following ranges for Q4 .
Speaker #5: Adjusted SG&A of 65 to 73 million . Depreciation and amortization of 37 million to 42 million . And I'll now hand the call back to Jacob .
Speaker #4: On slide 17 . We provide a glimpse of our recently released 2025 corporate Sustainability report . As you will see in the report , we are committed to innovate our products and technologies to help our customers achieve their efficiency and cost reduction goals through sustainability investments .
Speaker #4: Respect our natural resources , ensure the safety and well-being of our employees , and uphold employee satisfaction by demonstrating our devotion to our core values .
Speaker #4: Slide 18 provides an overview of the key investment highlights for Aztec. We take pride in Aztec's ongoing reputation as a reliable provider of world-renowned brands and top-tier solutions for our customers.
Speaker #4: We continue to maintain a high level of engagement with our customers while they remain somewhat cautious . Their outlook is positive and customers are optimistic about the ongoing activity in the construction markets .
Speaker #4: We are also proud that our focus on operational excellence is yielding results, with many benefits still ahead. Efforts in manufacturing and procurement are enhancing efficiency, and we are seeing favorable trends in adjusted EBITDA.
Speaker #4: Our business is driven by several exciting growth opportunities , including expanding our reoccurring aftermarket parts business , which remains a key focus for the Aztec team advancing our strong pipeline of new products .
Speaker #4: Please mark your calendars to visit the Aztec booth at the 2026 Expo Trade Show in Las Vegas from March 3rd through March 7th, 2026, where we will showcase various new products.
Speaker #4: The reliability offered by multi federal and state funding for interstate and highway projects in our primary market , the United States multiple opportunity for expansion in both existing and emerging international markets .
Speaker #4: Strategic inorganic growth prospects that align with our financial objectives . As Brian mentioned , our solid balance sheet gives us flexibility to support growth initiatives and effectively manage our leverage .
Speaker #4: With that . Operator , we are ready for questions .
Speaker #2: At this time , if you would like to ask a question , press star followed by the number one on your telephone keypad .
Speaker #2: If you would like to withdraw your question , press star one . Again , we'll pause for just a moment to compile the Q&A roster .
Speaker #2: Your first question comes from Steve Ferazani with Sidoti .
Speaker #6: Morning , Jaco and Brian , appreciate the detail on the call this morning . First one , general question . First , general question in terms of you're raising the low end of guidance .
Speaker #6: Was there any worries you saw that sort of dissipated in three ? Q or are you seeing something particularly better in four ? Q that gave you the confidence to raise that low end ?
Speaker #7: Yeah . No . Steve . Good , good question . You know , as a reminder , when when we did the Q2 earnings call , you know , we spoke about the fact that we still had quite a bit of of gaps in , in our capacity to fall , you know , at the end of or when we had the Q2 call , you know , fortunately for us , that that filled in very nicely and with our short lead times , you know , our teams have the ability to deliver those in Q4 .
Speaker #7: So , you know , we have we have the capital orders to deliver Q4 sales that that we need to , you know , to deliver that new range .
Speaker #6: You know , when I look at your your book to bill and order rates in three Q at least even the last two years , there was a change this quarter versus the last two years in terms of orders and even in is did something change this year ?
Speaker #6: Because typically this has been seasonally weaker for the last two years ?
Speaker #7: Yeah . So I don't think we've noticed anything specific . You know , we definitely saw , you know , a lighter or a different booking process from our customers .
Speaker #7: As I said , you know , if we if we look at where we were in Q2 , we still had substantial gaps in our , in our capacity to full and obviously that came through during the third quarter .
Speaker #7: You know , Steve , I think the other thing is , is , you know , we we are getting to the tail end of what I want to say , the uncertainty around tariffs and I think customers are just getting to a point where they know they need to make a decision .
Speaker #7: And obviously we we were the beneficiaries of that .
Speaker #6: That's helpful . The one to me was a negative surprise that even if I back out the litigation expense from the year ago , Miss margins still would have been somewhat flat .
Speaker #6: Our expectation was pterosaurs would have would would be accretive to margins . Can you tell us if they were in three ? Q and your expectation on the timing of of synergy realization , now that you've working through the integration ?
Speaker #7: Yeah , no , absolutely . So , you know , first of all , I want to say we we could not be happier with , with what we're seeing of the data source team now that they part of our organization , we are excited about the work that our legacy team is doing .
Speaker #7: You know , obviously last year we had that one release that gave the benefit to that . You know , quarter over quarter .
Speaker #7: Obviously , you will always have some swings . Steve . We we are very excited about the underlying trends that we are seeing .
Speaker #7: And , you know , I think you will see you will see the margins come . Remember , this was the first quarter that data source was on our side .
Speaker #7: The legacy sales was a little bit lower compared to last year . So obviously that that has an effect . But you know , it's early days .
Speaker #7: We're excited about the the work the team is doing . The the data source margins were accretive . So there's nothing that we have seen that that raises our eyebrows now that we own them for for the last , for the last three months .
Speaker #7: So so yeah , I think I think in the next coming quarters , you know , the full effect of data source will show up .
Speaker #6: And your expectation , any changes in what you expect can be realized , synergies in the timing of realizing them ?
Speaker #7: No , no . We you know , we have good visibility of of the synergies that we communicated during the the deal announcements .
Speaker #7: You know , some of the synergies are are realized already . So we've seen some benefit . Obviously they will throw flow through over a 12 month period .
Speaker #7: And we expect to see quite a bit of synergies next year . Already .
Speaker #6: Okay . You may not have this number , but any the breakdown of how much parts is a percentage of revenue per segment now I'm assuming it's much .
Speaker #6: It will now be at least higher on the mix side .
Speaker #7: Yes . So we I think we we mentioned that in the release that may have jumped about 670 basis points . So , you know , as a company now , I think we , we bounced to 32% or so .
Speaker #7: So I think I think that number is going to consistently tick up as , as it reflects in our rolling numbers . So so it's definitely having the effect that we were hoping for .
Speaker #7: Steve .
Speaker #6: Great . And if I could get one more in in terms of tariff uncertainty on your end , given the addition of the section two , three , two tariffs , is that getting a little bit harder to offset or .
Speaker #6: No changes ?
Speaker #7: Yeah , I mean , it's complicated . I can tell you I can tell you that . But you know , we we we feel that we have a very good understanding of it .
Speaker #7: You know , our raised . You know , lower end of the range takes into consideration how we think we can deal with with the tariff .
Speaker #7: Steve . So you know , one thing I will say is , is the flow through is real and and the actions that our teams have taken on , on pricing and taken on , you know , looking for alternative suppliers have really positioned us well to , to to mitigate the , the tariff increases .
Speaker #7: And I think , I think we're pretty well positioned for next year .
Speaker #6: Great . Thanks , Jack .
Speaker #7: Okay . Thank you again .
Speaker #2: If you would like to ask a question , press star . Then the number one on your telephone keypad . Your next question comes from Steven Ramsey with Thompson Research Group .
Speaker #8: Good morning , everyone , and glad to be on the call . Thanks for the time .
Speaker #7: Maybe Steven .
Speaker #8: To start . Yeah . Good morning . I wanted to start with the parts . Results within the infrastructure segment . Good results there .
Speaker #8: Can you maybe parse out a bit the volume and price contribution to that 15% growth, and maybe kind of the push-pull dynamics there of better internal execution and reaching customers versus just natural demand that comes from the plants?
Speaker #7: Yeah , yeah . No good questions Steven . You know , one thing I will say is is we've been working on driving our parts business for quite a while now .
Speaker #7: And you know , those efforts are starting to pay off . So , you know , obviously that's a big piece of that growth .
Speaker #7: I mean , Brian's pricing wise , I don't think we have broken that out specifically , but I will say if I look at it , we've we've basically adjusted for inflation over the last over the last year or so .
Speaker #7: And then obviously , you know , Steven , where we have seen . Terrace tariff increases coming through , you know that that have been reflected and overall I will say probably 4 to 5% cost of goods sold effect that that that show up partially in that number .
Speaker #7: But I will say the majority of that is , is is due to the work the teams are doing to , to grow , to grow .
Speaker #7: That parts business .
Speaker #8: Okay . That's excellent . That's helpful . And you called out asphalt and concrete plant strength in the quarter on a percentage basis was one a bigger driver than another .
Speaker #7: No , I , I won't say that . You know , we're very fortunate that both those those segments are , are , are very strong .
Speaker #7: So no I will not say that , you know , obviously asphalt asphalt plant sales , you know , when you sell an asphalt plant , depending on the size , it can be eight , $10 million .
Speaker #7: So , so you just have one additional one and it makes a big swing in a quarter . So but no , I don't think there's a there's a trend more to the one versus the other .
Speaker #8: Understood . Understood . Flip into the material segment . You've talked about the dealer inventory dynamic . Can you maybe share the incremental changes that you're seeing there ?
Speaker #8: And is this something that you expect to be washed out in the fourth quarter , or is this more of a 2026 dynamic .
Speaker #8: And then maybe one more that would be good to get insight on is there a source within the dealer channel ? Are they experiencing the same dynamics ?
Speaker #7: Yeah , yeah . So let's talk legacy . First . You know , we've now said for the last the last two quarters , we've actually I think reached a period where our dealer inventory for Mis is pretty healthy .
Speaker #7: The type of inventory that our dealers have or the right level , we've actually started to see some dealer stocking again . So I think we're in a pretty good position , Steven , when it comes to dealer inventory , obviously , you know , there's always some some movements that that takes place dealer to dealer .
Speaker #7: But we , we , we we pretty good shape and you know , the other thing that I'm excited about in the Ma side is , you know , historically we were very strong in our system sales .
Speaker #7: So , you know , a system is where you put a , you know , a significant amount of equipment together and provide a customer a whole solution .
Speaker #7: And , you know , there was a period in time where Aztec lost the focus on that . We brought that focus back here in the last 2 or 3 years .
Speaker #7: And and that is starting to show up as well . And obviously , you know , that is something that doesn't necessarily get consumed out of inventory .
Speaker #7: So you have more of a flow through effect from us to the dealer . So as , as that business start to flow through , I think , you know , the , the dependency we have on dealer inventory for the pure mobile units should become less and less on the second question , TSG so TSG has as a as a channel that uses , I want to say all all the channels possible .
Speaker #7: You know , they sell direct in some areas . They do go through dealers in some areas we have some agents in some areas .
Speaker #7: So we're busy working through that . There's a possibility that some of their sales in the future will will go through our dealer channel .
Speaker #7: But the product is a little bit different . It's more project related . So I don't expect besides spare parts , that our dealers will stock a lot of pterosaurs equipment going forward .
Speaker #8: Okay , okay . That's helpful . I wanted to get some more details on the fill rates with pterosaurs . You talked about synergies coming in in 2026 for that business , and their parts fill rates .
Speaker #8: Clearly a lot of upside for them to reach core Aztec levels . Can you talk about the timing on how you expect Parasource fill rates to improve over the coming quarters .
Speaker #8: And years ?
Speaker #7: Yeah , absolutely . I mean , that's an effort that started day one . As you know , I'm personally very passionate about that .
Speaker #7: And and fortunately , the pterosaurs team as well , you know , they know having parts on the shelf makes a big difference .
Speaker #7: There's a big gap between what they have as performance versus what what we are having today . And , you know , if I look back for for Aztec , you know , it took us 18 to 24 months to get to where we are today .
Speaker #7: I think this is going to be a lot faster than that . So I will say within the next 12 months , we're going to get them very close to to our full rates .
Speaker #7: And , and obviously , you know , we believe that that will have a good effect on their on their performance going forward .
Speaker #7: So the team is the team is engaged . The work has started . We've identified where to go and you know , I will continue to keep keep the the market updated on the performance .
Speaker #7: There .
Speaker #8: Excellent . That's good . Last last one for me . You called out rare Earth mining as a potential demand catalyst . Have you seen any of this to date or in conversations ?
Speaker #8: And are there internal moves you're making within product development or within channels to take advantage of this ?
Speaker #7: Yeah , yeah , we actually received our first order . You know , one , one of the companies has been in the news a lot lately because the government took a took a stake in that .
Speaker #7: We got a , we got a nice order from them and just , just here recently . So it's real Steven . It's it's it's coming .
Speaker #7: You know investments are happening . Happening and and the good thing for us is , is our equipment can do the work today .
Speaker #7: So there's not a need for , for a major redevelopment that needs to take place . So , you know , our dealer network are very entrepreneurial .
Speaker #7: So they are very aware of all the opportunities that's coming up in their markets . And and they're taking advantage of that . And , and you know , we we are seeing it .
Speaker #7: So it's not just talk. It's actually orders.
Speaker #8: It's great to hear . Thank you for the time .
Speaker #7: Thank you .
Speaker #2: That concludes our Q&A session . I'll now turn the conference back over to Mr. Anderson for closing remarks .
Speaker #7: Thank you .
Speaker #3: Carly , we .
Speaker #7: Do .
Speaker #3: Appreciate your participation in our conference call this morning . And thank you for your interest in Aztec . As today's news release states , this conference call has been recorded .
Speaker #3: A replay of the conference call will be available through November 19th , 2025 , and an archived webcast will be available for 90 days .
Speaker #3: The transcript will be available under the Investor Relations section of the Aztec Industries website . Within the next five business days . This concludes our call .
Speaker #3: I'm happy to connect later . If you have additional questions . Thank you all . Have a good day .