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Operator: Good day, and thank you for standing by. Welcome to the Q1 2026 Quanex Building Products Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question-and-answer session. To ask a question, please press 11 on your telephone, and wait for your name to be announced. To withdraw your question, please press 11 again. I would now like to hand the conference over to your speaker today, Scott Zuehlke, Senior Vice President, CFO and Treasurer. Thanks for joining the call this morning. Scott Zuehlke: On the call with me today is George Wilson, our Chairman, President and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance, and Quanex Building Products Corporation undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website. I will now turn the call over to George for his prepared remarks. George Wilson: Thanks, Scott, and good morning to everyone on the call. Before beginning my commentary on our first quarter results, I would like to take a moment to recognize and thank Susan Davis for her many years of dedicated service as a Board member to Quanex Building Products Corporation and its shareholders. Her commitment, insight, and guidance have been invaluable to our organization. Susan consistently served as a steadfast voice for shareholders during our transformation from a metals company to a pure-play building products company and through three CEO transitions and several acquisitions. Her perspective and presence in the boardroom made a meaningful impact, and she will be greatly missed. On behalf of the board and the entire organization, we wish her all the best in her retirement. Turning now to our fiscal first quarter, market conditions remained soft and company performance was in line with our expectations. As is typical given the seasonality of our business, the first quarter is our most challenging from a volume standpoint. The holidays, coupled with the onset of winter weather, consistently create headwinds in our Q1, and this year was no exception. From a broader perspective, challenges in the global macroeconomic environment and the markets we serve continued to impact results. The most significant challenge continues to be end consumer confidence. While inflationary pressures, labor costs, and certain raw material costs have started to moderate, energy prices have risen. In addition, heightened geopolitical tensions, particularly in recent days, are contributing to a more cautious consumer environment worldwide. Despite the near-term headwinds, the longer-term underlying fundamentals for the residential housing sector remain constructive. In addition, inflation appears to be stabilizing, and there is an increasing expectation of additional rate cuts from the Federal Reserve this year. We continue to believe the structural drivers supporting both new construction and the repair and replacement markets remain intact. At this time, we do not anticipate a deeper downturn in the end markets we serve. In Europe, economic data from third-party sources point to early signs of stabilization and gradual recovery across most countries, which we view as an encouraging development as we look ahead. Now turning to our performance in 2026. In the Hardware Solutions segment, our focus is centered on two key priorities: stabilizing operational performance and strengthening our commercial organization, including the finalization of go-to-market strategies across our international markets. As previously disclosed last year, we identified an operational issue at our hardware facility in Monterrey, Mexico that required some incremental capital to remediate. We are pleased to report that our efforts have advanced to the point where we believe the plant is now stable, and we do not expect to provide updates on this matter going forward. Within the Extruded Solutions segment, our focus has been on advancing new product development initiatives, evaluating adjacent market opportunities, and relaunching and repositioning our Schlagel product lines. We are very encouraged by the progress being made across each of these areas as they are central to achieving our profitable growth objectives. These initiatives are expected to strengthen our competitive positioning and expand our addressable market over time. I anticipate being able to share additional details on new product launches and commercialization milestones later in the year. In the Custom Solutions segment, we continue to advance several initiatives designed to support future growth. More specifically, in our cabinet components operation, the primary focus has been on driving operational efficiencies to successfully integrate recent market share gains and ensure that we scale effectively. Within our access solutions operations, efforts have centered on optimizing operating methods to enhance process consistency, quality, and on-time delivery. And in our mixing and compounding operations, we remain focused on new products and chemistry development. These initiatives are enabling us to expand into adjacent markets that demand highly engineered solutions supported by strong technical expertise and service. Together, these efforts position the Custom Solutions segment to deliver improved performance while building a stronger foundation for sustainable growth. Looking at our corporate functions, our newly created commercial and operational excellence teams are now focused on new market development, the creation of global pricing strategies, logistics and sourcing projects to drive savings, ongoing ERP rationalization, and AI-led process improvements. We believe these efforts will produce the results needed for revenue growth, margin expansion, cash flow generation, and improved return on invested capital. From a capital allocation perspective, we will continue to focus on maintaining a healthy balance sheet through disciplined debt reduction. And looking ahead from a growth standpoint, we will focus on driving organic initiatives while pursuing targeted small bolt-on acquisitions, if available, that complement our existing platforms and capabilities. The outcome of these actions will be a stronger, more flexible balance sheet that is well positioned to support our long-term growth opportunities and strategic objectives. I will now turn the call over to Scott, who will discuss our financial results in more detail. Scott Zuehlke: Thanks, George. On a consolidated basis, we reported net sales of $409,100,000 during the first quarter of 2026, which represents an increase of approximately 2.3% compared to $400,000,000 for the same period of 2025. The increase was mainly due to foreign exchange translation and the pass-through of tariffs. We reported a net loss of $4,100,000, or $0.09 per diluted share, during the three months ended 01/31/2026, compared to a net loss of $14,900,000, or $0.32 per diluted share, during the three months ended 01/31/2025. On an adjusted basis, we reported a net loss of $300,000, or $0.01 per diluted share, during 2026, compared to net income of $9,000,000, or $0.19 per diluted share, during 2025. Adjustments being made to EPS are primarily for transaction and advisory fees, amortization of the step-up for purchase price adjustments on inventory, restructuring charges, amortization expense related to intangible assets, and foreign currency impact. On an adjusted basis, EBITDA for the quarter was $27,400,000, compared to $38,500,000 during the same period of last year. The decrease in adjusted earnings for 2026 compared to 2025 was mainly due to reduced operating leverage from lower volumes related to ongoing macroeconomic uncertainty coupled with low consumer confidence and higher but temporary operational costs related to our hardware plant in Monterrey, Mexico. Now for results by operating segment. We generated net sales of $189,100,000 in our Hardware Solutions segment for 2026, an increase of 2.4% compared to $184,700,000 in 2025. We estimate that volumes were down 3.6%, pricing was up 0.5%, the tariff impact was about 3.2%, and foreign exchange translation was a benefit of about 2.3%. Adjusted EBITDA was $4,500,000 in this segment for the first quarter, compared to $8,200,000 in the same period of last year, mainly due to decreased operating leverage related to lower volume, general inflation, and approximately $3,000,000 of incremental costs related to our hardware plant in Monterrey, Mexico. As George mentioned, we believe this plant is now stable. Our Extruded Solutions segment generated revenue of $139,000,000 in the first quarter, essentially flat compared to $139,600,000 in 2025. We estimate that volumes were down 2.6% year over year in this segment for the quarter, with pricing up slightly by 0.3%, and a positive foreign exchange translation impact of about 2.4%. Adjusted EBITDA declined to $20,900,000 in this segment for the quarter, versus $24,000,000 during the same period of last year, mainly due to decreased operating leverage related to lower volumes and general inflationary pressure. We reported net sales of $89,100,000 in our Custom Solutions segment during the quarter, which represented growth of 4.8% compared to prior year. We estimate that volumes were up 2.4%, pricing decreased by 2% in this segment for the quarter, and foreign exchange translation coupled with the pass-through of tariffs was a benefit of approximately 0.5%. Adjusted EBITDA declined to $4,600,000 from $6,300,000 in this segment for the quarter, mostly due to general inflation and higher SG&A. Moving on to the cash flow and the balance sheet, cash used by operating activities was $20,200,000 for 2026, which compares to $12,500,000 for 2025. Free cash flow was negative $31,500,000 in 2026 compared to negative $24,100,000 in 2025. Keep in mind that the first quarter of our fiscal year is usually the low watermark for the year due to the seasonality of our business. On a related note, we have historically been a net borrower in the first quarter of our fiscal year, but with the addition of Tyman and their longer cash conversion cycle, we now expect to be a net borrower during the first half of each fiscal year, with the majority of our cash flow generated in the second half. Our liquidity was $331,600,000 as of 01/31/2026, consisting of $62,300,000 in cash on hand plus availability under our senior secured revolving credit facility due 2029, less letters of credit outstanding. As of 01/31/2026, our leverage ratio of net debt to last twelve months adjusted EBITDA was 2.8 times. We do expect our leverage ratio to increase slightly in Q2, but we also believe we will exit 2026 with a net leverage ratio closer to 2.0 times as we generate cash and repay debt in the second half. As George mentioned in our earnings release, our long-term view continues to be favorable as the underlying fundamentals for the residential housing market remain positive. While we entered fiscal 2026 with a cautious outlook due to the ongoing macroeconomic challenges, we remain somewhat cautious in light of the geopolitical events now occurring. We are optimistic that demand for our products will improve as consumer confidence is restored over time. We are monitoring the situation in the Middle East, which could have an impact on customer demand, raw materials pricing, and shipping rates for our international hardware business, but as of now, we are comfortable with providing guidance for fiscal 2026. During our last earnings call in December, we mentioned that fiscal 2026 could be somewhat flat compared to fiscal 2025, with puts and takes, but that the first half of 2026 may be more challenged than 2025, implying a somewhat improved second half year over year. Our current views remain consistent with that message. Overall, on a consolidated basis for fiscal 2026, we estimate that we will generate net sales of $1,840,000,000 to $1,870,000,000, which we expect will yield approximately $240,000,000 to $245,000,000 in adjusted EBITDA. In addition, the following modeling assumptions should be reasonable for the full year 2026: gross margin of 28% to 28.5%; SG&A of $295,000,000 to $300,000,000, which reflects bonus accrual at target; D&A of $105,000,000 to $110,000,000; adjusted D&A, excluding intangible amortization, of $65,000,000 to $70,000,000, which should be used to calculate adjusted EPS; interest expense of $50,000,000; a tax rate of about 24%; CapEx of $70,000,000 to $75,000,000; and free cash flow of approximately $100,000,000. As always, we will stay focused throughout the year on the things that we can control, with an emphasis on generating cash to continue paying down debt. Please use the following cadence for fiscal 2026 versus fiscal 2025: on a consolidated basis, we expect revenue to be up 12% to 14% in 2026 compared to 2025. Adjusted EBITDA margin, again on a consolidated basis, is expected to be up 500 to 550 basis points in 2026 compared to 2025. Operator, we are now ready to take questions. Operator: Thank you. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. George Wilson: One moment for questions. Operator: And our first question comes from Kevin Gainey with Thompson Davis and Company. You may proceed. Kevin Gainey: Hey, George, Scott. Good morning. It is Kevin. Morning. For Adam. Yep. Maybe to start, if you could break out how the Extruded Solutions segment did. Margins in that segment were much higher than what we expected. Maybe you can talk about what drove the margin improvement there? Scott Zuehlke: Well, in general, I would say that the Extruded Solutions segment, the products that are included in that segment, have historically been our most profitable products. So you have things like the IG spacer, you have our vinyl profile business in the UK, which is called Liniar. Those have historically been very profitable businesses for us and continue to be. George Wilson: I think you would see the operating model within that segment too tends to revolve around larger, more levered plants. So, you know, fewer sites, tends to be less fixed cost, which drives margin in that product line. Again, I think part of the reasoning for the resegmenting too is to give our investor base a little more clear look into each of these different segments and what product lines are actually contributing what. So, you know, we know that this is new, a new perspective for you and others, but this has been very consistent for us throughout our whole period of having these products. Kevin Gainey: Sounds good. Appreciate the color on that. And then maybe if you could talk on the Custom Solutions segment as well and maybe what drove the strongest year-over-year revenue growth in that. George Wilson: You know, one of the bright spots with tariffs and just some of the macroeconomic environment has been in our cabinet components and our wood components business. We have been able to secure some new market share as people have insourced product from overseas, consolidated their facilities, and have outsourced that product, and our team has done a very good job of being able to show the value that we can create for our base in providing a wide array of products just in time as they need it, minimizing their working capital needs, and allowing us to do what we do well. So that really drove some revenue growth in what has really been a soft market, but that has been a bright spot for us on revenue. And our focus in that segment now is actually we are kind of in hiring mode in some of those plants to be able to make sure that we have the capacity and the ability to satisfy demand once the seasonal uptick does occur. But we have been very happy with the performance and what our team is doing there to show our value to our customers. Kevin Gainey: That sounds good. And then maybe, I know recently the builder show was done recently. Is there any takeaways that you could have from that? What maybe the sentiment was or optimism going into the year? George Wilson: You know, the show was well attended, which I think everyone would agree on. I think that there is guarded optimism. You know, there are a lot of moving pieces in everything in the world right now. You have now the geopolitical issues in Iran, and what is going on there, the potential push on inflation. You have the political climate in the US. Just a lot of moving pieces. So I think what we have heard is that, without a fault, everyone believes in the long-term view and the optimism that exists in the housing market, like we mentioned in this earnings call, that the indicators are there that housing is in demand, and there is pent-up demand that will be released at some point. It is just, I think, the feel of the show is when is that going to happen and what needs to make it happen to give the end consumer some confidence, whether it is a relief on some energy pricing, whether it is Fed movement, whether it is a couple more data points on inflation, or all of the above. So long answer to what should have been: guarded optimism. Kevin Gainey: Sounds good, George. Thank you, guys. Thanks. I will turn it over. Thank you. Operator: Our next question comes from Julio Romero with Sidoti and Company. You may proceed. Julio Romero: Good morning, George. Good morning. Your guidance implies the remaining nine months of the year is going to see flattish sales year over year but see some year-over-year margin expansion, about 70 to 80 basis points across the remaining nine months. Based on that Q2 cadence you stated earlier, that definitely implies it will be back-half weighted. If you could just talk about the cadence of that margin expansion between the third and fourth quarters, the expected? And then secondly, maybe just where across the portfolio you would see that margin lift? Scott Zuehlke: Good question. I think the main driver for the second half of 2026 versus the second half of 2025, if you recall, the issues we had in Monterrey impacted EBITDA by, I think, $13,000,000 in the second half of last year. We consider that plant stable; we should not see that impact in the second half of this year. So that alone is going to drive most of the margin expansion. George Wilson: That is obviously in our Hardware segment. Julio Romero: Yep. Good reminder, and congrats on completing that Monterrey issue. My second question is just on trying to better understand how much longer Tyman legacy Tyman extends the cash conversion cycle versus legacy Quanex, and then related to that, you mentioned capital allocation remains debt repurchase remains your key priority there. Just how are you thinking about debt pay down in the back half? Thank you. Scott Zuehlke: From a cash conversion standpoint, historically, Quanex was 45 to 60 days cash conversion. Tyman, legacy Tyman, was double that. So while we have made some progress in getting Tyman more towards the made-to-order versus a made-to-stock, that takes time. And there are certain pieces of that business that will never move to a made-to-order because it is more distribution. But I think what you will see from us really over the next probably two to three years is a significant improvement in getting that cash conversion cycle for the legacy Tyman business down, which will obviously impact cash flow positively. George Wilson: There are obviously multiple projects that we have identified to make that change, and I feel very comfortable where we are at in that progress, and more to come. But I think the softness in the market has allowed us to focus on the things that we need to do integration-wise and that we knew we needed to do, and I am very pleased with where we are at at that point. Scott Zuehlke: And then as far as the debt pay down, clearly it is our priority, especially given the macro backdrop here. We do feel like there is shareholder value creation if we can get that leverage or net ratio down closer to 2 and even below 2 over the next couple years for sure. So that is our focus. George Wilson: Makes sense. Julio Romero: Thanks very much. Operator: And as a reminder, to ask a— Our next question comes from Steven Ramsey with Thompson Research Group. You may proceed. Steven Ramsey: Hey. Good morning, everyone, and thanks for taking my questions. I wanted to look at spacers within the Extruded segment. Solid double-digit growth in the quarter and a good product category for quite some time. A couple of questions there. What were the drivers of growth within the quarter? And do you think spacers is a growth product in FY 2026? And then can you talk about the margin profile of that product relative to the segment in 2026? George Wilson: I will split my answers. I think the driver in the growth of all spacer markets, but especially our product lines that Quanex Building Products Corporation offers, is definitely being driven by the demand, and some of it code-related, on the performance, the thermal performance of windows. So as energy costs go up, you are able to justify the replacement of windows with higher-performing thermal windows, whether it is keeping warm air in the northern climates or better keeping the cold air in where we air condition. As we see migration from single-pane to double-pane windows, double-pane to triple-pane in some areas, that is driving an increase in volume demand, which lends itself well. And as codes and standards change to demand higher-performing, thermally performing windows, that falls right in line with the products that we offer at Quanex Building Products Corporation. So we do believe it has the potential to be a growth driver in 2026 and, to be honest, further years as that continues to take hold. Consumers are changing, energy costs are becoming a bigger part of the world, and these types of products are going to be demanded more, and we feel very good about that as a leading product in our portfolio. In terms of the breakout of profitability within the segment or even getting into any more granularity, we have not and cannot, for obvious reasons, provide any breakout there. We just have not provided that publicly. Steven Ramsey: Okay. Fair enough, and good color. You have talked about bundling being an opportunity for you over time with the Tyman integration going to market. In a tough backdrop, can you talk about if this is happening in any product sets or segments right now, or do you need a better demand backdrop to really see bundling become an opportunity? George Wilson: It is a great question. I think we are seeing it. We have started the development of that. It has been slow to take hold for two reasons. One is the macro backdrop. Obviously, volume helps any sort of bundling or incentive package regardless of what you are doing. The second one is, it is really hard to go to your customers and try to offer advantages of bundling when you have a product line that was not performing because of some operational issues. It is just a core fundamental for us that I have to have my house in order before I can offer those types of incentives as a valuable supplier. So I am not going to insult my customer base by trying to push incentives when I need to better improve operational performance. We are at that point. I feel really good at what we have done to protect our customers in something that was unforeseen. There will be a time and a place in the near future where we can have those conversations and give our customers opportunity to share in the benefits of what we provide. We were not there a year ago, and we are just getting to that point now. Steven Ramsey: Okay. That is helpful to hear. Last one for me. Cabinet wood components being a good story right now, and this was a segment that I pondered would potentially be a strategic value to someone else and maybe not core to Quanex Building Products Corporation. With the recent success, does this change the potential of this segment staying within the company and being a profit driver in the next couple of years? George Wilson: We are happy with what the segment is doing. We operate under a philosophy that, as a public company, I think everyone is this way. We are going to drive our product lines and our segments to perform the best they can to create as much shareholder value as we can, whether they are in the portfolio. The reality is every segment is potentially for sale every day. So you never say never, but we are extremely happy with what that group has done. I think that they are driving value for us, and I am pleased with their performance. I cannot give you any more of a clear answer because everything every day is always a negotiation. Steven Ramsey: Sure. Thanks for the color. Operator: I would now like to turn the call back over to George Wilson for any closing remarks. George Wilson: Thanks for joining the call today, and we look forward to providing our update in June. Thank you very much. Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.
Operator: Greetings, and welcome to the Mammoth Energy Services, Inc. fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Mohammed Topiwala with Visara Advisors Investor Relations. Thank you. You may begin. Mohammed Topiwala: Thank you, operator. Good morning, everyone. We appreciate you joining us for Mammoth Energy Services, Inc.’s fourth quarter and full year 2025 earnings conference call. Joining us on the call today are Mark Layton, Chief Financial Officer, and Bernard Lancaster, Chief Operating Officer. We will start today with our prepared remarks and then open it up for questions. I want to remind everyone that some of today’s comments include forward-looking statements. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our latest Securities and Exchange Commission filings for risk factors and caution regarding forward-looking statements. Our comments today also include non-GAAP financial measures. The underlying details and a reconciliation of GAAP to non-GAAP financial measures are included in our fourth quarter earnings press release, which can be found on our website. As a reminder, today’s call is being webcast, and a recorded version will be available on the Investor Relations section of Mammoth Energy Services, Inc.’s website following the conclusion of this call. With that, I will turn the call over to Mark. Mark Layton: Thank you, Mohammed, and good morning, everyone. I will start with a brief review of 2025 as a whole, cover fourth quarter results, and then turn it over to Bernard Lancaster, our Chief Operating Officer, to walk through operational performance by segment. I will then come back to cover the financials and our outlook for 2026, after which we will open the line for questions. With that, let me start with 2025. Over the course of the year, we executed four major transactions that meaningfully reshaped the company. Collectively, these transactions generated approximately $150,000,000 of proceeds, and they reflect two things. First, the value embedded in assets we built and operated well. And second, our willingness to monetize businesses that no longer fit our long-term return objectives. We sold our transmission and distribution and our engineering businesses at valuations we believe were attractive. Those were good businesses, and the prices we achieved reflect that. We think those outcomes are a direct signal of the value that exists inside this company, value that in our view is not reflected in where the stock currently trades. We also exited two businesses that were not meeting our return standards. First, we sold our pressure pumping equipment, which lacked scale, was capital intensive, and increasingly challenged from a cycle and return standpoint. Second, we divested a sand mine that had become a drag on performance and did not warrant continued investment based on logistical challenges with that particular mine and processing plant. Those were the right exits, and we are a leaner, more focused company because of them. At the same time, 2025 was the year we initiated a meaningful expansion of our platform in aviation rentals. We deployed more than $65,000,000 of capital with the goal of creating a more stable, recurring revenue stream with strong cash flow characteristics. Aviation started the year with limited scale, and it ended the year with real operating scale and a clear path to becoming a core earnings contributor as utilization ramps. Put simply, 2025 was a deliberate pivot: exit assets without a clear path to sustainable returns and redeploy capital into areas where we see a better return profile. Now turning to the fourth quarter. Revenue was $9,500,000 compared to $10,900,000 in the third quarter of 2025 and $10,000,000 in the fourth quarter of 2024, a year-over-year decline of approximately 6%. For the full year, revenue was $44,300,000 versus $45,600,000 in 2024, down approximately 3%, which we view as a reasonable outcome given the amount of portfolio change we executed throughout the year. Within the quarter, there were areas that performed well. Rentals, infrastructure, and accommodations all came in ahead of our internal revenue expectations. Aviation revenue continued its upward trajectory relative to continued deployment of aviation assets on lease. Infrastructure showed solid demand across grid- and broadband-related project work. Accommodations continued to improve on both occupancy and cost efficiency. I want to be direct about where we fell short. EBITDA in Q4 was below our expectations and below our standard. This was not a demand problem; it was an execution and cost control issue, and we own it. We have already started taking action. In infrastructure, we made additional management changes within the fiber business to address the performance issues that surfaced during the quarter. Across the rest of the portfolio, we are making targeted investments to address cost structure and improve the conversion of revenue to EBITDA. Bernard will walk through the specifics by segment. With that, I will turn the call over to Bernard Lancaster. Bernard Lancaster: Thanks, Mark. Q4 was a mixed quarter operationally with some pockets of real strength, which we will build upon in 2026. In our rental segment, we continued to build on our aviation business with another full quarter of revenue contribution. We exited the third quarter with approximately 15 aviation assets and added another 11 assets during the fourth quarter. A total of 16 of the 26 aviation assets were on lease at quarter-end, and we expect the remaining assets to go on lease during 2026, subject to maintenance schedules and customer delivery timing. There is still meaningful runway here. Non-aviation rentals showed good top-line momentum; assets on rent increased 15% sequentially to approximately 328 pieces. Profitability was pressured by higher equipment rental costs and insurance premiums. Our non-aviation rentals have lost some of the advantages previously realized from economies of scale. As a result, we have identified additional opportunities to be more strategic with our customer and fleet mix in an effort to reduce overall coverage requirements and expect to work through this process as we move into 2026. Investing in the non-aviation rental business is a priority in 2026, as we see strong demand and a tightening equipment market. Turning to infrastructure. Revenue came in ahead of our expectations, which speaks to the demand environment across network hardening, broadband expansion, and data center-related work. EBITDA, however, was not acceptable. Execution challenges in our fiber operations drove significant cost overruns and margin compression. We have already acted and made top-down management changes within the fiber business and tightened project oversight to improve accountability, schedule discipline, and cost control. These are meaningful changes, and our focus is on restoring consistent execution so the business can convert demand into profitable growth in 2026. Accommodations revenue was up, driven by a 25% increase in occupancy. This segment has been improving quarter after quarter, and the team deserves considerable credit for their consistent execution and excellent safety record. Sand and drilling were challenged in the quarter. In sand, pricing and volume pressure continued to significantly constrain the team’s results. We are focused on positioning ourselves to obtain more consistent volumes while also reducing the lease expense burden from parts of our railcar fleet that are no longer needed. In drilling, fourth quarter 2025 stepped down from a very strong third quarter performance as customer timing worked against our team. One of our priorities in 2026 is to invest back into our drilling business and improve performance through high-grading the asset base, where we see a clear path to better utilization and profitability. We believe that adding motor and MWD capacity to reduce rental expense and upgrading our power sections to improve customer marketability during the first half of the year will lead to material improvement in 2026. Overall, revenue performance in the fourth quarter showed that demand is there in several parts of our portfolio, but our execution and cost management did not meet our expectations. We are not making excuses; we are making changes, and I am confident the actions underway will drive a better trajectory in 2026. Thank you to our employees for the hard work through a demanding quarter. With that, I will hand it back to Mark. Mark Layton: Thanks, Bernard. Let me walk through our segment results for the fourth quarter of 2025, and then I will cover consolidated results, the balance sheet, and our outlook. Rental segment revenue was $3,300,000, up 19% sequentially and 179% year over year, mainly driven by the 23% sequential increase in aviation rentals in line with our commercial expectations. Non-aviation rental revenue increased 18% during the quarter, reflecting improved asset utilization. Our rental segment faced cost overruns driven by insurance costs and equipment rental expense due to equipment needed to support our operations and customer demands, although stronger equipment utilization and favorable aviation rental mix helped offset some of these pressures. The sequential rise in operating costs reduced overall segment profitability. Infrastructure segment revenue was $1,200,000, up 44% sequentially and 231% year over year. Profitability was impacted by fiber execution as Bernard described. Management and oversight changes we have made are focused on ensuring revenue performance flows through to the bottom line going forward. While we expect that there will be an EBITDA overhang on this business through 2026, we are encouraged by the early steps taken by the new leadership team. Accommodations revenue was $2,800,000, up 24% sequentially and up 19% year over year, reflecting higher occupancy. Sand segment revenue was $1,700,000, down 37% sequentially and down 67% year over year. Drilling segment revenue was $500,000, down 80% sequentially and down 38% year over year. Turning to consolidated results. For the fourth quarter of 2025, total revenue was $9,500,000, down 13% sequentially and 6% year over year. For the full year 2025, total revenue was $44,300,000 compared to $45,600,000 in 2024, a year-over-year decline of 3%. Net loss from continuing operations for the fourth quarter was $12,300,000, or $0.26 per diluted share, compared to $0.20 in the fourth quarter of 2024. Adjusted EBITDA from continuing operations was a loss of $6,800,000 in the fourth quarter of 2025 compared to a loss of $6,000,000 in the prior-year period. The underperformance relative to our plan was operationally driven, and we are taking targeted actions across each segment to address it. In our Sand and Drilling segments, cost of services decreased at a significantly lower rate than activity levels, resulting in margin compression driven by reduced utilization and lower fixed cost absorption during the winter slowdown typical in the oil and gas industry. In the Other segment, fully idled operations led to no revenue and only partial cost reductions, creating an unavoidable drag on profitability. SG&A expense during the quarter was $5,700,000, down from $6,900,000 in 2024, a reduction of approximately 17% year over year. On a fully normalized basis, excluding the bad debt expense related to PREPA in 2024, SG&A declined approximately 22%. We have more work to do on the cost structure as we continue to right-size the company for the portfolio we have today, and that remains a priority heading into 2026. Capital expenditures during the quarter were $25,900,000, nearly all directed toward aviation. Eight APUs, two engines, and one small aircraft were acquired during the quarter to bolster capacity and support future contracted deployment. For the full year, aviation accounted for the vast majority of our approximately $70,000,000 in total 2025 CapEx, reflecting our conviction in the return profile and scalability of that platform. Very little capital was allocated to drilling, sand, accommodations, or infrastructure during the year, and we expect that to change meaningfully in 2026 as we high-grade assets, pursue equipment acquisitions that reduce costs, and invest in the operational improvements needed to drive profitability across those segments. At quarter-end, we had $121,600,000 of unrestricted cash, cash equivalents, and marketable securities, and total liquidity of approximately $158,300,000 including our undrawn credit facility. Mammoth Energy Services, Inc. remains debt free. This gives us the flexibility to invest across the portfolio, pursue accretive opportunities, and absorb near-term volatility without any balance sheet pressure. Subsequent to quarter-end, we closed the sale of a property in Ohio that previously supported our pressure pumping operations, generating net proceeds of $4,600,000. The asset was no longer in use following our exit from that business, and converting it to cash was the logical next step. We flagged this because we think it is representative of a broader dynamic. There are assets on our balance sheet, some obvious and some less so, that carry value not reflected in where the stock trades. We will continue to identify and monetize positions where we are not generating an adequate return, and we expect to surface additional value through that process over time. Entering 2026, we are constructive on the path ahead, seeing a path to greater than 50% revenue growth in 2026 versus 2025, primarily driven by two main things: a full year of aviation contribution at higher utilization and improved asset utilization across our oil and gas-exposed businesses. To add some detail regarding our aviation portfolio, we nearly doubled the monthly revenue out of the portfolio from $600,000 in December to $1,000,000 in January. Once fully utilized, we believe this portfolio can generate monthly revenue of approximately $1,600,000 per month. On capital allocation, we expect non-aviation CapEx of approximately $11,000,000 in 2026, a mix of maintenance and targeted growth investments across our oil and gas and infrastructure segments. To be direct, we have underinvested in these businesses for several years, and that has been one of the contributors to the cost and performance issues. The investments are going into an existing asset base to address specific inefficiencies with identifiable paybacks. We expect the returns to be meaningful and relatively quick to materialize. We expect 2026 to be a year of inflection for Mammoth Energy Services, Inc.: revenue growth accelerating and positive EBITDA back within reach. We want to be clear on that last point. The current asset base, operated better and supported by the right level of investment, is capable of delivering positive EBITDA. From that foundation, our sights are set on mid-teens EBITDA margins and positive free cash flow as we move into 2027. The path is clear; the work is to execute against it. The macro backdrop in both areas is favorable. Oil and gas demand fundamentals are solid. Activity in our core basins is steady, and we see specific investment opportunities we are actively evaluating. In aviation, leasing demand in the regional market is holding up, and we have capacity coming available as the fleet continues to ramp. Revenue growth is only part of the equation. The priority in 2026 is ensuring that growth converts into EBITDA and cash flow, and we are working to improve operational execution along with deploying additional capital to help improve returns. On behalf of the entire Mammoth Energy Services, Inc. team, thank you to our employees for their continued commitment and to our shareholders for their support. That concludes our prepared remarks. We will now open for questions. Operator, please open the line for questions. Operator: Thank you. And at this time, we will be conducting our question-and-answer session. Ladies and gentlemen, there are no questions at this time. We will now hand the floor to Mark Layton for closing remarks. Mark Layton: Thank you again for joining us on the call today. 2025 was a year of real change for this company—in the portfolio, in the asset base, and in how we are positioned going forward. Q4 was a reminder that the work is not finished; we take that seriously. The setup heading into 2026 is straightforward. Demand is there, aviation is ramping, and the balance sheet gives us room to invest. The job is to execute. We look forward to updating you next quarter. Operator: Thank you. And with that, we conclude today’s call. All parties may disconnect. Have a good day.
Operator: Good morning. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Methanex Corporation fourth quarter 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. I would now like to turn the conference call over to the Vice President of Investor Relations at Methanex Corporation, Mr. Robert Winslow. Please go ahead, Mr. Winslow. Robert Winslow: Good morning, everyone. My name is Robert Winslow, and I recently joined Methanex Corporation as Vice President, Investor Relations. Welcome to Methanex Corporation’s fourth quarter 2025 results conference call. Our fourth quarter 2025 news release and 2025 annual report were posted yesterday, and can be accessed through our website at methanex.com. I would like to remind listeners that our comments today may contain forward-looking information, which by its nature is subject to risks and uncertainties that may cause the stated outcome to differ materially from actual results. We may also refer to non-GAAP financial measures and ratios that do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Any references made on today’s call reflect our 63.1% economic interest in the Atlas facility, our 50% economic interest in the Egypt facility, our 50% interest in the Natgasoline facility, and our 60% interest in Waterfront Shipping. To review the cautionary language regarding forward-looking statements, and definitions and reconciliations of the non-GAAP measures, please refer to our most recent news release, MD&A, annual report, and investor presentation, all of which are posted on our website under the Investor Relations tab. I will now turn the call over to Methanex Corporation’s President and CEO, Rich Sumner, for his comments, followed by a question and answer period. Rich Sumner: Thank you, Robert, and good morning, everyone. We appreciate you joining us today to discuss our fourth quarter 2025 results. I would like to start the call by thanking all our global team members for their continued commitment to Responsible Care and safety, which remains at the core of our company’s culture. Over 2024 and 2025, we have had the best two years’ safety performance in our company’s history, even as we navigated significant changes to our asset portfolio and supply chain. As a demonstration of these results, we have had zero Tier 1 process safety incidents over the past two years, and recorded only 0.09 and 0.12 recordable injuries per 200,000 hours worked in 2024 and 2025, respectively, compared with the chemical industry average of 0.59 in 2024. These outstanding achievements are a testament to our employees’ and contractors’ continued focus on strong planning, hazard awareness, and reliable behaviors. Turning now to a financial and operational review of the company. Our fourth quarter average realized price of $331 per tonne and produced sales of approximately 2,400,000 tonnes generated adjusted EBITDA of $180,000,000 and an adjusted net loss of $11,000,000. Adjusted EBITDA was lower compared to 2025, as higher sales of produced methanol were offset by a lower average realized price and the impact of immediate fixed cost recognition related to plant outages in the fourth quarter. Turning now to industry fundamentals. We are closely monitoring the current events in the Middle East region, its impact on global markets, and our business. Looking back on the fourth quarter, we estimate that global demand increased in China by about 4% while demand outside of China was relatively flat. Increased demand in China in the fourth quarter compared to the third quarter was driven by increased demand for methanol into energy applications and higher operating rates by methanol-to-olefin producers, the latter also being supported by high operating rates and import supply availability from Iran. Steady imports from Iran, particularly through October and November, also led to higher coastal inventories in China, which pushed pricing towards the $250 per metric tonne range. Towards the end of the fourth quarter, we believe seasonal gas constraints significantly reduced Iranian output, leading to MTO producers’ reduced operating rates in response to decreasing supply. Through 2026 up until current market escalations, our average realized pricing has been quite stable, with some small increases on slightly tighter supply conditions. After considering first quarter posted prices and factoring in higher customer discounts through recontracting for 2026, our first quarter average realized price is estimated to be $330 to $340 per tonne. Current escalation in the Middle East brings significant risk to reliability of methanol supply to the market from this region. We continue to see significantly reduced methanol supply from Iran, and we believe it is also impacting operations and trade flows from other producers. This has led to an increase in spot methanol pricing in Asia Pacific and Europe, with Chinese methanol prices now trading above $300 per metric tonne and European spot prices now trading close to $400 per tonne. Now turning to our operations where our methanol production was higher in the fourth quarter compared to the third quarter. Starting with our newly acquired assets in Texas, we produced 216,000 tonnes at Beaumont and 186,000 tonnes from our equity share of Natgasoline. During the fourth quarter, Beaumont experienced a short unplanned outage, and Natgasoline took a planned 10-day outage to replace a catalyst that is important to environmental compliance. We have been actively working with both of these manufacturing sites on integration plans, completing detailed reviews of systems and technical findings, and are pleased with the progress to date. In Geismar, production was slightly higher in the fourth quarter as all three plants operated reasonably well, although we did experience some minor unplanned outages. In Chile, after completing a planned turnaround in September, we operated both plants at full rates for most of the fourth quarter, utilizing gas supply from Chile and Argentina. During December, a third-party pipeline failure caused a temporary restriction on gas supply to our facilities, and this resulted in approximately 75,000 tonnes of lost production. The gas supplier developed a resolution to this issue in early 2026. We are now operating both plants at full rates, which we expect to sustain through April. In Egypt, we had higher production in the fourth quarter as the third quarter was partially impacted by seasonal gas availability constraints. There has been stabilization of gas balances in the region, but some continued limitations on supply to industrial plants are expected going forward, particularly in the summer. The plant is currently operating at full rates. We are closely monitoring the regional situation for any potential impact on gas supply to the plant. In New Zealand, we produced 171,000 tonnes as increased gas supply was available in the non-winter season. Notwithstanding the short-term dynamic, structural gas supply availability in New Zealand continues to be challenging, and we are working with our gas suppliers and the government to optimize our operations in the country. Our expected equity production for 2026 is approximately 9,000,000 tonnes of methanol. Actual production may vary by quarter based on timing of turnarounds, gas availability, unplanned outages, and unanticipated events. Now turning to our current financial position and outlook. During the fourth quarter, solid cash flows from operations allowed us to repay $75,000,000 of the Term Loan A facility, and end the year in a strong cash position with $425,000,000 on the balance sheet. Since the start of 2026, we have repaid a further $50,000,000, and the balance of the Term Loan A facility is currently $300,000,000. Our priorities for 2026 are to safely and reliably operate our business and continue to deliver on our integration plan. We remain focused on maintaining a strong balance sheet and ensuring financial flexibility, and our near-term capital allocation priority is to direct all free cash flow to the repayment of the Term Loan A facility. Based on a forecasted first quarter average realized price between $330 and $340 per tonne, and similar produced sales, we expect slightly higher adjusted EBITDA in the first quarter compared to the fourth quarter. We will now open for questions. Operator: At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We encourage everyone to limit yourself to one question and one follow-up. You are welcome to requeue for additional questions. Your first question comes from the line of Joel Jackson with BMO Capital Markets. Your line is open. Joel Jackson: Thanks, everyone. Welcome aboard, Rob. Nice to hear from you again. Rich, team, can you talk about costs? So if you look at Q4 and we think of costs, not gas cost, but other cost, logistics, other things going on, can you talk about what does that look like into the first half of this year in Q1? Seems like costs have really elevated. What is going on? Are there any artifacts, some of things going on with the OCI, taking over the OCI asset? Thanks. And then my second question is, obviously, you all know what is going on in the world. And there is a lot of methanol sitting in Iran and Saudi and around the Middle East. You obviously set your contract prices, your posted prices for March just on the onset of this. It is early, but what do you think is going to happen here in the market? If this continues, can you talk about what will we see in the short term, the medium term, as you see your business potentially changing from what is going on? Rich Sumner: Joel, a couple of points I would make on cost is we did see the unabsorbed cost come through. That is really about how the assets ran through December. We saw some outages there that result in immediate recognition of those costs to the P&L. As we think into where we were, our fixed costs, we would expect those to come down. Our ocean freight was probably a longer supply chain in the third and fourth quarter. As we said, we do have probably a higher percentage of sales coming through in the last few quarters, higher than we expect as we move into the new year with our contracted position. And then we are not yet all the way through the OCI transaction. So right now, we are spending costs as we move through to create the synergies post-deal, and that will happen through 2026 and when we get into 2027. We are not all the way there, obviously, and what we need to do is to continue the integration plans, and as we move through, we would expect beginning in 2027 that our fixed cost structure also adjusts down to the new base of the business. For your second question, I think for us, our first priority here is our supply to customers. This is where our reliability of supply and our global supply chain really demonstrates its value. Where we are today, that is our first commitment. Pricing has increased in all regions with anticipation of tightness coming out because the amount of tonnes on the internationally traded market here is quite meaningful that is currently impacted. So our first commitments are to our customers, and as of right now, we will see some benefits because of the tightness on pricing through March, but the real reset will come through into the second quarter. I think we are talking about around 15 to 20 million tonnes of the globally internationally traded methanol market here, so it is a significant impact which will ultimately impact all global markets, and we have seen pricing come up around the world. We are watching things really closely here, obviously, with our customers, trying to make sure we keep them whole while also looking at the risks on the global market and potentially some demand destruction that could come out of the market as well. So we are watching things very closely, and we are really talking to all our customers about how we can keep them supplied through this. Operator: Your next question comes from the line of Ben Isaacson with Scotiabank. Your line is open. Ben Isaacson: Thank you very much, and good morning. I have a question and a follow-up. Rich, can you remind us how opportunistic are you able to be when we have price spikes? I know most of your volume is contracted. Can you just talk about how you can take advantage of short-term price spikes, and is there some kind of lag in that recognition? And my follow-up is in the Middle East. I know things are moving very quickly. Are you aware factually of any damage to methanol assets or export or port infrastructure in Iran? And are you seeing a slowdown in gas flow from Israel to Egypt? Rich Sumner: Thanks, Ben. We are a term contract supplier, so our first priority is our commitment to our customers, and we reset price monthly. Right now, we are selling based on our March contract price, and we would expect, under current conditions, that we would be resetting into April to be reflective of the market. Our first priority today is the security of supply to our customers globally. Of course, there are certain mechanisms in our contracts which may adjust up slightly, and that is built into our forecast, so you could see that there could be a little bit of a push up in our guidance on where pricing is for the first quarter, but generally, it will reset into April. Our first commitment is really about how we make sure we keep the industry operating for our customers and really help them take care of their business. On your follow-up, no, we are not aware of any damage to any methanol facilities. We are monitoring the situation really closely. As far as it relates to the gas supply from Israel into Egypt, our understanding is that gas is not flowing, that they have all but shut down the gas imports from Israel today. We are working really closely with our gas suppliers in Egypt. Our plant continues to operate. It is the low season in terms of demand on the gas grid in Egypt, and the Egyptian government has been getting more supply through LNG imports. So far, we have sustainable operations there, but we are watching things and monitoring them really closely. Operator: Your next question comes from the line of Hamir Patel with CIBC Capital Markets. Your line is open. Hamir Patel: Hi. Good morning. Rich, in your price guidance for Q1, you referenced new customer discounts for 2026. So how should we think about how much, maybe on an annual basis, those have shifted, and will that largely be apparent in Q1, or will it adjust over the year? And with respect to 2026, the 9,000,000 production guide, can you give us some color on some of the regional puts and takes embedded in that? I imagine the Egypt piece is probably the most fluid. Rich Sumner: I think Q1 is the reset, Hamir. When we think about where our realized pricing is for Q1, if you go region by region, China is going to be up because we saw that the supply built in China through Q4. The European contract settlement actually results in slightly lower pricing for Q1 compared to Q4. And then when we look at where North America, Latin America, and Asia Pacific are, they are relatively flat on a realized basis. So that should be a resetting. The discount for Q1 should be a good guide for the rest of the year, and then on an average realized basis, we are expecting to be up a little bit. This is all pre the current developments. Prior to the current situation, we were going to be slightly up mainly because of China and factoring in those other considerations. On your production question, you can think of it in terms of a little over 6,000,000 tonnes in North America, about 1,300,000 to 1,400,000 tonnes for Chile, which is consistent with where we were last year, around 0.5 to 0.6 million tonnes for Egypt, which is obviously less than around an 80% operating rate, and then Trinidad would be one plant, really the Titan plant, around 800,000 tonnes. For New Zealand, our guide is less than half a million tonnes, and that is because of the situation we face with gas supply. Those are rough numbers to help you break that out by plant. Operator: Your next question comes from the line of Steve Hansen with Raymond James. Your line is open. Steve Hansen: Good morning, and thanks for the time. I want to go back to the discount issue, or perhaps even the weighted average global price, just as we think about the shifting dynamics there. It did strike me that the realized price came in lower, but not just because of the discount, because of that global weighted average. Has there been a material shift in the sales mix here in the last two quarters relative to prior? It does seem that the formulas we used in the past are becoming outdated. And just on the operational rhythm or cadence at the new facility in Geismar, it sounds like things are running well now. But just to give us a sense for that cadence, is it running to plan, and you think you suggested even full rate? Is there anything else in the tempo that we should expect to change over the balance of the year, whether it be turnarounds or other major pickups? Rich Sumner: I think what we do is give guidance in terms of percentages in regional allocations, Steve, so you can use those as a good guide. The proportion of China was higher as we moved through Q4 for sure, and that is partly because when we acquired the assets, we did inherit a fairly large uncontracted position from the OCI business. We contracted into Q1 now, and I think if you work the percentages and the pricing, you would get close to our ARP, but we can help you with that offline if, for some reason, it is not adding up. On Geismar, we are pleased with the operation. We have gotten through the ATR challenges that we had, and we feel really good about the way the asset is running. In a lot of ways, it is about just continuing to ensure safe, reliable operations in Geismar, and the team is doing a fantastic job there. We have put those issues behind us, and right now, we have really good stable production coming out of Geismar. Operator: Your next question comes from the line of Jeff Zekauskas with JPMorgan. Your line is open. Jeff Zekauskas: I remember that you were less hedged on gas at Beaumont and Natgasoline. Is your hedging now consistent with your other North American plants, and when there was that gas spike in January, was that something that you felt, or you were hedged against it? And in Trinidad, do you expect your operating rates to rise relative to the fourth quarter or fall in the first quarter? Rich Sumner: Thanks, Jeff. Our hedging today, what we are guiding towards, is about 50% hedged for our North American assets, and that is across the whole portfolio. We did see gas pricing, as we always do, come up through the winter period, and then we did hit the gas spike. We will talk more about our operations when we get to our first quarter results, but we would normally expect gas prices to come up, and we have different ways to manage that. We would have had some open exposure, but we would have been managing that. We will talk more about that in our first quarter. We do expect the gas pricing, and that is part of the guide—really, when we look at slightly higher earnings, part of the reason that it is slightly higher and not higher is because there is a bit higher gas cost coming through in the first quarter compared to the fourth quarter, which we will give more information on when we disclose that in the coming weeks. In Trinidad, we are running the one plant, the smaller Titan plant, based on our gas contract for the plant. We expect that operation to be very consistent, and we will operate that plant. Our main focus is going to be on gas contract renewals for the Titan facility. That contract comes up at the end of the September timeframe, and we would expect to have good operations from that plant up until that timeframe. We are already looking at the contract renewal. Most producers are already in discussions for their feedstock recontracting in Trinidad, and we are making sure we are in discussions as ours comes up later in the year. I would anticipate that we are running that plant at similar rates to last year until that time. Operator: Your next question comes from the line of Josh Spector with UBS. Your line is open. Chris Perilla: Hi. Good morning. It is Chris Perilla on for Josh. As you had lower production out of the OCI, the acquired assets sequentially, can you give us an update on the integration there and what the cost puts and takes over the course of 2026 are, or what you are budgeting for the spend to get the synergies? Is there a step-up in the spend there in the year, or is that cost now kind of baked in on a go-forward basis at least through the end of the year? And then could you just update if the gas supply situation in Trinidad, absent contract, has improved since the events in Venezuela? Rich Sumner: The first thing I would say about the assets is we are pleased with the way the operations are going there. When we modeled the acquisition, we used operating rates of around 85% to 90%, and we have definitely achieved over and above that since we have owned the assets. We are really impressed with the teams that we are working with, and we are working collaboratively together to bring our global expertise and work with the expertise at both sites to create value from the asset. We did have some downtime in Natgasoline, and that was partly getting ahead of environmental compliance and taking a proactive outage, and then we did have some minor downtime at the Beaumont plant as well. On the other parts of the integration, we said about $30,000,000 in synergies that we were targeting to realize by the end of 2026. We have realized some of those, but you also have to take on higher costs when you are integrating systems and integrating teams during that phase. We are in the middle of that right now, and we would expect to complete that as we move through 2026 and then have realized the $30,000,000 in synergies as we move into 2027. To your spend question, no, when we did the modeling around the deal, we set assumptions around operating rates and an assumption around CapEx spend on average per year. The plants have been operating above our assumptions on the deal, and both of the assets have come off turnarounds in 2024 and 2025, so the CapEx spend relative to where we had deal assumptions, which would have been an average, is much lower in the early phase of the asset, which is good for us because we are in a deleveraging period. On your question regarding Venezuela, there are announcements about fields being developed there and for import into Trinidad. That is a longer term. When we look at the Dragon field that has recently been announced, the things I would say are: the size of these fields relative to the demand-supply gap suggests more than just the Dragon field needs to be developed; there are other fields also being developed, but that is going to take time and a lot of progress; and ultimately, we will also need to ensure that the commercial agreements and pricing for that gas allow that to make sense long term for methanol. There is a lot to be done there. Our focus is really on the short term right now—how we are operating our plants in Trinidad with a contract renewal ahead of us, before any of this gas could come on. Operator: Your next question comes from the line of Nelson Ng with RBC Capital Markets. Your line is open. Nelson Ng: Great, thanks, and good morning. Quick question on the supply-demand dynamics. Rich, you talked about potential demand destruction. I think you talked about in the past how MTO facilities’ economics are somewhat challenged. Do you expect a large reduction in MTO demand, and from your customer perspective, do you have a sense of how price sensitive they are? And then in terms of your production in New Zealand, it is staying relatively low in 2026. I presume that facility is marginally profitable. What are some of the key factors you look at in terms of making a decision to potentially mothball that last plant? Rich Sumner: Thanks, Nelson. There are a lot of dynamics going on right now. Just in terms of MTO and MTO affordability, to your point, the price in methanol is rising, but so is the price downstream in the olefins market, and that is because it is not just methanol that is constrained, but so is naphtha, and so are all the oil derivatives that come out of the Middle East, which means that pricing has gone up. Olefins pricing has gone up, which makes methanol more affordable. So there are a lot of dynamics at play right now. That is what is uplifting China price, but their pricing in the downstream has gone up too, so the affordability dynamics are changing as well. What is going to happen here, depending on the restriction on supply, is how that supply gets directed into which markets, and then what that does to price. We are watching things really closely. Right now, all energy and energy derivatives are lifting up because the demand-supply gap continues to grow every day that there is disruption in that region and not a lot of product flowing out. We are going to monitor this really closely. Our commitments are to work with our customers on security of supply, and we certainly see that there will be pressure until some relief comes into the market. On New Zealand, it really comes down to gas development and production out of the fields. These are very mature fields, and outside of the existing fields, there is not a lot of new exploration going on. Our concern would be that we have seen the forecast continue to decline. In that industry, you have to see capital going in and development consistently happening for operations to be sustained. Today, we have a profitable operation, but even when there is peak gas available, we are operating one plant at less than full rates, which is not ideal. We are watching things really closely and working with gas suppliers as well as the government to sustain operations, but it is a tough outlook right now. Operator: Your next question comes from the line of Matthew Blair with TPH. Your line is open. Matthew Blair: Great, thanks for taking the question. Could you talk about whether you are truly realizing the benefits of the OCI acquisition that closed in mid-2025? I am just looking at the total company EBITDA in Q3 and Q4. It is roughly flat to Q2, even though global spot methanol prices are also about flat, and I think the OCI acquisition should have provided at least $150,000,000 to $200,000,000 in EBITDA. Is this just a function of Q3 had some accounting headwinds, Q4 sounds like some unplanned outages, but are you getting the benefits of that OCI deal rolling through? And what percent of your North American methanol production is exported, and should we think about applying spot U.S. prices to those export volumes, or is that really still on a contract basis? Rich Sumner: I think maybe the way to answer this is to look at the numbers that we had on the deal. At a $350 methanol price, we said it was slightly over $1 billion in EBITDA. Methanol prices today are not at $350 per tonne. That is $20 lower across an asset base that is 9,000,000 tonnes. So the big thing is price. We are also pre-synergies on the deal, so we have not realized the synergies, and there are some other things on cost structure that are slightly above what our assumptions would have been on the deal. Some of those cost issues are transitionary, and I think we can get back to those numbers, but we certainly need the market to be a little tighter and methanol prices to be at the $350 level to hit the numbers that we disclosed. In today’s environment, we would be looking, at least in the short term, at going above $350. On your exports question, we run our global supply chain. Our assets feed our global supply chain. We give our regional sales percentages, and then you can see where our assets are located. Our product is not assigned to any particular region. It is a flexible supply chain where our main priority is to keep our customers full in the most cost-effective manner. We do have some cross-basin flows from the Atlantic over into Asia Pacific, but mostly the product stays within the Atlantic Basin. Operator: Your next question comes from the line of Laurence Alexander with Jefferies. Your line is open. Laurence Alexander: Good morning. First, can you help parse what the current situation means for the market in terms of the near term? How much of the near-term disruption is shipping being rerouted, and how long do you think it will take for you to start seeing customers shutting capacity in response to a tighter market? Can you help me parse the near-term supply chain adjustment versus how you are thinking about the demand adjustment? And secondly, on your shipping fleet, given that you can reroute tankers more quickly than somebody who is using shipments that might be contracted to ship other products rather than being committed to methanol, will you be seeing a benefit in Q2 or Q3 from that, and can you help size it? Rich Sumner: Thanks, Laurence. When we look at what supply is impacted today, Iran puts into the market around 9 to 10 million tonnes a year, and when you combine Saudi Arabia, Oman, Qatar, Bahrain, and other countries that are going to be impacted, it is probably another 9 to 10 million tonnes. Of a 100 million tonne market, but really a globally internationally traded market of 55 million tonnes, this is a pretty big impact. Of course, Iranian supply goes only into China, so that is a direct impact to the China market, and then the other product services mainly the Asia Pacific region, as well as some into Europe. Those trade flows today have stopped. How long this lasts, how quickly you are going to first work off inventories, and how long people have on inventory will ultimately determine how long people can operate. Our first commitment here is to our contract customers and the security of supply that we provide through our contracts, and that is our number one commitment. We will continue to monitor this as it evolves because it is certainly hitting methanol and a lot of other downstream oil and energy products as this develops. On shipping, our time charters certainly give us that security within our supply chain, and we have very little spot exposure in our fleet. We have seen shipping rates double on a lot of the lanes that we run. It is more about what it does to our competitors versus what it does to us. To the extent that pricing has to go up to help our competitors cover costs to meet security of supply, that is going to be baked into the pricing, which we can benefit from. It is not an immediate, instant hit to our cost structure because ours are fixed in, but we do think that is partially compensated through increasing price that is required to get other product into market. Again, that is another factor that we will be watching, and this demonstrates the value of our Waterfront Shipping company and having dedicated ships to our business. Operator: The last question comes from the line of Steve Hansen with Raymond James. Your line is open. Steve Hansen: Thanks. Just in the event that this conflict does last longer than planned or longer than some people might expect, how do you think about the incremental excess cash flow coming in the door? Is it just going to accelerate the paydown of Term Loan A? You have been at that a fairly rapid pace thus far anyways, but is that how we should think about that excess flow that comes in the door? Rich Sumner: Our first commitment is to our balance sheet right now. We have, as I said in the remarks, $300,000,000 left on the Term Loan A, and that is our first priority for cash. Of course, we are going to monitor things really closely here. Volatility is important. You can have fly-ups, and then you can have reversals depending on how quickly things change. But our first priority and commitment is to the balance sheet post-deal, and right now, this pricing environment is very supportive of that. Steve Hansen: Appreciate your time. Thanks. Rich Sumner: Thanks, Steve. Operator: There are no further questions at this time. I will now turn the call over to Mr. Rich Sumner. Rich Sumner: Thank you for your questions and interest in our company. We hope you will join us in April when we update you on our first quarter results. Operator: This concludes today’s conference call. You may now disconnect.
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