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    Analysis

    Ethan Bernard, SMU Team

    Final Thoughts

    Written by Ethan Bernard


    Sometimes it feels like current events are like a fireworks show that got set off all at once by mistake. In all the commotion, it’s hard to know where to look… or where to run. From tariffs to war, from the price of oil to the health of the stock market, you never know what surprise each day is going to bring.

    Still, I feel like the momentum has shifted. Massive unpredictability is baked into the way we are doing business. We have a more measured view of the tariff situation, perhaps not even having to sit down before reading a Truth Social post. We can deal with it. Likewise, with geopolitical uncertainty and active conflicts, we know we have to keep getting up in the morning and heading into the office. Or at least walking into the home office and turning on the computer.

    Ethan Bernard

    Read more from Ethan Bernard

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    AZZ Inc. said galvanized flat-rolled steel availability remains a constraint for its Precoat Metals business, complicating customer sourcing and logistics. Customers are having difficulty securing substrate within required timeframes, and costs remain elevated, President and CEO Tom Ferguson said on an earnings conference call on Wednesday. He said AZZ is helping customers locate domestic and imported material and manage logistics. The situation has “definitely” affected the business, he added. “It’s tight. We see it every day, particularly galvanized sheet metal.”

    AZZ raises fiscal 2027 guidance after record second-quarter sales

    AZZ Inc. raised its fiscal 2027 guidance after reporting record second-quarter sales and adjusted earnings, supported by higher volumes and pricing in both its Metal Coatings and Precoat Metals segments. AZZ reported fiscal second-quarter sales of $486.9 million for the three months ended Aug. 31, up 16.7% from the prior-year quarter. Net income fell 34.6% year over year (y/y) to $58.45 million. “During the quarter, we benefited from organic sales growth, the continued ramp-up of our new Washington, Missouri facility within our Precoat Metals segment, and the completion of a strategic Metal Coatings acquisition in the Pacific Northwest,” noted President and CEO Tom Ferguson.

    US flat-rolled steel import licenses hit a 14-month high

    US flat-rolled steel import licenses climbed in September, extending a recovery after several months of depressed inbound shipments. Licenses rose 4.9% month on month to 679,889 short tons (st), their highest level in 14 months and 29.1% above the 12-month moving average (12MMA) for August, according to Commerce Department data. The increase was led by cold-rolled sheet and other metallic-coated products, with particularly sharp gains in licenses from Turkey, Taiwan, and South Korea. Hot-rolled sheet licenses eased from August’s 19-month high, while galvanized sheet, coiled plate and cut-to-length plate also slipped month on month. Even so, licenses for hot-rolled sheet and both plate categories remained elevated relative to their recent averages, pointing to continued strength across several product lines.