Worthington Industries reported a solid QQ2 2025 performance with a notable step-up in gross margins and sustained cash generation, underscoring the resilience of its diversified industrial portfolio even as reported revenue declined year-over-year. Consolidated net sales were $274 million, down 8.1% YoY largely due to the deconsolidation of the Sustainable Energy Solutions (SES) segment, which contributed $28 million in the prior-year quarter. Despite the revenue headwind, gross profit rose to $74.0 million and gross margin expanded to 27.0%, a roughly 580-basis-point improvement driven by the elimination of SES margin drag, the inclusion of the Ragasco acquisition, and higher-margin product mix. Adjusted EBITDA stood at $56 million, with margins tracking to 20.1% on a trailing-twelve-month basis. The quarter also featured a $3 million pre-tax restructuring charge, primarily tied to an executive retirement, which partially offset a $0.04 per share drag; excluding these items, adjusted earnings per share were $0.60, up from $0.57 in Q2 2024. Free cash flow reached $34 million, supported by $49 million in operating cash flow and a modest capex program (~$15 million). The balance sheet remains robust: liquidity is ample (undrawn $500 million credit facility), net debt stood at $102 million, and cash balances were $194 million at quarter-end, producing a net debt to trailing adjusted EBITDA ratio of <0.5x. Management articulated a clearly defined path toward margin optimization and growth, including ongoing integration of Ragasco, execution of the Worthington Business System, and disciplined capital allocation toward growth (and selective buybacks to offset dilution). Looking forward, executives stressed a