Good day, and welcome to the Carpenter Technology Fiscal First Quarter 2025 Earnings Conference Call. All participants will be in the listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to John Huyette. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to the Carpenter Technology earnings conference call for the fiscal 2025 first quarter ended September 30, 2024. This call is also being broadcasted over the Internet along with presentation slides. For those of you listening by phone, you may experience a time delay and slide movement. Speakers on the call today are Tony Thene, President and Chief Executive Officer; and Tim Lain, Senior Vice President and Chief Financial Officer. Statements made by management during this earnings presentation that are forward-looking statements are based on current expectations. Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Carpenter Technology's most recent SEC filings, including the company's report on Form 10-K for the year ended June 30, 2024, and the exhibits attached to those filings. Please note that in the following discussion, unless otherwise noted, when management discusses sales or revenue that reference excludes surcharge. When referring to operating margins, that is based on adjusted operating income, excluding Special Items and sales excluding surcharge. I will now turn the call over to Tony.

Thank you, John, and good morning to everyone on the call today. I will begin on Slide 4 with a review of our safety performance. For the first quarter of fiscal year 2025, our total case incident rate was 1.2. This improvement represents a step in the right direction. Our rate has been elevated over the last couple of years as we integrated a large number of new employees into our operations, many of them with little or no experience with an engaged safety culture. During this time, we have invested in training programs for our employees, with a focus on identifying potential risks and minimizing the severity of injuries. As our employees gain experience and develop in our safety-focused culture, we are seeing an improvement in our safety performance, but we still have more to do. Our goal is to be a zero injury workplace and we will continue to invest and work to achieve that goal. Let's turn to Slide 5 for an overview of our first quarter performance. Obviously a great start to fiscal year 2025, with record first quarter earnings and a positive step up to our full fiscal year 2025 earnings guidance. Specifically, in the first quarter of fiscal year 2025, we generated $117 million in adjusted operating income, the most profitable first quarter on record. This 70% increase over our previous record first quarter of fiscal year 2024 is the result of continued improvement in productivity, product mix optimization, and pricing actions. It is a testament to our solid execution, strong market position, and unique capacity and capabilities that we have been able to achieve these record earnings during a time of near-term uncertainty in the aerospace supply chain. This is a strong indicator of our ability to produce continued earnings growth acceleration as the aerospace supply chain not only stabilizes but embarks on an aggressive build rate ramp in the near term. Notably, the SAO segment continues to exceed expectations, delivering $134.5 million in operating income with an adjusted operating margin of 26.3%. This is a meaningful step up from the 19.4% in the first quarter of the previous year. The focused productivity efforts are evident within the SAO results, as we were able to increase adjusted operating margins even with lower sequential shipments. Further, we generated $13.3 million of adjusted free cash flow during the quarter with $40.2 million of cash from operations. In addition, we repurchased $32 million in shares during the first quarter as part of our $400 million share repurchase program, which was announced on the last earnings call. Altogether, our first quarter performance sets a strong foundation for our fiscal year 2025 financial goals, which I will discuss in more detail later in the presentation. Now let's turn to Slide 6 and take a closer look at our first quarter sales and market dynamics. In the first quarter of fiscal year 2025, sales decreased 9% sequentially but increased 17% year-over-year. Sales were roughly as expected with the majority of the sequential sales decline driven by our planned maintenance outages as we discussed on the last earnings call. In the aerospace and defense end-use market, sales were down 7% sequentially and up 34% year-over-year. Aerospace and defense first quarter sales represented our best first quarter on record, beating our next best first quarter by over 20%. Within aerospace and defense, engine sales were roughly flat sequentially. Engine sales continue to see strong MRO demand, and customers continue to work to get caught up on past due demand. Defense sales were up sequentially as defense demand remains robust due to ongoing world events and strong pull for advanced critical solutions. The other aerospace submarkets were down sequentially, largely reflecting available manufacturing capacity in the quarter as I mentioned earlier. Altogether, our aerospace and defense shipments ended in line with our expectations and represent another very strong quarter. Moving to our medical end-use market, sales were down 20% sequentially and up 10% year-over-year. Together with aerospace and defense, the two end-use markets continue to grow in share of overall revenue, at approximately 74% of our total sales. Patient demand and patient backlogs continue to grow, and the overall outlook for market demand remains positive, and we have realized very strong growth in medical, well above market rates as indicated by our year-over-year growth. The sequential decrease in sales is partly driven by lower shipments due to fewer operating days in the quarter. We also had some delayed shipments in our Dynamet facility due to the hurricane in Florida, and we are coming off a record sequential quarter for comparison. We are reminded daily of how critical our solutions are in the medical end-use market as our customers continue to emphasize the desire to grow further with us in a variety of new applications that require our unique material solutions. Looking at the energy end-use market, sales were up 8% sequentially and up 35% year-over-year, driven by ongoing high demand and positive long-term fundamentals. Notably, in power generation, we have seen increasing urgent demand for our materials, giving us the ability to opportunistically shift production to support the demand. The alloys that go into these applications are similar to our aerospace materials and carry similar margins. We are working with our power generation customers to continue to identify opportunities to slot the demand into our production schedules. Altogether, underlying demand in our key end-use markets remains robust and our long-term outlook continues to be strong. Now, I will turn it over to Tim for the financial summary.

Thanks, Tony. Good morning, everyone. I'll start on Slide 8, the income statement summary. Starting at the top, sales excluding surcharge increased 17% year-over-year on 3% higher volume. Sequentially, sales were down 9% with a similar reduction in volume. The year-over-year growth in net sales was driven by our improving productivity combined with the ongoing shift in product mix as we continue to focus our capacity on our most profitable products as well as the realization of higher prices. The improving productivity and product mix is evident in our gross profit, which increased to $176.3 million in the current quarter, up 42% from the same quarter last year. SG&A expenses were $59.1 million in the first quarter, up $4 million from the same quarter last year and down roughly $6 million sequentially. Note the SG&A line includes corporate costs, which totaled $24.4 million in the recent first quarter when excluding the special item. As we said last quarter, we expect corporate costs to be approximately $23 million to $24 million per quarter for the balance of fiscal year 2025. Operating income was $113.6 million in the current quarter, or $117.2 million of adjusted operating income, which is 70% higher than the $69 million in our first quarter of fiscal year 2024. As Tony mentioned earlier, this represents a record first quarter operating income result. We continue to build operating momentum and expand margins, delivering total company adjusted operating margin of 20.3% in the current quarter. Moving on to our effective tax rate excluding special items, which was 16.4% in the current quarter. The effective tax rate was comparable to the same quarter last year due to benefits associated with vesting of certain equity awards in both quarters. For fiscal year 2025, we continue to expect the effective tax rate to be in the range of 21% to 23%. Adjusted earnings per diluted share was $1.73 per share for the quarter. The adjusted earnings per diluted share results exclude the impact of restructuring and asset impairment charges associated with actions to streamline our additive operations. In summary, the adjusted earnings per diluted share results for the quarter of $1.73 demonstrate solid execution in a challenging near-term operating environment given the supply chain uncertainty in the aerospace industry. Now turning to Slide 9 and our SAO segment results. Net sales excluding surcharge for the first quarter were $510.9 million. On a year-over-year basis, sales were up 22% on flat volume. The year-over-year comparison reflects the impacts of higher realized prices and an improving product mix as we actively managed our portfolio to focus on using our capacity for the highest margin solutions. As we had anticipated, sales were down 9% sequentially on 12% lower volume, reflecting the impacts of equipment availability across the operations due to planned maintenance activities and fewer working days, offset by realization of higher prices. Moving to operating results, SAO reported operating income of $134.5 million in the first quarter of fiscal year 2025. As Tony mentioned, the operating results exceeded our expectations and represent a record first quarter for SAO. The improvements we have made in areas of productivity, product mix, and pricing are evident in the adjusted operating margin, which has increased to 26.3% in the current period. Some additional context for the current quarter's results. On a sequential basis, operating income was down $6.4 million despite a $48.6 million reduction in sales. This is meaningful and demonstrates the team's efforts to realize further price increases and closely manage costs while enhancing productivity. The SAO team remains focused on executing actions to further increase and maintain consistent production levels and to actively manage the product mix to maximize capacity for our most profitable products. The SAO's team focus remains unchanged from the last several quarters. In the current environment, the focus is even more relevant as we actively manage our production schedules to adjust to changing customer priorities. Looking ahead to our upcoming second quarter of fiscal year 2025, we anticipate SAO will generate operating income in the range of $134 million to $139 million.

Thanks, Tim. Now let's turn to the fiscal year 2025 outlook. We have been on a remarkable journey over the last two years. At our Investor Day in May 2023, we laid out a path to double our fiscal year 2019 operating income by fiscal year 2027. That four-year goal represented a 40% compounded annual growth rate for operating income from our expected fiscal year 2023 performance. Even with such impressive growth, there were opportunities to exceed expectations by improving productivity, optimizing product mix, and realizing pricing actions. As many of you have followed along, we did just that, accelerating our earnings growth through fiscal year 2024. This led us to pull in our goal twice. First, during our April 2024 earnings call, we pulled our goal ahead at least one year into fiscal year 2026. This increased operating income compounded annual growth rate to approximately 55% over a three-year period. Then, in our July 2024 earnings call, we pulled our goal in another full year. Following a record year of profitability, the goal pulled in two full years now represents an operating income compounded annual growth rate of over 90% from FY '23 to FY '25. After a strong start to fiscal year 2025, we are now increasing our guidance again to the high end of the $460 million to $500 million range. We believe we can achieve this despite the current uncertainties in the aerospace supply chain because of our continued execution, strong market position, and unique capabilities. And the team is not satisfied with just meeting targets. Our team is focused on exceeding expectations. To that end, we have line of sight to activities that could push operating income for fiscal year 2025 even higher above the $500 million mark. They include improving productivity to unlock incremental capacity and working with customers to pull in high-value orders. And as we look ahead, what is now our fiscal year 2025 target will not be the peak of our earnings growth, based on our current projections. The same dynamics that are driving our current performance are expected to only get stronger into the future. The fundamentals of the aerospace industry remain strong with more people wanting to fly than ever before. And macro trends are pushing our customers across our end-use markets to our highly specialized material solutions, as we've seen in the medical end-use market. As a result, our customers remain focused on the surety of supply to meet their long-term growth needs. We believe that through solid execution, our strong market position, and our unique capabilities, we are well positioned to continue our earnings growth momentum. Now let's turn to the next slide for my closing comments. To close, let me summarize our first quarter performance and outlook. Carpenter Technology just delivered a record first quarter, a 70% increase over the first quarter a year ago, which was then a record for the company. We increased margins in our SAO segment again reaching 26.3% a new all-time high. We generated positive adjusted free cash flow in the quarter. We began executing against our $400 million share repurchase program, returning cash to our shareholders. And after pulling a four-year target in by two years, today we've increased our guidance again to the top end of the $460 million to $500 million range for fiscal year 2025, with a drive to go beyond the $500 million mark. All of this despite the current near-term uncertainties in the aerospace supply chain. Further, we see our long-term growth outlook strengthening. Demand across end-use markets continues to grow as we expand relationships with our customers to address their challenges and capture growth opportunities. And we remain focused on improving our execution as demonstrated by our accelerating performance over the last several quarters. We believe we are in the early stages of our growth journey, and we will continue to deliver value as we drive to exceptional near-term and long-term performance. Thank you for your attention. And now I will turn the call back to the operator.

Thank you. We have the first question from the line of Gautam Khanna with TD Cowen. Please go ahead.

Hi, good morning, guys.

Hi, good morning, Gautam.

Tony, I wanted to get your some color from you on what's going on with respect to the aerospace customers. Are you seeing any destocking, or deferral requests and if so, kind of in which product areas? And then, you've mentioned backlogs remain at near record highs. I'm just curious, like did incoming orders slowdown just given the strike and everything else? Wanted to get your perspectives on that? Thanks.

Yes, thanks Gautam. Good questions. There's a couple in there, so let me take them one-by-one. First orders for the quarter, I don't want to get into specific figures. But I can say that incoming orders were down sequentially, although they accelerated towards the end of the quarter. Obviously, we're coming off a record booking quarter last quarter. So it's a very high point. I can also add that we, obviously, with what's going on in the market today, you have some aerospace customers that are taking a bit of a wait-and-see approach, especially those that are heavily weighted towards Boeing. But that's been offset with strengthening orders in other end-use markets, specifically power generation, when you see the big demand from data centers. So that's been a positive offset. Overall, the backlog still is above $2 billion, and lead times on key products still remain extended. So certainly, there's some uncertainty in the aerospace market today, but we have a very healthy order backlog, and the order intake seems strong as well. So that covers your backlog and your order intake question. I think the other question you had was really about how customers are reacting right now, and do we see any type of deferrals, or inventory build in the system. And I can address that one by saying, we don't have perfect visibility into the inventory throughout such an extensive supply chain. The supply chain doesn't always operate smoothly. There's always been this tendency of building and then de-building. What I can say, though, with a high level of confidence, is first, as it relates to MRO demand, we continue to see emergency requests from customers for more material. That remains very strong, as an offset to what you see on the OEM side of things. I can give you an example. Just a couple of days ago, we're on the phone with a particular OEM discussing how to adjust our manufacturing plans to support their urgent needs. Our strong sense of demand in this area, is that more is needed and the majority of people are still behind. For Carpenter Technology, it's going to be different for everybody in the supply chain. Companies that are more concentrated with a specific customer are going to have a different outcome than we do because of our breadth of services and capabilities. We believe we're able to navigate that very strongly over the near term.

And as a follow-up, do you feel like you guys are, you mentioned the backlogs are still extended, but do you feel like you're kind of caught up with underlying demand, or because in prior quarters you've mentioned, if we could ship more, if we had more throughput, we would have customers willing to take more product. Has that cushion kind of evaporated, or is that still the case?

That's a good question. Thanks for asking. Again, it's customer specific. I mean, if we have customers that have a very high percent of their portfolio dedicated to one specific customer, are they taking a more wait-and-see approach? Absolutely. But we have other customers, referencing the example I gave earlier, that are still trying to catch up that have exposure to other areas in the aerospace supply chain. They're moving forward. That's really an advantage that Carpenter Technology has with this large backlog. Obviously, we know exactly what's in that backlog and we're able to pull those forward into our production schedule, because not everybody is in the same situation. Certainly, we have people that are still trying to move forward in the supply chain. The production schedule and some of this uncertainty with Boeing is giving them the opportunity to do so.

Great. Thanks, Tony. I appreciate it.

Yes. Thank you, sir.

Thank you. The next question comes from Josh Sullivan with The Benchmark Company. Please go ahead.

Hi, good morning.

Hi, good morning, Josh.

I just want to touch on how do we think of seasonality at this point. Historically, there's a reason you report Q1 this quarter you're up what, 70% year-over-year. But how do we think of that historical seasonality in some of the changes versus the current underlying market conditions, particularly when we're looking at some of the metrics, incremental margins or others?

Well, it makes it tough, doesn't it, Josh? It makes it tough to model when you can't rely on some of those historical norms anymore. I mean, we are effectively in a sold-out situation even with this uncertainty that we have in the market today. So really, when you think about quarter-over-quarter, or sequential quarter, the only real difference between the quarters are the number of days that you operate. That's why you've heard us talk about solid, proactive planned maintenance to keep this earnings engine moving. So the bottom line is the timing and the duration of those planned preventive maintenance events is really the determining factor between quarters. Obviously, another determining factor is we continue to increase our productivity. New contracts continue to roll in. That pushes that higher. But we're in a period now where you talk to folks inside our plants, we're trying to maximize output and optimize product mix. Every quarter is going to be a significant quarter. Just because you see maybe a slight decrease in a sequential quarter certainly is no reason for a red flag. It's just because we had fewer operating days in that quarter or we took more planned maintenance in that quarter. That's really the only distinction between them right now. It's a good place to be.

And then just given some of the crosscurrents in the industry, and there's still a need for long-term capacity growth. What are your thoughts, or what are the conversations around increasing capacity at this point?

Well, we're always looking at that. I mean, if you see, again, one of the reasons why we have been able to continue to drive earnings growth is productivity. Our belief is there's always hidden capacity in our factory. There's always ability for us to get better. A prime example. If you look at primary melting, and if you can find ways to safely and at a high quality increase daily production, that's a massive impact on profitability. So that is an area that our folks out on the shop floor are keenly focused on and making great strides. And that's what you've seen over the last three or four quarters. They're very motivated to keep moving forward. So that ability to continue to increase capacity through productivity is a big deal. Now, secondly, is what can we do internally, organically to increase capacity? It's our job to look at those. As shareholders, you want us to look for ways to add capacity organically. Spend some capital, get a high rate of return project to push that to the next level. We said this many times. Any capacity we add is not going to upset the supply-demand situation we're in. We have demand far outstripping supply, and that's not going to change by what we may do. But it certainly can increase our profitability even as an accelerator to the next level. So, we're looking at those as we speak.

Yes, absolutely. And I just sneak one last one just to that point on productivity. I mean, is there anything you can provide us on scrap rates, or throughput or how are we measuring that productivity externally?

Well, all of those areas certainly. As you know in productivity and running a product through the plant, there are multiple areas that drive into that overall productivity number. Certainly scrap rate or if you would say first pass recovery. Do we have to bring that product back for any rework? That's massive, so that is where we're really focused. I mean, our primary focus outside of getting those rates up in some of those primary work centers is reducing the amount of rework. Every pound, every ton that you can reduce that doesn't go back and get a little extra grinding is massive impact on productivity. Those are two areas that are really at the forefront for us on a daily basis.

Great. Thank you for the time.

Thank you.

Thank you. The next question is from Scott Deuschle with Deutsche Bank. Please go ahead.

Hi, good morning.

Hi, good morning, Scott.

Tony, was the average price of what moved into the backlog for new orders this quarter higher than the average price of what was already in the backlog at the start of the quarter?

Yes. You're likely to see that from now on going forward. There could be, I should say, yes. I mean, there could be some times where maybe that's a bit off, but certainly, you're going to see that at least the trend line going up. Yes.

Okay. And if it didn't go up, it would just be because of the mix probably of what went into…?

Correct. That's why I hesitated a little bit there to say the trend line. I mean, I guess there could be a situation where that mix of orders were very high in one area that could do that. But in totality, going forward, you're going to see that rise based on that as the contracts continue to renew.

Thank you. And then, was the 35% growth in energy revenue this quarter? Was that entirely driven by IGT? And were the non-IGT pieces of revenue actually down?

It's 100% driven by IGT. That's a great question. Inside that market, as you know, we've got the IGT piece, and then the oil and gas. Oil and gas was down in fact, a little bit sequentially and year-over-year. I'll give you a number that's really interesting. The IGT piece was up 200% year-over-year. So that's another area. When somebody says, how can Carpenter Technology produce these numbers with all of this noise in the aerospace industry? We say we have the ability to pivot. We have a market that we've been in for a long time that now is exploding, and we're able to take advantage of that. We have these customers coming to us wanting to jump into the production line, willing to pay aerospace margins. With some of the uncertainty in the aerospace supply chain, they have the ability to do that and looking to further extend that relationship. That's a big advantage for Carpenter Technology that sometimes maybe goes unnoticed.

And can you remind us where your alloys are found on typical industrial gas turbines and who you would be shipping to?

Well, think about anyone, without naming names, think about anyone that's making the large IGT turbines. It's just a jet engine on land, right? So you have some of the same type of products. What we ship into that market is a different alloy than goes into aerospace engines, but it has a similar production process, at least on the front end of the melting cycle. The finishing part is a little bit different. So it's a very attractive product for us.

Okay. And I'll sneak one last question. And Tim, are the push-outs at Dynamet, are those just aerospace, or is that medical, or is that another end market?

Yes, Scott, the push-outs were actually in additives, not in Dynamet. Yes, I think you can characterize those as more aerospace type materials in our additive business.

Okay. Got it. Thanks.

Thank you. We have the next question from Andre Madrid with BTIG. Please go ahead.

Hi, everyone. Thanks for taking my question.

Good morning.

I guess, looking forward, I see power generation, obviously we just talked about that. Doing a lot to fill in the gap in the interim or the immediate term, but looking long-term, beyond '25, are these markets enough to offset any potential weakness at aerospace?

Well, Andre, I think most of us don't believe that any weakness in aerospace is going to be long-term. The macro demand is just too strong. We all believe that in this case here, Boeing will find a way to reach an agreement that is good for both sides. I believe that's going to happen. I don't have any fear that in the long-term, you're going to have aerospace weakness. This is a near-term phenomenon that we'll get through. When that happens, you're going to see a whole different level of demand outstripping supply.

Got it. And then I guess just, I know you mentioned in the slides and on the call, growth beyond '25 is definitely expected. And obviously your comments just now further confirmed that that's the expectation.

Well, I mean, we can play a lot of what-ifs, right? From my experience in the industry, this will get resolved. It's too big not to get resolved. Once this is resolved, our fiscal 2026 will be a tough comp to 2025. We see it as being bigger than 2025. We're running a wide range of different build rate scenarios. With what we're doing on the productivity side, product optimization, and repricing of contracts, we see 2026 as another meaningful step up versus 2025. It's not a doom and gloom situation. It's a particular point in time where we have some significant uncertainty. Companies like Carpenter Technology have the strength and the attractiveness to other stakeholders because we can pivot. We have a market the ability to support MRO to support other customers using this as an opportunity to grow.

Got it. And if I could just sneak one more in, more additive charges this quarter. Is this just overflow from last quarter's facility closure?

Yes. To be really transparent, that was just a little bit of inventory that was left over. We probably should have taken in the prior quarter but decided to move on and get that behind us.

So we're probably through the full of it?

Yes, but Andre, there's not much. It is not even material, what you're talking about $1 million on 100 and 135 and SAO. So it's not.

No, definitely none. Just housekeeping. I really appreciate the color and all the answers. I'll jump back in. Thanks.

Yes, thank you.

Thank you. The next question is from Phil Gibbs with KeyBanc Capital Markets. Please go ahead.

Hi, good morning. Good call so far. Thank you.

Yes, good morning.

Tony, on the SAO bridge for Q2 looks to be flat to a little bit up in terms of profitability. Is that more driven by volume, or more driven by price mix? Because I can't remember if this quarter typically is seasonally a little bit stronger or weaker relative to the one you just took the preventative maintenance on in Q1?

Thanks, Phil. This is really the same answer that Josh asked earlier about quarter-over-quarter. You're going to take preventative maintenance, some planned maintenance activity in every quarter. If you're not, you're not running your facility the right way. You're doing planned maintenance every quarter. So if you look at Q1 to Q2, relatively, I think about the same amount of production days when comparing the two quarters together. Certainly, you've got two big holidays in there. It's the end of the calendar year for some other people, for most other customers. That is a little bit annoying. The fact that we can guide to a higher in the second quarter, even with those types of issues, is a very strong number. We're operating with some really big numbers, Phil. You've been around for a while and you know what they were even in 2018/2019.

Thank you so much. And then on your full year guidance toward the higher end and you've made some comments on there being opportunities perhaps to exceed that guidance. Is that in your mind more volume or more pricing dependent excluding seasonality, which is stronger in the back half?

It's going to be all three of those major legs to the stool. It's going to be what happens from contract pricing, product mix optimization, and certainly productivity. We're very methodical with our guidance updates, and we achieve them. We took a step here by moving to the high end of the guidance. The folks working in our plant are working on how they can move past that.

And a last one from me, this acceleration comment you made toward the tail end of the quarter, was that more so? Was that more so on the MRO side, essentially because you said that some expedites again and some emergency work there? Where would you have seen the acceleration, I guess, relative to early in the quarter? Thank you.

Yes, I would say in general on the aerospace side, whether it's for MRO or OEM, depending on the customer, but the acceleration towards the end of the quarter was primarily on the aerospace side, although certainly in other areas as well, especially power generation and others. But primarily aerospace was where we saw that pick up towards the end of the quarter. That's good news.

Absolutely. Thanks.

Yes. Thank you, sir.

Thank you. We have a follow-up question from Scott Deuschle with Deutsche Bank. Please go ahead.

Thanks. Yes, Tony, do you see much demand in the space market for alloys from companies like SpaceX? And if you do, has that demand reached a point where it's at all material yet?

Yes. Specifically with the customer you talked about? I don't want to go too far. That's an additive customer, and there are major players. That's some of the choppiness that you see in orders. Strong yes, still small, but it's not consistent. For a very small business like additive, this is what you see, the swings in their profitability from quarter-to-quarter, depending on how those orders come in.

Okay. Thanks. That's all I had. Appreciate it.

Yes, thank you.

Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Mr. John Huyette for any closing remarks. Over to you.

Thank you, operator. And thank you everyone for joining us today for our fiscal year 2025 first quarter conference call. Have a great rest of your day.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.