Thanks, Neal.
take that has approach our up share for future. and I'd back for I outlook business moment decades how us us for XXXX, to step and a well talk like Before served the for success the about setting it's in a
applications to markets. demanding positions on that First, very our those barriers entry. have differentiation areas, significant served relationships strong in competitive with we we blue-chip and have are long-standing areas established customers and through present focused niche product built in those markets In
comes relationships to our our decisions. needs. customer delivery made commitments performance on-time understanding In we levels, addition long-term strong to our and mutual prioritize to ensuring maintaining customers' satisfaction our customer help strong customers continued with of a evolving The have business quality, down
As demand in to grows, long-term to us supplier. strategic for for needs our commit products customers expect a and our additional turn, as invest key their meet capacities to us
of not expanding the our which the a our products and Warrick flat-rolled to high-strength meet produces customers capacity are we make upgrading These produce rolling needs to applications. mill, for packaging value-added general products commitments investments as investments. and coated support aerospace, rolling our to These continuing are engineering Trentwood at mill greater such of high mix small
needs, backed we have understanding returns with good the our beneficial to long-term a has shareholders. customers' it secure So to that mutually we crucial and our very investments of been deliver solid ensure agreements
outlook basis. approach explain me influenced and let has our a market provide end Now on decisions how and our investment application our consolidated for business XXXX by
the to and strong. traffic miles prior on mentioned I for aircraft calls, very Airline Starting driving demand continue aero new fundamentals have Slide freight commercial increase, and with passenger XX as in aircraft. high-strength, remain
Although work aircraft that are XXXX, high in expected and through the in chain customers single from increase to digits continue recover airframe challenges impacted and XXXX. supply labor quality our in year-over-year shipments deliveries to large issues
hold OEMs backlog. of These aircraft years
short-term have environment, this need in resulted as a Kaiser, we even is a backlog though the book-to-bill choppy year ever high year. we're at those At it's XXXX. conversion have a in shipments inventories and been into our to a near strong record continuing fact, higher the off worked aerospace has inventories strong In on impact which coming Despite demand, been operating ratio revenue for and through OEMs. will as with be high-strength, in
remain and offerings defense space lead temporary So by destocking XXXX approximately business shipments and will phase large enter year-over-year. will while aircraft our commercial to our declines we expect X% to revenue OEMs in that in conversion a of steady, jet, X%
few very large the commercial gain from plate it to we mills about aircraft heat-treated we our X% with qualified of rolling well start Trentwood XXXX. to the Looking and applications. This increase at next align X% materially additional general creation value excited VII expansion we potential production major rates Phase the certain out, mill, rolling are expect world offers to our is for in facility, one engineering our supply should investment to the further in our at aerospace This capacity expect increase in to shareholders. the products and of expansion this
completed tailwind to our XXXX. This expected is half continue expansion market high-strength the a and will be business. in Overall, of the multiyear to aerospace provide second to strong
the to of us tremendous contributor on material have our facility our we are XXXX and work the years Members am packaging our and the aware improvement where of along in Warrick we lead faced in our followed to to our reentered audience are we XX. to challenges move the towards will over who packaging a gotten the a making business. major that today on performance closely has I which last story Let's beyond. of several way have Slide since market proud
one facility American of to mills is domestic aluminum North packaging a industry. select major Warrick Our the rolling very few dedicated
applications, uniquely and a It demand meet into of as to investing products. products supplier for beverage packaging coated and we various is these sheeted the are increasing positioned long-term food
Packaging offering, to position customers have successfully portion a our with are strong niche attractive generate a and the returns increase market of margin industry-leading of which our same business we market, highly a applications, all The and playbook on services, differentiated very investments in demanding transform where We products the for and its allow and have focus our in are market made executed Warrick provide deliver investors. poised following establish profile. we we other us to end
as line its coat final stages, capital deliver its roll additional is well expenditures of new in terms in to Our product. as both investment readiness coated
coated stated, higher-margin As fourth value-added we project of the we a products. expect line highly to capacity coat roll previously convert to our existing approximately that is XX% strategic
will and begin roll We are qualification the coat customer presently shortly new commissioning line thereafter.
ramping We year. begin year with production in in negotiations place product remainder this In in investment and completion by coated-centric for year. This of this shift will availability end anticipation half this from the through be expect more customers. the with remainder the we of shift of expect of stages shipping total first and We're the of first mix. XXXX, shipments project, those to contract will of in generate, from final new line are product to the to this temporarily full being quarter reduced capacity coating also quarter the of to this in customers multiyear coated we the line qualifications now second a result began late the towards completed shipments begin as agreements we the the
in quarter reach year. half higher and the slowly in the We run the expect higher value the rates second ramp second mix then to and of shipments resulting
shipments benefit our at the become To comment, of to the to half. apparent investment in XX% the in expect Warrick expect strongly XXXX up the numbers with X% conversion and will in for year, second of skewed year-over-year such, we be the to packaging by add As to revenue that half increase X% context second to year. XX% more our full to
XXX our XXX said have in margin to to of I to we business run basis rate. our investment at yield As consolidated full expect before, points EBITDA expansion Warrick
to quarter be in we this we the we and see it guide expect the quarter-to-quarter, to believe While fourth benefit sustainable. full run year, won't rate of
are markets, long-term is packaging We be solid particularly space driver in automotive The currently a reallocated sufficient which production is since compelling. the industrial. to been future the and is towards of of demand, long-term market a including we, our a and portion unique being with not facility. occupy capacity beverage has current our focus to end both of industry imports. performance. alone course, demand, fair And dynamics our North meet meaningful extremely satisfied in in on There expect at demand packaging American currently let sole some other a by food packaging, Warrick
customer a growth long-standing optimistic packaging to secular results strong higher-margin coupled to with market expected range in our in relationships strong annually, and drive products, multiyear are on highly about X% With X% our applications. end value-added focus with ability we the coated contracts our
Slide long be engineering in products. general Turning on to to XX. Destocking appears over
to the a certain of fact, but long encouraging lows moved our the In January in expect out even product XX XXXX inventories Manufacturing year into Index are over expansion remain service months and in consecutive elevated, first territory at for seen contraction. products center Purchasing not start October after a since Plate ISM Managers decade. are midyear. of time for we will by inventories of these the Shipments
to for up volumes year-over-year. revenue X% initial for XX% be Our outlook is XXXX and to conversion
us engineering the growing mill to of for customers at enable and general our As we heat-treated to to Phase plate. rolling needs continue expand noted, capacity our expect VII Trentwood meet
American year. automotive North to to XXXX down be Slide expected turning on production compared industry Finally, to with is in modestly flat last XX.
continue some the softer production While Light to exposure environment, towards segments, to do various are XXXX. Truck general although demand we rates, our resets which a the shipments should we in have have market. on SUV market skewed favorable are Also, contracts overall follow we and likely to outperform
to industry product over Due up niche X% to production. with higher consistent with X% these categories mix X% be expect we a lower on of revenue focused shipments to are factors, XXXX, expected we Again, conversion on and value-added competitors to few solid products. X%
XXXX Turning for to on summary Slide XX. our outlook
in anticipate prior to we revenue margin any ramp and EBITDA valuations. year to conversion with In may EBITDA consolidated will the of our full basis to XX% to up come make We accounting meaningful to expected be uplift X% expected increase year and we see XX points expect the year we new to of year-over-year. in, of EBITDA on in XXX half our line the that changes investments, XX% half EBITDA second full inventory around second margin the with
market and pricing being the include considerations assumptions and Our market and current of investments our scrap. on outlook the of online brought described, timing availability conditions
not do evaluating we across all are recently assumptions of tariffs, include impacts our which our businesses. Notably, potential from announced
through balance cycle history. recent Our in as shareholders as also move year our the of will investment strengthen from sheet we pace steady our capital benefits and the the continue largest to will will reap Kaiser's deleveraging, additional
to hard announce and the reached the Trentwood we of us to decade. agreement early Steelworkers Newark rolling represented our pleased with Finally, plant end at I'm mill, employees our alloy that taking United
but Our of worked extremely I'm another together customers. on times United existing in for past, our successful relationship as beneficial early Steelworkers, proud mutually done customers. on our I thank with and September, our contract we the many our in and came everyone the ensure service teams uninterrupted contract share on we to have employees, to want a our expires company outcome for to and involved
In summary, and resulting tailwinds strategic we positions. with expect to market investments from strong exit our strong XXXX
on I the to expect transformational sharing that As for year. throughout our our look the remains said a unchanged. company, call, continued year to prior we forward you with be progress and expectation I XXXX
the questions to that, now may Operator? you call open With I'll any have.
