AAON, Inc.

Thank you for standing by. At this time, I would like to welcome everyone to the Aon, Inc. Second Quarter 2026 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's 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. I would now like to turn the conference over to Joe Mondillo, Director of Investor Relations. The floor is yours.

Thank you, Operator, and good afternoon, everyone. The press release announcing our second quarter 2026 financial results was issued earlier this afternoon and can be found on our corporate website, aaon.com. The call today is accompanied by a presentation that you can also find on our website, as well as on our listen-only webcast. We begin with our customary forward-looking statement policy. During the call, any statement presented dealing with information that is not historical is considered forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, the Securities Act of 1933, and the Securities and Exchange Act of 1934, each as amended. As such, it is subject to the occurrence of many events outside of AON's control that could cause AON's results to differ materially from those anticipated. You are all aware of the inherent difficulties, risks, and uncertainties in making predictive statements. Our press release in Form 10-Q that we filed this afternoon details some of the important risk factors that may cause our actual results to differ from those in our predictions. Please note that we do not have a duty to update our forward-looking statements. Our press release and portions of today's call use non-GAAP financial measures as defined in Regulation G. You can find the related reconciliations to GAAP measures in our press release and presentation. Joining me on today's call is Matt Tobolski, President and CEO, and Andy Chung, our CFO. Matt will start off with some opening remarks, Andy will follow with a walkthrough of the quarterly results, and Matt will finish up with our updated outlook for 2026. With that, I will turn the call over to Matt.

Thanks, Joe, and good afternoon. Q2 was another strong quarter, building on the momentum established in Q1 and reflecting continued execution across the business. Higher throughput across all four of our major facilities resulted in substantial volume growth, demonstrating the value of recent investments we have made across the organization, including supply chain management, lean manufacturing, operational excellence initiatives, expanded capacity, and leadership development. These efforts translated into our fourth consecutive quarterly revenue record, with sales increasing 101% year over year and 26% sequentially. EBITDA more than doubled from the prior year period, and we generated substantial earnings growth while converting backlog at a much faster pace across the enterprise. These results are tangible evidence that the investments we have made are translating into measurable operating progress. For an industrial manufacturing company, this level of organic growth and operational scaling is exceptional, and it reflects the strength of our markets, our strategy, and our people. Despite the substantial increase in production rates during the first half of the year, backlog remains nearly double prior year levels. Sequentially, backlog declined because production and shipments increased significantly across the enterprise, resulting in accelerated backlog conversion. That is exactly the outcome we have been working to achieve. Customer engagement remains strong, our pipeline of opportunities remains healthy, and backlog continues to provide meaningful visibility into future growth. Let me begin our brand discussion with basics. The long-term market opportunity remains compelling, supported by continued investment in data center infrastructure and the differentiated solutions we provide to the market. Basics branded sales were a record, increasing 216% year-over-year in the quarter and 501% on a two-year stack. For the first half of the year, sales were up 137% year-over-year and 570% on a two-year stack. Achieving and sustaining this level of growth requires coordination across engineering, operations, supply chain, manufacturing, and our field teams. Production increased across our facilities and I hope all of our stakeholders appreciate the significance of what our teams have accomplished. As we have scaled at an unprecedented pace, maintaining high standards across quality, delivery, and customer support has remained a major focus. We continue to see meaningful improvement as the systems, processes, and teams we have been building become more mature and effective. The progress is translating into better outcomes for our customers and stronger execution across the enterprise. Basics branded bookings were below the unusually elevated levels experienced in recent quarters. However, we do not view that as a change in the long-term opportunity. These projects are large in scale and can generate quarter-to-quarter variability in booking activity and award timing. Customer engagement remains strong. Our opportunity pipeline remains healthy, and backlog continues to provide substantial visibility into future growth opportunities. More importantly, our ability to support customers continues to improve as throughput increases, lead times come down, and additional capacity comes online. The underlying market opportunity remains very favorable, and we continue to see substantial long-term opportunities for growth. Turning to the Aon brand. The Aon brand continued to perform exceptionally well, gaining market share despite a relatively soft commercial HVAC market. Aon branded sales increased 40% year over year and 5% sequentially, reflecting improved production throughput, strong demand, and continued execution improvement across the business. These results point to meaningful market share gains and reinforce the strength of our product offering , and customer relationships. Increased production volumes also drove further lead time improvements during the quarter, although additional improvement remains a priority as we continue increasing throughput. Bookings of Aon branded equipment increased approximately 16% year-over-year during the quarter and were up approximately 45% on a two-year stack. Year-to-date, bookings increased 12% year-over-year and 25% on a two-year stack. Growth was primarily driven by continued strength in our traditional transactional business, which is particularly encouraging given the softness we experienced throughout much of last year. National account activity remained healthy and generally consistent with prior year levels. We also continued to see strong momentum with AlphaClass, our fully electric heat pump platform. Alpha Class orders increased 50% during the quarter and 54% year-to-date, and customer adoption continues to build. This platform is an important long-term growth opportunity as customers increasingly focus on electrification, sustainability, and energy efficiency. Strong Aon-branded bookings resulted in a 6% sequential increase in Aon-branded backlog despite significantly higher production rates. As a result, we remain focused on continuing to drive throughput, work down backlog, shorten lead times, and deliver for our customers. Turning now to margins. As we have discussed for several quarters, the level of demand we are experiencing has required us to scale the business rapidly. We have expanded our manufacturing footprint. brought new capacity online, invested in equipment and infrastructure, strengthened our supply chain capabilities, and significantly increased talent across operations, engineering, manufacturing, and support functions. These actions have been deliberate. They allow us to better serve customers, convert backlogs faster, capture market share opportunities, and build the operating platform required for the company Aon is becoming. Importantly, The underlying economics of the business continues to improve. Oklahoma's core operations are performing well. Memphis continues to perform meaningfully ahead of our expectations, and production throughput across the enterprise continues to increase. Consolidated margins remain pressured by the mixed impact of exceptionally strong growth, ramp of activity associated with new capacity, and price-cost timing dynamics. We continue to expect margin improvement through higher facility utilization, productivity gains, sourcing initiatives, improved price-cost realization, and a continued maturation of recently added capacity. The key point here is that we are not simply growing revenue. We are building a stronger operating company with scale, infrastructure, systems, and discipline to support higher revenue, stronger execution, improved margins, greater cash generation and durable earnings growth over time. We are confident in our ability to continue demonstrating the earnings power of this business as we move through the balance of 2026 and into 2027. And with that, I will now turn the call over to Andy.