AstroNova, Inc.

Greetings. Welcome to Astronova first quarter fiscal year 2026 financial results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Deborah Polowski, Investor Relations for Astronova. Thank you. You may begin.

Thank you, and good morning, everyone. We certainly appreciate your interest in AstroNova, and thank you for sharing your time with us today. Joining me on our call are Greg Woods, our President and Chief Executive Officer, and Tom DeBile, our Chief Financial Officer. You should have the earnings release that went out this morning, as well as the slides that will accompany our conversation today. If not, you can find these documents on the investor relations section of our website at astranovainc.com. If you would turn to slide two, we'll discuss the cautionary statement. As you are likely aware, during the formal presentation, as well as the Q&A session, management may make some forward-looking statements about our current plans, beliefs, and expectations. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties, and other factors are provided in the earnings release as well as in other documents filed by the company with Securities and Exchange Commission. These documents can be found on our website or at scc.gov. Also, as noted on the slide, management will refer to some non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. You can find reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. Now, if you will please turn to slide three, I'll turn the call over to Greg. Greg?

Thank you, Debbie, and good morning, everyone, and thank you for joining us. Before I get into the details of the quarter, I want to reiterate our strategy to drive long-term revenue growth and improve profitability. AstraNova has a unique position in the global data visualization market with deeply embedded relationships, high-performance technology, and a strong recurring revenue model. Our goal is to leverage our technologies and market position and our streamlined organization to deliver stronger growth and earnings with more predictable performance. Core to this strategy our three strategic drivers. First, our aerospace segment, which has a leading market share in cockpit printers, is rapidly advancing the transition of customers from our legacy models to our high performance and high reliability Tuffrider printers. This transaction deepens our position with leading aerospace customers, decouples us from royalty costs associated with legacy products, and simplifies our product portfolio which reduces supply chain complexity and inventory levels, improving cash generation and margins. The transition also enables us to capture a larger percentage of aftermarket sales. Our Tuffrider technology enables us to better leverage the positive macro backdrop of the commercial aerospace market as both Boeing and Airbus continue to ramp up their build rate. The second strategic driver, is the launch of highly disruptive next generation product identification solutions. These commercial scale printing solutions unlock new end markets with large customers that have higher volume printing needs. They also allow us to better control the supply chain for our ink and critical print engine components, lowering costs over time. This provides more avenues for growth and we have already been gaining traction with both new and existing customers. And the third strategic driver is further streamlining operations through headcount reductions and restructuring while strengthening segment-level accountability. We are working to structure incentive compensation with key performance indicators, including growth, profitability, cash generation, and earnings per share to further improve alignment between management and shareholders. We are laser focused on executing this strategy. With that, if you'll turn to slide four, let me touch on the quarterly highlights. We believe that our first quarter of fiscal 2026 results are an early indication of the traction we are making with our strategy. We delivered double-digit growth in both segments and increased consolidated adjusted operating income by 13.5% year-over-year. This was driven by our continued Tough Rider transition, renewed defense shipments of half a million dollars, higher demand for our desktop label printers, and a $1.4 million increase in product sales from last year's acquisition. We also accelerated our previously announced $3 million annualized cost reduction plan by completing $1.9 million of annualized cost saving actions in the quarter. most of which will begin to be realized in the second quarter. We plan to complete the remainder of the cost-saving actions in the second quarter. During Q1, we launched three next-generation product identification solutions ahead of schedule. The QL425 and the QL435 were launched as an extension of our flagship quick label line of high-resolution color label printers. bringing a new level of speed, flexibility, and cost efficiency to our professional labeling customers. We also released a new direct-to-package printer, the AJ800, which enables printing on sustainable packaging materials like corrugated cardboard, die-cut boxes, and paper bags, as well as wood. And the AJ800 expands our product portfolio into larger print media and higher-volume production. We are ahead of schedule with the rollout of two additional next-generation products that we have in our pipeline. These are expected to be launched in this second quarter. In Q1, we uptrained and upgraded our sales team, implemented a new targeted sales strategy under our recently appointed segment leadership, and restructured our go-to-market approach. We are pleased with the progress the team has made already and encouraged by the early interest and orders they have generated. In aerospace, at the end of the quarter, we announced a renewed $10 million multi-year contract win for the delivery of our Tuffraider products over the next five years to a prime defense contractor. And shipments on this program began late in Q1. We expect to realize $1.7 million of revenue this fiscal year from this program. The hard work and hard decisions made over the past six months are improving results, but we still have more work to do. We expect our margin profile and aftermarket sales to strengthen as the rollout of our new product ID solutions gain market acceptance and our tough rate of transition continues to advance. For the full year, we continue to expect to deliver revenue in the range of $160 to $165 million and adjusted EBITDA margin in the range of 8.5% to 9.5%. This is a critical juncture for AstraNova, and we are confident in our ability to deliver long-term shareholder value through the focused execution of our strategy. Looking at slide five, we will review orders and backlog and discuss the opportunities we are seeing in our markets. First quarter orders of $34.9 million were up 5.4% for $1.8 million compared with prior year period driven by a combination of higher demand for new and existing product identification hardware and supplies. Product ID orders were up $3.3 million to $26.2 million. We secured a three-year label supply contract with a multinational beauty company, which is a new account for us, We also captured a renewed upsized contract from a large private label coffee grocer in the UK. This current customer also will be upgrading its entire fleet of quick label printers. While declines of $1.5 million in aerospace orders partially offset overall order growth, we continue to have strong demand for tough riders, reflecting the improved bill rates of the major commercial aircraft OEMs. As we have previously pointed out, Aerospace orders can vary quarter to quarter based on timing of customer contracts. For example, shortly after the end of Q1, we received a $1 million Tuffrider printer order from an in-flight entertainment customer. During the quarter, we did also further expand our space launch data acquisition business. We secured an order from a new customer, Amazon Kuiper Systems, for our data acquisition systems to be used on their low-Earth orbit satellite program. Backlog for the quarter declined by $2.8 million year-over-year to $25.5 million, primarily driven by clearing previously delayed shipments. As we move through fiscal 2026, we expect to benefit from our new product introductions and the increasing build rates with Airbus and Boeing. Before I pass the call over to Tom, please turn to slide 6, and I will touch on what we are seeing regarding tariffs. The headline commentary is that so far the impacts have been negligible for our business. Our aerospace shipments are insulated from many of the tariffs due to the contracts we have in place, which essentially hedge our exposure on the sales side. Most of our exposure comes from the component parts. However, due to the expense and regulatory difficulties associated with making changes to aerospace avionics, We typically carry large inventories of the most critical components. This gives us a multi-month protection from vendor and or tariff issues. For product ID, our next generation print engine allows us to source ink from across the world, providing flexibility on supply costs. Additionally, our global manufacturing presence in the United States, Europe, and Canada gives us more options for rerouting our shipments. To further combat tariffs, we implemented price increases on April 1st and tariff surcharges in the first week of May. We continue to remain agile and look for ways we can partner with and source from alternative suppliers to minimize cost impacts. And I'll hand the call over to Tom for the financial review. Tom?