Arxis, Inc.

Good morning and welcome to the ARCSIS Second Quarter 2026 Results Conference Call. Joining me today are Kevin Perhamus, President and Chief Executive Officer,

and the Chief Financial Officer of ARCSIS. Before we begin, I'd like to remind everyone that today's discussion will contain forward-looking statements relating to future events and expectations. Actual results may differ materially from those projected due to a number of risks and uncertainties. Please refer to our most recent SEC filings and today's earnings materials for discussion factors that could cause actual results to differ materially from those forward-looking statements. During today's call, we may also reference certain non-GAAP financial matters. Reconciliations to the most directly comparable gap measures are included in today's earnings release and related presentation materials.

With that, I'll turn the call over to Kevin. Thanks, Brian, and good morning, everyone. I'll begin with the highlights of the quarter and look over our performance, then spend a few minutes discussing why we continue to believe that ARCSIS is well-positioned to compound over the long term. With that, let's get started on slide three. We delivered another excellent quarter. with second quarter sales of $501 million, an increase of 25% year-over-year, and adjusted EBITDA of $211 million, up 38%. The strong revenue growth translated into adjusted EBITDA margins of 42.2%, an expansion of 390 basis points year-over-year. Revenue growth was balanced across our key drivers, new business wins, pricing, and acquisitions, with continued demand across our underlying markets contributing the remainder. This performance was broad-based. Each of our three end markets delivered double-digit growth, both of our segments grew double-digits, and no single customer, platform, or program meaningfully drove these results. That breadth is consistent with the diversified business we've built. Beyond the operating performance, we also announced three additional acquisitions, whose combined EBITDA exceeds our internal annual and M&A Target. I'll come back to those in a few minutes, but they demonstrate the same repeatable acquisition strategy we've built at ArcSys in partnership with ArcLine. Overall, our first half performance and increased secured revenue gives us increased confidence in the balance of the year and supports our decision to raise our full year guidance. Azad will walk through the updated outlook and assumptions in greater detail in a few minutes. Turning to page four, I want to briefly connect the quarter's results back to our differentiated business model and Playbook because the performance requires consistent execution against both. At our core, ArcSys is an engineer component company. We develop proprietary products that solve difficult engineering problems and become deeply embedded in our customers' platforms. Once we're designed in, those positions typically remain in place for decades. Our confidence in the model comes from the combination of proprietary technologies, broad diversification and long platform life cycles. Together, those characteristics create a company designed to perform consistently over long periods of time. Finally, we are also balanced across our end markets and between our electronic and mechanical segments. While the products and applications may differ, the underlying business model is consistent across the entire company. On page five, what differentiates ArcSys over the long term is our proprietary ArcSys Edge Playbook. It starts with our decentralized operating structure. Our business units move quickly, stay close to their customers, and are empowered to make decisions. At the same time, the entire organization remains connected through a common operating system and shared processes. The second piece is our new business engine. We take a systematic approach to identifying and winning new opportunities by bringing together our engineers, sales teams, and business units to solve customer problems. We align incentives across those teams so everyone is working towards the same objectives. Year-to-date through June, new business bookings have remained very strong, and the growth of those new business bookings is in line with our overall organic growth rate. That level of activity more than supports our new business growth target and reinforces our confidence in our ability to consistently grow faster than the markets we serve. The final piece is our repeatable acquisition engine. Turning to slide six, I'll show you what that looks like in practice. Since our IPO in April, we've announced three additional acquisitions. Omnetics, Magcanica, and Blueline, which we just announced yesterday. From the outside, these businesses look very different. They make different products, solve different problems for our customers, and operate in different niches. But underneath, they're all exactly the kind of business that we're looking for. Every one of them fits the same acquisition criteria we've followed since ARCSIS was formed. They all bring additional technologies, customer relationships, and engineering talent into the portfolio, giving us more opportunities to generate new business over time. For example, Omnetics brings industry-leading miniature interconnect technology, expanding our capabilities in harsh environment electronic interconnects. MagCanica has proprietary torque sensing technology that enhances our position in high-precision sensing applications and creates new opportunities across aerospace and defense. Blue Line expands our offering of proprietary sensing technologies, including high-reliability precision position sensing and motion control systems. Finding businesses that fit the model is only part of the equation. Having a repeatable process to evaluate and execute those opportunities is just as important. Geometrics acquisition is a good example of the power of the ArcSys-ArcLine partnership. Let me walk through that on the next slide. Omnetics is a business I've admired for about 20 years because it fits the Arctis business model extremely well. It has proprietary technology, deep engineering capability, and highly differentiated products that are designed into platforms for decades. The opportunity came to market right in the middle of our IPO process. During this time, we were focused on becoming a public company, but we did not want to miss out on a business like Omnetics. That's where having a unique partner like ArcLine, whose principles will be long-term holders of our stock, truly makes the difference. Our team stayed focused on understanding the business, developing the operating plan, and determining how Omnetics would fit within ArcSys, while ArcLine worked in parallel on diligence, financing, and transaction execution. That allowed us to move quickly without taking our eye off either priority. That's the real advantage of the partnership. It expands our capacity to identify and execute acquisitions while our teams remain focused on creating value. And that's not unique to Omnetics. It's the same process we followed across more than 35 acquisitions over the past six years. And it's one of the reasons we continue to see a significant runway ahead. With that, I'll turn it over to Azad to walk through the financials and our 2026 outlook.