Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick Industries' Second Quarter 2025 Earnings Conference Call. My name is Rob, and I'll be your operator for today's call. This time all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. And I will now turn the call over to Mr. Steve O'Hara, Vice President of Investor Relations. Mr. O'Hara, you may begin.

Good morning, everyone, and welcome to our call this morning. I am joined on the call today by Andy Nemeth, CEO, Jeff Rodino, President RV, and Andy Rader, CFO. Certain statements made in today's conference call regarding Patrick Industries and its operations may be considered forward-looking statements under the securities laws. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's annual report on Form 10K for the year ended December 31, 2024, and the company's other filings with the Securities and Exchange Commission. I would now like to turn the call over to Andy Nemeth.

Thank you, Steve, and good morning, everyone. We appreciate you joining us on the call today. Our incredible team continued to deliver disciplined performance and results in the second quarter of 2025, despite very dynamic market conditions. We produced top-line growth of 3%, resulting in revenue of approximately $1.05 billion, and on a trailing 12-month basis, approximately $3.8 billion. Adjusted earnings per diluted share was $1.50 in the second quarter, including approximately $0.03 of dilution from our convertible notes and related warrants. To date, as a result of our sales team's continued efforts and partnerships with customers, and along with new product development and advanced product group efforts, we've secured over $100 million in new business tied to the 2026 model year in our outdoor enthusiast end markets. We had platform wins across multiple markets this quarter, including our recently developed composite roofing system for RV OEMs, a new pontoon tower incorporating our own power bimini system, and a new windshield program in power sports, which Jeff will touch on later on the call. We are excited about the energy and momentum being created internally across our brand platform toward our full solutions model, enhancing product integration and innovative design at scale. The diversification of our portfolio continues to be a core strength, providing resilience across our business model in this dynamic environment. April's tariff announcements resulted in a pause in consumer activity in our markets. However, we're encouraged that this appears to be a competence-related pause rather than a fundamental shift in underlying demand. Based on recent commentary from leaders in the industries we serve, we believe people continue to enjoy the outdoor enthusiast lifestyle, which should create meaningful pent-up demand across our end markets. The sustained discipline at both the OEM and dealer level in our RV, marine, and power sports markets gives us confidence in a longer-term trajectory as economic certainty improves and interest rates stabilize. As Andy will highlight, we remain in a position of strength with a solid balance sheet and liquidity of $835 million, enabling us to execute on our capital allocation strategy with discipline and confidence. To that point, we are actively cultivating our acquisition pipeline, and we continue to invest in automation and innovation, which includes advanced data analytics and AI-driven capabilities, further paving the way for a more efficient and profitable Patrick in the future. Our strong cash flow generation, balance sheet, and liquidity position enable us to act quickly when opportunities align with our strategic and financial criteria. While we continue to evaluate strategic opportunities, we are also returning value to shareholders as demonstrated in the second quarter through quarterly dividends of $13 million and over $23 million in share repurchases. Looking to the back half of the year, we believe dealers will remain strategic in their approach to ordering, likely waiting until the fourth quarter or first quarter of calendar year 2026 to begin meaningfully restocking. Dealer inventories across our channels are lean, OEMs have maintained production discipline, and we are strategically positioned to scale quickly and continue executing the long-term vision that we outlined at our investor day last December. Additionally, we have continued to invest in innovation and automation, created our advanced product group, and enhanced and launched our full solutions model while also cultivating the next generation of talent that will take Patrick to the next level. We remain focused on executing on our capital allocation strategy, optimizing our cost structure, maximizing cash flow generation, delivering -in-class quality and service, and continuing to for both our OEM and growing aftermarket customer base. This disciplined approach bolsters the resilience of our model while preserving our ability to capitalize on opportunities to outperform our end markets. And finally, in the second quarter, we welcome back our former CFO Jake Petkovich to the Patrick family as president of our marine businesses. Beyond his past success with the company, Jake is an avid outdoor enthusiast, and we are confident that Jake's leadership will further advance our full solutions model in the marine business while solidifying our position as a market innovator and leader. Rick Ranger, prior president of marine and one of the architects of our marine strategy, remains an important member of the team acting as a strategic advisor. We remain incredibly appreciative of Rick's dedication, passionate service, and commitment to the Patrick team, vision, and culture. I'll now turn the call over to Jeff, who will highlight the quarter and provide more detail on our end markets. Jeff Petkovich Thanks, Andy,