Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick Industries' fourth quarter 2025 earnings conference call. My name is Julian, and I will be your operator for today's call. 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 during the conference, please press star zero on your telephone keypad Please note that this conference is being recorded. 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, and Matt Feiler, SVP Finance and Chief Accounting Officer. Andy Rader, Chief Financial Officer, is also on the call and will be available for Q&A. 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 that differ materially from those described in the forward-looking statements include can be found in the company's annual report on Form 10-K 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. Good morning, everyone, and thank you for joining us on the call today. I want to begin by expressing my gratitude to the entire Patrick team for their leadership, dedication, passion, hard work, and relentless commitment to serve and partner with our customers throughout 2025. This team continues to elevate the standard at which we operate in alignment with our Better Together values. Their commitment is what has continued to drive and deliver strong operating and financial results in a very dynamic environment. Our businesses once again proved resilient in 2025, and our focus over the past two years on product development and innovation efforts paid off in the form of meaningful content growth with the 2026 model year changes as we continue our ongoing evolution toward our full solutions model. Our teams remain focused on disciplined execution, scalability, strategic capital allocation, and reinforcing our customer relationships, enabling us to further drive content gains in partnership with our customers across our outdoor enthusiast markets. In 2025, despite macroeconomic uncertainty due to the tariff environment, we welcome medallion instrumentation systems, quality engineered services, Aegis Group, and Lilypad Marine to the Patrick family. These teams and businesses bring new technology, innovation, deep entrepreneurial spirit, strong engineering leadership, and additional aftermarket content and runway to Patrick. All four of these organizations complement our existing marine full solutions platform, enhancing the value and breadth of products and services we can bring to our customers. Additionally, Early in 2025 we strategically complemented our existing investments in composites through the acquisition of Elkar composites. We continue to highlight the many benefits of these materials relative to the standard wood products used by both RV and marine industries and are increasingly optimistic that we're just scratching the surface related to the long term opportunity for composites. We expect to debut further manufacturing capabilities in alignment with our industry-leading lamination and composites innovation and platform in 2026 that reinforce Patrick's leadership in providing next-generation solutions to our markets. Turning to the aftermarket, our growing aftermarket business has helped support both diversification and resilience through the cycle by enhancing our margin quality, deepening customer relationships and insights, and enabling us to better capitalize on demand for replacement and upgrade components. This year, as noted, we increased our presence in the space through various channels and now have more than 500 Patrick SKUs on the RecPro site from across our outdoor enthusiasts and markets. Simultaneously, we have formalized our unified aftermarket strategy and structure across Patrick, leveraging expertise from multiple facets of the organization to identify white space opportunities, target M&A candidates in the pipeline, and continue the rollout of aftermarket products to consumers and dealers. We also continue to invest in and use leading technologies to further embed our customer first solutions. I want to introduce our industry leading full scale virtual design and reality solution that we call the experience, which Jeff will further highlight and which builds on our existing design platform at our product showcase studio in Elkhart. This technology provides actual scale modeling and product development through technology to further deepen our collaboration and partnership with our valued customers. Moving to our financials. In the fourth quarter, net sales improved 9% to $924 million, primarily driven by solid organic growth and acquisitions, partially offset by wholesale shipment declines in each of our RV, marine, and housing markets. Adjusted earnings per diluted share was 84 cents, including approximately 6 cents of dilution from our convertible notes and related warrants. For the full year, net sales increased 6% to approximately $4 billion, and adjusted earnings per diluted share was $4.44, including additional dilution of 26 cents related to the convertible notes and related warrants. Our solid balance sheet and strong, consistent cash flow generation continue to provide us with meaningful financial flexibility to thoughtfully execute our capital allocation strategy. We delivered free cash flow of $246 million this year, enabling us to reinvest in the business, pursue strategic acquisitions, and continue to take advantage of our scalability when market conditions improve. We further increased our dividend by 17.5% this year with our regular quarterly dividend in November, reflecting the strength and resilience of our model and our continued confidence in our cash flows in the markets we serve. We are committed to redeploying capital back into the business in ways that support long-term value creation, including accretive M&A, organic investments, and returning capital to shareholders when appropriate, all while maintaining a disciplined leverage profile. Next, I want to take a moment to thank Andy Rader for his leadership, partnership, dedication, and contributions to Patrick. He is a tremendous talent, and we wish him continued success and are excited for him in his next chapter. We are also extremely confident that Matt Feiler's deep financial expertise, organizational leadership, and extensive knowledge of Patrick and our end markets solidifies us and positions us extremely well for the future as he steps into his new role as CFO. And lastly, as we look ahead to 2026, we are focused on delivering profitable growth through the continued execution of our model while investing in the capabilities that differentiate Patrick. Our ability to consistently support our customers through evolving end market conditions while managing costs, maintaining balance sheet strength, and allocating capital with discipline is more important than ever. With a strong foundation in place and significant opportunities ahead, We believe Patrick is well-positioned to deliver sustainable, profitable growth and create long-term value. I'll now turn the call over to Jeff, who will highlight the quarter and provide detail on our end markets.