Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick Industries' first quarter 2026 earnings conference call. My name is Sherry, and I'll 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 this conference is being recorded. And I will now turn the call over to Mr. Steve O'Hara, Vice President, Investor Relations. Mr. O'Hara, you may begin.

Good morning, everyone, and welcome to our call this morning. I'm joined on the call today by Annie Nemeth, CEO, Jeff Rodino, President, and Matt Feiler, 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 or any forward-looking statement, whether as a result of new information, future events, or otherwise. Additional factors that could cause results different materially from those described in the forward-looking statements can be found in the company's annual report on Form 10-K for the year ended December 31, 2025, and the company's other filings with the Securities and Exchange Commission. Before we begin, I would like to remind you that on April 17, 2026, Patrick announced the merger of equals discussions with LCI Industries. Andy will be providing a brief comment in his remarks. However, we are unable to answer any further questions or discuss the potential for a transaction beyond Andy's remarks at this time. I would now like to turn the call over to Andy Neiman.

Thank you, Steve. Good morning, everyone. We appreciate you joining us on the call. Today, we'd like to talk about our first quarter results, industry conditions, expectations for the year, and also briefly discuss our recent announcement related to discussions for a potential merger of equals with LCI Industries. First quarter results continue to highlight the strength and resilience of our diversified platform, our innovation and product development efforts over the last two years, and the incredible dedication of our team to support our customers in this dynamic environment. Marine revenue growth, in spite of shipment declines, along with power sports revenue growth, helped offset double-digit shipment declines in our RV and manufactured housing markets. Net sales for the first quarter were $997 million, off 1%, with overall organic growth contributing 8%. Earnings per diluted share was $1.10, including approximately 10 cents of dilution from our convertible notes and related warrants. On a trailing 12-month basis, net sales were approximately $3.9 billion, I'm incredibly proud of our team's disciplined execution on our operational playbook to deliver results in an uncertain and unbalanced shipment environment. Retail demand is seemingly constrained by macroeconomic factors, the war in Iran, consumer confidence, and interest rate uncertainty. Importantly, OEMs and dealers have remained disciplined, keeping dealer field inventories lean, positioning our markets for a sustained recovery. Our diverse end market exposure in deep and broad brand forward product portfolio remain a compelling advantage, enabling us to deliver more complete, full solution-oriented offerings to our customers across the good, better, best framework, while deepening our partnerships with OEMs. We remain focused on empowering our brands to lead with innovation while engineering new products and experiences for our customers. The nimble scalability of the Patrick platform enabled us to deliver quality with speed, depth, and consistency across every end market we serve, driving content expansion, deeper OEM integration, and continued opportunity for aftermarket growth. Our advanced product group is driving meaningful progress on multiple product solutions, including our composite strategy and an entry-level tower audio solution to help drive better affordability. We are increasingly collaborating with OEM customers to integrate solutions-based models into new and existing platforms, replacing legacy materials with higher performing alternatives that offer durability, weight, and design advantages. As a result of these benefits, coupled with OEMs placing greater emphasis on material sourcing, we believe our ability to procure, value add, value engineer, and deliver full solutions will continue to position our value proposition as a true low-cost solution for our customers' ever-changing needs, representing durable, long-term growth opportunity for Patrick. Additionally, our investments in technology and innovation continue to generate real, measurable impact, as the integration of automation and AI, which is in its infancy, are enhancing visibility, efficiency, and responsiveness across our operations. These investments will help us manage costs, optimize production, navigate demand variability, and better align and communicate with our customers, providing enhanced customer service. Regarding tariffs, our decentralized business structure, sourcing flexibility, and close coordination with suppliers and customers have enabled us to mitigate impacts over time. Our team has expertly navigated changes to trade policy in the past, and we are confident that they will continue to operate with agility. maintaining our position of strength. We do not expect a material impact to our full year 2026 outlook from tariffs. From a financial standpoint, we use cash in operations during the quarter consistent with normal seasonality and reflecting a proactive strategy to add inventory that supports anticipated growth in customer demand for composites and other materials. Importantly, we continue to expect strong free cash flow generation for the full year supported by disciplined working capital management and the underlying earnings power of our business. While 2025 presented a more challenging valuation environment on the M&A front, largely related to macroeconomic uncertainty, we continue to be excited about the deals we did execute and the ones in the pipeline currently being cultivated. Our teams are well equipped to advance our proven playbook, targeting well-run companies with durable value creation while prioritizing leadership, talent, and cultures that align with Patrick's long-term objectives. Long term, we are confident in our ability to outperform as a result of our organic growth initiatives, structural advantages, and financial strength, including end market diversification, strong balance sheet, robust free cash flow generation, and operational agility. Patrick is well positioned to continue generating value across a range of market conditions. And as demand in our markets recovers, we believe we will capitalize meaningfully. Now turning to our recent announcement regarding discussions about a potential merger of equals with LCI Industries. While we cannot discuss or confirm specific details at this time, we believe the potential combination of our two companies could provide additional opportunity to drive value and better partnerships with our customers, and in the form of innovation, value-add-value engineering, cost-effective full solutions, and an overall low-cost model to help partner in driving better affordability. Together, the two companies could further enhance our overall value proposition by obtaining substantial cost savings through synergies, operating efficiencies, and deployment of best practices, as well as continued development of our bench strength for long-term shareholder value. We will communicate appropriately and in alignment with regulatory guidelines as appropriate and in accordance with regulatory requirements as we continue to evaluate this opportunity. I'll now turn the call over to Jeff, who will highlight the quarter and provide more detail on our end markets.