Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick and Industry's second quarter 2026 earnings conference call. My name is Rob, and I'll be your operator for today's call. At this time, all participants are in 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. And I'll 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'm joined on the call today by Andy Nemeth, CEO, Jeff Rodino, President, and Matt Filer, 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 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 want to briefly address our previously announced merger agreement with LCI Industries. As you would expect, we are limited in what we can say beyond the information that has been publicly disclosed. We remain focused on continuing to execute against our strategic priorities while working through the customary steps required to complete the transaction. I would now like to turn the call over to Andy Nemeth.

Thank you, Steve. Good morning, everyone. We appreciate you joining us on the call. The second quarter's results underscore the continued resilience of Patrick's business as a result of our strategic diversification efforts and reflect many of the same themes we've discussed over the past several quarters. Net sales for the second quarter were $1.04 billion, off less than 1% year-over-year in these uncertain market conditions, as revenue growth in our marine, power sports, and housing end markets helped offset a decline in our RV revenue, which was heavily impacted by a 16% reduction in RV industry wholesale unit shipments. We estimate overall organic growth contributed 7% during the quarter, and adjusted earnings for diluted share was $1.29, including approximately seven cents of dilution from our convertible notes and related warrants. On a trailing 12 month basis, net sales were approximately 3.9 billion. Our second quarter results are an important reminder that Patrick is not defined by one cycle or end market. Our targeted investments over the last decade towards strategically diversifying our business model have created a more resilient platform with broader exposure to attractive market categories within the outdoor enthusiast space. As an example, compared to 2019, RV and Marine wholesale unit shipments are both off more than 20%, yet our trailing 12-month net sales are up nearly 70%, and our adjusted earnings per share is up more than 60%. We have thoughtfully expanded our capabilities across various end markets while continuing to deepen the technical, operational, and commercial expertise that allows us to bring more value-added, cost-effective solutions to our customers from our deep and wide product portfolios. Our teams continue to execute with discipline and a clear focus on staying close to our customers. We are focused on strategically positioning the business based on the current run rates and thoughtfully managing costs while preserving operational flexibility needed to respond quickly as demand patterns evolve. This same discipline is also evident across the industries we serve as OEMs and dealers have continued to prudently manage inventory levels in a way that we believe is healthier than in prior cycles. While this does not eliminate near-term volume pressure, we believe it continues to support positive long-term industry dynamics and positions the channel more effectively for an eventual recovery in demand. We believe elevated domestic fuel prices, higher interest rates, lower consumer confidence, and monthly payment and price sensitivity continue to weigh heavily on larger ticket discretionary purchases. Our role for our customers is to be a strong, value-added, solutions-oriented business partner. This work is showing up in several important ways. Through our value engineering initiatives, advanced manufacturing investments, composite solutions, electrical capabilities, aftermarket platform, and the experience, we are helping customers address options and priorities around affordability, production efficiency, labor optimization, product differentiation, and speed to market. Across our platforms, we are working closely with customers to partner on low-cost alternatives, under a good, better, best product offering, support their product development needs, respond quickly to changing production schedules, and help them deliver great products that meet consumers where they're at today while continuing to grow our content and build a more durable platform over time. At the same time, we are prioritizing industry-leading investments in technology, data analytics, and AI-enabled tools that we believe will help further shape our industries for the next era of design and operational excellence. Across Patrick, we are applying these capabilities in practical, business-focused ways to improve our own operational performance and respond to customer needs with greater speed and precision. During the quarter, we piloted our first-ever internal AI process competition across corporate administrative teams focused on identifying and rewarding practical applications for automation, analytics, and AI. We are also utilizing AI in our aftermarket platform to guide the introduction of new products to market and improve content generation, better capturing consumer attention and engagement across our digital channels. Additionally, we are excited to unveil our new advanced manufacturing and printing technology solution for the RV industry. Jeff will touch on this industry-leading advancement shortly. We also remain opportunistic in managing our balance sheet and the allocation of our capital. Our priorities continue to be centered on reinvesting in our business, supporting strategic and organic growth opportunities, maintaining financial flexibility, and returning capital to shareholders. During the quarter, we intentionally increased our leverage profile in the short term and repurchased approximately $91 million of our shares, reflecting our confidence in both Patrick's long-term value creation opportunity and the strength of our cash flows. Finally, I'd like to briefly comment on a recently executed all-stock merger agreement with Lippert. We are incredibly excited about the opportunity ahead and look forward to working closely with key stakeholders as we move through the process. We believe the combination of the amazing Patrick and Lippert teams will create tremendous positive energy to support our customers, enhance our ability to innovate and deliver cost-effective solutions, and better serve the industries we care deeply about in a mutually beneficial way. We believe that together, with expanded capabilities and a deeper product offering, we will be able to further enhance the value we can deliver to OEM customers, outdoor enthusiasts, team members, and shareholders over the long term. As we have outlined previously, we expect the combination to generate approximately $150 million of net annual run rate cost synergies, allowing us to share savings with our customers in partnership to promote the long-term benefit of our markets with a focus on affordability. The transaction is targeted to close in the first half of 2027, subject to customary shareholder and regulatory approvals. Until closing, we remain two independent companies, and our team's focus is where it has always been, running Patrick's business in the pursuit of delivering the highest quality products and service to our customers. I'll now turn the call over to Jeff, who will highlight the quarter and provide more detail on our end markets. Thanks, Andy, and good morning, everyone.