Suncrete, Inc.

Greetings and welcome to Suncrete's second quarter 2026 earnings conference call. At this time, all participants are on 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. I would now like to turn the call over to your host, Mr. Rick Black with Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Suncrete conference call to review second quarter 2026 results. This call is also being webcast, and it can be accessed through the audio link on the events and presentations page of the investor relations section of suncrete.com. Information recorded on this call speaks only as of today, August 14, 2026. Please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript reading. I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are forward-looking statements made pursuant to the safe harbor provision for the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call by their nature, are uncertain and outside of the company's control. Actual results may differ materially. Please refer to our earnings press release for our disclosures on forward-looking statements. These factors, as well as other risks and uncertainties, are described in detail in the company's filings for the Securities and Exchange Commission. Management will also refer to non-GAAP measures including adjusted EBITDA and adjusted EBITDA margin, as well as supplemental adjusted EBITDA. are our executive chairmen.

along with other members of our management team. I'll begin today's call by providing an overview of our second quarter operations and discussing our active M&A pace. I'll then turn the call over for Tommy to provide second quarter financial highlights and review our 2026 outlook. Then Ned will provide additional strategic comments before turning the call over for questions. I'd like to start today by thanking our more than 1,100 employees across the Suncrete organization for their continued commitment, dedication, and customer-first focus. At its core, this is a people business, and our success begins with the strength of our culture and the talented teams serving our customers every day. We believe our people and culture are fundamental to our ability to consistently execute. to grow our business and create long-term value. The second quarter marked significant year-over-year revenue growth, including organic growth of approximately 9%, reflecting strong execution across our organization. Despite unusually wet weather across much of our footprint during the quarter, demand throughout our markets remained strong. We also maintained a highly active pace of M&A, adding five new companies to the Suncrete platform in the first 60 days after becoming a public company. Our teams are making strong progress integrating these businesses and are executing market-specific improvement plans focused on driving growth, capturing cost and operating efficiencies, and expanding profitability. Supported by favorable demand fundamentals across our footprint, including infrastructure investment, population and economic growth, and healthy commercial and residential construction activity, we remain confident in maintaining our 2026 guidance. Now, let's discuss our growth strategy. The second quarter was a transformative period for our business. In the quarter, we made significant progress executing our acquisition strategy completing five acquisitions that expanded our ready mix concrete and concrete products platform to now include six states across the Sun Valley. We established a new platform in Texas and Louisiana through the acquisition of Hope Concrete, followed by the acquisition of Nelson Brothers, which further strengthened our position in North Texas. We also expanded our geographic reach further into Arkansas, Louisiana, from Missouri and Mississippi through the acquisition of ABC Block Company, a leading supplier of concrete products headquartered in Little Rock, Arkansas. In addition, we folded in two bolt-on acquisitions, expanding our presence in Louisiana. These acquisitions demonstrated the scalability of our model and the skill and strength of our organization. building a leading ready mix network through the acquisition and integration of best-in-market local operators. These new markets represent highly attractive long-term growth opportunities, and we will continue expanding our presence in the region. Buying these acquisitions expanded our capabilities in local markets by adding 31 ready mix plants, 279 mixture trucks, and eight concrete production studios. Integrating five companies in a relatively short period of time is a significant undertaking, but it is also an important part of building and scaling the Suncrete platform. While we are still early in the integration process with several of these companies, we are progressing well and remain confident in our ability to achieve our performance targets. As we previously discussed, our integration strategy is designed to bring the margins of acquired businesses in line with Suncrete's historic margins within nine to 18 months following the acquisition. Of the five businesses currently being integrated, three are tracking toward the earlier end of that timeframe, while two are working through challenging markets that might take a bit longer. For example, our acquisition in Oklahoma City in October is already achieving margins consistent with Suncrete, up considerably from its margin profile at the time of the acquisition. And in North Texas, the broader market remains a more challenging operating environment, which is consistent with our expectations when we entered the market. We have a clear approval plan in place and remain confident in the long-term opportunity and our ability to improve performance over time. Across all of our acquired businesses, we are making steady progress implementing the SunCrete operating with initiatives focusing on purchasing, pricing discipline, fleet and logistics optimization, and overall operational execution. These efforts will drive continued margin improvement while positioning these businesses for sustainable long-term growth. At the same time, our acquisition pipeline continues to expand, providing additional opportunities to build scale in our existing markets and enter attracting new geographies. Turning now to the construction demand and activity we see throughout our markets. The commercial environment remains strong with new construction projects spanning a broad range of customers from mid-sized projects for shopping strips and retail establishments to larger facilities for manufacturing, warehouses, and distribution centers. In addition, AI data centers are certainly a fast-growing in-market across the region. We are currently participating in several data center projects and expect to see sustained activity in that sector. As a trusted, reliable, and scaled operating platform to our customers in the region, we are well positioned to compete and win in this space. It is estimated 70% or more of the new data center construction nationally is expected to occur in the Sunbelt states. Due to our existing relationships with national and regional contractors and our ability to execute large and complex force, we believe we are well positioned to gain share in the sector. Before turning the call over to Tommy, I want to state that we are proud of the platform we continue to build and we are excited about our growth opportunities. The combination of resilient demand, disciplined operational execution, and a customer-first culture has continually driven our growth since our inception, with approximately 20% annual growth and consistently strong margins across many different markets. To capitalize on this opportunity, our growth strategy is centered on three primary objectives, gaining strength in our existing markets, driving organic growth, and expanding into attracting new markets through discipline, and Creed Acquisitions. Central to this strategy is partnering with high quality local operators and providing them with the scale resources of purchasing power and operational support of Suncrete while preserving the local leadership and customer relations that made those businesses successful. We believe this combination of local entrepreneurship and the benefit of a scaled company provides a repeatable model for profitable growth. I'd now like to turn the call over to Tommy.