TriMas Corporation

Greetings, and welcome to the Trimus First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sherry Lauterbach, Vice President of Investor Relations. Thank you. You may begin.

Thank you, and welcome to Trimask Corporation's first quarter 2026 earnings call. Joining me today are Thomas Snyder, President and CEO, and Paul Fort, our Chief Financial Officer. We'll begin with prepared remarks discussing our first quarter results, followed by our outlook for 2026, after which we'll open the call for your questions. To help you follow along with today's discussion, both the press release and our presentation are available on our website at trimask.com under the Investor section. A replay of this call will also be available later today by dialing 877-660-6853 and using Meeting ID 13759871. Before we begin, I'd like to remind everyone that today's comments may include forward-looking statements, which are inherently subject to various risks and uncertainties. Please refer to our most recent Forms 10-K and 10-Q for discussion of the factors that could cause our results to differ from those anticipated in any forward-looking statements. We undertake no obligation to publicly update or revise such statements except as required by law. We also encourage you to visit our website for more information. In addition, please refer to the appendix of our press release or presentation for reconciliations of GAAP to non-GAAP financial measures. Throughout today's call, our discussion of financial results will be on an adjusted basis excluding the impact of special items. And unless otherwise noted, the financial results discussed will reflect continuing operations. At this point, I'll turn the call over to Tom. Tom?

Thank you, Sherry. Good morning, everyone, and thank you for joining us today. Before diving into the results, I want to briefly provide some perspective on the quarter. The first quarter of 2026 reflected steady execution and progress as we advanced several important priorities for the company. During the quarter, our team delivered on several key commitments, most notably the successful divestiture of TriMass Aerospace, which closed on March 16th. The transaction was completed on schedule, generated more than $1.2 billion of net after-tax proceeds, and meaningfully strengthened our balance sheet. We're pleased with the execution and the increased flexibility this provides as we move forward. We acted promptly and deliberately with the proceeds, repaying borrowings associated with fourth quarter share repurchase activity, completing additional share repurchases, and investing the remaining balance in interest-bearing accounts as we assess the best long-term use of that capital. During the first quarter, we repurchased nearly 1.5 million shares, bringing total repurchases since announcing the aerospace divestiture to approximately 4.5 million shares. As of the quarter end, we had approximately 36.3 million shares outstanding. These actions reflect our disciplined approach to capital allocation, including returning capital to shareholders while maintaining the flexibility to invest for long-term value creation. Our priorities remain unchanged. Investing in organic growth, strengthening our core capabilities, and pursuing targeted high-quality acquisitions that enhance, elevate, or expand our platforms within packaging and life sciences. We believe these are attractive, growing, and resilient end markets where we see compelling long-term opportunities and where our capabilities position us well to compete and win. While much of the focus this year has been on the aerospace divestiture and our longer-term strategic positioning, we also continue to make meaningful progress on operational improvements across the business. We intensified our focus on standardization, operational excellence, and continuous improvement. And as discussed on our February call, we took actions that position us to deliver approximately $10 million of cost savings in 2026 and $15 million annually. Based on that momentum, in March, we announced plans to consolidate our Atkins, Arkansas packaging facility into other locations by mid-year 26. This was a difficult but necessary decision that aligns with our long-term strategy to optimize our manufacturing footprint, improve efficiency, and remain competitive. We expect this action to generate approximately $500,000 of additional savings in 2026 and roughly $1 million on an annualized basis. Alongside this progress on execution and strategy, we're operating in a dynamic external environment. Our teams are closely monitoring geopolitical developments, including conditions in the Middle East and proactively managing potential impacts across our operations and supply chains. While we have not experienced any significant direct impacts to date, we are working collaboratively with our vendors and customers to manage cost pressures and ensure continuity of supply. Despite these external considerations, our focus remains firmly on what we can control. As we move through the remainder of 2026, we believe we are well positioned to accelerate performance, invest in organic growth and targeted acquisitions, and continue building a stronger, more customer-focused company. Before moving on, I want to acknowledge the high level of engagement and commitment demonstrated by our teams across the company. Successfully closing a major divestiture, managing the transition, returning capital to shareholders, and advancing operational improvements while continuing to serve customers at a high level requires focus, coordination, and discipline. This performance reflects the strength of our leadership team and the collaboration and accountability embedded across TriMAS. Turning now to our first quarter results on slide four, The quarter generally reflects the expected performance across the organization and meaningful year-over-year improvement in both growth and profitability. As a reminder, the results of operations for TriMass Aerospace, which were previously reported within the aerospace segment, along with one-time transaction-related costs, have been classified as discontinued operations for all periods presented. For the quarter, net sales increased more than 10% year-over-year to $168 million. Growth was driven primarily by 7.3% organic gains complemented by a 4% currency tailwind and partially offset by a modest impact from the aero engine divestiture. Importantly, results reflect steady demand across many of our end markets with Q1 net sales growth exceeding our expected range. From a profitability standpoint, we delivered solid margin expansion. Operating profit increased with margins improving by 120 basis points year over year and exceeding our original Q1 assumptions. This outperformance reflects operating leverage on higher volumes combined with the early benefits of our cost streamlining initiatives, most notably meaningful reductions in corporate cash costs. Income and earnings per share increased meaningfully year over year. Income from continuing operations increased 51%. to $9 million compared to $5.9 million in the prior year period. Adjusted earnings per share rose 60% to 24 cents compared to 15 cents in the prior year. This improvement was supported by stronger operating performance, approximately 4 cents of interest income from invested proceeds, and disciplined cost management. These benefits more than offset higher interest expense and a higher effective tax rate year over year. Overall, we are encouraged by how the year has begun with a stronger balance sheet and a more focused portfolio and continued progress across our operations. We believe TriMAS is well positioned to accelerate performance in 2026 and beyond. The momentum we're seeing reinforces our confidence as we move through the remainder of the year and continue advancing our strategic priorities following the aerospace divester. And with that, I'll now turn the call over to Paul to walk through the financial results in more detail. Paul?