TriMas Corporation

Greetings and welcome to the TriMas Corporation second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone wants to require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Sherry Lauderback, Vice President of Investor Relations and Communications. Sherry, please go ahead.

Thank you, and welcome to TriMas Corporation's second quarter 2026 earnings call. Joining me today are Thomas Snyder, President and CEO, and Paul Swart, our Chief Financial Officer. We'll begin with our prepared remarks discussing our second quarter results, followed by our outlook for the remainder of 2026, after which we will open the call for questions from our analysts. To help you follow along with today's discussion, Both the press release and our presentation are available on our website at trimas.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 13761489. Before we begin, I'd like to remind everyone that today's comments may include forward-looking statements which are inherently subject to various Please refer to our most recent forms 10-K and 10-Q for a 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 today will reflect continuing operations. At this point, I'll turn the call over to Tom. Tom?

Thank you, Sherry, and good morning, everyone. We appreciate you joining us today. Before discussing our second quarter results, I would like to highlight the continued progress we're making against the strategic priorities we outlined at the start of the year. Following the successful divestiture of TriMas Aerospace, our focus has been on building a more streamlined, customer-focused company while improving profitability, operational performance, and shareholder returns. While there is still more work ahead, we are encouraged by the progress we have made and believe TriMas is well-positioned for continued improvement. At TriMass, our strategy is grounded in three core pillars, customer success, our people, and operational excellence. These pillars guide how we allocate resources, set priorities, and execute across the organization, and they are the foundation for long-term value creation. Beginning with operational excellence, we remain focused on driving greater efficiency, consistency, and performance across the company. Our previously announced cost reduction actions totaling $10.5 million in 2026 and $16 million annually remain on track and are contributing to improved profitability. At the same time, we continue to drive safety, quality, and on-time delivery with a focus on productivity improvements across our operations while maintaining a strong commitment to serving our customers. Our teams are also continuing to work closely with customers and suppliers to navigate tariffs, supply chain pressures, and broader macroeconomic and geopolitical challenges. Executing against these priorities requires the right talent and leadership to accelerate our transformation. During the second quarter, we strengthened the TriMas Packaging leadership team with two key additions. We welcomed Gil Lero as Senior Vice President of Sales and Marketing. With more than 20 years of global packaging industry experience, Gil is leading our commercial strategy across sales and marketing and elevating the customer experience with a focus on strengthening relationships, driving profitable growth, and expanding market opportunities through customer-focused innovation, innovative solutions. His customer-focused approach and global perspective will enhance our commercial execution and support focused innovation across the packaging group. We also welcomed Angel Fernandez-Carbonell as Vice President of Global Operations. With more than 25 years of operations and supply chain leadership experience across the packaging and manufacturing industries, Angel is leading our global operations with a commitment to safety and a focus on manufacturing excellence operational performance and delivery on our customer service commitments. His experience will help strengthen our operational capabilities and accelerate performance improvements across the packaging platform. Together these additions strengthen our leadership team and reinforce our focus on customer success and operational excellence. Just as importantly, both leaders bring a collaborative approach to talent development and team building that will further support our commitment to our people. In addition to strengthening our team, we continue to improve alignment across the organization through implementation of a strategic planning framework, initially across TriMas packaging and soon to be deployed within Norris Cylinder. This process helps translate our long-term strategy into actionable operating plans by aligning teams around a common set of priorities with clear ownership, measurable objectives, and specific timelines. This framework is again built around our three strategic pillars, helping to align resources and priorities around the objectives that will have the greatest impact on our performance. This is now an important component of our operating system, helping translate strategy into actions that drive measurable results. Beyond improving execution and accountability, we are also focused on strengthening the alignment across the organization and enhancing the customer experience. During the quarter, we implemented our One TriMAS initiative, including the integration of our legacy packaging brands under a unified TriMAS packaging identity. This effort is strengthening commercial alignment, simplifying the customer experience, and enabling us to bring the full breadth of our packaging solutions to customers through a single global organization. As we continue executing these strategic and operational initiatives, our approach to capital allocation remains consistent and disciplined. We continue to invest in organic growth initiatives and pursue disciplined, high-quality acquisitions that can elevate and expand our packaging and life-size platforms. At the same time, we remain committed to returning capital to shareholders when appropriate while preserving the flexibility to invest in future growth opportunities. Since announcing the aerospace transaction in November, we have repurchased more than 5 million shares, reducing our share count to approximately 35.9 million shares outstanding at the quarter end. We believe these repurchases represent a meaningful return of capital to shareholders while enhancing the long-term earnings power of our business. While we do not have a significant update regarding the planned use of the remaining aerospace proceeds, Our strategic investment committee and management team remain actively engaged in evaluating opportunities to deploy that capital in a manner that maximizes long-term shareholder value. We are carefully assessing opportunities through a disciplined strategic and financial lens, and we remain committed to being patient and selective as we evaluate our opportunity pipeline. In the meantime, our strong balance sheet provides significant flexibility and the proceeds continue to generate meaningful interest income while we evaluate opportunities. This preserves our financial strength and positions us to act when the right opportunities arise. Let's now turn to our second quarter and year-end results on slide four. Overall, we delivered another quarter of solid execution highlighted by continued profitability improvement and strong earnings growth. Second quarter, net sales increased 1.6% year-over-year to $174.6 million, benefiting from favorable foreign currency translation. Organic sales were essentially flat compared to the prior year period as growth in certain end markets was offset by softer sales in others amid continued macroeconomic uncertainty and consumer spending pressures. Despite modest sales growth, we delivered meaningful improvement in profitability and earnings through focused execution of our cost reduction initiatives. Second quarter operating profit increased 29% to $14.9 million, while operating margin expanded 180 basis points to 8.5%, reflecting progress in simplifying our cost structure and improving operating efficiency across the organization. Adjusted earnings per share increased to 52 cents compared to 20 cents in the prior year period, driven by stronger operating performance, higher interest income from invested proceeds, and the benefits of share repurchase activity, which more than offset a higher tax rate. The first six months of the year tell a similar story, reflecting stronger organic growth and the increasing benefit of our operational and cost reduction initiatives. Net sales increased 5.8% to $342.9 million, including organic growth of 3.4%, while operating profit increased more than 30% and adjusted earnings per share more than doubled to 75 cents. Overall, we are encouraged by our first half performance and the progress we are making across the business with a stronger balance sheet, a more streamlined portfolio, and increasing benefits from our improvement initiatives We believe TriMAS is well positioned to continue building momentum through the balance of 2026 and beyond. And with that, I'll now turn the call over to Paul to review the financial results in more detail.