Axalta Coating Systems Ltd.

Please stand by, your program is about to begin. Ladies and gentlemen, thank you for standing by. Welcome to Accelta Coding Systems Q2 2025 earnings call. All participants will be in a listen-only mode. A question and answer session will follow the presentation by management. Today's call is being recorded and our replay will be available through August 6th. Those listening after today's call should please note that the information provided in the recording will not be updated and therefore may no longer be current. I will now turn the call over to Colleen Lubick, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us to discuss Exalta's second quarter 2025 financial results. I'm Colleen Lubick, Vice President of Investor Relations. With me today are Chris Villaroyan, our CEO and President, and Coral Anderson, our Chief Financial Officer. We posted our second quarter 2025 financial results and earnings release this morning. You can find today's presentation and supporting materials on the investor relations section of our website at Exalta.com, which we will be referring to on this call. Our remarks today in this slide presentation may include forward-looking statements reflecting our current views of future events and their potential impact on Excel's performance. These statements involve risks and uncertainties, and actual results may differ materially. We are under no obligation to update these statements. Our remarks and this slide presentation also contain various non-GAAP financial measures. We've included reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. Refer to our filings with the SEC for more information. I would like to now turn the call over to Chris.

Thanks, Colleen, and good morning, everyone. Let's move to slide three. We're proud to announce that we delivered a record quarter for adjusted EBITDA and adjusted diluted earnings per share in a challenging global market. I would like to personally thank our almost 13,000 employees for their dedication and outstanding performance this quarter. By all measures, we have done a tremendous job navigating the current landscape and managing the business. Net sales came in just over $1.3 billion in line with our guidance. Adjusted EBITDA was $292 million with margins exceeding 22%. This marks the fifth consecutive quarter that adjusted EBITDA margins have been at or above the 21% target outlined in our A-Plan. This was a noteworthy achievement given the significant volume pressures underscoring Exalta's disciplined execution and sustained cost management. We remain focused on creating shareholder value and plan to accelerate our capital deployment going forward. This quarter we executed $65 million in share repurchases and expect to continue this pace throughout the remainder of the year. Our mobility segment continues to perform exceptionally well. We deliver 2% organic growth fueled by sustained strength in China and Latin America, in addition to new business wins and favorable price mix. Adjusted EBITDA margins were nearly 20%, a strong validation of the team's strategic and operational prowess and our ability to sustain profitable growth. Cash flow from operations increased 25% year-over-year, which helped drive pre-cash flow to 101 million, a great result. With that, let's turn to slide four. We continue to navigate what we believe to be temporary challenges affecting refinish in North America. Claims reported through Q1 remain meaningfully lower in the United States and slightly down in Europe. Although collision statistics are pending for 2024, early insights from various states in the US and independent agencies indicate that collision frequency declined by only low single digits. This collision statistic is in line with our expectations. We believe that factors such as elevated repair costs, rising insurance premiums, and broader inflationary pressures have discouraged consumers from seeking repairs resulting in fewer claims despite steady or just slightly declining collision rates. In the second quarter, refinish volumes were impacted by expected headwinds, including consumer pullback on repairs and elevated North American distributor inventories. Despite these pressures, we continue to gain share, with 1,600 net new body shops year to date building on the more than 2,800 net wins in 2024. Net sales in the second quarter declined 6% year over year, but we saw nearly 2% growth from adjacencies and retail, supported by strong momentum in DIY channels and accessories. As we examine external data, we see signs of industry stabilization. Inflationary pressures are beginning to moderate, particularly in areas like repair expenses and insurance premiums. Insurance premium inflation in the U.S. appears to be abating and total repair costs only increased 1% in Q1 year-over-year. One additional recent data point that is encouraging came from LexisNexis and indicates that nearly half of consumers are actively seeking lower insurance options by switching carriers, many successfully obtaining significant reductions in their premiums. We have been through cycles before and have a strong track record of outperforming industry trends over the long term. We remain confident in our A-Plan strategy to strengthen our leadership in refinish and expand into adjacencies. We believe that consumer confidence will increase, leading to more favorable repair environments. Our expansion into economy and customer-centric innovation such as the fast, pure, low-energy system that reduces energy usage and boots time by 50%, combined with our customer relationships and advanced digital tools, position us to win in today's environment and drive growth in 2026 and beyond. Let's turn to slide five. We remain focused on our aid plan with excellent execution in the first six months of the year. Our operational excellence is now a strategic advantage, enabling us to manage with discipline, speed, and agility. In the second quarter, we reinforced our commitment to achieving zero incidents by improving our safety record by an amazing 55% year-over-year. Our commitment to achieving zero incidents has never been greater, and I'm very proud of the progress we're making towards this goal. Our discipline focus on cost management drove a 6% year-over-year reduction in operating expenses. Since announced, our transformation initiative has driven approximately $40 million in cost savings. We've also taken decisive action to optimize our industrial footprint by closing three manufacturing plants in the last year. These actions have streamlined our operations and positioned us to convert on the upside once industry volumes rebound. I believe our results speak for themselves. Our dedication to customer-focused innovation was again acknowledged this quarter. Exalta's NextJet was recognized as a 2025 automotive news-paced pilot innovation to watch. and we were honored with Daimler Truck North America's Masters of Quality Supplier Award. These accolades validate our innovative approach to delivering differentiated customer outcomes. Finally, we're consistently strengthening our financial position by maintaining total net leverage in line with our A-Plan targets, while also capitalizing on opportunities to repurchase what we believe is undervalued Exalta stock. These actions position us for sustained long-term value creation. I will now turn the call over to Carl for a financial update.