Axalta Coating Systems Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Exalta Coding Systems Q1 2026 earnings call. All participants will be in a listen-only mode. A question and answer session will follow the presentation by management. In the interest of time, we ask you please ask one question. Today's call is being recorded and a replay will be available through May 7th, 2026. 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 Colin Lubick, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us to discuss Exalta's first quarter 2026 financial results. I'm Colleen Lubick, Vice President of Investor Relations. Joining me today are Chris Villarion, our Chief Executive Officer, and Carl Anderson, our Chief Financial Officer. Before we begin, please turn to slide two for our forward-looking statements and non-GAAP disclosures. We posted our first quarter 2026 financial results this morning. You can find today's presentation and supporting materials on the investor relations section of our website at exalta.com. Our remarks today and the slide presentation may include forward-looking statements reflecting our current views of future events and their potential impact on Exalta's performance and with respect to the proposed merger of equals between Exalta and AxoNobel. These statements involve risks and uncertainties, and actual results and outcomes may materially differ. We are under no obligation to update these statements. Our remarks and this slide presentation also contain various non-GAAP financial measures. We included reconciliations of these non-GAAP financial measures for the most directly comparable GAAP financial measures. Please refer to our filings with the SEC for more information. With that, I would like to now turn the call over to Chris.

Thank you, Colleen, and good morning, everyone. Turning to our first quarter highlights, we delivered strong results and exceeded expectations across our financial metrics. In the quarter, we generated net sales of $1.25 billion, adjusted EBITDA of $259 million, and adjusted diluted EPS of 56 cents, which came in 12% above expectations. These results reflect disciplined execution and a focus on the levers within our control. We also set meaningful cash generation records this quarter, with 68 million of cash from operations and 21 million of free cash flow, an improvement of 35 million year-over-year. This period marked the 12th consecutive quarter of year-over-year profitability improvement in our industrial business, while mobility achieved a first quarter net sales record and adjusted EBITDA margin of 17.5%. reflecting solid execution and cost discipline, and we saw stabilization in refinish at nearly $500 million in sales, consistent with the last five quarters. Innovation has always been and remains an important differentiator for Exalta. During the quarter, we received six Business Intelligence Group Innovation Awards and three prestigious Edison Awards. ECHO NextJet, a collaboration with Dürer and Zahr, enables OE manufacturers to provide next-generation personalized exterior finishes at production scale, shifting from a fixed palette to unlimited customization without sacrificing quality, durability, or efficiency. And Alesta E-Pro FG Black, a powder coating engineered for thermal stability and secondary fire protection in electric vehicle battery systems, Echo NextJet and Elasta E-Pro FG Black were both acknowledged with Gold Edison Awards. TintMaster AI, which was acknowledged with a Bronze Edison Award, is a breakthrough in tint manufacturing using advanced AI to address the challenge of color variability in paint manufacturing. Edison Awards honor technologies that are redefining industries, solving complex customer challenges, and shaping the future. I want to recognize the smart and talented people at Exalta who are developing and bringing to market advanced solutions with real-world impact. Let's turn to slide four. Against a backdrop of macro uncertainty and elevated volatility, we remain focused on managing through what we can control. While recent developments have increased uncertainty across cost and supply availability, our actions over the past several years have positioned us well to mitigate raw material inflation. We're closely monitoring developments across energy, logistics, and the broader supply and demand landscape as it relates to the evolving situation in the Middle East. From a purchasing perspective, we delivered 12 consecutive quarters of year-over-year improvement in variable cost due to strong productivity projects, as well as focused implementation of procurement best practices. We now have approximately 60% of our direct spend under contract rather than spot buys. Many of our strategic supplier agreements are stronger and incorporate indexation, which is helping reduce volatility and improve visibility. As it relates to pricing, We plan to move quickly to offset the impact of inflation. We're driving solid discipline across the portfolio. In refinish, we expect to implement mid-single-digit pricing in 2026, reflecting the value we deliver. In mobility, more than 50% of our revenue is now tied to raw material indices, which provides a natural hedge against cost volatility. Mobility has delivered six consecutive quarters of positive year-over-year price mix, reinforcing our ability to offset inflation. Across the rest of the portfolio, we are prudent and proactive with the pricing actions and surcharges in place where appropriate to help protect margins. From a transportation and cost discipline standpoint, we continue to tightly manage our operating expenses. In the first quarter, SG&A declined 7% year-over-year on a constant currency basis, and we exceeded our operational productivity targets. Even amid top-line pressure, our adjusted EBITDA margins have exceeded 20% for nine consecutive quarters, underscoring the durability of our operating model. Supporting all of this is our resilient supply chain and cost structure. Approximately 90% of our direct buy is locally sourced where variable costs represent about 60% of COGS. Inventory levels remain at roughly 115 days on hand, which helps limit the impact of inflation, particularly as we enter the second quarter. Let's turn to slide five. We see solid execution across all our businesses. In refinish, Net body shop wins increased 10% year-over-year and generated net sales growth in the first quarter in three out of our four regions. We're also expanding with leading MSOs, which remain a key focus for the business. In industrial, our most diversified portfolio, the weak local macro has been the story for the last few years. However, we are starting to see signs of recovery. We delivered five consecutive quarters of net sales growth in Asia driven by our energy solutions business, drove volume growth in Europe during the quarter with share gains in our ECO business, and we're seeing positive price mix for seven straight quarters. In mobility, we delivered record net sales in the first quarter of 452 million and growth in three out of our four regions. Commercial transportation solutions, which was a bright spot in 2025, also delivered record first quarter sales driven by continued success with new business wins. Overall, new business wins and excellent operational performance across the portfolio are helping us offset the headwinds in North America, where the macro environment has been tempered by economic anxiety, elevated consumer costs, and higher for longer interest rates. With that, I'll turn the call over to Carl to discuss our financial results.