Builders FirstSource, Inc.

Good day and welcome to the Builders FirstSource second quarter 2026 earnings conference call. Today's call is scheduled to last about one hour, including remarks by management and the question and answer session. In order to ask a question, please press the star key followed by the number one on your phone at any time during the call. I'd now like to turn the call over to Heather Kos, Senior Vice President, Investor Relations for Builders FirstSource. Please go ahead.

Good morning and welcome to our second quarter 2026 earnings call. With me on the call are Peter Jackson, our CEO, and Pete Beckmann, our CFO. The earnings press release and presentation are available on our website at investors.bldr.com. We will refer to the presentation during our call. The results discussed today include GAAP and non-GAAP results adjusted for certain items. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures. You can find the reconciliation of these non-GAAP measures to the corresponding GAAP measures where applicable, and a discussion of why we believe they can be useful to investors in our earnings press release, SEC filings, and presentations. Our remarks in the press release presentation and on this call contain forward-looking and cautionary statements and projections of future results. Please review the forward-looking statements section in today's press release and in our SEC filings for various factors that could cause our actual results to differ from forward-looking statements and projections. With that, I'll turn the call over to Peter.

Thank you, Heather, and good morning, everyone. Our second quarter results reflect the strength of our differentiating platform and the adaptability of our operating model. We remain focused on the factors within our control, including managing the business with discipline and leveraging both our technology capabilities and our value-added solutions. This approach continues to strengthen our position as the partner of choice to homebuilders. While housing market conditions remain weak, we are continuing to invest in innovation and capabilities that enhance the customer experience, improve efficiency across the value chain, and reinforce our competitive advantages. Thank you for joining us. Before turning to our strategic priorities, let me spend a moment on the market backdrop. Ongoing geopolitical uncertainty, persistent inflation, and elevated interest rates continue to weigh on affordability and consumer sentiment, creating a challenging demand environment for new residential construction. In response, we have lowered our full-year guidance to reflect a more cautious view of housing starts. Pete will walk through the updated assumptions in his remarks. Despite these macro headwinds, we remain committed to executing our strategy with a sustained focus on share growth, continuous improvement, and prudent capital allocation. We cannot control the market, but consistent execution against these priorities will strengthen how we operate today and position us to accelerate growth as conditions improve. In single-family, builders are actively managing elevated inventory levels and costs in certain markets. At the same time, they are moving towards a greater mix of build-to-order homes versus specs. This environment plays to our strengths, and we expect to capture share by delivering outstanding customer service, bundling our broad product portfolio to drive affordability, and applying technology in ways that make our sales teams more effective. Performance varied by region, with continued softness across Texas and Colorado, partially offset by relative strength in the Northeast. Multifamily, higher interest rates have pushed out project start dates and bidding remains competitive. As the industry works through existing projects and occupancy rates remain below desired levels in many markets, developers continue to take a cautious approach to new starts. Based on the current pipeline, we expect multifamily results to remain pressured through the balance of the year. Slide 5 highlights how we are navigating the current environment while preserving the flexibility Our operating model enables us to right-size capacity, control spending, and align working capital with demand, all without compromising our commitment to customers. We have consolidated 36 facilities so far in 2026 and 91 in total over the last three years, while maintaining an on-time and in-full delivery rate of up 90%. These actions build on the broader cost discipline that Pete will detail. Supported by our industry-leading scale and leadership team, we are confident in our ability to manage through today's environment while strengthening the operating leverage we expect to realize as the market recovers. Slide 6 lays out the key initiatives underway across our four strategic pillars. This quarter, we believe we maintained our share in a challenging market, generating $28 million in productivity savings through targeted supply chain and logistics initiatives, We have made steady progress on our SAP implementation. Together, these efforts reinforce our ability to compound value over time. Turning to slide seven, in the second quarter, we deployed approximately $50 million towards return-enhancing opportunities aligned with our capital allocation priorities. Strong free cash flow generation through the cycle gives us the flexibility to invest in the business, pursue accretive acquisitions, and return cash at the shareable. Turning to slide 8, M&A remains an important lever in our capital allocation framework. We are focused on pursuing acquisitions that enhance our value-added product offerings and strengthen our position in desirable geographies. In June, we acquired Precision Design and Trim, expanding our installation capabilities in the Boise area. Since the DMC merger in 2021, we have completed 42 acquisitions, representing nearly $2.3 billion in annual sales. The equivalent of a top six LBM player. With the industry still fragmented, we see significant runway ahead and expect M&A to remain a key contributor to our long-term growth. Turning to slide nine, as we continue to advance our digital strategy, we are sharpening our focus on the areas where we believe we can create the most meaningful near-term value. Based on what we have learned from our AI and digital investments to date, We are increasingly prioritizing initiatives that improve the effectiveness and efficiency of our sales teams, enhance customer connectivity, and integrate seamlessly with the growing home builder technology ecosystem. We continue to direct our resources towards practical, scalable capabilities that support growth, improve execution, and better serve our customers, while protecting and building on the digital capabilities and IP we have developed. We remain confident that technology will be an important long-term differentiator for BFS. We are ensuring our investments are aligned with opportunities that will drive the greatest value for our business. Highlighting one of our team members is something I look forward to every quarter. Today, I want to recognize Ralph Cummins, an inside sales representative at our Bainbridge Island, Washington location, who is celebrating 40 years with BFS and our legacy companies. In 1986, Moving Goers were introduced to the original Top Gun, and that same year, Ralph began his journey with our company. Both have stood the test of time, although Ralph has had a much bigger impact on the people around him. Ralph has built his career in retail sales and takes pride in keeping the store's inventory aligned with what customers need. He maintains a close pulse on the local market, consistently sharing insights that help the Bainbridge Island team better serve the builders and contractors that count on him. Ralph is also known for one especially sweet tradition. Every week, he bakes cookies for the team and our customers. Thank you, Ralph, call sign sweetness. It's team members like you who make me proud to lead the FS. I'll now turn the call over to Pete to discuss our financial results in greater detail.