Bluelinx Holdings Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Bluelinks Holdings First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode and today's call is being recorded. We will begin with opening remarks and introductions. At this time, I would like to turn the conference over to your host, Investor Relations Officer, Tom Marabito. Please go ahead.

Thank you, Operator, and welcome to the Blue Link's first quarter 2026 earnings call. Joining me on today's call is Sham Reddy, our Chief Executive Officer, and Kelly Wall, our Chief Financial Officer and Treasurer. At the end of today's prepared remarks, we will take questions. Our first quarter news release and Form 10-Q were issued yesterday after the close of the market, along with our webcast presentation, and these items are available in the investor section of our websites. We encourage you to follow along with the detailed information on the slides during our webcast. Today's discussion contains forward-looking statements. Actual results may differ significantly from those forward-looking statements due to various risks and uncertainties, including the risks described in our most recent SEC filings. Today's presentation includes certain non-GAAP and adjusted financial measures that we believe provide helpful context for investors evaluating our business. Reconciliations to the closest gap financial measure can be found in the appendix of our presentation. Now, I'll turn it over to Shannon.

Thanks, Tom, and good morning, everyone. We are off to a good start in 2026, as our first quarter results reflect our ability to compete effectively and deliver positive performance despite market headwinds, unforeseen cost inflation, and competitive pricing pressure. Our disciplined approach to executing our channel and product strategies enabled us to manage margins and to continue growing volumes across multiple product categories and key customer channels. During the first quarter, revenues increased 3% year over year, driven primarily by DeStero Lumber Company specialty sales and higher volumes in our key specialty product categories. which helped offset ongoing pricing pressure in specialty and structural products and margin pressure in specialty products. Specialty and structural gross margins were 18.1% and 10.9% respectively, reflecting the strength of our customer value proposition and effective inventory management. Our specialty product strategy continues to deliver results with engineered wood, siding, Millwork, industrial, outdoor living products, and other specialty products representing 70% in net sales and approximately 80% of gross profit in the quarter. While overall market conditions remain soft, our deliberate alignment of key supplier branded product expansion with strategic channel growth initiatives is enabling us to drive better commercial outcomes and allocate working capital more effectively. Last week's announcement of Westlake-Royal's true exterior siding and trim products in 12 Bluelinks markets, including six of the country's top 50 MSAs, reinforces our commitment to this alignment. As you can see, our commercial strategic focus and our customer value proposition are accelerating our product and geographic expansion efforts with key vendors. We continue to see positive momentum across our commercial growth vectors, the multifamily channel, builder pull-through initiatives, and national accounts business, all of which are key elements of our channel strategy. These efforts are helping us drive incremental volumes, convert projects and customers to key brands we carry, and strengthen our position as a preferred growth partner for suppliers. While multifamily sales typically involve longer inventory cycles and lower gross margins due to direct sales and competitive pricing, this channel remains an important source of demand and a critical component of our long-term growth strategy to support total housing starts at scale. Operationally, our results also reflect disciplined inventory management. Our ability to quickly adjust inventory levels to market conditions demonstrates the strength of our commercial execution and operating discipline. As market conditions improve, we expect these institutional capabilities to support stronger cash flow generation. From a strategic accelerant perspective, we continue to make meaningful progress in our AI and digital transformation initiatives, with particular focus on enhancing our master data platform and optimizing our Oracle Transportation Management System. We also remain committed to supporting the advanced digital platforms of our largest customers and leveraging AI-driven solutions to improve productivity and efficiency across the organization as we continue to explore and develop AI and digital tools for commercial sales, operational excellence, and e-commerce. Finally, our financial position remains strong. with $659 million in available liquidity at the end of the quarter, providing us with the flexibility to reinvest in the business, pursue growth opportunities, and continue navigating a challenging market environment. Overall, we believe our disciplined execution, resilient operating model, and focused strategy position us well as we move through 2026. We also returned capital to shareholders by repurchasing $3 million of shares in Q1, and the total current availability under our share repurchase authorizations is nearly $56 million as of quarter end. This demonstrates our commitment to returning capital to our shareholders and our continued confidence in the company's long-term growth strategy. Now, for a few more highlights on our first quarter results. We generated net sales of $731 million in adjusted EBITDA of $23.5 million for a 3.2% adjusted EBITDA margin, a significant improvement on a year-over-year basis. DeStero contributed nearly $21 million of the net sales and over $2 million in adjusted EBITDA. Adjusted net income was $1.7 million, or 21 cents per share. Specialty product net sales increased nearly 7% year-over-year due to solid volumes across the board, with DeStero's product portfolio and our engineered wood products and siding leading the way. Unfortunately, price deflation and margin compression in several categories offset the benefit of our net sales and our volume increases in the business. Although structural product revenues decreased nearly 5% year-over-year, due largely to price declines in lumber and panels, we were able to offset the impact by driving higher lumber volumes and gross margins. As a result, we delivered higher structural gross profit on a year-over-year basis. Our strategic sales and product expansion efforts led to higher volumes and increased net sales at solid margins, 18% volume growth in multifamily, and over 3% volume growth with key national accounts. demonstrated another quarter of key channel growth tied to discipline execution of our strategy. Our builder pull through programs tied to partnerships with strategic customers led to key channel and specialty product growth. Our differentiated value proposition led to geographic and product expansion with key suppliers with meaningful year over year growth across multiple product lines that align with our channel growth strategy. For example, our EWPM siding volumes and sales were both up low single digits on a year-over-year basis, despite consistently declining housing starts. As I mentioned a minute ago, the addition of Westlake Royal's true exterior siding and trim products significantly adds to our specialty product assortment, while demonstrating another example of geographic and branded SKU expansion with a key supplier. We also delivered solid gross margin performance, despite difficult market conditions, cost inflation, and a competitive pricing environment, with specialty products at 18.1% and structural products at 10.9%. Our focus on the product and channel strategy fueled by our operational and business excellence initiatives, such as effective pricing, value-add services, strong customer service, branded product expansion gains, and disciplined inventory management, all help drive this performance. The macroeconomic backdrop for building products distribution continues to depress demand for projects tied to new bills and repair and remodel activity. Historically low levels of consumer confidence and persistently high inflation, economic uncertainty, and geopolitical volatility are also suppressing the cyclical housing tailwind from materializing, which I expect to continue through 2026. These soft market conditions have led to lower volumes in certain traditional customer channels and highly competitive market pricing. At the same time, however, the K-shaped economy continues to provide opportunities in certain parts of the country across all customer channels, another reason why our scale and geographic footprint helps smooth out our overall performance. In any event, We have overcome market challenges by increasing volumes and maintaining solid margins via intentional growth tied to our channel and our product strategies. We're also actively managing our cost structure, passing along cost increases, optimizing inventory, and prioritizing high margin categories to optimize performance in an otherwise challenging market that we don't expect to abate anytime soon. Overall, we are off to a good start in 2026, as demonstrated by our solid financial performance for the quarter. We will continue to execute our strategy through the current cycle, which will position us for better than market growth when the housing recovery occurs. To wrap up, I want to thank all of our associates for their commitment to our customers, our suppliers, each other, and the communities we all serve. Now I'll turn it over to Kelly, who will provide more details on our financial results and our capital structure.