CSW Industrials, Inc.

Greetings and welcome to CSW Industrial's Fiscal Third Quarter 2026 Earnings Call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you'd like to enter the queue, please press star 1 at any time during this conference to enter the question queue. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Alexa Orga. Thank you. You may begin.

Thank you, Rob. Good morning, everyone, and welcome to the CSW Industrials Fiscal 2026 Third Quarter Earnings Call. Joining me today on the call is Joseph Arm, Chairman, Chief Executive Officer, and President of CSW Industrials. and James Perry, Executive Vice President and Chief Financial Officer. We issued our earnings release, updated investor relations presentation, and quarterly report on Form 10-Q prior to the market's opening today, all of which are available on the investors portion of our website at www.cswindustrials.com. This call is being webcast, and information on accessing the replay is included in the earnings release. During this call, we will make forward-looking statements. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Actual results could materially differ because of factors discussed today in our earnings release and the comments made during this call, as well as the risk factors identified in our annual report on Form 10-K and other filings with the SEC. We do not undertake any duty to update any forward-looking statements. I will now turn the call over to Joe.

Thank you, Alexa, and good morning, everyone. It is my pleasure to begin by reporting that our team delivered record fiscal third quarter results in both revenue and adjusted EBITDA, despite market headwinds and economic uncertainty that has been present for most of this fiscal year and which has been most pronounced in the residential HVAC R end market. Before commencing our regular quarterly commentary, I want to provide additional context for our strategic initiatives and financial results in the quarter. CSW is a larger and more diversified company today than it was just three months ago when we last spoke to you. Capitalizing on our strong balance sheet and guided by our disciplined approach to capital allocation, we continued to invest in growth opportunities in a meaningful way. In this most recent quarter, we completed three acquisitions, including the acquisition of Mars Parts within our contractor solutions segment, our largest acquisition to date at $650 million. We also acquired Hydrotex Holdings and ProAction Fluids within our specialized reliability solutions segment. which amounted to $26.5 million in aggregate investment. Considering the past 12 months to include the Aspen manufacturing acquisition, we successfully executed four highly revenue, EBITDA, and cash flow accretive synergistic transactions with a total investment of approximately $1 billion. In addition, we've invested $70 million in open market share repurchases, during the quarter, emphasizing our dedication to maximizing shareholder returns. Our financial to maintain a long-term perspective and to invest opportunistically with great discipline, even amid short-term volatility. Our capital structure now reflects these investments. In November, we strategically funded these acquisitions with cash on hand and low-cost debt capital. while always maintaining a net debt to EBITDA ratio well within our target range of one to three times. This ensures that we maintain a resilient balance sheet with ample liquidity for future investment, as we have committed to do in writing to you, our shareholders. These dynamics, along with the magnified seasonality effects from the addition of the Aspen Manufacturing and Mars Parts businesses, make year-over-year comparisons of certain performance metrics less relevant. The interest expense generated by our new capital structure certainly impacts reported and adjusted EPS comparisons, particularly when comparing to prior year periods when we were in a net cash position. Additionally, having deployed almost $1 billion in acquisition capital in the last year, Our amortization of intangible assets will increase significantly, which also challenges comparisons. These items are excluded when providing EBITDA and adjusted EBITDA results, which is why we continue to point you toward these metrics as the best multi-period comparisons. Providing an update on the Mars Parts acquisition, we will remind you that at the time of acquisition, we reported that we expected to achieve $10 million of run rate synergies and to reach a 30% EBITDA margin for this business within 12 months. We have already actioned a majority of the identified synergies, and we now expect to exceed this initial objective. I am pleased to share that the team has done an outstanding job in accelerating the integration of Mars Parts into our contractor solutions segment. The conversion of this business into the contractor solutions ERP system was completed earlier this month, and other commercial integration initiatives, including product harmonization, are well underway. In short, we confidently maintain our expectations to achieve our operational and financial goals for this acquisition. We have experienced encouraging order volume as we exited December and moved into January as compared to the overall fiscal third quarter. Based on very recent detailed customer discussions, we have positive feedback that our customers' inventory levels are getting more in balance as their destocking plans have been or are being completed. Since going public in 2015, we have maintained that we generally expect mid to high single-digit organic growth through the cycle in our contractor solution segment, though quarterly volatility is common. While not recession-proof, this segment has shown impressive resilience due to the essential nature of our innovative products. While it is too early in the season to forecast what we expect in calendar 2026 and for our fiscal 2027, we are cautiously optimistic and encouraged by order patterns starting to emerge. We expect to have a better view of this outlook on our fiscal fourth quarter earnings call in May. At this time, I will turn the call over to James for a closer look at our results. And following his comments, I will return and conclude our prepared remarks.