CSW Industrials, Inc.

Greetings and welcome to CSW Industrial, Inc. Fiscal 2027 First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star, zero, or your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to Alexa Huerta. Thank you. You may begin.

Thank you, Julian. Good morning, everyone, and thank you for joining CSW Industrials' fiscal 2027 first quarter earnings call. Joining me today on the call is Joseph Arms, our Chairman, Chief Executive Officer, and President of CSW Industrials, and James Perry, our Executive Vice President and Chief Financial Officer. Earlier today, we issued our earnings release updated investor relations presentation, and quarterly report on Form 10-Q, each of which is available on the Investor section of our website at www.ir.csw.com. Today's call is also being webcast, and replay information is included in the earnings release. Before we begin, I would like to remind everyone that today's discussion will include forward-looking statements. These statements reflect our current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially. Additional information regarding these risks is included in our earnings release, our comments on today's call, our annual report on Form 10-K, and our other filings with the SEC. We do not undertake any obligation to update any forward-looking statements except as required by law. With that, I will now turn the call over to Joe.

Thank you, Alexa, and good morning, everyone. The exceptional fiscal first quarter results we reported today demonstrate the power of a disciplined capital allocation strategy laser focused on growing shareholder value through market cycles. We are reporting all time record revenue, adjusted EBITDA, adjusted earnings per diluted share, and operating cash flows due to the resilience of our businesses, the efficiency of our operations, and the successful integration of our recently completed acquisitions. Guided by our enduring capital allocation strategy, since May 1 of 2025, we have invested approximately $1 billion to consummate five highly accretive and synergistic acquisitions, including the transformative additions of Mars Parts and Aspen Manufacturing, plus three smaller but still immediately accretive acquisitions across our contractor solutions and our specialized reliability solutions segments. As I mentioned earlier, the integration of each of these businesses has gone very well. Simultaneously, we have continued to return meaningful capital to shareholders. During the quarter, CSW returned a total of $28.4 million in cash to shareholders through $23.5 million of open market share repurchases and $4.9 million in dividends. Our continued investment in our own shares demonstrates our strong belief that our equity has been undervalued relative to our growth and profitability and cash flows, thus representing a compelling investment opportunity. Concurrently with our share repurchases, we also delevered during the quarter, reducing our net debt-to-EBITDA ratio from 2.55 times at fiscal 2026 year end to 2.37 times at the end of the fiscal first quarter through the reduction of net debt plus growth in our EBITDA. Our balance sheet strength gives us the flexibility to exploit all capital allocation alternatives open to us. End market momentum remained constructive despite the various dynamics in the macroeconomic environment during the quarter. All three of our business segments generated strong, top-line results accompanied by margin expansion. Our contractor solutions segment is growing and expanding margins. Benefiting greatly from the comprehensive product offering created by the addition of Mars and Aspen, we are positioned to serve our customers well as we move through peak cooling season. We continue to expect this segment to outgrow the end market served, which would result in mid to high single-digit organic growth through the cycle. Our specialized reliability solutions segment delivered robust organic revenue growth with an EBITDA margin in excess of the 20% target that we have for this segment. The integration of the two recent acquisitions continues to provide accretion, and we expect to show continued margin strength for the full fiscal year. We continue to work toward the exit of the GRECO business in our engineered building solutions segment. Excluding the Greco business, the segment generated organic revenue growth, a strong EBITDA margin, and we exited the quarter with record order backlog, reinforcing our confidence in the segment's outlook and margin trajectory. At this time, I will turn the call over to James for a detailed review of our financial performance, and then I will return afterward with a few closing comments.