Donaldson Company, Inc.

ladies and gentlemen thank you for standing by my name is krista and i will be your conference operator today at this time i would like to welcome you to donaldson company's second quarter fiscal year 2026 earnings webcast and conference call all lines have been placed on mute to prevent any background noise after the speaker's remarks there will be a question and answer session if you would like to ask a question at that time simply press star, then the number one on your telephone keypad. And if you'd like to withdraw that question, simply press star one again. Thank you. I would now like to turn the conference over to Sarkar Dardwell, Head of Investor Relations. Please go ahead.

Good morning. Thank you for joining Donaldson's second quarter fiscal 2026 earnings conference call. With me today are Todd Carpenter, Chairman, President, and CEO, Rich Lewis, incoming President and CEO, and Brad Pogles, Chief Financial Officer. This morning, we will provide a summary of our second quarter performance and our outlook for fiscal 2026. During today's call, we will discuss non-GAAP or adjusted results. For second quarter 2026, non-GAAP results exclude pre-tax charges of $6.7 million, including $2.9 million of restructuring and other and $3.8 million of business development charges. This compares to prior year pre-tax charges of $6.6 million, including $2.2 million of restructuring and other and $4.4 million of business development charges. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and SEC filings. With that, I will now turn the call over to Todd.

Thanks, Sarka. Good morning, everyone. Donaldson Company achieved record sales in the second quarter as we worked hard to meet strong customer demand across all three of our segments. Our underlying business is robust as evidenced by our high backlogs and continued strong order intake. While we face short-term execution challenges in our industrial segment, we saw strength in areas such as independent aftermarket within mobile solutions, and food and beverage and disk drive within life sciences. We also announced the acquisition of Facet, the largest acquisition in company history, which I will discuss in a few minutes. Entering the second half of the year, I have confidence in the strength of our organization and our commitment to deliver on our updated fiscal 2026 outlook, which represents record sales of approximately $3.8 billion with operating margin of and adjusted earnings per share at all-time highs. Throughout our history, our talented global teams have demonstrated a commitment to deliver for all of our stakeholders, including our customers, shareholders, and employees. We continually do this through our leadership position in filtration, which was built on decades of solving our customers' most difficult filtration problems, Our best-in-class technology, uniquely powerful because we focus on filtration capabilities and then leverage these technologies across markets. Our ability to help customers meet evolving environmental and operational goals by helping to protect equipment, processes, and people. And our clear strategic and balanced growth strategy. This is how we have and will continue to win. In late January, we announced our next president and CEO, Rich Lewis, effective next week on March 2nd. This transition reflects a long-term succession planning process that comes at a time when we are well positioned for the future, thanks to the talent, dedication, and discipline of our global team. Rich has been with Donaldson since 2002 and has been our chief operating officer since August. On behalf of the entire organization, I want to congratulate him and I look forward to his future success. Before I turn it over to Rich to discuss our second quarter results in more detail, I want to touch on our recent acquisition of Facet, which we are very excited about. This acquisition complements and expands Donaldson's product portfolio, bringing high performance fuel and fluid filtration capabilities for mission critical applications and broadening our exposure to durable end markets such as aerospace and defense and power generation. Importantly, approximately 70% of FACET's revenue are driven by recurring regulated replacement part sales, a nice fit with our already large composition of replacement parts. FACET makes us stronger. adding nearly $110 million in sales with gross margins and EBITDA margins significantly above our current company average. The company has low capital intensity and strong cash flows. We look forward to welcoming the Facet team to Donaldson and reporting on our combined performance. Now I will turn it over to Rich, who will talk more about the second quarter highlights, and then Brad will take us through the financials in more detail. Rich?