ESCO Technologies Inc.

Good day and thank you for standing by. Welcome to ESCO Technologies Q2 2026 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. On the call today, we have Brian Saylor, President and CEO, and Chris Tucker, Senior Vice President and CFO. I'd now like to turn the conference over to your first speaker today, Kate Lowry, Vice President of Investor Relations. Kate, you now have the floor.

Thank you. Statements made during this call, which are not strictly historical, are forward-looking statements within the meaning of the safe harbor provisions of the federal securities law. These statements are based on current expectations and assumptions, and actual results may differ materially from those projected in the forward-looking statements. Due to risks and uncertainties that exist in the company's operations and business environment, including but not limited to the risk factors referenced in the company's press release issued today, which will be included as an exhibit to the forum's Companies form 8K to be filed. We undertake no duty to update or revise any forward-looking statements except as may be required by applicable laws and regulations. In addition, during this call, the company may discuss some non-GAAP financial measures in describing the company's operating results. A reconciliation of these measures to the most comparable GAAP measures can be found in the press release issued today and found on the company's website at www.escotechnologies.com under the link Investor Relations. Now, I'll turn the call over to Brian.

Thanks Kate, and thanks everyone for joining today's call. We are pleased to be with you this afternoon to discuss our second quarter results. I'd like to start the call by sincerely thanking all of our employees around the world. Your dedication, collaboration, and commitment continue to make the difference, and they were central to delivering another outstanding quarter. In Q2, we continue to see positive momentum across business platforms as the pace of progress across our end markets continues to build. We had another strong quarter for orders across all three segments and that sustained demand drove backlog to a record level. Clear evidence of healthy end markets are the strength of our competitive position. From an operational perspective Q2 delivered another strong performance and translating into exceptional results on both the top and bottom line. Revenue strength was broad based across most of our served markets. We see this quarter as further proof of the power of our strategy and our ability to execute with consistency, delivering sustainable value over time. As we announced in mid April, we have reached an agreement to acquire Mega Group Limited. This acquisition represents a significant step in our portfolio transition, and I wanted to give you a quick update on what's been transpiring since the announcement. We have begun the regulatory filings process in the required countries. And while the timing of this process can be uncertain, Our current expectation is that it should be completed in a timeframe that results in closing the deal in the first quarter of fiscal 2027. In addition, I wanted to let you know that we have already established internal teams with MEGR, DOBL, and ESCO staff working together to better understand key aspects of the integration process. We expect that this early preparation and planning will be beneficial in setting out steps for a smooth and orderly integration of Bilbo and Medgar with a focus on realizing identified synergies once the transaction is complete. Adding Megger to the ESCO portfolio creates a scaled utility solutions platform and strengthens our position as a trusted partner to utilities worldwide. This acquisition marks another meaningful step in enhancing our portfolio, and we remain confident in the long-term outlook for our target markets. With durable demand drivers firmly in place, we are excited about the opportunities ahead. Chris will run you through all of the financial details for the second quarter, but before that, I wanted to give you a few comments on each segment. We recently completed our annual strategic planning process with our subsidiary businesses. As part of these meetings, we assess each of our end markets and our strategies to deliver above-market growth. My comments will focus on the current order strength that we are seeing as well as some of the longer-term dynamics across our served markets, starting with aerospace and defense. In Q2, we continue to see order strength on U.S. and U.K. Navy programs, both from the maritime business and organically at Globe, where we entered $24 million of Virginia-class orders in the quarter for Block 5.2 and Block 6 content. In addition, we are seeing broad order strengths on commercial aerospace programs. As we have mentioned previously, commercial aerospace orders were a little soft last year as the OEMs worked through some internal issues. So it is nice to see the rebound in order strength here. We continue to see a positive long-term outlook across our A&D end markets, supported by strong demand visibility and multi-year program backlog. In commercial aerospace, demand continues to outpace production, sustaining historically high OEM backlogs. Annual deliveries are expected to increase from approximately 1,400 aircraft in 2025 to more than 2,000 per year by 2028 and beyond. While we view industry forecasts with an appropriate conservatism, we believe that the OEMs are on a recovery path and we are already seeing order momentum tied to early progress in raising building rates. In defense, Arrow, elevated geopolitical uncertainty is supporting higher budgets and new program starts. The F47 NGAD program represents a meaningful long cycle growth opportunity, and we have achieved strong early wins to secure attractive shift set content. In naval markets, both the U.S. and U.K. remain committed to submarine modernization and fleet expansion, with increasing bill rates and new platform development continuing to be key priorities. Turning to the Utility Solutions Group, we delivered another strong quarter of orders led by services, offline test equipment, and condition monitoring that supported double-digit revenue growth. These results were partially offset by lower renewables demand as developers continue to prioritize project completions ahead of tax credit sunsets later this summer. Looking ahead, we are encouraged by the outlook for utility solutions. Approximately 85% of segment activity is tied to utility capital spending, which we expect to remain elevated as electric utilities invest to meet rising electricity demand. This demand is placing increasing strain on an aging infrastructure, accelerating the need to maintain, expand, and modernize the electric grid. Our diagnostic measurement, testing and monitoring solutions help utilities improve reliability and performance across both new and legacy assets. Our condition monitoring equipment and high voltage test solutions are becoming increasingly important for utilities and OEMs that manufacture transformers and switchgear as they navigate the challenges of maintaining and expanding the grid. Overall, we remain bullish on the longer-term opportunity in the utility and market. Finally, I'll touch on the test business. which carried its great start to the year into the second quarter. Orders were strong in the quarter, driven by EMC tests and measurement in the U.S. and Europe. Filter orders for government-funded data centers and multiple industrial shielding projects. Over the longer term, we are seeing broad-based strength across most of tests and markets, and expect mid single digit organic revenue growth over our planning horizon. Demand is being supported by a favorable regulatory and standards environment, rising requirements for electromagnetic compatibility and shielding performance across mission critical applications. Compliance testing and evolving standards continue to drive increased test frequency and expanded certification requirements. We see sustained demand across EMC and microwave applications, healthcare, industrial shielding, and EMP filters serving utilities and secure data centers. We are optimistic about test continued opportunities to drive growth and margin expansion over time. With that, I'll turn it over to Chris, who will run you through the financial details for the quarter.