Graco Inc.

Good morning, and welcome to the second quarter conference call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company website at www.graco.com. Graco has additional information available in a PowerPoint slide presentation, which is available as part of the webcast player. At the request of the company, we will open the conference up for questions and answers after the opening remarks from management. I will now hand the conference over to John Bauer, Director of Investor Relations. John, please go ahead.

Good morning. I'm here with Mark Sheahan, our President and Chief Executive Officer, Sanjiv Gupta, Chief Financial Officer and Treasurer, and Chris Knutson, Vice President, Chief Accounting Officer and Controller. We welcome you to our conference call to report Graco's fiscal 2026 second quarter results. Before we begin, I'd like to remind everyone that certain statements made during this call may be forward-looking and are subject to risks and uncertainties. Please refer to the State Harbor Statement included in our earnings release and earnings presentation as well as our SEC filings for additional information regarding these risks and uncertainties. I will now turn the conference over to Mark Sheahan.

Thank you, John. Good morning, everyone. We delivered record second quarter sales of $591 million and record second quarter earnings reflecting growth across all three segments. and Margin Expansion supported by disciplined expense management and operational execution. Contractor generated organic growth in the Americas led by home center and professional paint. Industrial benefited from broad-based activity across core markets while expansion markets continued to see strong semiconductor demand. Organic orders increased 5% during the quarter The most recent six-week booking average was up 14% versus last year and backlog as of July 17th excluding acquisitions was up $57 million or 28% from the beginning of the year. Together these positive trends give us confidence in a stronger second half. Capital allocation remains an important part of how we create long-term shareholder value. In May we announced the acquisition of Velco Melt-On One of Graco's largest acquisitions in more than a decade. Velco Melt-On is an attractive strategic fit that adds complimentary technology, products, and customer relationships in the high-growing packaging dispense market. We expect to create additional value by applying Graco's manufacturing expertise, operating discipline, and global reach to improve profitability over time. following a playbook already underway with core op, color service, and radio. At the same time, we continue to be active in evaluating additional M&A opportunities. Our strong cash position and balance sheet provide the flexibility to invest in businesses, pursue strategic acquisition, and return capital to shareholders. Turning to some of the segment performance. The contractor segment delivered record sales and earnings in the quarter. Revenue increased 4%, and organic sales were higher across both paint and home center markets in the Americas for the first time in nearly two years. We saw greater stability across many of our core markets during the quarter, supported by improved North America activity in residential repaint and remodel projects, sell-through trends across the channel, Stronger customer engagement, improved execution, and targeted commercial programs. We also continue to see good demand in protective coatings and foam, which represent a more global and application-driven part of the contractor business. These areas continue to benefit from commercial construction, infrastructure, and industrial project activity, including investments tied to data centers, energy, and manufacturing. The strength in these applications highlights the breadth of the contractor segment and our ability to serve customers beyond traditional residential paint. Innovation is an important way that we support customers and differentiate our offerings in the contractor business. New product introductions, including the next generation of QuickShot, the ProReach extension system, and new autonomous and semi-autonomous striping solutions are designed to improve productivity, reduce labor requirements, minimize material waste, and help customers deliver more consistent, high-quality results. Together, these factors helped drive 4% organic bookings growth in the quarter, with the most recent six-week order trends improving to 14% growth over last year. In the industrial segment, sales increased 3% in the quarter, reflecting better activity across process manufacturing, machinery manufacturing, general industrial applications, semiconductor-related investment, and continued adoption of electrified product platforms. These trends reflect customer investment in productivity, automation, and infrastructure projects. Additionally, we're seeing benefit from a more coordinated commercial approach that helps teams focused execution on larger opportunities and gained specifications with OEMs. Beyond these larger investment-driven markets, we also saw healthy demand in day-to-day industrial applications, including MRO channels. The quarter also reflected a few anticipated headwinds. Organic counter-finishing systems were lower due to the timing of order acceptance, which should occur in the second half of the year. In Asia, activity was slower to start the year, with China specifically affected by prior year pull-forward activity ahead of tariff-related pricing actions and a softer automotive demand. Organic orders improved throughout the quarter, with bookings increasing 3% year-to-date through July 17th and 11% over the most recent six-week period versus the prior year. Combined with a healthy backlog, these trends support our expectation for stronger performance in the second half of the year for industrial. Expansion markets grew 3% with growth across all key businesses. Semiconductor continues to have a strong year, particularly in Asia Pacific, supported by ongoing investment in semiconductor manufacturing capacity. Bookings increased 58% in the quarter, bringing year-to-date bookings growth to 33%. With the most recent six-week average up 36%, and backlogs remain strong. Overall, Graco's growth in the quarter came from multiple end markets, products, and geographies. It was supported by improving customer activity, focused investments in attractive markets, and the advantages of a diversified portfolio. These factors continue to guide our decisions and position us for long-term value creation. Moving on to our outlook. Looking ahead, we're encouraged by the improving trends we're seeing across Graco's business segments. New product introductions and strong channel initiatives support second half performance, while our teams remain focused on the actions to capture opportunities and drive growth. We're maintaining our full year outlook and initiating a third quarter revenue guide of $580 million to $600 million, excluding Velco Melt-On, which is expected to close during the third quarter. Overall, our strategy remains consistent. We're building a broader growth platform through innovation, disciplined capital allocation, and targeted acquisitions while staying focused on the highest return opportunities that drive our long-term success. With that, I'll turn the call over to Sanjiv to provide more detail on our financial results for the quarter.