Mohawk Industries, Inc.

Good morning everyone and welcome to the Mohawk Industries first quarter 2026 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your touch tone telephones. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Nick Manthe, Chief Financial Officer. Please go ahead.

Thanks, Jamie. Good morning, everyone, and welcome to Mohawk Industries' quarterly investor conference call. Joining me today on the call are Jeff Oberbaum, Chairman and Chief Executive Officer, and Paul DeCock, President and Chief Operating Officer. Today, we'll update you on the company's first quarter performance, and provide guidance for the second quarter of 2026. I'd like to remind everyone that our press release and statements that we make during the call may include forward-looking statements as defined in the Private Security Litigation Reform Act of 1995, which are subject to various risks and uncertainties, including, but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission. This call may include discussion of non-GAAP numbers For a reconciliation of any non-GAAP to GAAP amounts, please refer to our Form 8K and press release in the Investors section of our website. I'll now turn the call over to Jeff for his opening remarks.

Thank you, Nick. Our performance for the first quarter was in line with our expectations despite a challenging environment. Our adjusted EPS was $1.90, up approximately 25% versus the prior year. Our results include benefits from productivity, restructuring, and product mix offset by inflation and volume. Last year was impacted by the system conversion and had four fewer days. Our net sales were approximately $2.7 billion, an increase of 8% as reported, or a decrease of 2.6% on a constant basis. Across our regions, the commercial sector continued to outperform residential. New home construction remained soft. and consumers continue to defer home purchases and remodeling projects due to economic uncertainty. We're implementing productivity actions and executing our previously announced restructuring projects to enhance our results. During the quarter, we repurchased 607,000 shares of stock for $64 million as part of our current stock buyback authorization. Our strong balance sheet provides strategic and operational flexibility to take advantage of opportunities that arise. At the end of February, the conflict in the Middle East intensified, increasing volatility in global energy markets. The full impact of the conflict is unpredictable given the disruption to the worldwide supply of oil and natural gas. Higher gasoline and diesel prices were the fastest and most visible impact of supply disruptions and are contributing to a more cautious consumer outlook. Energy prices as well as the cost of oil and natural gas derivatives are also increasing. which affects the costs of many of our products. Depending on the duration of the conflict, the economic impact will vary across our markets, with increased inflation reducing consumer sentiment and discretionary spending. U.S. natural gas prices have been less impacted due to the significant domestic production, though oil prices in the U.S. have risen as they follow worldwide trends. In the U.S., 10-year Treasury yields have increased, creating a corresponding rise in mortgage rates. The European continent will be more affected due to the dependence on oil and gas from the Middle East, and we have made forward purchases to limit our exposure. European governments are reviewing initiatives to lessen the impact on businesses and consumers, such as cutting energy taxes, implementing fuel price caps, and coordinating European gas storage. The energy markets will remain volatile until the global supply normalizes. We're implementing price increases across many products and geographies, and further price increases could be required. The impact of higher cost of raw materials will be greater in the second half of the year due to our flow-through of our inventory. We are continuing to launch new product collections with industry-leading designs and features to enhance our sales and margins. We're implementing operational strategies that we've used to navigate past disruptions, which prioritize adaptability and cost control. We're maintaining flexibility to align with evolving demand, supply availability, and volatile costs. We're focused on the controllable parts of our business, including sales initiatives, inventory levels, and discretionary spending and investments. Now, Nick will provide the details of our financial performance for the quarter.