Mohawk Industries, Inc.

and welcome to the Mohawk Industries second quarter 2026 earnings conference call. All participants will be in 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 then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Ahlersmeyer, Vice President, Finance and Investor Relations. Please go ahead.

Thanks, Megan. Good morning, everyone, and welcome to the Mohawk Industries Quarterly Investor Conference Call. Joining me on today's call are Jeff Lorberbaum, Chairman and Chief Executive Officer, Paul De Cock, President and Chief Operating Officer, and Nick Manthey, Chief Financial Officer. Today we'll update you on the company's second quarter performance and provide guidance for the third quarter of 2026. I'd like to remind everyone that our press release and statements that we make during this call may include forward-looking statements as defined in the Private Securities 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, Joe. Our second quarter results significantly exceeded our expectations as we outperformed our markets. Our net sales were $3 billion, up 6.8% versus the prior year as reported, or up 5% on a constant basis. Our performance benefited from volume growth, pricing, and product mix. Across our regions, our teams effectively executed our strategies and capitalized on opportunities with new and existing customers. We successfully introduced new collections, expanded product placements, and improved our mix. In the period, volume benefited from initial stocking of new product placements and limited increases in inventory by some customers ahead of announced price increases. Our second quarter reported EPS of $3.22 and adjusted EPS was $3.67, including a benefit of approximately 63 cents from tariff refunds, which were not included in our second quarter guidance. These refunds represent the reversal of costs that we have absorbed from higher tariffs. As part of our buyback program, We purchased over 600,000 shares during the quarter for approximately $60 million. Our second quarter forecast had reflected uncertainty related to the Middle East conflict, but market conditions proved more resilient than we anticipated. Residential channels remained soft during the quarter, and we believe we outpaced the market and gained share in most regions. The commercial sector continued to outperform residential, and our differentiated offering enhanced our mix and margins. The new home construction market remains pressured, and existing home sales continue to be affected by affordability challenges. In the softer environment, we're proactively managing the controllable aspects of our business, including enhancing our sales strategy, pricing, operational improvements, and managing our inventory levels and costs. Across many of our products and geographies, we executed price increases in response to higher materials, energy, and transportation costs. In the second half of the year, these higher input costs will flow through inventory and impact our margins. With continued uncertainty, additional price increases may be required this year. We are bringing innovative products to the market with differentiated features to strengthen our sales mix. Across the business, our teams are delivering significant productivity gains, and our results are benefiting from our prior restructuring projects. In addition, we've initiated new projects focused on operational simplification, organizational realignment, warehouse consolidation, and capacity optimization, which will reduce our costs approximately $60 million, with most completed by the end of 2027. These savings will require cash restructuring costs of approximately $50 million. We recently released our 17th annual impact report, which highlights the successful completion of our 2025 sustainability goals, which lowered our emission intensity by 31%, waste to landfill intensity by 55%, and water intensity by 50% from our base year. To read the report and see all of our accomplishments, visit the sustainability section of our website. On a personal note, We announced that I would be retiring as CEO and would be turning over the reins to Paul. With 25 years as Mohawk CEO, I've taken great pride in watching our talented organization transform Mohawk into the world's largest flooring manufacturer. Together, we've established leading market positions on four continents, grown our operations to 19 countries, and built a product portfolio encompassing every major flooring category as well as expanding into other product adjacencies. I truly believe that Mohawk's best days are ahead and the actions we have taken over the past years will strengthen our offering, streamline our operations, and enhance our competitive advantage. I've worked closely with Paul for over two decades and I'm confident that he will lead Mohawk to new heights. I look forward to continuing to support him as Chairman of the Board. I want to also express my gratitude to all those at Mohawk, as well as our customers, suppliers, analysts, and investors. Your trust, partnership, and unwavering commitment have been integral to Mohawk's success and all that we've accomplished together. With that, I'll turn the call over to Paul.