Mueller Industries, Inc.

Ladies and gentlemen, and welcome to the Miller Industries' first quarter 2026 results conference call. Please note, this event is being recorded, and at this time, I would like to turn the call over to William Miller at Miller Industries. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining us for our first quarter 2026 earnings call. I want to begin by thanking our employees around the world for their dedication and support. Our first quarter results and strategic progress reflect the commitment and passion of our team, our suppliers, our customers, and our shareholders. As always, our remarks today will include forward-looking statements. Actual results may differ materially. Please refer to our SEC filings and the safe harbor statement included in today's presentation. I would like to start with a brief overview before I hand the call over to Debbie, who will review our results in greater detail. We entered the year with strong momentum. The actions we took in 2025 to reduce field inventory, improve the health of our distribution channel, and strengthen our supply chain positioned us to capture rising demand across the business. As that demand materialized, we strategically increased production to deliver solid sequential revenue. and led to higher diesel prices, creating pressure on retail demand. In response, our team remained disciplined and focused, proactively pausing our North American production increase at current levels to maintain balanced distributor inventory. We believe this was the right decision to best position the business for future success. Despite the reduction in retail activity that we saw throughout 2025 and the recent effects of the conflict in the Middle East We remain confident in the strength of our business and the structural demand opportunities ahead. Our core philosophy remains exactly as it has been since day one. Miller Industries has the best people, the best products, and the best distribution network in the selling and recovery industry. That philosophy is the backbone of Miller Industries' 35-year history and will continue to be our philosophy moving forward. our 1,500-plus employees across Tennessee, Pennsylvania, France, the U.K., and Italy. And our distribution footprint gives us unmatched reach, capability, and reliability that continues to position the company for future growth. I want to recognize all of our teams across the U.S., Europe, and the U.K. for their dedication to support the company throughout difficult periods. Their commitment allows us to stay agile in the near term while building the foundation for longer-term growth and value creation. I'll now turn the call over to Debbie, who will provide an update on our financial results in more detail before returning with some more specific thoughts on our markets in 2026, capital allocation priorities, and guidance. Thank you, Will.

Thank you, Will. Before I begin, I would like to note that this was our first full quarter of contribution from OMARS from the OMARS acquisition. We are encouraged by the smooth integration thus far and expect OMARS to be an increasingly meaningful contributor to our results going forward. For the first quarter, revenue was $180.9 million, down 19.8% year over year, and in line with our expectations for the quarter. This decline reflects an institution with lower production levels in the second half of 2025. Earlier this year, we started to accelerate production to meet increasing refill activity and order intake. This drove quarter-over-quarter revenue growth of 5.7%. Gross profit was $25.7 million, or 14.2% of sales, and diluted EVF was 5 cents per share. IRS G&A expenses for the quarter were primarily attributable to the inclusion of OMARs. Based on preliminary valuation estimates, we recorded certain non-cash acquisition-related expenses associated with OMARs during the first quarter, primarily related to fair value adjustments and equipment sales and the amortization of estimated intangible customer relationship assets. These items reduced first quarter results by approximately 13 cents per diluted share. At this time, we expect this amount to represent roughly half of the total one-time acquisition-related expenses anticipated to be recognized over the balance of 2026. We are continuing to work closely with our third-party evaluation specialists, and the final announce will be recorded upon completion of the evaluation process. We remain confident that the acquisition will be accretive in the first year after recognizing these non-cash acquisition-related expenses. Earnings per share was also impacted by higher consolidated taxes, primarily as a result of a conservative tax approach to the acquisition-related expenses for OMARs, as well as non-deductible competitive compensation. I'd like to now shift to a discussion of our balance sheet. At the end of the first quarter, we had a cash balance of $53 million, up $8.3 million from the end of last year, as we continue to convert receivables at a faster pace. Our strong cash position provides increased flexibility to deploy cash flow in the most efficient and value-creating way for our investors. Now, I'll turn the call back to Will to discuss our markets and our outlook.