Enpro Inc.

Greetings, and welcome to the MPRO Q1 2025 Earnings Conference Call and Webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the conference over to James Gentile, Vice President, Investor Relations. Please go ahead, James.

Thanks, Kevin, and good morning, everyone. Welcome to Enpro's first quarter 2025 earnings conference call. I will remind you that our call is being webcast at Enpro.com, where you can find the presentation that accompanies this call. With me today is Eric Valancourt, our President and Chief Executive Officer, and Joe Bruderick, Executive Vice President and Chief Financial Officer. During today's call, we will reference a number of non-GAAP financial measures. Tables reconciling the historical non-GAAP measures to the comparable GAAP measures are included in the appendix to the presentation materials. Also, a friendly reminder that we will be making statements on this call that are not historical facts and that are considered forward-looking in nature. These statements involve a number of risks and uncertainties, including those described in our filings with the SEC. Also note during the call that we will be providing full year 2025 guidance which excludes unforeseen impacts from these risks and uncertainties. We do not undertake any obligation to update these forward-looking statements. It is now my pleasure to turn the call over to Eric Valancourt, our President and Chief Executive Officer.

Eric. Thanks, James, and good morning, everyone. Thank you for your interest in ENPRO as we discuss our latest quarterly results, along with an update on strategic initiatives and our current views for 2025. Before we discuss the quarter, I would like to recognize our colleagues across EnPro who are energized and focused on providing critical products and solutions to our customers, while displaying discipline and agility in continuing to deliver exceptional commercial and financial results. At EnPro, one of our overarching philosophies is the dual bottom line, which is our belief that outstanding financial performance and personal development are intertwined in such a way that one does not happen without the other. Consistent with this belief, we invest significant time and effort to develop strategic, agile leaders with a high degree of awareness and business acumen that thrive in a variety of economic environments. We have clarity on the elements of our business that we can control and show agility in pulling these levers of control to drive strong execution when economic uncertainty arises, only to emerge stronger on the other side. Our people are the cornerstone of our efforts to drive EnPro to new heights as we encourage our colleagues to accelerate personal and profitable growth in EnPro 3.0, the next phase of our value-creating strategy launched earlier this year. We are excited and well-positioned to continue demonstrating EnPro's growth capabilities and durable business model as we move forward. Now on to our first quarter performance. After my overview, Joe will provide more detailed discussion of our quarterly results and perspectives, underpinning our current outlook for 2025. The first quarter report highlights continuing outperformance in ceiling technologies and year-on-year revenue growth in AST. We grew organic sales 6% in the first quarter, with strong execution driving operational leverage and year-on-year earnings growth. In ceiling technologies, organic sales increased 4.5%, driven by strength in aerospace, general industrial, and food and pharma markets, offset by continued weakness in commercial vehicle OEM demand. Adjusted segment EBITDA margins exceeded 32%. Continuous improvement initiatives, favorable pricing, and mix also contributed to another strong quarter in ceiling. In line with our long-term strategy, we continue to invest in organic growth opportunities in areas where we have clear applied engineering and technological differentiation while pursuing capability expansions through acquisitions that meet our rigorous strategic and financial criteria. We are driving market share gains and accelerating sales in aerospace markets with technological innovation and differentiated applied engineering expertise. In the commercial vehicle market, New products are helping stabilize sales and improve mix during this period of weaker demand for trailers. We continue to encourage imagination and are investing in adjacent market development opportunities to leverage our market-leading strengths. Additionally, the segment's aftermarket positioning provides stability during periods of economic or geopolitical uncertainty. Two-thirds of the segment serves the aftermarket with critical solutions qualified to safeguard a wide range of customer processes We expect the segment to perform well in a variety of economic environments. In the advanced surface technology segment, sales increased 9.1% year-over-year, driven by double-digit revenue growth and precision cleaning solutions and optimal coatings and filters, more than offsetting still choppy semiconductor capital equipment spending. Despite expenses to support growth initiatives, operating leverage drove a nearly 19% improvement in adjusted segment EBITDA to a margin rate of around 22%. Our targeted growth investments in the segment are developing nicely, and our operational improvement initiatives position the ASD segment well for future outperformance and an eventual overall market recovery. We continue to be pleased with the overall segment's performance during this prolonged period of weakness in semiconductor capital equipment spending as we lean into our best growth opportunities, investing in areas where we have strong technological advantages and differentiated capabilities. Total company adjusted EBITDA increased over 16% on the 6% increase in sales, with margins expanding to 24.8% this quarter. Our balance sheet remains in excellent shape, providing us ample flexibility to execute on our value creating strategy. Before I hand the call over to Joe, I'd like to take a few minutes to discuss our direct tariff exposures. With respect to direct impact to our businesses, we believe our exposure to be minimal and manageable. Like others, we will continue to monitor potential secondary impacts that tariffs could have on the broader macroeconomic environment. Most of our production is in region for region and our supply chain teams have secured diversified raw material sources to support operations for the rest of the year. Our supply chain teams have demonstrated their discipline time and time again in a variety of challenging environments. and we are grateful for their continued agile execution during this period of macroeconomic and geopolitical uncertainty. Their performance is reflective of our entire team's continued focus on our core values of safety, excellence, and respect as we empower technology with purpose. I want to thank all of our colleagues for their dedication and commitment to our business, our values, and our customers that continue to allow us to differentiate ourselves with excellent performance and build upon our market leadership. Joe?