Enpro Inc.

Greetings and welcome to the ENCRO first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to James Gentile, Vice President, Investor Relations. Thank you. You may begin.

Thanks, Jesse, and good morning, everyone. Thank you for joining us today as we review Enpro's first quarter 2026 earnings results and discuss our improved outlook for 2026. I'll remind you that this call is being webcast at Enpro.com, where you can find the presentation that accompanies the call. With me today is Eric Valencourt, our President and Chief Executive Officer, and Joe Bruderick, Executive Vice President and Chief Financial Officer. During this morning'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, including our current perspectives for full year 2026 guidance 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. We do not undertake any obligation to update these forward-looking statements. It is now my pleasure to turn the call over to Eric Valencourt, our President and Chief Executive Officer. Eric?

Thanks, James, and good morning, everyone. Thank you for your interest in ENGRO as we discuss our first quarter results, provide an update on strategic initiatives, and share our current views for the balance of 2026. Before we discuss our results for the first quarter, I would like to recognize our 4,000 colleagues across the company who are accelerating their personal and professional growth while contributing to EnPro's strategic and financial successes. Momentum and excitement is showing up throughout the organization, and we are off to a strong start in the second year of EnPro 3.0. We are energized to continue providing critical products and solutions to our customers while driving significant enterprise value creation by unlocking compounding strengths of our portfolio. Our leading market positions, committed colleagues, and strong balance sheet support the continued execution of our multi-year value creation strategy. After my update, I will turn the call over to Joe for a more detailed discussion of our results and drivers of our increased guidance for 2026. Now onto the highlights for the first quarter. We started 2026 off on the front foot with reported sales up nearly 11% year over year. Improving demand in semiconductor markets drove sales in the advanced surface technology segment up over 11%. Additionally, the contributions from the two businesses that we acquired in the fourth quarter, Alpha Measurement Solutions and Overlook Industries, drove ceiling technology sales up 10.8%. Total company adjusted EBITDA increased nearly 13% to over 76 million, at a margin of over 25% for the first quarter. We are pleased with these results, especially as we continue to invest in growth opportunities across the company and high margin return thresholds while accelerating investments in the development and growth of our colleagues. Throughout our organization, teams are excited to drive our 3.0 strategy forward. Our early progress shows the benefits we expect to unlock as we move into this phase of our strategy. We are confident that our proven excellent execution will allow us to continue to succeed in a variety of macroeconomic backdrops. In AST, positive trends across the segment's portfolio of products and solutions are translating into strong performance. The slope of the demand curve has steepened with order patterns accelerating during the first quarter ahead of our expectations at the start of the year. For us, execution is top of mind and we began building inventory during the first quarter to ensure that we can effectively deliver for our customers and proactively manage potential capacity, supply chain, and labor constraints as demand increases. We are already seeing the investments we made in AST during the downturn begin to bear fruit in the early stages of the recovery cycle. We expect these investments will position us well to capture opportunities from the acceleration of semiconductor capital equipment spending for the balance of the year and beyond. We also believe that our vertical integration model is a key differentiator for Encro in the next phase of the semiconductor industry growth, as many of our new business wins are using more of our solutions to drive value for our customers, enhancing our specified position in critical in-chamber tools, including gas dispersion and wafer handling applications. In addition, hard work to qualify and earn processor record designations solidifies our position in leading as precision cleaning solutions. a business that is currently strong and accelerating. Our capacity expansions in Taiwan, California, and Arizona, both executed and ongoing, position us to participate in the rapid expansion of leading-edge chip production capacity supporting advanced computing and artificial intelligence. In ceiling technologies, segment revenue of 10.8% was primarily driven by the first full quarter contribution from the acquisitions of Alpha and Overlook, completed in the fourth quarter of 2025, recovering nuclear solution sales and currency tailwinds. Commercial vehicle sales were down year over year, below our expectations, as demand remained slow, although we're cautiously optimistic that we are nearing the bottom in commercial vehicle markets. Aerospace sales and ceiling were flat year over year, reflecting a difficult year over year comparison in commercial aerospace. which was partially offset by continued acceleration in demand for products supporting space applications. Total ceiling segment orders were up double digits during the first quarter. Sealing technologies marked segment profitability remained strong at 32.5%, with disciplined execution helping to offset continued growth investments, softness in commercial vehicle sales, and tepid general industrial demand internationally. Aftermarket sales represented 60% of ceiling segment revenue in the quarter. Integration is going well at Alpha and Overlook, and we are making the appropriate investments to fully integrate these businesses into Enpro and unlock additional growth opportunities. Our new colleagues are already finding ways to leverage the Enpro network, including our sourcing, supply chain capabilities, and operational expertise, while delivering strong top-line growth during the first quarter. Additionally, AMI, which we acquired in January 2024, continues to perform above plans. We expect the fueling technology segment to deliver continued best-in-class performance. Our growth priorities underpinning the EnPro 3.0 strategy remain unchanged and will guide our performance through 2030. For the long term, we are positioned to generate mid-to-high single-digit organic top-line growth with strong profitability and returns complemented by capability-expanding acquisitions and meet our rigorous strategic and financial criteria. We are targeting mid-single-digit organic growth in ceiling technologies. While at AST, we are targeting at least high single-digit organic growth with both segments capable of generating 30% adjusted segment EBITDA margins plus or minus 250 basis points through 2030. Our cash flows allow us to maintain our strong balance sheet with a net leverage ratio currently at 1.9 times after taking into account the four-quarter acquisitions of Alpha and Overlook. Our first capital allocation priority is to reinvest in the business and our people, while pursuing select strategic acquisitions that expand our leading-edge capabilities and meet our stringent criteria, without the use of excess leverage, to drive growth in line or above Enbro 3.1 goals. We are excited to live on our promises and continue to execute our strategic plan. Life is good in Enbro, and the future is bright. Joe?