Quanex Building Products Corporation

Good day, and thank you for standing by. Welcome to the first quarter 2025 Quantix Building Products Corporation earnings conference call. At this time, all participants are on listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear automated message if your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Scott Zilske, Senior Vice President, CFO and Treasurer. Please go ahead.

Thanks for joining the call this morning. On the call with me today is George Wilson, our Chairman, President and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance, and Quantix undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website. I'll now turn the call over to George for his prepared remarks.

Thanks, Scott, and good morning to everyone joining the call. Before I begin my commentary, I want to take a moment to acknowledge Kurt Stevens for his many years of dedicated service on the Quantix Board of Directors. Kurt's expertise in the building product space, combined with his financial background, added immense value to our board. His leadership in chairing the Audit Committee for many years has been instrumental to our business. On behalf of the entire Quonix team, I want to thank Kurt for his service and wish him all the best in his retirement. Turning to the first fiscal quarter of 2025, our results aligned with expectations despite significant macroeconomic uncertainties in the challenging winter weather environment in the U.S. Year-over-year improvements in both revenue and earnings were largely driven by the contributions related to the acquisition of Tymon. Since the acquisition closed last August, our focus has been on integrating the two companies. Our primary objectives are to achieve or exceed the expected financial synergies from the transaction and to establish an organizational structure that both supports our current business and provides a scalable platform for future growth. From a synergy perspective, I'm pleased with the progress our team has made and remain confident we will meet our publicly announced target of $30 million in run rate synergies by the end of year two. We are also working diligently to identify additional synergies and explore opportunities to accelerate the realization. We look forward to providing a more detailed update during our second quarter call. Regarding organizational design, And as outlined in our recent investor presentation, we will be resegmenting our business into three new units, hardware solutions, extruded solutions, and custom solutions. Each of these segments will have a global scope and is designed to better serve our existing customers, support new product development, explore adjacent markets, and drive margin improvement through operational excellence and the sharing of best practices. This change will involve significant work from a public reporting perspective, and our team is focused on ensuring that we can report results in these new segments as soon as practical later this year. Looking at the markets, as I mentioned earlier, our first quarter results were in line with expectations. We have returned to our typical seasonal order cadence with a relatively softer Q1 due to holidays and weather. Outside of this normal seasonality, demand has been impacted by uncertainties surrounding future Fed interest rate movements and week-to-week changes regarding potential tariffs. We believe both factors have negatively affected consumer confidence. Likewise, conversations with our customers reflect a general sentiment of caution regarding new projects. However, the benefit to Quantix is that we have proven our ability to respond quickly to changes in demand, both up and down. As for tariffs, the situation remains fluid and unpredictable. However, we are confident that the efforts of our supply chain team over the past three years have positioned us to localize supply in most cases, which we believe will minimize the potential impact on Quantix and our customers. Where tariffs do apply, we are actively engaging with customers on pricing mechanisms and exploring continuous operational improvements to offset their impact. These efforts, combined with our synergy progress gives us confidence in reaffirming our full year earnings guidance. Operationally, I'm very pleased with our performance and the improvements we've already seen as part of the integration process. We achieved record safety performance in the first quarter, along with improvements in service and quality metrics. These gains are the results of sharing best practices between the legacy Quantics and time and teams, as well as the benefit of migrating to our new operating segments. Moving forward, our operational focus will remain on safety culture, employee engagement, working capital improvements, and optimizing return on net assets to maximize our cash flow generation. Regarding the use of cash flow to generate the best shareholder returns, we will focus on paying down debt and repurchasing our stock in an opportunistic manner. So in summary, while short-term market headwinds persist, the Quantix team continues to perform well, and the anticipated benefits of the time and acquisition are coming to fruition as we expected. We look forward to continuing our integration efforts and providing updates on our progress throughout the year. I'll now turn the call over to Scott, who will discuss our financial results in more detail.