Quanex Building Products Corporation

Good day and thank you for standing by. Welcome to the fourth quarter and full year 2025 Quonix Building Products Corporation earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during a session, you will need to press star 1-1 on your telephone. You have an automated message advising 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 it over to your first speaker today, Scott Zilke, 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 or a 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. I'm encouraged by what we were able to achieve in 2025, despite a challenging macroeconomic environment. Throughout the year, we executed on a disciplined strategy centered on operational rigor, cost efficiency, and long-term value creation. We successfully resegmented our business to better align with market opportunities. We established new commercial and operational excellence teams to drive improved performance, and we delivered synergy realization above our original $30 million commitment. In addition, we intensified our focus on working capital efficiency and free cash flow generation while further strengthening our balance sheet. Most importantly, we also continued to improve our safety performance, positioning the company at a world-class standard, which is a critical foundation for sustainable operational reliability and future growth. These achievements collectively reinforce our confidence in the company's future. I'll now provide a brief commentary on the broader macro environment, followed by a summary of our quarterly performance, before turning the call back over to Scott for a more detailed financial review. From a macro perspective, the market continues to face demand headwinds. Globally, affordability remains a significant challenge as inflationary cost pressures and ongoing housing inventory shortages continue to drive pricing higher. In the U.S., these factors, combined with a wait-and-see approach ahead of anticipated Federal Reserve rate cuts, have kept many consumers on the sidelines. We expect this dynamic to persist into 2026, which we believe could result in a generally flattish demand environment overall. Looking ahead, Further interest rate movements, broader economic conditions, and regional supply demand imbalances will ultimately determine whether demand strengthens or remains subdued. That said, we continue to believe the long-term underlying fundamentals of the residential housing market are positive. Demographic trends, household formation, and the persistent structural housing shortage all point to substantial latent demand, even if near-term conditions are causing consumers to delay purchasing decisions. These same long-term indicators form the basis of the profitable growth strategy that we presented at our investor day last February. Our thesis remains intact, and the strategic initiatives we outlined are still progressing as planned. While near-term macro pressures have impacted recent results, we remain confident in our long-term outlook and our ability to capitalize on the opportunities ahead. Now for a brief summary of Q4. Market conditions and order demand tracked in line with our expectations during the fourth quarter of 2025. Volumes in our hardware solution segment were up approximately 1%, and volumes in our custom solution segment were essentially flat compared to the prior year. However, volumes were pressured in our extruded solution segment, mainly driven by weaker demand across our European and international markets, where macroeconomic conditions remain more challenging. Operationally, adjusted EBITDA was impacted by lower volumes in the extruded solution segment, as well as costs associated with addressing the operational issue at our window and door hardware facility in Monterey, Mexico. As discussed on our prior call, the manufacturing issue was identified in Q3, and we quickly determined the root cause and then proceeded to implement a comprehensive remediation plan to correct the issue and stabilize the plan. We noted then that the plan would take time to fully implement and we continue to work closely with all affected customers to minimize disruption. I'm pleased to report that we are slightly ahead of our initial timeline and now expect to return to normal operating conditions early in calendar year 2026. Turning to the balance sheet and cash flows, we are extremely pleased with the progress we are making. As we continue to advance our initiatives around working capital optimization and return on net assets, we are seeing consistent free cash flow generation, This strong cash performance has enabled us to further reduce debt while also being opportunistic in repurchasing shares in the open market. Our current capital allocation priorities remain unchanged. We will continue to focus on debt repayment while opportunistically repurchasing shares when open trading windows allow. Despite the current market headwinds, We believe the resegmentation of our business, combined with synergy realization and operational improvements underway across our facilities, position us to deliver value to our customers and support our long-term profitable growth strategy. I'll now turn the call over to Scott, who will discuss our financial results in more detail.