Simpson Manufacturing Company, Inc.

Greetings. Welcome to Simpson Manufacturing Company's first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A brief 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 Kim Orlando, Investor Relations. Thank you. You may begin.

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's first quarter 2026 earnings conference call. Any statements made on this call that are not statements of historical fact are forward-looking statements. Such statements are based on certain estimates and expectations and are subject to a number of risks and uncertainties. Actual future results may vary materially from those expressed or implied by the forward-looking statements. we encourage you to read the risks described in the company's public filings and reports, which are available on the SEC's or the company's corporate website. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that we make here today, whether as a result of new information, future events, or otherwise. On this call, we will also refer to non-GAAP measures, such as adjusted EBITDA, which is reconciled to the most comparable GAAP measure of net income in the company's earnings press release. Please note that the earnings press release was issued today at approximately 4.15 p.m. Eastern Time. The earnings press release is available on the Investor Relations page of the company's website at ir.simpsonmfg.com. Today's call is being webcast, and a replay will also be available on the Investor Relations page of the company's website. Now, I would like to turn the conference over to Mike Oloski, Simpson's President and Chief Executive Officer.

Thanks, Kim. Good afternoon, everyone, and welcome to today's call. With me is Matt Dunn, our Chief Financial Officer. As we begin, I'd like to step back and briefly anchor our performance this quarter in the broader ambitions that guide how we build and grow Simpsons. Across the organization, we remain focused on being the partner of choice for our customers, an innovation leader in the markets we serve, and strengthening our values-based culture, all while delivering strong financial performance. We are making meaningful progress on these ambitions despite continued market challenges. A defining hallmark of our values-based culture is a depth of experience and long-term commitment across our organization. As we celebrate our 70th year as a company, that continuity matters. It reflects a culture that has allowed us to perform, adapt, and grow through many different construction cycles. Throughout the year, we'll be highlighting employees whose long-term dedication and impact reflect the values and culture that have defined Simpson for seven decades. I'd like to take a moment to recognize a few members of our team. First is Cheryl Wyatt, Plant Director for our Southeast Operations. She is celebrating 42 years with Simpson. Cheryl started her career in our customer service organization, gaining firsthand insight into our customers and how we support them. She advanced through several manufacturing and operation roles and today leads our highest volume and most cost effective manufacturing facility. I'd also like to recognize Cindy Chandler, Cindy started her career with Simpson in Texas and has spent 41 years with the company. She currently leads our business in the United Kingdom, where she made meaningful profitability improvements. Over her career, she has consistently led teams through complex change, from reshaping our US national accounts approach to launching operations in Chile, and most recently, successfully strengthening our customer relationships across the UK. Finally, I'd like to recognize our brothers Hanaro and John Sid from our Southwest operations. With 48 and 42 years of service respectively, Hanaro and John bring a combined 90 years of experience spanning production planning, leadership, and quoting. They are a great example of the deep operational knowledge and customer focus that underscore what makes us unique. These are just a few examples of the people behind the results, and we're grateful for the experience, leadership, and commitment they bring to work every day. Now turning to our financial results. We delivered net sales of $588 million of 9.1% from the prior year quarter. As outlined in our investor presentation, net sales growth was primarily driven by our 2025 pricing actions, which contributed approximately 6% and foreign exchange of approximately 3%. These gains were partially offset by an approximate 1% decline in volume as a result of softer housing start activity during the quarter. In North America, net sales were $461.9 million, up 9.8% from the prior year quarter, including a $31 million benefit from pricing actions. As we look across our North American business, performance remains mixed by market segment and varies by geography. consistent with broader construction trends. However, we continue to see areas of resilience and growth where our strategy, business model, and customer relationships position us well. The component manufacturer business delivered a strong quarter with volumes up double digits, driven primarily by new customer wins. This business continues to represent one of our most attractive long-term growth opportunities. Even amid broader residential housing softness, customer engagement remains solid, particularly around productivity enhancing solutions. Trust manufacturers remain focused on labor efficiency, throughput, and operational visibility, resulting in increased demand for our solutions across software, plates, equipment, and design services. We are making great progress in expanding and enhancing our offerings with value-added functionality. We are also improving our ability to respond quickly with new software features as customers' needs evolve. Adoption of our solutions continued advance, strengthening our role as a strategic partner to our component manufacturing customers. The OEM business delivered another strong quarter with double-digit volume growth. This segment remains an area of relative strength and strategic importance, supported by long-term trends toward prefabrication and off-site construction methods, including engineered wood systems and mass timber. While project timing can vary, customer engagement remains high, and our pipeline of opportunities continues to build. Our ability to pair innovative products with deep engineering expertise, testing capabilities, and field support remains a key differentiator. As customers pursue increasingly complex, performance-driven projects, we believe our OEM segment is well-positioned to grow faster than the broader construction market over time. Our residential business volume increased modestly year-over-year, supported by continued cross-selling of connectors, fasteners, and anchoring solutions. While builders are focused on cost control, cycle time reduction, and lowering inventory levels, we renewed builder agreements, launched new products, and increased our service offerings to support both our builders and our LBM partners. These initiatives, combined with high service level across the industry's broadest and deepest product line, have enabled us to perform relatively well in a market pressured by soft housing starts. In our commercial business, first quarter volumes were down slightly year over year, reflecting mixed construction activity by segment and geography. Demand for cold-formed steel and anchoring systems remains relatively resilient. Customers continue to value our technical expertise, project coordination, broad portfolio of code compliance solutions, and reliable product availability on large, complex projects, particularly where early engagement helps reduce risk and improve execution. While overall activity remains uneven, our differentiated capabilities position us well for continued share gains. Our national retail business experienced low single-digit decline in shipments, while point-of-sale volumes declined in the mid-single digits versus the prior year. The retail environment remains competitive and reflective of broader housing and repair and renovation trends, with customers remaining value-focused and selective in discretionary spending. Our teams remain focused on discipline execution, strong in-store support, and close collaboration with retail partners to optimize merchandising. We continue to make progress through bay optimization initiatives, targeted product innovation, and the expansion of decorative hardware via our outdoor accents offerings. While near-term volumes remain pressured, our emphasis on service, reliability, and in-market execution continues to strengthen retail relationships and support long-term growth opportunities. In summary, while near-term market conditions remain difficult, our diversified portfolio, strong customer relationships, and focus on engineering and value-added solutions resulted in solid performance across the North American business. In Europe, first quarter net sales totaled $121 million, up 6.3% year-over-year, driven by foreign currency translation. On a local currency basis, net sales were down 5.4%, with a decline in volumes partly offset by price increases. The market has been off to a slow start this year, but we continue to expect flat to low single-digit market growth over the next couple of years. Even in this environment, we've had several meaningful customer wins, including multiple mass timber projects. We also made progress improving profitability in select countries and continue to optimize our footprint to support long-term performance. While our raw material positions remain strong, we are seeing input cost headwinds that have required us to pass through surcharges and price increases. Taken together, these dynamics reinforce our confidence and our ability to continue improving profitability in Europe. Our consolidated gross margin declined 130 basis points year-over-year to 45.2%, driven by higher material, factory, tooling, and labor costs as a percentage of net sales, including startup costs from the ongoing ramp of our Gallatin facility that opened late last year. Our 2025 price increases, which we now expect will contribute approximately $130 million in annualized net sales, helped offset these costs, including those attributable to tariffs. Gross margin was also negatively affected by product mix, partially offset by our productivity initiatives. Our operating margin was 19.5%, up 50 basis points year-over-year, which included one-time costs of $2.3 million related to our strategic cost savings initiatives. Adjusted EBITDA total $139.4 million, a 14.1% increase year-over-year. As outlined in our last call, our financial ambitions remain, one, driving above market volume growth relative to U.S. housing starts, two, maintaining an operating income margin at or above 20%, and three, consistently driving EPS growth ahead of net sales growth. In summary, our first quarter results reflect disciplined pricing and cost management reinforced by strong execution and an unwavering focus on supporting our customers. As we look ahead, we expect conditions in both the U.S. and Europe to remain challenging, and we do not anticipate sustaining the same level of revenue growth through the remainder of the year. As for our outlook on the markets, we now believe 2026 housing starts in the United States will be down low single digits compared to 2025. And in Europe, we expect flat to modest growth in the market for 2026. Looking ahead, our culture, customer focus, innovation, and financial discipline position us well to execute and maintain a strong competitive position. With that, I'd like to turn the call over to Matt, who will discuss our financial results and outlook in greater detail.