Simpson Manufacturing Company, Inc.

Greetings. Welcome to the Simpson Manufacturing Co. Incorporated Second 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 Kim Orlando with Investor Relations. Thank you. You may begin.

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's second quarter 2026 earnings conference call. Any statements made on this call that are not statements of historical facts 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. Accept 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.simsimmfg.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 Michael Olosky, 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. Before turning to the quarter, I'd like to briefly discuss our results in the context of the strategic priorities that continue to guide our decisions and shape the way we manage the business. Across the organization, we remain focused on deepening our position as a partner of choice for our customers, driving innovations in the markets we serve, and strengthening our values-based culture, all while continuing to deliver solid financial results. Despite ongoing market challenges, we are making solid progress advancing our strategic priorities. One of the defining strengths of our culture is the experience and long-term commitment of our people. As we mark our 70th anniversary, that continuity is especially meaningful. It speaks to a company that has evolved and performed through multiple cycles while staying grounded in a consistent set of values. Throughout the year, we'll continue recognizing employees whose careers reflect that legacy. I'd like to take a moment to highlight a few of them. First is Dean Pickerel, a project manager for Southeast Operations, celebrating 40 years with Simpson. Dean began his career as a fabrication operator at our McKinney, Texas manufacturing facility. and has held a variety of roles across manufacturing operations. Today, he is a trusted subject matter expert, supporting product launches, training programs and key operational initiatives. His deep experience and institutional knowledge continue to play an important role in ensuring consistency, quality and execution across our business. Next, I'd like to recognize Gwen Silva, an inside sales representative for our Northwest operations, celebrating 47 years of service. Gwen began her career in 1979 mailing catalogs and has spent nearly five decades serving our customers across inside sales and customer support. Her tenure reflects not only a deep understanding of our business and customers, but also the resilience, commitment, and adaptability that have remained essential as our company has evolved over time. Finally, I'd like to recognize Bill McGahan, a regional sales manager for our national retail market segment in the Northeast, celebrating 42 years with the company. Bill was the first employee hired when our Columbus facility opened and has served in a variety of sales and sales leadership roles throughout his career. He is known not only for his passion for our customers and our people, but also for the countless employees he has encouraged, mentored, and championed along the way. As he prepares for his retirement in October, we recognize the lasting impact he has had on our growth and his steadfast commitment to the values that continue to guide our company today. These are just a few examples of the many employees whose experience, leadership, and commitment continue to shape our performance, and we appreciate the contributions they make every day. Now turning to our financial results. We delivered net sales of $671.1 million, up 6.3% 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 5% of the increase. Sales mix and foreign exchange each provided an additional 1%. These gains were partially offset by an approximate 1% decline in volume resulting from a softer market. Over the last 12 months, our global volume declined by 1.6%, 100 basis points below the 0.6% decline in U.S. housing starts. Of note, we exited some business in 2025, which negatively impacted our global year-over-year volume comparisons by 30 basis points on a trailing 12-month basis and 70 basis points in Q2 2026. In North America, net sales were $522.3 million, up 6% from the prior year quarter, including an approximate $30 million benefit from pricing actions. Results across North America varied by market segment and region, consistent with the broader construction trends. We saw encouraging results in key strategic growth areas underscoring the strength of our business model, innovative solutions, and trusted customer partnerships. The component manufacturer business delivered a solid quarter with volumes of mid-single digits year over year. Growth was primarily driven by continued new customer wins and capturing a greater share of the total connector spend from existing customers. We secured meaningful conversions during the quarter with encouraging interest in new equipment. Customers continue to prioritize labor efficiency, Grouput, and Operational Visibility, underscoring the value of our integrated platform of software, plates, equipment, and design services. While activity remains uneven in certain markets and customers tie more closely to single-family starts remain cautious, adoption of our solutions continue to advance, further strengthening our position as a strategic partner to component manufacturers. The OEM business delivered another strong quarter with volumes up high single digits year-over-year. Growth was supported by continued momentum in material handling, anchoring solutions, engineered applications, and expanding customer relationships. We also continue to strengthen our mass timber opportunity pipeline through project specifications, project wins, and target investments in resources that support our long-term growth objectives. While mass timber project timing can vary, customer engagement remains high. Our ability to combine innovative products with deep engineering expertise Testing capabilities and field support remains a key differentiator as customers pursue increasingly complex, performance-driven projects. Residential business volumes were down modestly year-over-year reflecting continued softness in housing activity as a result of persistent affordability pressures. Despite these conditions, we saw areas of relative strength in multifamily, Fire Rebuild Activity, Selected Regional Markets, and New Product Adoption. Our teams continue to engage customers through builder and distributor training, job site events, product campaigns, and customer conversions, while increasing cross-selling across our portfolio of connectors, fasteners, anchoring solutions, and value-added services. Builders remain focused on cost control, cycle time reduction, and inventory management, and we are supporting them with high service levels in the industry's deepest portfolio of engineered solutions. Our national retail business delivered a slight increase in volume year over year. The retail environment remains competitive and continues to reflect selective consumer spending, inventory discipline, and mixed point of sale trends across the home center channel. Our teams remain focused on in-store execution, merchandising excellence, training, and close collaboration with our retail partners. During the quarter, we advanced several important initiatives, including bay optimization with creative display solutions, continued outdoor accents expansion, and a successful fastener merchandising pilot that is expected to expand later this year. While uneven demand remains a near-term headwind, our focus on service, reliability, and retail execution continues to strengthen our customer relationships and support future growth. In our commercial business, second quarter volumes were down modestly year over year, reflecting mixed construction activity across segments and geographies. We remain optimistic on our ability to capitalize on opportunities in data centers, education, retrofit work, cold form steel, quick frames, and anchoring applications. Through specification activity, takeoff services, project coordination, and cross-selling efforts, Our teams continue to help customers manage complexity, improve productivity, and execute large projects more effectively. While the broader environment remains uneven and customers remain cautious amid inflation and project timing uncertainty, our technical expertise, code compliance solutions, and field support provide a strong foundation for future growth. In Europe, second quarter net sales totaled $143.5 million, up 7.6% year-over-year, driven by an approximate 3% year-over-year increase in volumes, price increases, and foreign currency translation. On a local currency basis, net sales were up 4.9%. Customer engagement remains healthy, and we secured several meaningful wins during the quarter, including multiple mass timber projects. Our consolidated gross margin improved 100 basis points year-over-year to 47.4%, driven by our 2025 pricing increases, which contributed approximately $34 million in net sales in the quarter. This was partially offset by higher factory and overhead costs as a percentage of net sales, including approximately $1.5 million for 20 basis points of Q2 startup costs from the ongoing ramp-up of our Gallatin facility, which we opened late last year. While startup costs associated with a Gallatin ramp-up continued to impact gross margin in the second quarter, we saw improvement versus the impact in the first quarter. Our operating margin was 25.2%, up 300 basis points year over year, which included 100 basis point benefit from a $5.5 million eminent domain settlement, partially offset by one-time cost in Q2 2026 of a half a million dollars related to our strategic cost savings initiatives. adjusted EBIT at a total of $196.1 million, a 22.6% increase year over year. In summary, our second quarter results demonstrated disciplined pricing and effective cost management underpinned by solid execution and a clear commitment to supporting our customers. 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. As for our outlook on the markets, we continue to expect 2026 U.S. housing starts to be down low single digits compared to 2025. In Europe, we expect flat to modest market growth in 2026. As we look ahead, we remain confident in the long-term potential of our core growth drivers, and customer engagement with our value-added offerings remains strong. At the same time, mixed headwinds and rising steel costs are creating a more challenging backdrop, particularly as we move through the back half of 2026. As such, we do not expect to maintain the same rate of revenue growth and profitability in the second half of the year as we will have fully lapped the majority of the pricing actions we implemented last year. We continue to approach pricing with discipline and a long-term perspective. Given ongoing housing affordability concerns, customer response and competitive dynamics have varied across markets and channels. The market for steel remains volatile, with rising steel prices and increasing availability constraints. Maintaining dependable product supply and providing reliable service remain top priorities for Simpson. Our approach remains grounded in value-based pricing, supported by detailed product and market level evaluations that consider input costs, value, mix, margins, and long-term customer relationships. With that, I'd like to turn the call over to Matt, who will discuss our financial results and outlook in greater detail.