Trex Company, Inc.

Good day and welcome to the Trex Company, Inc. First Quarter 2026 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please send to a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To try a question, please press star then two. Please note, this event is being recorded. I'll now turn the call over to Lee Coker, Vice President for Corporate Development and Investor Relations. Please go ahead.

Thank you for joining us today, and good morning, everyone. With us on the call are Adam Zamboniti, President and Chief Executive Officer, and Prith Gandhi, Senior Vice President and Chief Financial Officer. The company issued a press release earlier this morning containing financial results for the first quarter of 2026. This release is available on the company's website. This conference call is also being webcast and will be available on the investor relations page of the company's website for 30 days. Before we begin, let me remind everyone that statements on this call regarding the company's expected future performance and conditions constitute forward-looking statements within the meaning of federal securities laws. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For discussion on such risks and uncertainties, please see our most recent Form 10-K and Form 10-Q, as well as our 1933 and other 1934 Act filings with the SEC. Additionally, non-GAAP financial measures will be referenced in this call. A reconciliation of these measures to the comparable GAAP financial measure can be found in our earnings press release at TREX.com. The company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. With that introduction, I will turn the call over to Tad.

Thank you, Lee, and good morning, everyone. Before turning to the quarter, I want to acknowledge my first earnings call as CEO of Trex. Having been with the company for over 20 years, most recently as COO, I approach this role focused on continuity, execution, and accelerating the strategy already in place. Our five-year plan is clear, our priorities are set, and our focus remains on discipline growth, operational excellence, and delivering long-term value for the shareholders. As part of that work, our leadership team has sharpened focus, tracks vision, mission, and values to ensure that we remain aligned as we scale. This evolution, not a reset, and it reflects both where Trex is today and where we are going. Trex's vision is to shape the future of outdoor living through purposeful innovation that enriches people's lives. To support our ambitious growth and galvanize the organization, we recently codified five long-term strategic priorities. These priorities are designed to sharpen our focus and better leverage our strengths across marketing, innovation, and execution. Given their importance to our future growth, profitability, and long-term shareholder value creation, I'd like to touch on each priority in detail. Our five long-term strategic priorities are as follows. First, it is to create an unbreakable bond with our end users, meaning the homeowner and pro contractors. Our goal is to deepen the track's brand preference and loyalty through superior marketing, product experience, and services. While Trex remains the undisputed brand leader in the wood alternative market, we are committed to further strengthening that position through a continued investment. We have already increased our investment in the branding and the marketing, highlighted by the launch of the next phase of our consumer and pro-focus campaign centered around performance engineered for your life outdoors brand platforms. This multi-channel media campaign will sharpen the focus on wood-to-composite conversion while also emphasizing many of our key differentiators of TREX products, including our technical innovations like sun-comfortable heat-mitigating technology, as well as our marine and fire-rated solutions. I'm excited about the momentum that this campaign has produced and expect TREX to become increasingly visible with both homeowner and pro-contractors moving forward. Meanwhile, we are investing in technology to improve our proactive lead generation among our programs to better support our valued pro-contractors. This last quarter, we experienced significant double-digit increase in lead generation, pointing to the early success of this investment. We are confident that these actions will help drive Trex's future growth. Next is our continued focus on high-performance innovation. As I mentioned on the last quarter's call, driving high-performance innovation remains a central pillar of my leadership mandate. Shortly after joining the company, I led the development of the launch of the game-changing technology that redefined the standards in the decking category, Trex Transcend decking. Transcend was the first cap composite decking product that set a new standard of performance and aesthetics while serving as a catalyst to drive market share expansion over the following decades. At its heart, Trex is the world leader in material science. We intend to sharpen our focus and leverage our tremendous development capabilities to invent and deliver a continuous stream of next-generation outdoor living solutions designed with what we believe is called separator technology. Trex makes the hardest innovation in the building products category imaginable. Our goal is to move forward simply competing with our industry and by introducing products with highly differentiated performance that effectively place us in a category of one. Building on the legacy of Transcend, our current pipeline focuses on category-defining performance. We are currently on track for a potential game-changing regional launch in 2027, followed by a more impactful national launch in 2028 through 2030. We are excited about our best-in-class products in our innovation pipeline and look forward to sharing more in the future. Our third priority is to optimize the channels for growth. Distribution remains a key component of the TREX business model, ensuring that our products are readily available with the pro contractors and homeowners. As a reminder, TREX already has the most comprehensive distribution network, with not only national coverage by two-step distributors, but also one of the very few brands in the world that has a meaningful presence at both national home centers. The distribution channel has seen Many changes over the last five years with significant consolidation with both distributors and dealers in the two-step channel. We have seen rapid expansion of the home center retailers into the pro-channel segment as we move beyond a purely on-shelf DIY focus. We expect the distribution landscape to continue evolving. Our goal remains clear. To maintain strong channel relationships of both the two-step channel and the home center retailers, so that our products reach both the homeowner and the pro-contractors across geographies. Our recent additional shelf space wins at the home center, along with expanded territories with two key distributors, are proof that TREX has a strong distribution network and demand for our comprehensive portfolio of products. And our recently redefined incentive and marketing programs have been well-received by our two-step partners as we convert business away from the competition. further strengthening these valued relationships. Our fourth priority is more of a specific target, namely lowering the cost of railing. Railing represents a material and rapidly growing part of our revenue mix, and with a large target of doubling our railing business in five years, its importance will only increase. Due to greater manufacturing complexity and a broader range of raw material components, the railing portfolio currently operates a lower margin than decking, presenting opportunities for operational and cost optimization. We see a clear path to improvement. We are applying the same continuous improvement initiatives and vertical integration strategies that successfully elevated our decking margins to our rapidly growing railing portfolio. And of course, as the product line continues to grow, we expect a natural margin expansion due to the economies of scale and greater utilization. Over time, we believe railing margins can approach those of the core decking products, contributing to an overall lift in the corporate margin. Our fifth and final priority, growth enablement, underpins all the others. This priority defines our approach in investing in our culture, technology, and talent to enable long-term profitable growth. We are strengthening our organization by building capabilities in the digital and commercial excellence and fostering an innovation-driven culture that empowers teams to move with speed and discipline. We have already enhanced our leadership team, particularly in finance, adding significant capabilities in data analytics and forecasting, creating a new internal pricing group to implement a more nuanced portfolio-level pricing strategy that balances share and margin while improving responsiveness. Over the remainder of the year, I plan to add key senior roles, including a newly created chief commercial officer who will integrate sales, marketing, and IT, which will enable technology, data, and analytics, and customer insights by providing sales and marketing the tools for commercial visibility that create revenue generation. Finally, we are aligning innovation and advanced manufacturing under a newly appointed Chief Operations Officer, Zach Lauer. To enable better coordination on commercializing initiatives in parallel, our digital transformation is directly linking consumer inspiration to contractor execution, providing our TrexPro network with highly qualified leads and accelerate the wood-to-composite conversion cycle while optimizing our pricing analytics. As you can see, we are not waiting for repair or model demand to recover. Instead, we are taking a proactive, disciplined action to accelerate growth, strengthen margins, and position TREX for sustained outperformance. We are confident that these strategic priorities provide a clear roadmap for TREX's long-term success. Our team is laser-focused on execution, and I look forward to updating you on the tangible progress we are making in these priorities. Turning to the quarter, we started the year with solid results, especially in light of the adverse weather conditions and continued uncertain economic environment, leading many consumers to defer large-scale discretionary repair and modeling projects. However, we are actively taking advantage of the current market environment to aggressively invest, ensuring that we capture a disproportionate share when the demand normalizes. The trends underpinning our industry's long-term growth runway, the ongoing conversion from wood to composite materials, demand for the low-maintenance outdoor living, and significant long-term repair and remodel tailwinds have not changed. With that context, I'll turn it over to Prith, who will walk you through the quarter in greater detail.