ADENTRA Inc.

Good morning. Welcome to the Adentra fourth quarter and full year 2025 results conference call. All lines have been placed on mute to prevent background noise. After the speaker's remarks, there will be a question and answer session. With me on the call today are Rob Brown, Adentra's President and Chief Executive Officer, and Fez Karmali, Vice President and Chief Financial Officer. Adentra's earnings relief, Financial statements in NVME for the year ended December 31, 2025 are available on the investor section of our website and on CDAR+. Before we begin, I'd like to remind listeners that management's comments may include forward-looking statements. Actual results could differ materially due to risks and uncertainties outlined in our filings. All dollar figures mentioned today are in U.S. dollars unless otherwise stated. I will now turn the call over to Rob Brown. Please go ahead.

Thanks, operator, and good morning, everyone. I'll start with a few comments on our performance in 2025 and the progress we made across our strategic priorities. Fez will then walk through the fourth quarter financial results in more detail, and I'll return at the end to discuss current trends and our outlook. Looking back on 2025, I'm pleased with how our team executed in what remained a relatively muted construction environment. Residential activity across North America continued to face headwinds, particularly from affordability challenges tied to mortgage rates and limited housing inventory. Against that backdrop, our focus remained firmly on the things we can control, operating excellence, margin discipline, and strong cash generation. That approach once again allowed Adentra to deliver steady results. For the year, sales increased to $2.25 billion, representing 3% growth compared to 2024, while adjusted EBITDA rose to $187.9 million. Pricing conditions also stabilized during the year after a period of deflation across several product categories, removing headwind, which helped support our performance. Importantly, the business continued to generate strong cash flow. We produced over $160 million in operating cash flow, which allowed us to strengthen our balance sheet while continuing to return capital to shareholders. During the year, we brought back 3.5% of our outstanding shares, while returning $29.5 million to shareholders through dividends and share repurchases. At the same time, we continued to reduce leverage, finishing the year at 2.2 times net debt to EBITDA, which positions us well as we look forward toward future growth opportunities. The consistency of these results reflects the strength of a Dentures platform. Today, we operate 81 distribution facilities across North America, connecting more than 2,500 suppliers with over 60,000 customers. We're a vital part of the supply chain, bridging the gap between manufacturers who produce large volumes of specific products and customers who require credit, small volumes of many products, and often delivered on a just-in-time basis. Our model builds on this core function in the supply chain by combining strong local operating brands with centralized capabilities that provide purchasing power, shared services, and digital infrastructure. This creates a sustainable competitive advantage. During 2025, we continued to build on our platform in several important ways. First, supply chain excellence remained a focus. Our sourcing network now spans more than 30 countries. giving us flexibility to manage trade dynamics while continuing to provide customers with a superior suite of products. Supply chain excellence includes stringent compliance, the success of which was underscored by our recovery of 25.5 million of trade duties, including interest, following the successful outcome of the US Department of Commerce trade keys related to hardwood plywood products from Vietnam. Second, we continue to invest in digital capabilities across the organization. Our digital sales platform is increasingly embedded in our operating model, providing customers with 24-hour access to inventory and automated quoting tools while supporting more than 20% of our annual sales. And third, acquisition-driven growth remains a core part of our long-term strategy. During 2025, we continued integrating wolf distributing, which we acquired in 2024. The business contributed $159 million in revenue during the year, expanded our presence in the U.S. Midwest, and strengthened our exposure to specialty outdoor living products and the ProDealer customer channel. Overall, the progress we made during the year further reinforced the competitive advantages of our platform and the strength of our operating model. With that overview, I'll now turn the call over to Fez to review the financial results in more detail. Fez?

Thanks, Rob, and good morning, everyone. As a reminder, all dollar figures mentioned today are in U.S. dollars, unless otherwise indicated. For the three months ended December 31st, 2025, Demtra generated sales of 517.5 million, a decrease of 2.5% compared to Q4 2024. The decline was primarily attributable to lower volumes, partially offset by improved product pricing. In the U.S., fourth quarter sales were 477.9 million, down 2.4% year-over-year. reflecting a 4.7% decline in volumes that was partially offset by a 2.2% increase in product prices. In Canada, sales totaled Canadian $55.2 million, representing a 3.3% decrease year-over-year, also primarily driven by lower volumes with modest pricing improvements. Despite the softer demand environments, our margin profile remains strong. Fourth quarter gross margin was $114.4 million, representing 22.1% of sales, an improvement from 21.7% in the prior year quarter. This reflects the continued effectiveness of our procurement, discipline, and pricing strategy. Operating expenses totaled $94.7 million, essentially flat compared to the prior year. The slight increase reflects higher costs associated with leased premises, which were largely offset by a favorable adjustment related to contingent consideration from the bulk acquisition. Adjusted EBITDA for the quarter was $43.7 million, up 3.7% year-over-year, demonstrating the resilience of our operating model, even in softer market environments. On a reported basis, net income was $32.1 million, or $1.32 per share, compared to 8.4 million in the prior year quarter. The increase was primarily driven by lower finance expense relating primarily to foreign exchange gains in the quarter and the recognition of deferred tax assets related to an internal restructuring completed during the fourth quarter. On an adjusted basis, adjusted EPS for the quarter was 67 cents, an increase of 16 cents compared to 51 cents in Q4 2024. Turning to cash flow, we generated 41.9 million of operating cash flow before changes in working capital, and working capital reductions contributed an additional 57.8 million, bringing total operating cash flow for the quarter to 99.6 million. The working capital release reflects our seasonal inventory normalization in the second half of the year, reflecting the slower winter construction period. From a balance sheet perspective, we ended the year with a net debt to EBITDA leverage ratio of 2.2 times, well within our target range and providing significant financial flexibility heading into 2026. Our capital allocation priorities remain unchanged. We continue to focus on maintaining a strong balance sheet, investing in organic growth initiatives, pursuing acquisitions, and returning capital to shareholders through dividends and opportunistic share with purchases. With that, I'll turn the call back over to Rob. Rob?