AirBoss of America Corp.

Thank you for standing by. This is the conference operator. Welcome to the Air Boss of America Second Quarter 2025 Conference Call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference, you may signal a conference operator by pressing star, then 0. I would now like to turn the conference over to Gren Shock, Chairman and Co-CEO. Please go ahead.

Thank you, operator. Good morning, everyone. Thank you for joining us for the Air Boss Second Quarter results conference call. I'm Gren Shock, and I'm the Chairman and Co-CEO of Air Boss. With me today are Chris Misakakis, our President and Co-CEO, Frank Antilli, our CFO, and Chris Figel, EVP and General Counsel. Our agenda today will start with a review of the operational highlights for the quarter, followed by discussion of our financial results before we open the conference lines to questions. Before we begin, I'd like to remind listeners that our remarks today contain forward-looking statements, including our estimates of future developments. We invite listeners to review risk factors related to our business and our annual reform and our MD&A, both of which are available on CDAR and on our corporate website. Also, we will discuss certain non-GAAP measures, including EBITDA. Reconciliation of these measures are available in our MD&A. Finally, please note there are reporting currencies in U.S. dollars. References today will be in U.S. dollars unless we indicate otherwise. With that, I'll turn the call over to Chris for our operational review.

Thank you, Gran. Good morning, everyone. Air Boss experienced positive traction in Q2 2025 compared to Q2 2024, mainly driven by significant increases in Air Boss manufactured products, defense products, business, partially offset by reduced volumes of Air Boss rubber solutions. Compared to Q2 2024, consolidated Q2 2025 results have shown a .4% increase in sales, a gross profit increase of $7.7 million, and an adjusted EBITDA improvement of just over $4 million. Despite the strong -to-date results, Air Boss has been forced to continue to navigate obstacles related to economic and geopolitical challenges, including market softness, tariffs, inflationary pressure, and the corresponding monetary policy, and the potential for further escalating and retaliatory tariffs. While maintaining focus on risk mitigation plans, including managing costs and targeting continuous improvement initiatives, the sheer uncertainty and volatility in the industrial markets we serve has been creating significant upheaval for industrial output in the U.S. On average, industrial production of durable goods in the U.S. in May and June was the lowest it has been in the last five years, while construction spending has been on a steady decline over the last 12 months. Many of the individual markets that we serve are being affected by these factors, which have in turn created significant short-term pressure on the custom compounding market, as is evident at Air Boss Rubber Solutions, as well as many of our competitors. The company expects further uncertainty to persist in the coming quarters, with volume recovery difficult to anticipate, as any recovery could be impacted by the imposition of further tariffs, duties, or other restrictions on trade. The company continues to evaluate and execute on contingency plans, and is carefully executing on all available options to deal with these challenges, including rebalancing production and sales activities between the U.S. and Canada, in order to minimize the impacts of the company and its customers. Despite the increased economic uncertainty, disruption of trade flows, and increased costs and strains on supply chains resulting from these challenges, opportunities may arise for the company to leverage existing U.S. capacity to grow revenues related to the near-shoring of overseas imports. As an example, the molding operations of Air Boss Manufacture Products has quoted more opportunities in the first six months of 2025 than we had quoted all of 2024. Although difficult to predict how many of those opportunities will turn into new contracts, it is certainly a validation of the Made in America strategy long considered critical to our molding operations in the U.S. As mentioned earlier, ARS had a pronounced softness in Q2 2025 compared to Q2 2024. The segment experienced both revenue contraction and reduced margins, driven by overall softness in most customer sectors, primarily caused by weaker demand and the shifting tariff situation. ARS remains committed to executing on a strategy to deliver strong results by focusing on specialized products, expanded production of a broader array of compounds, and enhanced flexibility in attracting and launching new business. As a segment, ARS continued to invest in research and development to support enhanced collaboration with customers. As an example, the new silicone product line that was launched in November 2024 has facilitated the complete insourcing of all silicone compound requirements within Air Boss, while also launching the first of what should be many new third-party customers utilizing Air Boss silicone materials. In terms of AMP, we experienced notable improvement in Q2 2025 compared to Q2 2024, primarily due to the Defense Products business continuing deliveries on previously announced contracts and additional overhead reductions carried out earlier in the prior year to help support profitable growth. Management at AMP also maintained its focus on operational improvements during Q2 2025 and continued to collaborate with key customers with a goal of leveraging opportunities aligned with its growth initiatives. The Defense Products business, despite its strong backlog this year, continues to collaborate closely with its suppliers and government partners to mitigate the previously announced delays to its bandolier program and expects revenue to shift to the right as challenges related to the supply chain get rectified. Further updates will be provided as more information becomes available. The rubber molded products operations were impacted by continued volume softness related to the original equipment manufacturers adjusting production schedules due to the evolving impact of tariffs in the automotive sector. This business continued its focus on managing costs and a commitment to drive efficiencies and -in-class automation, as well as diversification of its product lines into adjacent non-automotive sectors. Despite some of the supply chain upheaval precipitated by tariffs and counter tariffs, the long-term priorities of the company have remained the same. We continue to focus on our core competencies to drive growth during these challenging times. With a strong defense backlog, significant U.S. available capacity to benefit from reshoring, and the continuing market strength over rubber solutions technology, we expect to navigate these near-term challenges and position ourselves well for the future. Airbus will continue to focus on our long-term priorities while investing in core areas of the business to expand a solid foundation that will support long-term growth. I will now pass the call over to Frank for the financial review. Frank?