speaker
Operator
Conference Operator

Good day and welcome to the Doman Building Materials Group Ltd. Second Quarter 2026 Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal 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 1 on your touchtone phone. To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Ali Mahdavi. Please go ahead.

speaker
Ali Mahdavi
Vice President, Investor Relations

Good morning, everyone, and thank you for joining us for Doman Building Materials Second Quarter 2026 Financial Results Conference Call. Joining us on today's call are the company's Chairman and Chief Executive Officer, Amar Doman, and Chief Financial Officer, Darren Guast. If you've not seen the news release which was issued after the close of market yesterday, it is available on the company's website as well as on CDAR along with our MD&A and financial statements. I would also like to remind you that a replay of this call will be accessible until midnight on August 20th. Following the presentation of the second quarter results, we will conduct a Q&A session for analysts only. Instructions will be provided at that time for you to join the queue for questions. Before we begin, we are required to provide the following statements regarding forward-looking information which is made on behalf of Doman Building Materials Group Ltd. and all of its representatives on this call. Remarks and answers to your questions today may contain forward-looking information about future events or the company's future performance. This information is subject to risks and uncertainties that may cause actual events or results to defer material rates. Any information regarding forward-looking statements is made after the debate is solved. The company does not undertake to update on any forward-looking statements. Please read the forward-looking statements and risk factors in the MD&A as these outline the material factors which could cause or would cause actual results to differ. The company will not provide guidance regarding future earnings during today's call. The management does not anticipate providing guidance in future quarterly or interim communications with investors. I'll now turn the call over to Amar.

speaker
Amar Doman
Chairman and Chief Executive Officer

Thanks, Ali. Good morning, everyone. We appreciate you taking the time to be with us as we review Doman's second quarter of 2026 financial results and discuss the current market environment. Overall, our second quarter performance demonstrates the resilience of our business model and the strength of our diversified product offering. Thank you for joining us. Construction materials continue to represent the largest component of our business, accounting for approximately 84% of sales, with specialty and allied products contributing 13% and other sources making up the balance. Our ability to deliver record revenues while maintaining disciplined pricing and customer service reflects the effectiveness of our distribution network, the breadth of our product portfolio, and the long-standing relationships we have built with customers across North America. Close margin dollars increased modestly to $146 million, while our close margin percentage remained stable at 16.1%. Maintained margin in today's environment speaks to the disciplined approach our teams continue to take in managing inventory, procurement, and pricing across the dynamic market. Adjusted EVDA for the quarter was just under $79 million, broadly consistent with the prior year's quarter, despite continued market volatility. While EVDA was slightly below last year's level, we were pleased to generate net earnings $31.2 million, an improvement over the $27.7 million reported in the second quarter of 25. Looking at the first six months of the year, revenues totaled $1.67 billion, with adjusted EVDA of $147 million. Close margin percentage improved slightly to 16.5%, and net earnings increased to $55.1 million compared to $51.2 million in the same period last year. These results demonstrate our ability to generate consistent profitability while navigating a market that remains far from uniform. As always, our priorities remain unchanged. We continue to focus on disciplined execution, operational efficiency, prudent working capital management, and providing exceptional service to our customers. These fundamentals have enabled us to perform consistently across different market cycles and position the company to capitalize on opportunities as demand improves. Our balance sheet and cash generation continues to support our capital allocation strategy, including returning capital to shareholders. Consistent with that commitment, we declared our quarterly dividend at $0.14 per share, reflecting our confidence in the long-term strength of the business. Looking ahead, while macroeconomic uncertainty remains, we believe Doman is well-positioned. Our diversified product mix, broad geographic footprint, experience management team, and disciplined operating model provide a strong foundation as market conditions continue to evolve. In closing, I'd like to thank our employees for their continued dedication and commitment, our customers and supplier partners for their ongoing trust, and our shareholders for their continued support. With that, I'm going to turn the call over to Darren, our CFO, to review the financial results in more detail before we open the lineup for analyst questions. Thanks. Darren?

Disclaimer

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