Rogers Sugar Inc.

framework we put in place in 2024. The core idea is straightforward, consistent, sustainable, profitable growth. It deliberately aligned our focus toward disciplined execution, which means managing our cost base, running our refineries efficiently, and maintaining a proactive hedging program that protects our merchants from commodity and currency volatility. Sales volume is important, but our commercial approach strategy is It is underpinned by extracting value from our production facilities while meeting the needs of our customers. When you look at today's results, Rogers Refined is working exactly as intended. Now let me give you an update on our LEAP expansion project in eastern Canada. During the second quarter, we've continued to advance construction activities and the installation of new sugar refining equipment in the main expansion building at our Montreal refinery. We also continued the work related to the deployment of new logistics infrastructure, began the installation of utility-related assets, and completed the new 25 kilovolt electrical connection that will support the entire Montreal refinery in the future. Finally, we have advanced the development of our commissioning plan. This is an exciting time, and I'm pleased with the way our teams and contractors continue to work together to bring this project to life while still operating our Montreal refinery without interruption. And let me point out that the Rogers Refined Framework for sustainable operations has underpinned our work plan the whole way through. That means a focus on safety for all of our people and assets. It means planning and testing every step of the way. We are using this time to train our workforce on all aspects of the new equipment and working with our suppliers and business partners to prepare to bring the new capacity into service. In fact, in less than four weeks, we plan to begin melting raw sugar using some of the recently installed equipment of the LEAP project. This is one of the first steps as we move to our commissioning stage of the project. Our targeted start-up date for the first half of 2027 is unchanged, as is our cost event of $280 to $300 million. Having this production in our Montreal location is a vital strategic advantage. We are located near vital port and rail infrastructure, and more importantly, in proximity to where our customers are locating their production facilities. We continue to be confident that this capacity growth positions us to serve the customers on a timely, efficient basis over the long term. Now I'll hand the call over to JS for a financial review.

Thank you, Mike, and good afternoon, everyone.

If you are following along, we are on slide nine. I will walk through the key financial results for the second quarter and the first six months of fiscal 2026 and then provide some additional context for the remainder of 2026. Adjusted net earnings for the second quarter were $19 million or $0.14 per share compared to $16 million or $0.13 per share in the same period last year. For the first six months, adjusted net earnings were $43 million or $0.34 per share. This represents an increase of 8 million, or 22%, compared with the first half of fiscal 2025. The improvement in adjusted EBITDA of 10% in the second quarter and 15% in the first half of 2026 were both largely driven by stronger performance in our sugar segment, where healthy and stable sales margins also benefited from some non-recurring and timing-related items. Revenues were $281 million compared with $338 million in the same quarter last year. For the first half of 2026, revenues came in at $579 million, roughly 14% below last year. The largest contributor was the decrease in the raw number 11 prices, which adds marginal impact on our overall profitability as we mitigate commodity price risk variation through our rigorous hedging program. The decrease was also partially due to the reduction in volume sold, as Mike mentioned earlier, reduction mainly attributable to lower margin export sales. Our free cash flow for the trading 12 months came in at about $93 million, an increase of 11% over the same period last year. That improvement was driven by higher adjusted EBITDA and lower capital expenditures in our ongoing operations, excluding the LEAP projects. Free cash flow is how we contribute to the financing of LEAP, service our debt, and fund our dividends. The trend is healthy and moving in the right direction. As I'm discussing our financial results, I would like to point out that our operations and related costs have not been materially impacted thus far by the current situation in the Middle East. Our proactive edging strategy was successful in mitigating the potential impact on energy costs raw number 11 price variation and transportation and logistic cost increases going forward we will continue to be proactive and prudent in our approach to manage the risk related to this evolving situation i am now turning to the individual business segments starting with our sugar segment which drives about 85 percent of our profitability overall the sugar segment delivered strong results in the second quarter Volume was down, but the business delivered improved adjusted EBITDA in the quarter compared to the same period last year. Trigger adjusted EBITDA was $33 million for the second quarter, an increase of $6 million compared to the same period last year. Let me walk through the moving parts. Adjusted gross margin increased by $8.5 million in the second quarter compared to the same period last year. The increase was due to a higher margin earned on refining activities of 6.5 million associated mainly with the mix of products sold during the quarter. Non-recurring adjustment recorded in the second quarter of 2025 for 6 million. Lower procurement costs for raw sugar impacting positively the inventory position at the end of the quarter for 3 million and lower costs in the current quarter for 1.5 million for maintenance. These variances were partially offset by an unfavorable variance on volume sold of 23,500 metric tons, valued at 8.7 million, and largely in the lower margin category of export sales. On a per unit basis, adjusted gross margin was $268 per metric ton in the quarter, compared to $194 per metric ton in the second quarter last year, an increase of $74 per metric ton. This improvement reflects a favorable mix of products sold, lower raw sugar procurement costs, and lower refining costs. In addition, the second quarter performance last year was affected by some higher maintenance costs in our Montreal refinery that were non-recurring in nature. For the first six months of 2026, adjusted gross margin at $100 million was $17.5 million higher than last year, of which almost $11 million should be considered non-recurring or timing related. The remaining increase was attributable mainly to improved pricing and favorable inventory valuation variance. The positive variance was partially offset by lower sales volume of 44,500 metric tons, largely in the lower margin category of export sales. Finally, our administration and selling expenses were higher by $4 million, driven primarily by cash settled share-based compensation, which was higher in the second quarter of 2026 due to an increase in our share price, along with market-based increases in compensation and employees' benefits. Now moving to our maple segment. For the second quarter of 2026, the maple segment delivered results aligned with our expectations. also lower than the same period last year. The reduction of 2 million in adjusted EBITDA compared with last year relates primarily to mix of products sold impacting production costs, including punctual favorable timing variances benefiting the second quarter of 2025. Adjusted growth margin percentage was 10.7% compared to 13.2% in the same quarter last year, driven by those same factors of production costs and mix. For the first six months of 2026, adjusted EBITDA of the maple segment was also aligned with our expectations, despite being lower than last year by 2 million. The unfavorable variance for the first six months was directly related to the factors impacting the second quarter discussed previously. Adjusted gross margin percentage for the first six months of 2026 was 10.6%, compared to 12.3% in the same period last year, driven by those same factors of production costs and mix. As mentioned previously, the results of our maple segment have been strong so far this year and aligned with our expectations. As Mike will discuss later, we anticipate overall strong results for the maple segment in 2026. which results in the second half of the year closely aligned with the performance seen in the first six months, reflecting our efforts at optimizing our production assets, stabilizing our sourcing strategy, and securing a reliable supply of syrup for our customers. Turning to our balance sheet, in January, we issued $57.5 million of ninth series convertible unsecured debentures, maturing in January of 2033. The net proceeds were used to reduce the balance on our revolving credit facility, further strengthening our liquidity position. This issue completes our refinancing program that began with the issue of the H-series of ventures in 2025. We maintain a prudent and diversified funding platform of convertible debt, equity, internally generated cash flow, and access to credit facilities. This strong financial position gives us the flexibility to complete the LEAP project and execute on our strategic priorities of investing in our businesses and maintaining a consistent distribution to our shareholders. On that note, our Board of Directors declared a dividend of $0.09 per share to be paid in the third quarter of fiscal 2026. We have paid a quarterly dividend to our shareholders without interruption for over 16 years through commodity cycle, the global pandemic, and now a period of significant trade uncertainty. That consistency is something we are proud of and committed to maintaining. With that, I will turn the call back over to Mike to provide a summary and outlook for 2026.