Toromont Industries Ltd.

Good morning. Today is Friday, October 31st, 2025. Welcome to the Torremont Industries Limited Third Quarter 2025 Results Conference Call. Please be advised that this call is being recorded and all lines have been placed on mute to prevent any background noise. Your host for today will be Mr. John Doolittle, Executive Vice President and Chief Financial Officer. Please go ahead, Mr. Doolittle.

Okay, thank you, Joelle. Good morning, everyone. Thank you for joining us today to discuss Torremont's results for the third quarter of 2025. Also on the call with me this morning is Mike McMillan, President and Chief Executive Officer. Mike and I will be referring to the presentation that is available on our website. And to start, I'd like to refer our listeners to slide two, which contains our advisory regarding forward-looking information and statements. After our prepared remarks, we'll be more than happy to answer questions, so let's get started and move to slide three, and I'll pass it over to you, Mike.

Great. Thanks very much, John. Good morning, everyone, and thanks for joining us. Our team delivered solid results in the third quarter, executing effectively despite persistent macroeconomic and trade challenges. We remain focused on long-term success, continuing to invest in our people and capabilities to support our customers and drive sustainable growth. Net income rose aided by a property sale, while underlying earnings reflected growth-related investments, lower net interest income, and short-term non-cash costs from the AVL acquisition. The equipment group executed well with solid activity in rentals, product support, and used equipment deliveries in construction and mining. However, activity levels still reflect the economic environment, which continues to impact end customer demand. As expected, mining deliveries were lower due to the segment's inherent variability. Revenue declined as revenue from the acquired business along with higher rental and product support revenue was more than offset by lower new equipment sales, which was as expected in the mining segment. Rental revenue rose, driven by a larger fleet. Product support revenue increased due to higher parts and service volumes. Operating income in the third quarter included a pre-tax gain of $13.7 million on the sale of a property. Excluding this gain, operating income was 1% lower for the quarter, given a strong comparator which reflected market dynamics in play at that time, along with the higher expenses. Simcoe posted higher revenue and earnings, driven by good demand and disciplined execution in both Canada and the U.S., Growth in package revenue was supported by a strong order backlog, while product support activity continued to improve, aided by our growing technician workforce. Operating income increased on higher revenue and solid execution, partially offset by lower gross margins and an unfavorable sales mix, which is lower product support revenue to total revenue and higher expenses to support activity and growth in the segment. We continue to work closely with our new partners in AVL, focusing on this promising market. Production in Hamilton has ramped up since the acquisition, supporting our healthy order backlog and demand. Hiring and development of production capacity continues. As noted in Q2, we acquired a facility in Charlotte, North Carolina to expand capacity and to better serve the eastern U.S. market. This facility commenced the first phase of production during the third quarter of 2025 and will ramp up throughout 2026. While the business is performing well, the bottom line contribution on a year-to-date basis reduced EPS by approximately two cents per share related to various non-cash related purchase price accounting items. Of course, more detail is available on our financial statements and disclosures. Let's turn to slide four, our key financial highlights. Investment in non-cash working capital decreased 13% year-over-year, largely on lower inventory levels, partially offset by higher accounts receivable and accounts payable balances due to equipment delivery timing. Accounts receivable increased, mainly reflecting the addition of receivables from the recently acquired AVL operation. DSO increased by one day to 48 days. Our team continues to manage receivables aging and customer credit metrics effectively. Inventory levels declined, partly due to executed deliveries against the order backlog, inventory management initiatives, as well as lower work and process at Simcoe, reflecting project and service timing. We ended the quarter with ample liquidity, including $1 billion in cash, an additional $453 million available under existing credit facilities. During the quarter, we also completed the redemption of our 2025 debentures at PAR, as previously announced. Our net debt to total capitalization ratio was negative 9%. Overall, our balance sheet remains well positioned to support operations and navigate evolving economic and business conditions. We will continue to apply operational and financial discipline as we support customer needs and evaluate future investment opportunities. Toramont targets a return on equity of 18% over the business cycle. Return on equity was slightly below this at 17.5%, reflecting slightly lower earnings and higher shareholders' equity. Return on capital employed was 23.3%, also lower year-over-year, reflecting our increased capital investment. Finally, as announced yesterday, the Board of Directors approved a regular quarterly dividend of $0.52 per share, payable on January 5, 2026, to shareholders of record at the close of business on December 5, 2025. John, back over to you for more detailed commentary on the results.