Core Insights - The company reported record quarterly results for revenue, adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share, with a revenue growth of 22% driven primarily by recent acquisitions [4][5][33] - The acquisition of Mars Parts, valued at $650 million, is expected to close soon and will enhance the company's HVACR product offerings, contributing to future growth [2][26][34] - Despite facing headwinds in the residential HVACR market, the company maintained a resilient balance sheet and continued to pursue growth opportunities through strategic acquisitions [3][25][35] Financial Performance - The company achieved record revenue of $277 million for the fiscal second quarter of 2026, reflecting a 22% increase compared to the previous year, primarily due to inorganic growth from acquisitions [5][6] - Adjusted EBITDA for the fiscal second quarter increased by $12 million to a record $73 million, representing a 20% growth year-over-year [7][10] - Adjusted earnings per diluted share rose to $2.96, a 15.2% increase from the same quarter last year [5][10] Acquisition Strategy - The company has successfully executed two synergistic acquisitions in the past twelve months, contributing significantly to revenue growth [3][11] - The pending acquisition of Mars Parts is anticipated to further enhance the company's product offerings and customer value proposition in the HVACR market [26][34] - The company plans to fund the Mars Parts acquisition through a combination of a syndicated term loan and borrowings from its revolving credit facility [26][35] Market Conditions - The company experienced a 5.6% reduction in consolidated organic revenue, primarily due to market disruptions in the residential HVACR sector [5][11] - The organic revenue decline was attributed to a shift in consumer behavior towards repair rather than replacement of HVAC units, influenced by higher costs and new refrigerant standards [11][12] - The company noted destocking trends among customers, which impacted order volumes but did not result in a loss of market share [54][55] Future Outlook - The company expects to maintain mid to high single-digit organic growth rates through its Contractor Solutions segment, despite current market volatility [14][46] - The integration of recent acquisitions is projected to yield significant synergies, with expectations of reaching a 30% EBITDA margin for Mars Parts within a year post-acquisition [43][64] - The company remains committed to a strong balance sheet and capital allocation strategy, including share repurchases and continued investment in growth initiatives [25][73]