Frank Mitsch

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CEO & President Scott A. Richardson stated that volumes are significantly lower than historical norms, with Western Hemisphere acetyl demand likely at a 20-year low. Regarding guidance, he expressed confidence based on controllable actions already in motion and noted that operational improvements enhance flexibility and cost-to-serve, providing confidence in hitting cash flow targets.

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CEO & President Scott A. Richardson stated that volumes are significantly lower, with Western Hemisphere acetyl demand likely at a 20-year low. Despite low visibility, he expressed confidence in the Q3 guidance range due to the execution of controllable cost actions. He added that operational improvements, such as integrating legacy assets, enhance cost-to-serve and allow for a more responsive, make-to-order model, which supports performance even in a low-demand environment.

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CEO Scott A. Richardson stated that volumes are significantly lower than historical norms, with Western Hemisphere acetyl demand potentially at a 20-year low and H1 EM volumes down 5-6% year-over-year. Regarding the Q3 guidance, he expressed confidence based on controllable cost actions and increased operational flexibility from the M&M integration, which allows the company to respond more efficiently to demand changes.

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CEO Scott Richardson acknowledged that nylon is the most challenged area within their leading engineered materials franchise and has been the biggest driver of recent earnings decline. He stated that while Celanese has taken decisive actions on capacity and costs, the industry margin level is unsustainable. Richardson emphasized that Celanese can only control its own actions and will continue to partner with customers and drive down costs.

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CEO Scott Richardson explained that some improvement is already factored into late Q1, and the company is aggressively working on actions to increase the Q2 number beyond the initial outlook. CFO Chuck Kyrish detailed the drivers for higher 2025 free cash flow, noting that while an earnings guide hasn't been given, significant improvements will come from working capital being a source of cash (vs. a use in 2024), lower cash taxes, and a roughly $100 million reduction in CapEx.

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President & CEO Frank Bozich explained that early Q2 order cancellations erased an expected seasonal uptick due to trade uncertainty, and a recovery depends on macro triggers. He noted that battery and CASE binders are about 20% of Latex Binders volume with higher margins. The pricing pressure was attributed to weak Chinese paperboard demand post-tariffs, leading to aggressive competitor pricing, some of which Trinseo chose not to match.

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CEO Frank Bozich reiterated expectations for AmSty's 2025 EBITDA to be much closer to its historical average of ~$68 million. He attributed strong consumer electronics growth to sustainable, high-recycled-content solutions, noting it's 20% of APAC revenue. CFO David Stasse added that the overall APAC volume decline was driven by weakness in large-volume, lower-margin polystyrene applications, which overshadowed growth in higher-margin specialty areas.

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CFO David Stasse attributed the higher cash spend forecast to working capital outflow assumptions and increased cash taxes. CEO Frank Bozich explained that styrene pricing is largely a pass-through, limiting the P&L impact. Regarding AmSty, Bozich confirmed the delay into the second half of the year is a joint decision with their partner to await a better valuation environment.

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CEO Frank Bozich confirmed that the AmSty production outages are resolved and a full contribution is expected in Q4. He stated the joint sales process with CPChem began in Q3, with a signed transaction anticipated in the first half of 2025. CFO David Stasse added that the $115 million in sub notes due in September 2025 would be addressed with either cash on hand or a refinancing transaction, with a formal announcement pending.

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EVP Judd O’Connor confirmed share gains in both corn and soy, driven by strong product performance. CEO Chuck Magro noted that despite high production, global corn stocks-to-use ratios remain tight. He suggested the 2026 acreage mix is uncertain but could see slightly less corn and more soy, pending market conditions.

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CFO David Johnson explained that the strong 2024 cash flow included a ~$300 million tailwind from working capital, primarily from reducing high inventory levels carried into the year. The Q4 dynamic was driven by strong volumes and the deliberate clearing of high-cost seed inventory. For 2025, he expects working capital to be a slight headwind of around $100 million, which he characterized as a return to normal levels.

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EVP of the Seed Business Unit, Timothy Glenn, explained that the decline was not due to fundamental pricing pressure but rather the timing of settlements for customer replants. These normal-course-of-business costs were settled in the low-volume third quarter, making the percentage impact appear unusually large. He stressed it was a timing visibility issue, not a change in pricing strategy.

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EVP & CFO Steven Bender explained that customers in Brazil who use Westlake's caustic soda to produce goods for re-export can get the import tariff refunded. President & CEO Jean-Marc Gilson added that reliability improvements began around late April/early May after significant outages and are expected to continue as plants ramp up through Q3.

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M. Bender, EVP and CFO, confirmed there is a degree of conservatism in the margin guidance due to uncertainty around interest rates. Regarding buybacks, he acknowledged the board's authorization and the company's liquidity but stated that capital deployment is assessed against all opportunities, including organic growth projects and potential acquisitions, without providing specific quarterly guidance.

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EVP and CFO Steve Bender confirmed the plants were up and running with no expected impact in Q4. He also noted that, consistent with historical trends, working capital is typically a source of cash during the fourth quarter due to seasonality.

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CEO Lori Koch confirmed the Tyvek investigation was closed with no other issues pending. CFO Antonella Franzen explained the tariff headwind was lowered to $20M based on a 90-day pause and mitigation efforts, though the situation remains fluid.

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CEO Lori Koch confirmed the Tyvek investigation was suspended and closed with no other investigations ongoing. CFO Antonella Franzen explained the reduced tariff forecast is based on a 90-day pause holding through year-end, though the latest tariff news is not yet factored in.

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CEO Lori Koch reiterated the full-year growth targets for Healthcare and Water, noting Q1's strength was partly due to easy comps. She confirmed the Diversified Industrials decline was driven by softness in shelter and auto. Regarding order books, she reported that April was strong and visibility remains consistent with historical patterns, with no signs of a slowdown.

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CEO Lori Koch attributed the Q4 beat to stronger-than-expected demand in Electronics, including some pre-buy activity, along with better performance in Water and medical packaging. A lower-than-anticipated tax rate also contributed. She confirmed that business trends were playing out as expected in the early part of 2025.

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CEO Lori Koch and Executive Chairman Ed Breen explained that a roughly 1% annual price decline is typical for the E&I segment, as price gains on new products are offset by givebacks on older products. Regarding restructuring, Lori Koch confirmed the benefit number is now higher than previously guided, as the company reached its quarterly run-rate savings in Q3, with some carry-forward benefit expected in 2025.

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CEO Peter Vanacker affirmed the company's commitment to the dividend, highlighting a strong starting cash position, robust liquidity, and a foundational commitment to its investment-grade credit rating. He stated that no further share buybacks are planned for 2025-2026 and that the company's cash improvement plan is on track to secure the dividend.

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CEO Peter Vanacker confirmed that share repurchases are a core part of capital distribution and highlighted the company's 14-year track record of increasing dividends, stating LYB is well-positioned to continue this trend. CFO Agustin Izquierdo added that the company will continue to be opportunistic with buybacks. Peter Vanacker hinted that buybacks likely continued past the end of Q1 given the low share price.

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EVP Kimberly Foley explained that rising feedstock costs have increased ethylene production costs by $0.05-$0.06 per pound. She expressed confidence in achieving price improvement, arguing that with 5% of industry cracker capacity offline for maintenance, integrated producers will be unwilling to buy expensive ethylene to make low-margin polyethylene. CEO Peter Vanacker added that the market was surprisingly balanced in Q4 despite price decreases.

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CEO Peter Vanacker stated that clarity on the European asset review is expected in 2025. He clarified his earlier comment was not about operating rates; rather, after the European restructuring and refining exit, the proportion of LyondellBasell's entire global portfolio considered 'cost-advantaged' would increase from 60% to 70%. CFO Michael McMurray added that more details would be shared in the new year.

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Chairman, President & CEO Peter Huntsman stated that the Board reviews the dividend constantly and feels comfortable for now, given cash generation efforts. He affirmed that if the weak cycle persists into early 2026, the Board would make 'appropriate decisions' and would not pay a dividend if it were materially harmful to the balance sheet.

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CEO Peter Huntsman argued the current situation is episodic, not systemic, because of the significant disconnect between order patterns and actual end-market consumption, a parallel he drew to the 2020 paralysis. Regarding the maleic facility, he stated that a 'permanent decision' on the asset is expected by the middle of the year, noting the European market continues to be flooded with low-priced imports from China and indirectly from Russia.

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CEO Peter Huntsman attributed his optimism to early signs of an MDI pricing recovery, citing 3-year high prices in China and multiple U.S. price increase announcements that feel more durable. Regarding the trade probe, he said a final decision is over a year away but a finding of dumping would be a net positive for Huntsman.

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Chairman, CEO and President Peter Huntsman expressed frustration with Europe's lack of regulatory incentives for insulation, which hinders growth despite high energy prices. On capital allocation, he stated his priority is to preserve the dividend and maintain a strong balance sheet, with share buybacks or M&A to be considered only after free cash flow improves.

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Chairman and CEO Mark Costa confirmed that a pre-buy benefit of around $20 million in Q2 was 'directionally correct.' Regarding the Q3 guidance, he described the '$1.25' figure as a best estimate that carries both upside and downside risk due to the extreme uncertainty in customer and consumer behavior amid the ongoing trade situation. While factors like cost actions are controllable, the demand environment is not, leading to a wide range of possibilities.

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Mark Costa, Board Chair and CEO, stated that the wide Q2 guidance range is almost entirely due to demand uncertainty in May and June, driven by trade tensions. He explained that for tow sales, the joint venture with CNTC can opt to reduce production if the flake imported from Eastman becomes uneconomic due to high tariffs, creating volume risk for Eastman rather than a simple price pass-through.

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CEO Mark Costa elaborated on Aventa, a biodegradable cellulosic acetate product creating compostable straws and a drop-in replacement for polystyrene foam trays, calling it a large, high-margin opportunity. Regarding Q3 volume growth, Costa attributed the strength in the AFP segment to heat transfer fluids for global LNG projects and coatings additives. The CI segment saw higher volume in North America due to increased availability post-shutdowns, while the AM segment was roughly flat.

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Chairman and CEO Pierre Brondeau stated that while the official marketing process has not begun, preliminary interest is being shown. He clarified that India's results are not material enough for a full historical recast but provided key figures: H2 2024 India sales were $140 million, with an H2 2025 forecast of $70 million. He noted the rest of the business needs to grow by about 9% to meet the ex-India guidance, driven by over $200 million in growth from the new product portfolio.

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CEO Pierre Brondeau noted the Q1 impact was limited to SG&A costs for hiring the new sales team. President Ronaldo Pereira expressed high confidence, stating the initiative will turn positive when invoicing for the main crop season begins late in Q2 and ramps up in Q3. He stated he has 'no doubt' it will be a positive contributor for the full year 2025.

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CEO Pierre Brondeau explained that the cost-plus pricing structure with key diamide partners was a strategic commercial decision to secure long-term contracts and ensure partners remained competitive. He attributed the remaining one-third of the price decline to ongoing market competitiveness, particularly in Asia and specifically India, where channel inventories remain high.

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CFO Vince Morales reported that after some initial tariff concerns in April, customer order patterns normalized and there was no significant pull-forward of demand into Q2. On currency, he stated the negative Q1 translation impact lessened in Q2, and he expects the second half to offset the first, bringing the full-year impact near zero.

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CFO Vince Morales reported that after some initial customer concern around tariffs in April, order patterns returned to normal for the remainder of the quarter with no evidence of pre-buying or pull-forward into Q2. On currency, he stated the impact was negative in Q1, less negative in Q2, and is expected to reverse in the second half, resulting in a near-zero impact for the full year.

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CEO Timothy Knavish stated that total company organic growth is expected to be in the low single digits for the year. He specified that Performance Coatings should be in the mid-single digits. CFO Vince Morales added context, noting that comps get harder for Performance Coatings but easier for Industrial Coatings in the second half, while also referencing the known challenges in the architectural business in Mexico.

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CEO Tim Knavish confirmed the divestiture is 'absolutely' accretive to EPS. Regarding capital allocation, he clarified that the M&A strategy is unchanged, focusing on organic growth while remaining open to value-accretive acquisitions. He noted that while a Brazilian asset is attractive, the company must consider price and timing, and currently sees its own stock as undervalued, making buybacks a compelling use of cash.

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Chairman and CEO Timothy Knavish explained the flat Q4 Refinish outlook is due to channel inventory management and a difficult comparison against a significant customer pre-buy in Q4 of last year. SVP and CFO Vince Morales noted that while the 2025 plan isn't final, structural corporate costs are expected to be lower as a result of the new cost program.

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President and CEO Ken Lane acknowledged that South America is a key export destination and that tariff uncertainty is causing short-term market disruption. He estimated that if major retaliatory tariffs were enacted, it would take approximately one to two months for global trade flows to 'rewire,' with North American product shifting to other regions. He added that he was encouraged by the recent lack of new tariff rhetoric from Brazil.

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President and CEO Kenneth Lane acknowledged that 2025 will continue to be a struggle for Epoxy, though not a 'lost year.' He pointed to some positive impacts from anti-dumping duties on other countries and growth in higher-value formulated solutions. He expects to see positive results by late 2025 or early 2026, aided by new European cost agreements, and reminded that the business still provides mid-to-high double-digit million-dollar integration value.

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CFO Todd Slater confirmed the $80 million tax payment will occur in H1 2025 and the ~$100 million debt maturity will be paid with the revolver. CEO Kenneth Lane clarified that the PCI index would not be flat, as it includes derivatives like EDC, which Slater noted is facing pricing headwinds.

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President and CEO Kenneth Lane reiterated that the PCI decline was driven by mix changes from the Hurricane Beryl downtime and that, excluding this impact, the index would have been relatively flat sequentially. He expects a similar flat trend in Q4. For share repurchases, Lane anticipates a pace in Q4 similar to Q3, reflecting an adjustment made midyear to a lower earnings outlook.

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Chairman & CEO Frank Sullivan confirmed the $70 million in MAP savings is incremental to fiscal 2025. However, he cautioned that these savings will be partially offset by non-material inflation like wage, salary, and insurance cost increases. Regarding Europe, he stated that most of the Q4 revenue growth was from M&A, but core profitability and cash flow are improving due to MAP initiatives, with more progress expected.

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Chairman and CEO Frank Sullivan attributed the revised outlook to the rollout from a weather-impacted Q3, ongoing tariff uncertainty causing customer indecisiveness (notably in auto and Canada), and a general slowdown in Canada. VP and CFO Rusty Gordon projected Q4 corporate expenses to be elevated above the $35 million quarterly average due to acquisition costs.

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CEO Frank Sullivan noted that pricing was roughly flat in Q2 but that the company is on 'high alert' for 1.5-2% raw material inflation and has modest price increases planned. On capital allocation, he emphasized that the balance sheet is the strongest in 35 years and that while they will moderate between buybacks and M&A, he is not afraid to use it for smart, strategic acquisitions.

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Frank Sullivan, Chair and CEO, confirmed that a 1% price increase for the year still feels appropriate to offset modest raw material inflation. He stated that significant volume growth is not needed to achieve strong bottom-line leverage, just positive results. Regarding rate cuts, he suggested it would likely take a couple of quarters of reductions before benefits flow through to the economy and RPM's business, possibly by the spring.

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COO Karen Carter attributed the large decline to two factors not anticipated in the prior guidance: the unexpected $0.03/lb polyethylene price drop in April and the subsequent fall in operating rates as exports halted. She estimated the negative impact was split roughly 50/50 between these two items.

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CFO Jeff Tate stated that while Q2 operating cash flow will be impacted by turnarounds similar to Q1, the company expects to receive approximately $2.4 billion in cash from its infrastructure asset sale. COO Karen S. Carter and CEO James Fitterling both highlighted positive trends in siloxanes, noting continued downstream growth, a better supply/demand balance from an upstream shutdown, and positive pricing moves from Q1 into Q2.

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COO Karen S. Carter reported no signs of demand recovery in polyurethanes and construction chemicals due to interest rate sensitivity and slowing automotive markets. Conversely, she described demand in Industrial Solutions as stable, with positive signs in energy and pharma. However, she noted that a significant turnaround in the quarter would be a headwind for the business.

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James Fitterling, Chair and CEO, characterized Brazil's tariff as a move to protect its domestic manufacturing base. On siloxanes, he noted some market tightening but believes there is still room for rationalization, with some Chinese capacity at negative cash margins. He highlighted strong downstream demand growth (up 6% YoY), particularly from electric vehicles, and noted that a construction recovery would provide a significant boost.

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CFO Matt Plavan disclosed that 35 of the 180 acres in Geismar have been sold, with the company remaining optimistic about a transaction for the remaining portion. Plavan also elaborated on the financing strategy, stating a goal of securing 50-70% loan-to-value equipment financing and using corporate debt to cover the remainder of equipment costs and any near-term gross profit shortfalls resulting from the revised revenue timeline.

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CFO and COO Matt Plavan responded, disclosing that Origin has successfully sold 35 of the 180 acres in Geismar and that the remainder is still for sale. Regarding financing, Plavan detailed a strategy focused on securing equipment loans covering 50% to 70% of the value, with the balance to be covered by corporate debt. This corporate debt would also serve to bridge any cash flow gaps resulting from the revised revenue timeline, ensuring a healthy cash balance through the ramp-up period.

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The company explained that qualification time varies by customer size and that caps from line 1 are used to qualify subsequent lines. The $100M MOU is delayed but the term is intact, extending into 2027, and will be part of the 2026 revenue mix along with other customers. The company aims to maintain 12-18 months of cash runway and expects 2025 cash operating expenses to be similar to 2024's, funding capex with debt.

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CEO John Bissell explained that the qualification process is extensive, requiring millions of caps for testing on customer filling lines and for internal qualification of new equipment, with timelines varying by customer size. He confirmed the $100 million MOU's start was delayed, pushing its two-year term into 2025 and extending it into 2027, though it remains a significant part of the 2026 revenue mix. CFO and COO Matt Plavan added that the company aims for a 12-18 month cash runway and expects 2025 cash operating expenses to be similar to 2024's approximately $48 million, funded by existing capital and new debt financing.

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Co-CEO Rich Riley confirmed the two-year term for the $100 million MOU and its aggressive ramp into the second year, noting Mitsch's proposed split was not 'wildly off' but without providing specific guidance. He also stated it is the only MOU announced to date. Co-CEO and Co-Founder John Bissell addressed the Origin 2 question, explaining the move from the Geismar site and confirming that Asian brownfield facilities are an efficient potential option, though no definitive plans are set.

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President and CEO Dr. Ashish Khandpur stated that the defense business is expected to see double-digit growth in the first half and high-single-digit growth for the full year, driven by innovation and diversification. For transportation, he noted first-half performance would align with negative auto build rates in the U.S. and Europe, but strong growth in Asia and easier second-half comparisons should lead to a flattish to slightly positive full-year result.

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President and CEO Dr. Ashish Khandpur explained that the new Dyneema product is a proprietary innovation that enhances margins and market share in personal and vehicle armor. He acknowledged the significant Q1 2024 defense sales created a tough headwind for Q1 2025. He also noted the defense portfolio is now more balanced between military and law enforcement, with expectations for increased NATO spending and new applications in non-defense areas to support long-term demand.

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President and CEO Dr. Ashish Khandpur confirmed that seven of nine end markets grew, with telecom and transportation remaining the two challenged areas. He explained that the growth in composite panels for residential construction is driven by the trend toward modular housing, where panels are used to build pre-fabricated rooms like kitchens and bathrooms to accelerate construction, as well as for applications like outdoor decking.

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CEO John Romano and CFO John Srivisal confirmed the mining cost headwind is front-half loaded and that vertical integration remains advantageous, albeit temporarily reduced. Srivisal noted the benefit from lower-cost inventory production is already flowing through but is offset by the mining costs. Romano concluded by affirming that the dividend remains a priority and the company plans to maintain it in 2025.

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