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CFO Brad O'Connor confirmed the company is actively exploring debt restructuring, including refinancing secured debt into unsecured, as market conditions improve. CEO Ara Hovnanian added that while bulk sales of lots at a loss are not a primary strategy, they prefer to renegotiate with land partners. He noted the company has successfully sold excess entitled land at a profit. Regarding pricing power, Hovnanian identified active adult and move-up buyer segments as the most resilient, while the entry-level market, particularly at the lowest price points, remains more challenging.

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CEO Damon Hininger confirmed the bed count methodology. CFO David Garfinkle stated that reaching mid-80s occupancy is likely a 2026 event, though low-80s could be achieved by year-end 2025 with new contracts. Hininger clarified that the new federal funding allows ICE to move directly to long-term contracts, likely phasing out the use of preliminary 'letter contracts' and accelerating new awards.

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Management clarified that monthly sales per community were 2.8 in April, 2.4 in May, and 2.8 in June. EVP and CFO Russell Devendorf affirmed the 'pace over price' strategy to achieve the full-year closings goal and noted that rate buy-down incentives have been effective in driving traffic and conversion. President and CEO Gregory Bennett stated they have not yet received any notifications of lumber price increases.

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Chairman & CEO Eric Lipar estimated incentives are about 50-100 basis points higher than last year and confirmed community count should directionally increase into 2026. CFO & Treasurer Charles Merdian explained the SG&A guidance reflects revenue variability. Merdian also emphasized that delevering is a primary focus, aiming to lower the net debt-to-cap ratio from its current 45% level by right-sizing inventory.

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EVP and CFO Allison Aden attributed the flat margin to a mix of factors, including leveraging factory overhead while also absorbing some tariff costs. Corporate Controller Mark Fusler stated chattel rates were stable in the 8-9% range. President and CEO William Boor commented that while consumer confidence fluctuates, strong underlying demand is evident. He also confirmed that significant price competition had not reemerged, noting a general upward bias on pricing in local markets during the quarter.

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President and CEO William Boor explained that the gradual decline in ASP over the past two years was driven more by mix shifts, such as channel and product type, than by same-product price reductions. He stated that a true price inflection point would require higher industry-wide capacity utilization and growing backlogs. Executive Mark Fusler provided an update on Chattel rates, stating they have been steady but are slowly declining, with current quotes ranging from the high 7% to high 8% range.

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Chairman and CEO Allan Merrill explained the Q4 margin guidance reflects a continued high share of spec homes, which weighs down the margin uplift from their to-be-built backlog. He expressed a belief that new home inventory will compress as the industry has slowed start activity. Regarding lumber, he stated he has not heard of impending price increases from suppliers, who seem more concerned about declining housing starts.

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CEO Peter Jackson stated the goal for on-time and in-full delivery is simply 'higher,' driven by better vendor partnerships and customer alignment, aided by new digital tools and the ERP system. Regarding lumber tariffs, he asserted that the cost increase will be passed through to the market, as the company cannot absorb such a significant tax. He noted the market will adapt through rebalancing and substitution.

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CEO Designate Peter Jackson clarified that Slide 17 was not an update to the forecast but a new disclosure intended to bridge historical performance to the long-term 30-33% gross margin target established at Investor Day. Regarding R&R, he noted the market has significant pent-up demand and could see a tailwind from falling mortgage rates. While the 2025 forecast is modest, he sees good momentum building for 2025-2026.

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CEO Will Schwartz confirmed that Southern Yellow Pine is about two-thirds of fiber purchases and that 75% of total purchases are domestically sourced, limiting direct exposure to Canadian duties. He expressed confidence in the infrastructure growth outlook for the concrete forming business, noting it's a small part of a larger business. CFO Michael Cole stated that while the company benefits from tax changes like bonus depreciation, they have not yet seen it impact customer demand in the packaging segment.

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Executive Chairman Matthew Missad explained that cost evaluation is a constant, ongoing effort. CFO Michael Cole specified that actions for approximately $41 million of the savings have already been taken and will benefit 2025, with the full $60 million impact expected by 2026. CEO William Schwartz expressed continued optimism for the factory-built housing business due to affordability challenges but noted it was too early to see any impact on the Concrete Forming business from policy changes.

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CFO Glenn Keeler stated the closings beat was broad-based, resulting from a focus on selling completed homes. COO Tom Mitchell confirmed that Northern California softened in Q2 but attributed it to general consumer confidence issues, not specific job loss concerns. CEO Douglas Bauer added that other California markets like the Inland Empire and San Diego are performing well above the company average, highlighting the choppy nature of the market.

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CEO Sheryl Palmer detailed strong sales in the Southeast and a generally positive, though mixed, story in Florida. In the West, she noted a deliberate reduction in Southern California while Northern California was stable. She and Erik Heuser confirmed that shopper hesitation stems from macro uncertainty rather than personal financial distress, which they see as a positive indicator of latent demand.

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Phillip Creek, EVP, CFO & Director, responded that it's too early to determine the impact of lumber tariffs, as the company sources components and can substitute materials, not anticipating a significant cost increase. Robert Schottenstein, Chairman, President & CEO, confirmed plans to grow in all Midwest markets. Phillip Creek stated that SG&A dollars will likely continue to increase with community count growth. He also noted the backlog margin is slightly lower than Q1's and that the company does not disclose average mortgage rates in its backlog.

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EVP & COO Michael Murray stated the company has not quantified the lumber tariff's impact. President and CEO Paul Romanowski credited the strong Q3 margin to field execution but reiterated the guidance for a sequential decline in Q4. SVP Jessica Hansen reconfirmed that community count growth is expected to moderate to the mid-to-high single-digit range.

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EVP and COO Michael Murray acknowledged a potential impact from lumber tariffs but did not quantify it. President and CEO Paul Romanowski credited the Q3 margin strength to field execution but reiterated the guidance for a 50 bps decline in Q4. SVP Jessica Hansen reconfirmed that community count growth is expected to moderate to a mid-single-digit rate over time.

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Chairman and CEO Willy Walker explained that while clients accept higher rates, many face cash-in refinancing hurdles, which limits options and can lead to sales, but he does not foresee broadscale distress due to ample market capital. On GSE privatization, he noted it's a possibility in 2025 if tied to the tax bill, but the odds would decrease if that window is missed. Regarding hospitality, he compared the expansion to their successful move into multifamily investment sales, aiming to leverage client overlap and create a one-stop-shop for financing and sales.

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CEO Willy Walker confirmed the Q4 pipeline is holding strong. He identified several potential tailwinds for the new cycle, including the deployment of sidelined equity capital, a potential pickup in M&A activity, and transactions from private REITs. Regarding credit risk, Walker highlighted that 91% of the at-risk portfolio consists of fixed-rate loans with very few maturities in 2025, making it largely insulated from current rate fluctuations. He stressed that rate stability is more crucial for new transaction volume than the absolute rate level.

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Baron Silverstein, President of Newrez, stated that with rates expected to stay elevated, overall mortgage credit availability will likely remain in its "current state." Michael Nierenberg, Chairman, CEO, and President, addressed infrastructure, noting the massive capital need for power generation and that Rithm will rely on expert partners to navigate the space, regardless of administrative changes.

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Baron Silverstein, President of Newrez, opined that mortgage credit availability will likely stay in its current state, with a focus on affordability and growth in purchase and home equity loans. Michael Nierenberg, Chairman, CEO, and President, addressed the infrastructure question by stating that despite political shifts, the need for capital is massive due to a global power shortage, driven by data centers and AI. He emphasized their strategy is to partner with world-class experts to capitalize on this multi-trillion dollar opportunity.

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President and COO Jed Dolson responded that adjustments are primarily 'incentive-driven' and the company avoids touching base prices unless necessary, suggesting 6% is a good guide for recent incentive levels. CEO Jim Brickman addressed market expansion, stating that while the company is always open to good deals, the primary focus remains on the 'fantastic runway for growing' within their existing core markets of Dallas, Houston, and Atlanta, where they own 37,000 lots.

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CFO John Dixon stated Anglia's Q3 delivery contribution was minor (less than 2%) and projected a 30-50 basis point gross margin drag from purchase accounting in Q4 and Q1 2025. Chairman and Co-CEO Dale Francescon noted Anglia historically closed 400-500 homes annually. Mr. Dixon explained the leverage increase was due to the acquisition and expects the ratio to decline by year-end as assets are monetized.

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