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President and CEO Dale Asplund confirmed the development delays were purely timing-related, noting the backlog grew and that nearly half of the $14M quarterly revenue delay was from just three large projects with no scope reduction. EVP & CFO Brett Urban added that the company is opening 10 new development branches to fuel future growth. Both executives affirmed that the margin benefits from fleet, procurement, and centralization are sustainable and will continue to fund investments in sales to drive top-line growth.

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CEO Dale Asplund attributed the 140 basis point maintenance margin expansion to SG&A savings from a prior-year restructuring, noting the benefit will be lapped after Q2. CFO Brett Urban reiterated confidence in the full-year guidance. On the snow business, Asplund explained that a heavy snow year, like the current one, provides a strong opportunity to convert more customers to fixed-rate contracts for the following season.

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President and CEO Dale Asplund attributed the margin expansion to a combination of organic growth, which improves route density, and higher ancillary revenue from improved customer retention. CFO Brett Urban added that significant operating leverage from a 100 basis point reduction in TTM SG&A is a major factor. Regarding recent events, Dale Asplund confirmed they see potential upside from hurricane cleanup work in Florida, which is not fully built into guidance, and that ancillary requests are increasing with retention.

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CEO Shyam Reddy explained that the company's demand creation strategy, focusing on multifamily and builder pull-through efforts, is driving market share gains despite a soft housing market. He highlighted that early investments in multifamily logistics and project management are enabling this growth. Regarding greenfields, Reddy noted that while the Portland success provides valuable learnings, the primary constraint for future projects remains securing suitable real estate, not the company's willingness to expand.

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CEO Shyam Reddy reported that less than 20% of lumber is sourced from Canada and expressed confidence in passing through any tariff-related costs quickly. He noted that the builder pull-through program is working well, particularly in the East and South, helping to offset market softness and gain share. On the M&A front, Reddy confirmed that deal flow is increasing and that seller valuation expectations are coming down, narrowing the bid-ask spread.

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Shyam Reddy, President and CEO, expressed pride in five consecutive quarters of specialty product volume growth, attributing it to a targeted strategy. While acknowledging pricing uncertainty due to policy shifts, he conveyed confidence in managing it through their value proposition and operational scale. Reddy noted that while R&R demand remains soft due to low existing home sales, BlueLinx is gaining share through its focus on national accounts. He confirmed the transportation management system would be implemented by Q3 2025 and described the e-commerce rollout as a multiyear journey, currently in a pilot phase to gather customer feedback before a wider launch.

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President and CEO Shyam Reddy attributed the volume growth primarily to a focused share gain strategy targeting national accounts and multifamily, alongside product line expansions and new product launches, with a minor seasonal benefit. Reddy confirmed a slight sequential price improvement in specialty products in early Q4, supporting the company's confidence in year-over-year price improvement in the second half of 2025. He explained that structural margins were impacted by an inventory reserve in Q2 that reversed in Q3, normalizing the year-to-date margin, and noted that industry inventory levels now appear balanced.

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CEO Will Schwartz explained that the load-in for the new stores was minimal in Q2, as retailers avoid swaps during the peak selling season. The majority of the rollout will occur in the back half of the year to be ready for the 2026 decking season, coinciding with new capacity coming online. He noted a divide in the market, with affluent customers continuing to spend on composite decking. Schwartz emphasized that the SureStone technology and marketing are opening doors with distributors, and UFP's internal distribution network is critical for reaching markets without a distribution partner.

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CFO Michael Miller confirmed the positive trend in heavy commercial is expected to continue and was not driven by any specific project pull-forwards. Regarding spray foam, he reported that there was some price improvement in the quarter. He added that the gross margin headwind from spray foam was less severe than in the prior quarter and expressed confidence it would not be a headwind in the second half of the year.

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CEO Jeffrey Edwards attributed the commercial growth to improved performance in the heavy commercial business, which has been approved to pursue revenue growth again. He noted light commercial remains soft. On supply, he clarified that while tight, it did not cause any jobs to go uncompleted. CFO Michael Miller added that the company's internal sourcing strategy is helping to manage inventory and alleviate supply pressures.

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Executive Brian Harris confirmed they will leverage inventory to manage through tariffs and will make a case for exemptions, though no details are available. He noted HBP demand remains healthy. Chairman and CEO Ronald Kramer added that the HBP segment's market leadership, product innovation, and service position it for continued growth from repair/remodel and eventual new construction recovery.

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CEO William Christensen detailed progress on two fronts: investing in significant automation at key sites, like a new system being installed in Texas, and a strategic review of product complexity to simplify offerings. Regarding builder wins, he clarified that while the company is ahead of its internal plan for *booking* new business, there is a 6-to-9-month lag before this translates to revenue. The P&L impact is expected to be small in the second half of the year, especially given the flat spring building season.

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CEO William Southern responded that LP is relentlessly pursuing market share growth and will capitalize on any opportunities that arise from competitor disruption, though he couldn't quantify a specific impact. Regarding shed demand, he stated his belief that it is a sustainable recovery driven by macroeconomic factors and consumer need for space, not just an easy comparison to a weak prior year.

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CFO Rob Kuhns highlighted a stark contrast, stating that light commercial sales were down double digits while heavy commercial sales were up double digits. President and CEO Robert Buck added that while light commercial demand tends to follow residential trends, the company continues to see bidding opportunities and potential for share growth in that market.

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CEO Peter Jackson confirmed the core install business is doing well, though facing headwinds from multifamily, and that the third-party model remains the right one for the company. On M&A, he stated it is the latter: sellers are pulling back amid market uncertainty, leading to a quiet environment. He expressed satisfaction in closing the Alpine Lumber acquisition before the market cooled.

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CFO Pete Beckmann responded that the guidance assumes a relatively stable single-family mix compared to the Q4 exit rate, though some prior-year headwinds will still be lapped in the first half. CEO Peter Jackson acknowledged March is an important month but did not provide a specific historical sales percentage.

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CEO Designate Peter Jackson expressed confidence in future productivity gains, stating the company is in the 'early innings' of what is possible, though these efforts will need to be balanced with the upcoming ERP conversion. On product mix, he confirmed that the trade-down to enhance affordability is a widespread trend but noted that the pace of this shift has largely stabilized in the second half of the year.

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CEO Doug Black noted that sequential improvement in demand for products like hardscapes and lighting through 2024 indicates market stabilization, supporting a 'flat to slightly down' outlook for 2025. EVP, Strategy and Development Scott Salmon described the M&A environment as 'pretty status quo,' with no significant changes in seller expectations and a continued robust pipeline.

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CEO Doug Black reported no improvement in R&R activity, confirming that high interest rates are suppressing the middle market that relies on financing. He believes lower rates would support a rebound. He clarified that the maintenance market is steady, and recent volume growth was primarily due to grass seed prices normalizing, which spurred usage, rather than a broad acceleration of pent-up demand.

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CEO John Turner responded that while the single-family outlook is lower than previously expected, they are forecasting flat volumes for the next quarter, not a dramatic deceleration. He noted the market is choppy and highly dependent on mortgage rates. For Steel Framing, Turner believes pricing has stabilized near the bottom and expects it to remain flat in the first half of 2025, with potential for improvement in the back half if lower interest rates boost demand in related industries like automotive and appliances.

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CEO John Turner acknowledged that the company did not meet its wallboard pricing expectations, with the shortfall accounting for 20 basis points of the gross margin miss. He noted that price realization was slower in the commercial space due to longer project cycles. For ceilings, Turner explained that its strength is driven by project types that are currently performing well, such as data centers, healthcare, and education, which are heavy users of ceiling tiles and grid, offsetting weakness in general commercial construction.

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CFO Kelly Hibbs attributed general line strength to a combination of strategic initiatives in doors and millwork and suppliers adding new SKUs. Jeff Strom, Head of BMD, described inventory management as a balancing act, stating they would err on the side of having stock to serve customers. Troy Little, Head of Wood Products, detailed the Oakdale project timeline (Q4 '24 - Q2 '25) and confirmed they have built up veneer inventory to prevent customer supply disruptions.

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