Maggie Grady Miller

On behalf of Phil Ng, Maggie Grady Miller from Jefferies asked for an update on the retail remodel activity within the storage business and for more context on the 'wait and see' approach from customers on smaller transactional projects.

Answer

President & COO Timothy Boswell noted that while there has been some retail remodel activity, it hasn't reached the scale of previous years and its shorter duration doesn't significantly build the unit-on-rent base. CEO Bradley Soultz identified three factors causing hesitation on smaller projects: uncertainty around monetary policy and interest rates, trade policy, and ongoing labor constraints.

Maggie Grady Miller, on behalf of Phil Ng from Jefferies, asked about Masco's pricing strategy amid a dynamic tariff environment, questioning how price increases are adjusted as tariff policies change and whether the company is facing customer pushback.

Answer

CEO John Nudi emphasized that pricing is the final lever after pursuing sourcing changes and cost negotiations. He stated that while the environment is dynamic, Masco has been able to implement its pricing in a disciplined manner with customers, balancing margin protection with the goal of holding and growing market share.

Maggie Miller, on for Phil Ng at Jefferies, asked for a breakdown of the price versus mix components, the risk of fiberglass pricing falling, and opportunities for SG&A cost savings.

Answer

CFO Michael Miller noted the price/mix calculation is complex, with carryover pricing being a positive factor while weaker multifamily sales act as a headwind. CEO Jeffrey Edwards commented that the material market is normalizing, not declining, as manufacturers can regulate supply. Critically, Mr. Miller announced a new initiative to reduce G&A costs by at least $15 million, with savings expected to materialize starting in Q3, a task Mr. Edwards called 'job one.'