Matt Hettwer

Matt Hettwer asked about the lag effects of lower interest rates on the Building Adhesive Solutions (BAS) business, specific benefiting lines like woodworking, and the size and impact of the high-growth data center business within BAS.

Answer

CEO Celeste Mastin noted a 15-18 month lag for architectural billing index impacts from lower interest rates, but more immediate indirect benefits for HHC and BAS (woodworking/furniture). CFO John Corkrean clarified that the data center business, while growing rapidly (40% this year), is less than half of the roofing business, which itself is 5-10% of total revenue, but is a high-margin strategic focus area.

Matt Hettwer asked about the lag effects of lower interest rates on the BAS (Building Adhesive Solutions) business and which specific lines, like glass or woodworking, might benefit most. He also inquired about the size and impact of the data center business on segment results.

Answer

Celeste Mastin, President and Chief Executive Officer, stated a 15-18 month lag for interest rate impacts after the architectural billing index, but noted more immediate indirect benefits for HHC and BAS (e.g., woodworking/furniture) from increased mobility. She described the data center business as strategically approached with a package of adhesives, and John Corkrean, Executive Vice President and Chief Financial Officer, added it's a high-margin, fast-growing area, though less than half of the roofing business (5-10% of total revenue).