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CFO Scott Cottrill clarified that the reduced CapEx guidance from $275 million to the $200-$225 million range is purely a matter of timing for some larger projects and does not impact the company's ability to meet anticipated demand. President & CEO D. Scott Barbour attributed Infiltrator's strength to its tank products, which are gaining share through new models and expanded distribution.

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An executive stated that the revenue split for fiscal 2026 is expected to follow the typical pattern of 55-60% in the first half and 40-45% in the second half, with Q1 having a slightly easier year-over-year comparison. Regarding the Investor Day, CFO Scott Cottrill explained that due to high dynamism and uncertainty in the construction economy, the management team did not feel comfortable establishing a solid three-year plan, which is a key component of the event. They preferred to wait for a clearer economic picture to present a more robust long-term outlook.

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CFO Scott Cottrill explained the Q4 guidance reflects a tough year-over-year comparison but noted that sequentially stable pricing and flattening material costs provide confidence. Executive Michael Higgins and CEO D. Barbour added that nonresidential strength is driven by material conversion, a focus on the South and Southeast regions, and a successful push in Allied Products.

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CEO Scott Barbour stated that in a weak demand environment, it's more difficult to recapture slowly rising material costs compared to periods of sharp inflation. He confirmed that a faster cost increase can make it easier to push price. Regarding investments, he highlighted significant efficiency gains, lower scrap rates, and better throughput at both Infiltrator and the ADS pipe network, attributing these improvements directly to recent capital projects.

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CFO Todd Fister attributed the margin resilience to a decade of structural improvements in the residential business, including network optimization and a refined commercial strategy. He also noted that current margins reflect the impact of production curtailments to manage inventory discipline. While not providing a sub-segment margin breakdown, he stated the work in both residential and non-residential is proving effective.

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CFO Todd Fister emphasized that strategic choices, like the Santa Clara facility exit, have created a more flexible network. He noted the company entered this period with low inventories, which they can now rebuild. Management will continue to optimize production by utilizing its lowest-cost assets to match market conditions while remaining positioned for future growth.

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CEO Brian Chambers explained that OC's new plant is needed to meet strong demand for its products in the growing Southeast U.S. market. He believes much of the announced industry capacity is not incremental but is replacing older, less efficient assets. He noted that past capacity additions have not disrupted the industry's pricing or margin structure, as the business model allows for flexible production.

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Chief Financial Officer Todd Fister attributed the Q4 volume dip to a temporary 'air pocket' from weaker housing starts earlier in the year. He expressed confidence that the Insulation business has been reengineered to deliver attractive margins at current market levels and that long-term fundamentals, like the underbuilt housing market and stricter energy codes, remain supportive, mitigating the need for immediate production adjustments.

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EVP, CFO & Treasurer Lori Hough explained that the Q2 gross margin guidance of 25% to 26% reflects a balance against cautious consumer sentiment and softer demand in certain markets. She confirmed this range is the near-term expectation and noted that SG&A spending will continue to be managed in line with demand.

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CEO Tim Larson confirmed the company is eager to help with the California rebuild and has had local conversations, but noted that site preparation will take time before home orders materialize. Regarding Q3 demand, Larson attributed the slowdown to normal seasonality, stating that as the season has turned, activity is picking up in a manner consistent with the early spring selling season, suggesting no other major factors were at play.

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CEO Scott Rajeski asserted that labor challenges persist for concrete pool builders, which enhances the value proposition of fiberglass and is driving conversions, citing the example of major concrete builder Shasta Pools now installing Latham fiberglass. CFO Oliver Gloe broke down the 400+ bps gross margin gain, attributing roughly half to the accretive Coverstar acquisitions and the other half split evenly between lean/value engineering initiatives and volume leverage.

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CFO Oliver Gloe clarified that the guidance includes the impact of China tariffs and the company believes it can mitigate further impacts from Canada/Mexico through supply chain shifts and pricing. He stated that more than the guided 150 basis points of EBITDA margin expansion will come from gross margin, as SG&A will increase to fund growth initiatives. Executive Scott Rajeski added that while there are other M&A targets, the current focus is on integrating the recent Coverstar acquisitions, and there is nothing actively pending.

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CEO Scott Rajeski stated that no broad-based price increases have been announced. He noted that distributor inventory levels are now normalized and expects a 'wait-and-see' approach before restocking. Regarding S&M spend, Rajeski explained the investment is a long-term strategy to recruit and train new fiberglass dealers in target markets during the off-season, positioning Latham for the eventual recovery.

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CFO Robert Kraft explained that repair and maintenance products have low price elasticity, but reiterated the 'flat market' is an assumption, not a guide. He confirmed the 2026 margin pressure is primarily due to lapping a temporary tariff timing 'windfall' in Q3 2025. President & CEO Jon Michael Adinolfi added that the company is running more efficiently than ever.

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CFO Robert Kraft confirmed they expect RDS to return to low-to-mid single-digit growth as early as Q1 2025, driven by the MinuteKey 3.5 rollout. CEO Jon Adinolfi acknowledged that planned customer attrition will create negative pressure but is confident that new initiatives will more than offset it. Regarding pricing, Adinolfi affirmed the expectation to take price increases in strategic categories in H2 2025, driven by broad-based inflation, separate from any potential tariffs.

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CEO Doug Cahill responded that overall market volume remains soft, consistent with recent trends, but the company's product mix and margins are strong. He noted that while retailers are optimistic about a multi-year run once existing home sales recover, the timing remains uncertain. COO John Michael Adinolfi added that regarding tariffs, Hillman's sourcing is diversified (one-third from China), and the company's established practice is to work with retail partners to pass through any tariff-related cost increases on a dollar-for-dollar basis.

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President & CEO Bryan Fairbanks cited strong sales performance and long-standing, collaborative relationships with home centers as key to defending their market leadership. SVP & CFO Brenda Lovcik confirmed that Q3 will have the peak gross margin for the year, with Q4 declining from that level, partly due to lower sales volume and fixed cost absorption.

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President & CEO Bryan Fairbanks highlighted strong sales performance and long-standing, collaborative relationships with home centers as key to defending their position. SVP & CFO Brenda Lovcik confirmed that Q3 is expected to have the peak gross margin for the year, with a subsequent decline in Q4.

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CEO Bryan Fairbanks maintained that the tariff impact is less than 5% of COGS and that costs are not yet fully mitigated, though the team is actively working on it. He emphasized the complexity includes indirect purchases, making a precise figure difficult. Regarding product performance, he reiterated that premium products continue to sell very strongly, while the entry-level category is showing continued sequential improvement.

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CEO Bryan Fairbanks noted that Q4 is typically the weakest quarter for gross margin due to lower sales and production. He suggested that 2025 revenue growth would likely accelerate as the year progresses, in line with external R&R forecasts, and clarified that sales volume from the non-repeated Q1 channel fill would shift into Q2 and Q3.

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CEO Nicholas Fink confirmed the Connected Products sales forecast is now $250 million for 2025, with an expected year-end run rate approaching $300 million. He explained the pipeline is broader but converting slower than anticipated and highlighted the upcoming Q3 pilot of a subscription model. For the Water business, Fink noted strong share gains with large builders for the Moen brand, solid retail performance, and ongoing efforts to enforce pricing discipline in e-commerce. He also mentioned the House of Rohl luxury brand continues to see excellent results due to resilient high-end consumer demand.

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CFO David Barry explained that connected products growth would contribute ~100 bps in H1 and ~200 bps in H2, driven by strong Flo POS and a recovery in the Yale business. CEO Nicholas Fink stated the company's strategy is built on supply chain agility and a strong North American manufacturing footprint. Barry clarified the guide includes China tariffs, while the EPS range covers potential Mexico/Canada tariffs, which would be offset by price and supply chain actions.

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CFO David Barry outlined that 2025 margin gains would come from productivity, SG&A efficiency, and favorable mix, with the main offset being the level of reinvestment back into the business to unlock growth. Regarding decking, Barry explained the destocking was a one-time event driven by a softer-than-expected season. He noted that POS, which was down mid-single digits in Q3, has shown improvement over the last four weeks, giving confidence heading into Q4.

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CEO Peter Jackson explained that the company is strengthening its position by improving on-time delivery, helping builders with affordability via product solutions, and leveraging digital tools to remove waste. CFO Pete Beckmann attributed the slight sequential Q2 gross margin improvement to better-than-expected performance in multifamily and R&R, while noting that margins are still expected to decline sequentially through the rest of the year.

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CEO Peter Jackson affirmed that the company always aims to increase market share, regardless of market conditions, and that the team is executing well. CFO Pete Beckmann added that while margins are expected to drift lower due to competitive pressures and normalization, they remain strong. Both executives stressed the daily balance between share and margin, leveraging BLDR's cost advantages and bundled product offerings.

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CEO Peter Jackson stated the market is stable but at a low level due to affordability challenges. CFO Pete Beckmann added that the decline in average home size is moderating and the gross margin guidance reflects a balance between competitive pressures and the strength of the value-added product mix, noting a Q4 exit rate of approximately 31.5%.

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CEO Designate Peter Jackson acknowledged market choppiness and noted that the primary headwind has been the decline in the value per home start, which has impacted sales relative to start volumes. CFO Designate Pete Beckmann confirmed they anticipate a margin headwind of about 100 basis points from the year-to-date average as they exit 2024, split between multifamily and core business normalization, leading to an exit rate around 31.5%.

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CEO John Nudi stated his first 100 days are focused on listening and learning, with a key priority on accelerating profitable top-line growth, potentially through digital levers. CFO Rick Westenberg noted it is premature to quantify the impact of potential future tariffs, as the final rates and regulations are unknown, but affirmed Masco will remain transparent as details become clear.

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CFO Richard Westenberg confirmed the goal is to mitigate the full $675 million annualized tariff impact by the end of 2026. CEO Keith Allman added that the mitigation efforts in 2026 would lean more heavily on sourcing footprint changes compared to 2025. Regarding the margin targets, Allman stated the company remains confident in its ability to achieve them, framing the withdrawal of guidance as a question of "when, not if," due to the current market uncertainty.

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CFO Rick Westenberg outlined that tariff mitigation is a multi-faceted approach involving sourcing changes, supplier negotiations, and pricing, with the net impact already factored into the 2025 guidance. President and CEO Keith Allman acknowledged a minor structural shift but believes it is counteracted by millennial household formation, maintaining that paint is an ideal DIY project.

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CFO Rick Westenberg explained that commodity costs, particularly copper and zinc, were a headwind in Q3 and will be in Q4, as expected. Despite this, cost initiatives are driving margin expansion. He noted that elevated commodity costs will be a factor in the 2025 pricing strategy. CEO Keith Allman deferred providing a specific 2025 outlook until the next earnings call, reiterating confidence in long-term fundamentals.

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CEO Doug Black estimated that the new residential construction market is down in the low-single digits overall, with more pronounced declines in previously high-growth markets. CFO John Guthrie specified that tariff-related price increases on products like lighting and irrigation are in the mid-single-digit range. Black added that the negative impact from seed deflation is concentrated in Q3, which will allow overall pricing to turn positive in Q4 as the seed season passes.

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CEO Doug Black explained that demand is relatively inelastic to material price hikes because materials are a small portion (10-25%) of a total landscaping job's cost. He identified broader economic uncertainty as a greater risk to demand. Executive Vice President John Guthrie added that the full-year guidance still assumes a single-digit price decrease for grass seed and continued deflation for PVC pipe, although the rate of decline for PVC is expected to moderate from the 20% seen in Q1.

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Executive John Guthrie stated that new 2025 pricing was being implemented and would be fully rolled out by mid-February. He also indicated that gross margin could face some pressure in Q1 due to tough comps from an early spring in the prior year, with the majority of the year's improvement expected in Q2 and Q3.

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CEO Ryan Schneider noted that July data showed a positive trend with both transaction units and prices increasing. He clarified that in markets with slight price drops, like Florida, transaction volumes also declined, suggesting lower prices are not currently spurring activity. Schneider also confirmed that Anywhere's stance on broad listing distribution is a significant advantage in agent recruiting and retention, and the company has rolled out technology to support various listing strategies.

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CEO Ryan Schneider cited third-party studies and internal analysis showing broad listing distribution leads to higher home prices, which he believes is best for the customer and a strong agent recruiting tool. CFO Charlotte Simonelli added this is also the better long-term financial decision. Regarding the balance sheet, Simonelli stated they plan to refinance the 2026 convertible notes opportunistically when market volatility subsides. Schneider commented on M&A, noting that while consolidation is inevitable, activity has been slow due to a bid-ask gap, with the most significant deals focused on building end-to-end capabilities.

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CFO Charlotte Simonelli explained that while the housing market is the largest variable, the guidance is supported by consistent factors like the $100 million cost savings target and stable agent commission splits. CEO Ryan Schneider added that Anywhere advocates for relaxing, not repealing, the clear cooperation policy to balance seller flexibility with market transparency. He also confirmed Anywhere is prepared to compete with a private listing network if the industry moves in that direction, leveraging its significant listing scale.

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CFO Charlotte Simonelli clarified that the employee-related expense headwind was due to a tough prior-year comparison from a one-time benefit in Q3 2023, while the legal expenses in the current quarter were considered one-time in nature. CEO Ryan Schneider added that regarding new buyer agreements, the long-term exclusive agreement has been the most widely adopted by a significant margin, which he sees as a positive indicator of consumers valuing their agents' services.

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President and CEO Paul Romanowski projected that community count growth will moderate from double-digits to a mid-to-high single-digit rate in fiscal 2026. He described recent buyer traffic as 'choppy' but noted that consistent rate offerings and targeted incentives have successfully maintained sales momentum into July.

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President and CEO Paul Romanowski indicated that community count growth is expected to moderate from double-digits to a mid-to-high single-digit rate. He described buyer traffic as 'choppy' but noted that consistent incentive offerings and strong realtor relationships have helped maintain sales pace, even as incentives have risen.

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President and CEO Paul Romanowski noted that traffic remains good, though higher incentives are needed for conversions, and highlighted that the large first-time buyer cohort may be less sensitive to market volatility. EVP and COO Michael Murray explained that the delivery guide is achievable due to an expected acceleration in starts and significantly improved construction cycle times, which allow for faster inventory turns.

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President and CEO Paul Romanowski expressed confidence in hitting the full-year closings guide, citing operational efficiency and strong inventory positioning, contingent on a healthy spring selling season. COO Michael Murray explained the Q2 margin outlook is colored by the higher mortgage rate environment at the start of Q2 compared to the beginning of Q1, suggesting margins could be a bit lower than December's levels.

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EVP & COO Michael Murray confirmed the plan involves both leaning into starts in the spring and leveraging significant cycle time improvements. EVP Jessica Hansen added that Q1 starts will see a slight increase before a larger pickup in the spring, and noted home square footage was down 1% due to a higher mix of attached products. President & CEO Paul Romanowski explained that smaller plans enhance efficiency and affordability.

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Chairman & CEO Jeffrey Mezger affirmed that KB Home will continue to respond to local market conditions on a community-by-community basis, with the necessary actions to meet sales targets already factored into guidance. Regarding future growth, Mezger stated that the company's large owned and controlled lot pipeline provides a platform for growth, and future land investment will be dictated by market conditions, with a slowdown in community count growth expected before a rebound in early 2026.

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CEO Jeffrey Mezger explained the company converted opaque 'pocket incentives' into transparent base price reductions, which immediately boosted sales. COO Rob McGibney specified that about half of communities saw price cuts averaging $15,000-$16,000, but the net margin impact was only about 75 basis points due to offsetting incentive reductions. Mezger added that the guided improvement in second-half operating margin is primarily driven by operating leverage on higher delivery volumes, not a significant change in per-home gross margin.

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Chairman and CEO Jeffrey Mezger clarified that the early part of the quarter is a seasonally slow period and that the expected improvement is a function of a significant number of new community openings, not a major market shift. He emphasized that the company's strategy is to optimize each asset for the highest return, using price and incentives to achieve a target sales pace rather than starting homes without confirmed demand.

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EVP & CFO Jeff Kaminski stated that while the $7.5 billion estimate is supported by community count, backlog, and absorption assumptions, the company is withholding detailed components until January due to economic uncertainty. President & COO Rob McGibney added that as rates moderate, KBH expects to reduce mortgage concessions rather than prices, which should expand gross margins on new orders. He emphasized the strategy of adjusting home prices to optimize each asset rather than relying heavily on incentives.

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President & CEO John Turner stated the lag from housing starts to shipments is three to six months and that visibility is strong for the upcoming quarter. He believes about half of the recent cost savings are permanent, with productivity investments allowing for some volume growth before variable costs would need to be added back.

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CEO John Turner stated that like-for-like Wallboard pricing was up sequentially and that for Q3, they expect overall price/mix to be slightly up despite the negative mix from weaker commercial and multifamily markets. On M&A, Turner confirmed the pipeline remains strong and they will stay active, targeting a leverage ratio of 1.5x to 2.5x. CFO Scott Deakin added that they can flex the share repurchase program to manage cash for opportunistic acquisitions.

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CFO Robyn Bradbury confirmed organic SG&A productivity gains in Q1 and expects further year-over-year rate improvement in Q2 as M&A synergies are realized. She reiterated the full-year market outlook of roughly flat, with a stronger first half and more uncertainty in the second half due to tariffs and interest rates, adding that pricing is expected to be flat at a minimum for the full year.

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CFO Mark Witkowski explained that while both residential and non-residential markets have upside potential, a release of pent-up demand in residential is contingent on lower mortgage rates. He identified private label products as the primary lever for gross margin expansion, followed by sourcing optimization and pricing initiatives, noting significant progress in private label penetration in 2024.

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CFO Mark Witkowski explained that greenfield branches typically break even within the first year and mature over 3-5 years, serving as a key component of their above-market growth strategy. He stated that the planned 30-50 basis points of operating margin expansion in 2025 is expected to come from a combination of both gross margin initiatives and SG&A productivity.

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CFO Mark Witkowski confirmed that gross margin normalization is complete and that he expects margins to grow sequentially from the Q2 level. He attributed the guidance cut to the Q2 miss ($100M from weather/market softness) and lower second-half volume expectations ($100M), noting August organic volumes were in line with expectations.

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CEO Jeff Lorberbaum stated the market is expected to pass through tariffs via pricing actions, which should improve Mohawk's competitive position due to its local production. He suggested potential shifts between product categories, with alternatives like laminate, ceramic, and carpet possibly benefiting as LVT costs rise.

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Executive James Brunk stated that the timing of a post-hurricane rebuild is pushed into 2025, as flooring is one of the last products installed. Regarding inventory, he explained that reducing inventory via shutdowns in Q4 is a prudent measure given slower demand and the hurricane impact. The goal is to end the year with inventory levels relatively flat on a dollar basis compared to the previous year-end.

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CEO Kevin Murphy detailed the multi-pronged investment strategy, including converting over 500 counters for dual-trade HVAC and plumbing professionals, organic expansion into 20 new HVAC markets, and enhancing capabilities for large capital projects and Waterworks. CFO Bill Brundage quantified that of the 5.5% cost growth, the vast majority was driven by 5% volume growth, with headcount remaining flat year-over-year, indicating productivity gains. He noted that deflation accounted for about 40 of the 60 basis points of operating deleverage. Brundage confirmed cost reduction actions are underway, focused on non-customer-facing roles, with the goal of slowing cost growth in the second half.

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CEO Kevin Murphy stated that Ferguson will continue investing to support current volume and prepare for a market recovery. CFO Bill Brundage added that some investments, like the trainee class and HVAC rollout, are front-loaded. On pricing, Brundage noted finished goods were flat in Q1 but are expected to see low single-digit inflation in the second half. He mentioned that while some commodity categories like copper are inflating, steel and PVC remain under pressure, with overall commodity deflation expected to ease through the year.

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CFO Bill Brundage detailed that the low single-digit market decline forecast for FY25 assumes residential markets will be down low-to-mid single digits, while non-residential will be roughly flat. He noted that August's organic growth was similar to Q4. CEO Kevin Murphy explained that lower interest rates would first benefit the Waterworks business through lot preparation, followed by the RMI business as existing home turnover increases. He added that customers remain cautious but optimistic.

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CFO Samantha Stoddard explained that just under $100 million of CapEx is for asset maintenance, with the remaining ~$50 million allocated to transformational projects like network optimization, automation, and growth initiatives. CEO Bill Christensen stated that while Europe is improving, a significant recovery isn't expected until 2026 due to long build cycles, though they are seeing some project pipeline recovery.

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CFO Samantha Stoddard detailed the guidance revision, attributing it to softer R&R, the negative sales mix, the lost customer, European weakness, and multifamily headwinds. CEO William Christensen characterized the customer's decision to source windows from Asia as a 'unique choice' and a 'one-off,' not an emerging competitive trend, especially given the current tariff environment.

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CEO Robert Reffkin stated that Compass has not seen any meaningful change in commission rates and believes the new environment favors experienced, full-time agents, which benefits the company. He also noted that leading indicators like purchase mortgage applications and pending sales have shown resilience and year-over-year growth in recent weeks, suggesting the market's worst may be over.

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Chairman and CEO Sheryl Palmer reiterated that Q3 incentives were the lowest in two years, crediting their healthy buyer profile and personalized financing strategies for supporting margins. She expects continued stability relative to the market. Chief Corporate Operations Officer Erik Heuser confirmed the high 9% SG&A guide for the year and stated that with anticipated top-line growth, they expect to see improved leverage over time, with more specific guidance to come.

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