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President & CEO John Turner explained that GMS leverages its scale, service proposition, and expanded offerings from acquisitions to partner with builders. He stated the 10-12% EBITDA margin goal is roughly half dependent on a volume recovery and half on structural improvements, including cost savings and a richer product mix.

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CEO John Turner corrected the interpretation, stating they expect organic Ceilings volumes to be down low single digits, not high single digits. CFO Scott Deakin clarified the margin impact, noting that price/cost dynamics accounted for roughly two-thirds of the 60 basis point headwind. He explained the rebate shortfall was due to lower-than-expected purchase volumes during the calendar year program and that the company does not expect to make up the difference, affecting the accrual for the quarter.

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CFO Martin Connor detailed that of the 6,400 homes needed to hit the midpoint, 4,500 will come from backlog and 1,900 from spec inventory, where cost risk is limited. Executive Douglas Yearley added there's a conservative buffer of additional specs that could deliver. Regarding margins, Mr. Yearley explained that build-to-order margins run several hundred basis points above the company average while spec margins are below, a spread that has recently widened but still blends to the guided figure.

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Executive Chairman Douglas Yearley stated the company believes it can achieve 3,000 net contracts in Q2. He also confirmed that spec home margins are running about 200-250 basis points below build-to-order homes. He provided context on incentives, noting they fell from $68k in Q4'24 to $62k in Q1'25 and started Q2 at $55k, with the understanding that some of this improvement may be given back in certain markets.

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CFO Michael Miller stated that volume headwinds in both single-family and multifamily residential markets are expected to persist through 2025. In commercial, he highlighted strong performance in heavy commercial (up over 14%) but noted weakness in light commercial (down over 10%). He explained that with roughly 10% of the cost structure being fixed and 15% being lagging variable, unexpected volume declines create significant pressure on decremental margins, as was evident in the quarter.

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CEO Jeffrey Edwards confirmed the fourth-quarter impact from spray foam pricing would be similar to the third quarter. Regarding distribution investments, he stated that while costs will slowly increase as more sourcing points are added, there will not be a significant incremental ramp. He noted this would lift G&A but should be offset by savings in cost of goods sold.

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CEO Brian Chambers explained that asphalt prices have somewhat disconnected from WTI oil due to refining dynamics and low inventories, though low oil could moderate future inflation. CFO Todd Fister added that since natural gas is hedged, any benefit from lower prices would materialize in the back half of 2025 and into 2026, with the impact not expected to be large.

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CEO Brian Chambers noted that while manufacturing costs will be higher, strong operational execution continues to drive robust margins. He described the input cost environment as stable, resulting in a positive price/cost dynamic. For 2025, he indicated the setup is favorable for maintaining strong margins, supported by expectations of a strong market, high demand for OC products, and a solid components business.

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CFO Samantha Stoddard attributed the revised Q2 outlook to a wider range of potential outcomes driven by macroeconomic uncertainty and a more muted sales pickup than previously anticipated. She declined to provide a specific guidance range. Regarding liquidity, Stoddard reiterated that the company's debt instruments, including the revolver, do not have restrictive covenants. She stated JELD-WEN is well-positioned with an undrawn $500 million credit line and proceeds from the Towanda divestiture, and foresees no issues even if a draw on the revolver becomes necessary.

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CEO Bill Christensen clarified the $50 million headwind is from standard inflation in freight, labor, and materials, not tariffs. He reaffirmed the EBITDA bridge, attributing headwinds to the Towanda divestiture and market weakness, which require significant cost actions to offset. CFO Samantha Stoddard specified that the corporate cost increase includes a $15-$20 million headwind from the reinstatement of variable compensation.

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CFO Samantha Stoddard clarified the 'flat to down' 2025 outlook refers to combined volume and mix. CEO William Christensen defended the transformation as a structural change involving process rigor, capital discipline, and footprint optimization to create fewer, better-invested sites. He attributed current margin pressure to capacity utilization challenges as plants drop from two shifts to one, which the transformation aims to solve long-term.

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CEO Jeff Lorberbaum clarified his earlier comment, stating he assumes all industry participants, like Mohawk, increased inventories of imported products ahead of tariffs. Executive James Brunk outlined the path to potential earnings growth (ex-ERP impact), citing ~$70 million in remaining restructuring savings, additional productivity, lower interest costs, and potential FX tailwinds, though he stressed this depends on macroeconomic stabilization.

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CFO James Brunk clarified the system issue impact, attributing $15-$20 million to extraordinary costs and estimating a sales impact of $25-$50 million for the quarter. CEO Jeff Lorberbaum stated that for the full year, absent the system issue, they expect a slight improvement in earnings. Brunk added that Q2 should see normal historical seasonality off of an adjusted Q1 baseline.

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CFO Pete Beckmann explained that excluding multifamily, single-family margins are expected to be relatively flat to slightly down. He noted the company is in the last leg of multifamily margin normalization. Regarding capital allocation, both Beckmann and CEO Peter Jackson reiterated their commitment to a 1-2x leverage target by year-end, acknowledging the current level is a point-in-time figure influenced by seasonal borrowing and recent deployments.

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CFO Pete Beckmann explained that Q1 margins are seasonally lower and reflect continued normalization in multifamily and competitive pressures. CEO Peter Jackson elaborated that the industry has seen 'waves of normalization' post-COVID, and the company is now focused on finding a price-versus-share equilibrium in all product categories to protect its position.

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CFO Designate Pete Beckmann attributed the Q3 margin strength to productivity gains and favorable product mix, which offset multifamily normalization. For 2025, CEO Designate Peter Jackson clarified that the company's outlook is based on broader economist forecasts for housing starts, not individual builder commentary. He confirmed the scenarios include assumptions for M&A carryover, productivity, and market share gains from digital and install services, adding that the average cost per start has stabilized.

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Executive Vice President John Guthrie explained the flatter margin guidance reflects slightly weaker price realization early in the year and persistent freight cost pressures. CEO Doug Black addressed the residential outlook, acknowledging mixed feedback from builders but stating that overall demand feels flattish, supported by low housing inventory. He conceded there is high uncertainty but noted the company has not yet seen a significant downturn in this segment.

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Executive John Guthrie provided a pricing cadence outlook, expecting overall price deflation of around -2% in Q1, improving to -1% in Q2, and turning slightly positive in the second half. Regarding volume, he stated they do not expect a measurable difference between the halves and are not planning for a major economic recovery, though Q1 could be impacted by a tough prior-year comparison.

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CEO Doug Black acknowledged the integration was slower but explained it was an intentional decision to merge Pioneer's superior bulk POS and delivery systems with SiteOne's, which took longer but offers greater long-term value. He remains confident in the deal's potential. He declined to provide a 2025 forecast, citing market uncertainty, but noted general optimism among customers and suppliers.

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Curt VanHyfte, CFO, attributed the Q2 margin decline to a higher penetration of spec homes requiring more incentives, a mix of lower-margin townhomes, and the pull-forward of some high-margin closings into Q1. Sheryl Palmer, Chairman and CEO, clarified that April's sales pace has been choppy and is expected to be close to the Q1 average, a deviation from the typical seasonal peak, due to macroeconomic volatility.

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Chairman and CEO Sheryl Palmer clarified that margin pressure is primarily in the first-time buyer segment, and the company uses cost-effective tools like its 'Build Secura Flex' program to protect margins. She also reported no labor disruptions on job sites from immigration issues. Chief Financial Officer Curt VanHyfte confirmed the full-year margin guidance of 23-24% but declined to provide specific quarterly guidance beyond Q1, reiterating an expectation of moderation.

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Chairman and CEO Sheryl Palmer described the October sales trajectory as pleasing, especially considering storm-related disruptions, and highlighted the advantage of their to-be-built offerings. Chief Corporate Operations Officer Erik Heuser addressed market desirability by citing research showing Florida's population growth historically remains strong post-storm. He also noted their homes' superior construction and location away from immediate coastlines, with Sheryl Palmer confirming they remain bullish on Florida.

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James Peters (executive) confirmed the interpretation, expecting a Q2 similar to Q1's ~6.2% margin, with a build to the 8.5%-8.75% range in the second half. Marc Bitzer (executive) defended the guidance, stating it relies on controllable factors like cost actions, pricing, and new products, not an improved market. He also cited the significant potential tailwind from tariffs as a source of confidence.

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CEO Marc Bitzer reiterated that over 80% of U.S. sales are from U.S. production, with the rest split between Mexico and China, a profile very different from competitors. Potential import load-ins are not factored into guidance. CFO Jim Peters confirmed the math on the India transaction, explaining that while ~$300M in cash will be deconsolidated, that cash was never accessible for corporate debt paydown. Therefore, the $550-600M in proceeds represents new, usable cash for debt reduction.

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CFO Jim Peters clarified that holding the guidance steady was due to rounding on the 'approximately 6%' EBIT target and an unexpected non-cash impact from the EMEA stake. He reaffirmed that Q4 margin improvement will come from cost actions and better factory absorption. Regarding cash, Peters stated the geographic split is similar to Q2, with U.S. cash used to pay down commercial paper. While some international cash is harder to repatriate, it is being reinvested for growth. CEO Marc Bitzer added that the U.S. cash balance will significantly increase in Q4 due to seasonal cash flow generation.

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CEO Douglas Bauer confirmed the 7.3% incentive figure was for March orders and remained consistent into April. CFO Glenn Keeler acknowledged the math, explaining the implied 20% gross margin for the back half is driven by two main factors: higher lot costs as newer communities replace older, high-margin ones, and the full-year impact of the current elevated incentive levels.

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CFO Glenn Keeler clarified the pace improvement was relative to Q4 2024, acknowledging the tough year-over-year comparison. President and COO Tom Mitchell added that the company is strategically planning for a lower absorption pace of around 3.0 homes per month in 2025, compared to 3.5 historically, to enhance margins. CEO Douglas Bauer confirmed this trade-off is intentional, stating the incremental incentives needed to drive higher pace are not worth the margin sacrifice in the current market.

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CEO Douglas Bauer stated that Q4 incentives might be slightly higher to move existing inventory but are expected to be lower on the new communities opening in the spring. He asserted that Tri Pointe's premium brand allows it to compete effectively even in choppier markets like Austin. CFO Glenn Keeler and Bauer clarified the delays were minor timing shifts (e.g., from December to January) and were spread across various markets, not concentrated in weaker ones.

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CFO Richard Westenberg confirmed that China represents the vast majority of the tariff exposure, as evidenced by the $625 million of the $675 million annualized impact. He noted a meaningful import exposure from Mexico, principally for the Watkins Wellness business, but stated the vast majority of these products qualify for USMCA exemption. Westenberg also confirmed that the newly detailed tariff impacts are incremental to the guidance provided in February, which had only factored in the pre-existing 10% China tariff.

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COO Rob McGibney reiterated that quarter-over-quarter margin improvement is mostly from leverage, with underlying per-home margins expected to be relatively flat. CEO Jeffrey Mezger defended the guidance by stating they are pleased with the current sales pace, which is approaching normal levels for Q2. He asserted that the actions taken are working and are fully reflected in the current guidance, making them 'pretty comfortable' with their position.

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EVP and CFO Jeff Kaminski responded that the guidance represents their best assessment based on current conditions, backlog margins, and cost expectations, acknowledging market volatility. He noted the guidance range accounts for this uncertainty. Regarding sales pace, he reiterated that the company will have better visibility for the full year after the critical spring selling season concludes.

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CEO Kevin Murphy acknowledged that November and December were more challenged but felt encouraged by the trajectory in January and February. He reiterated the company's long-term goal of being a 30-plus percent gross margin business. CFO Bill Brundage provided a pricing outlook, stating that while pricing levels should improve through the second half, he still expects overall deflation in Q3. He projected pricing would be 'close to flat' by Q4 but did not expect a return to positive pricing in the current fiscal year.

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CFO Bill Brundage stated that Ferguson aims for 100% free cash flow conversion from net income and will maintain its capital allocation priorities of organic investment, dividends, M&A, and buybacks, supported by a strong balance sheet. He confirmed the vast majority of the 9% Q4 HVAC growth was organic. CEO Kevin Murphy added that the M&A pipeline is healthy, with a focus on HVAC and non-residential capabilities, and outlined a three-pronged strategy for HVAC growth.

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CEO Tom Hill stated that the company will evaluate all newly acquired assets; those that fit strategically and earn appropriate returns will be kept, while others may be divested. CFO Mary Andrews Carlisle clarified that the 2025 guidance assumes full ownership, with the acquisitions contributing approximately $150 million in EBITDA, split about 60% to the Aggregates segment and 40% to downstream businesses.

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Chairman and CEO James Hill stated that it was premature to comment on Wake Stone's pricing strategy, as the deal has not yet closed and it represents a new market for Vulcan. He also noted that the company does not typically disclose purchase prices for acquisitions that are not considered material. He concluded by reiterating his excitement for the deal's strategic fit.

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CEO Tim Larson stated that captive retail currently accounts for 35% of U.S. sales and that the company will take a balanced, market-by-market approach to channel growth rather than setting a specific mix target. CFO Laurie Hough explained that the Q3 gross margin beat was due to favorable input costs and a higher mix of captive retail sales. She guided for margins to return to the 26-27% range in Q4 as forest product cost benefits dissipate, but noted this outlook does not include potential tariff impacts.

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CEO Steve LeClair clarified that their view of 'stable pricing' is based on the entire project bill of materials, not just PVC pipe, which is less than 15% of sales. He noted they are already receiving 2025 price increase notifications for other product categories. Regarding water treatment, he described it as a long-cycle business with a substantial project pipeline built over the last decade.

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CFO Mark Witkowski detailed that while steel pipe prices declined, they have stabilized, and this was offset by increases in copper and stability in municipal PVC, resulting in a stable overall environment. CEO Stephen LeClair added that residential projects are being phased and non-residential is choppy due to financing, but strong DOT work provides a partial offset, viewing most delays as temporary.

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CFO Russ Devendorf clarified that the 2025 outlook assumes a market status quo. He projected a 15% increase in community count for 2025, with most growth occurring in the second half of the year. Devendorf stated that lot costs, which were approximately $85,000 in Q3 2024, are expected to increase by another $10,000 to $12,000 in 2025.

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CEO Nicholas Fink clarified the $160M Flo pipeline is a conservative estimate based on a 5% conversion of contracts already signed, noting that mandated contracts will have a much higher conversion rate. Regarding sourcing, CFO David Barry stated that COGS from China is down to less than 25% from over 50% in 2018, with 40-50% of total COGS now U.S.-based. Fink added that the company has a flexible, dual-source supply chain and a team actively planning for potential tariff increases, viewing it as a competitive advantage.

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