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    Richard Reid • Wells Fargo

    Richard Reid's questions to Toll Brothers Inc (TOL) leadership

    Richard Reid's questions to Toll Brothers Inc (TOL) leadership • Q2 2025

    Question

    Richard Reid from Wells Fargo inquired about the drivers for the implied SG&A leverage in the Q4 guidance and sought an early perspective on potential deliveries for fiscal 2026.

    Answer

    CFO Martin Connor attributed the expected Q4 SG&A leverage primarily to higher revenues, alongside disciplined cost management. Executive Douglas Yearley added that a lower variable sales cost component also contributed. While declining to provide a 2026 delivery forecast, Mr. Yearley offered color, stating the average sales price will be higher, they will maintain a spec strategy, and they project approximately 10% community count growth in 2026.

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    Richard Reid's questions to Owens Corning (OC) leadership

    Richard Reid's questions to Owens Corning (OC) leadership • Q1 2025

    Question

    Richard Reid asked for a breakdown of the Q2 insulation pricing guidance, specifically between the residential and commercial/European end markets.

    Answer

    CFO Todd Fister stated that pricing dynamics are good in both North American non-residential and European markets, with Europe showing signs of volume recovery. For residential, positive pricing is a carryover from a mid-2024 increase, as the 2025 increase saw limited traction, creating a tougher comparison for the second half of the year.

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    Richard Reid's questions to Owens Corning (OC) leadership • Q3 2024

    Question

    Richard Reid of Wells Fargo followed up on the Doors segment, asking for a disaggregation of recent pricing actions between repair/remodel and new construction channels, and whether a discretionary R&R recovery in 2025 would support price increases.

    Answer

    CEO Brian Chambers clarified that recent pricing moves in the Doors business were modest, surgical, and broad-based to remain competitive, rather than being targeted at specific channels. He stated that while the company focuses on value pricing, a stronger demand environment in 2025 would create a better opportunity to improve pricing across the board.

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    Richard Reid's questions to Ferguson Enterprises Inc (FERG) leadership

    Richard Reid's questions to Ferguson Enterprises Inc (FERG) leadership • Q2 2025

    Question

    Richard Reid asked for more detail on the weakness in the residential side of the Waterworks business and sought to understand the realization of finished goods price increases versus list prices across different categories.

    Answer

    CEO Kevin Murphy clarified that the residential Waterworks weakness was not a pronounced downturn but rather a mix shift, as growth was stronger in public works. He noted that bidding activity on the residential side has been encouraging. Regarding finished goods pricing, Murphy explained it's still early in the year for annual increases and tariff realization. He emphasized that Ferguson generally passes through price increases, though it requires project-by-project work, and that tariffs should have a stabilizing effect on the deflationary environment.

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    Richard Reid's questions to Pool Corp (POOL) leadership

    Richard Reid's questions to Pool Corp (POOL) leadership • Q4 2024

    Question

    Richard Reid asked what conditions are necessary for the company to return to its long-term 6-9% top-line growth algorithm and requested more detail on new private label product categories beyond chemicals.

    Answer

    President and CEO Peter Arvan responded that a return to the long-term growth algorithm requires lower interest rates and a loosening of the housing market, as it would be difficult to achieve with new construction flat. SVP and CFO Melanie M. Hart added that new private label efforts in 2025 are focused on maintenance products, with their margin benefit expected to offset a prior-year tax credit. The company is also expanding its NPT private label for pool finishes and tile.

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    Richard Reid's questions to Pool Corp (POOL) leadership • Q3 2024

    Question

    Richard Reid asked for a near-term perspective on the company's growth algorithm for 2025, considering headwinds from acquisitions and a smaller base of new pools. He also inquired about quarter-to-date sales trends in October.

    Answer

    President and CEO Peter Arvan stated it was too soon to provide a 2025 forecast but reiterated that a return to normal new pool construction is needed for the long-term algorithm to be fully effective. VP and CFO Melanie M. Hart added that getting back to a pre-COVID level of 80,000 new pools would represent growth ahead of the algorithm's 1-2% assumption. Arvan also noted that October sales were tracking well, driven by repair work in Florida.

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    Richard Reid's questions to Masco Corp (MAS) leadership

    Richard Reid's questions to Masco Corp (MAS) leadership • Q4 2024

    Question

    Richard Reid asked about the underlying macro assumptions giving management confidence in a growth acceleration in the second half of 2025. He also questioned if there was any evidence of inventory pre-buying in the plumbing channel ahead of China tariffs in late Q4.

    Answer

    President and CEO Keith Allman pointed to strong market fundamentals, including home equity levels, age of housing stock, and millennial household formations, as drivers for a modest return to growth in H2 2025. CFO Rick Westenberg stated that the company did not observe any material pre-buying or changes in channel inventories during Q4.

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    Richard Reid's questions to Mohawk Industries Inc (MHK) leadership

    Richard Reid's questions to Mohawk Industries Inc (MHK) leadership • Q4 2024

    Question

    Richard Reid asked about the margin pressure in the Flooring North America segment despite positive volume, questioning the source of the new volume. He also inquired about current capacity utilization rates for key categories like U.S. carpet and ceramics and the level needed to support industry-wide price increases.

    Answer

    CEO Jeff Lorberbaum attributed the margin pressure to aggressive pricing actions that offset volume gains. CFO James Brunk added that rising material costs are also a headwind. Lorberbaum stated that capacity utilization is currently 70-80%, whereas a recovery level is typically 90% or higher, which would reduce pricing pressure as demand strengthens.

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    Richard Reid's questions to Mohawk Industries Inc (MHK) leadership • Q3 2024

    Question

    Richard Reid, under the name Sam Reid, asked for the methodology behind the $25-$40 million hurricane impact estimate and why this storm cycle warranted a specific callout compared to prior ones. He also questioned if the lack of Q3 share buybacks implied the company was preserving capital for M&A.

    Answer

    Chairman and CEO Jeff Lorberbaum clarified the hurricane estimate is not precise but is based on tracking sales in the impacted regions since the events. Executive James Brunk added that the callout was due to the unprecedented nature of back-to-back hurricanes hitting a wide and meaningful portion of their Southeast U.S. market. Regarding M&A, Lorberbaum reiterated that there are limited options at present and one cannot make bets on deals that don't exist.

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    Richard Reid's questions to DR Horton Inc (DHI) leadership

    Richard Reid's questions to DR Horton Inc (DHI) leadership • Q1 2025

    Question

    Richard Reid of Wells Fargo asked for the gross margin embedded in the backlog for Q2 closings and the current mortgage rate buydown being offered. He also inquired about the company's ability to manage potential inflation in labor and stick-and-brick costs.

    Answer

    CFO Bill Wheat stated that the margin in the backlog is consistent with the Q2 guidance range of 21.5% to 22.0%, with prevailing buydown rates offered between 4.99% and 5.99%. President and CEO Paul Romanowski noted good access to labor and materials currently, allowing for stable pricing, and expressed confidence in managing future cost pressures due to the company's market share and scale.

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    Richard Reid's questions to DR Horton Inc (DHI) leadership • Q4 2024

    Question

    Richard Reid sought more detail on the intra-quarter gross margin trend, asking if the Q1 guidance aligns with the September exit rate. He also asked about the geographic concentration of the company's completed unsold inventory, particularly in markets like Florida and Texas.

    Answer

    EVP Jessica Hansen clarified that while September's gross margin was the lowest of the quarter, it was not as low as the full Q1 forecast, as they anticipate further increases in incentive costs. President & CEO Paul Romanowski stated there is no specific geographic concentration of unsold inventory, attributing the increase to improved cycle times and a slower sales pace rather than regional weakness.

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    Richard Reid's questions to Core & Main Inc (CNM) leadership

    Richard Reid's questions to Core & Main Inc (CNM) leadership • Q3 2024

    Question

    Richard Reid asked for a ranking of the drivers behind the sequential gross margin improvement and requested an update on the current percentage of private label products in the cost of goods sold (COGS).

    Answer

    CFO Mark Witkowski ranked the drivers for the 20 basis point sequential gross margin improvement as, first, strategic sourcing and optimization, and second, private label growth. He stated that private label products now represent between 2% and 3% of COGS, an increase from previous disclosures.

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