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    Sam Reid • Wells Fargo

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

    Sam Reid's questions to Toll Brothers Inc (TOL) leadership • Q3 2025

    Question

    Sam Reid of Wells Fargo & Company asked for details on construction cycle times for the majority of communities and levers for improvement. He also inquired about the specifics of SG&A cost controls and if Q4 guidance includes grand opening expenses.

    Answer

    Douglas Yearley, Chairman & CEO, explained that cycle times for the remaining 65% of communities range from eight to eleven months, influenced by home complexity and local permitting. He credited improvements to process optimization and the efficiency of the spec building model. Martin Connor, CFO, attributed SG&A outperformance to stable headcount, controlled commissions, and technology leverage. Both confirmed that costs for new community openings are factored into the Q4 SG&A guidance.

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

    Sam Reid's questions to Owens Corning (OC) leadership • Q2 2025

    Question

    Sam Reid sought context on Q3 roofing volumes, asking for the expected industry decline and whether Owens Corning's outperformance is driven by execution or incremental volume from its new Medina, Ohio capacity.

    Answer

    CEO Brian Chambers projected the U.S. shingle market could be down mid-single digits in Q3, assuming normalized storm activity. He attributed Owens Corning's outperformance to its strong contractor engagement model, which creates loyal demand. He noted the new Medina line is ramping up to service this existing demand, where the company has been lagging, and to help rebuild its own lean inventories.

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    Sam Reid's questions to Owens Corning (OC) leadership • Q4 2024

    Question

    Sam Reid asked about the potential margin uplift from new laminate shingle capacity, particularly if it replaces lower-margin strip shingle production.

    Answer

    CEO Brian Chambers confirmed that increasing laminate shingle sales creates a positive mix shift and has been a key driver of the Roofing segment's strong margin performance. While not quantifying the exact margin differential, he highlighted that the market is shifting towards laminates, which is the strategic driver for OC's capacity investments, such as the Medina, Ohio facility conversion.

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    Sam Reid's questions to Smith Douglas Homes Corp (SDHC) leadership

    Sam Reid's questions to Smith Douglas Homes Corp (SDHC) leadership • Q2 2025

    Question

    Sam Reid of Wells Fargo inquired about the drivers for Q2 gross margin performance, the assumptions for Q3 margin guidance, and the geographic breakdown of the year-over-year increase in controlled lots.

    Answer

    President and CEO Gregory Bennett noted that sticks and bricks costs were flat in Q2. EVP and CFO Russell Devendorf explained that the Q3 margin outlook includes continued pressure from incentives, particularly successful rate buy-down programs. He also detailed that the lot growth was spread across the footprint, with Dallas adding about 600 lots and significant increases in Chattanooga, Central Georgia, Greenville, and Houston.

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    Sam Reid's questions to Smith Douglas Homes Corp (SDHC) leadership • Q4 2024

    Question

    Sam Reid from Wells Fargo followed up on the 200-300 basis point margin erosion from lot costs, inquiring if this pressure is specific to 2025 or could extend into 2026. He also asked about the expected cadence of community count growth throughout 2025.

    Answer

    EVP & CFO Russ Devendorf responded that he expects the significant lot cost inflation to level off, suggesting the current rate of margin erosion from this factor should not persist into 2026 and beyond. Regarding community count, Devendorf projected a ratable increase during 2025, growing from 78 communities at the end of 2024 to nearly 90 by the end of 2025.

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

    Sam Reid's questions to Masco Corp (MAS) leadership • Q2 2025

    Question

    Sam Reid of Wells Fargo & Company questioned the market reception to the recent plumbing price increase, the drivers of the expected volume slowdown in the second half, progress on strategic sourcing shifts, and the typical lag for commodity costs to impact the P&L.

    Answer

    CFO Rick Westenberg confirmed the full-year pricing benefit in plumbing is expected to be mid-single digits and attributed the second-half volume outlook to some Q2 sales pull-forward and general macroeconomic headwinds. He also noted the commodity cost lag is typically two quarters and reiterated the focus on diversifying the supply chain away from China.

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    Sam Reid's questions to Masco Corp (MAS) leadership • Q1 2025

    Question

    Sam Reid asked about Masco's strategy in the new construction channel, particularly regarding competitive pricing pressures. He also inquired about performance differences across the brand portfolio, such as between the home-center-focused Delta brand and the higher-end Brizo brand, in light of recent economic pressures.

    Answer

    President and CEO Keith Allman reiterated that Masco's focus remains on the repair and remodel market, which constitutes over 85% of its business, and that the company selectively engages with new build customers who value its innovation. He declined to detail channel-specific pricing strategies. Allman noted that higher-end products are holding up relatively well, while pressure is being felt in retail and DIY paint, but did not provide specific brand-level performance details.

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

    Sam Reid's questions to Mohawk Industries Inc (MHK) leadership • Q2 2025

    Question

    Sam Reid inquired about where competitive pricing pressures are most acute in the U.S. and whether peers are passing through tariff-related costs. He also asked if the company's ERP transition provides better data on smaller customers to manage pricing and inventory.

    Answer

    President & COO Paul De Cock stated that Mohawk is implementing an 8% price increase and expects the industry will have to raise prices further due to higher tariffs. Chairman & CEO Jeffrey Lorberbaum confirmed the new ERP system provides better analytical capabilities but has not yet dramatically changed the company's core strategies.

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

    Sam Reid's questions to Pool Corp (POOL) leadership • Q2 2025

    Question

    Sam Reid questioned why chemical pricing remains deflationary if competitive pressures have not intensified and asked if any Q2 sales were pulled forward in anticipation of tariffs.

    Answer

    CEO Peter Arvan acknowledged that while there is no macro reason for chemical price deflation, the pressure seen earlier in the year has persisted without worsening. He stated there was no material demand pull-forward ahead of tariffs, as buying patterns remained normal for the season, and he does not expect a 'whipsaw' effect in Q3.

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    Sam Reid's questions to Pool Corp (POOL) leadership • Q1 2025

    Question

    Sam Reid asked about the drivers behind the swing in equipment sales from Q4 to Q1, the mix of maintenance versus discretionary spending within the equipment category, and the philosophical outlook for 2026 given the current market dynamics.

    Answer

    CEO Peter Arvan attributed the Q4-to-Q1 swing in equipment sales primarily to the impact of hurricane-related repairs in Florida during the prior year's Q1. He stated he has not seen a significant trade-down in technology for equipment. Regarding 2026, he expressed confidence in the growing installed base for maintenance but noted that new construction recovery would depend on an improving macro environment, while also observing that new construction activity is already significantly down from its peak.

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

    Sam Reid's questions to DR Horton Inc (DHI) leadership • Q3 2025

    Question

    Sam Reid of Wells Fargo asked about D.R. Horton's third-party broker relationships, including the attachment rate and commission levels, and whether there was a competitive response to peers. He also sought details on the composition of Q4 incentives, specifically the role and uptake of the 3.99% rate buy-down.

    Answer

    EVP and COO Michael Murray confirmed a broker attachment rate north of 80%, while SVP Jessica Hansen noted commissions average about 270 basis points. President and CEO Paul Romanowski described the 3.99% rate as a community-specific traffic driver, stating the average closing rate was just over 5% and that rate incentives are the largest component of the incentive mix.

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    Sam Reid's questions to DR Horton Inc (DHI) leadership • Q3 2025

    Question

    Sam Reid of Wells Fargo & Company asked for details on third-party broker relationships, including attachment and commission rates, and the composition of Q4 incentives, particularly the uptake and purpose of the 3.99% rate offering.

    Answer

    EVP & COO Michael Murray confirmed the broker attachment rate is over 80%. SVP Jessica Hansen added that commissions impact results by about 270 basis points. President and CEO Paul Romanowski described the 3.99% rate as primarily a traffic driver, noting the average rate on closings was just over 5% and that rate buydowns are the most significant incentive.

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    Sam Reid's questions to DR Horton Inc (DHI) leadership • Q2 2025

    Question

    Sam Reid of Wells Fargo & Company asked about the outlook for community count in 2026 if demand remains soft and whether the reduction in the delivery guide was concentrated in specific geographies like Florida and Texas.

    Answer

    Executive Jessica Hansen explained that future community count decisions are made at the local market level and that it's easier to slow down growth than to accelerate it. An executive response confirmed that softer markets like Texas and Florida would naturally see fewer starts, but this is balanced by growth in newer, less-supplied markets.

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    Sam Reid's questions to KB Home (KBH) leadership

    Sam Reid's questions to KB Home (KBH) leadership • Q2 2025

    Question

    Sam Reid of Wells Fargo asked about the metrics used to decide when to walk away from lot options, as the company did with 9,700 lots, and the risk of further cancellations. He also inquired about the broker attach rate in Q2 versus Q1 and any changes in commission rates.

    Answer

    Chairman & CEO Jeffrey Mezger described a fluid, multi-stage approval process where deals are re-evaluated based on market conditions and return criteria, leading to the cancellation of early-stage lots that no longer met underwriting standards. President & COO Robert McGibney stated the broker participation rate was around 70% in Q2, up slightly from Q1, with a typical commission rate of about 2%, noting they haven't seen higher commissions drive more sales.

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    Sam Reid's questions to KB Home (KBH) leadership • Q1 2025

    Question

    Sam Reid asked for a breakdown of how the company expects to achieve its second-half delivery goals, questioning the balance between improved cycle times and a higher mix of spec homes. He also asked why inventory home deliveries were below expectations in Q1.

    Answer

    COO Rob McGibney explained that the second-half delivery plan is achievable through a combination of improving cycle times towards the 120-day goal and selling available inventory. CEO Jeffrey Mezger attributed the Q1 miss on inventory sales to being 'a little slow' in implementing the necessary price adjustments, which were not made until mid-February, thus missing the window for more Q1 closings.

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

    Sam Reid's questions to Ferguson Enterprises Inc (FERG) leadership • Q3 2025

    Question

    Sam Reid requested a deeper analysis of the accelerating growth in Waterworks, asking about specific subcategory drivers and bidding activity tied to new residential construction. He also asked for context on the wide range of outcomes implied by the updated Q4 guidance.

    Answer

    CEO Kevin Murphy credited the Waterworks growth to successful business diversification into public works and treatment plants, and noted surprisingly supportive bidding activity in new residential construction. CFO Bill Brundage explained the wide Q4 guidance range reflects market uncertainty but that the company expects a solid quarter, with mid-single-digit growth at the midpoint.

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    Sam Reid's questions to Ferguson Enterprises Inc (FERG) leadership • Q4 2024

    Question

    Sam Reid of Wells Fargo & Company inquired about pricing trends for finished goods, which constitute the majority of revenue, and asked for details on SG&A efficiencies and growth drivers.

    Answer

    CFO Bill Brundage noted that finished goods pricing was broadly flat in FY24, below typical low-single-digit inflation, with price increases being more 'spotty'. He also explained that SG&A deleveraging was largely driven by deflationary pressures, and the company manages its labor costs, which are nearly 60% of the total, in line with volume trends. CEO Kevin Murphy added that they continue to invest in technology and facilities to support long-term growth.

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