Sean Kelleher

Sean Kelleher asked about the slowdown in Architectural Specialties organic growth in the second half of 2025 and the confidence in returning to high single-digit growth in 2026, specifically if project delays from 2025 would benefit 2026. He also inquired about the confidence in Mineral Fiber volume growth in the second half of 2026, following anticipated first-half softness, and which specific verticals are expected to outperform.

Answer

CEO Vic Grizzle explained that the Architectural Specialties slowdown was largely due to strong prior-year comparisons, noting double-digit backlog growth from order intake throughout 2025, which extends into 2027 and underpins confidence for high single-digit growth in 2026, with Q4 2025 project delays factored in. CFO Chris Calzaretta reiterated a flat to up 1% Mineral Fiber volume for the year, with a stronger second half due to seasonality and Q1 weather impacts. Vic Grizzle added that office recovery would be gradual, but contributions from data centers and energy savings initiatives would build, strengthening the second half.

Sean Kelleher asked about the Architectural Specialties segment's organic growth, which slowed in the last two quarters, and the confidence in its return to high single-digit growth in 2026, specifically if project delays from the second half of 2025 would benefit 2026. He also inquired about the confidence in mineral fiber volume growth in the second half of 2026, given an expected softer first half, and which verticals are expected to outperform.

Answer

CEO Vic Grizzle explained that the deceleration in AS organic growth was largely due to strong prior-year comparisons, with current double-digit order intake growth building a strong backlog for 2026 and beyond. He confirmed that project delays from late 2025 are factored into the 2026 guidance. CFO Chris Calzaretta reiterated the expectation for stronger mineral fiber volumes in the second half due to seasonality and weather impacts. Vic Grizzle added that optimism stems from gradual office vertical healing and accelerating contributions from new growth initiatives like data centers and energy savings.