Stanley Elliott

Asked about the drivers of utilization trends during the quarter, the company's long-term free cash flow generation potential, and whether the focus on growth platforms will continue given the megaproject dynamic.

Answer

Management attributed lower utilization to a slowdown in small and mid-sized projects, not weather. While committed to growth initiatives (new stores, acquisitions) which will consume cash, they expect to be consistently free cash flow positive in 4-5 years. They will remain focused on disciplined growth to capture opportunities, especially from megaprojects.

Asked about the competitive implications of a major big-box retailer acquiring a competitor (SRS), questioning if it would cause customer disruption, change Beacon's strategy, or simply continue the trend of the largest players gaining share.

Answer

The executive does not believe the acquisition will create a different market dynamic or significant customer disruption. He expects the trend of the 'big three' taking share to continue, as scale and investments in areas like digital and talent are key differentiators. He noted the transaction primarily highlights the valuation gap between public and private market assets in the roofing distribution space and does not change Beacon's strategy.