Research Analyst at Loop Capital Markets
Zack Pacheco is an analyst at Loop Capital Markets specializing in building materials and industrials coverage, with a particular focus on companies such as Martin Marietta Materials Inc. and Boise Cascade. He is noted for engaging directly with corporate management during earnings calls to probe into operational drivers and margin forecasts, with his questions regularly cited in key industry earnings transcripts. Beginning his career at Loop Capital Markets, Zack holds active FINRA registration (CRD# 7371293) and operates out of the firm's New York office, demonstrating a commitment to compliance and industry standards. His professional credentials are current, but detailed historical performance metrics and third-party rankings remain limited in public sources.
Zack Pacheco, on for Garik Shmois, asked for more detail on the drivers of the SG&A reduction and guidance on its run-rate for the second half of the year.
CFO Michael Petro advised that for modeling purposes, SG&A as a percentage of sales should be run-rated at approximately 7% for the full year, though he noted the figure may fluctuate between quarters.
Zack Pacheco, on for Garik Shmois, asked for more detail on the Architectural Specialties guidance, specifically regarding cost control sustainability amid volume growth. He also inquired about the breakdown of the WAVE joint venture's contribution, asking how much was driven by tariff mitigation versus market strength.
CEO Vic Grizzle explained that improved Architectural Specialties margins are driven by operating leverage from volume, manufacturing efficiencies, and a better product mix, giving him confidence in achieving over 20% margins. He clarified that the WAVE joint venture's strong performance was due to growth initiatives and effective price-over-cost management, not a stronger market.
Zack Pacheco asked about current bidding activity in the Development segment and for an update on the progress of the sales force hiring initiative, including time to productivity.
CEO Dale Asplund confirmed that bidding activity for development projects remains strong, with the only change being a slight delay in converting quotes to contracts due to macro hesitation. Regarding the sales force, he stated they are progressing well toward their goal of a 50% increase, with a focus on training to accelerate productivity, which typically takes 6-9 months for new-to-industry hires.