Garik Shmois

Arvan said he does not see anything structural that would set up a meaningful change in chemical pricing. Could happen market-to-market from competitive actions but no broad-based risk visible from current vantage point.

Hart cited greenfield fleet-average convergence, seasonal and market-level capacity optimization, and POOL360 adoption driving cost-to-serve efficiencies. Higher digital penetration at locations creates opportunity to adjust the operating model.

Arvan attributed Horizon weakness to irrigation business tied to housing construction. Maintenance improving but limited footprint. No outsized growth expected but held to same return expectations as core business.

Arvan confirmed 5-8 new locations planned, unlikely more than 8. Focus shifted to execution and returns on 50-plus greenfields opened since 2021. ROI expectations sharpened with higher scrutiny on capital allocation.

Arvan confirmed early buy programs are essentially unchanged from historical norms. Only one year during COVID peak were they modified. POOL participating strategically as always.

Hart confirmed SG&A growth slightly higher due to accelerated technology investments. Q4 expected 3-4% increase, bringing full year to approximately 3%.

Arvan attributed Europe's 2% local currency growth to southern countries leading. France was slightly down. Team is more optimistic with trends continuing into July.

Hart indicated back-half margin benefits from more favorable pricing and less negative product mix, though mix still a year-over-year headwind.

Hart confirmed both April and June price increases are included in guidance, contributing to the 1% incremental pricing benefit.

Arvan indicated continued consolidation opportunities but nothing out of the ordinary expected.

Arvan noted immigration policy targets recent migrants, while the construction workforce predating elevated migration is still in place.

Ronnie provided deep dive into diesel impact across operations, surcharges cover downstream/delivery, VWO processes reduce fuel usage in production. Mary Andrews noted Q2 will feel squeeze most acutely with cost growth potentially in high single-digit range.

Ronnie said midyears need visibility into demand improvement. Concrete side needs single-family recovery; asphalt side benefits from public momentum. Better positioned vs 2025.

Tom cited 150bps of mix headwind from acquisitions and higher base shipments. Ronnie noted trailing 3-month backlog prices showing acceleration and January letters sent.

Tom said midyears are more tailwind for 2026. Very pleased with acquisition pricing in both North Carolina and California. Mix adjusted pricing remains the key metric at 8%.

Tom said pricing is as expected. Acquisition performance was good in Q1 with ~$150M expected full-year contribution. Midyear discussions just starting.

Tom confirmed midyear increases will be announced but are not included in guidance. Impact will be bigger on 2026 than 2025.

Heidi framed the 401(k) reinstatement as protecting jobs/execution capacity, not a short-term signal; Ben noted tariffs still pressuring 2026.

Al guided to mid-20% as historical benchmark; PCG dependent on region mix; Heidi noted simplification enterprise priority driving cost structure improvements.

Al explained that North America is higher-margin (small/midsize custom color) and slower growth there vs other regions drives unfavorable mix shift in PCG and Consumer Brands.

Heidi said no material pull-forward of customer inventory ahead of tariffs; not an active conversation across business units.

Heidi said DIY was weaker than expected but investment maintained in strategic partnerships. Al said pro-paint was under pressure in Q4 and expects improvement as existing home turnover recovers during the year.

Michael clarified aggregates GP dollars at 11% growth midpoint. Implied COGS per ton guide is 3% with only 50bps operating leverage on 2% volume, conservative. Each 1% COGS reduction = ~$35M additional GP. Upside from network optimization across full footprint not yet in guide; quantification expected by midyear.

Ward said base stone growth was actually a mix headwind (20-30% lower ASP than clean stone). No significant geographic mix headwind either, 8% total vs 7.9% organic. West Group had healthier pricing than East, reflecting catch-up. On backlog, Ward signaled strong energy and data center activity without giving specifics.

Ward confirmed infrastructure outlook is directionally stronger. Q1 mix: 33% infra, 36% non-res, 24% res. Expects infrastructure share to grow. Non-res heavy side doing better than expected.

Ward quantified inventory drawdown impact and expects completion by mid-year. Views public spending as more robust than previously thought, offsetting modestly slower private.

Jim noted premix products growth within outdoor living. Randy explained ag pricing mix impact is weather-related, not geographic, with premium products expected to recover in H2.

Jim noted no change in seller multiples or aspirations. Randy confirmed standard winter maintenance practices, nothing unusual in cost timing.