Keith Hughes

Jackson said the review is continuous and acknowledged excess capacity will remain a struggle until the market turns.

CEO described wave of competitive pressure flowing through P&L similar to job site sequence: lumber first, then value-add, now reaching specialty products on the back side of the build.

CEO confirmed multifamily appealing due to value-add exposure and growing developer relationships. Sees it as a growth vector with good profitability and potential to grow well.

CEO confirmed it's the exit margin trajectory, things got worse through 2025, not that they'll get worse from here.

CEO confirmed starts flowing through truss, EWP a meaningful decliner as COVID-era price gains pull back. CFO added multifamily down 28% is disproportionate impact on manufacturing category.

CFO declined to break out units vs price but explained multifamily truss decline of 46% drove disproportionate value-add decline.

CFO confirmed multifamily flattening now but year-over-year parity not until Q4 due to lapping tough prior-year comps.

CFO confirmed multifamily headwind is front-half weighted. Current volumes stable month-over-month but lapping tough comps. Not enough to drive YoY EBITDA growth in H2.

Corrected the premise directly: volume was strongest in the first half and should stay consistent, with fourth-quarter weather the swing factor.

Gave the cadence within the guided range rather than a point estimate, but confirmed execution matches the original pricing plan.

Mary Andrews quantified Q2 diesel headwind at approximately $25 million. Also noted California ready-mix contributed $10M in Q1 cash gross profit and will be a helpful offset. On reauthorization, Ronnie noted both parties see the need.

Ronnie said both VWO and VWS support continued margin growth. Demand recovery would provide additional tailwind on both cost and commercial sides.

Tom said non-resi recovery is more of a 2026-2027 story. Data centers accelerating, warehouse activity stabilizing, backlogs in non-resi are up.

Tom cited improving operating efficiencies, disciplined spending in cold weather, and delayed costs from weather. Guided full year to low-to-mid single digit increase.

Tom acknowledged cold start but noted weather is baked into full-year plans. Q3 2024 was particularly challenged, creating an easier comp.

Kevin clarified about one-third of Ferguson's customer base is dual-trade today and expects it to grow.

Kevin cited the A2L transition, equipment price increases and a repair-versus-replace consumer, but said it is tough to pinpoint when HVAC normalizes while remaining bullish long term.

Bill: the seasonally lightest quarter compounded weak volumes, a competitive market, longer-lasting deflation and mix; better trajectory into Q3; medium-term 30%-plus GM belief intact.

CFO attributed the 10 basis point gross margin decline to commodity deflation plus mix, as the fastest-growing lines (HVAC, waterworks) carry lower gross margins.

CFO quantified the deleverage directly: ~3% total volume growth against a ~5% total cost increase from wage inflation and continued investment (trainee class, HVAC, large-project teams).

Jim said ready-mix is the business most exposed to subdued new-build residential, with no recovery expected before the back end of 2027, at which point volume and price should move meaningfully.

Jim attributed 2025 strength to Infrastructure business (subterranean concrete products for data centers, chip plants, reshoring projects) plus optimization initiatives taken early in the year. Outdoor Living resilient on R&R despite subdued new build. Good outlook for 2026 driven by reindustrialization demand.

Jim noted weather-delayed outdoor living spring season recovering in April/May, and positive outlook for water and energy infrastructure business.

Jim emphasized unique ability to connect acquisitions into existing platform for early synergy acceleration, driving outperformance over last 5-6 years.

Ward explained a CR would maintain record $72.1B funding plus robust state DOTs (+7%). Even ARTBA projections showing declining 2027 infrastructure spending would be offset by state activity. Infrastructure (~40% of business) would remain ballast regardless of federal outcome. Ward expects new bill on time.

Michael noted the carve-out is clean, discontinued ops EBITDA assumes retained corporate SG&A. Ward confirmed some geographic mix headwind from Central region assets (lower pricing) but sees organizational opportunity. Preliminary 2026 guide is organic, excluding mix.

Ward expects House T&I to lead with a successor bill before 2026 midterms. New bill may have larger highway/bridge allocation than IIJA's $350B despite potentially smaller headline number.

Said the investments span all customers and channels and are longer-term in nature, again without specifics.

Rick explained reserves driven by slow pace of industry sales, higher than typical this quarter. Declined specific dollar amount but dimensioned it as approximately 1/4 of YoY plumbing operating profit decline. Noncash charge.