Matthew Bouley

Paul expects the first-time buyer mix to hold near two-thirds, with some room to move upmarket as communities penetrate.

Bill said incentives improved slightly but will stay elevated, supporting a relatively stable margin outlook into Q4.

Murray said ARM uptake is not having significant material impact. ARMs at 10%, down from 13% sequentially. People still strongly prefer 30-year fixed rate.

Romanowski attributed margin beat to combination of stick and brick savings, moderated lot cost increases, and strong demand allowing incentives to be held slightly better than expected.

Murray said incentive costs increased throughout Q1 from providing buydowns when rates were higher. Lower sustained rates could reduce costs but not yet in guidance.

Romanowski said rates near 6% spur activity. Too early to call spring trajectory but feels good about inventory position, community count, and early Q2 sales to reaffirm guidance.

Romanowski said lot cost won't shift much in next 12 months. Some flattening in development costs but not overall land valuations. Hansen highlighted stick and brick cost reductions as the better opportunity in FY2026.

Murray said lot availability is unprecedented but emphasized they cannot run to zero profit margin. Continuing to respond to market on a day-to-day and week-to-week basis at each community.

Romanowski said community count growth expected to moderate from double-digit to high then mid single-digit going into 2026. Feels good about new market progress.

Romanowski described demand as choppy based on rate moves and news cycle. Said they've been consistent with rate offerings and pleased with July trends so far.

Recent sales uptick supports starts acceleration. Compressed build times allow operating with lower inventory. More nimble response to demand.

Traffic still decent but requires more incentives to convert. March and April sales pace better than February. First-time buyers less market-sensitive.

Confident in housing and lot inventory position. Spring selling season needs to deliver. Positioned to achieve 90-92K guide.

Q2 margin expected perhaps a bit lower than December given 7% rate environment. But spring historically brings better selling season.

Management explained both improved cycle times and expected starts ramp into spring will support the delivery target.

Square footage down 1% sequentially and YoY. Attached product at roughly 15% of closings. Continued lean toward smaller product for affordability.

Confirmed one-time and isolated to Q2 2026 but gave no sizing or timeline for the expected return.

Gave the specific assumption: low single-digit inflation in the first half stepping to mid-single digits for both segments.

Jon confirmed no dramatic demand change in Europe to date. Commodity pressure present similar to North America. China remains the challenging market. Europe holding in well with Hansgrohe gaining share.

Jon attributed maintained guidance to geopolitical/macro uncertainty including oil shock impact on economy and consumer. No meaningful demand change observed yet. Rick noted pricing comps get tougher in H2 as mid-2025 price increases anniversary.

Rick confirmed mid-single-digit commodity inflation in Q4 and baked into 2026 guide. Six-month lag from spot to P&L. Copper at ~$6/lb COMEX not fully contemplated but team has demonstrated ability to offset through cost/pricing actions.

Rick confirmed mid-single-digit pricing benefit expected for full-year 2026. As mitigation actions were implemented mid-2025, YoY comparisons will moderate through 2026. Jon emphasized strategic revenue management discipline and continued share gains alongside pricing.

Rick attributed builders hardware decline to industry softness plus a planned shipping process change that curtailed Q3 shipments. Not expected to be a significant full-year impact.

Rick isolated three Q3 margin drivers: (1) $15M from 145% China tariff window (anticipated), (2) softer industry volumes especially China, (3) higher-than-typical inventory reserves. Incremental new tariffs ($10M) are a Q4 event.

Jon outlined focus on profitable top-line acceleration via digital (e-commerce, digital marketing, strategic revenue management). Strategy and portfolio unchanged. On listening tour during first 100 days.

Rick declined to size potential copper or reciprocal tariff changes, citing uncertainty on HTS codes and final rates. Committed to transparency once impacts are known.

Rick clarified targeting full $675M annualized mitigation by end of 2026. In 2026, mitigation leans more heavily into sourcing footprint changes vs pricing/cost.

Keith firmly stated no structural change to profitability potential. Pipeline of cost initiatives very solid. Characterized uncertainty as timing issue, not capability issue.

Keith acknowledged some structural shift from baby boomers aging into do-it-for-me, but countered with millennial formations favoring DIY paint as low-cost, high-impact home project.

Rick described combination of sourcing shifts, supplier negotiations, and pricing but declined to quantify specific components. Confirmed net tariff impact factored into guidance.

Jackson confirmed an active pipeline and said elevated leverage is cycle-driven rather than debt-driven, so it does not constrain deal appetite.

Jackson walked category by category, noting petroleum-linked pass-through, flat pricing in most lines, and continued YoY declines in EWP and some millwork.

CEO said primary focus remains variable costs matching people to work. Need to digest current actions before taking another pass. Will continue evaluating as year progresses. Nothing new announced.

CEO rank-ordered: specialty products biggest driver, inflationary fuel impact second, then starts impact/competitive dynamics/mix roughly comparable in magnitude.

CEO explained different starting points, smaller home sizes, content per home, and share dynamics vs Investor Day. Emphasized market recovery doesn't take much to generate meaningfully better numbers.

CEO attributed to exit margin levels and competitive dynamics, not SAP. Believes approaching bottom on margins. Real question is when turn happens.

CFO attributed 20bps sequential improvement to better-than-expected multifamily and R&R performance, worth about $8M. Still expects sequential declines through rest of year.

CEO gave detailed answer on OTIF performance, product substitutions, digital twin optimization, vendor partnerships and capacity positioning for eventual recovery.

CEO confirmed commitment to share growth in any market. Described Q1 as culmination of hard work over the past year at the local market level.

CFO confirmed margins drifting lower through year. CEO added normalization is mostly done, now hand-to-hand combat in specific markets.

CFO confirmed value-add mix supports margins and the 30-32% range is reasonable. CEO added they plan to protect share while maintaining healthy margins.

Management addressed market stability, affordability battles, and builder pace modulation directly. CFO added detail on home size stabilization and multifamily headwinds.

Management said the Q4 step-up was planned all year, driven by dirt sales built and closed in the fourth quarter.

Management pushed back on the high end, citing homes left to sell and elevated incentives, sticking to the 24.5-25.0% guide.

Marshall firmly stated BFR will not be a focus regardless of executive order outcome. Better capital deployment opportunities exist driving higher shareholder returns.

Ossowski confirmed financing incentives flat for 3-4 quarters; Q4 increase driven by spec price discounts. Hope to pull back on discount lever as spec levels normalize in spring.

Marshall declined to elaborate extensively, noting the structural housing shortage is rooted in local politics and will take coordinated federal, state, and local effort to address.

Marshall clarified 50% spec is mathematical result of fewer BTO sales, not a strategic shift. Actual spec units are down, and the company remains focused on increasing dirt sales.

Marshall quantified margin differentials: move-up +200bp above first-time, active adult +200bp above move-up. Del Webb returning to 24-25% of closings in 2026.

Ossowski noted $79/sqft reflects 6-month-old contracts; teams pushing for reductions but increases in some categories offsetting decreases in others.

Marshall emphasized land spend reduction is deferral not cancellation, 244K controlled lots sufficient for growth, and $5B may buy as much as $5.5B if land prices ease.

Ossowski explained that as spec inventory approaches target range, incentive pressure should ease, offsetting the seasonal headwind in summer months.

Marshall expressed confidence that Q4 exit-rate incentives combined with spring selling season and healthy economy are sufficient to deliver margin guidance.

Marshall confirmed ASP increase of approximately 3% is sufficient to offset combined land and construction cost inflation in the margin guide.

Bill directly addressed backlog and order build across commercial mechanical, industrial and waterworks.

Bill separated finished-goods inflation compression from continued PVC deflation with specifics.

Kevin gave calendar-Q4-to-date growth of ~3% and said early 2026 looks similar, but deferred formal calendar 2026 guidance to February.

Bill quantified large capital projects at mid-to-high single digits of revenue with data centers over half, and flagged likely lumpiness given long project gestation.

Kevin confirmed accelerating data-center construction with no pauses or cancellations, stepping up across multiple geographies.

Kevin addressed the mid-single-digit calendar guide, flagging softer H2 growth on residential weakness while large capital projects sustain non-res.

Bill quantified Q2 cost growth at ~5.5%, mostly from 5% volume; FTE headcount roughly flat YoY, ~20bps underlying OpEx step-up; cost actions to slow growth in H2.

Management said investments (trainee class, HVAC rollout) are somewhat front-loaded with returns over time, and they would take cost-reduction actions only if volumes turn negative, which they do not expect.

CFO said finished-goods pricing (about 85% of revenue) was flat in Q1 and should reach low-single-digit inflation in the back half; steel pipe and PVC remain under pressure while copper returned to inflation.

Jon confirmed cancellation pace has remained consistent from Q2 to Q3, with no effect yet from late-quarter rate declines. Adjustments continue community-by-community to support affordability-challenged buyers.

Stuart explained that lower market rates unlock the existing home ecosystem as a flywheel, enabling move-up activity across the entire housing market, the incentive value extends beyond just the rate buydown cost.