Rafe Jadrosich

Bill said lumber price changes take two to three quarters to flow into delivered-home gross margin.

Murray said land banking is mid-single-digit percent of lot portfolio. Most lots from third-party developers or Forestar. Have been working with developers to adjust takedown schedules.

Hansen said still up low double-digit YoY. Sales up 11% matching community count growth with no absorption decline, a positive sign. Expects moderation to mid-single-digit but timing uncertain.

Romanowski said more balanced inventory vs. a year ago. Encouraged by traffic and interest. Comfortable with community count, inventory position, and field teams heading into spring.

Romanowski said still opportunity for stick and brick savings. Prior starts reduction was intentional to negotiate with trades and suppliers. Guide is flat but believes further reductions possible.

Romanowski acknowledged starts need to increase materially from 14,600. Wheat said community count growth moderating to mid-to-high single digit but still up double digits currently.

Hansen said lot costs up 8% YoY per square foot with best case mid-single-digit and could remain high-single-digit as it takes time to flow through to closings.

Romanowski said near-term lot cost inflation expected to persist at mid-single-digit. Relief from any market softness would take several quarters to flow through to closings.

Romanowski said secondary markets with less public builder competition are showing better performance to plan this year than larger markets with more public builder competition.

No relief in land costs despite softer market. Lot costs up 3% QoQ and 10% YoY. Still very difficult to bring communities online.

Near-term leverage from seasonal volume improvement in H2. Longer-term, market-level adjustments to overhead if volume weakness persists.

Repurchase pace continued into early Q2 given low stock price. No change in overall strategy, flexibility to accelerate on valuation dips.

Lot costs up 10% YoY, 3% sequentially. Base case for continued low-to-mid single-digit sequential increases. YoY should moderate over next few quarters.

Lot cost inflation moderating from double-digit to high-single-digit, expected to reach mid-single-digit through FY2025.

Beckmann held the full-year fuel headwind, split inbound through cost of goods sold and outbound through SG&A, and cited a 20% rise in surcharge pass-through.

Jackson gave a qualitative answer and flagged it as an emotional rather than data-driven read on optimism fading through the quarter.

CFO walked through capital deployment priority stack: balance sheet first, then core investment, then M&A, then buybacks. Opportunistic purchase during Middle East-driven dip.

CFO confirmed diesel passed through via surcharges and embedded pricing. Both inbound and outbound fuel costs not insignificant. Evaluating closely.

CFO detailed share analysis: Q3 flat to slightly up, YTD flat after structural adjustments. Starts down ~5% lag basis vs 8% sales decline. CEO sees this as evidence of approaching bottom.

CFO attributed to multifamily lapping hitting both truss and now millwork. CEO added pressure across the board from deleverage of value-add facilities. EWP also facing headwinds.

CEO attributed improvement to value-add mix shift (M&A and organic) and continuous improvement culture. Both factors considered durable and real.

CEO noted 70% variable SG&A already adjusting, some fixed cost chunks available. Maintaining strategic vision while managing near-term. Equilibrium forming on share and margin.

CEO explained commodities were attacked first, other categories followed more slowly. Regional differentiation based on utilization and competitive intensity.

CFO attributed to normal seasonality, multifamily stabilization, and acquisition contributions in back half. Not assuming a ramp or market recovery.

CFO confirmed install at 16-17% of sales (~$1.7B), margins in line with installed product categories, with many opportunities to expand.

CEO acknowledged Investor Day targets are a long putt. Share gains in 2025 are modest, centered on digital with focus on defending existing share.

Pointed to first-half plumbing up low single digits net of the investments as the basis for holding the full-year guide.

Confirmed plainly that the investments were not in prior guidance and were an opportunistic use of the refund.

Jon attributed beat to both category resilience and share gains, with share gains likely the larger contributor. All channels contributing, firing on all cylinders.

Rick declined specific copper assumption but indicated late-2025 levels as reasonable baseline. $6+/lb represents a headwind. Taking proactive cost reduction, efficiency, and pricing actions to mitigate. Volatile environment requires ongoing monitoring.

Rick confirmed vast majority of tariff cost hits in H2, with Q3 including $15M from 145% China window (hopefully onetime). $270M annualized is the go-forward run rate, subject to geopolitical changes.

Rick confirmed goal of full dollar + margin offset but declined to commit to 2026 timeline specifically. Will provide 2026 expectations on February call. Sourcing footprint is largest lever but takes time.

Rick confirmed strong underlying demand beyond pre-buy effect, particularly in e-commerce and trade channels. Expects continued market outperformance.

Rick declined country-level exposure detail beyond China $450M. The $70M non-China covers reciprocal tariffs plus steel/aluminum across the diversified sourcing base.

Management said spec reduction is essentially complete and starts will link more tightly to sales as BTO grows.

Management said capital needs drive leverage decisions and it sees no argument for more debt in the current environment.

Marshall quantified finished specs at ~2 per community vs ideal ~1.2. Expects to normalize in 2026 while increasing build-to-order sales mix.

Marshall outlined typical 12-18 month lag from land savings to P&L impact: 6-9 month development cycle plus 4-month construction, so savings today benefit late 2026.

Marshall declined to provide regional incentive breakdown, redirecting to earlier buyer-group discussion. Company does not disclose incentives at regional level.

Marshall noted raw land price stabilization but continued pressure from horizontal development wages and materials. 85%+ of development managed internally.

Wagnes said retail inventories were normal and resi strength reflected true consumer demand in electronics rather than stocking, and flagged a tough Q3 comp.