Sam Reid

Paul guided to similar lot cost inflation into Q4, with development cost savings not flowing through until 2027-2028.

Bill attributed the 8% SG&A dollar increase to a 9% rise in active communities, with leverage returning once absorption and pricing stabilize.

Romanowski said ARM usage remains low single digit. Hansen added temporary buydowns layered on top were low double digit percentage, up from mid-to-high single digit. Thirty-year fixed remains primary.

Hansen explained the warranty recovery was from San Antonio market settlement. Overall warranty costs slightly below typical this quarter. Expects 30-60bps normal range going forward.

Hansen confirmed they leaned into 3.99% as expected. Backlog mortgage rate now below 5%. Rate buydown recipients rose to 73% of closings from 72% sequentially.

Wheat explained large settlements drove the warranty increase and impacted reserve model factors. Expects lot costs to continue increasing incrementally with stick and brick savings as an offset.

Romanowski said the 3.99% rate is largely a traffic driver and community-specific. Average rate in backlog was just over 5%, with rate buydowns about 1 to 1.5 points below market.

Murray said broker attach rate remains north of 80%. Hansen noted average commission stayed flat at about 270 basis points impact on closings.

Community count decisions are market-level. Easier to slow than accelerate. FY2026 plan dependent on local conditions and sales pace.

Softer Texas and Florida markets naturally getting fewer starts. Newer, supply-constrained markets potentially growing beyond expectations.

Backlog margin consistent with 21.5-22% guide. Prevailing offered rate $4.99 to $5.99 depending on product, no meaningful change from prior quarter.

Currently seeing good labor and material access. Don't expect significant inflation over next 12 months. Market share provides leverage.

No geographic concentration of unsold inventory. Increase attributed to improved cycle times and sales slightly below expectations.

September was lowest margin month but not quite at the Q1 guide level, implying further incentive increases expected.

Declined to itemize the investments but said they map to the three Investor Day priorities and that promotion is not the focus.

Pivoted to category growth and innovation without addressing whether retailers are asking for price give-back from the refunds.

Jon confirmed no one-time or pull-forward benefit. Beat vs internal expectations driven by volume exceeding elasticity assumptions. Delta grew high single digits with strength in every channel. Share gains across wholesale, trade, and e-commerce.

Jon declined channel-level pricing detail but confirmed consistent execution across all channels with 6% segment-level benefit. Elasticities not as severe as modeled. North America high single digits across all channels.

Jon declined channel-by-channel pricing detail. Emphasized strategic revenue management approach with price elasticity analysis and competitive benchmarking. Key point: growing share while taking price demonstrates competitive positioning.

Jon described job-site delivery as early to mid-innings, started in dense markets with micro distribution sites. Economics of sales reps described as a true partnership with HD, some joint, some Behr-funded depending on initiative. Leadership changes at Behr recently made.

Jon confirmed pricing executed according to plan. Emphasized pricing as last resort after footprint optimization, supplier concessions, and cost structure. Rick indicated continued pricing traction sequentially without specifying Q4 magnitude.

Jon gave channel-by-channel color: e-commerce strong growth, wholesale low single digits, retail relatively flat to slightly down. Expressed confidence in even stronger retail results in 2026 based on plans already in place.

Rick confirmed diversification to multiple countries continuing. Jon added 29 US manufacturing facilities. Commodity lag is approximately 2 quarters from spot to P&L.

Rick declined channel-specific pricing details. Quantified 3% Q2 price benefit, mid-single-digit full year. 2H volume softness attributed to combination of pull-forward unwind and macro headwinds.

Keith confirmed higher-end brands still performing relatively well, e-commerce and international plumbing gaining share. Pressure concentrated in retail and DIY paint.

Keith deflected the new-build competitive question by reaffirming R&R focus (85%+ mix). Declined to share pricing strategy by channel for competitive reasons.

Rick clearly denied any meaningful channel inventory build ahead of tariffs in Q4.

Keith cited structural fundamentals (equity, home age, millennials) and the stabilization trend entering 2025 vs prior year. Expects industry return to growth in 2026.

CFO ranked inbound freight as the biggest margin driver, customer mix second, partially offset by supply chain gains, but declined to size them.

Arvan emphasized new products are focused on technology and market expansion, not cost reduction. Private label is a mix of domestic production and some imports, consistent with historical sourcing. Product strategy targets highest quality professional-grade items.

Arvan declined to provide specific prebuy margin data, noting it varies by customer, product mix, purchase volume, and customer size. No single formula applies across the early buy program.

Arvan declined to preview Analyst Day content but expressed confidence attendees would leave more convinced than ever about POOL's positioning.

Arvan could not quantify a specific HELOC rate threshold but noted homeowners have highest equity levels ever. Lower rates and more liquidity generally support large renovation projects and new construction.

Arvan acknowledged chemical price deflation persists from earlier in the year but sees no macro backdrop suggesting further declines. Demand is good in the heat of the season.

Arvan saw no material tariff-related demand pull-forward. Business is predominantly daily pickup transactions, so buying patterns remained normal.

Arvan expressed confidence in growing installed base and demand for automation but acknowledged too many macro unknowns to forecast 2026 specifically.

Arvan attributed equipment swing to Florida hurricane repair demand normalizing. No trade downs observed. Equipment demand roughly 4:1 maintenance vs new construction.

Arvan was candid that 6-9% growth requires lower rates and housing market recovery, though long-term demand fundamentals remain strong.

Management explained the Q2 overshoot as slower community close-outs and reaffirmed 3-5% growth for the remaining quarters.

Management gave directional color on elevated incentives but declined to quantify beyond the margin guide.

Ossowski noted ARMs at 9% vs 7% prior year (modest increase). FS pretax decline driven by lower volumes, lower gain-on-sale margins from rate increases, and higher technology investments. Expects improvement over balance of year.

Marshall confirmed limited surgical price cuts in some communities but mostly related to the two impaired communities. Headline price-to-incentive relationship managed carefully.

Ossowski attributed Q4 incentive increase to clearing spec inventory, closing extra ~100 units above guide. Financing incentives flat; increase was price discounts on specs.

Ossowski confirmed Q4 house costs at $78/sqft, 2026 guide flat to slightly down including tariff impact. Some lumber and labor help. Labor available in the market.

Marshall confirmed 9-12 month development cycle means current savings benefit back half 2026, fully impacting 2027. Favorable for future lot cost inflation.

Ossowski attributed Q3-Q4 margin decline to elevated incentives, spec inventory clearing flowing through closings, and tariff impact concentrated in Q4.

Marshall noted Del Webb was one of the better-performing segments in Q1, acknowledged April seasonal decline with unusual day-to-day volatility but maintained long-term confidence.

Beckmann declined to give exit-rate detail, steered to the midpoint, and said the range will be narrowed at Q3 as in prior years.

Jackson said the lag may extend slightly and incremental content is modest because most converts are spec builders with limited variability.

CEO said labor concessions pass through to the job site, not BFS margins. Labor has relatively modest margin. Install value comes from efficiency and off-site benefits, not labor markup.

CEO said sustained growth from January through May is typical pattern. Doing what it's supposed to. Everyone just wishes it were a little better and broader.

CFO confirmed rent and insurance inflation embedded in 2026 expectations. Insurance subject to utilization and actuarial updates. Year-end surprises are a risk they aim to mitigate.

CFO confirmed flat value per start: no material change in square footage, substitutions, or cost inputs. Some manufacturer cost increase murmurs which would benefit pass-through revenue.

Kevin explained HVAC seasonal build and large-capital-project inventory, expecting HVAC to normalize.

Kevin acknowledged continued remodel pressure but said the higher-end consumer holds up better, with Ferguson Home up 3% and healthy showroom traffic.

Bill said resi bidding activity hasn't fallen off significantly but the timing of releases is uncertain, expecting near-term pressure on new-resi Waterworks.

Murphy pointed to mid-single-digit growth as the likely Q4 midpoint, with the wide range reflecting tariff and price-increase timing uncertainty.

Murphy credited Waterworks diversification (public works, treatment plants, meters) and called residential new-construction bidding surprisingly supportive over 60-90 days, though cautiously.

Kevin: no pronounced turndown or change in builder activity; residential Waterworks bidding activity encouraging; the softness is a mix shift toward Public Works within a balanced business.