Anthony Pettinari

Hassfurther attributed strong Q2 demand to e-commerce and Prime Day, ruling out prebuy given tight capacity.

Tom declined to comment on pricing negotiations or Pulp & Paper Week dynamics. Called the situation muddy and declined to elaborate on customer pricing discussions.

Kent said elevated stock comp will persist through 2028 as old awards vest, stepping down somewhat each year. Other costs dependent on market conditions, at least elevated through Q2.

Mark said PCA is opportunistic between recycled and virgin kraft. Tom emphasized PCA is primarily virgin kraft and won't change that, can optimize performance better with virgin kraft. Will use both where appropriate for customer needs.

Tom said PCA must run mills full out, things will be tight, no additional open-market board available. Declined to comment on broader industry implications.

Tom confirmed identical implementation timeline for Greif plants.

Mark outlined: ~$50M for gas turbine engineering/ordering, Ohio box plant completion, Jackson winder project ($100M+ over 2 years), Counce #2 machine upgrade starting March, Syracuse project finishing. Gas turbines bulk spending in 2027-2028.

Mark expects CapEx roughly flat as Ohio and NY projects finish. Greif acquisition avoids need for major new plant projects for next couple years. Energy projects are next big capital category with 2.5-year timeline and 1.5-year payback. Not currently selling electricity back to the grid at any facility.

Kent confirmed OCC furnish moving from low 20% to about 30%. Mark views Massillon and Riverville as opportunity to make more recycled medium, which PCA needs. 100% recycled medium works well in PCA's system combined with high-performance liner grades.

Recycled mix moving from ~20% to ~30%. Massillon 100% recycled mill can swing between liner/medium. Greif plants close to PCA's Ashland (44 miles) and new Newark (90 miles) plants.

Tom said Glendale delivers 2x output at lower labor cost vs average plant. ~80% of converting operations already modernized over last 8 years.

Mark said no substantial impact yet. Purchasing team actively monitoring tariff implications on imported equipment. No project timelines changed.

Mark said about $250M of 2025 CapEx for the four big projects, with Ohio greenfield being the largest.

Tom declined to give percentages. Said process started about a year ago and will take time due to long-term customer relationships.

Paul cited strength in northern and Midwest markets and weakness in the Northwest, including Seattle, tied to software job layoffs.

Romanowski said labor is plentiful with more competition driving savings. A portion of stick and brick savings came from labor. Expects continued savings in Q3 and Q4 closings.

Murray said good demand in Texas and Florida. Most markets performing well in line with expectations. Slight softness in markets with heavy software industry exposure.

Romanowski acknowledged need for supply and demand-side solutions but didn't endorse specific policies. Hansen emphasized DHI is best positioned to benefit from any first-time buyer demand pickup.

Romanowski said positioned for growth with 12% community count increase. Spec decline is deliberate from compressed cycle times, not a demand signal. Can build homes faster than ever before.

Murray identified Jacksonville and Southwest Florida as specific markets with excess inventory and slow demand absorption. Florida is a large component of their Southeast region reporting.

Wheat explained FY2025 was unique with excess liquidity and below-target leverage enabling aggressive buybacks at depressed prices. Going forward, repurchases will be governed by cash flow generation.

North and East outperforming due to supply constraints and higher community count growth. Strong demand from local population as new communities open.

Labor assumed flat. Good availability across markets driving cycle time improvement. Vendors ready to support starts ramp if needed.

Margins on attached/smaller product very similar to traditional detached. Right product at right price delivers similar returns.

No significant change in buyer credit profile. Move-up buyers slightly stronger. 59% of mortgage company buyers were first-time homebuyers.

Stick and brick not driving margin moves. Expected relatively flat through FY2025. Lumber benefit in closings will be behind them.

Pettinari pressed on 2H startup-cost cadence; Lewis reaffirmed ~$35M full-year (~$5M in 1H, ~$30M in 2H) but declined a specific 3Q/4Q split.

Lewis described Benepack as filling geographic gaps in Belgium and Hungary, acquired below replacement cost. Strategic customers overlap with Ball's most important partners. Top end of growth range even before acquisition.

Rabbitt compared to Florida Can, both newer facilities never run continuously needing labor and operational procedure improvements. ~$1.7B volumes in 2026 with near-flat operating earnings. Material contribution expected in 2027.

Fisher distinguished between two headwind types: sudden-volume inefficiencies from Q2 are behind them, but ongoing tariff-related inefficiencies persist. Long-term supply chain optimization under evaluation.

Rabbitt guided 2026 CapEx at or slightly above depreciation, up from below D&A in 2024-2025. Fisher noted Concord, NC ribbon cutting with strategic customer but actual capital deployment is further out and contingent on market growth.

Fisher broke down: Florida Can $1-2M drag, tariffs $2-3M, balance from delivery inefficiencies. Florida Can expected breakeven by Q4 and incremental profit in 2026.

Rabbitt said minimal impact on effective tax rate. Benefits mainly from accelerated depreciation and EBITDA-based deduction limits but not material to trajectory.

Fisher noted energy category returning to mid-to-high single-digit growth via innovation and constructive pricing. Non-alcohol innovating well. Beer expected to get more aggressive in peak season.

Fisher confirmed Florida Can is fully integrated, staffed, and running. Tight on specific can sizes, asset will be leaned on heavily during peak season.

Fisher acknowledged productivity gains from restructuring have been fully lapped. New investments will provide next wave, but volume growth needed to expand margins further.

Fisher noted tight utilization across Europe after adding two large facilities (UK, Czech Republic). May need additional capacity planning for 2027-2028 if growth continues.

Tony conceded grade and location inefficiencies openly rather than deflecting, and volunteered that logistics costs are running $300 million above plan.

Tony said the opposite happened and Ken supported it with industry inventory levels of roughly 2.5 to 2.6 million tonnes, down from 2.8 to 2.9.

Tony detailed by grade: SBS now sold out from customer wins and project conversions, selectively pushing prices up but pricing still below levels from a couple of years ago. CUK solid system business with ongoing investment. CRB mills older, actively moving business to CUK/SBS with better customer performance. Overall impressed with people and assets but returns not yet adequate. Work in progress on planning and reliability.

Tony provided specific cadence: first $50 (the -20+70 net) fully implemented by July 1 with progressive implementation through May/June. Second $50 (June announcement), if successful, expected fully implemented by September. Both progressive rather than immediate.

Tony described 80% of consumer businesses at top of market with 20% still needing work. Grade-agnostic approach confirmed, can offer SBS, CRB, CUK, or even microflute corrugated depending on customer needs. Recently landed a large drinks company contract covering both consumer and corrugated across both continents. Laurent emphasized the suite of substrate options creating high-quality customer conversations and a unique competitive position.

Ken quantified full-year pricing benefit at $830-840M vs $900M expected at mid-year, a small reduction due to Q4 demand weakness. Deferred segmental breakdown to follow-up calls.

Tony detailed Covington coal-to-gas project with 20-50%+ IRR, reducing group CO2 by 1.2%. Colombia biomass boiler coming next year. No material AI/data center impact on mill energy costs observed. Ken noted kraft mill systems are generally CO2-positive and self-sufficient on power.

Ken confirmed containerboard integration at ~90% post-Forney closure, consumer at ~60% all grades. Tony praised legacy WestRock's carton rationalization (~15-20 closures over years), sees it as a very good investable business across food/beverage, health/beauty, and consumer.

Tony explained Mexico weakness is mix of tariff impact on 1-2 large customers and deliberate exit of deeply unprofitable legacy WestRock business. Gave example of border plant going from -$0.5M/month to +$0.5M/month by exiting one large unprofitable customer.

Tony detailed Mexico risk is indirect through customer demand (food/produce packaging), while Canada risk is direct with one mill exporting to US that would become uncompetitive with 25% tariff.

Tony assessed each consumer grade: converting assets excellent, CUK business strong with global positioning, SBS opportunities identified, CRB is #2 but needs strategic clarity as competitor invested heavily.

Jon confirmed Watkins grew in Q1 but declined to break out specific rate. Hot tubs is biggest business with share leadership. Saunas seeing outsized growth off 1% household penetration base. More detail promised at May Investor Day.

Rick noted higher oil prices are a headwind to consumer confidence and disposable income broadly. Masco products tend to be lower-ticket R&R items, more resilient in these environments. Not immune but relatively insulated.

Jon linked DIY to existing home sales at multi-decade lows. Pro paint is the bigger strategic focus: $10B+ market, less than 10% share, 200bp gains since 2019. HD aligned on pro growth with job-site delivery, trade credit trials, expanded sales force.

Jon confirmed upward cost pressure in DA but declined to comment on prospective pricing or conversations with HD. Price/cost mechanism in place with retail partner. Will update in future quarters.

Jon confirmed fastest growth in upper premium/luxury (Brizo, Newport Brass, Axor). Hansgrohe growing share in most markets except China. Watkins wellness cited as exciting long-term opportunity with 5-6% hot tub and 1% sauna household penetration.

Jon confirmed luxury/upper premium holding up best, some mid-tier trade down. Rick clarified full-year plumbing growth is primarily pricing, partially offset by lower volumes.

Rick confirmed no meaningful demand inflection around April 2nd, just typical seasonal inventory trends. Partial Q4 inventory build unwound as expected.

Rick outlined continued sourcing diversification journey, 29 US manufacturing facilities, majority of US market sourced domestically. Accelerating China exits but full migration extends to 2026.

Rick detailed plumbing expects positive price/cost dynamic, decorative assumes price/cost neutral per channel partner arrangement. TiO2 and resins showing upward pressure.

Rick confirmed cost savings remain a huge priority and will continue driving performance, but did not quantify a specific dollar target for 2025.

CFO cautioned the business will be lumpy while being built out, reiterating the $250 million Climate Solutions target through 2030.

Devin identified three drivers: Western log pricing recovery (lagging lumber), harvest volume normalization (South up slightly, West comparable), and overcoming Middle East-driven cost pressures. Significant volume increase in the West expected longer term per Investor Day.

Devin confirmed primary rationale is driving EWP sales in underpenetrated markets. 50% of EWP sold through own distribution. Additional commodity and vendor partnership revenue opportunities.

Devin highlighted TimberStrand's broad end-use opportunity across single-family, multifamily, commercial, and mass timber. Sales and marketing plan in place. Confident in ability to move product even in current housing market.

Lumber at mid-70s (intentionally reduced), OSB at mid-90s. Q4 pricing as challenging as any recent period. Fair bit of mill closures and curtailments industry-wide. Expects profitability in very near term.

Devin agreed scale and integration make sense but noted the combined entity doesn't fundamentally change competitive dynamics for WY given its 10.4M acre base and leading manufacturing position.

Dave Wold noted net debt-to-EBITDA of 4.3x reflects trough wood products earnings. Committed to investment-grade rating. Expects ratio to normalize as EBITDA recovers. Secured $800M term loan at 4.3% effective rate.

Devin called the bill net positive for WY overall. 45Q preserved for CCS. Renewable incentive cutoff pulled forward to July 2026, but several projects expected to get under the wire. TRS capacity increased from 20% to 25% and 100% bonus depreciation reinstated.

Devin explained SYP stabilized because producers near cash breakeven are pulling back production. SPF prices rising on duty anticipation from 14% to 34%. Expected significant pricing volatility as new duties take effect.