Trevor Allinson

Jessica said the average buydown eased to 1.6% from 1.7%, with backlog mortgage rates at 4.9% versus a roughly 6.5% market rate.

Murray said lot position is as good as ever in company history. Being disciplined on underwriting and passing on deals that don't work in current incentive environment.

Romanowski said industry inventory levels have reduced with more rational starts control. DHI managing starts in line with demand week-to-week. Feels very good about own inventory position.

Romanowski said pockets of elevated inventory remain market to market and within submarkets of larger MSAs, but continuing to right-size across the footprint.

Murray said they'll evaluate community by community. Where margin expansion makes sense they'll take it; where pace drives better returns they'll push volume. Balanced approach unchanged.

Romanowski said Texas is choppy market to market. Leaned into incentives to drive absorptions in Q4. Bright spots exist but elevated inventory in some areas needs to be worked through.

Murray said reduced starts have helped balance inventory and created opportunity to reprice stick and brick costs. Hansen added the industry is being more rational to avoid oversupply.

Murray said resale is not a significant competitive pushback. Older housing stock and less compelling rate incentives from resale owners favor new construction, especially for first-time buyers.

Romanowski said they feel very good about spec reduction progress and expect it to continue trending down. Improved cycle times mean they need fewer specs to generate target closings.

Already pulled back on absorption and starts expectations. Would adjust based on market conditions. Anticipating consistent sales activity in guide.

Land spend already lower than recent trend. Extending development timing and lot takedown schedules. Still committed to lot position but may need lots less quickly.

Too early to assess impact. Noted housing affordability is a stated goal of the administration. Past experience with both tariffs and immigration changes.

Florida and some Texas markets saw inventory buildup impacting sales. Generally pleased with early spring traffic across footprint.

Cited a peer's higher inflation view; management held to mid-single digits as the exit run rate while flagging oil volatility.

Declined to discuss customer pricing but confirmed a price-cost-neutral agreement with the biggest channel partner and named commodity headwinds.

Rick declined to quantify savings, noting they fund both growth initiatives and margin expansion. $8M charged in Q1, $50M total for year on track. Full year benefit more apparent in 2027-2028 as actions complete. Contributing to 2026 margin expansion.

Jon confirmed rebalancing incentives toward top-line growth while maintaining profit as largest component. Building centers of excellence in digital marketing, e-commerce, commercial excellence. Executive committee brings external procurement expertise. Goal: consistent above-market growth.

Rick attributed Q4 DeckArc margin weakness to volume (inventory timing, customer transition, market softness) plus Liberty's severe tariff/antidumping impact. Recast quarterly data provided in appendix for segment comparison. No unusual factors flagged for 2026.

Jon declined to break out BU-level financials. Cited 5-6% hot tub and 1% sauna household penetration, market leadership position. Exiting 2025 with momentum. Expected to at least match plumbing segment growth in 2026, potentially faster given secular tailwinds.

Rick quantified copper-driven commodity inflation as low single digits in Q3, similar expected for full year. Copper at or near COMEX record highs continues as a headwind.

Jon linked DIY recovery to existing home sales, interest rates, and consumer confidence without predicting 2026 timing. Highlighted PRO approaching 50% of Behr business as an offsetting growth driver.

Rick attributed working capital elevation to tariff-driven inflation on inventory and receivables plus shorter payment terms on tariff invoices. Small intentional inventory build for resourcing transitions.

Rick noted all-in China rate still ~55% making diversification economically justified. Focus on resilient, flexible multi-country footprint rather than specific end-state targets.

Keith confirmed continued China reduction while protecting quality and delivery, working with long-term supplier partners. Also pursuing value engineering and cost sharing.

Keith cited operational momentum, mechanical productivity system with visible pipeline, and improving incremental profit on volume. Used the word 'momentum' to summarize confidence.

Management credited procurement discipline for the 5% cost reduction to $75 per foot while wanting trade partners healthy.

Management reiterated no change to the timeline, expecting to reach the 60% BTO target sometime next year.

Marshall rejected levered buyback approach, emphasized capital allocation discipline: business investment first, then dividends, then excess cash via buybacks. Debt-to-cap is outcome not target.

Marshall confirmed Midwest still performing well overall with a couple of markets slightly slower due to unusually harsh winter (Boston had snow 4-5 times). Move-up and active adult buyer strength supports region.

Marshall confirmed 2,000 finished specs (~2 per community), above ideal but manageable. Starts matched to sales for last 4-5 months, total specs down 1,500 YoY.

Marshall declined to call 2.3 a floor but confirmed minimum absorption target of ~2 homes per month per community. Current pace sufficient to deliver full-year guide.

Marshall confirmed starts pullback already underway since Q4, will continue calibrating to sales environment. Comfortable with inventory levels given spring selling season expectations.

Ossowski confirmed Q4 at 111 working days with most divisions at pre-COVID levels, expects sub-100 in H1 2025. Multifamily builds skew the average higher.

Jackson said larger builders negotiate harder but the difference is not meaningful, and stressed there is a price threshold BFS will not cross.

Jackson explained the low end is a downside scenario management does not expect to reach, retained deliberately to bound the range.

Stuart said some costs are already being reduced in real time but the benefit will show slowly, with normalization through 2027.

Stuart framed labor as geography-specific and evolving; David added roughly 20% of divisions see greater pressure, but no markets were named.