Q2 2025 Installed Building Products Inc Earnings Call

Greetings, and welcome to the installed Building Products. Second quarter 2025 Financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Darren Hicks, vice president of an industrial relations. Thank you sir, you may begin.

Good morning and welcome to installed Building Products. Second quarter 2025 earnings conference. Call earlier today, we issued a press release on our financial results for the second quarter, which can be found in the investor relations section of our website.

On today's call Management's prepared, remarks and answers to your questions. May contain forward-looking statements within the meaning of federal Securities laws. These forward-looking statements are based on Management's, current beliefs, and expectations, in our subject to factors that could cause actual results to differ materially from those described today.

Please refer to our FCC filings for cautionary statements and risk factors. We undertake no duty or obligation to update any forward-looking statement as a result of new information or future events, except as required by federal securities laws.

Call, you can find a Reconciliation of such non-gaap measures to the nearest Gap. Equivalent. In the company's earnings release and investor presentation. Both of which are available in the investor relations section of our website.

This morning's conference call is hosted by Jeff Edwards, our chairman and chief executive officer, Michael Miller, our Chief Financial Officer and we are also joined by Jason nicewonger, our chief administrative and sustainability Officer, Jeff, I'll now turn the call over to you.

Thanks Darren and good morning to everyone joining us today.

As usual, I will start the call with some highlights and then turn the call over to Michael who will discuss our financial results and capital position in more detail before we take your questions.

Ibp continues to deliver strong financial results, demonstrating the high value installation services. We provide our home building customers,

Our Market positioning and focus on service is especially valuable as many home. Builders rely on relationships with experienced Partners to navigate today's evolving market dynamics.

While we expect housing affordability to remain a challenge over the near term, we are confident in the long-term. Fundamentals of the US Housing Industry in the effectiveness of our growth focused Capital allocation strategy. We are focused on growing earnings and cash flow through Geographic expansion and end product and End Market diversification. We will continue to explore opportunities for operational, improvements and remain disciplined with capital allocation.

Through the first half of 2025, we paid nearly 68 million in cash, dividends or $2.44 per diluted, share and repurchased approximately 84 million of our common stock.

As we pursue profitable growth, while maximizing. Returns for our shareholders, we remain committed to doing the right thing for our employees, customers and communities.

Looking at our second quarter sales performance, Consolidated sales increased 3%. In same Branch sales grew 1%

in our largest and Market, same Branch new single family, installation sales were roughly flat.

Compared to a nearly 10% decline in US single family completions relative to the same period last year.

Our relative performance is encouraging and reflects a tremendous effort from employees at branches Across the Nation as well as at support group.

Sales in our multi family and Market held up well, on a relative basis with backlogs at Key branches showing growth on a year-over-year basis.

According to the US Census Bureau, we have seen double-digit multi family starts growth in the 2025 second quarter relative to the same period last year.

This is the first time we have witnessed double digit multi-family starts growth in nearly 2 years and the first time observing 2 consecutive quarters of positive starts growth since the first quarter of 2023

While this data is subject to revisions, the conclusion that the market is improving is consistent with the multifamily activity we are seeing in several markets in which we compete.

On a same Branch basis. Second quarter, commercial sales in our installation segment increased 9% from the prior year period, our heavy commercial activity continued to be the dominant driver of sales growth. In this end Market based on the growth in our heavy commercial backlog. We Believe sales are poised to remain healthy Beyond 2025

During the 6 months, end of June 3020, 2025 cash flow from operating activities, increased 11% to 182 million, which primarily reflected effective management of working capital.

The pace of Acquisitions has slowed this year relative to Prior years, but we remain disciplined in our approach to find well-run businesses that would support attractive Returns on invested Capital, make strategic sense and fit. Well culturally,

our core residential installation and Market remains highly fragmented with considerable opportunity for consolidation.

As previously announced during the 2025 second quarter, we acquired a Wisconsin based installer of spray foam and air barrier products in the commercial and Market with annual revenue of nearly $4 million.

To date, we've acquired over 10 million dollars of annual revenue and we continue to work toward acquiring over 100 million in annual revenue.

Based on the US Census Bureau single family starts year to date through June 2025 have decreased by 7%.

With the current interest rate environment and related housing affordability challenges expected to persist, we believe a larger than previously expected decline in single-family housing starts is likely this year.

Still over the long term. We can continue to believe that our business is supported by a fundamental under supply of residential housing in the gradual adoption of advanced building codes for the purpose of improved Energy Efficiency across the US.

In the second half of the year.

Our strong customer relationships experienced leadership. Team national scale, and diverse product categories. Across multiple end, markets, create a solid platform for ibp to perform well through the es and flows of demand related to the US construction Market.

Although macroeconomic uncertainty influences, prevailing market conditions in our industry and many others. We remain focused on profitability and effective Capital, allocation to drive earnings growth and value for our shareholders.

I'm proud of our teams continued, success, and commitment to doing an excellent job for our customers.

To everyone at ibp, thank you. Our remaining encouraged by our competitive positioning. And am optimistic about the prospects ahead for ibp and the broader insulation and complimentary Building Product installation business. So, with this overview, I'd like to turn the call over to Michael to provide more detail on our second quarter Financial results.

Thank you, Jeff and good morning. Everyone Consolidated net revenue for the second quarter, increased 3% to a second quarter of record of 760 million compared to 738 million for the same period last year.

Same brand sales for the installation segment increased 1% for the second quarter with a 9% increase in commercial. Same brand sales, partially offset by a single digit decline in residential. Same brand sales

Although the components behind our price, mix and volume disclosure have several moving parts that are difficult to forecast and quantify. We achieved a 0.8% increase in price. Mix during the second quarter, this result was offset by a 1.1% decrease. In job volumes relative to the second quarter last year. It is important to note that the results of our heavy commercial and Market are not included in the price. Max volume disclosures with respect to profit. Margins in the second quarter are business, achieve adjusted gross margin of 34.2%

An increase from 34.1% in the prior year period and up from 32.7% in the 2025, first quarter, the year-over-year increase in margin during the quarter was in part related to a shift in customer and product mix.

Adjusted selling and administrative expense as a percent of second quarter sales was 18.8%, compared to 18.5% in the prior year period.

The increase was due primarily to higher administrative wages and higher facility costs.

Of the 7 million dollar increase in adjusted selling and administrative expense.

3 million was due to acquisitions.

Adjusted Eva for the 2025 second quarter increased to 134 million reflecting an adjusted ebit down margin of 17.6% and adjusted net income increased to 81 million or $2.95 per diluted share.

Although we do not provide comprehensive Financial guidance. Based on recent acquisitions, we expect third quarter, 2025 amortization expense of approximately, 10 million dollars and full year 2025 expense of approximately 40 million. We would expect these estimates to change with any Acquisitions. We complete in future periods.

Also, we continue to expect an effective tax rate of 25% to 27% for the full year, ending December, 31st, 2025

Now, let's look at our liquidity position balance sheet and capital requirements in more detail.

For the 6 months end of June 30th 2025, we generated 182 million in cash flow from operations.

Compared to 164 million in the prior year period.

The year-over-year increase in operating. Cash flow was primarily associated with improvements in working capital which more than offset set? Lower year-to-date net income.

Our second quarter, net interest expense, was 8 million for both the 2025 and 2024. Second quarters as lower interest income from Investments was offset by lower cash interest expense on outstanding debt.

At June 30, 2025, we had a net debt to trailing 12-month adjusted EBITDA leverage ratio of 1.15 times, compared to 1 time at June 30, 2024, which remains well below our stated target of 2 times.

At June 30th 2025. We had 356 million in working capital, excluding cash, cash and cash equivalents Capital expenditures and total, incurred Finance. Leases for the 3 months end of June 30th 2025 where approximately 16 million dollars combined, which was approximately 2% of Revenue.

Shareholders during the 2025 second quarter, ibp repurchased, 300,000 shares of its common stock at a total cost of 49 million and 500,000 shares at a total cost of 84 million. During the 6 months end of June 30th 2025 at June 30th. 2025, the company had approximately 417 million available under its stock repurchase program,

The IBPS Board of Directors approved the third quarter dividend of $0.37 per share, which is payable on September 30, 2025, to stockholders of record on September 15, 2025.

The third quarter dividends represents a 6% increase over the prior year period.

With this overview, I will now turn the call back to Jeff for closing remarks.

Thanks, Michael. I'd like to conclude our prepared remarks by once. Again, thanking ibp employees for their hard work and commitment to our company. Our success over the years is made possible because of all of you, operator, let's open up the call for questions.

Thank you. We will now be conducting a quick.

And answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2. If you would like to remove your question from the queue,

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

We asked analysts limit to limit themselves to 1 question and a follow-up so that others may have the opportunity to do so as well. 1 moment, please while we pull for questions,

our first question comes from Stephen Kim with evercore. Isi, please proceed with your question.

Great. Thanks very much guys. Uh yeah. Really impressive results here in a in a challenging environment. Um, lots of things we could potentially ask but, um, I I guess you alluded to customer and product, mix improving. You said it's not due to heavy commercial because it's not included. I think in there. Um, but just wanted to get a little bit more detail on, what kind of mix, uh, Improvement. You're seeing like kind of which end markets. Like, what kind of, uh, what kind of customer change? Are we seeing that kind of thing?

Hey, Stephen. It's uh it's Michael. Thanks for the question. So, uh, really, it's 2 things on the the mix front. We continue to see uh, better relative performance from the regional and local Builders. Then we did with the uh large national public Builders during the quarter which is the same thing. As in the first quarter, although on a relative basis um performance with both of really, all of the single family business improved. Um, quite well relative to the first quarter of last year. I think in part because um, the

Weather issues that we had in the first quarter. We were able to work through and catch up on that work faster in the second quarter than we had expected. So that was definitely a benefit when our sales growth is greater with the regional local Builders because of their um higher average job price that benefits the uh price mix disclosure. The other thing that um helped us as we did see um solid growth in the complimentary products and we're continuing to see really good uh gross margin Improvement in the complimentary products. I mean, the margins are still considerably lower than installation but in the quarter the gross margin for the other products improved 100 basis points

And just to follow up on that, complimentary product margin Improvement. What do you attribute that to or was it again? Uh, an issue of certain products within the complimentary uh, category that um, did did particularly well and those happen to be the ones that have higher margins and others, you know, just help us uh, understand a little bit about what was going on within that.

Yeah, it was fairly, uh, even improvement across. You're always going to have sort of puts and takes, particularly if you're looking at just a quarter. Um, but you know, the team has been working very hard to improve the margins there, particularly as you know, the insulation environment given the weakness and continued.

excellent job, you know, for those of people on the call

CQ is our sort of centralized multifamily management, uh, group that manages about 45% of our multi-family Revenue. They've done an excellent job of 1 increased, the penetration of the complimentary products. It's a multi-family and doing it at, you know, very acceptable margins. So there's really been several factors that have come together to contribute to. You know what the team has done is a pretty incredible performance in the quarter.

Excellent. Yeah, appreciate it. And, uh, congrats on the good results. Thanks.

thanks, you

Our next question comes from Michael Route with JP Morgan. Please proceed with your question.

Hi. How's it going? This is Alex. Isaac on for Michael today. Congrats on the order. I wanted to ask about fiberglass and how price and Supply printed, you know, into you and then how you see that, you know, going on through the back half and potentially affecting price cost to going forward?

Um, this is Michael again. So, you know, we continuously work with, um, both our customers and our suppliers for all of our uh, materials including fiberglass. And um, you know, it's a continuous management of making sure that um our price cost is managed successfully. You know, I think that uh, Owens Corning made it pretty clear in their call that that

There has not been um real price deflation on the fiberglass side. And uh, you know, we continue to believe that the environment will remain relatively benign, um, you know, across the products that we purchase domestically. We do think that, um, we will call the impact, from tariffs, in the first half of the year has been immaterial, um, and we don't expect to see a material impact in the third quarter. Um, there is an opportunity or we believe, I mean not knowing where things are going to ultimately end up. But um we believe that we will start to see an impact in the fourth quarter, um you know, maybe 5 million or so um, relative to the tariffs. Now, obviously we will work with um, our customers and our suppliers to manage any impact um, that the tariffs may have, but uh, we need to be cognizant that

That's definitely a challenge going into the, you know, the fourth quarter of this year.

This roller coaster there. And then on the fall, I want to ask about, uh, single family, and multi family volumes, and you mentioned that there might be some, you know, downside to this single family, but I want to ask, uh, in 2 to 2, uh, what sort of drove the outperformance of ibp, you know, against the overall market and and how do you see that trending throughout the rest of the year?

Yeah, so this is Michael again, and I would say that, you know, first and foremost, we have to, you know, thank and compliment our field team. They did an incredible job of performing in what is a very challenging environment in both single family and multifamily. What I'll do is just sort of call out some states. Um, and the states that I'm going to call out are all larger States for us, where we have, you know, greater than 10 million dollars of Revenue a quarter. Um so we had mid to high single digit growth in the Carolinas. So both North and South Carolina, Virginia Texas, Tennessee, Ohio uh Indiana and Minnesota. So what you're seeing there is we're really benefiting from our historical strengths in you know our Midwestern markets and upper Midwestern markets. The large states for us that were sort of flattish in the quarter were California, Georgia Washington and New Jersey.

The really, the big exception for us from a performance perspective. On the Statewide basis was Florida. I think everybody knows that, um, you know, Florida both from a single family and multi-family perspective is really struggling right now. Um, and I think most people on the call realize that what we have a very large presence in Florida, our market share, there is not what it should be. I mean, we've talked about that before, um, you know, I guess perversely to some extent or lower than what.

We should have market share benefited us, um, given the fact that Florida was so negative during the quarter.

Crowd, um, of what they've done.

That sounds great. Thanks for all the color and rats again.

Thanks.

Our next question comes from Mike, do.

RBC Capital markets, please. Proceed with your question.

Hi, thanks for taking my questions just to follow up on just first diagnosing after 4 months, and the quarter, appreciate the regional commentary. I mean, this is pretty Stark Up Performance against any any metric, we can see for kind of starts or your peers or supplies or um, so, you know, I I just want a little more color on outside of just Regional and execution.

The quantification of, um, help us understand those weather timing issues or, or maybe quantify, kind of the complimentary growth versus the installation growth. I think it would just be helpful if we all had a better sense for, you know, this was just such a strong spread versus versus the market just what was driving it.

Yeah. So you know, as I mentioned, um, earlier, we did see the growth. Um, you know, I'll be honest with you better than we expected growth, uh, with the regional local Builders. And, you know, that growth um, continued through, um, July actually, you know, July was, um, pretty solid month for us, you know, the new residential so single family multi-family combined was up, uh, very low single digits, I mean, in essence flat,

And new commercial, which is a combination of both the light and the heavy Commercial Business was up high teams.

So, you know, the team continues to perform. Now, do we expect that there's going to be, you know, more headwinds or heavier, uh, Stronger headwinds in single family and multifamily as we go through the year. Absolutely. Um, but we have confidence that the team will continue to perform better than the overall market. And clearly, I think they demonstrated that

In the in the second quarter. Um, you know, just to give you a sense the you know, the regional and local builders in the quarter uh were up mid single digits for us and just as a reference point, you know, the Publix the large production Builders represent about 30% of our overall new single family Revenue which is about 60% of our overall Revenue. So that relative outperformance from uh the regional and locals. Really did kind of help our relative outperformance to the um overall Market.

Okay, that that's helpful. And then just, um, I mean, just on that point of forward looking, I know you don't give the guidance, but giving your comments about acknowledging kind of the, like, starts to climb their accelerating their building Market pressures.

The July commentary, certainly helpful and anything else. You can provide in terms of kind of directionally or order of magnitude, how you're thinking about the balance of the year for your markets and then your performance quantitatively relative relative to that

Yeah, and thanks for reiterating the fact that we don't provide guidance. Um, but I would say that, you know, our thought on the single family Market is pretty much consistent with the commentary that most companies have. Um, you know, provided this quarter in terms of, you know, single family starts being down. You know, I think at this point we can say double digits as it just High um, single digits. And that the the comps are going to, it's going to become more difficult on the starts front as we go through the second half. Um, you know, when we look at 1 of the things, as you know that we do each quarter is we look at our sales to the Public's and then what obviously they report and then consensus as well.

And when we came out of the end of the year and reported in the first quarter, um that indicated that our sales with them would have been up 3%. Right after the first quarter, that same information would have said that our sales are going to be down, 3%, um, now after the second quarter, but it would say is that our second half sales with them are going to be down at least 5%, right? So mid single digits. So what the reason I'm even making this point,

That we're feeling very constructive about what multi-family looks like in 2026. Um, but again, I have to reiterate that there's definitely going to be increasing headwinds in multifamily as we continue to work through the, you know, units under construction in the backlog, that's there. Um, that will be a continual headwind for, um, the back half of the year. That being said, as has been the case for years, now our multifamily business will outperform the overall Market.

That's all very helpful. Thank you.

Sure.

Our next question comes from Susan McClary with Goldman Sachs. Please proceed with your question.

Good morning, everyone.

Good morning. My first question.

Good morning. My first question is going back to the gross margin. We want to talk a bit about the strengths that you saw there. I appreciate your comments on the complimentary products and how those are adding, but it also seems like the poor gross margin in there is holding on well despite all the pressures that are going on in the housing, can you talk a bit more about what you're seeing in there and how we should think about puts and takes over the coming quarters?

Yeah, I mean, clearly the complimentary products Improvement in gross margin helps. Um although I would say there's an offset to that because you know their margin is still um you know, below insulation margin and because you know insulation Revenue in the quarter uh was basically flat and the complimentary products, um, Revenue increase High, single digits. That lower margin is actually a bit of a pressure on overall growth margin. Um just because you have a higher rate of sales or higher percentage of sales coming from lower margin products, even though they were considerably higher gross margin than they had been in the previous quarter. That's a lot to digest in that answer, so I apologize for that. Um, the other thing that was, um, definitely a headwind in this quarter. And, uh, and then last quarter is definitely the performance of the heavy Commercial Business. Um, you know, particularly Alpha's done in

Did I say 1? Sorry, uh, Tailwind, actually the heavy commercial business is performing exceedingly well, both from a um.

Revenue perspective and a uh, margin perspective. I think we said in the first quarter that um, you know we expected that in the back half of the year the strength and heavy commercial would offset the weakness in Light commercial. Um obviously it's more than offset the weakness and like commercial in this quarter.

Uh, and we expect that Trend to continue as we go through the back half of the year. Um, the the team are heavy commercial team is just, um, really doing an excellent, excellent job. Um, obviously we have

Some.

Structural or industry fundamentals that are supporting us. I mean, as you know, everyone talks about what's going on from a data center perspective and just the, the opportunity that that's there are manufacturing and Industrial backlogs are, you know, have increased significantly and we're continuing to bid those jobs. Um, and bid them at, uh, you know, very acceptable margins.

Okay, that's that's a great color. And then you also noted in your remarks that the pace of Acquisitions has slowed this year. Can you talk about the pipeline that you're seeing on deals and how we should think about your ability to hit that 100 plus million dollar Target for 2025?

Yeah, this is uh, Jeff. So um, I guess to even be more specific. I'd say, the pace of closing deals has has, has kind of fallen off it, which, again, for reasons, sometimes completely beyond our control, we've had a number of deals over the last 24 months. Some of size that for 1 reason or another made, it nearly to the finish line and either 1 didn't happen for a particular reason um and or to have taken long.

Think that are, you know, potentially going to be in the market Even in our core kind of insulation, uh, competency, you know, grouping and we continue to look at other products and even other verticals to a degree, uh, and always will really I think so. It's just been

Kind of tough to get a few deals closed.

Okay, thank you for the color and good luck with the porter.

Great. Thank you, thanks. So

our next question comes from Keith Hughes with true Securities. Please proceed with your question.

Hey, this is Joe.

of life, I guess for for

um,

Could you, uh, really breaking up? It was very... we didn't understand that question. So...

Sorry about that. I'll repeat, um, I mean, you talked a little about heavy commercial and there are many signs of life, um, for for the commercial side. Oh yeah. Uh, know the, the short answer is no. Um, the like Commercial Business continues to be weaker than, you know, we expected and we believe that we'll continue through 25. We don't have the same visibility in the Light commercial business that we do in the heavy commercial business. So, you know, we'll know better as we get towards the end of the year. What 26 is going to look?

Look like, but um, that continues to be the weakest part of our end markets by far, um, at this point. So but we felt very good in the quarter that the strength and heavy commercial offset that like commercial weakness.

Got you now and I appreciate that and then going back to multi. When do you think um that term will start to kind of hit results and I mentioned 2026, is that how we should think about it?

Yeah, I think it's 2026. I mean, you know, depending upon how things go and, and the movement of projects, um, kind of through the, the backlog, we might see a little bit benefit of benefit towards the end of 25, um, but I really think it's more of a 26 story and it may even, you know, not get positive until we get into, um, you know, the second or third quarter of 26. But we're very encouraged with the the bidding activity, the what, what's happening with the backlog? And, as I mentioned earlier, the ability of CQ to really, um, cross sell the complimentary products into the, um, the multi-family projects that we're working on.

Yeah, I really appreciate it. Thanks.

Sure.

Our next question comes from Colin Vernon with Deutsche Bank, please proceed with your question.

Good morning. Thank you for taking my question. Um, so it sounds at least some of the market out performances, Geographic, mix driven. But when you look within the geographies that outperform, are you taking share within those markets and any sense to give us uh, can any way to give us a sense of what those share gains might look like within those markets that you called out.

yeah, I mean

Certainly in specific markets. We're, we're gaining share, but you know, as we've stated um, previously, our objective is for our customers to gain, share, and that for us to gain share through our customers. So it's really about working with, uh, the best customers in a Marketplace that we believe are going to be most successful from a market share game. And we really as it's just as a business, um, model, if you will or strategy that has been our objective, um, you know, from a market share perspective, is to really uh, work with those customers to, to grow, share that way as opposed to taking share from another competitor.

Understood. Okay, and I guess just following up on that then, based on what your customers are doing from a market share perspective, I guess, how sustainable do you think these market share gains are over the next 12 months? Just based on what you're hearing from them. Q2 seems very meaningful, so I'm just curious as to how sustainable some of those trends are.

I mean, it's difficult to say, um, but

Um, you know, not just the rate environment, but the on the jobs front and you know, clearly affordability is, is challenged. Um, so I think that, you know, as we look at it and we talked to customers about it. Um, you know, there's still a bit of uncertainty about what 26 is going to look like. So we think that those challenges are definitely going to persist in the second half and, um, you know, clearly we're going to be impacted by those challenges but

As we demonstrated in this quarter, I think our team is going to do a very effective job of managing in a very difficult environment.

Great. I appreciate the color.

Sure.

Our next question comes from Ken center, with C Port research. Please proceed with your question.

Good morning, everybody.

Good morning. Morning, morning. Ken

Doing a sound check.

On Gross margins.

Did she talk to the current quarter margins for um, you know, kind of your long-term targets, just the Baseline. Um, and can you address the current factors that

You are.

Making might of bait or just a mix issue. But I think that spread that we see today,

and I'm trying to ask, because the

Bank and gross margins for your long term. I believe is right your highlighting, right? Large, or private Regional Builders versus the Publix and I probably watches out when you're thinking about operating Leverage.

Like we maybe give us a sense of how.

That spread plays into it and your answer. Thank you.

You mean the difference between uh, the Publix and the Regionals?

Right? Because I mean if you just write, if the Public's have a larger margin, they get better sgna, you know.

Considering people are trying to understand that dynamic.

Well that yeah. Um, I mean, it's we talked about this on multiple quarters. The, you know, the gross margin from the regional and local Builders is higher. It's a higher average job price. Uh, but the cost to serve is is higher and that's reflective in higher. Um, sgna. I mean, if you look at the quarter, you know, selling expenses, exactly, where we would have expected it to be at about 4.7%, which is what it was. The, you know, second quarter last year um GNA uh, was a little bit higher than uh, we would have expected but there's growth in

DNA from

The first quarter of this year to the second quarter of this year was all driven by higher variable compensation, which is a direct result of, you know, really strong results on Ava Dawn profitability. So I think everybody knows that, um, you know, we have a highly variable compensation structure, particularly at the branch level. For the branches that, um, outperformed, they got paid for that outperformance.

Good. And then I asked you this last quarter, and it seems like you guys are really focusing on it now, but the private regional resilience versus the public data.

I think it is, or was that their appreciated?

Based on the public Builders we're getting visibility into the first half of 26, based on their year, end inventory units, kind of being scared.

Can you provide or expand on any comments for what you're seeing on those?

Private to the regional builders because we can't see that outside of the.

Census inventory data, which, yeah, I'm not making a BLS comment, but like I'm not sure it's just a.

Owner is as yeah, it's presented. But if you could provide us some context, they're giving us upwards of 70% of your business. Thank you.

But as I said earlier, our share is just not that great. So uh, we are definitely better benefiting from our, you know, Geographic footprint.

Thank you very much.

There are no further questions at this time. I would now like to turn the floor back over to Jeff Edwards for closing comments.

Uh, thank you for your questions, and I look forward to our next quarterly call. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.