Financial Data and Key Metrics Changes - Genworth reported net income of $51 million for the quarter, with adjusted operating income of $68 million or $0.16 per share, largely driven by a strong performance from ENACT, contributing $141 million to adjusted operating income [6][7][21] - Total estimated pretax statutory income for U.S. Life insurance companies was $81 million, primarily influenced by favorable impacts from equity market and interest rate movements [7][30] - The liquidity position remained strong, ending the quarter with cash and liquid assets of $248 million [7][32] Business Line Data and Key Metrics Changes - The long-term care (LTC) insurance segment reported an adjusted operating loss of $37 million, driven by a remeasurement loss related to unfavorable actual variances from expected experience [22] - Life insurance reported income of $18 million, while annuity products reported income of $89 million, reflecting favorable impacts from market movements [30] - ENACT's primary insurance in force grew 1% year-over-year to $270 billion, supported by new insurance written and elevated persistency [24] Market Data and Key Metrics Changes - The CareScout network expanded to nearly 650 home care providers, covering over 90% of the 65+ census population in the U.S. [13] - The average cost of home care has surpassed $77,000 per year, with significant increases noted in recent years [18] Company Strategy and Development Direction - The company continues to focus on three strategic priorities: enhancing cash flow from ENACT, maintaining self-sustainability in legacy businesses, and driving long-term growth through CareScout [7][10][21] - CareScout aims to create value by delivering savings to U.S. life insurance companies, providing new revenue sources, and growing Genworth's valuation over the long term [10][12] - The company plans to re-enter the market with a low-risk standalone LTC insurance product later this year, targeting approvals in 30 to 35 states [14][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and sustain momentum through the remainder of 2025, highlighting the financial strength and operational performance at ENACT [20][92] - The rising costs of LTC services and the increasing number of aging baby boomers are expected to enhance the value of CareScout's offerings [18][19] - Management remains optimistic about the growth potential of CareScout and the overall financial health of the company [92] Other Important Information - The UK High Court issued a favorable judgment in the AXA Santander litigation, with potential recoveries estimated at approximately $750 million, which have not been factored into capital allocation plans [15][35] - The company plans to allocate between $100 million to $150 million for share repurchases in 2025, depending on business performance and market conditions [34] Q&A Session Summary Question: Update on the appeal process regarding the lawsuit - Management explained that Santander has until August 15 to seek permission from the appellate court, which could take two to three months for a decision [40][42] Question: Consideration of a settlement to eliminate the possibility of an appeal - Management remains open to discussions but feels confident about prevailing in the case [57] Question: Possibility of initiating a common stock dividend - Management indicated that the majority of shareholders prefer share buybacks over dividends at this time, but the board continues to evaluate the option [51][52] Question: Details on the LTC recapture and new LTC products - The LTC recapture involved a favorable arbitration outcome, and new LTC products will be issued through CareScout Insurance Company [78][84]

Financial Data and Key Metrics Changes - The company's adjusted FFO for the quarter was $1.26 per share, an increase from $1.22 in the prior year, representing a growth of 3.3% [18] - AFFO for the quarter was $1.24 per share compared to $1.20 in the prior year, also reflecting a 3.3% increase [18] - Total revenue for the quarter was $178.1 million, up from $173.1 million in the prior year [18] - Rental revenue increased by $5.3 million year-over-year, primarily due to investment spending and higher percentage rents [19] Business Line Data and Key Metrics Changes - The experiential portfolio comprises 274 properties, accounting for 94% of total investments, which stood at approximately $6.5 billion [8] - The education portfolio consists of 55 properties, all of which were 100% leased at the end of the quarter [8] - The box office in Q2 was $2.7 billion, a 37% increase compared to Q2 2024, driven by strong performing titles [9] Market Data and Key Metrics Changes - The North American box office for the first half of the year was $4.1 billion, a 15% increase over 2024 [11] - The company estimates the North American box office for the calendar year 2025 to be between $9.3 billion and $9.7 billion [11] Company Strategy and Development Direction - The company is focusing on a disciplined approach to capital allocation and has a robust pipeline of opportunities, including over $100 million committed to experiential development and redevelopment projects [5] - The strategy includes capital recycling to position the portfolio with productive and diversified experiential assets [6] - The company is particularly bullish on the fitness and wellness space, anticipating high-quality opportunities for acquisition and development [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the box office recovery and consumer demand for theatrical exhibitions, with expectations for the Regal master lease to meet percentage rent expectations [7] - Despite macroeconomic pressures, the company believes its differentiated strategy provides resilience and opportunity [7] - Management noted that the cost of capital has improved, allowing for a more aggressive growth posture in pursuing new opportunities [5] Other Important Information - The company sold a vacant former Regal Theater to Costco for net proceeds of $24 million, demonstrating the value of good real estate [17] - Year-to-date, the company has sold approximately $130 million of assets and revised its 2025 disposition guidance to a range of $130 million to $145 million [18] Q&A Session Summary Question: Is there a significant amount of assets for sale at reasonable prices? - Management indicated that there are still robust opportunities in the market, with over half of the pipeline being acquisitions, while being discerning in capital deployment [30][31] Question: How are dispositions planned for the back half of the year? - Management stated that they are close to achieving their targeted disposition range and will continue to look for opportunities to lower theater exposure [34][36] Question: How is the balance sheet strategy being approached? - Management highlighted flexibility in the balance sheet, with plans for a bond transaction to reduce line balance and prepare for upcoming maturities [40][41] Question: What is the demand for core assets? - Management noted that there is increasing interest in the theater space, with more activity and acceptance of it as an asset class [45] Question: How does the company view its exposure to Six Flags? - Management expressed confidence in their relationship with Six Flags, noting that the company is rationalizing its fleet and creating opportunities for accretive transactions [98]

Financial Performance - Revenue remained relatively flat at $7662 million for Q2 2025 compared to $7697 million in Q2 2024, while six-month revenue increased by 1% to $15267 million[15] - Income attributable to common stockholders increased by 4% to $250 million in Q2 2025 and by 8% to $494 million for the six months ended June 30, 2025[15] - Penske Transportation Solutions (PTS) equity earnings increased to $535 million in Q2 2025 from $529 million, and $867 million for the six months ended June 30, 2025[14,47] - Adjusted EBITDA for the six months ended June 30, 2025, was $773 million, a 48% increase compared to $7379 million in the same period of 2024[55] Retail Automotive - Retail automotive same-store revenue decreased by 1% to $6319 million in Q2 2025[21] - Gross margin increased by 50 bps to 169%[14] - Same-store retail automotive service and parts revenue increased by 7%, with related gross profit up by 9%[14] Retail Commercial Trucks - Retail commercial truck revenue increased to $944 million in Q2 2025 from $892 million in Q2 2024[31] - Same-store total units decreased by 4% to 4995 in Q2 2025[32] - Same-store used units gross per unit increased by 56% to $7016[32] Capital Allocation - Dividends paid were $165 million for the six months ended June 30, 2025[9] - Share repurchases totaled $133 million for the six months ended June 30, 2025[9] - Capital expenditures were $147 million for the six months ended June 30, 2025[9]

Financial Performance - Ardmore Shipping reported adjusted earnings of $9 million and an EPS of $022 for 2Q 2025[6] - TCE rates for MRs in 2Q 2025 averaged $23450, increasing to $25450 in 3Q 2025 to date, with 50% fixed[7, 8] - Chemical tanker TCE rates were $20400 in 2Q 2025, rising to $21650 in 3Q 2025 to date, with 65% fixed[7, 8] - The company's cash breakeven is $11900 per day[61] - Adjusted EBITDAR was $224 million in 2Q 2025[49] Strategic Initiatives - Ardmore acquired 3 high-quality, Korean-built MR tankers, including one 2020-built (scrubber fitted) for $383 million and two 2017-built for $328 million each[13] - The company refinanced debt facilities with a $350 million fully revolving facility[13] - Ardmore chartered out 4 MRs at an average rate of $22500 per day for durations of 6-12 months and a 25k ton chemical tanker at $19250 per day for 3 years[13] - The company declared a quarterly cash dividend of $007 per share for 2Q 2025[67] Market Outlook - Refinery runs are surpassing previous highs, boosting trading activity[17, 22] - OPEC+ is increasing production, adding 25 million barrels per day by September[20, 22] - There is an ongoing refinery shift from West to East, with expansions in Asia outpacing closures in the U S and Europe[25, 26] - The MR orderbook is reduced to 14%[34]

Financial Data and Key Metrics Changes - The company reported a net debt position of negative €223 million, excluding infrastructure project companies, which does not include proceeds from the divestment of Hydro [4] - Adjusted EBITDA for the construction segment was €191 million, up 4.2% year-over-year, with an adjusted EBIT margin of 3.5%, in line with long-term targets [16][17] - Operating cash flow was negative €104 million in the first half, compared to negative €53 million in the same period last year, primarily due to the lack of advanced payments [17] Business Line Data and Key Metrics Changes - Highways revenues grew by 14.9% in the first half on a like-for-like basis, with adjusted EBITDA improving by 17.1% [6] - U.S. Highways represented 88% of total highways revenues and 97% of total adjusted EBITDA, with revenues growing by 15.9% and adjusted EBITDA increasing by 14% [6] - The construction segment saw revenues reach €3,453 million, a 2.6% increase on a like-for-like basis [16] Market Data and Key Metrics Changes - Traffic improved by 5.8% in the second quarter, driven by targeted rush hour promotions, despite adverse weather conditions [8] - At JFK Airport, the new Terminal 1 project is 72% complete, with construction on schedule and on budget [14] - Dalaman Airport in Turkey experienced a slight traffic decline of 0.3% in the first half, impacted by lower domestic passenger volumes [15] Company Strategy and Development Direction - The company continues to focus on growth investments, divestments, and shareholder distributions, with a strong pipeline of U.S. highways assets [4][28] - The strategic horizon plan is being executed, with updates on progress expected [29] - The company is optimistic about future opportunities in Poland, particularly with European funds and potential reconstruction in Ukraine [96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of North American assets, driven by increased customer segmentation and local economic growth [28] - The company anticipates limited exposure to inflation and a healthy construction order book [29] - Management noted that adverse weather events negatively impacted performance but did not foresee significant long-term effects [11] Other Important Information - The company completed the acquisition of an additional 5.06% stake in four zero seven ETR for CAD 1.99 billion, increasing its stake from 43.23% to 48.29% [5] - Dividends from North American highways totaled €240 million in the first half, down from €339 million in the same period last year [7] - The company issued $1.4 billion in long-term green bonds, completing the refinancing of phase A for the NTO project [15] Q&A Session Summary Question: Can you explain the strong growth in average revenue per transaction in I-77 and I-66? - Management attributed the growth to increased toll revenues and dynamic pricing adjustments based on traffic behavior and value provided to users [36] Question: Why did earnings from ProBio Construction decline year-over-year in Q2? - Management indicated that the decline was due to additional costs related to utilizations and IT systems, along with increased bidding costs [43] Question: Can you comment on the recent pricing and traffic trends in the U.S. Managed Lanes business? - Management noted that underlying economic growth has been positive, although adverse weather impacted performance in the second quarter [117]

Q2 2025 Performance - Harley-Davidson diluted EPS was $0.88[6] - HDMC operating income margin was 5.9%[6] - HDMC revenue decreased by 23% year-over-year[6] - Global motorcycle shipments decreased by 28%, primarily due to planned dealer inventory reduction[6] - Global motorcycle retail sales decreased by 15% year-over-year[6] - Global dealer inventories decreased by 28% compared to Q2 '24[6, 21] - The cost of new or increased tariffs implemented in '25 was $13 million in Q2 '25[6] - HDFS operating income margin was 27.1%[6] HDFS Transaction - Strategic partners valued the HDFS business at approximately 1.75x post-transaction book value[7, 11, 14] - HDFS agreed to sell a 4.9% common equity interest to investment vehicles managed by KKR and PIMCO[7] - HDFS will sell approximately two-thirds of HDFS future retail loan originations at a premium on an annual basis for five years[7, 14, 55, 58] - The transaction unlocks $1.25 billion in discretionary cash, representing approximately 40% of current Harley-Davidson market capitalization[7] - HDFS agreed to sell over $5 billion of existing gross consumer retail loan receivables and residual interests in securitized consumer loan receivables at a premium[7, 14, 55] - HDFS expects to use a portion of the proceeds to reduce indebtedness to optimize its post-transaction capital structure[7] Financial Outlook & Capital Allocation - HDFS transaction is expected to generate ~$1B of available cash and allow for ~$1.25B distribution to H-D from HDFS[14, 67] - The company intends to use available cash for share buyback of $500M, HDI debt reduction of $450M and reinvestment in HDMC[14, 66]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $943 million for Q2 2025, a decrease from $1,036 million in Q2 2024, primarily due to divestitures, but showed a sequential growth of $32 million from Q1 2025 [26][30] - Adjusted operating income was approximately $179 million, with a margin of 19%, which included $12 million of zero-margin pass-through revenues related to tariff recovery [26][27] - Adjusted earnings per share were $0.87, reflecting a sequential increase of $0.09 but a decrease of $0.05 compared to the previous year due to divestitures [28] - Free cash flow reached $116 million, representing a conversion rate of 91% of adjusted net income, an increase of 17 percentage points year over year [28][29] Business Line Data and Key Metrics Changes - Performance Sensing revenue was approximately $652 million, a decrease of about 10% year over year, primarily due to product divestitures and lower on-road truck production [30] - Sensing Solutions revenue was approximately $291 million, an increase of about 9% year over year, driven by new content in the industrials business and market outgrowth in aerospace [30][31] - Adjusted operating income for Performance Sensing was approximately $147 million, with a margin of 22.5%, while Sensing Solutions had an adjusted operating income of approximately $88 million, with a margin of 30.2% [30][31] Market Data and Key Metrics Changes - The automotive market saw double-digit growth in China in the first half of 2025, while North America and Europe experienced market weakness [32] - The heavy vehicle and off-road business saw a decline, with on-road truck production down more than 20% in the first half of 2025 across North America and Europe [32][33] - The industrials business grew over 9% in Q2 2025, and aerospace revenue grew over 5% against a market that grew roughly 3% [22][31] Company Strategy and Development Direction - The company is focusing on three key pillars: improving operational performance, optimizing capital allocation, and returning to growth [9][39] - Capital allocation strategies include share repurchases and maintaining a strong balance sheet, with a net leverage ratio reduced from 3.1x to 3.0x [11][12] - The company aims to leverage core product technologies and prioritize platform-driven applications with high switching costs [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the business despite challenges such as volatile end markets and geopolitical uncertainty [9] - The company expects to continue prioritizing deleveraging and maintaining operational excellence to support growth [12][39] - Management expressed confidence in returning to consistent growth, particularly in the Chinese market, driven by new energy vehicles [19][65] Other Important Information - The company successfully mitigated tariff costs in Q2 2025, recovering all costs compared to approximately 95% in the previous quarter [21] - The cybersecurity incident disclosed in April did not have a significant financial impact, and the business has fully recovered [38] Q&A Session Summary Question: EBIT margins and drivers of margin improvement - Management highlighted operational productivity as the primary driver for margin improvement, with a focus on operational excellence initiatives [46][50] Question: Product rationalization and backlog recoverability - Management indicated that significant SKU reduction has been completed, but the process is ongoing to ensure alignment with current market needs [59][61] Question: Updates on China positioning - The company noted a shift towards local OEMs in China, with 90% of new business wins coming from top local players, indicating a strong growth opportunity [64][66] Question: Demand pull forward in autos - Management clarified that there was no significant pull forward of demand in Q2, with normal business conditions prevailing [68] Question: Free cash flow and CapEx outlook - Management aims for a cash conversion rate of 80% or more, with expectations for an uptick in CapEx in the second half of the year [84][86] Question: Deleveraging strategy - The focus will be on accumulating cash on the balance sheet in the short term, with plans to address gross debt in the future [90][91] Question: Competitive landscape in China - Management acknowledged the competitive nature of the Chinese market, emphasizing cost focus and technical differentiation as key strategies [95][96]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $943 million for Q2 2025, a decrease from $1,036 million in Q2 2024, primarily due to divestitures, but showed a sequential growth of $32 million from Q1 2025 [23] - Adjusted operating income was approximately $179 million, representing a margin of 19%, with adjusted operating margins improving by 70 basis points sequentially from 18.3% in Q1 2025 [23][24] - Adjusted earnings per share were $0.87, an increase of $0.09 sequentially from Q1 2025, but a decrease of $0.05 compared to Q2 2024 due to divestitures [24] - Free cash flow reached $116 million, a 17% increase year over year, with a cash conversion rate of 91%, up 17 percentage points from Q1 2025 [24] Business Line Data and Key Metrics Changes - Performance Sensing revenue was approximately $652 million, a decrease of about 10% year over year, primarily due to product divestitures and lower on-road truck production [26] - Sensing Solutions revenue was approximately $291 million, an increase of about 9% year over year, driven by new content in the industrials business and market outgrowth in aerospace [26][27] - Performance Sensing adjusted operating income was approximately $147 million, or 22.5% of revenue, while Sensing Solutions adjusted operating income was approximately $88 million, or 30.2% of revenue [26][27] Market Data and Key Metrics Changes - Automotive production estimates have been volatile, with double-digit market growth in China in the first half of 2025, partially offset by market weakness in North America and Europe [28] - The heavy vehicle and off-road business has seen softness, with on-road truck production down more than 20% in the first half of 2025 across North America and Europe [28] - The industrials business grew over 9% in Q2 2025, while aerospace saw over 5% revenue growth against a market that grew roughly 3% [20] Company Strategy and Development Direction - The company is focusing on three key pillars: improving operational performance, optimizing capital allocation, and returning to growth [7][10] - Capital allocation strategy includes share repurchases and dividends, with $100 million repurchased in Q1 2025 and $20 million in Q2 2025 [9][25] - The company aims to leverage core product technologies and prioritize platform-driven applications with high switching costs [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the business despite challenges such as volatile end markets and geopolitical uncertainty [7] - The company has successfully mitigated tariff costs and is seeing a mix of volatility, resilience, and growth in end markets [18] - Future growth is expected to be driven by new business wins in China, particularly in the new energy vehicle market [15][16] Other Important Information - The company experienced a cybersecurity incident in April 2025, but has fully recovered without significant disruption to customers [32] - The company plans to maintain a focus on deleveraging, reducing net leverage from 3.1x to 3.0x trailing twelve months adjusted EBITDA [10][25] Q&A Session Summary Question: What is driving EBIT margin improvement? - Management indicated that operational productivity is the primary driver for margin expansion, with a focus on operational excellence initiatives [41][45] Question: How does market mix affect EBIT margins? - Management acknowledged that mix matters, with automotive being the lowest margin business and aerospace the highest, but they expect to offset any mix headwinds with growth in industrial [48][49] Question: What is the status of product rationalization and backlog scrubbing? - Management stated that significant SKU reduction has been done, but it is a continuous process [54][56] Question: What is the company's positioning in China? - The company noted a shift towards local OEMs, with 90% of new business wins in 2025 coming from top local OEMs and leading new energy vehicle players [60][61] Question: Is there any pull forward of demand in autos for Q2? - Management clarified that there was no pull forward of demand, and Q2 was considered normal in terms of order book correlation to production [62][64] Question: What are the expectations for CapEx and free cash flow? - Management indicated that they aim for a cash conversion rate of 80% or more, with CapEx expected to increase in the second half of the year [77][78]

Financial Data and Key Metrics Changes - Total product revenues for Q2 reached $1,060 million, a 17% increase year over year, driven by strong demand for Jakafi and Opsilura, as well as contributions from Nictimvo's launch [20][21] - Total revenues were $1,220 million, up 16% compared to the same period last year [20] - Jakafi net product revenue was $764 million for Q2, representing an 8% growth year over year [20] - Opsilura's net product revenue for Q2 was $164 million, a 35% increase year over year [21] - The company raised its full-year revenue guidance for Jakafi to a range of $3,000 million to $3,050 million [21] Business Line Data and Key Metrics Changes - Opsilura showed strong growth across atopic dermatitis and vitiligo, with nearly 20,000 prescribers and potential for new indications [7][21] - Nictimvo generated $36 million in net product revenues in Q2, with rapid adoption among BMT centers [23] - Other hematology-oncology products saw net revenues of $131 million, a 66% year over year increase, driven by the Nectinvo launch and higher demand for ZYNES [25] Market Data and Key Metrics Changes - U.S. net product revenue for Opsilura was $132 million, up 19% year over year, while ex-U.S. revenues were $32 million, driven by uptake in France, Germany, and recent launches in Italy, Spain, and Canada [22] - Nictimvo achieved approximately 82% account penetration in BMT centers across the U.S. [23] Company Strategy and Development Direction - The company aims to build a comprehensive plan for acceleration, focusing on R&D productivity, operating expenses, and capital allocation [9][17] - Strategic priorities include taking care of core products, accelerating product development, and careful capital allocation [9][14] - The company recognizes the importance of converting scientific advancements into regulatory approvals and business results [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for new product flow and emphasized the importance of execution in driving growth [5][18] - The company expects FDA approval for Opsilura in pediatric patients by September and is on track with pivotal trials for povastatinib [18] - Management highlighted the need to manage expenses in a disciplined manner while focusing on growth [17][28] Other Important Information - The company recorded a benefit of $242 million from a contract dispute settlement with Novartis, leading to a reduction in COGS [25] - R&D expenses for Q2 were $495 million, with an increase of 8% year over year, driven by investments in late-stage development assets [26] Q&A Session Summary Question: Importance of therapeutic areas at Incyte - Management indicated that MPNs are the most important therapeutic area, with a significant opportunity to transform treatment in this space [43][44] Question: Read-through from Kallar data for ET and expectations for MF - Management noted that the mechanism of action for the mutant CalR antibody suggests a high probability of success in MF based on ET data [52][53] Question: Initial data for six seventeen F and its delay - The delay was attributed to the need for higher doses and longer follow-up to obtain sufficient data [56][59] Question: Dynamics of Nictimvo's launch and inventory impact - Management reported a 10% penetration in the third-line market and noted that inventory accounted for less than 5% of Q2 sales [70][75] Question: Balancing investment in pipeline advancement and external opportunities - Management emphasized the importance of capital allocation and the need to make informed decisions based on facts and analysis [96][99]

Financial Data and Key Metrics Changes - In Q2 2025, home closing revenue was $1.6 billion, a 5% decrease year-over-year despite a 1% increase in closing volume, primarily due to increased financing incentives [22][30] - Adjusted home closing gross margin was 21.4%, down from 25.9% in Q2 2024, reflecting higher lock costs and increased use of financing incentives [22][27] - Diluted EPS decreased by 35% year-over-year to $2.04 from $3.15 in Q2 2024 [27][28] Business Line Data and Key Metrics Changes - The company secured orders for 3,914 homes in Q2 2025, with a strong average absorption pace of 4.3 net sales per month [5][13] - Home deliveries totaled 4,170 homes, with backlog conversion exceeding 200% [5][19] - The cancellation rate remained at 10%, lower than historical averages, attributed to a 60-day closing commitment [13][27] Market Data and Key Metrics Changes - The Central Region had the highest average absorption pace of 5.2, followed by the East at 4.1, and the West at 3.9 [17] - Demand was strong in markets like Arizona, Dallas, Houston, and Southern California, while Florida and Colorado faced challenges due to increased existing inventory [17][18] - The average selling price (ASP) on orders decreased by 5% year-over-year to $387,000 due to greater utilization of rate buy-down financing incentives [14][22] Company Strategy and Development Direction - The company focuses on move-in ready inventory and financing incentives to enhance competitiveness in a challenging market [5][8] - An agile business model allows the company to optimize operations and land strategy on a market-by-market basis [11][12] - The company aims for double-digit year-over-year growth in community count, with plans for further expansion in the second half of the year [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that home buying demand has softened due to increased mortgage rates and consumer hesitancy [6][27] - Despite current challenges, management remains optimistic about long-term industry outlook due to favorable demographic trends [7][8] - The company is adjusting its capital allocation strategy to balance land spending and shareholder returns [30][32] Other Important Information - The company reduced land acquisition and development spending by 12% year-over-year to $509 million in Q2 2025 [30] - Share buybacks totaled $45 million in Q2 2025, with a commitment to continue repurchasing shares opportunistically [32][33] - The company maintained a healthy balance sheet with cash of $930 million and no drawn credit facility [29][30] Q&A Session Summary Question: Absorption rates on new communities - Management reported that absorption rates have trended well, with new communities meeting expectations [41] Question: Community count growth expectations - Management expects double-digit growth in community count, with a balanced flow between Q3 and Q4 [43][44] Question: Volume outlook for the remainder of the year - Management indicated that Q3 is expected to be one of the lowest volume quarters due to closed spring demand, but they have the inventory to achieve projected numbers [51] Question: Cash capital allocation and buyback acceleration - Management confirmed plans to accelerate share buybacks due to reduced land spending, balancing cash utilization for new specs [54][56] Question: Gross margin expectations - Management noted that the decline in gross margin is primarily due to lost leverage in Q3, with expectations for recovery in Q4 depending on market conditions [76][81]