Financial Data and Key Metrics Changes - The company reported record net sales of $908 million for Q3 2025, an increase of 8.2% year-over-year, benefiting from the SEM acquisition, favorable foreign exchange, and customer pricing related to tariff recoveries [7][18] - Adjusted EBITDA reached $133 million with a margin of 14.6%, reflecting a 30 basis point year-over-year expansion, primarily due to lower R&D expenses and strong performance from the fuel systems segment [7][8] - Adjusted earnings per share increased to $1.59, up from $1.17 in the same period last year [8] Business Line Data and Key Metrics Changes - The fuel systems segment saw sales increase by 13.4%, with a segment margin of 13.3%, up 190 basis points year-over-year, driven by supply chain savings and productivity improvements [19][20] - The aftermarket segment's sales were slightly up year-over-year, but the margin decreased by 80 basis points to 15% due to an unfavorable product mix [20] Market Data and Key Metrics Changes - The company experienced increased volumes in Asia and the Americas, contributing to the overall sales growth [7][19] - The integration of SEM is expected to contribute approximately $50 million in annual sales, although initial headwinds are anticipated due to market challenges [21][39] Company Strategy and Development Direction - The company is focused on enhancing operational efficiency and data visibility by consolidating four ERP systems into a single global SAP S/4HANA platform [6] - A disciplined approach to capital allocation is being maintained, with $26 million invested in capital expenditures during Q3, primarily for new tooling and equipment [14] - The company is exploring selective M&A opportunities to enhance product offerings and increase market presence [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic and industry outlook but emphasized a focus on operational efficiency and sustainable performance [7][10] - The company has adjusted its 2025 guidance to account for the SEM acquisition and external factors, raising the midpoint of revenue guidance by $40 million [16][24] - The expected adjusted tax rate has improved to a range of 33% to 37%, reflecting ongoing tax structuring projects [25] Other Important Information - The company reached an agreement with its former parent to resolve litigation, with expectations that settlement payments will be offset by tax recoveries [9][22] - Cash and cash equivalents stood at $349 million, with total liquidity of approximately $900 million, maintaining a solid balance sheet [15][23] Q&A Session Summary Question: Inquiry on sales growth excluding acquisition and currency impact - Management indicated that the 5.1% sales growth was balanced between pricing, tariff recoveries, and increased volumes [29][30] Question: Impact of pricing and tariff recovery on future margins - Management confirmed that pricing linked to tariffs is expected to remain sticky, affecting EBITDA margins [30][31] Question: Aerospace program's impact on future business - Management noted increased interest from aerospace companies following the launch of their first aerospace program, anticipating additional awards [32][33] Question: Commentary on fourth quarter guidance and SEM's performance - Management explained that SEM's expected contribution in Q4 is lower due to seasonal factors and initial integration challenges [37][39] Question: Impact of Ford fuel pump recall on cash flow - Management reported no cash impacts from the recall and no adjustments to warranty accruals [49][50] Question: Timing and realization of restructuring program savings - Management indicated that the restructuring program is rolling out now, with full realization of savings expected by 2028 [51][52]

Financial Data and Key Metrics Changes - D.R. Horton reported consolidated pre-tax income of $1.2 billion on revenues of $9.7 billion for Q4 2025, with a pre-tax profit margin of 12.4% [7] - For the full year, consolidated pre-tax income was $4.7 billion, with a pre-tax profit margin of 13.8% [7] - Net income for Q4 was $905.3 million, or $3.04 per diluted share, on consolidated revenues of $9.7 billion [9] - The average closing sales price for Q4 was $365,600, down 1% sequentially and down 3% year over year [9] - The company generated $3.4 billion of cash from operations in fiscal 2025, representing 10% of total revenues [8][20] Business Line Data and Key Metrics Changes - Home sales revenues for Q4 were $8.5 billion on 23,368 homes closed [9] - Net sales orders in Q4 increased 5% year over year to 20,078 homes, with order value increasing 3% to $7.3 billion [10] - The average price of net sales orders in Q4 was $364,900, flat sequentially and down 3% from the prior year [10] - Rental operations generated $81 million of pre-tax income on $805 million of revenues in Q4 [16] Market Data and Key Metrics Changes - The average number of active selling communities was up 1% sequentially and up 13% from the prior year [10] - The company’s home building lot position at year-end consisted of approximately 592,000 lots, with 25% owned and 75% controlled through purchase contracts [15] - In the Southeast region, particularly Florida, some markets like Jacksonville and Southwest Florida faced excess inventory issues [75] Company Strategy and Development Direction - D.R. Horton remains focused on capital efficiency to generate strong operating cash flows and deliver compelling returns to shareholders [8] - The company plans to tailor product offerings and sales incentives based on demand in each market to maximize returns [8] - The company expects to generate consolidated revenues of approximately $33.5 to $35 billion for fiscal 2026, with homes closed in the range of 86,000 to 88,000 [21] Management's Comments on Operating Environment and Future Outlook - Management noted that new home demand remains impacted by affordability constraints and cautious consumer sentiment [6] - The company anticipates that incentive levels will remain elevated in fiscal 2026, depending on demand strength during the spring selling season [12] - Management expressed a positive outlook for the housing market over the medium to long term, despite current volatility and uncertainty in the economy [23] Other Important Information - The company repurchased 30.7 million shares for $4.3 billion in fiscal 2025, reducing the outstanding share count by 9% [20] - D.R. Horton’s book value per share increased by 5% year over year to $82.15 [20] - The company’s consolidated leverage at fiscal year-end was 19.8%, with plans to maintain leverage around 20% over the long term [20] Q&A Session Summary Question: How to think about the walk from the 20% gross margin in Q4 to the 20 to 20.5% in Q1? - Management indicated that the unusual impact from litigation in Q4 is not expected to persist into Q1, and the baseline would be a more normal impact from warranty and litigation going forward [27] Question: How quickly can the company ramp up starts to meet demand? - Management acknowledged that starts were intentionally lower to align inventory and expressed confidence in their ability to respond to market demand as it increases [28] Question: What is the outlook for rental operations and its impact on consolidated operating margin? - Management expects rental operations to be softer in Q1, impacting consolidated operating margin due to lower closings volume on the homebuilding side [32] Question: Can you provide insight into the Southeast market performance? - Management noted that while some areas in Florida are struggling with inventory balance, overall demand remains choppy across various markets [65] Question: What are the expectations for lot costs and stick and brick costs? - Management indicated that lot costs are expected to remain sticky, but they anticipate opportunities to renegotiate stick and brick costs down as the year progresses [56]

Financial Data and Key Metrics Changes - The company reported record net sales of $908 million for Q3 2025, an increase of 8.2% year-over-year, benefiting from the SEM acquisition, favorable foreign exchange, and customer pricing related to tariff recoveries [7][18] - Adjusted EBITDA reached $133 million with a margin of 14.6%, reflecting a 30 basis point year-over-year expansion, primarily due to lower R&D expenses and strong performance from the fuel systems segment [7][8] - Adjusted earnings per share increased to $1.59 from $1.17 in the same period last year [8] Business Line Data and Key Metrics Changes - The fuel systems segment saw sales increase by 13.4%, with a segment margin of 13.3%, up 190 basis points year-over-year, driven by supply chain savings and productivity improvements [19][20] - The aftermarket segment's sales were slightly up year-over-year, but the margin decreased by 80 basis points to 15% due to unfavorable product mix [20] Market Data and Key Metrics Changes - The company experienced increased volumes in Asia and the Americas, contributing to the overall sales growth [7][19] - The integration of SEM is expected to contribute approximately $50 million in annual sales, although initial headwinds are anticipated due to market challenges [21][39] Company Strategy and Development Direction - The company is focused on enhancing efficiency and data visibility by consolidating four ERP systems into a single global SAP S/4HANA platform [6] - A disciplined approach to capital allocation is being maintained, with $26 million invested in capital expenditures during Q3, primarily for new tooling and equipment [14] - The company is exploring selective M&A opportunities to enhance product offerings and increase market presence [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic and industry outlook but emphasized a focus on operational and cost efficiency initiatives [7] - The company has adjusted its 2025 revenue outlook to account for the SEM acquisition and external factors, raising the midpoint by $40 million [16][24] - Management expressed confidence in generating solid returns despite challenges from low-margin tariff recoveries and market volatility [25] Other Important Information - The company reached an agreement with its former parent company to resolve litigation, expecting that settlement payments will be offset by tax recoveries [9][22] - Cash and cash equivalents stood at $349 million, with total liquidity of approximately $900 million, maintaining a net leverage ratio of 1.4 times [15][23] Q&A Session Summary Question: Inquiry about sales growth excluding acquisition and currency impact - Management indicated that the 5.1% sales growth was balanced between pricing, tariff recoveries, and increased volumes [29] Question: Discussion on pricing and tariff recovery sustainability - Management noted that pricing linked to tariffs is expected to remain sticky unless tariffs are removed, impacting EBITDA margins [30] Question: Impact of aerospace program on customer interest - Management confirmed that successful delivery of aerospace components is expected to attract more inquiries from major engine manufacturers [32] Question: Commentary on Q4 guidance and SEM's performance - Management highlighted that Q4 typically sees lighter volumes and that SEM's initial performance may face headwinds due to seasonal factors [38][39] Question: Clarification on factors affecting EBIT flow-through in fuel systems - Management explained that low margins on certain components, such as ECUs, impacted EBIT flow-through despite strong productivity improvements [44] Question: Update on Ford fuel pump recall impact - Management reported no cash impacts or concerns related to the Ford fuel pump recall [50] Question: Timing and realization of restructuring program savings - Management indicated that the restructuring program is rolling out now, with full realization of savings expected by 2028 [52][53]

Financial Data and Key Metrics Changes - The company reported record net sales of $908 million for Q3 2025, an increase of 8.2% year-over-year, benefiting from the SEM acquisition, favorable foreign exchange, and increased volume in Asia and the Americas [6][18] - Adjusted EBITDA reached $133 million with a margin of 14.6%, reflecting a 30 basis point year-over-year expansion, primarily due to lower R&D expenses and strong performance from the fuel systems segment [6][8] - Adjusted earnings per share increased to $1.59, up from $1.17 in the same period last year [8] Business Line Data and Key Metrics Changes - The fuel systems segment saw sales increase by 13.4%, with a segment margin of 13.3%, up 190 basis points year-over-year, driven by supply chain savings and productivity improvements [19] - The aftermarket segment's sales were slightly up year-over-year, with a margin of 15%, down 80 basis points due to unfavorable product mix [20] Market Data and Key Metrics Changes - The company experienced increased sales volumes in Asia and the Americas, contributing to overall revenue growth [6][19] - The impact of foreign exchange was a favorable $19 million, while the SEM acquisition contributed an additional $8 million to net sales [18][19] Company Strategy and Development Direction - The acquisition of SEM is expected to enhance the company's ignition and electronic control capabilities, creating a platform for innovation and efficiency [5] - The company is consolidating four ERP systems into a single global SAP S/4HANA platform to enhance efficiency and data visibility [5] - The company is focused on operational and cost efficiency initiatives to drive sustainable performance across all markets [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic and industry outlook but emphasized a commitment to operational efficiency and customer value [6] - The company adjusted its 2025 revenue guidance upward by $40 million, reflecting contributions from SEM and favorable market conditions [16][25] - Management expressed confidence in generating solid returns despite challenges from tariffs and market volatility [26] Other Important Information - The company returned $41 million to shareholders through dividends and share repurchases during the quarter, maintaining a solid balance sheet with cash and cash equivalents of $349 million [15][24] - The company expects to incur restructuring charges of approximately $35 million to optimize its operations, with an estimated $25 million in annual savings [26] Q&A Session Summary Question: Can you provide more detail on the 5.1% sales increase excluding acquisition and currency impacts? - Management indicated that the increase was balanced between pricing, tariff recoveries, and volume growth [30] Question: Will pricing remain sticky moving forward? - Management stated that pricing linked to tariffs is expected to remain stable unless tariffs are removed, impacting EBITDA margins [31] Question: How is the aerospace program progressing? - Management confirmed increased interest from aerospace companies and expects additional awards in the coming quarters [34] Question: What is the guidance for SEM in Q4? - Management noted that Q4 typically sees lighter sales due to seasonality, with SEM expected to contribute around $7 million [39] Question: What impact is the Ford fuel pump recall having on cash? - Management reported no cash impacts or adjustments to warranty accruals related to the recall [50] Question: When will the restructuring program be fully realized? - Management indicated that the restructuring program is rolling out now, with full realization of savings expected by 2028 [52]

Financial Data and Key Metrics Changes - The group gross written premium was $4.4 billion, down 1% from last year, reflecting targeted re-underwriting in insurance and careful portfolio mix management in reinsurance [7][15] - Operating income was $316 million compared to $630 million last year, primarily due to reserve adjustments [7][15] - The combined ratio for the quarter was 103.4%, with an attritional combined ratio of 89.6%, indicating strong underlying performance [7][15] Business Line Data and Key Metrics Changes - The reinsurance business reported gross written premiums of $3.2 billion, down 2% year-over-year, with a combined ratio of 87%, improving year-over-year due to lower CAT losses and favorable prior year development [7][8] - The global specialties business produced almost $500 million of gross written premium and over $100 million of underwriting income in the quarter, with expectations for continued growth [8][10] - In the insurance segment, gross premiums written increased 2.7% in constant dollars to $1.1 billion, driven by strong growth in specialty lines, offset by actions taken in U.S. casualty lines [17][18] Market Data and Key Metrics Changes - Market conditions in the reinsurance business, particularly in CAT-exposed lines, are expected to remain favorable through the January 1, 2026 renewal [8][10] - The company is seeing increased competition in the property CAT market, but believes pricing remains attractive despite potential decreases [56][58] Company Strategy and Development Direction - The company is exiting global retail insurance to focus on core reinsurance and specialty insurance businesses, which are expected to yield better returns on capital [4][12] - A comprehensive adverse development cover has been established for the North America insurance division, covering reserves for accident years 2024 and prior, to enhance capital flexibility [5][14] - The company aims to operate in businesses with clear competitive advantages and strong economics, while continuing to evaluate opportunities for diversification [6][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the core reinsurance business and wholesale/specialty insurance operations, despite challenges in the U.S. casualty market [5][10] - The management team emphasized a disciplined approach to capital deployment and risk management, particularly in light of social inflation and legal system challenges [9][18] - The company expects to unlock more capital for shareholder returns over time, particularly through the recent strategic transactions [39][40] Other Important Information - The company reported net investment income of $540 million for the quarter, driven by higher assets under management and strong alternative asset returns [19][20] - Shareholders' equity ended the quarter at $15.4 billion, with a book value per share of $366.22, reflecting a 15.2% improvement from year-end 2024 [21][22] Q&A Session Summary Question: What is the CAT load for the specialty business? - Management indicated that the CAT load for the specialty business is quite modest and low relative to the overall insurance division burden [29] Question: What is the expected capital release from the $2 billion retail business transferred to AIG? - Management expects substantial capital release over time, with benefits from non-renewing premium and enhanced reserves contributing to capital relief becoming visible in the latter half of 2026 [35] Question: How does the company view capital repatriation and share buybacks? - Management views share buybacks as attractive, especially given the stock's trading below book value, and expects to resume meaningful repurchases going forward [39] Question: What is the confidence level regarding casualty reserves in the reinsurance business? - Management expressed confidence that the casualty reserves in the reinsurance business will hold up, emphasizing the distinction between the performance of the insurance and reinsurance portfolios [51][52] Question: How does the company plan to diversify its operations? - Management stated that diversification opportunities will be evaluated carefully, focusing on businesses with clear competitive advantages and strong economics [81]

Financial Performance & Shareholder Returns - D.R Horton achieved home sales revenues of $31.4 billion from 84,863 homes closed in fiscal year 2025[12, 90] - The company returned $4.8 billion to shareholders through repurchases and dividends in FY25[9, 86] - D.R Horton repurchased 30.7 million shares of common stock for $4.3 billion, reducing outstanding share count by 9% year-over-year[51, 56, 86] - The company paid cash dividends of $494.8 million, which is $1.60 per common share, a 33% increase compared to the prior year[56, 86] Operational Highlights - D.R Horton's homebuilding operations generated revenues of $8.5 billion from 23,368 homes closed in Q4 2025[84, 87] - The average sales price of homes closed was $370.4K[9, 24] - 72% of homes closed were priced below $400k[23] - D.R Horton's financial services segment, primarily DHI Mortgage, had an 81% mortgage capture rate of D.R Horton homebuyers[16, 31, 81] Future Outlook - For fiscal year 2026, D.R Horton expects consolidated revenues to be in the range of $33.5 billion to $35.0 billion and between 86,000 and 88,000 homes closed[42] - The company anticipates repurchasing approximately $2.5 billion of common stock and paying out ~$500 million in dividends in fiscal 2026[42, 51]

Core Points - The company is hosting an investor update in Zurich in two days to discuss strategic direction, capital allocation, and midterm guidance [3] - The focus of the current call is on Q3 and year-to-date financial results, along with details regarding nonrecurring impairment charges announced on September 18 [3]

Financial Data and Key Metrics Changes - Total revenue grew by 5.9% year over year to $4.2 billion, with rental revenue increasing by 5.8% to $3.7 billion, both setting third quarter records [5][14] - Adjusted EBITDA reached a record of over $1.9 billion, resulting in a margin of 46%, while adjusted EPS was reported at $11.7 [5][14] - Year-to-date free cash flow was $1.2 billion, with expectations to generate between $2.1 billion and $2.3 billion for the full year [9][21] Business Line Data and Key Metrics Changes - Specialty rental revenue increased by 11% year over year, driven by growth across all product offerings and the opening of 47 cold starts year to date [6][14] - Ancillary and rerent revenue grew over 10%, contributing an additional $69 million to total revenue [15] - Fleet productivity increased by 2%, contributing to an overall equipment rental (OER) growth of 4.7% [5][15] Market Data and Key Metrics Changes - The construction end market saw strong growth in both infrastructure and nonresidential construction, while the industrial end market showed particular strength within power [6][7] - The used equipment market remained healthy, with $619 million of original equipment cost (OEC) sold at a recovery rate of 54% [8][15] Company Strategy and Development Direction - The company is focused on maintaining a customer-centric model, which is seen as a key driver of growth and competitive differentiation [4][12] - Plans to spend over $4 billion on fleet this year to capitalize on current demand and anticipated growth in 2026 [8][9] - The company aims to balance organic growth through capital expenditures with inorganic growth through disciplined M&A, while returning nearly $2.4 billion to shareholders [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, expecting momentum to carry into 2026, with a focus on being the partner of choice for large projects [4][12] - The company anticipates continued strong demand, particularly from large projects, and is adjusting its CapEx guidance accordingly [20][21] - Management acknowledged challenges related to cost dynamics, particularly in delivery and fleet repositioning, but remains focused on supporting customer growth efficiently [17][20] Other Important Information - The company returned over $730 million to shareholders in the quarter through share buybacks and dividends, with plans to return nearly $2.4 billion for the full year [10][19] - The leverage ratio remains low at less than 1.9 times, providing flexibility for future M&A opportunities [10][19] Q&A Session Summary Question: Demand and CapEx for 2026 - Management clarified that the accelerated CapEx in Q3 was to meet existing demand and not a pull forward from 2026, with expectations for growth CapEx in 2026 [24][25] Question: Pricing for Ancillary Services - Management acknowledged the need to rethink pricing for ancillary services, which have become a larger part of total rental revenue, but emphasized the importance of being responsive to customer needs [26][28] Question: Local Market Dynamics - Management indicated that local markets are currently flat, with growth primarily driven by large projects, and expressed optimism about potential improvements in the local market in 2026 [46][48] Question: Infrastructure Investment Outlook - Management noted that infrastructure remains a strong market, supported by ongoing demand and funding from various sources, including federal initiatives [99][100] Question: Margin Dynamics and Acquisitions - Management discussed the impact of acquisitions on margins, noting that while they can be dilutive, they are strategically beneficial and necessary for long-term growth [123][124]

Financial Data and Key Metrics Changes - Total revenue grew by 5.9% year over year to $4.2 billion, with rental revenue increasing by 5.8% to $3.7 billion, both setting third-quarter records [7][17] - Adjusted EBITDA reached a record of over $1.9 billion, resulting in a margin of 46% [8][19] - Adjusted EPS was reported at 11.7 [8] Business Line Data and Key Metrics Changes - Specialty rental revenue increased by 11% year over year, driven by growth across all product offerings and 18 cold starts [8][9] - Ancillary and re-rent revenue grew over 10%, contributing an additional $69 million [18] - Fleet productivity increased by 2%, contributing to an OER growth of 4.7% [8][19] Market Data and Key Metrics Changes - The construction end market saw strong growth in both infrastructure and non-residential construction, while the industrial end market showed strength in power [9] - The demand for used equipment remained healthy, with $619 million of OEC sold at a recovery rate of 54% [9][10] - Year-to-date, the company expects to sell approximately $2.8 billion of fleet this year [10] Company Strategy and Development Direction - The company is focused on being the partner of choice for large projects, leveraging its scale, technology, and value proposition [14][15] - The updated guidance reflects confidence in delivering solid results, with total revenue growth expected to be around 5% to 6% excluding used sales [13][22] - The company plans to continue investing in both organic and inorganic growth, with a robust M&A pipeline [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, expecting momentum to carry into 2026 [6][14] - The company is proactively managing costs, particularly in delivery and fleet repositioning, to mitigate challenges [20][72] - Management noted that while margins are under pressure from costs, the core profitability of the business remains strong [82] Other Important Information - The company returned over $730 million to shareholders through share buybacks and dividends in the quarter, with a full-year target of nearly $2.4 billion [12][21] - The balance sheet remains strong with net leverage of less than 1.9 times [12][21] Q&A Session Summary Question: Demand profile and CapEx cadence for 2026 - Management clarified that the accelerated CapEx in Q3 was to meet existing demand and not a pull forward from 2026, with expectations for growth CapEx in 2026 [27][28] Question: Pricing strategy for ancillary services - Management acknowledged the need to rethink pricing for ancillary services, which have become a larger part of the business, while noting that delivery costs are a significant component [30][31] Question: Local market growth and impact of rate cuts - Management indicated that local markets are currently flat, with potential upside if rate cuts lead to increased construction activity [50][51] Question: Large project dynamics and customer sentiment - Management reported strong demand from large projects, with a robust pipeline and positive customer sentiment [39][102] Question: Infrastructure investment outlook - Management expressed confidence in continued infrastructure investment, supported by federal and state initiatives, and noted that the demand for infrastructure remains strong [94][95]

Financial Data and Key Metrics Changes - Q3 revenue exceeded $1 billion, marking a 10.7% increase compared to 2024, with organic revenue rising by 5.9% due to favorable pricing and volume [8][9] - Adjusted EPS for Q3 was $2.30, an increase of $0.14 or 6.5% year-over-year [9] - Year-to-date available cash flow reached $485.2 million, up 25.1% from the previous year [12] Business Line Data and Key Metrics Changes - The Americas segment reported revenue of $844 million, up 7.9% on a reported basis and 6.4% organically, driven by non-residential business demand [9][10] - The International segment delivered revenue of $226 million, a 22.5% increase on a reported basis and 3.6% organically, with acquisitions contributing significantly [11] Market Data and Key Metrics Changes - Non-residential business in the Americas showed mid-single-digit organic growth, while residential market demand remained soft [10][14] - International markets are expected to remain largely flat, with some growth driven by recent acquisitions [14][15] Company Strategy and Development Direction - The company is focused on long-term capital allocation for growth, with approximately $600 million allocated to acquisitions year-to-date [4][7] - Recent acquisitions, including UAP and Bressant, are aimed at strengthening the product portfolio and enhancing cost positions [6][11] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 adjusted EPS outlook to $8.10 to $8.20, reflecting strong execution and recent acquisitions [5][15] - The overall market conditions for 2026 are expected to be similar to 2025, with continued focus on price adjustments to offset inflation [15][16] Other Important Information - The company continues to pay dividends, amounting to $0.51 per share in Q3, totaling approximately $44 million [7] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 1.8 times [13] Q&A Session Summary Question: Update on spec writing and key verticals - Spec activity has accelerated in 2025, supporting organic growth in non-residential markets [20][22] Question: M&A pipeline and potential earnings accretion - The M&A pipeline remains strong across both reporting segments, with ongoing activity in portfolio expansion and complementary software [23][24] Question: Conversations with building owners and architects regarding macro uncertainty - Non-res project activity is healthy, with private finance returning to the market, indicating a positive environment [29][30] Question: International volume growth and momentum - International segment showed volume growth after previous declines, with electronics businesses performing well [32][33] Question: Adjusted operating margins and corporate costs - Margins are expected to expand in Q4, with corporate costs remaining consistent with previous quarters [36][39] Question: Residential outlook for Q4 - Residential market demand is expected to remain soft, aligning with year-to-date growth rates [65] Question: Pricing power and customer reactions to tariffs - The company has not seen pricing fatigue, and the demand environment in non-res remains strong [68] Question: Spec content evolution and new product contributions - There is an increase in electronics adoption in specs, with new product launches contributing positively [75][76]