Financial Data and Key Metrics Changes - Total sales grew by 1.4% to $1.4 billion, driven by M&A contributions of 7.9% and pricing of 0.3%, partially offset by a volume decline of 6.7% [6][11] - Adjusted EBITDA margin was reported at 19.8%, down 100 basis points compared to the previous year [13] - Adjusted earnings per diluted share decreased to $5.36 from $5.68 year-over-year [14] Business Line Data and Key Metrics Changes - Installation services segment sales totaled $858.3 million, up 0.2%, with M&A contributing 11% but offset by a volume decline of 10.4% and a pricing decrease of 0.5% [11][12] - Specialty distribution sales grew by 1.4% to $608.9 million, driven by acquisitions of 2.3% and pricing of 1.2%, despite a 2.1% volume decline [12] - Adjusted gross profit for the quarter was 30.1%, compared to 30.7% last year [12] Market Data and Key Metrics Changes - The residential new construction market remains weak, impacting overall performance, while heavy commercial and industrial markets continue to grow [6][8] - The company expects residential sales to decline in low double digits for the year, while commercial and industrial sales are anticipated to be flat [16] Company Strategy and Development Direction - The company is focused on M&A as a primary capital allocation strategy, with recent acquisitions expected to deliver $35-$40 million in annual run rate synergies over the next two years [5][15] - The total addressable market has expanded to approximately $90 billion, with a clear strategy for growth both organically and through acquisitions [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity despite current macroeconomic uncertainties, noting that housing in the U.S. is still underbuilt [8][18] - The company anticipates continued challenges in the residential market but sees potential growth in the commercial and industrial sectors [18] Other Important Information - The company repurchased nearly 178,000 shares, returning $65.5 million to shareholders in the third quarter [8][15] - Total liquidity at the end of the quarter was $2.1 billion, with total debt at $2.9 billion [14] Q&A Session Summary Question: Sales contribution from Progressive Roofing and full-year expectations - The sales contribution from Progressive Roofing in the quarter was approximately $92 million, with a revised full-year expectation of around $205 million due to project delays [21][23] Question: Insights on recent acquisitions and their strategic value - Recent acquisitions, including Diamond Door Products and Insulation Fabrics, are expected to enhance product offerings and drive cross-selling opportunities [24][26] Question: Pricing pressures and guidance for insulation products - The company anticipates a $30 million headwind from pricing pressures, particularly in residential products, with ongoing efforts to manage costs [32][33] Question: Outlook for residential and commercial markets in 2026 - Management expects residential sales to remain weak, with potential for slight declines in the first half of 2026, while commercial and industrial markets show signs of stability [35][36] Question: Competitive dynamics in residential installation - Increased competition in slower markets has led to more aggressive pricing strategies, but the company has maintained its market share [82][84] Question: Future M&A activity in the roofing sector - The company is actively pursuing M&A opportunities in the roofing space, leveraging relationships established through recent acquisitions [68][70]