Core Insights - The company reported a decline in net sales and adjusted EBITDA for Q4 FY2025, reflecting soft end-market demand and ongoing market challenges [4][5][12] - Management anticipates a mid-single-digit decline in North American market volumes for FY2026, marking a fourth consecutive year of declines in large-ticket repair and remodel activity [9][13][25] - The pending merger with Azek is expected to drive significant revenue and cost synergies, enhancing growth and margin expansion opportunities [11][45][82] Financial Performance - Global net sales for Q4 FY2025 were $972 million, down 3% year-over-year, with adjusted EBITDA of $269 million, a 4% decline [4][5][62] - North America net sales reached $2.9 billion for FY2025, with a 2% revenue decline and a 3% volume decline [5][6][65] - Adjusted net income for Q4 FY2025 was $156 million, with adjusted diluted EPS of $0.36 [5][63] Regional Performance - Asia Pacific net sales declined 17% in US dollars and 13% in Australian dollars during Q4 FY2025, with a 31% decline in volumes attributed to the closure of the Philippines [3][7][69] - Europe achieved record net sales of $135 million in Q4 FY2025, up 5% in USD, driven by strong performance in high-value products [8][71] Cost and Margin Analysis - North America EBIT margin fell to 28.2% in Q4 FY2025, down 350 basis points year-over-year, primarily due to increased depreciation and amortization [6][66] - North America EBITDA margin was 34.4% in Q4 FY2025, down 190 basis points, with full-year EBITDA reaching $1 billion [6][67] - The company faced low double-digit inflation in raw materials, impacting margins, but managed to maintain strong cost control measures [9][63] Strategic Outlook - The company expects low single-digit net sales growth in North America for FY2026, with a focus on maintaining EBITDA margins near 35% [9][74] - Capital expenditures for FY2026 are projected to decline by nearly $100 million to approximately $325 million, supporting free cash flow growth [10][79] - The merger with Azek is anticipated to create a leading growth platform in building products, with expected baseline revenue synergies of $500 million [11][47][82]