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% [8][12] - Adjusted EBITDA margin was reported at 19.8%, down 100 basis points compared to the previous year [14] - Adjusted earnings per diluted share decreased to $5.36 from $5.68 year-over-year [15] 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 10.4% decline in volume [12][13] - 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 [13] - Adjusted gross profit for the quarter was 30.1%, compared to 30.7% last year [14] Market Data and Key Metrics Changes - The residential new construction market remains weak, with expectations of low double-digit declines for the year, while heavy commercial projects are expected to remain strong [9][17] - The company anticipates that commercial and industrial same-branch sales will be flattish, with some potential upside in multifamily backlogs [17][40] Company Strategy and Development Direction - The company is focused on M&A as a primary capital allocation strategy, with a strong pipeline of acquisition candidates [9][16] - Recent acquisitions, including Progressive Roofing and SPI, are expected to enhance capabilities and geographic footprint, with anticipated annual run rate synergies of $35-$40 million over the next two years [7][16] - The total addressable market has expanded to approximately $90 billion, with a clear growth strategy through both organic means and M&A [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business despite macroeconomic challenges, emphasizing a diversified business model across various construction end markets [19][20] - The company remains optimistic about the future, particularly in commercial and industrial sectors, while acknowledging ongoing challenges in the residential market [40][62] Other Important Information - The company repurchased nearly 178,000 shares, returning $65.5 million to shareholders in the third quarter [9][16] - Total liquidity at the end of the quarter was $2.1 billion, with total debt at $2.9 billion [15] Q&A Session Summary Question: Sales contribution from Progressive Roofing and full-year expectations - Progressive contributed approximately $92 million in sales for the quarter, with a revised full-year expectation of around $205 million due to project delays [23][24] Question: Insights on recent acquisitions and their strategic value - Recent acquisitions, including Diamond Door Products and Insulation Fabrics, are seen as strategic additions that enhance product offerings and customer relationships [25][26] Question: Pricing pressures and guidance for insulation products - The company anticipates a $30 million headwind from insulation pricing, with approximately $12 million impact observed in Q3 [33][34] Question: Outlook for residential and commercial markets - Management expects residential sales to decline low double digits, while commercial and industrial sales are projected to be flat [36][40] Question: Competitive dynamics in the residential installation market - Increased competition has been noted in slower markets, but the company has maintained its market share and pricing strategy effectively [84][86] 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 [72][73]

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]

Financial Data and Key Metrics Changes - Total sales grew by 1.4% to $1,400,000,000, driven by M&A contributions of 7.9% and pricing increases of 0.3%, partially offset by a volume decline of 6.7% [9][14][21] - Adjusted EBITDA for the third quarter totaled $275,600,000, with an adjusted EBITDA margin of 19.8%, down 100 basis points compared to the previous year [17][19] - Adjusted earnings per diluted share were $5.36, compared to $5.68 in the previous year [19] Business Line Data and Key Metrics Changes - Installation services segment sales totaled $858,300,000, up 0.2%, with M&A contributing 11%, offset by a volume decline of 10.4% and a pricing decrease of 0.5% [14][15] - Specialty distribution sales grew by 1.4% to $608,900,000, driven by acquisitions of 2.3% and pricing of 1.2%, partially offset by a volume decline of 2.1% [15][16] - Adjusted gross profit in the third quarter was 30.1%, compared to 30.7% last year [15] Market Data and Key Metrics Changes - The residential new construction market remains weak, but growth in heavy commercial and industrial sectors is ongoing [9][10] - The company expects residential sales to decline in low double digits for the year, while commercial and industrial sales are expected to be flattish [21][22] Company Strategy and Development Direction - The company is focused on M&A as a top capital allocation priority, with expectations of delivering $35,000,000 to $40,000,000 in annual run rate synergies from recent acquisitions over the next two years [6][10][20] - The total addressable market has expanded to approximately $90,000,000,000, with a strategy for continued growth both organically and through M&A [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity in the U.S. housing market despite current challenges, citing underbuilding as a fundamental issue [9][10] - The company anticipates continued mixed economic signals and affordability concerns impacting consumer confidence and home buying decisions [10][22] Other Important Information - The company repurchased nearly 178,000 shares, returning $65,500,000 in capital to shareholders [10][21] - The company plans to host an Investor Day on December 9, where it will discuss its differentiated business model and growth strategy [11][25] Q&A Session Summary Question: Sales contribution from Progressive Roofing and full-year expectations - The total contribution from Progressive Roofing in the quarter was about $92,000,000, with a revised expectation of approximately $205,000,000 for the full year due to project delays [28][29] Question: Insights on recent acquisitions - The acquisitions were strategic to enhance product offerings and customer relationships, particularly in insulated door systems and insulation accessories [31][34] Question: Pricing pressures and insulation pricing trends - The company anticipates a $30,000,000 headwind from pricing pressures, with negative impacts primarily on residential products [40][41] Question: Outlook for residential and commercial markets - The residential market is expected to remain weak, while there are signs of improvement in multifamily backlogs [46][48] Question: Competitive dynamics in residential installation - Increased competitiveness in slower markets has been noted, but the company maintains strong relationships with builders to manage pricing and volume effectively [104][106]