Slide 1: Q3 FY2025 Earnings Call
Q3 FY2025 Earnings Call March 6, 2025
Slide 2: Safe Harbor and Basis of Presentation
2 Safe Harbor and B asis of Presentation Forward - Looking Statement Safe Harbor — This presentation includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward - looking statements by the Company’s use of for
Slide 3: Q3 Fiscal 2025 At a Glance
3 Q3 Fiscal 2025 At a Glance Comparisons are to Q 3 FY2 4 unless noted otherwise • Results in the quarter reflect the impact of soft end market demand and steel pricing, both of which deteriorated meaningfully during the last half of the quarter • Economic uncertainty, general affordability concerns
Slide 4: Continued Focus on the Execution of Our Strategy
4 Continued Focus on the Execution of Our Strategy Strategic Pillars • Taking near - term actions to further align and rationalize our operations with today’s market realities • Solid balance sheet with no near - term maturities • Significant levels of free cash flow generation • Disciplined capital
Slide 5: Sales Highlights – Q3 FY25
5 Sales Highlights – Q3 FY25 U.S. Per Day Residential Sales Q325 Net Sales $ 1.3 B Per Day Net Sales 2.1% U.S. Per Day Commercial Sales 7.8% 2.7% 0.2% • Demand deteriorated during the last half of the quarter across all end markets • Adverse winter weather and holiday timing negatively impacted sale
Slide 6: Weak Demand & Price/Cost Dynamics Impact Profitability
6 Weak Demand & Price/Cost Dynamics Impact Profitability 1 For a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP metrics, see Appendix . 2 The most comparable GAAP metric for Adjusted EBITDA margin is Net Income Margin. However, due to the fact that
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities • Repurchased 445K shares for $39.3 million during Q325 • $218.4 million repurchase authorization remaining at January 31, 2025 1.5x 1.7x 2.1x 2.3x 2.4x 1/31/2024 04/30/2024 7/31/2024 10/31/2024 1/31/2025 $14 $56 $50 $417 $35 $847 FY25 FY2
Slide 8: End Market & Product-Level Expectations
8 End Market & Product - Level Expectations Q4 FY25 YOY Per Day Price/Mix Expectations Q4 FY25 YOY Per Day Volume Expectations Product Category Total (Incl. acquisitions) Organic Down high single digits •Single - family: Down ~35% •Multi - family: Down ~20% •Commercial: Flat to up slightly Down low
Slide 9: Consolidated Expectations
9 Consolidated Expectations Q4 FY25 Expectation Metric for Q4 FY25 Down high single digits YOY in total, Down low double digits organically Net Sales ~31.2% Gross Margin $20 million - $22 million GAAP Net Income $100 million - $110 million Adjusted EBITDA 1 ~8.0% Adjusted EBITDA Margin 1 Full Year F
Slide 10: Appendix
10 Appendix
Slide 11: Summary Quarterly Financials
11 Summary Quarterly Financials Commentary A. Net reduction in branches is a result of the divestiture of Leading Edge Insulation (LEI) and branch closures in the Northeast, offset by two additional Greenfield openings (In millions) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 (Unaudited) Wallboard Volum
Slide 12: Quarterly Cash Flows
12 Quarterly Cash Flows (1) Free cash flow is a non - GAAP financial measure defined as net cash provided by (used in) operations less capital expenditures. D ifferences may occur due to rounding. ($ in millions) (Unaudited) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 Net income (loss) $ 86.8 $ 81.0 $ 5
Slide 13: Q3 2025 Net Sales
13 Q3 2025 Net Sales 1. Organic net sales growth calculation excludes net sales of acquired businesses until first anniversary of acquisition date an d i mpact of foreign currency translation. ($ in millions) (Unaudited) FY25 FY24 Reported Organic (1) Organic (1) 1,174.0$ 1,258.3$ Acquisitions 95.8
Slide 14: Quarterly Net Income (Loss) to Adjusted EBITDA Reconciliation
14 Quarterly Net Income (Loss) to Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of
Slide 15: Net Income (Loss) to Pro Forma Adjusted EBITDA Reconciliation
15 Net Income (Loss) to Pro Forma Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of
Slide 16: Income (Loss) Before Taxes to Adjusted Net Income Reconciliation
16 Income (Loss) Before Taxes to Adjusted Net Income Reconciliation Commentary A. Represents all non - cash amortization resulting from business combinations. To make the financial presentation more consistent with other public building products companies, beginning in the first quarter 2025 we are
Slide 17: Reported SG&A to Adjusted SG&A Reconciliation
17 Reported SG&A to Adjusted SG&A Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share - based a
Slide 18: Leverage Summary
18 Leverage Summary (1) Net of unamortized discount of $2.3mm, $2.0mm, $1.9mm, $1.8mm and $1.7mm as of January 31, 2024, April 31, 2024, July 31, 202 4, October 31, 2024 and January 31, 2025, respectively. (2) Net of deferred financing costs of $3.8mm, $4.4mm, $4.3mm, $4.0mm and $3.8mm as of January
Slide 19: Net Income to Adjusted EBITDA Outlook Reconciliation
19 Net Income to Adjusted EBITDA Outlook Reconciliation Q4 FY25 Net Income $20 - $22 Interest expense, net 21.4 - 23.6 Provision for income taxes 6.9 - 7.6 Depreciation and amortization expense 38.3 - 42.2 Other Adjustments 13.4 - 14.7 Adjusted EBITDA $100 - $110