What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-05-07 · 130 added, 73 removed, 136 unchanged (60% of the section changed)

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The acquisition of OmniMax furthers the Company's goal of helping innovate and reshape the markets in which it operates and provide better solutions for its customers and the channels it serves.

As of March 31, 2026, the Company's continuing operations operated in fifty-six facilities, comprised of fifty manufacturing facilities, strategically located across twenty-three states and Canada, and six offices, including a sourcing office located in China.

As of June 30, 2026, the Company's continuing operations operated in 54 facilities, comprised of 48 manufacturing facilities, strategically located across 23 states and Canada, and six offices, including a sourcing office located in China.

The Company's operational infrastructure provides the necessary scale to support local, regional, and national customers in each of the Company's markets.

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Impacts of Macroeconomic and Geopolitical Conditions on Our Business

The Company continues to monitor macroeconomic and geopolitical conditions that may adversely affect its business, results of operations, and liquidity.

These factors include global economic uncertainty, inflationary pressures, supply chain disruptions, changes in interest rates and foreign currency exchange rates, labor availability, international conflicts, and evolving trade and tariff policies.

Volatility in these conditions may impact demand for the Company’s products, input costs, logistics expenses, and the timing of customer orders, resulting in variability in operating results.

In addition, geopolitical instability in regions, including the Middle East, have and may continue to disrupt logistics networks, increase energy and transportation costs, affecting regional customers and suppliers.

The Company continues to monitor economic and macroeconomic and geopolitical conditions that may adversely affect its business, results of operations, and liquidity.

Economic and macroeconomic factors include changes in interest rates, changes to the residential new housing construction and repair markets in the United States, including consumer sentiment, increases in costs of fuel and raw materials, inflationary pressures, global economic uncertainty, change in foreign currency exchange rates, and evolving trade and tariff policies.

Ongoing volatility impacts demand for the Company’s products, input costs and logistics expenses, resulting in variability in operating results.

Geopolitical instability in regions, including the ongoing conflict in the Middle East, have and may continue to increase energy and transportation costs, resulting in increased raw material and production costs.

Changes in U.S.

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OmniMax will be reported as part of the Company's Residential segment.

Additional Recent Developments

As referred to above, on February 2, 2026, the Company completed the acquisition of OmniMax, a leading U.S.- and Canada-based manufacturer and provider of residential roofing accessories and rainwater management systems.

In connection with the acquisition of OmniMax, on February 2, 2026, the Company entered into a new credit agreement with Bank of America, N.A., as administrative agent and collateral agent, and other financial institutions from time to time party thereto.

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In connection with the entry into the Credit Agreement, on February 2, 2026, the Company terminated its existing credit agreement, dated as of December 8, 2022, and repaid all amounts outstanding thereunder.

On February 20, 2026, the Company sold certain assets within its Renewables business pertaining to its electrical balance of systems products.

The sale of these assets generated net proceeds of approximately $70 million in cash, subject to working capital and other customary post-closing adjustments, that were applied to debt reduction.

Refer to "Discontinued Operations" below for more information on the Renewables business which was classified as held for sale and reported as discontinued operations in the Company's consolidated financial statements.

Discontinued Operations

In June 2025, the Company committed to a plan to sell its Renewables business, which represents a strategic shift in operations.

The decision was driven by a change in the Company's strategy to focus its asset portfolio and resources on its Residential, Agtech and Infrastructure segments.

The Renewables business was classified as held for sale as of June 30, 2025, and met the criteria for discontinued operations.

During 2026, the Company completed the divestiture of its Renewables business through two separate asset sales.

On February 20, 2026, the Company sold certain assets related to its electrical balance of systems product for net cash proceeds of approximately $75 million, subject to working capital and other customary post-closing adjustments.

The proceeds were applied toward debt reduction.

On July 15, 2026, the Company sold the remaining Renewables business assets related to its racking and foundations operations for $5 million in cash, subject to customary post-closing adjustments, completing the divestiture of the Renewables business.

The Company's Renewables business was classified as held for sale and reported as discontinued operations in the Company's financial statements as of June 30, 2025, driven by a decision to change the Company's strategy to focus its asset portfolio and resources on its Residential, Agtech and Infrastructure segments.

Subsequent to classification as held for sale and as discontinued operations, the Company recognized a combined impairment loss and remeasurement adjustment in aggregate of approximately $243 million before income taxes.

Unless otherwise indicated, all results and information presented exclude discontinued operations disclosures.

As referred to above, on February 20, 2026, the Company sold certain assets within its Renewables business pertaining to its electrical balance-of-systems products.

The remaining portion of the Renewables business is classified as held for sale and as discontinued operations.

See Note 13 to the Company's consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on discontinued operations.

Results of Operations

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

The following table sets forth selected results of operations data and percentage of net sales for the three months ended March 31 (in thousands):

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

The following table sets forth selected results of operations data and percentage of net sales for the three months ended June 30 (in thousands):

Net sales $ 509,547 100.0 % $ 309,517 100.0 %

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Selling, general, and administrative expense 72,258 14.2 % 48,329 15.6 %

(Loss) income from operations (4,456) (1.3) % 28,655 11.6 %

Interest expense (income) 13,024 3.6 % (1,637) (0.7) %

Other (income) expense (814) (0.2) % 76 0.0 %

(Loss) income before taxes (16,666) (4.7) % 30,216 12.3 %

(Benefit of) provision for income taxes (4,614) (1.3) % 7,101 2.9 %

(Loss) income from continuing operations (12,052) (3.4) % 23,115 9.4 %

Income from operations 59,819 11.7 % 39,506 12.8 %

Interest expense 20,965 4.1 % 354 0.1 %

Other expense (income) 895 0.2 % (105) 0.0 %

Income before taxes 37,959 7.4 % 39,257 12.7 %

Provision for income taxes 10,626 2.0 % 9,819 3.2 %

Income from continuing operations 27,333 5.4 % 29,438 9.5 %

Loss from discontinued operations (19,143) (3.8) % (3,434) (1.1) %

Net (loss) income $ (67,470) (18.9) % $ 21,119 8.6 %

The following table sets forth the Company’s net sales by reportable segment for the three months ended March 31, (in thousands):

Net income $ 8,190 1.6 % $ 26,004 8.4 %

The following table sets forth the Company’s net sales by reportable segment for the three months ended June 30, (in thousands):

2026 2025 Total

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Consolidated $ 509,547 $ 309,517 $ 200,030 $ 184,518 $ 15,512

Consolidated net sales increased by $109.9 million, or 44.6%, to $356.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

The increase in revenue was driven by $119.1 million, which is a combined total of net sales generated from the Company's current year acquisition of OmniMax along with incremental sales generated from the Company's prior year acquisitions.

This increase was partially offset by softness in the building accessories end market, the timing of price/cost adjustments, business and product mix, and anticipated lower Agtech volumes resulting from project timing.

Consolidated backlog decreased 10% to $168 million, as compared to the end of the prior year quarter.

Net sales in the Company's Residential segment increased $101.4 million, or 56.3%, to $281.4 million for the three months ended March 31, 2026 compared to $180.0 million for the three months ended March 31, 2025.

The revenue of $107.3 million generated from the current year acquisition of OmniMax and the prior year acquisitions of the three metal roofing manufacturers, more than offset a 3% organic net sales decrease, which was a result of a soft end market along with timing of price/cost adjustments and business and product mix.

Net sales in the Company's Agtech segment increased 23.6%, or $10.6 million, to $55.6 million for the three months ended March 31, 2026 compared to $45.0 million for the three months ended March 31, 2025.

The revenue increase was largely due to $11.8 million of incremental sales generated from the prior year acquisition of Lane Supply, which more than offset the decrease in organic sales, which was due to timing of projects.

Backlog decreased 13% year over year in this segment.

Net sales in the Company's Infrastructure segment decreased $2.1 million, or 9.9%, to $19.2 million for the three months ended March 31, 2026 compared to $21.3 million for the three months ended March 31, 2025, impacted by production timing.

Backlog decreased 3% from the prior year, though demand and quoting activity remained strong.

The Company's consolidated gross margin decreased to 22.1% for the three months ended March 31, 2026 compared to 28.4% for the three months ended March 31, 2025.

The decrease was driven by business and product line mix, unfavorable alignment of price/material cost, and amortization of fair market value adjustments from business combinations, partially offset by overall continued operational efficiencies along with 80/20 initiatives.

Selling, general, and administrative ("SG&A") expense increased by $42.1 million, or 102.3% to $83.3 million for the three months ended March 31, 2026 compared to $41.2 million for the three months ended March 31, 2025.

The $42.1 million increase was primarily due to incremental SG&A expense incurred by recent acquisitions, along with higher acquisition-related expense as compared to the prior year quarter.

SG&A expense as a percentage of net sales increased to 23.4% for the three months ended March 31, 2026 compared to 16.8% for the three months ended March 31, 2025.

The following table sets forth the Company’s operating (loss) income and operating (loss) income as a percentage of net sales by reportable segment for the three months ended March 31, (in thousands):

Consolidated net sales increased by $200.0 million, or 64.6%, to $509.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

The increase was driven by sales generated from acquisitions of $184.5 million, primarily the result of the OmniMax acquisition in the prior quarter of 2026.

Organic growth of 5%, the result of price increases to align with rising commodity costs, also contributed to the increase in net sales.

Net sales in the Company's Residential segment increased $195.6 million, or 84.9%, to $425.9 million for the three months ended June 30, 2026 compared to $230.3 million for the three months ended June 30, 2025.

The higher net sales was driven by acquisitions of $184.5 million, primarily generated from the current year acquisition of OmniMax.

Organic net sales increased 5%, the result of timing of price/cost adjustments.

Net sales in the Company's Agtech segment increased 8.7%, or $4.7 million, to $58.8 million for the three months ended June 30, 2026 compared to $54.1 million for the three months ended June 30, 2025.

The net sales increase was due to growth in both the commercial and structures businesses.

Backlog decreased 34% year over year.

Net sales in the Company's Infrastructure segment decreased $0.3 million, or 1.2%, to $24.9 million for the three months ended June 30, 2026 compared to $25.2 million for the three months ended June 30, 2025, impacted by timing of projects.

Backlog increased 2% from the prior year, as demand and quoting activity remained strong.

The Company's consolidated gross margin decreased to 25.9% for the three months ended June 30, 2026 compared to 28.4% for the three months ended June 30, 2025.

The decrease was driven by business and product line mix, unfavorable alignment of price/material cost, and the impact of ongoing integration activities, partially offset by overall continued operational efficiencies along with 80/20 initiatives.

Selling, general, and administrative ("SG&A") expense increased by $23.9 million, or 49.5% to $72.3 million for the three months ended June 30, 2026 compared to $48.3 million for the three months ended June 30, 2025.

The $23.9 million increase was primarily due to incremental SG&A expense incurred in connection with recent acquisitions along with higher acquisition-related expense as compared to the prior year quarter.

SG&A expense as a percentage of net sales decreased to 14.2% for the three months ended June 30, 2026 compared to 15.6% for the three months ended June 30, 2025.

The following table sets forth the Company’s operating income and operating income as a percentage of net sales by reportable segment for the three months ended June 30, (in thousands):

2026 2025 Total

Operating (loss) income

Operating income

Residential $ 60,503 14.2 % $ 43,611 18.9 % $ 16,892

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Unallocated Corporate Expenses (12,438) (2.4) % (10,694) (3.5) % (1,744)

Consolidated operating (loss) income $ (4,456) (1.3) % $ 28,655 11.6 % $ (33,111)

Consolidated operating income $ 59,819 11.7 % $ 39,506 12.8 % $ 20,313

The Residential segment generated an operating margin of 14.2% in the current year quarter compared to 18.9% in the prior year quarter.

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The Agtech segment generated an operating margin of 10.0% in the current year quarter compared to (0.9)% in the prior year quarter.

Operating margin declined year over year due to lower organic volumes.

The Infrastructure segment generated an operating margin of 19.3% during the three months ended March 31, 2026 compared to 24.7% during the three months ended March 31, 2025.

The margin decline year over year was the result of business mix.

Unallocated corporate expenses increased $20.5 million to $31.7 million during the three months ended March 31, 2026 from $11.2 million during the three months ended March 31, 2025.

Operating margin increased year over year due to higher volumes, along with prior year costs related to the acquisition of Lane Supply in 2025.

The Infrastructure segment generated an operating margin of 23.5% during the three months ended June 30, 2026 compared to 28.1% during the three months ended June 30, 2025.

The margin decline year over year was the result of business mix and lower volume.

Unallocated corporate expenses increased $1.7 million to $12.4 million during the three months ended June 30, 2026 from $10.7 million during the three months ended June 30, 2025.

The increase was primarily the result of higher acquisition-related expense as compared to the prior year quarter.

The Company recorded interest expense of $13.0 million during the three months ended March 31, 2026 associated with the new issuance of debt to fund the acquisition of OmniMax.

The Company recorded interest income of $1.6 million for the three months ended March 31, 2025, the result of earnings on certain interest-bearing cash accounts.

The Company recorded other income of $0.8 million for the three months ended March 31, 2026, compared to other expense of $0.1 million for the three months ended March 31, 2025.

The Company recognized a benefit of income taxes of $4.6 million, with an effective tax rate of 27.7% for the three months ended March 31, 2026.

The effective tax rate for the three months ended March 31, 2026 was greater than the U.S.

Interest expense increased year over year with $21.0 million for the three months ended June 30, 2026 compared to $0.4 million for the three months ended June 30, 2025.

The increase in expense was primarily due to the new issuance of debt to fund the acquisition of OmniMax earlier in the year.

The Company recorded other expense of $0.9 million for the three months ended June 30, 2026, compared to other income of $0.1 million for the three months ended June 30, 2025.

The Company recognized a provision for income taxes of $10.6 million, with an effective tax rate of 28.0% for the three months ended June 30, 2026.

The effective tax rate for the three months ended June 30, 2026 was greater than the U.S.

federal statutory rate of 21% due to state taxes and nondeductible permanent differences partially offset by benefits related to tax credit generation or utilization.

The Company recognized a provision for income taxes of $7.1 million, with an effective tax rate of 23.5% for the three months ended March 31, 2025.

The effective tax rate for the three months ended March 31, 2025 was greater than the U.S.

The Company recognized a provision for income taxes of $9.8 million, with an effective tax rate of 25.0% for the three months ended June 30, 2025.

The effective tax rate for the three months ended June 30, 2025 was greater than the U.S.

federal statutory rate of 21% due to state taxes and nondeductible permanent differences partially offset by benefits related to tax credit generation or utilization and favorable discrete items due to an excess tax benefit on stock-based compensation.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

The following table sets forth selected results of operations data and percentage of net sales for the six months ended June 30 (in thousands):

Net sales $ 865,834 100.0 % $ 555,874 100.0 %

Cost of sales 654,886 75.6 % 398,186 71.6 %

Gross profit 210,948 24.4 % 157,688 28.4 %

Selling, general, and administrative expense 155,585 18.0 % 89,527 16.1 %

Income from operations 55,363 6.4 % 68,161 12.3 %

Interest expense (income) 33,989 3.9 % (1,283) (0.2) %

Other expense (income) 81 0.0 % (29) 0.0 %

Income before taxes 21,293 2.5 % 69,473 12.5 %

Provision for income taxes 6,012 0.7 % 16,920 3.0 %

Income from continuing operations 15,281 1.8 % 52,553 9.5 %

Loss from discontinued operations (74,561) (8.6) % (5,430) (1.0) %

Net (loss) income $ (59,280) (6.8) % $ 47,123 8.5 %

The following table sets forth the Company’s net sales by reportable segment for the six months ended June 30, (in thousands):

2026 2025 Total

Change Acquisitions Ongoing Operations

Residential $ 707,287 $ 410,252 $ 297,035 $ 291,846 $ 5,189

Agtech 114,462 99,132 15,330 11,775 3,555

Infrastructure 44,085 46,490 (2,405) — (2,405)

Consolidated $ 865,834 $ 555,874 $ 309,960 $ 303,621 $ 6,339

Consolidated net sales increased by $310.0 million, or 55.8%, to $865.8 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

The increase was driven by sales generated from acquisitions of $303.6 million, primarily the result of the Company's current year acquisition of OmniMax along with incremental sales generated from the Company's prior year acquisitions.

Organic growth of 1%, the result of price increases to align with rising commodity costs, also contributed to the increase in net sales.

Net sales in the Company's Residential segment increased $297.0 million, or 72.4%, to $707.3 million for the six months ended June 30, 2026 compared to $410.3 million for the six months ended June 30, 2025.

The higher net sales was driven by acquisitions of $291.8 million primarily generated from the current year acquisition of OmniMax, along with incremental sales generated by the prior year acquisitions of the three metal roofing manufacturers.

Organic net sales increased 1%, the result of timing of price/cost adjustments.

Net sales in the Company's Agtech segment increased 15.4%, or $15.3 million, to $114.5 million for the six months ended June 30, 2026 compared to $99.1 million for the six months ended June 30, 2025.

The revenue increase was largely due to $11.8 million of incremental sales generated from the prior year acquisition of Lane Supply, along with an increase in organic sales, due to timing of projects.

Backlog decreased 34% year over year in this segment.

Net sales in the Company's Infrastructure segment decreased $2.4 million, or 5.2%, to $44.1 million for the six months ended June 30, 2026 compared to $46.5 million for the six months ended June 30, 2025, impacted by timing of projects.

Backlog increased 2% from the prior year, as demand and quoting activity remained strong.

The Company's consolidated gross margin decreased to 24.4% for the six months ended June 30, 2026 compared to 28.4% for the six months ended June 30, 2025.

The decrease was driven by business and product line mix, unfavorable alignment of price/material cost, amortization of fair market value adjustments from business

combinations and the impact of ongoing integration activities, partially offset by overall continued operational efficiencies along with 80/20 initiatives.

Selling, general, and administrative ("SG&A") expense increased by $66.1 million, or 73.8% to $155.6 million for the six months ended June 30, 2026 compared to $89.5 million for the six months ended June 30, 2025.

The $66.1 million increase was primarily due to incremental SG&A expense incurred in connection with recent acquisitions, along with higher acquisition-related expense as compared to the prior year.

SG&A expense as a percentage of net sales increased to 18.0% for the six months ended June 30, 2026 compared to 16.1% for the six months ended June 30, 2025.

The following table sets forth the Company’s operating income and operating income as a percentage of net sales by reportable segment for the six months ended June 30, (in thousands):

2026 2025 Total

Operating income

Residential $ 80,749 11.4 % $ 74,871 18.3 % $ 5,878

Agtech 9,234 8.1 % 2,891 2.9 % 6,343

Infrastructure 9,564 21.7 % 12,341 26.5 % (2,777)

Unallocated Corporate Expenses (44,184) (5.1) % (21,942) (3.9) % (22,242)

Consolidated operating income $ 55,363 6.4 % $ 68,161 12.3 % $ (12,798)

The Residential segment generated an operating margin of 11.4% in the current year compared to 18.3% in the prior year.

Operating margin declined year over year, primarily as a result of price/cost alignment, early stage production inefficiencies and the timing of productivity and integration actions and acquisition charges, along with business and product mix during the current year.

The Agtech segment generated an operating margin of 8.1% in the current year compared to 2.9% in the prior year.

Operating margin increased year over year due to higher organic volumes, along with prior year costs related to the acquisition of Lane Supply.

The Infrastructure segment generated an operating margin of 21.7% during the six months ended June 30, 2026 compared to 26.5% during the six months ended June 30, 2025.

The margin decline year over year was the result of business mix and lower volume.

Unallocated corporate expenses increased $22.2 million to $44.2 million during the six months ended June 30, 2026 from $21.9 million during the six months ended June 30, 2025.

The increase was primarily the result of higher acquisition-related expense as compared to the prior year.

The Company recorded interest expense of $34.0 million during the six months ended June 30, 2026 associated with the new issuance of debt to fund the acquisition of OmniMax.

The Company recorded interest income of $1.3 million for the six months ended June 30, 2025, the result of earnings on certain interest-bearing cash accounts.

The Company recognized a provision for income taxes of $6.0 million, with an effective tax rate of 28.2% for the six months ended June 30, 2026.

The effective tax rate for the six months ended June 30, 2026 was greater than the U.S.

federal statutory rate of 21% due to state taxes and nondeductible permanent differences partially offset by benefits related to tax credit generation or utilization.

The Company recognized a provision for income taxes of $16.9 million, with an effective tax rate of 24.4% for the six months ended June 30, 2025.

The effective tax rate for the six months ended June 30, 2025 was greater than the U.S.

Liquidity and Capital Resources

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The Company expects that its primary cash requirements over the next twelve months will include working capital, capital expenditures, and debt service requirements.

The Company believes that cash flows from operations, together with available cash on hand and borrowing capacity under the Revolving Credit Facility—which had approximately $466.6 million of availability as of March 31, 2026—will be sufficient to meet these short-term liquidity requirements.

The Company believes that cash flows from operations, together with available cash on hand and borrowing capacity under the Revolving Credit Facility—which had approximately $470.3 million of availability as of June 30, 2026—will be sufficient to meet these short-term liquidity requirements.

The Company currently expects to continue generating positive operating cash flows during this period and does not anticipate needing to materially increase borrowings to fund its short-term obligations.

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The Company expects to meet these long-term obligations through a combination of cash flows generated from operations and continued access to its Revolving Credit Facility.

The Company may also evaluate additional financing alternatives, as appropriate, as appropriate, to support its long-term growth initiatives or refinance upcoming maturities.

The Company may also evaluate additional financing alternatives, as appropriate, to support its long-term growth initiatives or refinance upcoming maturities.

Based on current projections and market conditions, the Company believes that its existing sources of liquidity will be adequate to satisfy its long-term cash requirements.

Historically the Company's international operations have generated cash flow from operations sufficient to fund their working capital needs and capital improvements.

As of March 31, 2026 and December 31, 2025, the Company's international subsidiaries held $5.4 million and $4.4 million of cash, respectively.

As of June 30, 2026 and December 31, 2025, the Company's international subsidiaries held $5.1 million and $4.4 million of cash, respectively.

As disclosed below and in Note 7 to the Company's consolidated financial statements in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q, the Company incurred significant indebtedness in connection with the acquisition of OmniMax.

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In April 2025, the Company's Board of Directors authorized a share repurchase program of up to $200 million of the Company's issued and outstanding common stock.

As of March 31, 2026, the Company has not purchased any shares under this authorized program.

As of June 30, 2026, the Company has not purchased any shares under this authorized program.

The program has a duration of three years and is scheduled to expire on April 30, 2028.

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The repurchase program may be suspended or discontinued at any time at the Company's discretion.

The following table sets forth selected cash flow data for the three months ended March 31, (in thousands):

Net cash (used in) provided by:

The following table sets forth selected cash flow data for the six months ended June 30, (in thousands):

Net cash provided by (used in):

Operating activities of continuing operations $ 9,995 $ 48,630

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Operating Activities

Net cash used in operating activities of continuing operations for the three months ended March 31, 2026 of $34.5 million consisted of loss from continuing operations of $12.0 million, non-cash net charges totaling $20.2 million, which include depreciation, amortization, stock-based compensation and other non-cash charges, and $42.7 million of cash invested in working capital and other net operating assets.

Net cash provided by operating activities of continuing operations for the six months ended June 30, 2026 of $10.0 million consisted of income from continuing operations of $15.3 million, non-cash net charges totaling $45.8 million, which include depreciation, amortization, stock-based compensation and other non-cash charges, and $51.1 million of cash invested in working capital and other net operating assets.

The cash invested in working capital and other net operating assets was primarily the result of increases in accounts receivable and inventory, partially offset by increases in accounts payable, largely the result of seasonal demand, as well as settlement of assumed liabilities related to success-based costs incurred by OmniMax as a result of the sale.

Net cash provided by operating activities of continuing operations for the three months ended March 31, 2026 of $5.1 million consisted of income from continuing operations of $23.1 million, non-cash net charges totaling $9.5 million, which include depreciation, amortization, stock-based compensation and other non-cash charges, and $27.5

million of cash invested in working capital and other net operating assets.

The cash invested in working capital and other net operating assets was primarily the result of increases in accounts receivable largely the result of seasonal demand.

Net cash provided by operating activities of continuing operations for the six months ended June 30, 2025 of $48.6 million consisted of income from continuing operations of $52.6 million, non-cash net charges totaling $22.7 million, which include depreciation, amortization, stock-based compensation and other non-cash charges, and $26.7 million

of cash invested in working capital and other net operating assets.

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2026 of $1,346.0 million primarily reflected the acquisition of OmniMax for $1,337.9 million and a $2.1 million acquisition-payable payment related to one of the metal roofing businesses acquired in 2025, as well as net capital expenditures of $6.0 million.

Net cash used in investing activities for the three months ended March 31, 2025 of $195.0 million was primarily due to the acquisitions of Lane Supply and the two metal roofing related businesses totaling $184.6 million.

To a lesser extent, net capital expenditures of $10.7 million, partially offset by receipt of a $0.3 million final working capital settlement resulting from the sale of the Company's electronic locker business within the Company's Residential segment in the fourth quarter of 2024, also contributed to the net investment of cash.

Net cash used in investing activities of continuing operations for the six months ended June 30, 2026 of $1,350.9 million primarily reflected the acquisition of OmniMax for $1,337.6 million and a $2.1 million acquisition-payable payment related to one of the metal roofing businesses acquired in 2025, as well as net capital expenditures of $11.2 million.

Net cash used in investing activities of continuing operations for the six months ended June 30, 2025 was $221.6 million, primarily due to the acquisitions of Lane Supply and the two metal roofing related businesses of $192.9 million, and net capital expenditures of $29.0 million largely related to the purchases of two facilities.

These investments were partially offset by a receipt of the $0.3 million final working capital settlement received in connection with the sale of the Company's electronic locker business within the Company's Residential segment in the fourth quarter of 2024.

Financing Activities

Net cash provided by financing activities totaled $1,216.9 million for the three months ended March 31, 2026 primarily reflected $1,325.0 million of proceeds from long-term debt, which were used to fund the acquisition of OmniMax, refinance certain existing indebtedness, and pay related fees and expenses.

These inflows were partially offset by $75.0 million of long-term debt repayments, $29.3 million of debt issuance cost payments, $3.4 million was used to repurchase common stock related to the net settlement of tax obligations for participants in the Company's equity incentive plans, and $0.5 million excise tax payment related to the repurchase of common stock in 2025 under the Company's authorized share repurchase program.

Net cash used in financing activities for the three months ended March 31, 2025 of $62.4 million consisted of common stock repurchases.

The Company paid $60.0 million during the three months ended March 31, 2025 for the repurchase of 914,679 shares under the Company's authorized share repurchase program.

Net cash provided by financing activities totaled $1,212.8 million for the six months ended June 30, 2026 primarily reflected $1,321.0 million of proceeds from long-term debt, which were used to fund the acquisition of OmniMax, refinance certain existing indebtedness, and pay related fees and expenses.

These inflows were partially offset by $75.0 million of long-term debt repayments, $29.3 million of debt issuance cost payments, $3.4 million was used to repurchase common stock related to the net settlement of tax obligations for participants in the Company's equity incentive plans, and a $0.5 million excise tax payment related to the repurchase of common stock in 2025 under the Company's authorized share repurchase program.

Net cash used in financing activities for the six months ended June 30, 2025 of $62.5 million consisted of common stock repurchases.

The Company paid $60.0 million during the six months ended June 30, 2025 related to the repurchase of 914,679 shares under the Company's authorized share repurchase program.

The remainder of the repurchased common stock of $2.5 million related to the net settlement of tax obligations for participants in the Company's equity incentive plans.

Critical Accounting Estimates

There have been no material changes to the Company's critical accounting estimates during the quarter ended March 31, 2026 from those disclosed in the consolidated financial statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no material changes to the Company's critical accounting estimates during the quarter ended June 30, 2026 from those disclosed in the consolidated financial statements and accompanying notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Recent Accounting Pronouncements

1 unchanged sentence

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What changed 10-Q

Item 2. Management’s Discussion and Analysis