Thank you, and welcome everyone to Builders FirstSource Investor Day. We're happy you're here today. I'm Heather Kos, as the voice of God said. I'm the Senior Vice President, Investor Relations. For those of you that are joining us live, thank you so much for making the journey. I hope you had a chance to see our digital demonstrations. If not, please go at break. They're quite outstanding. For those of you that are joining us virtually, the slides are located on the website, as well as we'll have a feature to ask questions. A couple of housekeeping items before we get started. As a company serious about safety, we ask that you please familiarize yourself with the exits. There are two exits located directly behind you, which then could take you down the hallway outside. Also, please, I'd like to direct you to our forward-looking statement, as well as our use of non-GAAP measures. And lastly, there are no personal recordings allowed today, and please put your phones on silent. We've got an exciting agenda for you today. Dave Rush, our President and CEO, will talk about how we're a differentiated, established market leader and walk you through our strategy. Next, Steve Herron will talk how we drive Operational Excellence at BFS. Tim Johnson and Amy Messersmith will review how we deliver sustainability while building on our high-performance culture. Then we'll go into our first Q&A session. After our first Q&A session, we'll take a short break, and then after break, Mike Farmer will talk to us about Commercial Excellence and how we elevate that at BFS. Tim Page then will come on stage and talk through how we're accelerating our industry-leading digital offerings. Then, a topic near and dear to my heart, Financial Excellence. Peter Jackson will come up and talk about how we compound shareholder value and lay out our targets from 2024 to 2026. Dave Rush will come up with some closing comments, and then we'll go into our second Q&A session. At 11:30 A.M., we're going to depart for our Villa Rica automated truss facility. It's truly outstanding. If you cannot make the tour, please let the help desk outside know because we have you on a list; we want to make sure we keep track of you. With that, it's my pleasure to introduce Dave Rush, our President and CEO, to the stage. Thank you, Heather. Good morning, everyone. Thanks for coming today. I'm Dave Rush, CEO and President of Builders FirstSource. I've been with the company 24 years in various roles in financial and operational, primarily operational the last 20. I led the integration of BFS and ProBuild. I led the integration of BFS and BMC, and, you know, through this process, I've been really excited to have this opportunity. Before we get started, though, I think I need to check, how many people in here are Florida State fans? Oh, my God. Yeah. I'm not so sure I need you in here. I'm not so sure that negative energy is good for the presentation today. On second thought, no, stay. Stay, because I'd like you to see how hard work and planning and execution actually results in a tangible benefit. So, thanks for that. In all seriousness, you know, one thing we're very proud of that we recently were informed of last week is, BFS is recently named to the S&P 500, and we're excited for that, and I'm really proud of the team for that. So, thank you. So let's get started. So the key messages today are gonna be very clear. It's gonna be how Builders FirstSource takes our customers' pain points and turn them into opportunity, starting with our industry lead in value-add solutions. Those solutions address builder pain points around labor, as those products come to the job site ready to install. We have the most experienced team in the industry. You'll hear later from Amy Messersmith. Our average tenure with our SVP and above field leadership is 30 years, 30 years in the industry. We are excited, and a lot of you got to see it last night, about our proprietary digital solutions. We believe that's gonna be a game changer for the industry, and we're excited to be on the leading front of that. You know, the thing that I know is near and dear to all of your hearts, it is mine, is the robust free cash flow this business generates. And we're gonna show you how we plan to take that free cash flow and deploy it effectively to maximize shareholder value. So let's take a snapshot look at BFS. We're in 570 locations in 89 of the top 100 MSAs across 43 states. I want to direct your attention to the right-hand side of the screen here. You see in red, those are the number of truss plants and where they're located in the United States for BFS. Our closest competitor, we're 3-4 times larger than they are in number of locations. So that's pretty impressive. When you layer on top of that... Takes a little while to jump up.... Okay, there's our millwork facilities, and you can see they overlay the truss facilities pretty well in the major markets. Again, if you look in combination, that is a capture of our value-add capabilities. Pretty impressive. Finally, when you layer on the-- Ah, sorry about that. When you layer on the yards that are in contiguous markets with all of those manufacturing, you can see how we can put a full package together pretty well. Going to the left-hand side of the screen, I want to point out our value-added mix is now over half of our sales. That was a target that we set for ourselves at last Investor Day, and we're excited that we've gotten to that milestone. We've also, through M&A, diversified our end segment market. You can see now we're at 13% for multifamily, and at Investor Day, in 2021, that number was 6%. So with all of that, we're really excited about where we are, but what I want to share with you today is that we're just getting started. Before we kinda look to the future, I think it's always nice to kind of see how we built the platform that we have today. Starting in 1998, the Builders FirstSource was a roll-up of very successful independent dealers in a venture that was funded by JLL Partners. We don't have it, but if you put a little asterisk right beside the 1998 for 1999, that's when I came into the organization. So I'm not sure how that didn't make the milestones, but that's okay. 2005, we did an IPO. We suffered through the housing recession in 2008 through 2011, but successfully navigated that difficult situation. Exceeded $1 billion in 2012 for the first time. Then the transformation really started. In July of 2015, BFS, number 3 in the market, acquired ProBuild, number 1 in the market. Shortly thereafter, in a separate transaction, BMC and Stock merged. That's significant because now number 2 joined with number 4, okay? So if you look at it, now we have number 1 and number 2. Well, January of 2021, we decided that it was a good idea if we combined, and we did so, and we created the number 1 platform that we shared, that we, we're so proud of today. We ended up in August of 2021, starting on our digital solution journey with the acquisition of Paradigm, which was the foundational software that we needed to start that journey. Very excited about that. Tim Page will share with you the progress we've made since that day, but we're very excited. We haven't finished. We didn't say, "Okay, we're done." We've done 14 tuck-in acquisitions since last Investor Day. Those are primarily to fill out our footprint or to add value add where we see the need to complement our existing structure. So our mission is simple: we want to be the best building supplier in the industry by being the easiest to do business with, and also solving our customers' pain points. We do that starting with our value system, and we explain that value system through the acronym SPICE: Safety, People, Integrity, Customers, and Excellence. Safety is always the number one priority at BFS. You know, we want to make sure our people go home the same way that they arrived at work. We lead with a people-first culture. Everything starts with our people. We feel like we have the best people, and we want to make sure we attract and retain those best people going forward. We do everything with integrity. Everybody understands how important that is to our value system, and we operate with integrity throughout. Of course, customers are what we're there for. We try to deliver exceptional customer service. That's the focus of every job, whether corporate or field, is that it's all about how we can be better for our customers, and we're always chasing excellence. We never feel like we've arrived. We look at excellence, and we try to decide, how can we get better? We, we like where we are, but what's the next step? And it's simple. At the end of the day, we want home ownership to be available to everyone, and if we do that, we believe we can compound the shareholder value for all of our stakeholders. So let's take a look at where we have come since last Investor Day. As we committed on the last Investor Day, our primary goal was to grow core organic sales, and we've done that. We've successfully grown core organic sales by focusing on value-added solutions, which address the labor challenges in the market for our customer, and they're more than happy to pay a little more to address that labor challenge, so it's stickier margin and stickier business. To do so, we've grown value add both through M&A and through $130 million of direct investment in the automation of our plants to increase our capacity and throughput. We then went after the start of our digital journey through the acquisition of Paradigm, and we've accelerated that transformation with all the investments we made in development since that day, and I'm glad for you to see how far we've come. We are the absolute leader in value-added solutions... That's always gonna be a foundational point that we build from going forward. We have a fortress balance sheet. We have plenty of access to capital for any growth initiative or any M&A initiative that we feel like can better our platform. Steve Herron, our COO, is gonna step up here in a minute and show you how our culture of Operational Excellence, which really was derived through all of the integration work we did with the major transformative acquisitions, has built a culture now where we're constantly looking to get better. Mike Farmer, our commercial president, is gonna show you how those same integrations work to develop a commercial platform that's fully integrated, not working against each other, but with each other, all aligned, all pulling in the same direction, and how that has provided benefit for BFS. All of these point to the formula for how we believe we're gonna compound shareholder value now and into the future, and how we're gonna sustain the double-digit EBITDA margins that we've held since the merger of BMC. So, as I said, this is a breakdown of our end segment as it sits today, and what I wanted to point out to you is where 67% of our revenue comes from single family, we only make up 8%-11% of the addressable spend. There's plenty of room for us to grow in the single family segment. Multifamily is 13% of our revenue, but only 2% of the addressable spend. And then R&R, of course, is also 13% of our total revenue, but it's 1% of the addressable market. So our focus is clear: we wanna, we wanna find ways to grow our wallet share and new customers in each of these segments by expanding our product offerings and being the easiest to do business with. It's important to note, within single family, the product group that's growing the fastest is value add. Value add is growing more than the market as a whole in single family, which plays directly into our strategy. So with our constant focus on how we can be easiest to do business with, with our customers, and as we introduce new innovations with digital tools and better ways to deliver trust, we believe we're gonna get gains of share from wallet and new customers. We're confident that our digital solutions are gonna help lead to $1 billion of incremental revenue by 2026. So let's take a little bit of a look at the macro. Starting in the bottom left-hand side, we can see what mortgage rates have done in the recent past. But look at the top left-hand side. That shows housing starts versus housing demand, right? The light blue shows the amount of underbuilt we are in the housing industry as of today. If you look on the right-hand side of that page, you can see the houses that have been delivered versus the houses, the population and the population growth. One thing I'd point out, only 10.4% of 25-34 age group are currently homeowners today. That seems like a pretty ripe population for us to target for houses in the future. That, along with the fact that 60+% of existing homes today have a mortgage under 4%. So we're in a position where currently, demand is piercing through the high mortgage rates because there's nowhere else for them to go. In the future, if we can just see a little bit of help with the interest rates, and we continue to do the things we're doing to bring the cost of the house down through lower cycle times and more efficient building, we could really see, in the near term, there's a strong case to see that we could see a nice uptick in housing. So what makes BFS special? What creates our leadership position? Well, you've heard me say it, but it can't be overstated: we have the best people in the industry. I think everyone in my role would say that about their people, but not everyone can point to the fact that we've gone through four successful integrations, taking the best of the best each step of the way. As a result, I don't think there's any question that the people we're going forward with today are the best in the industry. Amy Messersmith is gonna talk to you a little bit about some of the statistics around the experience of our group and why I believe them to be the best, and I think you'll understand. We have 30+ years of experience in our SVP and above role in the field, and our average tenure for a GM is over 17 years. That's an incredible stat to be able to rely on as you're trying to navigate any kind of a situation in the industry. We have the best scale in the industry. In those 89 markets, top of the top 100 MSAs, we're number one or number two in the majority of those markets. We're the unquestioned leader in value-added product solutions. Like I said, we're 3-4 times larger than the next closest. We have, since the BMC acquisition, proven that our value-added product selection, our ability to integrate businesses successfully and create Operational Excellence opportunities, we have held a sustained double-digit EBITDA margin. I was joking with somebody else last night at the cocktail party, not joking, but remembering, back in the day when we were happy with 6%-8%, and that's the difference. That's the difference between BFS today and BFS back in the early 2000s or 2015. Double-digit sustained margins is the difference, and we feel very confident about our ability to hold that going forward. I'm glad to share with you the digital tools through Tim Page and the demos. We really believe that that's the next level of differentiation for our company. We're the only ones in the space. We're the only ones with an end-to-end platform. We've gotten a two-year head start on anybody, even if they started today, which we know is not gonna happen, and we believe that that's going to establish us as the clear leader in that space. If you take all of this in totality, to me, it equals compounded shareholder value growth, and that's what I'm excited to share with you today. So our BFS One Team operating system shows all of this on one page. We want to focus on the key areas that actually build the foundation for growth. For us, that's building people and building excellence. Our scale then takes these opportunities and leverages it across the platform. Again, even since the integration, since the synergies we got through the combinations, we have averaged $100 million of annual efficiency gains since the integrations. We share best practices, and we invest in automation. That's the key. Best practices across our platform is how you take scale to the next level. You know, an example: we, with our vendors, we accumulate our information. We have it all in the same database, so we know how much we spend in a given product. We can commit that volume on a committed time schedule. They can line that up with their manufacturing process. They get efficient based on the stability of the demand, and we get benefit of better costs. So that's how scale plays off in one area. The other is just sharing best practice solutions across the platform, and taking an idea that you could leverage one time and leveraging it 500 times. So we're fully committed on being the best operator, and that, we believe, is going to be the foundation for building growth and superior value for the customers and shareholders. Let's get a little more specific and talk about our strategy. We generally define our strategy in four pillars. First, we want to grow with our customers organically, primarily through our value-add solutions. We want to invest in innovation and drive Operational Excellence and make that part of our culture. We still want to build and do it with the highest people. We want the best people in the industry. We want to recruit them, we want to retain them, and we want to incentivize them to be performing at their best. Finally, we're gonna generate robust free cash flow. We're gonna follow a disciplined capital allocation strategy, which we believe deploys that capital in the most effective way to generate long-term shareholder value. We're gonna unpack these one at a time. So starting with value-added products and services. So value-added products and services is more than trust, right? We want to offer all kinds of innovative solutions for labor challenges. We kinda explain that at the bottom of the page through what we call the value-added product continuum. It starts with off-site fabrication. For us, that's truss panel. It could be Ready-Frame, it could be doors, and delivery to the job site. So that's one level of value add. We bring the product ready to install versus them having to construct the product on the job site. The second level is kind of the combination of install and turnkey. In some cases, we may actually bring that to the job site and install the product and give them a final, final product that's already installed, and they take the labor equation all the way out. Those are generally for millwork solutions, installed trim, installed doors. We do install framing. We do some level of that in about two-thirds of our markets, even though it's not all of that in all those markets, so there's still a lot of room to leverage that capability. In some markets, primarily in Florida, we have a market where we actually delivered a dried-in house, and that's called the shell, so that's even one step farther. We pour the concrete in that situation. We stand up the house, we dry it in, deliver it to the customer. You know, what we're looking to in the future is how far do you go with the off-site fabrication, and maybe there's even opportunities to partner with customers and look at how we could possibly use modular to benefit them and us. That's in the future. What we do today, in some level, is off-site fabrication through shell, depending on the market opportunity and the profitability opportunity that is provided in those markets. So we always also have a continuing eye to the future on what's the next best thing. You're gonna see that today as you go into Villa Rica, where we see all the automation that we've done to upgrade that plant all the way through to even robotics. So robotics for us is still a little bit in the R&D mode, but it is still something we have a great interest in and believe, done the right way, we can scale across the platform, but it's still in R&D. The other automation that you're gonna see at the plant is cutting-edge, that we have in some capacity in most of our plants. So most of our plants have some level of automation, and that distinguishes us from our competitors. Other things that we're looking at would be around product, new technology. They're still in R&D mode as well, and we're partnering with customers to evaluate those. And we're gonna dedicate resources that we have now that look at those products, and in the future, we're gonna continue to add to that, so that we're always out there, so we can be aware of any of the next newest thing coming down the pipe. We want to be the leader for innovation, and we're gonna invest to make sure that happens. So you've heard me say it: we learned from this, the integration work that was done, how we can always look to be better. Steve's gonna discuss it in a little more detail, but I wanted to hit some of the highlights. This is field-led for us. We ask our field leaders to come back to us and say where they do something right or where they see opportunity, and then we try to find ways to scale that across the platform. It's led by our field, subject matter experts from our field. And they contribute, and to date, we've achieved approximately $275 million of cumulative productivity savings since the merger. Operational Excellence has to be, and is for BFS, ingrained in our culture. We want people to continually look for how we can do things better. We don't want it to be from corporate saying it's better, who've never done it in their life. We want it from the field saying it's better because they do it every day, and they see the results of their doing it the right way. We think it'll provide a strong foundation for us to always look for ways to be the most effective cost- have the most effective costs in the industry. You know, it all does start, though, with the integration. We always believe in every acquisition, integrating them into the business, so we all act as one going forward, not just a collection of individual businesses that continue to operate independently. So integration is always a key part of our strategy around any M&A that we do. You've heard me say it, and, it's still very important to me how much focus we put on building our people. Amy will go into it in more detail, but I wanted to share a couple of the highlights. One being, we've invested in professional development and leadership training classes for 20,000 classes since Investor Day 2021. I'm very proud at BFS that we also cultivate a respectful and an inclusive work environment. We focus on a wide net, trying to expand the net for potential candidates as far as possible, even as we still hire and promote based on merit. But we have, as a result, really exceptional relationships with our veterans and our HBCUs and vocational and training programs. Our core beliefs around providing opportunity based on merit, regardless of gender, regardless of ethnic background, has always been part of our culture, and I'm proud of that. We also have a focus on beyond just how we take our people and how we treat our people with it, as it relates to our ESG journey. Tim Johnson, our SVP of Legal, Safety, and ESG, is gonna share more details about our ESG journey. But what I can tell you from my perspective is ESG is more than just checking a box for BFS. We look at ESG the same way we look at any opportunity. We want to try to find a profitable way to solve a solution for our customers around ESG and ourselves and do it in a way that makes good business sense. Tim will talk about that in more detail. But we want to offer greener solutions for our customers because it not only is a greener solution for them and helps them with their ESG journey, but it also shortens their cycle time. It also is a way for them to build their houses more efficiently. So we believe there's a happy medium there where you can do both, and that's the way we approach ESG. Safety in our organization is our number one priority, and I'm happy to say, ever since the BMC merger, we have improved on our RIR score safety metric every year since the merger, including in 2023, we've had another 30% improvement in our accident rate from 2022. We have done our inaugural work on Scope 1 and Scope 2 greenhouse gas emissions, and Tim will get into more detail about that as well. The final thing I'd like to say is we are a company that gives back. Very, very happy to be a part of an institution that will have contributed over $4 million in charitable contributions in 2023. This is probably one of my favorite slides. This is the team that I have the pleasure of working with every single day. You know, about this time last year, when, when we found out Dave was leaving for, I guess, greener pastures, you know, people might have thought, "Well, now what?" Right? I had no concern whatsoever. It's not because it's me replacing Dave.... It's because it's we replacing Dave, right? I knew the strength and depth of talent in this group, and they have not let me down. I think it's safe to say, from your perspective, you would have to agree with that. One thing I like to point out is this group, again, is the result of taking the best of the best every step of the way as we've done these integrations. We have seven people that are legacy BFS, four people that are legacy BMC. If you go down to the next level of SVP, similar relationship. Out of those 9 individuals, it's, I think, 5 and 4 as well. So we've got the right mix of talent, we've got the best talent, and I think, again, the fact that we have average tenure of SVP and above over 30 years is a very good reason for me to be comfortable, and I am. Similar, you could look at our board of directors. We have a very engaged, well-rounded, diverse skill set board of directors. Our chairman, Paul Levy, has been here since day one. In 1998, that first acquisition, he's been the chairman since that day and remains the chairman today. That level of consistent leadership is very valuable to a new CEO, I gotta tell you. Our relevant experience is incredible. We have a CFO that was a builder CFO. We get that perspective. We have CEO, CFO roles throughout, and financial roles, and the operational and financial acumen of this group is off the charts. These are not, in my mind, only advisors. They actually create a competitive advantage for us. They know. We don't have to explain to them what we wanna do; they know what we wanna do. They give insight, helpful insight to what that, the best way to go about that is, and they're doing a fantastic job for our shareholders. Our fourth pillar is around disciplined capital allocation. From 2022 through 2023, we have deployed $6.1 billion in capital. Peter Jackson is going to go into more detail around what the future projections look like, but our priorities remain the same. We wanna make sure we carry a base leverage ratio of less than 2x, so somewhere between 1x and 2x. We wanna invest first in organic growth. Second, we wanna look for, or concurrently with the organic growth, we wanna look at tuck-in M&A opportunities that, that will advance our strategy. And lastly, we'll look to return capital to shareholders. But at the end of the day, this is a robust, cash flow generating company, and we're gonna put that money to work in the best way to maximize shareholder value. So our digital platform. Tim's gonna go in a lot more detail. You'll even hear from a couple of customers that I think you're gonna enjoy, where we are and, and where we, where we plan to go. We're the clear leader in this strategy. We have the only end-to-end platform that starts with a plan and ends with an order. I think that as we continue to provide digital solutions to our customers to solve their pain points and make building more efficient and maintain and enhance our already strong EBITDA margins. I wanna point out, look at the progress to date in EBITDA expansion of 115 basis points annually versus our original target of 50. So that's more of the factor of why, going forward, the 30 basis points number is what it is, is because we've already done a great job to date of getting to where we wanna be long term. And then, of course, with the free cash flow generation, we expect to be able to deploy between $5.5 billion and $8.5 billion of capital between 2024 and 2026. With that, I really appreciate you being here. I appreciate you laughing at my Florida State joke. At this time, I wanna welcome to the stage Steve Herron, our COO. Thank you, Dave. Good morning, and welcome. I'm Steve Herron, the Chief Operating Officer of Builders FirstSource. I'm thrilled to have the opportunity today to speak to you about driving Operational Excellence and building our people. A little about me, I've been in the LBM industry for over 40 years, and I'm extremely excited about the next 40. I'm serious.... All right, look closely at this slide. In my early years, nearly every process was manual. Today, you'll learn more about investments in automation and technology. And as you heard from Dave earlier, he's, we're very focused on safety, and I'm a little disappointed to report on this day, Dave got written up for not wearing his safety belt. And just for your information, also, I still have that fur coat. All kidding aside, I want to talk about our 3, foundational messages here: building our people, building excellence, and building growth, with an emphasis on organic growth on initiatives and select discipline tuck-in acquisitions. Building people first. Have you heard about safety? Building people focuses on employees, which are our most valuable asset, and keeping them safe is paramount. Our safety culture is extremely important to us, and we're very proud of our progress over the last 3 years. Our field leaders are linked to a safety incentive and are tied to our safety results. Our continuous improvement with our industry-leading RIR, which is down 30% year-over-year, and 55% of our locations are 365 days incident-free. Our divisional presidents are extremely involved in our safety culture, and they should be commended for our progress over the last three years, as they're very linked, day in and day out. This is a good segue to discuss training. Our consistent onboarding process is very important to us, and training includes safety in other areas and is another key initiative to onboarding new employees. We have also implemented a leadership development program and have identified over 100 high-potential leaders. We recently have launched manager development programs, and we've invested in the future, our future leaders, by increasing their business acumen in all areas of our business. Next, we have launched manager and training programs, which is new for our employees to ensure early exposure to the fundamentals of our industry. We're also tracking team member engagement on an annual basis with a goal to improve by 5% each year. It is critical that we receive consistent feedback on the company, and the engagement survey has become a valuable tool from our management team. You will hear more about this from Amy in our next presentations. Next is building excellence. It's our commitment to operational management and improvement. The quality of our products that we produce and serve are second to none. Our service levels, on time and in full, continue to improve today, and we are at 90% in on-time delivery, and our in full performance is now at 96%, which is 200 basis points improvement year-over-year. Controlling our costs can be a challenge, and with our investments in technology and automation, we are able to drive continued improvement. Our lean principles continue to assist us in driving greater disciplines, and the Belt certification for our employees has been very helpful. We have fully integrated a sales team that is best-in-class, and our incentives are aligned with our growth strategy. We continue to leverage best practices across all lines of business and are structured with this approach to provide solutions for our customers. With our current labor shortages, we have a significant opportunity to grow our installation services, which you heard earlier from Dave, and I will touch on that a little bit later. Next, we recently performed, and this is an ongoing process, a case study on our Atlanta market, optimizing our footprint to lower costs and leverage scale. We had 12 lumber distribution yards in the market, and we recently consolidated 3 of those. We've consolidated 2 component plants, and we're investing now in a state-of-the-art millwork plant that's currently in process today while closing a smaller site, and this has all been done while retaining growth capacity. Our new millwork facility is on rail, and we were able to consolidate our commodity lumber reload from a third-party vendor to internal control. The savings from these actions have resulted in a $2.5-$3 million overhead savings, a 15% increase in truss direct labor efficiencies, and a 15% reduction in working capital days. In the next 2 slides, I will touch on savings created from the supply chain on our productivity efforts. Our supply chain optimization efforts. We are optimizing our supply chain, as I mentioned in an earlier slide, and this managing our cost is a daily focus for our operators and our supply chain team. Our example of our focus in this area is the realization of over $15 million in landed cost improvements for our spend for our molding category in 2023. We have realized substantial savings by shifting a higher percentage of our molding spend to import from domestic distribution. We have reduced inbound shipping costs by $4 million this year through in-house freight management capabilities and employing transaction management software. In category management process, we are maximizing spend with the right supply partners by standardizing and consolidating our SKUs for greater efficiencies. We are proud of our industry-best millwork lead times. It's especially been evident in our Dallas market, as we have partnered with a leading door supplier to establish an exclusive just-in-time program, dropping our lead times to 3 days on a high-velocity SKUs versus standard industry lead times of 10-15 days. We are managing risk by aligning our costs to revenue and driving consistently higher margins with our pricing disciplines. We are protecting, managing our costs during projects that take extending periods to complete.... such as multifamily projects that can extend up to 18 months. We are doing this with a combination of three different ways: taking a position on material, which is bulk buying, fixed-price contracts, and also buying lumber future contracts. Next slide is delivering productivity through targeted initiatives. Let's—as we have accomplished, you heard from Dave earlier, since our Investor Day in 2021, the dedication and hard work of our many associates, we have realized cumulative productivity savings of $275 million, exceeding our goal of $100 million. This is a tribute to the entire team. It's, everybody's pulling the same effort in the same direction, and the effort here from everybody is, is unbelievable to get these goals accomplished. Our leveraging our scale and size on procurement opportunities and maintaining a disciplined focus on improving SG&A is paramount to us. In our truss plants, we have improved our board foot per man-hour labor by 45%. Additionally, our millwork production facilities have improved our doors per hour by 5% and increased our overall millwork capacity by 25% with the installation of 7 new state-of-the-art, high-speed pre-hung door production lines. Our near-term initiatives continue to improve the efficiencies in fleet, order entry, and inventory shrink. The playbook we have created is scalable, and we will continue to deliver strong annual productivity by controlling our annual spend. Building growth, the third and final pillar. We are continuing to develop and deliver an end-to-end solution through our digital platform to transform home building. These additional tools provide our market leadership another advantage to drive revenue growth. These investments in our value-added solutions will continue to solve builder pain points by providing labor availability and reduced cycle times. We are laser-focused on customer-centric innovation by partnering with our largest customers to create and deliver labor solutions through automation, digital, and component robotics. Lastly, on our M&A opportunities, we are taking an extremely disciplined approach with our targets. Our goal is to focus on the fragmented markets to increase our relative market position. These solutions allow us to continue to build profitable growth through organic and inorganic opportunities. Let me share with you our final two value-added opportunities that are key to our strategic growth. This slide is a great example of our commitment to growing our industry-leading value-added footprint. As you can see, we've invested over $130 million in our component facilities since 2020, and are currently nearly 4x the size of our nearest competitor. This includes having a total of 160 component facilities, which incorporates our wall panel facilities as well. We have added 30 new facilities through M&A and greenfield since 2021. In our millwork operations, we currently have 120 door facilities and have added 25 new door facilities since 2021. That's a total of 55 new manufacturing and assembly facilities in just two years, and it really shows the commitment to our value-added footprint. We are fully integrated in all our truss operations and can serve residential as well as multifamily projects, and quality and service is our top priority. In 2024, we will continue to optimize our millwork and truss facilities with the newer state-of-the-art equipment, as you can see in the lower right-hand portion of this slide. This will assist us in continuing to drive best-in-class results. Lastly, on capturing significant growth opportunity in our install operations, I mentioned earlier, we have a significant focus on our growth opportunity here. In 2023, our annual revenue will be $2.5 billion, which is approximately 15% of our total revenue. Providing a bundled solution for our customers, including material and labor, creates a significant, significant value for BFS and our customers in a challenging labor market. We have the capability to provide turnkey solutions over multiple product categories on single-family and multifamily projects. On labor, our labor sales are up 45% year-over-year in a flat market, and that's, that's unbelievable to achieve that in 2023 with the market conditions today. This is an organic and inorganic growth opportunity in which our top products are listed on the right-hand side of the slide. It's millwork, windows, framing, and siding. Currently, we have insulation capability in two-thirds of our markets with an opportunity to further expand, and the key point to remember here, it's 15% of our total revenue, but we have over 66%-67% of our markets have an opportunity to grow that business, so plenty of runway there. Lastly, key takeaways. What I'd like to leave you with today is that over the last three years, our operators have continued to deliver very favorable results. With that being said, we will continue to add tools to better serve our customers and maintain our safe workplace, but the key takeaway is we are just getting started. Now I'd like to welcome Tim Johnson, our SVP and General Counsel, to the stage for the next presentation. Thank you for attending, and enjoy the rest of your day. Thank you, Steve. Good morning, everybody. My name's Tim Johnson. I'm the Executive Vice President at Builders FirstSource. I oversee ESG, as well as legal, safety, risk management, and real estate. So I've been with the company for about five years now, but I've been in the industry for over 15 years. And today, Amy Messersmith, our Chief People Officer, and myself are privileged to talk to you about our ESG strategy and some of our initiatives that we have under that strategy. So during our time today, I'd like to leave you with three key messages. The first is that our ESG strategy is integral to our overall corporate strategy. And what we're doing on the ESG front truly differentiates us in our industry, as well as from our competitors. The second is that we are delivering our customers with innovative, sustainable solutions, addressing their needs, driving their success, as well as profitable growth for Builders FirstSource and sustainability. The third key message is that we are continuing to build on our high-performing, values-driven, inclusive culture, which allows us to attract, develop, and retain the best talent in the industry. So this slide sets forth our recently developed ESG strategy. But before I go into this strategy, I'd like to first take a step back and just talk about our ESG journey at Builders FirstSource. Well, as you know, we had the merger with BMC three years ago, and given that merger, our ESG journey is still in the early innings. We started this formal journey about two years ago, roughly one year after the merger. Even though we're in the early innings, I think you'll see we're making great, great progress. When we started this journey a couple of years ago, our initial focus was around getting our arms around our carbon footprint, and as Dave mentioned, specifically, our Scope One, Scope Two greenhouse gas emissions. Well, as you heard, we were successful in being able to report these emissions a little bit earlier this year in our 2023 CSR report. Since that time, we have pivoted to a more forward-looking strategic mindset around ESG, and that is reflected in this ESG strategic framework that you see. There are four key pillars to this ESG strategy. The first is our customers, and delivering innovative, sustainable solutions to help address our customer needs or pain points, as Dave said. The second is our operations, and increasing the efficiency and the effectiveness of our operations to deliver sustainability and long-term value for our company and shareholders. The third pillar is our communities, and particularly, positively impacting the communities in which we operate and serve. And finally, is our team members, and how our inclusive workplace is driving value for our company as well as our shareholders. Before I leave this slide, there's one main thing I want to emphasize with respect to our strategy. Each and every initiative that falls under our ESG strategy must deliver value for Builders FirstSource as well as our shareholders. As Dave said, ESG is not just checking a box at Builders FirstSource. You heard a little bit earlier today that innovation and customer focus are core to our business. And it's out of this core that comes the first pillar of our ESG strategy, which is delivering innovative, sustainable solutions for our customers, helping to ensure their success as well as our success. Well, a great example of what we're doing on this are our value-added off-site manufactured products, which include roof trusses, floor trusses, wall panels, as well as our pre-cut and labeled Ready-Frame framing packages. These deliver value to our customers by meeting their pain points of labor availability and speed to build. More specifically, compared to a traditional stick frame structure, and when we think of the average U.S. home size, our manufactured components allow our customers to frame that structure roughly 2.5 times faster, addressing their pain point of labor. They also allow them to build that structure more safely because there's reduced on-site cutting and ladder time. Our manufactured components reduce waste. Roughly 25% less lumber is consumed when builders use our manufactured components, significantly reducing the amount of material going to landfill, as well as emissions associated with waste haulage. So as you can see, our value-added products drive very significant and solid environmental and sustainability benefits, but they also drive significant customer value, increasing customer loyalty and customer retention. Now, a little bit later this morning, you'll hear from Tim Page about our digital solutions. I'd just like to note that as we increase the adoption of our digital solutions, it's only going to accelerate the utilization of our value-added products. Again, continuing to drive that profitable growth and value.... Well, you just heard Steve talk about our Operational Excellence and how it delivers benefits for all of our stakeholders. Well, a lot of that Operational Excellence is tied to our, the second pillar of our ESG strategy, which is delivering, which is increasing effective and efficient operations. So great example is, are the manufactured products that I just talked about, right? As they optimize material usage, they reduce waste, reducing our carbon footprint, as well as the carbon footprint of our customers and the homeowner. So to put just a little meat on the bone, put a number behind this, over the last five years, our manufactured products have saved over 5.4 million trees. Another example of what we're doing on the operations side is, is our commitment to sustainable sourcing. So as you can see here on the left-hand side of the slide, over 90% of the lumber that we sell comes from sustainable forestry-certified vendors, decreasing our carbon footprint, as well as the carbon footprint of our customers and down the line. And today, I'm proud to say there's a nod to our commitment to sustainable forestry. Each of you attending an Investor Day will find in your materials a certificate showing that we're donating and planting 10 trees in the honor of every attendee at Investor Day. We're taking several other actions to help reduce our carbon footprint and environmental footprint, if you will, including introducing alternative fuel vehicles. This includes electric forklifts and electric trucks into our fleet. And as we look for ways to continue to reduce our footprint and continue to be a leader in this space, we have publicly committed to set specific carbon reduction targets no later than 2025. Well, moving to the third pillar, Dave mentioned that we are a people-first culture, and out of this people-first focus, it extends to our communities as well. And this is the third pillar, positively impacting and giving back to our communities, and particularly those communities in which we operate and serve. One example of this is BFS Cares. This is our company and employee-funded employee assistance program. It provides tax-free grants to BFS employees who are facing financial hardship, whether due to natural disaster or other unforeseen circumstance. Since 2017, we have provided over 1,300 grants to BFS team members to come alongside them in a time of need and help support them. We also have a long-standing 17-year partnership with Leukemia & Lymphoma Society, who is doing fantastic work in the fight against cancer. And over this 17 years, we have helped raise over $11 million for LLS, including $2.5 million this year alone, making Builders FirstSource the number one national fundraising partner for LLS. And I'd also like to mention, even though it's not on the slide, just the Building Talent Foundation. We're partnering with this foundation, as well as our customers, to help bring new labor into our industry, helping to address one of the largest challenges this industry faces, which is labor availability. At the bottom of this slide, you'll see some other organizations that we partner with. As Dave mentioned, in 2023, we are on track to deliver over $4 million in charitable contributions to these and other organizations that we partner with. With that, I'd like to introduce Amy Messersmith to talk about the fourth pillar of our strategy, which is building our high-performing culture. Thank you, Tim. Good morning, everyone. How are you? Good, good. Well, I'm Amy Messersmith. I'm the Chief People Officer. I have been with the company for two years. The prior 26 were spent in a variety of different industries, so my tenure relative to my peers is still quite short, but I have really come in these couple of years to love this industry and love the people who work within it. And I can tell you, because I have worked in quite a few different industries, that Builders FirstSource ranks very high in their relentless pursuit to get better, and that's a big reason why I chose to join the company a couple of years ago. So I'm really happy to be with you all today to talk about how we're continuing to invest in our people, in our high-performing culture. You've already heard some great statistics from Dave and Steve and Tim, but we really do put our people first, and we talk a lot about the high-performing culture, and we talk about our people first. And we do this because we actually know this is bedrock to our success. Our ability to deliver long-term results year after year after year, well, that's rooted in our people. Behind all of those amazing statistics that Dave and Steve shared, behind all of the great numbers that you're gonna see later this morning, those are people who are delivering that work. And if you listen frequently to our earnings calls each quarter, well, you'll hear we love to tell stories about our people and their great achievements. And you can absolutely rightly infer from those stories that we see high performing and people first as intrinsically linked. We do not see them as separate. So that's really why we approach all things talent through the lens of our Built for More team member value proposition, which you can see in the four quadrants on this slide here. We believe that this very formal approach drives a competitive differentiation for us because it does two things: It keeps us focused on and accountable to what we know our team members value most in their employment relationship with us. Now, there is a lot of good detail on this slide, and you've got the materials in front of you, so I'm gonna let you peruse these at your convenience, but I wanna draw your attention to the right side of the slide here. Dave talked about our SPICE values. Here's what I want you to know: We are truly a values-based company. These are not words on a wall for us. We live and breathe these values every single day, and we expect our team members to do the same. The reason these are so important to us is because we know they make us better. First of all, they make us better at ensuring our people work safe. That's job one every day, no matter what. But they also make us better when it comes to helping our people grow and thrive and build careers. Why does that matter? Because retention is profitable. It goes straight to the bottom line. It also helps us in putting our customers first. We really do get up every day and think about: how do we make our customers' lives easier? How do we solve their problems? At the end of the day, all of those work together to help us operate more efficiently and effectively, and we know that that drives great value to all of our stakeholders. So I'm excited today to walk you through a couple of areas of achievement that I really believe do create a differentiation for us, a true competitive advantage. The first thing I wanted to highlight were very clearly defined career paths. When a team member can come into an organization and very quickly see a path forward for them, they begin to understand, this is not just a job, this is a career. This is a place where I can come and grow. I can provide for my family. I can have a great life. I can gain great skills that are valued in the marketplace. So we're really excited about these clearly defined career paths, and I'll talk about how we train our people towards those paths in just a moment. But one of those levers we pulled is, the BFS University, and I think you saw a reference from that in some of Dave's comments, some of Steve's comments. We began the BFS University work last year, completed it this year. I am so proud of this work because it definitely is a proof point that we put our effort behind our words. We do really wanna put our people first. We really want to equip them well. We've also taken steps to think differently about our total rewards. Thinking about who our team members really are and what they need in order to meet the evolving needs over the long arc of their career. When we put those right programs in place, and we really come at it from a total rewards perspective, we're able to create loyalty, stickiness, retention, and we know that those things have financial benefit to the company, but they also have great benefit to the team member. And last, but certainly not least, and you've heard it already several times this morning, I love this company because it truly puts its respectful and inclusive culture front and center. If you wanna work hard, if you wanna put in the effort, and you wanna deliver great results, this is the place for you. You can come and have a great career, no matter who you are or where you come from. It's all about merit and effort, and I love that about this organization. Now, I mentioned we are a people-first culture in a people-first industry. So having programs that develop our people at scale is truly a competitive advantage for us. And so if you don't remember anything else from this slide, please remember this: Our intention is super simple. We want to equip our people in the here and now to have the skills they need to do a great job and work safely in the role they're in. But we also want to equip them with the skills they're gonna need in the future to grow their career to the next level, and we do this through the BFS One Team University. So here's some cool stats. I'm proud of these. We do extensive on-the-job training for all of our team members, and that's everyone. No one's left behind. We've delivered over 40,000 hours of online training each year. We facilitate over 46,000 in-person training sessions across the country.... And I love this last stat. Over 33 hours of training specifically targeted at helping our leaders get better, because we know when the leader gets better, everything and everyone else gets better, too. So as a relative newcomer, I often get asked: "So Amy, how you liking the job? How do you like the industry?" And I'm so glad you asked. I am so proud to be part of this organization. I really see our leaders walk the talk every single day, and that's another reason why I chose to join BFS. Now, in a world of competing priorities and limited resources, and we all know them, we all have them, here's what I'll tell you. I am very confident that we at Builders FirstSource are focused on the right programs because they authentically support what we know our team members value most in their employment experience with us. We are a people-first team. We do grow careers from within. Without question, our teams are empowered to run the business at the local level, and we absolutely create space and intentionality for giving back. So I'll leave you with these closing thoughts. We know, especially in this evolving environment, that we simply must continue to operate with excellence in everything we do. That's why we're focused on ESG, that's why we're focused on our customers, and it's why we're focused on our people. We know that when we focus on these areas well, they absolutely enhance our ability to operate with excellence over the long term, and ultimately, that creates exceptional value for all of our stakeholders. So on behalf of Tim and myself, we thank you for your time today, and at this time, I'm gonna ask my colleagues to come back up for a quick Q&A panel. Give us just a second to get settled. Buddy, you're a boy, make a big noise, Playing in the street, gonna be a big man someday! You got mud on your face, You big disgrace, Kicking your can... Just a couple housekeeping items before we get started. If you could please state your name and firm for the webcast, as well as limit your question to one, that would be fantastic. So with that... Janine, we have one right there. Thanks, Mike Dahl, RBC Capital Markets. Question on installation. You know, a lot of companies across the broader sector treat this different ways. There are a couple public peers in the insulation space, but then there's a mixture across privates and building product verticals on how companies do this, and that's for various ways. But just, you know, talk to us more about your strategy there. What this was, if it's 15% today, what was it prior to the BMC merger, and how do you plan on controlling the labor aspect? Is this W-2 labor or is this still contracted labor? So I'll start and then I'll Steve tag on. So our view on installation is you know, probably 5 plus years ago, installation wasn't as attractive, because really, installation was the ante to get in the game to sell product. You didn't really get paid for the labor component. You probably basically got your money back and we accepted that, and you know, we're just glad to get the product sales. As labor challenges have continued to worsen in the industry, that pain and it has been something a lot of the builders have been willing to offload with you know, a little bit more of an incentive for the person taking it on, to accept. So that's where it's kinda shifted, and the difference between now and if you look 5 years ago, you can make money on labor for the risk that you're taking, which there is risk involved, both from a, you know, being able to source the labor, to accepting liability of the installation, and it's, it's more of an acceptable value proposition today. So as a result, you heard Steve say, we, we actually do some level of installation in 67% of our markets. Now, it could be very small, 1 product only, all the way to we install every product we sell. Now, there's a long runway there. We'll evaluate each opportunity case by case or market by market on where the opportunity is. We typically use third-party contract labor for installation. We, we may have crews that do warranty work that are employees, but the installation work, we generally sub out to third party 1099 contractors. Anything else you wanna add there? On the labor side, it's easier for us to control that 1099 labor 'cause we, we pay every Friday, we pay very well, we're very reliable. We give them a, a schedule they can plan their business out, and we do... You know, there's other builders out there that compete with that same framework as well for that work. But, we've, we've been able to sustain it mainly in our larger markets, but we, we feel we can take that to some of the smaller markets as well. You know, and it's a good example of taking a playbook that works somewhere and applying it across the platform to scale where it makes sense. ... Thanks. Hey, Matt Bouley, Barclays. Thanks for all the details today and for the kind words on the Florida State Highway robbery. So my question is on the truss network. So you mentioned the 120 facilities you have nationwide. You know, wanted to ask around the kind of competitive moat given, you know, where your margins are, and kind of, you know, maybe some of the answers around what we'll see later today around your investments in automation. But what are you doing to sort of maintain and extend that competitive moat, you know, in the event that there are those, you know, looking to add capacity in that business? Thank you. Yeah, thanks for the question, Matt. I mean, I'd, I'd approach that two different ways. First, we focus relentlessly on lowering the variable costs in existing plants, getting the best hourly cost, hourly labor productivity metric in each of our plants. And we've done that successfully the last three years through automation investments. That also increases your throughput and capacity, quite frankly. The other way we would look at how we would grow that category is in markets where we're either under capacity or not present at all. And a lot of those opportunities are best through M&A. So if we can find someone that's already in the market, you know, and buy them, we get, you know, a immediate entry into the marketplace and we have one fewer competitor. Typically, in those scenarios, they're not at the level of automation we are, right? So there's opportunity, again, after we've made the acquisition, to improve their capacity and throughput and gain a second level of return by upgrading their... You know, it'll always be in our strategy. You know, as you saw on the map, we're getting pretty good at filling that map out, but there's still opportunity. Steven Ramsey, Thompson Research Group. Thanks for the presentation. Another question on the install sales. Thinking about the 45% growth this year, and, and the market dynamics behind you, how much of that is multifamily driven? How much of the install sales are multifamily versus single family, and how do you see that evolving over the next couple of years? Well, First, I just wanted to clarify, the 45% was on the labor component, not labor and materials together. But we do install in both categories. Do you have more? Yeah, on the multifamily side, we do more install millwork than we do commodity lumber, and we've done that for a long time, and we have a good labor source there, mainly on the East Coast. But as far as the multifamily growth and install, we have not done as much framing and windows and siding as we do on the millwork side. Millwork is our- We do a little bit in New Jersey. Yeah, some in New Jersey. We're actually the largest framer in New Jersey- Yeah ... in that area. Thank you. Keith Hughes, Truist. My question is also on install. As you look at the growth of value add, which you talked about a lot, is that a major component of the growth? Is it more than its share of the revenue, or is this more of a side line? So thanks for the question, Keith. To date, it is not the major driver of growth. To date, the major driver of growth has been value-added offsite fabrication, and primarily along the lines of truss. And, you know, but that's, again, if you looked at that continuum, that's the next step, right? We got the offsite fabrication and we still have plenty of room to go and grow in that specific aspect of value add, but the next obvious step would be install. And for me, again, the trigger is, are we getting paid for it or not? If we're not getting paid for it, I'm not interested in investing in people and trying to drive that. But if people recognize the value, which I believe they do today, I think it's something that's a natural evolution for our industry and our business. And think about it this way, too: no physical investment required. I don't have to build a plant. I don't have to build a building. I basically have to assemble an install team and then use third-party contract labor. Is there a future where you're gonna use your own labor to do this? I'm sorry. A future where you use your own labor to do this, the own labor of- You mean use your own labor? Yeah. Probably not. You know, I mean, there might be an isolated instance where it makes sense, but typically you don't do that because it's easier to flex up and down. Thank you. In the back, in the back. Thank you. Trey Grooms with Stephens Inc. So you mentioned increased digital sales will increase more value added and manufactured products. Can you talk about how that relationships work? And, you know, is there any way to think about the value added mix through the digital channel versus, you know, more traditional sales channels? The natural connection with digital and increasing our value add is through the fact that it's an end-to-end platform. So we're starting with the house plan and the design. Truss design is part of design, right? So if we get in on the front end, and we incorporate truss design into the end-to-end digital solution, it's just natural that that product sale would come from our facilities. What was the second part of your question? I'm sorry, Trey. Sorry, just, any way to think about how that mix of value add or- Okay, no- manufactured products differs in digital versus more traditional sales channel? Yeah, you know, it's, it's early innings on digital and how that impacts our wallet, share of wallet. I would anticipate that over the long haul, it would mirror our normal sales mix for customers. It's just hopefully we get more of it from the existing customers that we bring into the digital platform. I would say initially, though, we would probably tend to see more products in the digital space be on the value add side. I think over the long haul, it'll eventually average out to be a typical customer mix, but initially, I do think value add will be the higher percentage. It's a question for Dave. So over the last- Oh, can you state your name? This is [uncertain] from AllianceBernstein. When you—so company has gone through a fairly big transformation over the last two years. When you look into the future, what other industries or companies do you admire the most that you think you can aspire to get to? Wow! You know, I'm singularly focused on our industry, you know, and I'm singularly focused on how we get better. You know, I think we've laid out the strategy of where I want to focus the company, and that's on finding ways to better ourselves, and then finding opportunities through either M&A or organic, where we can grow, being better at what we already do today. I'm not totally looking for transforming what we do as much as transforming our footprint, if that was, that would be the case. That would be more of my focus, versus transforming who we are. Ketan Mamtora, BMO. One more question on the install side. As you go about sort of, you know, creating a moat on the install side, right? How do you sort of create a moat there? You know, on the truss side, you know, it's the physical plants, it's your participation in these MSAs. But on the install side, you know, how—what sort of a competitive response there can be if it is, if it is about sort of getting third-party contractors and getting them to install, what kind of a competitive response do you expect from your competitors who could go about doing something similar? Thank you. Yeah, I think it... Thanks for the question, Ketan. I think at first it starts with who has the best relationship with our customer, right? So that puts us in the driver's seat at the very beginning. Then, because we do $2.5 billion of install, we have subject matter expert knowledge on almost any product category on how to do it the right way. And part of that playbook is: how do you recruit labor the right way? And, you know, as we said, one of the first things we learned early on is, hey, if we just pay them every Friday versus every two weeks or even once a month, that's a huge benefit to them. The other thing we do that is not a small matter is market by market, we make sure that, you know, we're not installing against our customer, right? I don't mind taking an install challenge against our competitor, but I'm not about trying to take business from my customer. I'd rather partner with my customer. They may prefer, "Hey, you know what? We'd rather just bring the labor to this party, and you manage the whole process." We've been successful at navigating that in a lot of our markets as well. Reuben Garner with The Benchmark Company. Thanks for the presentation, guys. So on the truss and millwork automation, what inning are you in on that journey? And I guess, what kind of percentage or portion of the savings or productivity improvements over the next few years are driven by that versus maybe best practices or integration with BMC over the last couple of years? The integration work was less about automation and more about cultural alignment, and that took us to a certain level. Then the automation was layered on top of that. The automation itself, we're probably... I think there's a stat in the deck, 60% of our tables have some automation. I would say that relates to almost, there's some level of automation in almost 100% of our plants. I don't want to use the number 100% because we may have acquired somebody in the last two months, and I don't know where they are on automation. But at the end of the day... That was a joke. I know who we acquired and when. At the end of the day, we still have a runway to go, and part of it is, you know, these technologies, there's really limited players in the space. We're the biggest customer, the one that does it the most, and it takes a little bit of time for them to generate the level of technology and machinery we need. So we're pretty much on a steady pattern and upgrading where we see the greatest opportunity. We've hit the highest priority since the acquisition, and that's what's resulted in the 45% that you see. You know, for a while, I was too, quite frankly, a little frustrated. I was frustrated because I knew we'd made some investments, and it was hard to see in the numbers, but it's just because we hadn't gotten over the hump of more people being automated than not. Once we saw that, you saw the numbers really accelerate pretty fast. And, you know, that's what was exciting to me, and proof, proof of point, pretty much. And, we still have a good bit of runway to go within our existing plants. And again, every time we do an M&A, typically, they're not as automated as we are, so that adds another level of additional return we can get from that investment.... What I would add, too, is on the millwork side, we're not nearly as mature as we are on the component side. As you saw, we've recently invested in seven new state-of-the-art, door machines, and we have a ways to go there, and that's a big opportunity for us that we'll grow into. Joe Ahlersmeyer at Deutsche Bank. You talked about the tightness of labor being part of the value that you can price to in an installation of business. Would that also include, I would think, it would include the more skilled trades, which are doing categories you don't play in today. Would you actually consider moving into those categories with install leading the charge into that, meaning HVAC, plumbing, electrical, those things? Yeah. Today, specifically in the near term, any expansion in install would be in our product categories that we're familiar with. I mean, for... Again, we want to use playbooks that we already have in place. We want to use products that we know, and, you know, again, we know the environment better, who installs those products today, and how we can recruit them to be part of the plan. I would not anticipate us going into those products that we don't sell. We've got time for one last one. Kurt Yinger with D.A. Davidson. Just a quick question. You talked about the 11% share in single-family construction materials. Could you talk about, you know, what you think your market share is within trusses or maybe components more broadly? And then in terms of the amount of capital that you could deploy with M&A, is there still the opportunity set out there to use that to, I guess, be mix enhancing towards value add, or is the opportunity set sort of getting smaller, where that's gonna be more difficult to do? Yeah. Thanks for the question. The first part of that question, we do believe we grow with value add faster than the market as a whole. We also know, in the current environment, that national builders are growing faster than the market as a whole, and national builders are more apt to use value-added products because they're trying to build, you know, high volume to scale. The second part of that question was? The share in the markets we play in. Our M&A. M&A. Yeah, so our M&A strategy would still, is still consistent. We, we want to first look for adding value add capacity and look for improving our relative market share in, in any market that we're looking to. So if it's just distribution, it has to be a play that gets us a relative market share improvement that's meaningful. It can be distribution with value add, and that's, you know, actually a, a preferred target. But we also look at specifically just value add. And, you know, we'll look as we continue to build on the install strategy, we'll look at install players as part of that. Okay? I think you had one on the share, too. What was our share in terms of the markets we play in? Like in- You know, so again, we're in 89 of the top 100 MSAs, and in the majority of those markets, we're either number one or number two. All right. With that, we'll take our break. Please feel free to go over to the digital demonstrations, and we'll start promptly in 10 minutes. Thanks, everyone. Thank you. I got a feeling that tonight's gonna be a good night. That tonight's gonna be a good night. That tonight's gonna be a good, good night. ... One minute, please begin. Builders FirstSource is always looking at innovation. We're always evaluating how we can bring new technology to the market, how we can improve existing technology. Very fortunate to work for Builders FirstSource, that really wants to be on the leading edge of technology, wants to make the additional investment in robotics, and we were the first to really deploy that system. At Builders FirstSource, our mission is to be the best, whatever that takes, day in, day out. It's about delivering excellence across the company and across the country. As the number one building product supplier in the country, BFS doesn't limit itself to one solution or market. We operate hundreds of facilities across the U.S., each using technologies proven to enhance productivity and safety. Just consider our truss business. Since 2020, BFS has invested over $130 million on truss manufacturing equipment and added 10 new truss facilities across the U.S. Today, we operate more than 120 truss manufacturing facilities. The level of automation deployed in each plant varies based on the market size, complexity, and labor conditions. Our plants can include automated saws for more productivity and less waste, truss table laser systems to boost speed and quality, Wizard tables that set up in seconds, direct drive systems to streamline workflows, robotic roof and floor truss systems for efficiency and safety. Part of what we do here at Builders FirstSource is always about continuous improvement. I believe component automation absolutely contributes to our customer service success. We can meet customers' demands better than we ever could, and I think our quality is just bar none better than any others in the industry. BFS treats every improvement to our truss manufacturing operations as a chance to move the industry forward and fulfill our service promise to our customers. At BFS, we're not satisfied with the status quo. We don't believe in business as usual. Every day, we ask ourselves: how can we make things faster and safer? By creating better ways to operate our truss plants using automated solutions, we're answering these questions and helping make the dream of homeownership obtainable for more Americans. Ladies and gentlemen, please welcome to the stage, President of Commercial Operations, Mike Farmer. Good morning! Absolutely love that video, 'cause I think it's a really nice sneak peek about what you're gonna see this afternoon, and we are really excited to show you our one of our best plants in the country, and just what we've been working on. So I'm Mike Farmer, President of Commercial Operations. I've been with the company about 18 years and served in numerous different roles, including EVP of HR, focused on Operational Excellence in manufacturing and sales, and recently leading our multifamily division. Today, I'm 100% focused on helping us drive growth and look for opportunities to continue to build on our Commercial Excellence. Over those 18 years, I've had the distinct privilege of being part of an opening bell ceremony three different times with three different ticker symbols, STCK, BMCH, and now BLDR. So it's gotta be some kind of record out there, I'd imagine. But it's been a lot of fun and a great ride being part of those three great companies. Today, I really wanna talk to you about how we're incredibly well-positioned to do a few things. First is leveraging our largest and best integrated sales organization in the industry and our off-site manufacturing network. We've talked a lot about that. That is one of our key strategic tools that our sales teams have, that our competitors do not in any meaningful way. The second is how we use our industry-leading data. Given our size, we have more data than anybody in the industry, and we're looking for ways to continue to leverage that data to elevate our Commercial Excellence and drive share growth. Finally, how we're focusing on our relationships with our home builders to really continue to solidify our industry-leading position. First, I wanna talk a little bit about our sales organization, which is truly one of our competitive advantages. We've heard a lot about people. People are important in our company, and our sales team of over 1,850 outside sellers and nearly 2,000 inside sellers have 13 years of experience with Builders FirstSource. Probably a lot more than that outside of Builders FirstSource, but 13 years with Builders FirstSource. We are focused on using our 160 component plants to really grow value add and use that as a tool to continue to support our customers and solve pain points. And we have 115,000 customers. On the left-hand side, you can see that there. And, you know, one of the, one of the great things about that is our largest customer has less than 5% share with us. So very diversified customer base that allows us a lot of opportunity for growth and a lot of touch points. Lastly, I wanna call to your attention on the left-hand, or on the left-hand side of this, All that drives a 90% customer retention rate, and importantly, 85% of our customers buy at least two or more categories from us, which is, which is really important for our share of wallet. Next, I wanna talk about kind of our Commercial Excellence and, and how it's really gonna help us continue to grow long term. From left to right, I wanna talk to you just briefly about some of the key areas we're focused on. First is our sales analytics and how we utilize our data to, to make better decisions, drive transparency through our markets, and focus on our customer value proposition. The next is our value-based selling, how we're driving that value-add products and solving pain points for our customers. The third area is using our sales operations teams to help support all of our outside and inside sellers, to really look for ways to drive consistency and support that growth. Fourth area is our market pricing. Our markets are very, very, very, market-focused, and our customers are very market-focused in a lot of ways, so we need to be reactive, in each of our markets and act a little bit differently in certain ways, to be competitive. And then finally, our category management. All that data, all that feedback we get from our teams, allows us to be better partners with our suppliers. Now, I wanna drill into that a little bit deeper and talk about how we're leveraging the largest customer data set in the industry. Our sales analytics have continued to improve and grow, and we've got a lot of runway in this area, but it's an area that I think is gonna be really important for us long term. Big data is an important thing and an area that we've got a lot of emphasis and focus on to make smarter decisions, which allows us to really look and deep dive into our customer profitability and understand customer by customer, market by market, how we're winning and what that's gonna look like. Through our sales operations team, we're on the early stages of exploring AI, and we're excited to see what we can do with that as well to continue to drive and support growth. You know, all this is gonna help us continue to have share gain, including new customer wins, increased wallet share, and really, that stickiness piece where we're solving pain points using all the data and sales information we have. It also helps us partner with our customers to drive cycle times down and really improve their business as well. Next area on the right-hand side of this slide is really more around our consistency and how we think about pricing in those areas. So a few of these things are really how do we drive pricing consistency within our markets? As I mentioned earlier, we've got to do different things across our markets, but how do we feel the same to a national customer, versus... you know, and how do we help support their business? You know, we definitely utilize our data to drive better relationships. We spend a lot of time talking through numbers, how we're being more efficient with our customers, and that really helps us quite a great deal. And then lastly, you know, helping our local teams understand their profitability and using our data to really drive margin improvement, national customer alignment, and really make that shift from gatherer to hunter, and really have that outside sales focus on how we drive incremental growth. You know, strengthening our national builder relationships is very important. Dave mentioned it earlier. They're continuing to take more share. National builders are using their balance sheets to buy down rates, to continue to support the demand that's out there. The demand is robust. We're seeing it every day, and you know, this is an area that we need to continue to evolve and focus on and act more like one company where it makes sense. You know, the national builders also have, Dave mentioned this, too, they use a much higher percentage of value add. And you know, I was recently talking to one of our customers who, you know, as things slow down, said, "You know, we have some guys that talk about wanting to go back to stick framing." And he's like, "We won't let them. We know how much value that value add drives through our business and the work you guys provide to us." So continue to focus on those relationships. That value add piece of the business is incredibly important. Then acting local nationally, but growing locally. So everything we do is focused on the market and making sure that we're supporting each of our individual markets and winning there each day. Lastly, I wanna talk a little bit about Commercial Excellence in action and give you a little bit of an example of what this looks like. You know, we believe, and we feel very strongly that we are the easiest to do business with in the industry, given our expertise, our portfolio, our footprint, and our tenured sales team members and leadership team. We also believe that we're creating a value for a range of values for home builders that allows us to provide our offsite fabrication. You've heard a lot about our install business, which help address labor concerns and challenges, which is one of the biggest industry challenges. I wanna... And then I'm gonna talk to you a little bit about our customer segment value proposition. We have several different types of customers. National builders is one that has continued to grow and evolve and become more and more an opportunity, and we, like I mentioned, we need to act locally here, but we also need to partner with them nationally. And recently, we sat down with one of our good builder customers and talked about: how can we grow together? We each went back to our respective markets, spent time talking with the markets around what their needs were, got back together, and because of a lot of that action, locally and nationally, we were able to grow over 10% with them, share of wallet for next year. So that's a, that's a really good example of things we're doing every day. On our regional builders, we're leveraging our 1,800, 50-plus outside sellers to maintain our relationships, very relationship-driven business, along with the custom. You've gotta have that expertise and provide value, and, and, and a lot of times, our sales reps are almost part of the builder's team, and they're, they're a vital part to their building process. Our pro remodeling business, we utilize our inside and outside sellers to bolster that business via our dedicated locations and services in each of our markets that we offer pro remodeling. And then finally, the multifamily. We have the largest value add network, and multifamily builders use a lot of value add products. The other area, and Steve mentioned on this earlier, is given our size and scale and ability to buy and cost average, we are more well-positioned than anybody to support that long-term build cycle, and multifamily builders come to us to help offset their risk. Finally, through the Commercial Excellence platform, we are really able to focus on leveraging our industry-leading sales organization and offsite capabilities. Secondly, we use our data to make better decisions and improve consistency. And then third, that strengthening our relationships is vital to our long-term growth. With that, I'd like to introduce you to Tim Page, who's gonna talk to you about another tool we have from a growth perspective. So, Tim? I got this feeling inside my bones. All right. Thank you, Mike, and thank all of you for being here today. My name is Tim Page. I'm Executive Vice President of Digital Solutions. I've been with our company for 12 years in executive roles in our finance, integration, strategy, and business development functions. I'm very excited to share with you the progress we've made in our digital strategy and explain to you how we believe it accelerates growth for our company. There are three key messages I'd like to share up front, and we'll further discuss these throughout the presentation. First, we're making significant progress on our digital journey, and we're delivering on our commitments. Second, we're developing transformative digital solutions, and those solutions are focused on creating value for our home builder customers that will drive users to our platform and further extend our industry leadership position. Finally, our success in these very early innings gives us a level of confidence in our ability to deliver $1 billion of incremental product sales by 2026. We're building solutions that address pain points in the complex home building process. For those of you that have built homes, you know it's a very difficult process. Every day, our customers struggle through an antiquated, offline project management process that results in problems at the job site. We're gonna solve problems for them, such as home affordability, access to labor, and supply chain transparency. With technology playing a greater role in every one of our lives, right, a greater role every day in our lives, both consumers and home builders have greater expectations, and those expectations go well beyond the way things have always been done in our industry. If we can go online today to configure a new pair of shoes or an automobile, is it really a stretch to think that we could do the same thing with a new home? I don't believe so. We've worked with home builders that are both new to the industry, as well as those with many years of experience.... We've also worked across customer segments, from large nationals to regional players and small custom builders. What's very clear is the tremendous opportunity that we have to advance an end-to-end digital platform that drives the change that the industry requires. And as we further execute on that strategy and accelerate digitization, we expect that demand for our solutions will increase sales from both existing and new customers. We've achieved significant milestones against the bold plan that we laid out at Investor Day back in 2021. At that time, we had just completed the Paradigm acquisition, and we were just getting started on this journey. Since that time, we've developed and introduced the myBLDR.com home building platform. We've expanded our 2D and 3D takeoff and modeling capabilities, and we've also set the stage for driving adoption. We remain in the pole position for driving digital transformation in the industry. But here's the thing I want you to remember: we're creating a differentiated, competitive position as the only product and solutions provider in our space, and that will lead to sustainable, above-market growth for our company. We're raising the bar for the industry by providing a better design and sales process for home buyers and home builders with greater control and transparency. We'll also provide greater visibility and operational benefits to our supply chain partners within this new digital channel that allows them a lower cost to market. Our unmatched distribution platform provides a significant competitive advantage. We win because of our scale and market reach, our trusted relationships with home builders, our technical knowledge of home building and structural design, and key supplier relationships. The takeaway for you to recognize is that our powerful distribution platform and our market position enables us to drive transformation and enhances our right to win. The first two years of our journey have been focused on technology development. Full product launch with the required capabilities and scalability is now right around the corner. Developing great products that provide clear value propositions to our home builder customers is fundamental to realizing growth. While software enhancement will continue for years, it's now time to drive adoption, and that starts with ensuring and understanding and readiness for change across our BFS sales and operations teams. We have a clear strategy that we're executing. Single-family home building is a $110 billion market, and as we continue to accelerate digitization, we will be advantaged to capture more than our fair share of that large opportunity. We're very good at what we do today. We have a best-in-class model for meeting customer needs. However, we all know there's room for improvement, especially in the light of increasing expectations from home builders and home buyers. Over the last two years, we've expanded to the estimating capabilities and developed the myBLDR.com platform, which represents the start of our digital transformation. With our upcoming full product launch, we will merge our technologies to form a new 3D channel that connects the digital twin to curated product catalogs and the material takeoff. Our ability to visualize selections and measure the required amount of product in the virtual world positions us to expand towards a complete home building marketplace. As we advance through this journey, we'll do so with a principle of duality, which means we'll allow customers to advance on their own timeline for digital adoption. Home building is ready to join the digital revolution, and BFS will lead the way. Earlier this year, we took our digital tools to market under the Take Building from Now to Next campaign to begin educating the industry on the benefits that technology can provide to home building. Our digital tools include myBLDR.com, Drafting, Build Optimize, Home Configure, Render, and Home Plan Library. Together, this portfolio of new capabilities allows a streamlined residential construction process that will eventually be fully integrated with structural design of the home and serve as a single source of truth for aligning all project participants. We're the only industry leader capable of merging all these technologies together into one easy-to-use platform at scale, and we'll solve home builder pain points by seamlessly connecting front-end sales and design processes to material procurement, and ultimately, to the construction of the home. myBLDR.com is a collaboration platform through which we deliver improved service and digital solutions to our customers. This high-level video highlights some of its capabilities. If you haven't done so already, I encourage you to spend time in our demonstration area to gain a better understanding of our platform. The capabilities being displayed here include plan intake and markup, access to make, finish, and structural option selections through our Home Configure experience. You'll notice a branded catalog with product from manufacturers that BFS supplies and the ability to lock home buyer selections. From there, you can request a takeoff, from which we can publish bids and place orders for BFS product. But myBLDR.com goes far beyond that. What you're seeing here is the scheduling capabilities, so intelligent project scheduling for home builders to align the flow of material and labor to the job site, to-do lists to assign tasks to trades, access control to invite project participants. Catalog curation, for a home builder to select the products they want to offer within the Home Configure experience to their homebuyer customers. Access to invoices, statements, and online bill payment, all within one customer portal platform. Here you see the dashboard that the BFS sales team will use to better understand their customer activity and help them grow sales. In about a month, we'll achieve full product launch with all these capabilities available and working seamlessly within one easy-to-use home building platform. That's a giant step forward for our industry and for home builders. In the following video, we'll hear from some early adopters of our digital tools. My name is Josh Rutzen, and I'm the Vice President of Purchasing for LGI Homes. What Builders FirstSource brought to the table is our ability to actually build the house virtually before we build it in physical. As a 100% spec builder, to create the home in a virtual setting and design it from beginning to end according to our specs, that predictability has led to a tremendous amount of profitability, and with the Build Optimize process, that allows us to solve problems that don't yet exist. Dean Hedrick is my name. I'm the General Manager of The Holt Companies. myBLDR.com, it saves me time, and time is money. The technology that Builders FirstSource offers has sold us homes, and anything that I can use to add to the bottom line of the company I manage, I'm all about that. It creates a lot of value for me from a management aspect. Most importantly, it creates a lot of value for my customers because I can link them in. They feel a part of the process. My name is Erin Lawson, and I am a Design Studio Specialist here at Grayhawk Homes. We get a lot of questions of, "Are we gonna be able to see this in a complete picture?" The biggest one was exteriors. We would go back and look at samples of the exteriors, but people just couldn't visualize it on a whole home. So this visualization software is amazing to be able to show the homeowner that, yes, this whole home is going to be blue, and if you put a gray accent here, this is what it's gonna look like, change your roof color, your front door color, et cetera. So this has really been a game changer in the design studio experience. Matt Green, I'm the President and CEO of Front Light Building Company. So as I look at the digital tools that Builders FirstSource and Paradigm are creating, the next evolution in all of that is: how does it apply to the actual construction of the house? To me, the biggest benefit is connecting the trades, the homeowner, and the builder on one platform. Builders FirstSource was the company that took the step to be able to create change in an industry, and so I think they are so far ahead in the development and evolution of where the construction industry is going. I'm really excited that Front Light Building Company is a part of that effort. Yeah, very good. I want to thank those customers for their support and for joining us as early adopters in this journey. Those customers represent different segments, and our tools are creating value for each of them. Watching that video just further excites me on the opportunity that lies ahead for our company. Early metrics provide us with an increasing level of confidence in our direction. After launching myBLDR.com earlier this year, we're now seeing metrics that include 5,000 customer users per month, with over 5,000 plans added to the platform already. We've also completed 25,000 takeoffs. We've increased investment in resources to help us drive adoption. We will have trained about 30% of our BFS sales team by the end of this year in digital roadshows that will continue on well into 2024. We've assigned adoption targets, we've set incentive programs, and we're tracking progress through area scorecards. These metrics will expand through 2024 as we deliver greater capabilities in our upcoming full product launch, as we continue our training plan, and as we engage more customers to capture our $200 million incremental product sales target by the end of next year. You saw Matt Green, President and CEO of Front Light Building Company, in our customer video. Matt is one of our early adopters, and you're going to hear from him directly in a couple of minutes. I met Matt two years ago, and we shared a common vision about how technology could be used to improve home building. Matt, like thousands of other builders, was looking for more than the traditional home builder-distributor relationship. So working with us and through his local BFS team, Matt has deployed digital tools to gain control over his projects, align his trades, and most importantly, exceed his homebuyer expectations. Through this process, Matt has improved the quality of his builds. He's realized cost savings, reduced cycle times, and enhanced relationships while he's deployed his own digital strategy for Front Light Building Company. Matt and the other early adopters in that video provide just a small sampling of the opportunity. There are over 50,000 home builders in this country, and all of them would gain efficiency through our digital tools, and we're just getting started in reaching out to them. A consolidated process with connected technologies within the myBLDR.com platform enhances the customer experience. This will provide us the opportunity to grow wallet share and gain additional starts with existing customers, as well as win new customers that are looking to improve their business through the use of technology. We'll continue to expand our product offering and look to partner with other distributors as we establish a true home building ecosystem. We're confident in our ability to drive the adoption of these innovative solutions, and that will contribute to our sustainable, above-market growth. I'd now like to bring Matt Green, President and CEO of Front Light Building Company, to the stage for a brief discussion. Thank you, Matt. Thank you, Matt. All right. Matt, thanks for being here today. Yeah. and taking the time away from your business. This is great. Thanks for having me. Very exciting. You've been a great partner to us thus far on the journey. Thank you. We've learned a lot from you and your company. Why don't you start, Matt, by telling us a little bit about your company? Yeah, sure. Front Light Building Company, we've been around for about 10 years, and we focus primarily in the coastal regions of South Carolina and Georgia. We kinda have two product lines that we focus on. One is a higher-end custom product. We build about 40 homes a year, ranging anywhere from $1 million-$5 million. And then recently, as a result of the digital tools and our experience over the last couple of years, we've launched a brand, branch called Simplified, which is exactly what it sounds like, right? It's just a simpler approach to building, utilizing some of the efficiencies that we picked up by utilizing these digital tools. Yeah. I've been in some of Matt's builds. He builds a tremendous house. Oh, thank you. I'm glad to see how we've been able to help his business. Now, why don't you share which digital tools you're using within your business and how the deployment process has gone thus far? Yeah. So based on the product line, we use a lot of the digital tools. Frankly, the more that time goes on, the more we're integrating them into the business. So we're big proponents of the Build Optimize process, we're big proponents of the Render process and the Home Configure, because it really allows us to integrate the customer into our build experience much, much sooner than we did, frankly, prior to COVID. You know, COVID really presented a lot of challenges to us as builders, some that we didn't foresee, and so I was searching for solutions and innovative ways to better our experience with our customers. And those are just some of the tools that have had a great impact on our business. Yeah. Very good. Matt, talk a little bit about how the tools have impacted your business. I said a few things at a high level about build cycle time and cost savings. Talk about the impact on your business and the relationship with Builders FirstSource. Yeah, so as I mentioned, you know, when COVID came around, we were looking for solutions to really drive some accuracy things, like takeoff and estimating, and things that we were having a big challenge because there was so much coming at us at one time. And so I sat down with BFS and, you know, the more I listened to today and all of the, the leadership team, it's exactly what I witnessed with Front Light Building Company. We rolled up our sleeves together, and I brought some challenges and problems to the table, and we worked through those together. Yeah. Those digital tools, taking something from a 2D platform and bringing it to life in a digital world from a 3D standpoint, really allowed us to look at the build in a different manner than we did, frankly, on the job site. Right. And so we were very proactive, and so the relationship with Builders FirstSource was critical to us making it through some of those challenging times, because our growth was like this- Right. And so we needed all the help we could get at the time, and Builders FirstSource was incredible as a partner in that effort. Yeah. That's great. We all know that this is an industry that lags behind others in terms of technology adoption, and that change process is hard, and it really has to be a partnership between the home builder and their local suppliers. Yeah, absolutely. It's, you know, it's a journey, and building is not getting easier. You know, we hear about labor today and the install, and there's a lot of questions around that. And I exactly think that's where the focus should be, and I think these digital tools, as an organization, as a leader of our organization, you know, I am searching for an end-to-end platform, where if we can build the house in a 3D virtual world prior to anything happening on a job site, there's just so many efficiencies that we can pick up with our trade partners, with our customers. Mm. And then, how do we become more efficient as we go into the field and build, whether it be components or installs and things like that? Right. You know, I am driving to figure out ways to do things what we do on a day-to-day basis easier. Right. Right. Matt, through this process of being an early adopter, what's been the most eye-opening to you, right? You're deploying basically a new process where there's more upfront engagement with your suppliers, with your trades, with your home buyer. Why don't you talk about what's been most eye-opening- So- as you deploy the technology? The biggest, it's a great question, right? Because the biggest eye-opening thing for me is, as a builder, we've been in this business and space for a long time. Really integrating the trades and the customers earlier on into that build cycle was important to me. And it's been game-changing for us. It really has. You know, because we have a subcontractor model in the construction industry, right, we don't own the trades. So how do we integrate them into the business? And through this Build Optimize- Yeah ... well, we're building the house together. They literally come to our office and we collaborate the various disciplines, the key disciplines of the trade together. That's a win, right? We solve so many problems together versus on the job site. Right? I often say we don't have to call the fire station every day to see what the problem is today. So we're being proactive. And then the same thing with the customer. Number one, they can see that experience that we're going to, it gives them comfort, but then we can take, you know, whatever selections and things that we do, and we can show them all of that information prior to them actually, you know, constructing the house. And that is enormous to be able to bring that onto one platform. Yeah. The biggest challenge that we've had is as an organization, you know, we get so excited, we wanna immediately implement it into our team, and so we have changed how we do business as an organization from an efficiency standpoint. You know, for instance, our estimator is now, we call him a virtual builder, right? 'Cause that's what he's doing. He's building the house with all of the people that I talked about prior to construction. Yes, estimating is a proponent of that, because that ties directly into what you're doing with the myBLDR- Yeah and storing all of our pricing information, all of our logistics, you know, with the job site delivery. So again, creating that end-to-end platform- Yeah has been invaluable for us as we do- Right what we do on a day-to-day basis. Right. And you end up with a home that's built the way it was designed to be built, and mechanical, electrical, plumbing systems that are operating the way they were designed to operate, so you end up with a better build. That's- And better control over- You know, that's never happened to us, right? Right. The customer is always happy. I'm just giving- You're making changes at the job site, right? Yeah, exactly. Yep. All right, so just, one last question for you. What, what advice would you give to other home builders that are considering the use of technology within their business? You know, I think you hit on it, right? The first time we spoke, we had alignment that this industry needed to change. Yeah. You know, I'm a CPA by trade and was on the intangible side of the business, and got into the building business because it was very gratifying to me to be able to build products and be able to deliver those experiences. As I look at the industry as a whole, I look at the home building industry as a whole, I think we're so far behind on integrating technology into what we do on a day-to-day basis, and I could go on for hours on that particular comment. And so I don't think people have a choice, right? I mean, the product suite that you're bringing to the market, certainly digital tools, right? There's a tool for everybody to use, but I think is the, the myBLDR platform, where you can store documents, and do scheduling, and look at your materials, and look at your deliveries, right? That's a huge win from where we have in the industry now. And so, you know, when I talk to people, I always encourage them. It's amazing the platforms that people are still using today in this business to run their business of building a home. And frankly, I've heard it here, like, "Hey, I just built a home two years ago, and it was unbelievable. It was driving me nuts. Yeah. I think there's so much upside and opportunity, you know, in the market, and I think- Yep These digital tools are gonna be a huge force. Yeah. Right. Right. Well, thank you for that, Matt. You know, Matt, Matt made the comment that he could talk about this for hours, and he and I have talked about this for hours. It's true. I'm sure there's some of you in the audience here that would love to hear him talk for two more hours. But Matt, thank you for taking the time away from your business and being here with us today and sharing your experience. Matt will be available in our demonstration area after we close out here. We are showing off some of his projects in the demonstration area, so please don't hesitate to ask Matt any questions about his experience in working with us. But, thanks again, Matt. You've been a huge supporter to us. Thanks, Tim. Yeah. I appreciate it. Yeah. Thank you. All right. All right, in closing, this is a very exciting time for both our company and our industry. We're making significant progress, and we're delivering on our commitments. We're developing transformative digital solutions that create value for home builders and will drive more use of our, of our digital platform. And we remain confident in our ability to deliver $1 billion of incremental sales by 2026. Again, if you haven't done so already, please be sure to stop by our demonstration area. I've got a team of great people over there. I mean, I'm so fortunate to represent a great, passionate team that wanna drive change in this industry. I think you'll be very impressed with what you see over there, not only in our software, but also in our team members. So thank you very much for your time and attention. It's now my pleasure to welcome Peter Jackson, our Chief Financial Officer, to the stage. So, for those of you who don't know me, my name is Peter Jackson. I'm entering my eighth year with Builders FirstSource. My primary responsibilities: finance, IT, M&A, and maybe my favorite one is really talking to the world about this inspiring vision that we have here at Builders FirstSource, which you've seen a little peek of today. My remarks today will be pretty straightforward, four key messages. First, we execute. We execute effectively by managing the things that are within our control, managing our strategy, and working hard each and every day to deliver exceptional results. Second, I'll talk to you about our margin expansion. It's a dynamic market. We have been exceptionally successful at increasing our margins through a combination of factors: value-added growth and continuous improvement. That's part of the fundamental way that we compound value for shareholders over the long term. So one of the questions I've gotten periodically from shareholders is, "Look, you guys have been on a run here. Your stock price is running, your margins are running. Can you guys really keep this moving?" The answer is an absolutely confident yes. We do it with some pretty fundamental ways, right? It's the financial rigor that we bring to this business. It's about our ability to leverage that Operational Excellence, what we do every day, how we work for customers to create that ongoing compounding of value for our shareholders, which generates cash... And we love cash because it leads to my third point, which is the support of our fortress balance sheet. That balance sheet, in turn, provides the foundation that we leverage to do all the other things we want to do. The capital allocation that we're investing in future opportunities in growth, which leads to my fourth point, growth. We want to talk to you today in a little bit more detail, based on what you've heard about the financial implications of our growth goals and targets. With that in mind, let's talk a little bit about how we've done so far. Here's a recap of the last five years. The dark blue will highlight is the base business view of our world, which normalizes for sales and margin to take out the volatility of commodity fluctuations. You can see here on the left side, we have delivered consistent sales growth, averaging a 12% CAGR over the last five years. That despite what you see in that line that floats behind, a pretty up and down world when it comes to single-family starts. We've still delivered that 12% growth CAGR. On the right, you can see the profitability performance. That's not a misprint. That's a 37% CAGR on our EBITDA. We're exceptionally proud of our ability to do that, even in that down market, through a couple of things that you've heard themed throughout today's event. You've heard Dave, Steve, Mike, talk about our expansion of value add, how meaningful that is to us as a business. The impact, the accelerating impact of those accretive tuck-ins that we continue to execute day in and day out. And finally, that prudent management of cost, all the while driving a continuous improvement mindset, managing the core and improving over time. All of that exceeding the commitment. We told you double digits, we well exceeded the double digits. At the same time, investing in the next generation, the $130 million that Steve talked about in the investments and trust, all the work that, and the investment we're making into the digital future, that is really setting the stage for our success in the long term, included in these results. On top of those headwinds in a dynamic market. The dynamic market has led us to our performance. Our performance here, you can see on the first line, revenue, bit of a disappointment. We were expecting a little bit more out of the market than what we were able to, to see, right? We saw that pullback versus our 2021 Investor Day expectations, but still delivered a 3% growth. We did that through the outperformance of our product categories that are meeting customer demands, as well as our accretive acquisitions. But let's take a look at the profitability. Adjusted EBITDA. Adjusted EBITDA margin, our 13% delivered, even though our starts number is about 25 below what we told you we thought we would expect in our 2021 estimations, right? 25% miss, we're still delivering a 13% CAGR on our EBITDA number. We're more than doubling our target with regard to margins. Throughout all of this, we've been consistently deploying capital and driving our EPS. That EPS result, 45% CAGR, again, 50% better than what we were expecting. We've repurchased over 41% of our outstanding shares since August of 2021. So again, all of this happening in a dynamic market. So let's focus on that just for a second. Right, so, so there's a misconception, in my opinion, that because we're exposed to housing, that we've got this cyclicality that's uncontrolled or that's a risk, and I would counter that. I would say we have a demonstrated and proven success throughout the cycle because of our differentiated operating model. Our ability to work in this space has been honed over time, and we are exceptionally good at it. We leverage our superior scale to the market, no matter where, what cards we're dealt in that market. We leverage our Operational Excellence structure through our active management and our seasoned leadership team that you heard about, in order to be able to continue to drive that operational performance. You add on to that the way our cash flows work. Structurally, we have countercyclical cash flow generation, so our ability to harvest cash when it's down and generate a lot of cash when it's growing to reinvest into the business is core to how we're successful and how we use it to defend our balance sheet. That fortress balance sheet, it's the anchor of how we succeed. It positions us to create value in the short term, but then outperform our competitors in a really meaningful way, no matter what the market is doing. We have the right strategy, we have the right team, and we have the right structure. Not just to survive, not just to do well, but to exceed and outperform, no matter what the market deals us. All of that performance obviously leads to... This group loves this, I know, cash flow and cash flow sustainability. So let's take a peek. We generate a lot of cash, fundamental fact, especially when commodity prices are high, but even when they're not high, we generate a lot of cash. Our operational disciplines, you'll see on the left, the amount of investment we make into CapEx, into working capital, are quite modest compared to what we generate each year. So our ability to continue to invest in the business, leveraging that roughly 100% of net income that we convert into free cash flow is absolutely meaningful. And our ability to do this over time is something that we are both committed to and successful at. So let's see where we've used that cash. You look here at our balance sheet. Currently, on the left-hand side, you can see our, our profile of debt. Outside the ABL, we have no debt due until 2030. It's all fixed, relatively modest, 5.3% interest rate. On the right, you can see what we've done with our cash in order to pay down debt. We've talked about the transformational acquisition of the ProBuild business back in 2015. We were still digesting the leverage associated with that on our way to our target of 1-2 times base business EBITDA as our leverage, right? That's our long-term target. We've talked quite a bit about that. And you can see the discipline that we've achieved over the last four years in regard to that target. So here's the two things I want you to take away from this slide, right? We are not only extremely well-positioned today, the fortress balance sheet, rock solid, but we're more importantly positioned to take advantage of the opportunities that are presented to us in the future, whatever they might be, in terms of investing and generating returns for our shareholders. So let's take a little closer look at that capital deployment. Dave outlined this slide for you, but I'll drill in a little, right? Number one, the investment we've made in CapEx. We have bought pretty much everything that we could get our hands on. I would argue we got more than our fair share in terms of the CapEx availability. Everybody's heard about the supply chain issues? We had it, too. More equipment, more rolling stock, more automation. I'm sure Steve would love to have had more equipment come through in order for us to be able to run the business, but we loaded up. Next is the M&A. We loaded up our integration teams. You heard about the way we do, we do M&A, right? This is an integration process. We bring them into the fold. We make them part of our management structure, our reporting structure. We bring them onto our ERP. That work associated with that is meaningful. So we filled up our team in terms of those 14 deals that have come through. I'll talk a little bit more about that in a minute. But we still had a tremendous amount of cash left over, some of it obviously from the tailwind from commodities, no doubt, but a lot of that generated just by the core operations, and we've deployed it in a very disciplined and responsible way in the form of 41% of our shares repurchased at an average price of about $73 a share. So you look at this, right? The execution that was done prudently, opportunistically, and effectively to deploy capital. Payoff, market cap, not too bad, right? When we had this meeting last, we were about $13.5 billion. Today, over $17 billion. It, it is a meaningful return to our shareholders. Our ability to compound value for shareholders is what you see on display here with this allocation of capital. But before we move off, let's take a minute and just stop on M&A, right? Just to recap here, we balance these components, these three pieces fit, how they're gonna work well with us, what their leadership team looks like, how we're gonna manage them as they come on board. Product, the types of things that they're selling. Obviously, value add is meaningful to us, but each market has its own profile that we're looking to meet. And speaking of market, how big are they? How do they help us win? How do they position us so that we have a meaningful advantage in that market and are able to be the provider of choice? And then, of course, the financial discipline, the rigor around it. Do we have the right IRR? And usually, the best way to generate that is synergies. How is that business performing, and what can we bring to the table in our playbooks and our leadership to be able to get more out of them? So what do the results look like? Well, Dave outlined a couple of these points. We saw 6% growth, 6 points of growth from the last time we met in our value-added product categories, right? We went from 45%-51% of what we sell in that is related to that value-added product. Similarly, in the multifamily, most of this in the value add space as well, we grew from 6%-13% of our business. So you see down here, 14 successful acquisitions. Those of you that are maybe a little more detail-oriented would note that there's only 13 in all the materials that we've provided. I'm happy to announce we have another acquisition we've completed today. Encore in the Bentonville, Arkansas. We've got a 43rd state. We continue to grow. We continue to find multi-location leaders in their markets that become part of the BFS family, and we're happy to welcome Encore to the family today. So at this point, I'm gonna stop, and we're gonna pivot. We're gonna pivot from past performance to talking about what I'm sure you're all most interested in, and that's the future. So Dave unveiled these targets. He talked to you about the major highlights. I'll drill down a little bit into some of the detail on each. So if you look at the revenue CAGR, I want to point out a couple of things that are important. The first of which is we've changed our tune on our targets for ourselves on this revenue number, right? In the past, we've said, "Look, we're gonna put in low single-digit market growth, and we'll just let it ride into the future." Unfortunately, our industry, I would argue, may be disappointed a little bit. We weren't able to really run like kind of we all thought was available to us, so we've capped it in this model. This caps out at 1.1 million single-family starts. It's a proven volume that this industry can deliver. We know we can crush it at that level, so that's all we're promising here. If the market decides to give more, these numbers will get better. But for the purposes of a long-range plan, we felt like that was a prudent way to align.... Right? And also, by the way, this is a base business model, so this locks in 400. So if your models have more than $400 a thousand for lumber or commodities, feel free to adjust as appropriate. But we've taken a conservative and what we believe to be a prudent outline around this, around this guide, and it's still a 9% CAGR going into the future. So how do we get there? Well, it's the stuff we've talked about, right? It's our ability to grow this business, leveraging what we're good at already, leveraging things like value add, leveraging our leadership position with digital, and leaning into these opportunities that we see across the country to continue to grow the core and to take share in this market. All of that accelerated with M&A. You've seen that we're good at it. We've. You've seen that we can generate value, and we're nowhere near finished, and we'll talk about that more. Adjusted EBITDA and EBITDA margin, continued expansion, right? A 12% CAGR, even from where we are today into the future, combined with 30 basis points of annual expansion. It, it's the usual cast of characters. We're running the same play. This is continued expansion in value add, adding capacity, adding markets, running the playbooks of what we know how to do well around the country, leveraging the merger synergies and doing that Operational Excellence work day in, day out. Adjusted EPS, still a 17% CAGR, again, leveraging that 12 on the adjusted EBITDA side and supercharging it with our ability to allocate capital over time. Culmination, $5.5 billion-$8.5 billion of deployable capital. And remember, this is a three-year metric, not a four-year metric like we gave you last time. This is a meaningful amount of cash, and we know what to do with it. We have a disciplined approach that we're gonna run. So with those targets, let me drill in a little bit. Sales. Talked about the market growth, 1.1 million single-family starts at $400 a thousand. The market is healthy today, right? We're still doing well, but there's a lot of unmet demand. We know there's growth available to us as things calm down, and we continue to solve the problems of affordability, and we see rates come back a little bit towards us. Share growth is the biggest number on this page, right? It's $2.1 billion at the midpoint. It's through the things we've talked about today. I think there's every reason for you to be confident in our ability to deploy our digital toolset and see the benefits that are obviously associated with having the only solution in the market that can deliver that type of end-to-end benefit for our customers. We'll continue to leverage our superior position and the more rapid growth, the macro trend of movement towards off-site and install that off-site fabrication world, right? Builders are struggling with the home building process. We are a partner for them, and we help them do it. That's why we grow faster. That's why we'll continue to grow faster. And overall, our superior footprint, our superior sales team, we can and we will continue to grow share. That's 150 basis points faster than market that we are committing to with you today. M&A is an accelerator. It'll be opportunistic at times, it'll be programmatic at others with regard to the tuck-ins. But our ability to do it at this point, I think our credibility should be such that it's unquestioned. We can do that part, and we will continue to do that part. So all in, a 9% CAGR over this window, and with those in mind, where's the payoff, right? Where's the EBITDA payoff? And this is what it looks like. A healthy fall-through, certainly a reset in that market growth number that we've talked about with the multifamily business, but overall, a very nice, profitable business that falls through. But you get to layer on top of that the improvement, the continuous improvement that you see on the right. That's an ongoing part and a net number there for you with regard to what we think we can improve the business by through our Operational Excellence. The middle of the page, it's a square, not a star. I told somebody it was a star before, it's a square. That's our updated long-term gross margin target. So up until now, we've been adjusting it quite slowly. We've gotten to 29%+, is what we believe our normalized gross margins are. Our new expectation is between 30% and 33% gross margins, assuming a normalized status. What's normalized, Peter? It's the 1.1 million single-family starts. We are committed to running this business in a different way. We've done that by executing that value-added mix transition. We've done that through delivering on the continuous improvement. There's a lot of self-help in that number. It's not just about pricing management. This is about the products and the way we deliver those products to the market that has allowed us to reset what this business's normal gross margin is in a very permanent and long-term way. So we'll continue to provide guidance around that in the upcoming quarters, so please keep in mind, this is our 2026 long-term guide for you in terms of that gross margin. This whole page, overall, this is a 14%-15% EBITDA margin, meaningfully different than the history that you might be familiar with. So the most powerful part of this slide, and the thing I'd ask you to take away, the bulk of what's being delivered on this page is in our control. We have line of sight, we have the plan, and we have the team to be able to deliver it. Now, for these profits to really pay off, we're gonna talk about cash, right? Does it deliver? Does it provide cash at the end of the day? You'll see that it does. $5.5 billion is the 1x leverage version, the $8.5 billion is the 2x levered version. We're currently right in the middle if you look at our numbers, hence the range around the share buybacks. We'll deploy that capital or along all three of these categories based on the opportunities presented, but based on past experience, organic growth, core operations, refreshing our fleet, our facilities, expanding our capacity, those are the things we'll invest in in a consistent way. In the middle, it's the tuck-in M&A playbook. You know, we're a little more over the 500 target in the first year. Maybe we'll be a little under, we'll see this year, but overall, no question that we can continue to execute at a consistent pace in M&A. And finally, the excess cash, we'll put it to work. We'll put it to work in very logical ways that is a compounding of value for our shareholders. So on the last bridge, let me show you the EPS. So this is about a $7 per share increase, and this, I think about it in two buckets. About half of it is driven by the core operations and the improvements that we've talked about. The other half is really driven by capital allocation in the form of M&A and share repurchases. So this overall is just a reflection of the really strong cash flow and our operating expertise, our ability to continue that in a very consistent way, delivering a 17% CAGR on EPS. So these are objectively strong results. We're a successful firm. Obvious question might be: well, how do you compare to your peers? Well, other than being the one that's in the S&P 500 and being respected as a leader amongst our peers, we can also point out that of the five metrics on this page, we are clearly better than our industry peers in all but one. Our belief is we continue to execute like we are, we will absolutely deliver tremendous value to our shareholders as the market recognizes our differentiated solution, our differentiated operating model, and the continued success in delivering compounded shareholder value. So in conclusion, today you've seen it. You've seen our financial results objectively outperforming our peers. It's driven by our track record of execution. You have seen our margin expansion execution and the robust cash flow that that creates, which funds our fortress balance sheet and enables us to continue to deploy capital in a way that compounds value. And finally, you have seen the financial results that we will generate from our next round of projects and strategies. In summary, we remain confident in our ability to drive profitable growth and continue to compound value for shareholders as we lead this industry into the future. With that, I'm gonna turn the meeting back over to Dave for his final remarks. Thanks, Peter. I'm a financial guy, and I've been in this industry, as you know, for 24 years, and in that time, all, all with BFS. Peter's the best financial guy I've ever worked with, okay? He's got complete command of all the financial metrics we need to measure and how we need to react to. So I'm just blessed to have Peter by my side in that sense, and where he's made his biggest strides in the late few years is understanding the same, having the same command of the operations and how that works. So glad to have Peter. In addition, before I close, I'd like to thank all the other presenters. Really, job well done. Thanks, guys. I wanna call out Heather and Michael. Great job. It went off without a hitch. That's phenomenal. All our marketing and logistics teams, I think you can see they've overperformed as well. Very proud of that group. Throughout the day, you've heard words like value add, integration, experienced people, safety, innovation, Operational Excellence, sustainability, scale, leadership, digital transformation, disciplined capital deployment, among others, but all very important. The thing they all have in common is together, they lead to long-term compounded shareholder value. BFS understands our customer and how we can provide solutions to pain points that they experience today, and how those solutions provide for profitable opportunity for BFS. We have shown how we take those solutions and sustain a double-digit EBITDA in an industry where that had historically been tough to achieve. Our digital innovations, which will be the next level of growth for the company, I want to state clearly, we are the only provider in our space with a unique end-to-end platform that will make home building more efficient for our builder customers. Our free cash flow is sustainable and will intensify... and our disciplined capital deployment of that free cash flow will lead to long-term compounded shareholder value. With that, I want to thank you again for being here, and we're going to have our second Q&A session. So give us a couple seconds to set up. Thank you again. Oh, Janine. All right, just before we get started again, same thing, please state your name and your firm, and limit your question to one. I think Joe and Matt have questions. Right down the alley. Yeah. Joe Ahlersmeyer at Deutsche Bank. Thanks for all the detail. Great presentation. I was wondering if you could just talk about the gross margin again for a second. Maybe helping us think about as we get towards $1.1 million, how that could trend perhaps below the low end of the 30%-33%. Like, should we think of 30% as the floor for now? And then longer term, and actually kind of looking backwards to the 26% that you did, kind of before the merger on a pro forma basis, how would you bridge from 26% to the 30%-33% in terms of mix and other improvements? Yeah. So the gross margin has been a great story for us, right? When we were talking about the merger, I'll kind of go back to forward. We were looking at the business with the profile that it had in that moment, before the impact of, you know, the supply chain constraints and the challenges. And we talked a lot over the past couple of years about how difficult it has been to extract those two pieces from each other, right? To see how much of the change in our profitability is driven by the combined entity, you know, our, our positioning in the market, our product profile, and being that sort of provider of choice to, to customers around the country, and how much was simply the opportunity generated by a lack of supply, and what we were able to do with our size and scale to get more than our fair share. We certainly had both, and, and I think we have seen, we continue to see the pullback in certain key areas of the margins as things have reset and gotten back to normal. At the same time, we have leaned in very aggressively in those areas that I described, right? Whether it be expansion internally or acquisition of the value add, the profile of that business, which we know comes with a higher profit margin, right? There's more investment, there's more risk associated with it. We are able to derive that higher margin and have been for, you know, since the product was introduced. We have seen that benefit accumulate with that expanded margin. You know, that 30%-33% is where we look at our business and the profile and think about what that one one looks like. I certainly don't see it as a decaying margin as you get to one one. I think the further you get towards full capacity in the market, the more likely it is you see the strengthening of that gross margin rather than the weakening of it. Certainly, it's always going to be impacted by product mix in a quarter or another, but overall, I think we're seeing clarity around what our markets are generating, what we can sustain, and where the business is growing into to feel good about that. Near term, like we said, we'll give guidance along the way, but that's the migration from that 26+ up to the 30-33 we see today. Well, one thing I'd add over the top is one thing you've got to take into account for 2023 specifically, is we had a multifamily tailwind for almost the entire year, where we quoted multifamily sales products when commodities were high, and we built them when commodities were low. That's obviously a one-time benefit that we got during this year that's already been factored out of the go-forward projected margin. Right. Thanks. Matt Bouley, Barclays. Thanks again, everyone, for all the detail today. So my question is on the digital tools. You know, now that you're very close to sort of fully rolling them out to your customers, it's kind of reminiscent to me of years back kind of conversations around value add and truss, and sort of the journey you went on around educating builders and the trade around what the financial benefits would be to them of those products. So now with digital more on the horizon, I'm curious if you can, you know, maybe even put some numbers around, you know, what's it going to cost builders? What may be the financial benefits to them of that, and then how do you go about educating your customers around what these opportunities may be? Thank you. Yeah. I'll start. Yeah, sure. Go ahead then. You know, that, that's a great analogy, actually, that I've personally never given a lot of thought to, about how we add value add, and how we had to train the customer on value add, and what, what the play will be for digital as well. The one thing to keep in mind is we do think it'll be a slow and steady progress. We're, we're more conscious of a successful rollout than a fast rollout. You know, what is it you say all the time? You do it fast, you can do it good, or you can do it cheap, you pick two. Well, we want to at least do it good and moderately fast. But, at the end of the day, we do believe, once we get the right momentum going in the right direction, there'll be a, it'll be a similar- ... analogy to the value add. You know, I think from a revenue perspective, it will take the shape more of a hockey stick than it will a ratable progression because of that. Some of the specifics, I'll let Tim- Yeah, sure. Let me just stop by saying I agree with you, Matt, highway robbery for Florida State. The, you know, when, when I look at, the impact on customers for, for digital, and you, you asked a question there about what it would cost to use our platform. We are currently charging today for a number of our digital tools. We're not currently charging for the myBLDR.com platform, but for the Home Configure tools that are embedded in there, we are charging $499 per home plan to, to model the exterior of the home, $999 for the, for the exterior, plus Spotlight rooms on the interior. Then there are other packages that go beyond, that, that go beyond that. With that being said, as we go from our MVP that we launched in January, our minimum viable product that we launched, to full product launch, we do believe that we'll have opportunities to collect on our digital tool, on myBLDR.com. And the way I look at that, for example, is when we released the initial MVP, the initial product, we were not charging for scheduling, but now we're about to move towards intelligent scheduling, which is a far better product to create value for our home builder customers. As we add on those enhancements, is it $50 per month? We'll see what the market will bear, but we absolutely have the opportunity to charge. One other thing I will say is we do have a customer advisory group that we're working with on digital, and at the last customer advisory meeting that we had, one of the customers that's deploying myBLDR currently on a pilot basis, said: "Why aren't you charging for this?" Right? Indicating that it is creating value. And what he asked was at the next meeting that we have coming up, that we have that discussion about how much value it creates for home builders and come together on how BFS should proceed with billing customers for the platform. Mike Dahl, RBC Capital Markets. I wanna stick with digital and maybe to follow up on, on that. In terms of how you're determining the pricing and, and also communicating the digital opportunity, in the slide deck, it very specifically talks about $1 billion in incremental product revenue. So is that physical product in terms of the materials, is that inclusive of these separate charges? And in terms of the separate charges, when you're contemplating the $499 or $1,800 for a core plan, is that priced to cover your own investments, or is that also being priced to, to give you additional margin as well? So from the financial modeling perspective, the vast majority of that $1 billion, not all of it, but the vast majority of it, 90%+, is simply the pull-through of core BFS products that we're confident were gonna be stickier with customers, we'll be able to have incremental share of wallet and new customers, right? So that's, that's kind of the core. There is certainly an incremental value proposition, as Tim was pointing out, with a profit margin associated with it. There's an incremental cost, for example, to create a rendering or to do an optimize, and so there's a profitability associated with that as well. As it rolls out, again, this is all about adoption right now. We've built it, we're waiting for them to come. There's a tremendous amount of value that comes as that utilization continues to increase, and we have a variety of financial models aligned around it, but for the $1 billion, it's 90+, 95%+, just the pull-through of what we do today. Yeah. Yeah, he's first, and then Collin after. Thank you. Alex Rygiel with B. Riley. Congratulations on a very successful couple of years here- Thanks a lot. and good luck in the future. The market, the end market's been very volatile over the last couple of years, and commodity prices have been volatile over the last couple of years. So can you talk about how that's been a headwind or a tailwind, and how, if we transition into a steadier environment, how that might change? Well, yeah, it's definitely been a tailwind, right? I mean, that—the ability to generate a bunch of extra cash, and, I'll say it out loud for those of you who haven't heard us say it before: we make very good money and healthy profits when commodity prices are low. We do much better when commodity prices are high. So that's really the logic around our $400, 1,000 metric around base business, is to signal, "Look, we think there's a historical norm that, until proven otherwise, we'll use as the basis," and we do very, very well. But there's no question we make more money when the commodity prices are high. The only thing I'd add is, from my seat, I'm looking more at the long term, right? I'm wanting to understand long term, what puts us in the best position to win. And the thing that gets me there is that we are underbuilt, and the demand for housing is greater than the supply. If you can solve the affordability challenge, which is, you know, primarily driven a little bit by mortgage rates today, but we can still offset that by continuing to find more efficient ways for builders to build and get more competitive as a result. So for me, and how it impacts our strategies and how... I'm looking for the opportunity to help solve those problems, and long term, feel good about what we invest because of the demand, and the underbuilt situation that we're in today. Just to follow up, the deployable capital range of $5.5 billion-$8.5 billion over the next couple of years is, would be fantastic. Is there any increased leverage included in that range? And secondly, if your stock price was unattractive to repurchase, how else would you want to deploy that capital? ... start. So today we're between 1 and 2, so our range is 1-2 times base business. We're kind of in the middle now, hence the range we left in the share buyback. Yeah, that's where we left it. It's 1-2, is 5.5-8.5, so that's the way to think about that. We'll deploy it where it makes sense. We're going to continue to consider each one of the return profiles of those three categories that we laid out. You know, the share price based on where we're modeling and what we think the value is of our share price, not really a conversation about it being overvalued, candidly. We think we're materially undervalued. You know, could it happen someday? Let's revisit when that becomes evident. Collin Verron, Jefferies. I just want to go back to the digital sales target. Can you just talk about some of the assumptions you're making to arrive at that $1 billion, and what gives you confidence that you're going to get there? And then just on the rest of the share gains that you guys are modeling into your long-term targets, can you just talk about how much of that is driven by value add versus things like installation sales or other initiatives outside of just digital? You take the digital piece and how- Yeah, sure. We built that model. Yeah, in building out that model, so again, we believe that we will grow with existing customers as well as new customers. As it relates to existing customers, when we started down this path of creating the digital business case a couple years, a few years back now, we were looking at a situation where the average value per start, all the products that BFS sells, was in that range of $40,000-$45,000. That's changed over that time. But at the point when we looked at that point, when we looked at an average start value of what we were selling into that start, it was roughly $28,000, right? So our ability to be easier to work with to drive a digital solution allows us to close that gap and sell more product categories to, to the home builder within a project. So the assumption would be, if we're selling them lumber and truss today, can we add on windows? Can we add on siding? So that's how we get to that growth with, with interior... I'm sorry, with existing customers related to, to wallet share. The other part of that is, if we are easier to work with, if we're getting 60% of a customer starts today, can that move to 70? Can it move to 80? Can it move to 90? Absolutely. And then, of course, when you think about a customer that we're not doing business with today, that's looking to improve their business through the use of technology, then for every start that they bring to you, you're getting the whole benefit of that, of that product sale opportunity. And I'd just add, as far as it relates to what we do today, value add and otherwise, install. I mean, our field leaders have, you know, they know what levers that they have available for them to pull, and where there is opportunity, we certainly trust their judgment on, "This is where we should pull this lever." So we don't really break it out the way you suggest. We kind of look at growing above market outside of digital in one kind of bucket. Yeah, very market driven, in terms of how we look at it. Steven Ramsey, Thompson Research Group. A couple of topics on outpacing market growth by 150 bips. First, can you do the 150 bips or $2 billion additive if the housing market is weaker than 1.1 million starts? And secondly, the $1 billion digital opportunity, is that baked into the market outperformance bar? I got this one. Yes and yes. The short answer is we have clear line of sight, right? We can see where the opportunities are, both on the digital side, based on the breakdown that Tim has, our build-out schedule, sort of the release schedule and how he's going to run it through the country. But we also have that share gain locked down by primarily categories and opportunities where we know we can attack at the market level. Most of the time, the market is going to be there, whether it's 5% or 10% higher or lower. That doesn't fundamentally change what we think we can deliver in terms of needs for core products and our value proposition versus what the market is able to do today. So we do feel confident in our ability to gain share, regardless. You know, the only thing I'd say over the top is the macro is the macro. We can't control that, nor do we worry about it, because we can't control that. But we're 100% confident in our ability to grow against our competitors, given the hand that we're dealt. Thanks, guys. Reuben Garner with The Benchmark Company. If I'm doing the math right here, it looks like the implied organic EBITDA contribution margin is close to 20% at the midpoint. I think that's probably higher than you would have talked about it a handful of years ago. Can you just talk about what gives you confidence? Is that just even more of the growth coming from the value-added pieces? Is it, is it the higher scale that you have today? What, what other drivers are behind that, that level of, of margin? Yeah, I mean, you hit it on the incremental, the faster-than-market growth of that value add category, the emphasis that we're putting on it. But don't forget, it's got the continuous improvement layered on top as well, right? So that's pure EBITDA when you're thinking about it from a sales perspective. Keith Hughes from Truist. Specifically on, I guess we're still calling it Paradigm, when it fully launches, it sounds like next month, will the customers be able to design the homes, come up with a spec list, get the pricing on at least the products you sell, and then submit an order, I guess, out of that? That's all live January- Yep. Is that correct? Yeah, that's correct. And with that, I just want to make the point that we are going to market as Builders FirstSource digital tools- Okay. -powered by Paradigm, okay? So Paradigm means our brand and how we run the legacy, what we call manufacturer distribution retail business, providing configuration, quoting, and manufacturing solutions for window and door manufacturers. So running the company as two separate businesses, okay? I just want to make that point. I'm sorry. As we go live, as full product launch takes hold here at the end of the year, and as we introduce that through the digital roadshows that are ongoing, and at IBS, at the International Builders' Show at the end of February, the capabilities that you're seeing, the ability to take in a plan, the ability to configure that plan in a 3D model, the ability to request an estimate, to see the bids, I'm sorry, to receive your bids, to purchase the material through the platform, and to do the job scheduling and budgeting, all of that is included in the full product launch. Also, the visualization, like you showed- Yep. - at least on the Builders FirstSource products, change on the siding from one color, that's part of it. That's correct. Okay, thank you. Yeah. We've got one last question. Great. Thanks. Rafe Jadrosich, analyst at Bank of America. You highlighted the value add mix is up 6 points since the last analyst day. Can you talk about how margins have trended in value add? I think you outlined 45% productivity gains in trusses in the last couple of years. So the question is: How have value add margins changed over time? What is the outlook going forward? And then can you just quantify some of the automation benefits that are embedded in that 2026 target? So, we won't break down the component attributable to purely the automation, but I would say that it's clear to see, even within our own numbers, the accumulating benefit of the operational improvement and the investments we're making. So, you know, we had historically talked about it, it being meaningfully better, you know, 800-1,000 basis points better than commodities. It's grown, and a lot of that is internal work, right? A lot of that is, you know, implementing the new automation, putting in, performance reward programs at the local level, even realigning facilities and coordinating better amongst our organization. We've also seen a market, and, and Dave alluded to it a little bit on the install story, around how install has become a more viable product category because labor availabilities continue to be constrained, and in some ways, gotten even worse. We've seen that same dynamic on the sort of the impact of a proven value proposition in the form of our value-added products that's continuing to play out. You know, that 45% productivity improvement in board foot per labor hour in truss since the BMC merger, that's a sustainable growth and one that is absolutely expanded that performance versus traditional commodity type product. All right. With that, the webcast is concluded. A couple housekeeping items. For those of you going on the tour, please grab your personal belongings and a boxed lunch. If you are deciding to not go on the tour, also, please let the help desk out there know, so that way, we can make sure we don't wait for you. 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