Good day, everyone, and welcome to Eagle Materials third quarter of fiscal 2023 earnings conference call. This call is being recorded. If you require operator assistance, please press star then zero. At this time, I would like to turn the call over to Eagle's President and Chief Executive Officer, Mr. Michael Haack. Mr. Haack, please go ahead, sir. Thank you, Drew. Good morning. Welcome to Eagle Materials conference call for our third quarter for fiscal 2023. This is Michael Haack. Joining me today are Craig Kesler, our Chief Financial Officer, and Bob Stewart, Executive Vice President of Strategy, Corporate Development, and Communications. We are glad you could be with us today. There will be a slide presentation made in connection with this call. To access it, please go to eaglematerials.com and click on the link to the webcast. While you're accessing the slides, please note that the first slide covers our cautionary disclosure regarding forward-looking statements made during this call. These statements are subject to risks and uncertainties that could cause results to differ from those discussed during the call. For further information, please refer to this disclosure, which is also included at the end of our press release. I wanna start my comments today by stating that this was a tremendous quarter for Eagle Materials financially, operationally and strategically. Financially, we achieved record revenues up 10% year-on-year, exceptional margins of 31%, EPS growth of 26%, which reflects the strength of our businesses and our continued pricing opportunities in every segment. This EPS growth also reflects our exceptional cash flows in exits of our operating, growth, and improvement needs. This enabled us to repurchase over $100 million in company shares this quarter, bringing our total cash return to shareholders over the last three years to nearly $1 billion. Operationally, we achieved the best safety performance in company history in terms of both recordable injury rate and lost time injury rate. This achievement is one that I'm most proud of as the result stems from years of focus from every employee at Eagle to ensure that we have a culture of protecting each other and caring for our fellow employees. We have consistently been well below industry averages on this metric, but this year we truly separated ourselves from our peers. I am proud of the Eagle team, the progress we have made, and want to personally thank everyone for their focus to achieve this result. We are also making progress across the board on our company's strategic priorities. One I would highlight today that I have also talked about in the past is an important environmental and operational priority for us, our rollout of Portland Limestone Cement or PLC. This priority enables us to make our scarce clinker go further in cement production, and it reduces our carbon intensity. Adaption and adoption are not immediate because there are operational investments and state DOT approvals needed. two quarters ago, I shared that almost 15% of our cement sales were PLC. I'm happy to state that approximately 30% of our construction-grade cement sold this quarter was PLC. This progress has given us confidence that we can make a full conversion to PLC for all construction grades by 2025. Very shortly, we'll be more formally updating our progress, goals, and long-term aspirations on this and other matters in our forthcoming updated environmental and social disclosure report. Let me turn to the coming year. I enter the year very optimistic about the prospects for Eagle Materials, notwithstanding some of the obvious uncertainties about the calendar 2023 macro backdrop. Current business conditions are exceptional and provide a foundation for this year. I can say that our record results this quarter would have been even better if we did not see exceptionally wet weather, particularly in December, across the entire Heartland network. As a reminder, wet weather does not imply demand destruction. It just means interruption and delay. Notwithstanding these temporary conditions, cement demand is strong, leaving us in a relatively sold-out position with virtually no opportunity to build an inventory position. On the light side of the business, our wall board operations remain busy. Current home construction activity remains robust. The number of multi-family units under construction, for example, is at the highest level since 1973. Of course, the key question today on many of our minds is around what the uncertainty in housing activity ahead will mean. Let me offer the following perspectives on these uncertainties. First, as I have stated before, geography matters. Our enviable U.S. Heartland system that we have built will serve us well in the coming years. Specifically for cement, it is hard to see a scenario where U.S. cement demand would decline for us over the midterm. This stems from the fact that state and federal allocations to fund infrastructure are well underway and give better visibility into the next three-year demand picture. There are a few cement substitutes existing today or on the horizon that would fundamentally change this picture over this timeframe. U.S. cement manufacturers will work to make their precious clinker go further and to be put to the highest and best use. These efforts will not add up to enough additional supply to alter the supply-demand fundamentals in front of us in the midterm. As the U.S. cement supply, I see very little that would materially change the supply tension in relation to demand for the U.S. Heartland. Barriers to capacity addition are very high for the U.S. cement industry, both in terms of permitting and construction cost. Even if this were not the case, no new builds or plant expansions could change this picture over the midterm time frame, even if the projects commenced tomorrow. High cost imports will increasingly be required to meet U.S. demand, as they have in the past. Again, for a well-positioned Heartland producer, imports, to one degree or another, will support pricing in the U.S. Heartland, as transportation is very expensive and is expected to remain so. Now let's turn the discussion to the uncertainties for the other half of our business, specifically gypsum wallboard. Gypsum wallboard is used in single and multifamily residential construction, repair and remodeling, and commercial construction. Most significant among these is residential construction. Mortgage rates are key in modulating demand. It is welcome to see that we are off the mortgage rate highs that we saw last quarter. I think Fed Chairman Powell may have expressed the uncertainty right now the best when he said, and I quote, "I don't think anyone knows whether we're going to have a recession or not, and if we do, whether it's going to be a deep one or not." Many economic scenarios imply a sizable and sustained gap between supply and demand for housing over the midterm, mainly driven by household growth and demolitions of older housing stock. The outlook for repair and remodel demand seems especially well supported with record homeowner equity by the average age of U.S. housing stock and by the number of single-family homes entering their prime remodeling years. With higher interest rates, homeowners may be inclined to stay put and improve their homes. The bottom line for light side demand is that there is cause for optimism for the midterm and the long term as it relates to housing construction activity. It is the near term where we see some obvious uncertainty around home buyer demand and home builder activity. If we turn to the gypsum wallboard supply side, we see limits to manufacturing supply response broadly in the industry due to raw material supply limitations. As we have emphasized before, we are insulated from the negative implications of this broad and important trend. We are in fact beneficiaries of it. As we own many decades of natural gypsum, and our one plant that uses synthetic gypsum has a secure and very long-term supply agreement. There is another aspect of the industry supply situation that is important to understand. History is instructive here. In 1998 through 2000 and in 2005 through 2006 time frames, we saw increasing pricing for gypsum wallboard. In both cases, shortly thereafter, we saw significant price deflation. In 2021 through 2022, we have again seen pricing progress, and it raises the question among observers about what is ahead for wallboard pricing at this time. In those prior periods, increasing demand was also met with significant industry capacity expansion, which culminated just as the market demand began waning. In the case of post-2005 and 2006, we in fact entered the longest and deepest housing construction recession in U.S. history as massive capacity was being added to take advantage of synthetic gypsum, which was believed at the time would be plentiful and cheap. This assumption about synthetic gypsum proved to be wrong for several reasons. One reason is the retirement of coal-fired power plants, which is continuing, and the other reason is the greater use among power plants of lower-cost natural gas, which does not need to be scrubbed, hence does not produce some synthetic gypsum. In recent years, we have not seen material capacity expansion. In fact, we have observed significant capacity constraints stemming from the ability to secure enough raw materials economically for a new plant or to expand the production of an existing plant. This is a key factor shaping the outlook that I think is unappreciated today. I should also add that for our wallboard businesses, we will benefit from some tailwinds we have not seen for a while, notably in the lower cost of natural gas and OCC inputs, both of which should provide some margin support. Regardless of what 2023 brings, I have confidence that Eagle Materials is positioned well to succeed. I believe this for the following reasons. First, we know how to navigate uncertainty. We have proved this by being one of the very few in our space that has navigated the longest and deepest construction recession in U.S. history and remained profitable every year. This is largely attributable to our low-cost producer positions, which are highly sustainable and from a competitive standpoint are arguably widening. Our pre-tax margins are in the vicinity of 25% for the enterprise, and the gap with the competition is widening. Second, our businesses are strong cash flow generators. Our strategic decision-making is heavily focused on making the best use of this cash. The third reason for my confidence, we are good capital allocators. We are highly committed to growth, but believe in growth in the core that meets our strategic and financial return criteria. We have tripled the size of the heavy side of our business in recent years, and as I commented earlier, returned nearly $1 billion to shareholders through share repurchases and dividends over the last three years. Our return on equity stands in the vicinity of 30% today and remains industry-leading. With that, let me turn it over to Craig for a financial review of our quarter. Great. Thank you, Michael. Third quarter revenue was a record $511 million, an increase of 10% from the prior year. Excluding the acquired business in northern Colorado, revenue was up 8%. The increase reflects higher cement and wallboard sales prices as well as increased wallboard sales volume. The strong fundamentals in both cement and wallboard contributed to record EPS during the quarter. Diluted earnings per share was $3.20, a 26% increase from the prior year. This increase also reflects our reduced share count resulting from our share repurchase program. Fully diluted shares were down 10% from the prior year and down nearly 30% from the peak in 2015. Turning now to segment performance. In our heavy materials sector, which includes our cement and concrete and aggregate segments, revenue increased 3%, reflecting higher cement sales prices and revenue from the acquired business in northern Colorado, partially offset by lower cement sales volume, resulting from difficult weather conditions and much lower inventory levels during this quarter. Cement prices increased 13% and sales volume were also down 13%. Operating earnings declined 11%, reflecting lower sales volume and higher costs, partially offset by higher cement prices. Moving to the light materials sector on the next slide. Revenue in our light materials sector increased 23%, driven by higher wallboard sales prices and sales volume. Operating earnings in the sector increased 51% to $95 million as higher net sales prices helped offset higher input prices. Looking now at our cash flow, which remains strong. As Michael highlighted in his remarks, we continue to generate very strong cash flow and allocate capital in a disciplined way. During the quarter, operating cash flow improved 7% to $180 million. Capital spending decreased from $28 million to $18 million. We also repurchased approximately 824,000 shares of our common stock for $103 million. Paid our quarterly dividend, returning a total of $113 million to shareholders during the quarter. Year to date, we have repurchased approximately 2.5 million shares or 6.5% of our outstanding. We currently have 8.3 million shares remaining under our current repurchase authorization. A look at our capital structure. At December 31st, 2022, our net debt-to-capital ratio was 47% and our net debt to EBITDA leverage ratio remained at 1.4 times. We ended the quarter with $61 million of cash on hand. Total committed liquidity at the end of the quarter was approximately $675 million, and we have no meaningful near-term debt maturities, providing us with substantial financial flexibility. Thank you for attending today's call. Drew will now move to the question and answer session. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Trey Grooms with Stephens. Please go ahead. Hey, good morning. Nice work in the quarter, especially given these weather headwinds. On that, you know, first on, you know, for cement, I guess, and the volume there in the quarter. You know, weather was obviously an issue and I think was pretty well expected. You know, Craig, you mentioned lower inventory as well. You know, can you help us understand how much impacted the quarter? How much was weather? Then, you know, will these lean inventory levels continue to impact your year-over-year volume going forward? Or, you know, with the lower volume in the quarter, were you able to build some inventory and maybe help mitigate that impact there as we move into the spring? Yeah. Good quarter or good question, Trey. Yeah, in terms of this quarter's, I think it's a pretty unique comparison, both in terms of weather patterns and inventory levels of where we were a year ago versus this year. If you recall, last winter really was late to start and allowed us to really sell through the entire month of December. Then this year, the weather pattern was a little different in December. We just didn't have near the inventory levels. I think just a unique comparison year-over-year for this quarter. I think we get back more into our typical cadence where volume growth is tough to come by as we are and remain sold out. I don't think you'll continue to see this type of variance in the sales volume as the inventory issue is kind of just a one quarter thing. Got it. Okay. That's super helpful. Thank you for that. Kinda still sticking with cement. You know, you guys have January price increases that have been in place now here in your cement markets, I guess, for a few weeks now. Is there any early read on, and maybe even directionally, on how those increases are going thus far? Yeah, Trey, this is Michael. You know, when you look at the supply-demand dynamics, you know, we have implemented double-digit price increases across our network. You know, we're still working through with some customers, but with the supply-demand dynamics, that's what we're expecting. Okay. Thanks a lot. I will pass it on. Appreciate taking the question. The next question comes from Brent Thielman with D.A. Davidson. Please go ahead. Hey, thanks. Good morning. Great quarter as well. Hey, Craig, the earnings contribution from the joint venture was pretty strong, I guess, really snapped back despite the headwind on volume. Is there anything in particular to point to there? Yeah, I think, look, as we said the last couple of quarters, we had some operational issues there that we believe we had turned the corner on. You know, when these businesses and the operations start to become more consistent, you see a turnaround pretty quick in terms of profitability. The operation has seemed to make that turn. Okay, great. I guess back to Trey's question, you know, realizing the supply-demand dynamics, I'm just curious, I mean, does this harsher winter sort of impede your ability to realize these sort of new year price increases in cement in the short term? I mean, how do you think about that? No. You know, when we look at it, you know, we went into the winter timeframe and the fall timeframe, you know, at very low inventory levels. You know, the weather really, as I said in my comments, just really delays the use of that product with it. We don't see any impact going forward for that winter weather issue with it. Supply and demand fundamentals will drive the business. Just one on wallboard. Michael, appreciate your, sort of, your comments around, you know, advantage cost structure, those sorts of things, all very valid. Have you seen any disruption, I don't know, idling of competing assets within your footprint, those that, you know, just can't be as cost competitive in this environment? I'm just wondering if you've seen any sort of, you know, changes in competitive dynamics around your markets you play in the wallboard business. No. When you look at, you know, how Eagle is structured, you know, we're not dependent on any third parties for our raw material supply. We're located in the Sun Belt regions. you know, I love where we're located. I love, you know, how we control our own cost structure with it. We don't have any plant that is disadvantaged in any way to compete in these markets. Okay. All right. Thank you. The next question comes from Anthony Pettinari with Citi. Please go ahead. Good morning. Good morning. On cement, it sounds like the, you know, the demand outlook is pretty positive, you know, getting past other issues. I'm just wondering, you know, understanding you don't always know where your cement is going, are you starting to see IIJA spending flow through to cement volumes, and are you seeing that maybe replace, you know, weaker residential activity? Just wondering for the end markets and that infrastructure impact. Yeah, Anthony, good question. you know, look, the infrastructure spending is supported in a couple of different ways. There, there's no doubt state spending has taken the bulk of the financing effort over the last several years, and that has continued to remain very robust in our markets. To your point, you have federal spending that is on top of that going forward. It's hard to parse out exactly what's funding an individual project sometimes, but anecdotally, you are starting to hear that those monies are starting to impact planning and individual projects. you know, that side of the business continues to do very well. I'll point out, we also continue to see recovery and strength in the private non-residential construction activity, especially in our markets, around some of these very large projects that are just starting to get underway. Okay, that's very helpful. Then just a quick one on the wallboard, paperboard side. I mean, the decline in OCC late last year was pretty dramatic, and I'm just wondering, you know, what you thought maybe drove that and the sustainability of that, and if you can just kinda remind us maybe the margin benefit that you could accrue from there and what the sort of lag is there? As you saw this quarter, the lag is pretty quick within the paper business itself. That contributed to a large majority of the improvement in the profitability in the paper business. It does take a quarter or two lag into the wallboard business. Yeah, what had been a headwind in what I'm gonna say, you know, calendar 2022, fiscal 2023, has certainly turned around from OCC prices as we look forward into calendar 2023 and our fiscal 2024. A lot of international reasons why OCC prices go up and down relates to generation and overseas purchases. You know, you know, the spike that we saw a year ago, you know, probably wasn't sustainable, and these are a little bit more normal levels. Okay, that's helpful. Turn it over. The next question comes from Jerry Revich with Goldman Sachs. Please go ahead. Yes. Hi, Hi, good morning, everyone. Good morning, Jerry. I'm wondering if you could just talk about cement margins. You know, when your footprint was smaller, you know, some 20 years ago, your folks were able to get that business up to 30% margins. I'm wondering, with the price increases that you have in place now, do you think you could approach that level of margin in this cycle? Yeah, Jerry, look, you know, I would say the acquisitions that we've made over the last decade or so and the improvements that we've continued to make in the network, whether that's from a distribution perspective or just operating efficiencies, I think we actually have a lower cost system today, than where we were, in prior cycles, in many different ways, again, logistically and operationally. At the end of the day, that's- And- That's what we can focus on, and that's how we can improve margins. Craig, maybe just to sharpen the pencil a little bit there. You spoke about the pricing actions you've taken. Can you talk about just the level of inflation that you're expecting in cement, just to put us into context for us, the level of margin expansion that's feasible in calendar 2023? You know, as we've been saying the last couple of quarters, we do continue to see some press, inflation pressure still around cement energy prices. In cement, that's generally solid fuels and electricity. We expect that to continue into fiscal 2024. Now the pricing that we have in place should more than offset that like we have done here in fiscal 2023. I think we'll continue to see some inflation around energy and cement. Okay. Super. You know, around the volume cadence, you know, to your point on whether your volumes were, you know, maybe 5 points lower sequentially than normal seasonality. You know, as we look at the current run rate, and running that through with normal seasonality in March and June, it does look like the business should still have shipments that are down in the high single-digit range year-over-year. I just wanna make sure there aren't any inventory moving pieces, et cetera, that might skew where that cadence is shaking out just based on normal seasonality off of, you know, the past six months of performance. Yeah, you know, Jerry, with one exception there, you know, we've talked a lot about this Portland Cement product that we've begun producing and selling out of our facilities. I think you'll continue to see that ramp up over this coming year, which should give us some incremental volume out of facilities. You're right, generally, the growth in sales volumes will be tough to come by given that we're continue to be in sold out conditions. We do have one lever to pull around PLC that might be able to offset some of that. Super. Appreciate the discussion. Thanks. The next question comes from Stanley Elliott with Stifel. Please go ahead. Hey, good morning, everybody. Thank you guys for taking the question. This past year, a lot of cement markets were on allocation. I mean, do you guys think we're gonna see a similar sort of dynamic in calendar 2023? You know, you mentioned being sold out, but just curious kind of what you're seeing high level, high level there. You know, it's a great question. You know, how the supply and demand is currently right now, I think we're gonna be going into this next year very similar to last year, where we will be. You know, our key is to keep our plants running and get as much out of each plant as we can because the demand is there. There will probably be some allocations later in the year, as long as this demand profile maintains, which we think is gonna maintain this year. Could you talk a little bit about what's happening or what you're seeing in the M&A marketplace right now, and maybe kind of the bias of pursuing some, you know, an acquisition versus buying back your shares here at these levels? Yeah. You know, we look at everything as we say. You know, we are also very disciplined in what we will buy, how it fits into our network. You could see during the past quarters where we have done transactions, where we've extended our distribution footprint, you know, it's right now, you know, we would look at anything that comes to the market. It's just, you know, when businesses are in sold out positions, there's not as much on the market. You could see where we pivoted to the logistics side, like I said, with the Nashville acquisition. We bought, you know, aggregates positions in the Denver market. You know, those are things we look at continuously, and we will continue to look at anything that comes to the market that makes sense for Eagle. It just has to meet our strategic criteria. Perfect, guys. Thank you very much, and best of luck. The next question comes from Adam Thalhimer with Thompson Davis & Co. Please go ahead. Hey, good morning, guys. Hey, Craig, I wanted to follow up on something, I think you said it, about non-res, and particularly like large project, large non-res projects. Are you seeing that in specific regions or are you seeing that everywhere? Yeah, pretty broad-based, Adam. You know, whether it's the semiconductor facilities, the battery facilities, you know, it's those types of very large, you know, onshoring of manufacturing, that we've seen in our markets, and again, pretty broad-based. Michael, you made some comments about the lack of new capacity entering the wallboard market going into this little bit of a soft patch. What, what's the implication of that? Do you actually see pricing Even if volumes decline a little bit, do you see pricing kind of staying flattish? You know, when you look at everything, it's all on the supply and demand criteria with it. When you know, when, you know, one of the inputs into that is how much board is going into the market. I know, you know, there's been debates both with analysts and us when we look at different markets on what the capacity of the wallboard industry is today with it. We just don't see. You know, in previous years, or previous cycles, I should say, not years, we have seen where, you know, there's been capacity expansion added, and we are not seeing that capacity expansion added. We also have a wallboard industry that's much different today than it was in the past with a lot of consolidation that happened since the last cycle with it. You know, I do see a different animal this time than in previous cycles. Then, lastly, your wallboard costs per unit went down a little bit sequentially in Q3. Do you think that trend can continue with gas prices coming down? Yeah. Very observant, Adam. Yes. Yeah, on a sequential basis, you know, we did see energy prices come down, and that was a good sign. You know, natural gas has certainly been under pressure here the last couple of months, and more importantly, here the last few weeks. Look, I'd also tell you, at a freight level, we saw freight tick down just slightly. That doesn't happen very often. Yeah, we saw again some of those what had been headwinds this year, starting to turn around. Okay. Thanks, guys. Perfect. The next question comes from Philip Ng with Jefferies. Please go ahead. Hey, guys. Well, Michael, it's great to hear that in the medium term, you don't expect volumes to be down in cement. Any color on how to think about wallboard in the near term, call it calendar year 2023, just given the tougher housing backdrop? You know, at least what we're hearing is maybe backlogs will carry the industry through the early parts of the calendar year. Any color on your end, how you're thinking about the shape of the year in terms of wallboard demand? Yeah. Phil, it's a great question. You know, when I look at it in my comments, you know, I'll point to some things in the comment is, you know, we're monitoring the near term very closely. You know, as said, you know, we have a great foundation going into this year with it. You know, demand has been consistently strong with it. However, we do monitor, as you guys do, you know, housing starts, everything else with it. Our concern more is around the near term than the midterm or the long term. Right now, you know, demand is strong, and we're gonna be positioning the company that if that does change, we could react quickly to that. Right now, you know, we are producing what we can produce for the near-term demand, and then we'll see where the market takes us. On that note, Michael, you guys have some of the lowest cost wallboard facilities out there. If you guys had to pivot on the cost side, what are some of the things you can do just given your low cost profile already? How we run all of our facilities, you know, we monitor each of the facilities. We know which ones, you know, which market it is with it. We've been very flexible with wallboard is not a very cost-intensive input business. You know, we've been able to modulate with demand just by shift structures and everything to be able to satisfy that and not add a significant cost to the operation with it. We watch that closely for each of the markets each of our plants serve, and then we modulate as needed. Right now, where I won't leave you is, you know, demand has been strong. We're prepared for those if those happen, but we haven't implemented those. Gotcha. Just one last quick one for me. Craig, on the energy front, help us think through the step up, I guess, for calendar 2023, because you're hedged a bit on nat gas and in solid fuel prices, I think, for cement. I think there you have the ability to kinda hold on to prices for a full year, but I think it starts resetting fairly soon. Just give us a little color on how you're set up currently. Yeah. For fiscal 2024 on the cement side, for solid fuels, most of our prices are effectively locked in for the year, albeit at higher prices than where we were this past year. We have a good hedge position within for natural gas, again, which is more within the paper and wallboard segments. You know, but we're not overly hedged, so we are enjoying some of these lower prices and expect to continue to enjoy them at these lower levels. Any color on how hedged you are for nat gas? It's around 30% or so, as we go into fiscal 2024. Okay, great. Thank you, guys. Appreciate it. The next question comes from Tyler Brown with Raymond James. Please go ahead. Hey, good morning, guys. Morning. Hey, couple of questions on the wallboard side, but I gotta go back to the wallboard margins. Can you just help us maybe parse a little more specifically the impact of OCC on that 400 basis points, maybe what% of your costs are paper and wallboard? Given the OCC prices remain pretty low, and I know there's a lag, could we see even more help as we kind of move into fiscal Q4? Yeah. In terms of the lower OCC prices, they really didn't have much of an impact on the wallboard business. As I said, it manifests itself first within the paper business as they're purchasing on a daily basis. The shift to the pricing to the ultimate wallboard business happens over a one-two quarter lag. That margin improvement that we saw this quarter didn't really have much to do with OCC. That is still yet to come for the wallboard business. Okay. That's super helpful. I don't wanna be super near-term focused, and I think there's some questions out there wanting to talk about wallboard volume. Just any color on how January is tracking? I mean, are volumes still positive? It just seems like if you use normal seasonality, wallboard volumes could be down year-over-year in Q4. Just any color there? Yeah, look, I think as we said, I think Michael's comments are orders and shipments have remained steady during the quarter and even here into a little bit early January. As Michael's been saying, we haven't seen, you know, any change in that. Okay. Just my last one here, just big picture question. It kind of comes again back to this idea around wallboard margins more in the intermediate term. Doesn't the outlook look pretty good there? I mean, one, you've still got the OCC benefit kind of on the come. They're saying what looks to be kind of lower for longer. Two, freight rates have peaked in the near term. In my view, they're gonna be deflationary in 23. Three, diesel and gas prices are both fading. Four, I think labor starts to disinflate as the year goes on. I mean, doesn't that lend itself to durability around margins at a minimum or an ability to, I guess, at a minimum at least absorb any pricing weakness that may be on the horizon in wallboard? Yeah, look, Tyler, I think you pointed out some very good positive trends for the industry and for us. I would add to that, just again, for our unique position and the surety around supply of gypsum that we have. Many of these things that you were mentioning were macro or more general ideas. As it relates to Eagle, yeah, there's that surety of supply at a reasonable cost for us. Yeah, we think our wallboard business is very well positioned. Yeah, perfect. Okay, thanks guys. Next question comes from Keith Hughes with Truist. Please go ahead. Thank you. Most of my question's been asked. One quick one on wallboard. What are you hearing from your distributor customers on how they feel about their inventory positions heading into this season? Any kind of indications, light, heavy, just directional commentary would be great. You know, Keith, at the end of the day, there's really not a lot of inventory in the channel. Wallboard's a perishable product, so it degrades if it's kept outside. So, you know. Y ou're talking about weeks. I, you know. It's always hard this time of year. You exited the holidays and, you know, into January, where you can have weather disruptions. I don't know that that's much of an issue. Okay. Secondly, on cement, and particularly in the JV, the amount of tons has come down the last couple of years. I know you've got the issues we discussed earlier, in the last couple of quarters. Longer term, is there any reason it wouldn't get back to the kind of tons we saw a couple years ago, particularly given the tight market in Texas you've been discussing? Well, yeah, Keith, you know, we need to look at that in two different lenses on that. For our manufacturing tons, we've been sold out consistently, and we've talked about some of the operational problems we've had that we think are behind us. The operational side and the manufacturing tons would be there. We also had a larger side that was a procured material that we were moving. That side has dried up, so the growth tonnage on the procured side where we were buying and reselling will be more consistent with where it's been over this past year. Okay, that's helpful. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Michael Haack for any closing remarks. Thank you, Drew. We appreciate everybody calling in today, and we'll look forward to talking to you at our next call. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.