We expect revenues and earnings to grow 5%-6% over 2024-2025 as macroeconomic conditions improve. Approximately 80% of Beacon?s revenue is tied to the re-roofing market. S&P Global Ratings expects repair and remodel (R&R) demand to grow low-single-digit percent in 2024 while residential construction increases 3.8% in 2024, a significant improvement from the 10.6% decline in 2023. We view demand for roof replacement to be nondiscretionary and, therefore, less prone to cyclicality from economic and housing cycles. We believe the company?s recent organic performance has been more benign than previously expected with 4.6% organic net sales growth year-over-year in the first half of the year. The company?s acquisition volume further supplements earnings growth. Our long-term leverage tolerance for the company remains
