This report does not constitute a rating action. Kodiak Building Partner?s debt leverage is elevated, with debt to EBITDA slightly over 5x for the year ended Dec. 31, 2024. This compares with 2.4x for the same period the previous year. The increase was due to higher balance sheet debt (120% higher) used to fund $149 million of acquisitions and $890 million of dividends. At the same time, the company?s S&P Global Ratings-adjusted EBITDA declined a little over 9% because of lower residential (single family and multifamily) construction demand; higher selling, general and administrative expenses; and commodity price deflation. S&P Global expects U.S. economic growth to slow (1.9% growth in 2025 from 2.8% in 2024). Residential construction could remain flat to
