Tear Sheet: TAMKO Building Products LLC

TAMKO Building Products LLC recently reported third quarter results broadly in line with S&P Global Ratings? expectations. TAMKO continues to benefit from higher sales volumes and price realizations due to nondiscretionary roof replacements. In addition, S&P Global economists updated their macroeconomic forecasts for the fourth quarter, further benefiting estimates for 2023. We view the impact of increased sales volumes and our updated macroeconomic forecast as relatively minor but enough to show a slight improvement in credit quality. However, we expect these volume and pricing trends to moderate overall revenue in 2024, despite generating EBITDA margins in the 21% area through 2024 (compared to our previous forecasts of no higher than 18%). In addition, we now expect S&P Global Ratings-adjusted net

...Foreign currency issuer credit rating ##-/Stable/-- Local currency issuer credit rating ##-/Stable/-- Business risk Fair Country risk Very Low Industry risk Intermediate Competitive position Fair Financial risk Significant Cash flow/leverage Significant Anchor ## Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Negative (-1 notch) Liquidity Adequate (no impact) Management and governance Fair (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ##-...

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