"We achieved 3% growth in pricing during the quarter, and we expect overall prices in 2026 to increase 2% to 3% for the full year," Doug Black continued. "Due to unfavorable weather, the Spring selling season started later this year than in 2025 and we have seen improved sales volume in April so far. In terms of end markets, we believe that the recent increase in macroeconomic uncertainty is negatively affecting the already weak new residential construction and the more resilient repair and upgrade end markets, more than offsetting maintenance growth and solid demand in new commercial construction. As a result, we believe that overall end market demand will be down modestly for the full year 2026. With the benefit of our commercial initiatives, we expect sales volume to be flat, yielding low single-digit Organic Daily Sales growth for the full year. We also expect to expand our Gross margin through increased price realization and strong growth with private label products and small customers. We expect to achieve SG&A leverage through our operational initiatives, which include focus branch improvements and delivery cost reduction. Overall, including contributions from acquisitions, we expect to continue expanding our Adjusted EBITDA margin in 2026."

In fiscal year 2026, our results will include an extra week compared to the prior year period. The extra week occurs in December of our fiscal fourth quarter during a historically slower sales period and, as a result, is expected to reduce Adjusted EBITDA for the year by approximately $4 million to $5 million.

With all these factors in mind and including the negative effect of the 53rd week, we continue to expect Adjusted EBITDA for fiscal year 2026 to be in the range of $425 million to $455 million. Our guidance does not include any contributions from unannounced acquisitions.