Matthew Osberg: And Julio, the only thing I would add to it is we really tried to call out in Q3 and in this quarter, services, in particular, has made improvements in their backlog and the mix of projects that we’ve been winning there has been very diverse, right? So I think that there’s obviously lots of stuff in that backlog. But I see, as we continue to focus on these segments of the market that are growing and helping us diversify. We’re seeing that show up in our more recent project wins.
Ty Silberhorn: I mean, again, we don’t share that a big reason as for competitive reasons. But as we’ve commented before, office, which was a huge part of our backlog reports across our businesses or our award mix three years ago is down significantly, and it was down again sequentially in the quarter and for this fiscal year compared to last fiscal year. Yet if you look at services, and that’s an easy one to point to, the backlog is actually up. So that for us is a positive signal. We’re getting the diversification and it still will allow us to grow the business, both in the medium and long term.
Julio Romero: Got it. Really helpful. And I appreciate the last comment, Ty, on office being down sequentially. I think that really helps us think about things. Maybe just the last one for me would be one of the things you talked about in terms of diversifying the end market mix is the geographic expansion in services. Can you just give us a quick update on how that’s progressing in terms of the Westwood expansion there?
Ty Silberhorn: Yes. So they continue to be very active on pursuing projects west of the Rockies. They have had — we talked last quarter, they had a nice win. There are some other things that came through in the current backlog. There was some addition of work out West as well. We’ll be making some investments kind of expanding an existing facility in the Texas market to help us create some additional capacity to supply that. And then one of the things we started working on is what do we want to do from a footprint perspective west of the Rockies, both for services and for framing. And when we look at those addressable building types, that’s one of the challenges we have with framing. I mean the Southwest and the West had some nice growth last year.
Our framing business really has difficulty reaching those markets without having a footprint out there. So, we have been working on building a plan that has kind of both an organic and inorganic. It’s either buy or build to get a footprint there or likely some combination of those two things to really look at how we can allow framing to truly play across all of North America, which today were — they’re pretty limited to east of the Rockies. And even when we look at Canada, they’re pretty limited to the greater Toronto area today with their footprint. So that’s an area we’re looking to make some additional investment in both, again, organic and inorganically.
Operator: One moment for our next question. Our next question comes from the line of Brent Thielman from D.A. Davidson.
Brent Thielman: Hey, good morning, guys. Hey, congrats on a great year. I guess first would just be, Ty, you have the slide in here around objectives to outgrow the market kind of moving forward. And I guess my question is just among the three categories that you have in the slide deck for to capture share focused on high-growth opportunities and investments, where is the low-hanging fruit in your view? And what do you think is going to be most impactful in terms of your ability to sort of accelerate growth regardless of market conditions?
Ty Silberhorn: Yes. It’s a great question, Brent. I would say as we see the market softening, I’d like to say there’s a lot of low-hanging fruit there, but I think it’s going to take good effort because, as you know, as the market softens, competition gets a little bit stiffer and tighter with respect to that. Now we have seen, like we commented on in the script, that we’ve seen services, they’re picking up some business and what we’re seeing, we believe, is maybe a little bit of a flight to quality to make sure that, okay, if I’m a developer contractor, and I’ve got a limited number of projects, I want to make sure they go really well. And so we’re seeing some signals of that that we think that plays well for, frankly, all of our businesses for glass services and framing.
So we’re digging to understand that better and how we might promote that more strongly. And that becomes a share gain opportunity for services and for framing in particular. So I think that’s the one area that we’re focused in that we potentially could see some short-term benefits with respect to that. I think really being able to reach more deeply geographically, that’s a bit more of a medium long term that’s going to take either or a combination of build, buy to get us the footprint that we can step into that and as we’ve talked about, a very active M&A pipeline. We were very active in the fiscal year. Even though the market for acquisitions has been relatively slow. You can see and read that data because of interest rates, because of private equity being a bit sidelined.
That doesn’t mean we didn’t engage and look at a number of opportunities, and we’ll continue to do that. But as part of that, we’re also being very diligent and strategic in our focus. So we want something that has a great strategic fit that we’re confident we can add value and generate more value owning that asset and that’s going to help us accomplish our financial goals, including our growth objectives over the long term.
Brent Thielman: Okay. That’s helpful. And then I guess with some indications that murkiness and corners of the market today. At the same time, you guys are looking to potentially deploy some capital. You’re clearly under-levered right now, but if you views around leverage changed at all as you continue to kind of monitor the macro picture and what you can see coming in the pipeline? .
