Matthew Osberg: No. I think you’re right, Brent. I mean, obviously, we’d like to be able to invest more in growth initiatives. We — like Ty said, we’ve made some investments in growth, both in fiscal ’24 as we invested in some capacity for LSO that should come online this year. And as Ty mentioned, expanding some of our services capabilities to help them continue to move west and like Ty said, we’re very active in the M&A market, and we’d love to find an opportunity to invest there. So we’re looking to try and make some investments that are going to help put us in a good path from a growth perspective and that would definitely add some leverage and we’d like to be able to do that with the right asset.
Ty Silberhorn: Yes. We’ve got — I mean, 16% ROIC. I mean, this business three years ago, it was at 7%, well below our cost of capital. So we’re looking for those investment opportunities to drive value for our shareholders and we do see those opportunities. So that’s the area of focus that we’re really going to drive the organization to. That’s not to say we’re going to take our eye off the ball in terms of managing our margin profile and generating cash. But especially with Fortify kind of cleaning up the last tail of some of the product offerings, we’re really in growth mode and that regardless of what the market is doing. . So both organic and acquisition wise, that has been the message to the team in the last couple of months as we stepped into fiscal ’25.
It’s go get growth, go outperform the market. So if the market does end up being down, we got to be down less or find a path to grow and as the market is up, we’ve got to find a path to outgrow that market. And so that is the message and the focus for the team for our fiscal ’25.
Operator: [Operator instructions] Our next question comes from the line of B.J. Cook from Singular Research.
B.J. Cook: You guys announced some higher pricing in Q4. Just wondering if there’s an indicator of some pricing power? Or is it more correlated to eliminating some lower-margin projects.
Matthew Osberg: Yes. I think some of the benefits we got in Q4, B.J were from some of the pricing initiatives that we put in place earlier in the year and as well as, especially in glass, the way we are trying to shift to higher value-add strategies. So just improving the mix and the price. We didn’t take any specific pricing actions in Q4. I think it is a carry forward of a lot of things that were put in place earlier in the year. And then as we looked at fiscal ’25, we do see some pressure coming in both glass and framing on volumes, and you will have to have some pressure on price probably as well. And that’s why we looked call down those two from a revenue perspective in fiscal ’25, so no new pricing initiatives that we put in place in Q4.
B.J. Cook: Got it. Thanks for the conservancy. Appreciate it. You mentioned expanding into some adjacent markets. I just wondered if you could talk a bit about your strategy, maybe that there’s any significant changes to what you guys are doing currently or any additional investment there?
Ty Silberhorn: Yes. I’d start on the immediate front is with large-scale optical with the new coder coming online later this year that will allow them to be more aggressive at pursuing some adjacent applications where they can leverage the coding capabilities that they have for both glass and acrylic for different market applications, that we see our ability to offer some really strong differentiated product offerings in those markets. So that’s not going to move the needle in fiscal ’25, but it will set us up as we go into fiscal ’26 and beyond, but we’ve got a nice healthy pipeline that they’re starting to build as they look at those adjacencies. And then we’ve talked about just trying to further diversify the building types in our project backlogs that the team has done, and we’ll continue to focus on that.
And then geographic, right, that becomes another avenue for us to further diversify and kind of strengthen our reach out west. And again, that can be organic or inorganic in how we approach that. And then certainly, as we look at our acquisition pipeline, we are looking at different products, materials that allow us to move into some adjacencies for our business as well that kind of expands our product portfolio, our service offering, but again, doing so in a way that’s accretive to our current and long-term margin goals as well.
Operator: One moment for our next question. Our next question comes from the line of Jon Braatz from KCCA.
Jon Braatz: Morning, everyone; Hi, a question regarding Project Fortify all the actions you’re taking and the things you’re doing, especially within the Architectural Framing segment, how will that — how will that — will you be able to level out the margins in that cycle in that segment across the cycle? What are some of the things you’re doing that, I guess, would help achieve that goal?
Ty Silberhorn: Well, thanks for the question, Jon. I’d say there’s a couple of things. So one, we’re being fully transparent. We had some products in there that we took a hard look at three years ago and decided to keep in the portfolio because we felt we saw a path that we would get it where we wanted it from a margin perspective, and we haven’t been able to achieve that. And I think that just demonstrates good leadership from our business teams to say yes, that path isn’t really there. And if the market softens, it makes it even more difficult. So let’s kind of peel that bandage off and move forward. That, for me, is kind of the last piece of what we had to do in the portfolio to kind of clean up where we want to be and put us on solid ground to kind of reset our margin floor.
