Greg Burns: Okay. And then on the – in the office market on the contract side of the business, are you seeing – how are your conversations going with the customers there? Are you seeing any pickup in intent or activity there relative to maybe project pipeline, or just the conversations in general that you’re having with those customers? Are you getting a sense that maybe, they might be more intent to spend on upgrading their offices, or anything there that might get that market – that part of the market moving ahead?
Jeff Lorenger: Yes. Look, that’s – we are seeing it stabilize a bit, and we’re seeing some positive signs for improvement there, Greg. I think it’s still choppy. However, small project business has strengthened. Pre-order metrics are encouraging, particularly with small projects, which would suggest people are starting to do, not just day-to-day stuff, but some refreshes. I will say, as an aside, we see strength in education and state and local healthcare and hospitality, those sub-segments we have exposure to are all — we’re showing strength. The other thing that I think we’re kind of. We have our eye on and we’re talking to customers about is this whole leasing dynamic with – I know there’s a lot of speculation out there, on the CRE side of things.
But we really are looking at furniture events. And what’s been happening is a lot of people have been kicking the can. And I think owners have been open to letting people kick the can, but that’s kind of stopping now and people are having to pull a trigger. And it’s whether it’s moving from a B or C to an A space, it’s a furniture event. So, we believe in the mid-term that is going to start to generate more demand in that contract space as well. Because – and that plays to our strength, and it plays to a positive outlook in that space, albeit, it will be a slow grind to be my guess. But I do believe that’s going to start to unlock some demand in that space.
Greg Burns: Okay, great. Thank you.
Operator: Your next question is from the line of Steven Ramsey with Thompson Research Group. Please go ahead.
Steven Ramsey: Hi, good morning. I wanted to continue that line of thought. You’ve got similar dynamics with leasing in the workplace side and then existing home sales slowing down repair and remodel. So maybe to focus on the existing home sales, how does that impact resi building product demand, for you guys historically? Or maybe how you see it shaping up in the near term?
Jeff Lorenger: Yes. That’s a good question. I think, look, we – it’s a similar dynamic. You are right. People remodel kind of once they move. But – so that is definitely having an impact on some of the R&R business. So I think we continue to look at that space. We see upside there as things will start to unlock down the road, but it clearly has an impact. Now we have a lot of efforts focused on that space as well to drive activity. We’ve got some efforts in the area of digital campaigns, to drive awareness of what’s possible with some of our inserts. And exploring possibilities of replacement for people, who decided maybe to stay in place, because they can’t find a home. So, we’re working leverage that way as well.
Steven Ramsey: Okay. That’s helpful. And then thinking about residential product margin target at the high teens, combined with the growth you expect this year that does seem to imply more dollars of investment into that segment for growth, yet some natural constraints on R&R as you just talked about. Curious where the investment dollars are going aside from campaigns and if that’s leaning more to gaining share in new construction, or if it’s driving R&R amidst the slow back drop?
Jeff Lorenger: It’s some of both. I mean we’re investing in product platforms, updating product platforms, modernizing product platforms. We’ve got investments in the electric category, all in addition to consumer awareness, homeowner, homebuyer awareness, relative to the digital efforts that we have ongoing.
Steven Ramsey: Okay. Assuming the workplace environment of the second half stays, I guess you’re saying SMB keeps outperforming contract to the same degree? Or is their potential that it closes the gap or widens further?
Jeff Lorenger: Look, I mean that’s – our best guess at this point, is it will continue to outperform, by several percentage points. I don’t have a reason to think it’s going to accelerate, or decelerate. I think it probably kind of maintains its – our best assumption at this point, is just going to maintain what it’s been doing the last 12 months.
Steven Ramsey: Okay. That’s helpful. Thank you.
Jeff Lorenger: Thanks.
Operator: Your next question is from the line of Budd Bugatch with Water Tower Research. Please go ahead.
Budd Bugatch: Good morning and thank you for taking my questions. And congratulations on an outstanding quarter. I guess the question I have is we’ve come from an out of a couple of years of really unusual events and that impacted the typical seasonality, of your earnings and revenues. Are we back to a period where we see the normal kind of earnings seasonality where it mostly gets one-third in the first half and second two-thirds in the second half? How do you see that, Marshall?
Marshall Bridges: Yes. But we absolutely believe we’re back to the normal seasonality. I think the acquisition aside, we were there in 2023, but 2020 through 2022 we had have normal seasonality. So any time you’re comparing against those years, there’s some noise. But we’re back to being clean now, both 2023 and 2024 should follow the normal seasonal pattern, as you said, roughly 30% of the profit in the first half, 70% in the back half kind of range.
