Brian. you, Thank
Before of that precipice we are on be as was moment think the a Rather, I recession driven specifics not to of predominantly our outlook, jumping to many the Because the the today's is into environment. current memory will it my we I'd are, a XXXX of operating us factors. see disruption. similarity in three characterize the first take of first like interrelated recession, environment the demand result as of by
uncertainty, particularly levels of exceptional cost trends. First, on
our that chain inserts and process. together, the conditions mettle of landscape isolation, than the it when responsive shifting less perilous to originally challenges that really Each and would our and more additional planning But And third, a supply carry leadership in into thought. created a planning is that certainly cycle fragile our improved unparalleled of these volatility considerable tested team. taken geopolitical and system. Second,
So said and We've the underlying reiterating, believe them the reality plan scenario it's before, posture, conservative, you'll by hear inverters today, portfolio result our sound the our which That XXXX for what are is for reflect resiliency if of sheet our worth of strengthen realistic, but said, to together today underappreciated as strategic underpinned and our this managerial we of sight not is we the but scenarios, planning, always, plan. shouldn't as see assumptions. downside also our economic profitability was approach moves plan or enhanced lose execution, improve our company. and the balance with how to we
well on prices, conversations as the mid-XXXX, housing target XX end inevitably in the an is embracing single outlook the turn residential demand as important intended, that in starting of to residential. market, the With as a sector. an decline Beginning of By context, in for the Slide not our enlarge, substantial, restrictive recalibration observations functioning for family slowdown let's supply more we've selling with housing ongoing as by market consequence, on policies well as market witnessed the amount equation. orderly as in the a our we have Thus an both with and customers far as although supply pullback a Feds is as in uniform permits, there side indicates uptick the an and and market. would
And see Summit market at our moderating adjusted activity activity, near edge bid Having family certain it's by how single successful, are projects. and been said we've while a public At shifting demand that, for increasing all on our term mix, be much volumes albeit can non-res a we still pace. shifted. we've limitations to there construction
been hand, have affordability challenge declining. by Looking as a beyond visibility's mix clouded data and one points. of stretch frankly the it's next rents On remains a few months, a however,
hand, moved sentiment popped. and mortgage have peak On mortgage have off applications have rates may increased levels, other the interest homebuilder
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way design we half second know more until for both visibility, better the shape until outlook gather we activity. up we material another Ultimately, includes our residential Set XXXX data. how will and
our more these outlook And prudent and decline XXXX. activity So at in are forecasts. with And what industry the residential XX% consistent to common factored and decline is approach volumes latest market XXXX. in in generally terms, is we today's expecting for its for that's protracted residential
taken can changed in responding benefit has economic the stance long migration especially in with Houston long planning which housing activity, both not the markets markets, are overall residential underlying shortages in our does however, top our but year for to supply, Salt backup to experienced in from residential Lake In the trends, residential term viewpoint on that agility a strong our This run. each bullishness growth residential, weakness end growth shifting and over two in have conditions to and short by we of healthy support near City, volumes resolute remain cautious bullishness term.
for XX, and growth diverge Slide to we're light and on non-residential to Shifting is trends verticals. between what expecting here heavy
the efforts creating Construction to chain supporting lower spending to private grew in and the runway a to Bill trend well Reduction we expect On combat overall heavy critical persist tailwinds Chips secular public chain. of only the legislation, a the side improve energy onshore scarcity is in for Act a long parts full is non-residential to supply our and view our by in as investment manufacturing, bolstered as Inflation XXXX, value heavy competitiveness. XX% timeline manufacturing strong as momentum And domestic live in provide such the and U.S. markets.
high and that underway large Louisiana, Heading to scale LNG active into might several warehousing food a up have to of bonds manufacturing, non-res for our Carolina, confidence XXXX, in heavy and of From XXXX, battery in in we in because the step we North comes manufacturing in degree item levels see steep our projects healthy factories a will Georgia, that emerging experience and project lease are markets after Midwest footprint. growth projects showing activity. EV
and Light follows education Light is hospitality hand, face retail be the the on facilities more development. likely challenges year. build of residential other to behind tends this non-res new non-residential to that
expect slowdown roughly interest offset way balance, high from the such XXXX. environment a light flat non- the non-res non-residential rate will heavy on XXXX. in to in residential non-residential a as this, that expect to and is activity the residential we expectation be Our that Despite growth the result with applied along slowdown of we
last for year see question Lastly, state therefore, high public where no that the DoT's this there's for sand on growth XXXX. awards have the will both year. growth that The infrastructure look the To public of we encouraging markets ahead. general highway we our at and the conviction question, funds. trends in of in we Slide And around magnitude And XX. very surrounding degree the instances, direction questionably a consensus contributors on year to strongest fiscal is the be in It [ph].
increase contracts the half. the did they award looking in contract value substantially First year, and second awards at highway materially only not accelerated last XXXX,
up XX-month values growth and set in lists DoT's as and increased we robust put July highway that by signal XXXX work. last of trajectory upward XX% Utah, that around that And reinforced on paving confidence nearly Starting momentum our states you budgets is we state continued year, when through award aside topped. XXXX. assembled to five typically This trailing public broadly award us top contract the project for remainder year their awards such and they've increased less have dollarsto saw competence XX% where move do to DoT and That the work.
Kansas, Our their increased average DoT is top states, XX% in which five Utah, has XXXX. Missouri budgets in by fiscal Texas, on in Virginia,
Similarly, our strong funding growing some of East growth is of states. in In region. fastest our expected levels DoT
Georgia example, federal in instances, For Jobs the Carolinas IITA. funding and budget Act. increased some infrastructure most incorporate additional investment reflect fiscal budgets may not Utah, increase under and budgets the on In fully like federal the investments will But current XX% from cases, average XXXX. these nearly in the
environment DoT a step point up very deep [ph] budgets to and in state infrastructure Regardless to XXXX. public
flow fees in probable we the mid-single acceleration With in, second with consistent half expect with All and further be the catalyzed public strongest tailwind digits private XXXX. IITA to in by through. construction clients XXXX,
easing. cost tougher cost XX. we demand off the signs any on yet turn of inflation, cost Having Coming picture, the double-digit of aren't Slide year to expectations plan, price meaningful let's seeing
expectations. for that will case stance constraints chain on to need as focused an So controlling proves and our represent XXXX supply price and to And overly base can be both ongoing conservative, inflation scenario, we our operational remain that if excellence. is control upside what to and for planning we on remain With for elevated on XXXX. calls
mentioned X, XXXX combine where we're Brian philosophy XXXX, across XXXX. spearheaded half ahead in excellence. we to with pricing and As tremendous pressing January earlier, And as of gains business improvement aggregates first operationally well exit on actions when centers widespread deliver the from particularly we've continuous you that, positioned cement, pricing of of in projects pricing actions. our particularly spent and with And to the significant each by line implemented our are for
projects year. And yet bottom incentive We dollars have and we've the our focus input on line chopped revised near certain not XXXX. eased expect we That behaviors been are intentionally in to reward to front. challenged win this expect chain results this internal to pressures said, supply structure these costs and term remain
points materials, and include Specifically, the edge labor as as these. includes energy pain our well of which portion costs, mainly cement,
land On on a balance, in that such improve in the a adjusted anticipate picture in year the we year cost we basis, full to and that we positive margins do year price XXXX grow ahead. territory EBITDA
on pull XX. Slide everything Let's together
even exclusively million due to down following For expect in on the be to $XXX framework, justice first, come to $XXX residential, the this the based we and expect million we would XXXX, volume between year. slowdown organic in
cost we spend a and continue flat we net discretionary Second, such to our be that hold, as G&A continue this positive we spend will efforts expect third, year. take operational to of market returns conditions manage excellence put to essentially commercial with to expect relationship. And price
And that are plan elements. is two in this
meet margin for EBITDA reference as beat level. the you XXXX recall to plan Summit But point progress. XXXX or First, we Elevate baseline serves
inflationary second the than intellectual trends. for volume will and than our volumes half two the and guidance pricing second, wider headwinds. accounts as EBITDA cost uncertainty and variability our projects gains cost offset cost typical drivers. and Here Residential in declines And more range
elements expect closer versa in we end break to of a If in would or both our range, unfavorable. them buying the is top the favor, residential vice and cost
very we then taken more have this beating while year. place informed proven we we and we've that unlikely fully And focused will if to materially for into we this achievable the not volume to expectations agree quo construction a trends. margin get meeting setting are will cost XXXX, the critical prime until you'll think season. on I have view target revise Only to approach status be the balanced in and strong conviction on a
sure extending see Nevertheless, the opportunities M&A, to And enterprise. aggressively across strategic our on innovation materials. available advance the including our led we the in sustainability meantime, acumen, may capitalized you margin agenda, all creative to selfhelp are pursuing Summit and materials
have me our our Let not outlook outlining finish by capital which priorities allocation changed.
and forward. We we a when work profit shareholder coupled as repurchases. will we in look investments Then, led prioritize do undervalued, approach to with putting materials is and shareholders opportunities, CapEx, shares this fields, drive organic share return will operational term first acquisitions. execution improvement to our believe We via combination to capital capital attractive green opportunistically higher to sound returns via powerful inorganic moving
industry we uncertain do In strength. an closing, so we from challenges, while environment and contend operate in certain of position with a
add built more organization navigate commitments. more beyond. will can capable ever have to resilient that strategic on XXXX, opportunities Summit financial stronger, the goals talented We our and than and sheet We and deliver and leverage ambiguity, is portfolio balance for firepower in years drive to a these the high-performance
We've in our stronger of dialogue believe before died taking decision extend a thank the containing I'd recent back results Materials. a Summit special in making investment study. inform community at who you participated your those Finally, perception and the like will a our and to I to continuous questions,
minds now I'll ask Q&A. open the their to for operator
