Complicated messaging, from BKW.

Margins up, but quarterly sales flat, order intakes softening, challenging conditions ahead. The key bit is “will give us an opportunity to take plants offline”.

Whilst that is a perfectly sensible (get your turnarounds/maintenance work in whilst things are relatively quiet) it is pretty indicative of just how challenging things might be, even as they leave the juicy tagline (not shown) of “cusp of significant building boom”.

Here, they are pointing to record immigration and government policy, in which every state has pledged to get a wriggle on with building, and making permitting easier.

Whilst things may turn out great for BKW, I think in general, for most of the builders/materials companies, it is better to just defer to the power of the rate cycle, and come back later (i.e. after this challenging forward period passes).

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