The Bottom Line 7-19

This past week wrapped up TRG’s quarterly “Survey Season” with the publication of our Q2’19 Residential Products Survey. As a reminder, TRG TRG’s seven industry surveys completed each quarter focuses on the “value chain” of residential, non-res, and public construction trends, covering relevant trends from rocks to roofs. Our Q2’19 Residential Product Survey confirmed a lackluster June, with puzzling over whether June trends were more weather related or fundamental in nature. Feedback from a wide variety of sources has pointed to a stronger July. If rates continue moving southward, TRG’s 2019 thesis that residential R&R trends should fare better than new residential construction. Finally, Q2’19 ARMA roofing shipment data came out this past week, posting a 4% YOY gain vs. last year’s 5% comp. TRG currently has modeled 4% Roofing segment revenue growth for Q2’19, implying no pricing gains. As we wrote in our June 14 Owens Corning (OC) thought piece and our Q2’19 Building Product Survey, OC’s stock has historically traded directionally with the roofing segment.