Contractor pickup and stacked siding panels on a quiet suburban street as exterior projects pause.
United States, September 1, 2025
Shares of a leading siding manufacturer plunged nearly 35% after the company reported weaker fiscal first-quarter results, with net profit down about 28% and sales falling roughly 9%. Management attributed the decline to softer U.S. housing demand and homeowners deferring large exterior projects amid higher interest rates. Major home improvement retailers signaled similar consumer caution. Industry notes highlight that stucco remains a popular siding choice, a magnitude 4.1 quake rattled parts of the Southeast, and a private equity deal reshaped regional installer ownership, underscoring varied pressures across the exterior services market.
Stocks tied to exterior building materials fell sharply this week after a major siding maker posted weak quarterly results and flagged softer demand from homeowners and builders. The company’s shares dropped nearly 35% in a single day, marking the steepest one-day fall in decades according to market data. Investors reacted to a double hit: a quarter with lower profit and sales, and a warning that high borrowing costs are keeping many buyers and remodelers on the sidelines.
In the latest fiscal first quarter, the siding maker recorded a profit decline of about 28% compared with the prior year and net sales that fell roughly 9% year over year. Company leadership described conversations with customers and contractors as dominated by uncertainty and noted that demand is softer across several regions, with a pronounced slowdown in single-family home construction in the southern U.S. High interest rates were cited as a major factor, limiting large remodeling projects that often rely on loans or home equity lines.
Major home-improvement retailers reported that their customers are also delaying big-ticket projects. While those retailers held up better on the stock market than the siding maker, their earnings calls echoed the same message: elevated mortgage and loan rates are creating a “lock-in” effect that discourages homeowners from undertaking large remodeling work. Retailers said a sizable share of their goods are sourced domestically, and they signaled plans to manage higher input costs tied to trade policies.
Builders and homeowners are facing two linked pressures: affordability and financing. Stagnant home sales and fewer new home starts reduce demand for materials and installation services. For homeowners, the cost and availability of credit make it harder to fund remodels like re-siding, even when exterior upgrades could add curb appeal or long-term value.
On the product side, stucco continues to be a widely used siding option. About one in four new single-family homes feature stucco, making it the second-most popular siding behind vinyl. Traditional stucco is a cement-like mix applied in multiple thin layers and finished to show a range of textures. Modern systems include acrylic, insulated, and crack-suppression types that aim to reduce typical issues and expand where stucco can be used. Professionals warn that stucco installation typically demands a multi-person crew and multiple coats, so it is often not suitable for do-it-yourself projects.
A magnitude 4.1 earthquake in eastern Tennessee was widely felt across parts of the Southeast, with tens of thousands of reports submitted shortly after the tremor. Initial estimates were lower before the event was upgraded. The quake’s waves spread far because of geology in the eastern U.S., and officials said the region sees frequent small quakes though large damaging events are rare. There is a small chance of an aftershock of similar size in the near term.
Designers and builders focused on southern markets say homeowners are updating exteriors to boost first impressions. Popular moves include reworking rooflines, adding shutters or dormers, and choosing smaller, cleaner landscaping. Natural materials, layered textures, and unpainted brick are seeing renewed interest. Porch refreshes, bold front-door colors, and scaled lighting for evening curb appeal also remain common ways to elevate look and value without wholesale renovation.
In a separate development, a private-equity firm sold a majority stake in a southeastern residential exterior installer to another investment group. The selling firm will keep a minority position and continue to support growth. The installer, which provides siding, roofing, gutters, windows, and repair services across several southeastern states, will remain led by its current CEO and management team. Financial terms were not disclosed.
The near-term outlook for large exterior projects looks cautious. High interest rates and a softer single-family market are weighing on demand. Homeowners considering updates may focus on smaller, high-impact changes — lighting, paint, shutters, or landscaping — while contractors and suppliers will watch financing costs and builder activity for signs of recovery.
The company reported a drop in profit and sales for the quarter and signaled that demand is softer due to a weaker housing market and homeowners delaying large projects because of high borrowing costs.
Yes. Stucco remains widely used, especially in southern and western regions, and newer stucco systems are expanding its use to more climates and reducing historical issues like cracking.
The seismic event measured magnitude 4.1 and was widely felt across multiple states. Small earthquakes in that eastern zone are common, and officials indicated a low chance of a similar-sized aftershock in the week following the event.
Smaller, visual upgrades such as updated lighting, front doors, shutters, and clean landscaping tend to offer strong curb appeal without the cost and financing needs of major projects.
The installer’s leadership team remains in place, and the previous investor retains a minority stake; the sale is intended to support further expansion rather than immediate operational changes.
| Topic | What’s Important | Data Points |
|---|---|---|
| Siding maker earnings | Profit and sales fell; stock plunged | Profit down ~28%; sales down ~9%; shares fell nearly 35% |
| Housing market | High rates and weaker single-family activity | Affordability and financing are limiting large projects |
| Stucco | Still popular; modern systems reduce issues | Used on ~25% of new single-family homes; second to vinyl |
| Earthquake | Widely felt in Southeast | Magnitude 4.1; tens of thousands of felt reports |
| Installer ownership change | Majority stake sold; management remains | Seller retains minority position; terms not disclosed |
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