Apogee Enterprises Inc (APOG) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q2 2025 Apogee Enterprises' earnings conference call. (Operator Instructions) Please be advised, today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Apogee Enterprises 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would like to turn the call over to your speaker today, Jeff Huebschen, Vice President of Investor Relations. Please go ahead.

我想將今天的電話轉給您的發言人、投資者關係副總裁 Jeff Huebschen。請繼續。

Thank you, Kevin. Good morning, everyone, and welcome to Apogee Enterprises fiscal 2025 second-quarter earnings call. With me today are Ty Silberhorn, Apogee's Chief Executive Officer; and Matt Osberg, Chief Financial Officer.

謝謝你，凱文。大家早安，歡迎參加 Apogee Enterprises 2025 財年第二季財報電話會議。今天與我在一起的有 Apogee 執行長 Ty Silberhorn；和首席財務官馬特·奧斯伯格。

I'd like to remind everyone that there are slides to accompany today's remarks. These are available in the Investor Relations section of Apogee's website. During this call, we will reference certain non-GAAP financial measures. Definitions of these measures and a reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck we issued this morning.

我想提醒大家，今天的演講附有幻燈片。這些資訊可在 Apogee 網站的投資者關係部分找到。在本次電話會議中，我們將參考某些非公認會計準則財務指標。我們今天早上發布的收益報告和幻燈片中提供了這些措施的定義以及與最接近的公認會計準則措施的調節。

I'd also like to remind everyone that our call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in today's press release and in our SEC filings.

我還想提醒大家，我們的電話會議將包含前瞻性陳述。這些反映了管理層基於當前可用資訊的預期。實際結果可能存在重大差異。有關可能影響 Apogee 業務和財務業績的因素的更多信息，請參閱今天的新聞稿和我們向 SEC 提交的文件。

And with that, I will turn the call over to you, Ty.

這樣，我會將電話轉給你，Ty。

Thanks, Jeff. Good morning, everyone. I'm very excited to share the highlights from another solid quarter and provide further insights into our recently announced acquisition of UW Solutions. I'll then hand it over to Matt to provide more details on the quarter and our outlook.

謝謝，傑夫。大家早安。我很高興能分享另一個堅實的季度的亮點，並就我們最近宣布的收購 UW Solutions 提供進一步的見解。然後我會將其交給馬特，以提供有關本季度和我們的前景的更多詳細資訊。

Let's start with the quarter highlights on page 5 of our presentation. As we expected, revenue declined compared to last year. Similar to the first quarter, this was partly due to our strategic shift away from less differentiated lower-margin product lines and a reflection of the continued softness in some of the end markets that we serve, particularly non-residential construction.

讓我們從簡報第 5 頁的季度亮點開始。正如我們預期的那樣，收入比去年有所下降。與第一季類似，這在一定程度上是由於我們的策略轉變，從差異化程度較低的低利潤產品線轉向，以及我們服務的一些終端市場（特別是非住宅建築）持續疲軟的反映。

Even with the lower volume, our team continued to drive strong, adjusted operating margin expansion and delivered adjusted EPS growth. Adjusted operating margin was 12.6%, our second consecutive quarter with margins above 12%. And we had exceptionally strong cash flow from operations in the quarter.

即使銷售量較低，我們的團隊仍繼續強勁地推動調整後的營業利潤率擴張，並實現調整後的每股盈餘成長。調整後營業利益率為 12.6%，這是我們連續第二季利潤率高於 12%。本季我們的營運現金流異常強勁。

As you'll see on page 7 of our presentation, results in the quarter were once again led by outperformance from architectural glass. The glass team continues to exceed our expectations due to strong pricing and mix despite pressure on volume. Architectural services was also a meaningful contributor to our year-over-year profit gains. Services delivered double-digit sales growth and achieved their sixth consecutive quarter of sequential adjusted operating margin expansion, moving closer to the 7% 9% target range.

正如您將在我們的簡報第 7 頁上看到的，本季的業績再次由建築玻璃的優異表現引領。儘管銷售面臨壓力，但由於強勁的定價和產品組合，玻璃團隊繼續超越我們的預期。建築服務也是我們年比利潤成長的重要貢獻者。服務業實現了兩位數的銷售成長，並實現了連續第六個季度調整後營業利潤率擴張，接近 7% 9% 的目標範圍。

Framing systems and large-scale optical both continued to deliver solid profitability despite lower sales volume. And importantly, both segments made progress on key strategic initiatives. Framing systems made further progress executing Project Fortify. keeping us on track to deliver our cost savings targets. They also continue to improve their service levels while positioning the business to outgrow the market.

儘管銷量下降，取景系統和大型光學元件仍繼續提供穩健的獲利能力。重要的是，這兩個部門在關鍵策略措施上都取得了進展。框架系統在執行 Project Fortify 方面取得了進一步進展。讓我們能夠達成成本節約目標。他們也繼續提高服務水平，同時定位業務以超越市場。

In LSO, we made continued progress on our capacity expansion project, which we expect to come online during the second half of the fiscal year. Given the strong earnings results in the second quarter, we are increasing our adjusted EPS outlook for the full year as shown on page 9 to a range of $4.90 to $5.20. Our results continue to demonstrate the sustainable operating improvements we've achieved through the execution of our three-pillar strategy.

在 LSO，我們的產能擴張專案持續取得進展，預計該專案將在本財年下半年上線。鑑於第二季強勁的獲利結果，我們將全年調整後每股盈餘預期上調至 4.90 美元至 5.20 美元（如第 9 頁所示）。我們的業績持續證明我們透過執行三大支柱策略所實現的永續營運改善。

Following on the heels of this solid quarter, we were excited to announce our agreement to acquire UW Solutions, which we highlight starting on page 11 of our presentation. Before I get into the specifics of the transaction, I'd like to recognize the team at Apogee that has been directly involved in this process to bring it across the finish line.

繼這個穩定的季度之後，我們很高興地宣布我們同意收購 UW Solutions，我們在簡報的第 11 頁開始強調了這一點。在詳細介紹交易細節之前，我想感謝 Apogee 的團隊，他們直接參與了這個過程，並最終完成了交易。

UW Solutions is a strong strategic fit for Apogee, and this deal is an example of the focus, patience, and diligence of our M&A process and the supporting teams. This is a business we identified some time ago as a potential fit with our strategy. Our team worked directly with the seller, Heartwood Partners, to find a win-win path that will benefit everyone involved, most importantly, UW's employees and their customers.

UW Solutions 與 Apogee 具有很強的策略契合度，這筆交易是我們併購流程和支援團隊的專注、耐心和勤奮的一個例子。這是我們不久前發現的一項可能符合我們策略的業務。我們的團隊直接與賣方 Heartwood Partners 合作，尋找一條雙贏的道路，讓所有參與者受益，最重要的是，威斯康辛大學的員工及其客戶。

This deal checks all the boxes we are looking for in an ideal acquisition. It brings differentiated solutions with leading positions in attractive markets. It complements our portfolio while expanding and diversifying our growth opportunities. And it is a strong performing business that will be accretive to our long-term financial profile.

這筆交易滿足了我們在理想收購中尋找的所有條件。它帶來了差異化的解決方案，在有吸引力的市場中佔據領先地位。它補充了我們的投資組合，同時擴大了我們的成長機會並使其多樣化。這是一項業績強勁的業務，將增強我們的長期財務狀況。

UW Solutions operates around three product lines: HD printable materials, which has many similarities to our LSO segment, applies high-performance coatings to create premium products for the graphic arts market; industrial flooring, which applies high-performance coatings to engineered wood used primarily in warehouses, distribution centers, and industrial facilities; and engineered coatings, which formulates and produces a variety of high-performance coatings that are used internally, as well as sold to third-party customers for other applications.

UW Solutions 圍繞著三個產品線運作：高清列印材料，與我們的 LSO 部門有許多相似之處，應用高性能塗料為圖形藝術市場創造優質產品；工業地板，將高性能塗料應用於主要用於倉庫、配送中心和工業設施的工程木材；和工程塗料，配製和生產各種高性能塗料，供內部使用，並出售給第三方客戶用於其他應用。

This acquisition is very well aligned with our strategy to create peak value. UW Solutions is an economic leader in their target markets. They bring differentiated capabilities, well-established brands, and leading market positions. They also have an impressive record of execution and profitability with strong EBITDA margins. Adding UW Solutions will complement our current portfolio and expand our offerings into new segments.

此次收購與我們創造高峰價值的策略非常契合。UW Solutions 是其目標市場的經濟領導者。他們帶來了差異化的能力、知名的品牌和領先的市場地位。他們還擁有令人印象深刻的執行力和獲利記錄以及強勁的 EBITDA 利潤率。增加威斯康辛大學解決方案將補充我們目前的產品組合，並將我們的產品擴展到新的領域。

The ResinDEK brand expands their offerings for non-residential construction, providing a meaningful entry into manufacturing, warehousing, and distribution projects with significant exposure to R&R versus new construction. The HD printable materials business accelerates our efforts to grow and diversify LSO's core business. And RDC Coatings brings in R&D capability to drive new product development and enable expansion into new applications and markets.

ResinDEK 品牌擴大了非住宅建築的產品範圍，為製造、倉儲和分銷項目提供了有意義的切入點，與新建築相比，R&R 項目具有顯著的風險。高清列印材料業務加速了我們 LSO 核心業務的發展和多元化。RDC Coatings 擁有研發能力，可推動新產品開發並拓展新應用和市場。

Importantly, the deal will leverage Apogee's core capabilities to drive value through the integration. We will enable cost synergies by leveraging areas like HR, procurement, IT, and finance. And we will deploy the Apogee management system to further enhance the manufacturing operations.

重要的是，該交易將利用 Apogee 的核心能力透過整合來推動價值。我們將透過利用人力資源、採購、IT 和財務等領域來實現成本綜效。我們將部署Apogee管理系統以進一步增強製造營運。

As shown on page 17 of our presentation, UW Solutions brings unique capabilities and process technology that are a strong complement to what we do in our LSO segment. Both businesses have expertise in developing and applying high-performance coatings to a variety of substrates.

正如我們簡報第 17 頁所示，UW Solutions 帶來了獨特的功能和工藝技術，這是我們在 LSO 領域所做工作的有力補充。兩家公司都擁有開發高性能塗料並將其應用於各種基材的專業知識。

LSO's current capabilities are centered around deposition and roll coating for glass and acrylic substrates. UW Solutions will add complementary capabilities in roll coating, curtain coating, and spray coating used on metals, wood, plastic, and other substrates. Together, these businesses will offer a broad range of manufacturing process capabilities that can provide a wide variety of coating types and high-performance substrates for a diverse set of market applications.

LSO 目前的能力主要集中在玻璃和丙烯酸基材的沉積和輥塗上。UW Solutions 將增加金屬、木材、塑膠和其他基材上使用的輥塗、幕塗和噴塗的補充能力。這些企業將共同提供廣泛的製造流程能力，可為各種市場應用提供各種塗層類型和高性能基材。

We plan to fully integrate the business into our LSO segment. The combined strength of these businesses will create a powerful new engine for growth. We will bring together a portfolio of leading brands that will serve a diverse set of customers and applications. The deal will also provide cross-selling opportunities and will accelerate growth drivers in both businesses. And as I described earlier, we will leverage the Apogee management system and our back-office capabilities to drive meaningful cost synergies.

我們計劃將該業務完全整合到 LSO 部門。這些業務的綜合實力將創造強大的新成長引擎。我們將匯集一系列領先品牌，為不同的客戶和應用程式提供服務。該交易還將提供交叉銷售機會，並將加速兩項業務的成長動力。正如我之前所描述的，我們將利用 Apogee 管理系統和我們的後台功能來推動有意義的成本協同效應。

We expect the acquisition to close sometime in our fiscal third quarter, and we plan to move quickly to execute a rigorous and comprehensive integration plan. This is a great business that strongly complements our strategy. We are excited for the opportunity to welcome UW Solutions employees to Apogee and look forward to working together to build a powerful new growth engine for the company.

我們預計收購將在第三財季的某個時候完成，並且我們計劃迅速採取行動，執行嚴格而全面的整合計劃。這是一項偉大的業務，與我們的策略形成了強有力的補充。我們很高興有機會歡迎 UW Solutions 員工來到 Apogee，並期待共同努力為公司打造強大的新成長引擎。

With that, I will turn it over to Matt to comment about the quarter, our outlook, and the acquisition.

接下來，我將把它交給馬特，讓他對本季、我們的前景和收購發表評論。

Thanks, Ty. And good morning, everyone. Before I begin with a discussion of our second-quarter results and outlook, I want to say how excited I am about the acquisition of UW Solutions. I want to reiterate Ty's comments on the strategic benefits of this deal and the opportunities for growth that it creates.

謝謝，泰。大家早安。在開始討論我們第二季的業績和前景之前，我想說我對收購 UW Solutions 感到非常興奮。我想重申 Ty 對這筆交易的戰略利益及其所創造的成長機會的評論。

This transaction also demonstrates our ability to deploy capital for assets with accretive financials that build on the momentum that we have created in our existing business. I will provide more information on the acquisition toward the end of my comments.

這項交易也證明了我們有能力利用現有業務所創造的勢頭，以增值的財務狀況為資產配置資本。我將在評論的最後提供有關此次收購的更多資訊。

Starting with our second-quarter results, net sales were down 3% year over year but improved sequentially compared to a decline of 8% in the first quarter. The sales decline in the quarter was primarily driven by lower volumes in framing, glass, and LSO. Similar to the first quarter, the volume decline was primarily driven by our strategic decision to exit some lower-margin product lines in framing as part of Project Fortify and by softness in parts of our end markets.

從第二季業績開始，淨銷售額年減 3%，但與第一季下降 8% 相比，環比有所改善。本季銷售額下降的主要原因是框架、玻璃和 LSO 銷售下降。與第一季類似，銷售下降的主要原因是我們的策略決策，即作為 Project Fortify 的一部分，退出一些利潤率較低的產品線，以及部分終端市場的疲軟。

The lower volumes were partially offset by improved pricing and product mix in glass and favorable project mix in services. Despite lower sales, we delivered another strong quarter of profitability. Adjusted operating margin improved 110 basis points to 12.6%, driven by improved pricing and mix, favorable material costs, and lower insurance-related costs. Adjusted diluted EPS grew 6% to $1.44, which equaled the record adjusted EPS we reported in the first quarter. Adjusted diluted EPS growth was primarily driven by higher adjusted operating income along with lower interest expense.

玻璃定價和產品組合的改善以及服務領域有利的項目組合部分抵消了銷售下降的影響。儘管銷售額下降，我們仍實現了另一個強勁的季度獲利。由於定價和產品組合的改善、有利的材料成本以及保險相關成本的降低，調整後的營業利潤率提高了 110 個基點，達到 12.6%。調整後攤薄每股收益成長 6%，達到 1.44 美元，相當於我們在第一季報告的調整後每股收益創紀錄的水平。調整後攤薄每股收益成長主要是由調整後營業收入增加和利息支出減少所推動的。

Turning to the segment results, framing net sales declined 11% primarily due to lower volume related to our strategic shift away from certain lower margin product lines as part of Project Fortify. However, framing sales did improve sequentially compared to the first quarter. Despite the lower volume, framing continued to sustain adjusted operating margin within its 10% to 15% target range as the unfavorable leverage impact of lower volume and a less-favorable mix were partially offset by favorable material costs.

就分部業績而言，框架淨銷售額下降了 11%，主要是由於作為 Project Fortify 一部分的我們策略性地從某些利潤率較低的產品線轉移，導致銷售下降。然而，與第一季相比，框架銷售確實有所改善。儘管銷量下降，但框架繼續將調整後的營業利潤率維持在 10% 至 15% 的目標範圍內，因為銷量下降和不利組合的不利槓桿影響被有利的材料成本部分抵消。

Net sales in glass declined 4%, primarily due to lower volume driven by softening end-market demand. This was partially offset by strong pricing and mix. Once again, glass operating margin exceeded our expectations, improving by 490 basis points to a record 23.4%. This margin overperformance was primarily driven by stronger-than-expected pricing and mix.

玻璃淨銷售額下降 4%，主要是因為終端市場需求疲軟導致銷售下降。這部分被強勁的定價和組合所抵消。玻璃營業利潤率再次超出我們的預期，提高了 490 個基點，達到創紀錄的 23.4%。利潤率超預期主要是由強於預期的定價和組合所推動的。

Moving to services, net sales grew 11%, primarily due to a more favorable mix of projects and increased volume. Adjusted operating margin improved 250 basis points to 6.5%, making this the sixth consecutive quarter of sequential margin expansion for services. Services backlog ended the quarter at $792 million, down from $867 million last quarter. Although backlog declined in the quarter, the overall trend remains positive, with backlog up 17% compared to a year ago, as prior to this quarter, services had experienced three consecutive quarters of sequential backlog growth.

轉向服務業，淨銷售額成長了 11%，這主要是由於更有利的項目組合和銷量的增加。調整後的營業利潤率提高了 250 個基點，達到 6.5%，這使得服務利潤率連續第六個季度實現成長。本季末服務積壓金額為 7.92 億美元，低於上季的 8.67 億美元。儘管本季積壓量有所下降，但整體趨勢仍樂觀，積壓量較去年同期成長了 17%，而在本季之前，服務業已連續三個季度出現積壓量成長。

LSO sales declined 16% primarily due to lower volume in our retail channel, partially offset by a more favorable mix. The volume decline was primarily driven by the impact of lower distribution at one of our retail channel customers. Operating margin declined 60 basis points to 19.1%, reflecting the impact of lower volume, partially offset by improved mix and cost savings. Corporate and other expenses were flat compared to the prior year, with higher compensation and benefit costs offset by lower insurance-related expenses.

LSO 銷售額下降 16%，主要是由於我們零售通路的銷售下降，但更有利的產品組合部分抵消了這一影響。銷售下降主要是由於我們的一位零售通路客戶的分銷量減少的影響所致。營業利潤率下降 60 個基點至 19.1%，反映出銷售量下降的影響，但部分被產品組合改善和成本節約所抵銷。公司和其他費用與去年相比持平，較高的薪資和福利成本被較低的保險相關費用所抵消。

Turning to cash flow and the balance sheet, cash from operations in the quarter was very strong at $59 million, up 42% compared to last year's second quarter. This brings our year-to-date cash from operations to $64 million, which is in line with the strong cash flow we generated in the first half of the prior year. Our balance sheet remains in a very strong position with low debt and no near-term maturities.

就現金流和資產負債表而言，本季營運現金非常強勁，達到 5,900 萬美元，比去年第二季成長 42%。這使得我們年初至今的營運現金達到 6,400 萬美元，這與我們去年上半年產生的強勁現金流相符。我們的資產負債表仍然處於非常強勁的地位，債務較低，而且沒有短期到期的情況。

Additionally, during the quarter, we refinanced our credit facility. The new credit facility significantly expanded our borrowing capacity at favorable terms. The new facility provides up to $700 million of capacity through a $450 million revolving credit facility and a $250 million delayed-draw term loan. The increase in this facility gives us additional committed capacity to support our growth strategy. We expect to utilize the $250 million delayed-draw term loan, as well as cash on hand, to finance our acquisition of UW Solutions.

此外，在本季度，我們為信貸額度進行了再融資。新的信貸安排以優惠的條件顯著擴大了我們的借貸能力。新設施透過 4.5 億美元的循環信貸安排和 2.5 億美元的延遲提取定期貸款提供高達 7 億美元的產能。該設施的增加為我們提供了額外的承諾能力來支持我們的成長策略。我們預計將利用 2.5 億美元的延遲提取定期貸款以及手頭現金為我們收購 UW Solutions 提供資金。

Moving to our outlook for the full fiscal year, we continue to expect net sales to decline 4% to 7%. This range continues to include approximately 2 percentage points of decline related to fiscal '25 reverting to a 52-week year and approximately 1 percentage point of decline related to the actions of Project Fortify to eliminate certain lower-margin product and service offerings.

展望整個財年，我們繼續預期淨銷售額將下降 4% 至 7%。這一範圍繼續包括與 25 財年恢復到 52 週年度相關的約 2 個百分點的下降，以及與 Project Fortify 消除某些低利潤產品和服務產品的行動有關的約 1 個百分點的下降。

We expect sales declines in framing, glass, and LSO to be partially offset by growth in services as we execute a strong pipeline of projects in our backlog. We now expect full-year consolidated adjusted operating margin will improve to approximately 11%, primarily driven by the strong margin performance in the first half of the year. We continue to expect adjusted operating margin to decline sequentially in the second half of the year, primarily due to lower volume and pricing pressure in glass.

我們預計，隨著我們在積壓項目中執行大量項目，框架、玻璃和 LSO 的銷售下降將被服務的成長部分抵消。我們目前預計全年綜合調整後營業利潤率將改善至約 11%，這主要是受到上半年強勁利潤率表現的推動。我們仍然預計下半年調整後營業利潤率將環比下降，這主要是由於玻璃銷售和價格壓力下降。

As I mentioned, glass operating margin exceeded our expectations in the first half of the year, primarily driven by stronger-than-expected pricing and mix. Due to the high variable contribution margin in our glass business, operating margin is highly sensitive to changes in assumptions of price and mix. Our forecasts are based on price and mix data in our pipeline, as well as assumptions on when work will flow through production.

正如我所提到的，上半年玻璃營業利潤率超出了我們的預期，主要是由於定價和產品組合強於預期。由於我們玻璃業務的可變邊際貢獻較高，營業利潤率對價格和產品組合假設的變化高度敏感。我們的預測是基於我們管道中的價格和混合數據，以及對工作何時進行生產的假設。

During the first half of the fiscal year, we saw workflow with favorable pricing and mix, which drove the margin improvement. Based on current visibility into our pipeline and end-market trends, we expect glass margins will moderate in the second half, moving into the top half of the 10% to 15% target range, with full-year operating margin in the high teens.

在本財年上半年，我們看到了具有有利定價和組合的工作流程，這推動了利潤率的提高。根據目前對我們管道和終端市場趨勢的了解，我們預計下半年玻璃利潤率將放緩，進入 10% 至 15% 目標範圍的上半部分，全年營業利潤率將達到十幾歲。

We continue to expect full-year framing adjusted operating margin to improve compared to fiscal '24 and be within the target range of 10% to 15%. For services, we continue to expect sequential adjusted operating margin improvement in the second half, with full-year adjusted operating margin approaching the 7% to 9% target range. We continue to expect LSO operating margin will decline compared to last year, primarily due to lower volume. Finally, we expect corporate and other expenses to be approximately $8 million per quarter in the second half of the year.

我們繼續預期全年框架調整後營業利潤率將比 24 財年有所改善，並在 10% 至 15% 的目標範圍內。對於服務業，我們繼續預期下半年調整後營業利潤率將有所改善，全年調整後營業利潤率將接近 7% 至 9% 的目標範圍。我們仍預期 LSO 營業利潤率將比去年下降，主要是由於銷售下降。最後，我們預計下半年每季的公司和其他費用約為 800 萬美元。

We are increasing our full-year outlook for adjusted diluted EPS to a range of $4.90 to $5.20, reflecting our stronger-than-expected second-quarter performance. As a reminder, we anticipate the reversion to a 52-week year will reduce adjusted diluted EPS by approximately $0.20. We continue to expect an effective tax rate of approximately 24.5% and full-year capital expenditures of $40 million to $50 million. We expect another strong year for cash flow, with cash from operations higher than our historical averages but below last year's record level.

我們將調整後攤薄每股收益的全年預期上調至 4.90 美元至 5.20 美元，這反映了我們強於預期的第二季業績。提醒一下，我們預計恢復為 52 週的年度將使調整後稀釋每股收益減少約 0.20 美元。我們仍預期有效稅率約為 24.5%，全年資本支出為 4,000 萬至 5,000 萬美元。我們預計現金流又將強勁，營運現金流將高於我們的歷史平均水平，但低於去年的創紀錄水平。

Let me wrap up with some additional comments about the acquisition of UW Solutions. We are very excited to acquire a growth business and expect that the transaction will be accretive to our long-term financial profile, including revenue growth rate and adjusted EBITDA margin. We expect to achieve $5 million in annual run rate synergies by the end of fiscal '27.

最後，讓我對收購威斯康辛大學解決方案公司的一些補充評論進行總結。我們非常高興能夠收購成長型業務，並預期此交易將增強我們的長期財務狀況，包括營收成長率和調整後的 EBITDA 利潤率。我們預計到 27 財年末，年運行率綜效將達到 500 萬美元。

Including these synergies and net of the $27 million tax step-up benefit, the purchase price represents approximately 8.5 times fiscal '26 estimated adjusted EBITDA. We expect to finance the transaction with cash on hand and borrowings under our current credit facility. At the close of the transaction, we expect our consolidated leverage ratio, as defined in our credit agreement, will be approximately 1.5 times. This leverage ratio still provides further capacity for us to continue to deploy capital for growth.

包括這些綜效並扣除 2,700 萬美元的稅收遞增效益，收購價格約為 26 財年預計調整後 EBITDA 的 8.5 倍。我們預計將使用手頭現金和現有信貸額度下的借款來為交易提供資金。交易結束時，我們預期信貸協議中定義的綜合槓桿比率將約為 1.5 倍。這一槓桿率仍然為我們繼續部署資本促進成長提供了進一步的能力。

In fiscal '26, we expect the acquisition to contribute approximately $100 million in revenue at an adjusted EBITDA margin of approximately 20% and to be accretive to our adjusted diluted EPS. For fiscal '25, assuming the acquisition closes on November 1, we expect approximately $30 million of incremental net sales, and we expect adjusted diluted EPS will be reduced by approximately $0.10 due to increased interest costs and amortization expense. These potential fiscal '25 impacts are not included in the outlook we provided today.

在 26 財年，我們預計此次收購將以約 20% 的調整後 EBITDA 利潤率貢獻約 1 億美元的收入，並增加我們調整後的稀釋每股收益。對於25 財年，假設收購於11 月1 日完成，我們預計增量淨銷售額約為3000 萬美元，並且由於利息成本和攤銷費用增加，我們預計調整後的攤薄每股收益將減少約0.10美元。這些潛在的 25 財年影響並未包含在我們今天提供的展望中。

In conclusion, this is a very exciting time for Apogee. Our team continued to execute at a high level in the first half of the year, delivering strong earnings results and positioning the company for improved long-term growth. Our healthy financial position and expanded credit facility provided us the opportunity to make an accretive acquisition while also investing in the business and returning cash to shareholders.

總之，對於 Apogee 來說，這是一個非常令人興奮的時刻。我們的團隊在上半年繼續保持高水準執行，取得了強勁的獲利業績，並為公司的長期成長奠定了基礎。我們健康的財務狀況和擴大的信貸額度為我們提供了進行增值收購的機會，同時也投資於業務並向股東返還現金。

And we are positioned to acquire a business that we expect will create new growth opportunities for us in the future. We believe these outcomes are the result of tremendous efforts by the entire Apogee team to execute our strategy, and we intend to build on this momentum in the future.

我們準備收購一家我們預計將在未來為我們創造新的成長機會的業務。我們相信這些成果是整個 Apogee 團隊為執行我們的策略付出巨大努力的結果，我們打算在未來繼續發揚這一勢頭。

With that, I'll turn it back over to Ty for some concluding remarks.

至此，我將把它轉回給 Ty 進行一些總結性發言。

Thanks, Matt. To wrap up, our team delivered another strong quarter. We are continuing to build positive momentum as we execute our strategy, achieving significant margin expansion and adjusted earnings growth despite some softness in our end markets. We can do so given the stronger operating foundation we've built over the past three years. The acquisition of UW Solutions is an important milestone for our company as we point to both organic and inorganic growth, positioning the company for continued success as we move ahead.

謝謝，馬特。最後，我們的團隊又交付了強勁的季度業績。儘管終端市場有些疲軟，但在執行策略時，我們將繼續建立積極的勢頭，實現利潤率的大幅擴張和調整後的獲利成長。鑑於我們在過去三年中建立了更強大的營運基礎，我們可以做到這一點。收購 UW Solutions 對我們公司來說是一個重要的里程碑，因為我們指出了有機和無機成長，使公司在我們前進的過程中不斷取得成功。

With that, we are ready to take your questions.

這樣，我們就準備好回答您的問題了。

(Operator Instructions) Brent Thielman, D.A. Davidson.

（操作員說明）Brent Thielman，D.A.戴維森。

Hey, thanks. Good morning. Congrats on the transaction.

嘿，謝謝。早安.恭喜交易成功。

Good morning, Brent. Thank you.

早上好，布倫特。謝謝。

Yes, maybe just to start on that, Ty, I was curious just on the cross-selling opportunities, maybe what you see there and how quickly do you think you can leverage that?

是的，也許只是從這個開始，泰，我只是對交叉銷售機會感到好奇，也許你在那裡看到了什麼，你認為你能多快利用它？

Yes, if we look at the HD printable materials, I would say the good news is there is not a significant customer overlap. We actually saw that as a positive. There are commonalities in the market, particularly in that HD printable material side of the UW Solutions business. So as we dug into that, both our team within LSO and the UW Solutions team see some really nice opportunities, and we've actually already had some outreach from customers with respect to that.

是的，如果我們看看高清可列印材料，我會說好消息是沒有顯著的客戶重疊。我們實際上認為這是積極的。市場存在一些共通性，特別是在華盛頓大學解決方案業務的高清可列印材料方面。因此，當我們深入研究這個問題時，我們 LSO 的團隊和威斯康辛大學解決方案團隊都看到了一些非常好的機會，而且我們實際上已經與客戶進行了一些接觸。

So that's a complementary offering to what we already provide into that custom framing and museum art business. So that's where I think we see the biggest opportunities. The flooring side of the business, which goes to market under the ResinDEK brand and is really recognized as a leader in that industrial flooring, where you're going to put robotics or automated solutions into those distribution centers, manufacturing facilities, it is a different go-to-market.

因此，這是對我們已經為定制框架和博物館藝術業務提供的產品的補充。所以我認為這就是我們看到最大機會的地方。地板業務以 ResinDEK 品牌進入市場，被公認為工業地板領域的領導者，您可以將機器人或自動化解決方案放入配送中心、製造設施中，這是一個不同的領域走向市場。

So I think we're being cautious in terms of how much crossover we see into some of our building products channels. But we do see opportunity to continue to build on the momentum within that business where they've built a strong partnership with some of those robotics companies and have some good inroads with some of the larger retailers as well as online and brick-and-mortar retailers in the market to drive that business growth.

因此，我認為我們對某些建築產品管道的交叉程度持謹慎態度。但我們確實看到了繼續發展該業務勢頭的機會，他們與其中一些機器人公司建立了牢固的合作夥伴關係，並與一些較大的零售商以及在線和實體零售商取得了一些良好的進展市場上的零售商來推動業務成長。

Okay, I appreciate that, Ty. And then just because a lot of these areas are new, I'm wondering if maybe you could speak to some of the categories that UW brings to the company, more so just around from kind of the market share that these different businesses have, and would it be fair for us to think that these might be areas you're going to look to consolidate further?

好的，我很感激，泰。然後，僅僅因為其中許多領域都是新的，我想知道您是否可以談談華盛頓大學為公司帶來的一些類別，更多的是圍繞這些不同企業所擁有的市場份額，以及我們認為這些可能是你們想要進一步鞏固的領域是否公平？

Well, I'd say as you look at the business from an overall market percentage, there's -- we won't talk about shares in general, but they are very focused on premium parts of the market, both in that HD printable materials, which they go to market under the ChromaLuxe and Unisub brands, and then very much so again on the ResinDEK side as well, very focused on premium parts of the market.

好吧，我想說，當你從整體市場百分比來看該業務時，我們不會談論一般的股票，但他們非常關注市場的高端部分，無論是在高清打印材料方面，他們以ChromaLuxe 和Unisub 品牌進入市場，然後在ResinDEK 方面也是如此，非常專注於市場的高端部分。

So as we look at those, both of those markets are actually significantly large, but then as you get into kind of an addressable or core market focus, they become smaller as we drive that focus to be able to sell differentiated solutions.

因此，當我們審視這些市場時，這兩個市場實際上都非常大，但是當您進入某種可尋址或核心市場焦點時，隨著我們推動該焦點能夠銷售差異化解決方案，它們就會變得更小。

As we look at our M&A pipeline, I think we've talked about still being focused on where we can add additional differentiated products into our portfolio, not just building materials products, although that is a core driver since that is the bulk of where our business sets. But we also continue to look at things that can continue to build out the capabilities we have within the LSO segment. So both areas will remain a focus for us in our M&A work.

當我們審視我們的併購管道時，我認為我們已經討論過仍然關注我們可以在我們的產品組合中添加額外的差異化產品，而不僅僅是建築材料產品，儘管這是一個核心驅動因素，因為這是我們大部分的業務業務集。但我們也會繼續尋找能夠繼續增強我們在 LSO 領域的能力的事物。因此，這兩個領域仍將是我們併購工作的重點。

Okay, and maybe just one on the core business. I mean, architectural glass just continues to be extraordinary contributions here from a profitability perspective. Matt, I caught your comments about the expectations into the second half of the fiscal year. Maybe just you could talk around what the inbound orders tell you, inform you. And as you are starting to see maybe some normalization or pressure on pricing, are you also seeing any indications that maybe that's leveling off at this point?

好吧，也許只是關於核心業務的一件事。我的意思是，從獲利角度來看，建築玻璃仍然做出了非凡的貢獻。馬特，我聽到你對本財年下半年的預期的評論。也許您可以談論入庫訂單告訴您的內容，並通知您。當您開始看到定價可能出現一些正常化或壓力時，您是否也看到任何跡象表明目前價格可能趨於平穩？

Yes, Brent. So yes, I mean, look, I love being wrong in the right way, and I've been wrong a few times on glass, but thankfully in the right way. As I tried to call out really just to give people some insights into that business, it's such a high variable contribution margin that as you look at what's in our pipeline and how that work will flow, it can really have a significant impact.

是的，布倫特。所以，是的，我的意思是，看，我喜歡以正確的方式犯錯，而且我在玻璃上也犯過幾次錯誤，但值得慶幸的是，以正確的方式。正如我試圖指出的那樣，只是為了讓人們對這項業務有一些見解，它的可變貢獻邊際是如此之高，以至於當你看看我們的管道中的內容以及工作將如何進行時，它確實可以產生重大影響。

And the good news for us is we've seen an extended hold-up of price and mix that's really buoyed those margin rates over the past couple of quarters. So as we look into the pipeline that we see now, which is limited, we've got some insights, but we can't still see the rest of the year, there's always variability on what work flows through that pipeline, and there's variability on the pricing and mix in that pipeline too.

對我們來說，好消息是我們看到價格和組合的長期停滯，這確實提振了過去幾季的利潤率。因此，當我們研究現在看到的有限的管道時，我們得到了一些見解，但我們仍然無法看到今年剩餘的時間，通過該管道的工作總是存在變化的，並且存在變化也涉及該管道中的定價和組合。

So as some of that is the expectation of what work will flow in and at what margin, that can have big changes. But we do see a more uniform profile in terms of lower price and lower margin mix in that pipeline than what we've seen in the first half of the year. That's why the outlook for the second half of the year is much lower than the first half of the year.

因此，由於其中一些是對哪些工作將流入以及以多少邊際流入的預期，這可能會發生很大的變化。但我們確實看到，與今年上半年相比，該管道中的價格更低、利潤率更低。這就是為什麼下半年的前景遠低於上半年的原因。

Like I said, we've got some visibility in there, but definitely not the rest of the year. We do expect that to moderate, like I said, in that upper half of that 10% to 15% margin rate for the back half of the year and ending somewhere in the high teens based on what we can see today.

就像我說的，我們在那裡有一些能見度，但絕對不是今年剩下的時間。正如我所說，我們確實預計下半年利潤率將在 10% 至 15% 的上半部分放緩，根據我們今天所看到的情況，最終會達到十幾歲左右。

Okay. All right. Very good. I'll pass it on. Congrats again on the transaction in the quarter.

好的。好的。非常好。我會把它傳遞下去。再次恭喜本季的交易。

Thanks, Brent.

謝謝，布倫特。

Thanks, Brent.

謝謝，布倫特。

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Thanks. Hey, good morning, Ty, Matt, and Jeff. Congrats again on the UW Solutions deal.

謝謝。嘿，早上好，泰、馬特和傑夫。再次恭喜威斯康辛大學解決方案交易。

Thanks, Julio.

謝謝，胡里奧。

Thank you.

謝謝。

Hey, I was hoping maybe also staying on the deal a little bit, just if you could give us a sense of kind of the historical growth rate. I know you said on the press release that it was accretive to legacy Apogee, but just if you could give us maybe better granularity into maybe the historical growth rate that UW has had in the years prior.

嘿，我希望也許還能稍微保留一下這筆交易，只要你能讓我們了解一下歷史成長率。我知道您在新聞稿中說過，它會增加遺留的 Apogee，但如果您能讓我們更了解華盛頓大學在前幾年的歷史成長率。

Well, I think the key driver to that business over the last couple of years has been the industrial flooring segment. And just to give you a rough idea, we don't really want to break out the details, but that's about half, call it approximately half of their revenue base.

嗯，我認為過去幾年該業務的關鍵驅動力是工業地板領域。只是為了給您一個粗略的了解，我們真的不想透露細節，但這大約是他們收入基礎的一半。

So that has seen some strong growth over the last few years, certainly had some significant growth as it came out of COVID or going into COVID and all the online increase. But then they've been able to kind of build upon that and then continue to have some very strong growth approaching double digit.

因此，過去幾年出現了一些強勁的成長，隨著新冠疫情的爆發或進入新冠疫情以及所有線上成長，肯定會有一些顯著的成長。但隨後他們能夠在此基礎上再接再厲，繼續實現接近兩位數的強勁成長。

So we look at that part of the business. We see good momentum in that business going forward, a little lower growth rates in the rest of the business, and I would look at the coatings as being mostly internally consumed. They do sell to third parties for different applications, and so they have had some growth there. But most of that coatings business is consumed internally. So they're doing formulations that are then used on the other products that UW Solutions produces in the flooring and the HD printable materials.

所以我們關注這部分業務。我們看到該業務未來發展勢頭良好，其餘業務的成長率略低，我認為塗料主要是內部消耗的。他們確實向第三方出售不同應用的產品，因此他們在那裡取得了一些成長。但大部分的塗料業務都是在內部消耗。因此，他們正在研究配方，然後將其用於 UW Solutions 生產的地板和高清可列印材料的其他產品。

Yes. The only thing I'd add, Julio, this is as Ty pointed out in his comments. This is a better-together acquisition, right? We talked about the additional capacity that we've got coming online in LSO, the R&D capabilities that come with this kind of acquisition, and some market crossover but some new markets. So I think that there is an opportunity to even improve on what they've been able to do with a better-together solution here in LSO.

是的。我唯一要補充的是，胡里奧，這是泰在評論中指出的。這是一次更好的聯合收購，對嗎？我們討論了 LSO 上線的額外產能、此類收購帶來的研發能力，以及一些市場交叉和一些新市場。所以我認為，他們有機會透過 LSO 更好的共同解決方案來改進他們已經能夠做的事情。

Got it. That's really helpful. I appreciate that, guys. And that flooring business does seem pretty interesting, just given the exposure to some good secular growth themes like on-shoring, e-commerce, et cetera. Can you maybe just talk about that piece a little bit more, how the product offering is a bit differentiated? And then secondly, can you maybe speak to how the go-to-market strategy or the sales strategy, I guess, is a little bit different than your legacy business?

知道了。這真的很有幫助。我很感激，夥計們。考慮到一些良好的長期成長主題，如在岸業務、電子商務等，地板業務似乎確實相當有趣。您能否再多談談這一點，即產品提供的差異化程度如何？其次，我想您能否談談進入市場策略或銷售策略與您的傳統業務有何不同？

Sure. I mean, I'll start, and Matt can add additional comments if I miss some things. But if you look at that business, it really differentiates itself on the coating that's applied to the wood substrate. So it is an engineered wood product that is procured from a third-party supplier. Then UW Solutions has created and then applies its own proprietary coating on that engineered wood product to create not only a very durable surface, but also a surface that has very smooth and consistent thickness properties.

當然。我的意思是，我會開始，如果我錯過了一些事情，馬特可以添加額外的評論。但如果你觀察一下這項業務，你會發現它在應用於木質基材的塗層上確實與眾不同。因此，它是從第三方供應商採購的工程木製品。然後，威斯康辛大學解決方案公司創建了自己的專有塗層，並將其應用到該工程木製品上，不僅創造了非常耐用的表面，而且還創造了具有非常光滑和一致厚度特性的表面。

That becomes very important when you start to run different robots and automated equipment over that flooring. So the smoother, flatter that surface is, the easier it is for that robot to move around on that flooring, and it simplifies some of the software that has to be developed to make those automated robots effective.

當您開始在該地板上運行不同的機器人和自動化設備時，這一點變得非常重要。因此，表面越光滑、越平坦，機器人就越容易在地板上移動，並且它簡化了為使這些自動化機器人發揮作用而必須開發的一些軟體。

The other piece is -- basically, think of it as sold in panels. That makes it easy to install. Most of the business or a large portion of the business goes into mezzanine flooring. So think of a distribution center that wants to add a mezzanine to basically create more inventory capacity, which has been a big driver even in some of the micro-fulfillment centers that have popped up over the last few years.

另一件是——基本上，可以將其視為以面板形式出售。這使得安裝變得容易。大部分業務或很大一部分業務都涉及夾層地板。因此，想像一個配送中心想要增加一個夾層，以基本上創造更多的庫存能力，即使在過去幾年出現的一些微型配送中心中，這也是一個很大的驅動力。

But because it's also a panel, in some cases, some of the customers have chosen to put metal strips in between those panels, which also can act as a way to charge the robots as they work across the floor, so there's some additional productivity and efficiencies that that solution brings to those customers.

但因為它也是一個面板，在某些情況下，一些客戶選擇在這些面板之間放置金屬條，這也可以作為機器人在地板上工作時為其充電的一種方式，因此有一些額外的生產力和該解決方案為這些客戶帶來的效率。

The different go-to-market is really around, I would say, both the channel and who's driving the selection process. UW has really worked to create some strong partnerships with some of the robotics companies. When they're selling their robotic equipment, they're actually calling out for ResinDEK to be specified as the flooring solution to be put in place.

我想說，不同的進入市場實際上取決於管道和誰在推動選擇過程。華盛頓大學確實致力於與一些機器人公司建立一些牢固的合作關係。當他們銷售機器人設備時，他們實際上是在呼籲將 ResinDEK 指定為要實施的地板解決方案。

Now they also do sell straight out to other system integrators and even through some contractors that are just putting -- either replacing flooring or putting in mezzanine flooring. And we think there's an opportunity there to maybe tap into some of our relationships on the building product side. But it is a different go-to-market. We haven't really had a focus, as we've talked about before.

現在，他們也直接出售給其他系統整合商，甚至透過一些剛安裝的承包商——更換地板或安裝夾層地板。我們認為這裡有機會利用我們在建立產品方面的一些關係。但這是一種不同的市場進入方式。正如我們之前討論過的那樣，我們並沒有真正確定重點。

We know we sell some entrance systems and punch out commercial windows into, say, a new manufacturing plant or distribution center, but that's such a small dollar sale for us. It's not a focus area. So this brings some more attention for our teams to look at manufacturing, distribution centers, warehouses, and potentially even data centers. There's some work to do on the flooring in terms of fire rating, but data centers provide a long-term opportunity as well.

我們知道我們銷售一些入口系統，並在新的製造工廠或配送中心打出商業窗戶，但這對我們來說只是一筆很小的銷售額。這不是一個重點領域。因此，這讓我們的團隊更加關注製造、配送中心、倉庫，甚至可能是資料中心。在地板的防火等級方面還有一些工作要做，但資料中心也提供了長期的機會。

Very cool business. I'll be interested to dig into it a little bit more. And then maybe just last one for me is just on Project Fortify. Can you just make it easy for us and let us know how much restructuring is left for the next two quarters?

非常酷的生意。我有興趣進一步深入研究它。也許對我來說最後一項就是 Project Fortify。您能否讓我們輕鬆一下並讓我們知道接下來兩個季度還剩下多少重組工作？

Yes, so from -- I'd comment two things. From a charges perspective, we're looking -- I think we've got, project to date, charges of about $14.7 million, and we ranged that between $15 million and $16 million. So not much more, I would say, coming in Q3. And then from a savings perspective, we raised our range. We were previously at a $12 million to $14 million annual operating -- or annual run rate.

是的，所以我要評論兩件事。從收費的角度來看，我認為迄今為止，我們已經收到了約 1,470 萬美元的費用，我們的收費範圍在 1,500 萬美元到 1,600 萬美元之間。所以我想說，第三季不會有更多。然後從節省的角度來看，我們提高了範圍。此前，我們的年營業額（或年運轉率）為 1,200 萬至 1,400 萬美元。

We moved that range to $13 million to $14 million. So we're seeing ourselves coming in a little bit towards that high end of that range on savings and still on track. We said we'd deliver 60% of that in fiscal '25, the rest in 26. So I think it's still panning out to be on that kind of a cadence. I'd say on track, a little bit favorable from our perspective, in how we're executing Project Fortify.

我們將範圍調整為 1300 萬至 1400 萬美元。因此，我們看到自己在節省方面已接近該範圍的高端，並且仍在正軌上。我們說過我們將在 25 財年交付其中的 60%，其餘的將在 26 財年交付。所以我認為它仍然會保持這種節奏。我想說的是，從我們的角度來看，我們執行 Project Fortify 的方式已經步入正軌，有點有利。

Excellent. I'll pass it on. Thanks very much.

出色的。我會把它傳遞下去。非常感謝。

Thanks Julio.

謝謝胡里奧。

Thanks Julio.

謝謝胡里奧。

Jon Braatz, KCCA.

喬恩‧布拉茨 (Jon Braatz)，KCCA。

Good morning, everyone.

大家早安。

Good morning, Jon.

早安，喬恩。

Hey, Jon.

嘿，喬恩。

Ty, going back to UW, would it be fair to say that most of their coatings are proprietary or custom solutions?

Ty，回到威斯康辛大學，可以公平地說他們的大多數塗層都是專有的或客製化的解決方案嗎？

Yes, I would look at -- let me characterize it this way, Jon. So RDC Coatings has some meaningful R&D capacity, deep coating expertise. You're talking even some PhDs in that operation. So they have worked to not create new molecules but find the right blends of different materials that they can put together that not only maximizes the performance of the coating itself, but then working directly with UW Solutions, the process manufacturing engineering team, to really maximize both the quality of the coating through the manufacturing process as well as the performance and also help drive higher throughput and yield.

是的，我會看看——讓我這樣描述它，喬恩。因此，RDC Coatings 擁有一些有意義的研發能力和深厚的塗料專業知識。你說的甚至是該手術中的一些博士。因此，他們努力不是創造新的分子，而是找到不同材料的正確混合物，將它們放在一起，不僅最大限度地提高塗層本身的性能，而且然後直接與製程製造工程團隊UW Solutions 合作，真正最大限制地提高塗層本身的性能。

So it's a great combination from that standpoint. The business historically has operated mostly on a -- think of it as on a trade secret model. They really are careful about disclosing anything specific on the recipe of the coatings or even the specificity of how the coatings are blended together. And then the same goes for the manufacturing process, they're very careful about disclosing the different steps they do in the process to really get down the best coating possible that gives them the durability and the quality of that performance.

所以從這個角度來看，這是一個很好的組合。從歷史上看，該業務主要以商業秘密模式運作。他們確實非常謹慎地披露有關塗料配方的任何具體信息，甚至塗料如何混合在一起的特殊性。製造過程也是如此，他們非常謹慎地披露他們在過程中所做的不同步驟，以真正獲得盡可能最好的塗層，從而賦予他們耐用性和性能品質。

So they enjoy higher margins than obviously some type of maybe commodity type of coating?

那麼他們顯然比某種可能是商品類型的塗料享有更高的利潤？

Absolutely, for sure.

絕對，肯定。

Okay, okay.

好吧，好吧。

And again, Jon, I would point to what I had said earlier. They do sell coatings externally. RDC Coatings was a standalone business, and Heartwood had worked to acquire and bring that into the fold because the significant volume for them was coming through UW Solutions, but the majority of the work they do is consumed internally now.

喬恩，我再說一遍，我想指出我之前說過的話。他們確實對外銷售塗料。RDC Coatings 是一家獨立的業務，Heartwood 一直致力於收購並將其納入其中，因為他們的大量業務來自威斯康星大學解決方案，但他們所做的大部分工作現在都在內部消耗。

Okay, okay. Do you anticipate, or was there any -- when you look at the performance of UW, were they capital constrained at all? Was there a constraint to their growth and that maybe with your balance sheet you can advance that a little bit further?

好吧，好吧。當你觀察威斯康辛大學的表現時，你是否預計，或者是否有任何資金限制？他們的成長是否受到限制，也許透過你的資產負債表你可以進一步推進一點？

Well, I think the good news is Heartwood Partners, the private equity firm that had acquired them, was really focused on positioning that business for long-term growth. So they've made some significant capital investments. So they saw the double-digit growth being driven in that flooring business. And in the last 18 months, they had done a significant capacity expansion. So we actually have a lot of runway to grow that business.

嗯，我認為好消息是收購它們的私募股權公司 Heartwood Partners 真正專注於定位該業務以實現長期成長。因此他們進行了一些重大的資本投資。因此，他們看到地板業務正在推動兩位數的成長。在過去 18 個月裡，他們進行了大規模的產能擴張。所以我們實際上有很多跑道來發展這項業務。

Okay, okay. And maybe going back to a previous question, can you talk a little bit about the performance of UW across the cycle? And obviously, there are some things that have happened over the past couple of years that may have moved the needle a little bit, maybe more so than is typical. But can you talk a little bit about, like I said, across the cycle, how you see the revenues and the profitability?

好吧，好吧。也許回到之前的問題，您能談談華盛頓大學在整個週期中的表現嗎？顯然，過去幾年發生的一些事情可能會帶來一些影響，甚至可能比典型情況更嚴重。但正如我所說，您能否談談整個週期中您如何看待收入和獲利能力？

Yes, if you were to look at those financials, clearly, in 2020-2021, there was a healthy bump as everything went to online and there was a need to quickly build out additional capacity in distribution centers. So they certainly enjoyed a very healthy jump and kind of drove the need to put additional capacity or have the wherewithal to know that that was going to be a need going forward.

是的，如果你看一下這些財務數據，很明顯，在 2020 年至 2021 年，隨著一切都轉向網上，出現了健康的增長，並且需要快速增加配送中心的額外產能。因此，他們當然享受了非常健康的跳躍，並推動了增加產能的需求，或者有必要的資金知道這將是未來的需求。

That of course settled back down. But then kind of with that big bump year behind them, they were able to start to get that business back onto a double-digit growth rate. It is significant. Again, we're not going to share the percentages from a market competitive standpoint, but it is significant exposure to R&R.

這當然又平靜下來了。但隨著那一年的大起大落，他們開始讓業務恢復兩位數的成長率。這很重要。同樣，從市場競爭的角度來看，我們不會分享這些百分比，但 R&R 的風險敞口很大。

So they are not relying on new manufacturing or new distribution centers to be built. Those certainly provide opportunities, and they certainly have sold into new construction. But we like the fact that when we look at the stuff that they have sold over the last three years it is -- the majority of it has gone to R&R. So someone in an older existing distribution center or manufacturing facility that they want to put mezzanine flooring or they're moving to robotics and they want to put that flooring in to simplify the robotic solution.

因此，他們並不依賴建造新的製造或新的配送中心。這些當然提供了機會，而且它們肯定已經被出售到新建築中。但我們喜歡這樣一個事實：當我們查看他們過去三年銷售的產品時，發現大部分都去了 R&R。因此，在現有的較舊配送中心或製造工廠中，有人想要放置夾層地板，或者他們正在轉向機器人技術，他們想要放置該地板以簡化機器人解決方案。

Okay. All right, Ty. Thank you very much. Appreciate it.

好的。好吧，泰。非常感謝。欣賞它。

Thanks, Jon.

謝謝，喬恩。

Thanks, Jon.

謝謝，喬恩。

Gowshihan Sriharan, Singular Research.

Gowshihan Sriharan，奇異研究。

Good morning, guys. Can you hear me?

早安，夥計們。你聽得到我嗎？

Yes, we can. Good morning.

是的，我們可以。早安.

Good morning. Congratulations on the acquisition. Just a question on the $100 million forecast for 2026 on the UW solutions. Does this projection primarily reflect the existing product offerings, or does it include the potential revenue from new products, cross-selling, if you could just give us some color on that.

早安.恭喜您成功收購。只是關於 2026 年威斯康星大學解決方案預計將達到 1 億美元的問題。這個預測主要反映的是現有的產品供應，還是包括新產品、交叉銷售的潛在收入，如果您能給我們一些說明的話。

Yes -- so yes, I think the $100 million, that's what we can see today with the current product offerings. Obviously, we want to -- we're still at a stage where we're learning more and more about that business and what we can do. And we've done a lot of diligence, obviously, through the acquisition process.

是的——所以是的，我認為這 1 億美元，就是我們今天可以在當前產品中看到的。顯然，我們希望——我們仍處於一個階段，我們正在越來越多地了解該業務以及我們能做什麼。顯然，我們在收購過程中做了許多努力。

So the $100 million is what we can see is something that we can do with the business today. We're, of course, going to get into that business and look for further opportunities. But it takes time to develop new products, new relationships, cross-selling opportunities. And while we'll pursue them, I would say there's not much of those built into the fiscal '26 number.

因此，我們現在可以看到，這 1 億美元是我們可以透過業務實現的。當然，我們將進入該業務並尋找更多機會。但開發新產品、新關係、交叉銷售機會需要時間。雖然我們會追求這些目標，但我想說的是，26 財年的數字中並沒有太多內容。

Okay. And a CapEx guidance for $40 million to $50 million dollars for this. Does that include any kind of additional CapEx for UW, or that's an additional on top of that?

好的。為此，資本支出指導為 4,000 萬至 5,000 萬美元。這是否包括華盛頓大學的任何額外資本支出，或者是除此之外的額外資本支出？

No, it doesn't, but I wouldn't expect that to be very material. As Ty said, I think they're coming into this acquisition in a good state. We'll continue to look at their CapEx needs as we roll into fiscal '26, but I wouldn't expect our CapEx spend for this year to be impacted materially by the acquisition.

不，不是，但我不認為這是非常重要的。正如泰所說，我認為他們在這次收購中處於良好的狀態。當我們進入 26 財年時，我們將繼續關注他們的資本支出需求，但我預計我們今年的資本支出支出不會受到收購的重大影響。

Okay, and do you have any color on the kind of CapEx that will be required to fully leverage the UW acquisition beyond '25?

好的，您對 25 年後充分利用華盛頓大學收購所需的資本支出有什麼看法嗎？

I think that's something we can get into as we start looking into fiscal '26. As we look at it, we have to balance those investments against the other priorities in our business and just make sure we're striking the right returns on our investments. So something as we get into fiscal '26, we'll be looking at.

我認為這是我們在開始研究 26 財年時可以討論的問題。在我們看來，我們必須平衡這些投資與業務中的其他優先事項，並確保我們的投資獲得正確的回報。因此，當我們進入 26 財年時，我們將專注於一些事情。

Yes, I would just add what I said earlier. Heartwood Partners had made a significant investment in coating capacity, and that was our question going in, double-digit growth on flooring, what's capacity look like? And the good news is a brand-new coater that's been running for over a year with really great yields and productivity and plenty of runway to add volume.

是的，我只想補充一下我之前所說的。Heartwood Partners 在塗料產能方面進行了大量投資，這就是我們的問題，地板領域的兩位數成長，產能是什麼樣的？好消息是一台全新的塗佈機已經運行了一年多，產量和生產率非常高，並且有足夠的跑道來增加產量。

Okay. I think you mentioned that the $30 million is not reflected in your sales forecast, or is that because you're still forecasting a decline of 4% to 7%? Is that you're seeing extra softness in the market or is that just not included in the sales forecast?

好的。我想你提到3000萬美元沒有反映在你的銷售預測中，還是因為你仍然預測下降4%到7%？您是否看到市場格外疲軟，或者只是未將其納入銷售預測中？

So the sales forecast that we gave does not include any fiscal '25 impact for the UW Solutions acquisition, just because at this point it's not closed, right? And we have to think about that to get closed and the timing of it. But I wanted to provide kind of an order of magnitude of what might happen if that acquisition was to close on November 21 so that from an EPS or revenue perspective, our current guidance does not include any fiscal '25 impact from UW Solutions acquisition.

因此，我們給出的銷售預測不包括 UW Solutions 收購對 25 財年的任何影響，只是因為此時收購尚未結束，對吧？我們必須考慮關閉的時間和關閉的時間。但我想提供如果該收購於11 月21 日完成時可能發生的情況的一個數量級，以便從每股收益或收入的角度來看，我們當前的指導不包括UW Solutions 收購對25 財年的任何影響。

Okay, and just one last question. On your last call, I think you mentioned that you'd be venturing beyond the west of the Rockies. Does the backlog reflect -- how much of the backlog is reflecting that transition out into the west of the Rockies?

好的，還有最後一個問題。在你上次打電話時，我想你提到過你將冒險越過落基山脈西部。積壓的訂單是否反映了——有多少積壓反映了向落基山脈西部的過渡？

Yes, I would say it's promising. We're seeing a lot more activity west of the Rockies. We obviously don't break out our backlog into that amount of detail, but I would say the team's making progress, and we're seeing a lot more activity in the west side of the US.

是的，我想說這是有希望的。我們在落基山脈以西看到了更多的活動。顯然，我們沒有將積壓的工作分解為如此詳細的信息，但我想說團隊正在取得進展，而且我們看到美國西部有更多的活動。

Yes, particularly for services. They've won some stuff out there. They have some nice projects that are in queue that they're waiting to get greenlighted to move them into their backlog that would boost their revenue for west of the Rockies as well.

是的，特別是對於服務業。他們在那裡贏得了一些東西。他們有一些不錯的項目正在排隊，等待獲得批准，將其移至積壓項目中，這也將增加落基山脈以西的收入。

Okay. That's it for me. Thank you.

好的。對我來說就是這樣。謝謝。

All right. Thank you.

好的。謝謝。

Thank you.

謝謝。

And I'm not showing any further questions at this time. I'd like to turn the call back over to Ty for any closing remarks.

目前我不會提出任何進一步的問題。我想將電話轉回給 Ty，讓他發表結束語。

All right. Well, great. Thank you very much for joining us today, and I look forward to providing another update in January. Have a great weekend.

好的。嗯，太好了。非常感謝您今天加入我們，我期待在一月份提供另一次更新。週末愉快。

Ladies and gentlemen, this concludes today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。