Apogee Enterprises Inc (APOG) 2025 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q3 2025 Apogee Enterprises Earnings Conference Call. (Operator Instructions). Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, Jeff Huebschen, Vice President, Investor Relations.

美好的一天，感謝您的支持。歡迎參加 Apogee Enterprises 2025 年第三季財報電話會議。（操作員說明）。請注意，今天的會議正在錄製中。（操作員指示）我現在想將會議交給今天的發言人，投資者關係副總裁 Jeff Huebschen。

Thank you, Josh. Good morning, everyone, and welcome to Apogee Enterprises fiscal 2025 third quarter earnings call. With me today are Ty Silberhorn, Apogee's Chief Executive Officer; and Matt Osberg, Chief Financial Officer. I'd like to remind everyone that there are slides to accompany today's remarks, and these are available in the Investor Relations section of Apogee's website.

謝謝你，喬許。大家早安，歡迎參加 Apogee Enterprises 2025 財年第三季財報電話會議。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。我想提醒大家，今天的演講附有幻燈片，這些幻燈片可以在 Apogee 網站的投資者關係部分找到。

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.

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

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。這樣，我會把電話轉給你，Ty。

Thank you, Jeff. Good morning, everyone. Thanks for joining us today. This morning, I'll share a few highlights from the quarter, discuss what we are seeing in our end markets and touch on how we're working to position the company for growth. Then I'll hand it over to Matt for more details on the quarter as well as our outlook. Let's start with the quarter highlights on page 4 of our presentation.

謝謝你，傑夫。大家早安。感謝您今天加入我們。今天早上，我將分享本季的一些亮點，討論我們在終端市場中看到的情況，並討論我們如何努力定位公司以實現成長。然後我會將其交給馬特，以了解有關本季度的更多詳細資訊以及我們的前景。讓我們從簡報第 4 頁的季度亮點開始。

Revenue in the quarter was in line with last year, despite seeing continued pressure from soft end market demand in nonresidential construction. As expected, this softness is primarily impacting our Framing and Glass segments. As volumes declined in Glass and Framing, we saw their margins moderate compared to the first half of the year.

儘管非住宅建築軟終端市場需求持續面臨壓力，但本季的營收與去年持平。正如預期的那樣，這種疲軟主要影響我們的框架和玻璃領域。由於玻璃和框架的銷量下降，我們看到它們的利潤率與上半年相比有所放緩。

Services continued to deliver positive sales and margin results as we executed projects in our backlog. Services year-to-date adjusted operating margin is now 7% within our 7% to 9% target range. The most notable highlight in the quarter was closing the acquisition of UW Solutions. The team is executing our integration plan, and we are encouraged by the early progress.

當我們執行積壓項目時，服務繼續帶來積極的銷售和利潤結果。服務業今年迄今調整後的營業利潤率為 7%，處於我們 7% 至 9% 的目標範圍內。本季度最引人注目的亮點是完成了對 UW Solutions 的收購。團隊正在執行我們的整合計劃，我們對早期進展感到鼓舞。

I'm very optimistic about how the team is coming together and the opportunities they see to leverage their shared capabilities to drive growth. Even after funding the acquisition, our balance sheet remains very strong, and we are well positioned to continue to deploy capital to drive shareholder value. We are actively cultivating our M&A pipeline, evaluating opportunities to add differentiated products that fit with our strategy and will be accretive to our long-term financial profile.

我對團隊如何團結起來以及他們看到的利用共享能力推動成長的機會非常樂觀。即使在為收購提供資金後，我們的資產負債表仍然非常強勁，我們有能力繼續部署資本來推動股東價值。我們正在積極培育我們的併購管道，評估增加符合我們策略的差異化產品的機會，並將增加我們的長期財務狀況。

Now let me offer some comments about the nonresidential construction market. As I mentioned earlier, nonresidential new construction remains challenging. Leading indicators such as the Architectural Billing Index have pointed to a contracting market for 20-plus months. We have and continue to see this softness in Framing Systems over the past several quarters and more recently, with awards slowing in our Architectural Glass segment.

現在讓我對非住宅建築市場發表一些評論。正如我之前提到的，非住宅新建工程仍然充滿挑戰。建築計費指數等領先指標已顯示市場將持續 20 多個月萎縮。在過去的幾個季度和最近，我們已經並將繼續看到框架系統的這種疲軟，我們的建築玻璃領域的獎項發放速度放緩。

I will note that ABI has improved the past two months which may signal a positive inflection point in the trend. The picture across different building types within non-res construction remains mixed. Interest rate sensitive sectors like office, commercial, lodging, and multifamily housing have been weaker. While verticals like education, health care and transportation continue to see growth. Across our architectural segments, we've continued to shift our mix toward the verticals with the highest growth opportunities.

我要指出的是，ABI 在過去兩個月有所改善，這可能預示著趨勢的積極拐點。非資源建築中不同建築類型的情況仍然很複雜。辦公室、商業、住宿和多戶住宅等利率敏感產業表現疲軟。而教育、醫療保健和交通等垂直行業則持續成長。在我們的建築領域，我們繼續將我們的組合轉向具有最高成長機會的垂直領域。

Notably, institutional projects, including health care, education and government are now the largest share of our backlog. Most industry forecasts call for a continuation of these trends in calendar '25. For example, slide 5 in our presentation shows FMI's forecast for 2025, which now reflects 1% growth in the overall market with continued declines in interest rate sensitive verticals and growth in institutional verticals that also benefit from government funding.

值得注意的是，包括醫療保健、教育和政府在內的機構計畫現在是我們積壓的最大部分。大多數行業預測都認為這些趨勢將在 25 年繼續下去。例如，我們簡報中的投影片 5 顯示了 FMI 對 2025 年的預測，目前反映了整體市場成長 1%，而利率敏感垂直產業持續下降，而機構垂直產業也受益於政府資金的成長。

We continue to take the view that the downturn in construction will be short and shallow. Most likely, we will continue to see pressure through the first half of our next fiscal year, primarily in Glass and Framing. Services will be executing a backlog that has been secured for much of our fiscal '26. Regardless of what happens in the overall market, our goal remains to outperform the industry.

我們仍然認為建築業的衰退將是短暫且淺的。最有可能的是，我們將在下一財年上半年繼續面臨壓力，主要是在玻璃和框架領域。服務部門將執行我們 26 財年大部分時間已確保的積壓工作。無論整個市場發生什麼，我們的目標仍然是超越產業。

Over the past several years, we built a much stronger operating foundation, driving sustainable improvements across our business, and our team has demonstrated that we can deliver margin expansion and earnings growth even without meaningful market growth. We are also now executing acquisitions as a growth lever to further enhance and transform our business providing us with exposure to higher growth areas and higher margins.

在過去的幾年裡，我們建立了更強大的營運基礎，推動了整個業務的可持續改進，我們的團隊已經證明，即使沒有有意義的市場成長，我們也可以實現利潤率擴張和獲利成長。我們現在也執行收購作為成長槓桿，以進一步增強和轉型我們的業務，為我們提供更高成長領域和更高利潤率的機會。

As we move forward, we intend to build on this foundation to drive long-term profitable growth. We will continue to diversify our sales mix, focusing on the best market opportunities. Within our Architectural segments. This means continuing to shift towards sectors of the market with higher growth rates.

隨著我們的前進，我們打算在此基礎上推動長期獲利成長。我們將持續實現銷售組合多元化，專注於最佳市場機會。在我們的建築領域。這意味著繼續轉向成長率較高的市場領域。

Most importantly, we will leverage the capabilities of UW Solutions to further expand into attractive market adjacencies. We are seeing positive momentum in industrial flooring, which gives us significant exposure to R&R in addition to new warehouse and distribution center opportunities overall.

最重要的是，我們將利用威斯康辛大學解決方案的能力，進一步擴展到有吸引力的鄰接市場。我們看到工業地坪領域的積極勢頭，除了整體上新的倉庫和配送中心機會之外，這也為我們提供了巨大的 R&R 業務機會。

We will continue to look for acquisition opportunities that accelerate our growth and further diversify our business mix. We will do this while maintaining our focus on productivity, execution, and cost management. These have been the foundation of our improvements over the past few years, and we continue to focus on these areas to ensure we perform at a high level.

我們將繼續尋找收購機會，以加速我們的成長並進一步實現業務組合多元化。我們將在做到這一點的同時，繼續專注於生產力、執行力和成本管理。這些是我們過去幾年改進的基礎，我們將繼續關注這些領域，以確保我們保持高水準的表現。

Fiscal '25 marks the end of the three-year plan we shared in November of calendar '21. As you would expect, our leadership team is working to build the next evolution of our strategy. The new plan will leverage our strong operational foundation but place a bigger emphasis on driving growth while continuing to expand our margin profile. We're still early in our process, but I am encouraged by the opportunities we see to position the company for future growth in both revenue and earnings. We plan to share additional details with you in the new fiscal year.

25 財年標誌著我們在 21 財年 11 月共享的三年計畫的結束。正如您所期望的，我們的領導團隊正在努力製定我們策略的下一個演變。新計劃將利用我們強大的營運基礎，但更加重視推動成長，同時繼續擴大我們的利潤率。我們仍處於起步階段，但我對我們看到的為公司未來收入和收益成長定位的機會感到鼓舞。我們計劃在新財年與您分享更多詳細資訊。

With that, I'll turn it over to Matt.

有了這個，我會把它交給馬特。

Thanks, Ty, and good morning, everyone. I'll start with a review of the results for the quarter and our updated outlook before I finish with some preliminary thoughts on how fiscal '26 is shaping up.

謝謝，泰，大家早安。我將首先回顧本季的業績和我們最新的展望，然後對 26 財年的發展提出一些初步想法。

Starting with the consolidated results for the third quarter, net sales were $341 million and included $8.8 million of inorganic revenue from UW Solutions. On an organic basis, net sales declined approximately 2%, primarily driven by lower volume in Glass, partially offset by continued double-digit growth in Services.

從第三季的合併業績開始，淨銷售額為 3.41 億美元，其中包括 UW Solutions 的 880 萬美元無機收入。從有機角度來看，淨銷售額下降了約 2%，主要是由於玻璃銷售下降，但部分被服務業持續兩位數成長所抵消。

Adjusted operating margin declined 70 basis points driven by unfavorable sales leverage from lower volume, a less favorable product mix and higher incentive compensation and lease expense. These drivers were partially offset by a more favorable mix of projects in Services and lower insurance-related costs. Adjusted diluted EPS was down 3%, coming in at $1.19, primarily driven by lower adjusted operating income.

調整後營業利潤率下降了 70 個基點，原因是銷售下降、產品組合較差以及激勵薪資和租賃費用較高，導致銷售槓桿不利。這些驅動因素被更有利的服務項目組合和較低的保險相關成本部分抵消。調整後攤薄每股收益下降 3%，至 1.19 美元，主要是由於調整後營業收入下降所致。

Turning to the segment results. framing net sales declined approximately 1% to $138 million, primarily reflecting a less favorable product mix, volume and Framing increased during the quarter and the rate of sales decline moderated significantly compared to the first half of the fiscal year. Adjusted operating margin in Framing declined to 9.8% reflecting a less favorable product mix, along with higher costs for freight and compensation.

轉向細分結果。 Framing 淨銷售額下降約 1%，至 1.38 億美元，主要反映產品組合較差，本季銷售量和 Framing 增加，與本財年上半年相比，銷售額下降幅度顯著放緩。Framing 的調整後營業利潤率下降至 9.8%，反映出產品組合較差，以及運費和賠償成本較高。

As expected, net sales in Glass declined this quarter as soft end market demand impacted volume. As we previously discussed, Glass has a high variable contribution rate, making margin rate sensitive to changes in volume and pricing. The lower volume levels this quarter were the main driver of the decline in adjusted operating margin. Services delivered its third straight quarter of double-digit net sales growth, with net sales growing 11%. Adjusted operating margin also continued to improve coming in at 8.6%, making this the fourth straight quarter of year-over-year margin expansion for Services.

正如預期的那樣，由於軟終端市場需求影響了銷量，本季玻璃的淨銷售額有所下降。正如我們之前討論的，Glass 具有較高的可變貢獻率，使得保證金率對數量和定價的變化敏感。本季銷售水準較低是調整後營業利潤率下降的主要原因。服務業連續第三個季度實現兩位數的淨銷售額成長，淨銷售額成長 11%。調整後的營業利潤率也持續提高，達到 8.6%，這使得服務業利潤率連續第四個季度同比增長。

Services backlog ended the quarter at $742 million compared to $792 million last quarter and was 4% lower than a year ago. Overall backlog levels remain healthy with nearly two years of sales in backlog; however, the declining trend over the past two quarters reflects the softness we've seen in the overall construction market.

本季末服務積壓金額為 7.42 億美元，上一季為 7.92 億美元，比去年同期減少 4%。總體積壓水準保持健康，積壓銷售已近兩年；然而，過去兩個季度的下降趨勢反映了我們在整體建築市場中看到的疲軟。

LSO sales grew 28% to $33.2 million primarily due to inorganic sales from UW Solutions. Organic net sales declined 6% as we continued to see lower volumes in the retail channel. Adjusted operating margin declined to 18.6%, reflecting unfavorable leverage from lower volume in the legacy LSO business and the dilutive margin impact from UW Solutions.

LSO 銷售額成長 28%，達到 3,320 萬美元，主要歸功於 UW Solutions 的無機銷售。由於我們繼續看到零售通路的銷量下降，有機淨銷售額下降了 6%。調整後營業利潤率下降至 18.6%，反映出傳統 LSO 業務銷售下降以及 UW Solutions 攤薄利潤率影響帶來的不利影響。

Corporate and other expenses increased to $8.8 million, which included $4.5 million of costs related to the UW Solutions acquisition. This was partially offset by lower incentive compensation costs and lower insurance-related expenses.

公司及其他費用增加至 880 萬美元，其中包括與 UW Solutions 收購相關的 450 萬美元成本。這被較低的激勵補償成本和較低的保險相關費用部分抵消。

Turning to cash flow and the balance sheet. Cash from operations remained strong but was below last year's record level. We generated $31 million of cash from operations in the quarter, bringing our year-to-date total to $95 million. During the quarter, we executed our $250 million delayed draw term loan to fund the acquisition of UW Solutions.

轉向現金流和資產負債表。營運現金依然強勁，但低於去年的創紀錄水準。本季我們從營運中產生了 3,100 萬美元的現金，使年初至今的現金總額達到 9,500 萬美元。本季度，我們執行了 2.5 億美元的延遲提取定期貸款，為收購 UW Solutions 提供資金。

We finished the quarter with a consolidated leverage ratio of 1.3 times and we expect to pay down debt in the coming quarters, further strengthening our financial position. We continue to have significant capacity available on our credit facility, giving us ample dry powder for further value-creating capital deployment.

本季末，我們的綜合槓桿率為 1.3 倍，我們預計將在未來幾季償還債務，進一步加強我們的財務狀況。我們的信貸安排繼續擁有大量可用能力，為我們進一步部署創造價值的資本提供了充足的乾粉。

Moving to our outlook for the full fiscal year. We now expect net sales to decline by approximately 5%. This includes the impact of approximately $30 million of incremental net sales from the UW Solutions acquisition as well as lower-than-expected volume in the fourth quarter, primarily in the Framing and Glass segments. Also, as a reminder, the fourth quarter will have the comparative impact of the incremental 53 week of activity in fiscal '24.

轉向我們對整個財年的展望。我們現在預計淨銷售額將下降約 5%。這包括收購 UW Solutions 帶來的約 3000 萬美元增量淨銷售額的影響以及第四季度銷量低於預期（主要是框架和玻璃領域）的影響。另外，提醒一下，第四季將產生 24 財年 53 週增量活動的相對影響。

We continue to expect full year consolidated adjusted operating margin will be approximately 11%, primarily driven by the strong margin performance in the first half of the year. We expect adjusted operating margin to decline sequentially in the fourth quarter, primarily due to the impact of lower volume and pricing pressure in Glass and Framing.

我們繼續預計全年綜合調整後營業利潤率將約為 11%，這主要是受到上半年強勁利潤率表現的推動。我們預計第四季度調整後營業利潤率將環比下降，這主要是由於玻璃和框架銷售下降和定價壓力的影響。

We expect that full year full fiscal year adjusted operating margins for Framing, Services and LSO will be within their respective target ranges with Glass finishing in the high teens for the year. We now expect full year adjusted diluted EPS will be at the bottom of our range of $4.90 to $5.20. This includes approximately $0.05 of dilution related to the UW Solutions acquisition and the impact of lower than previously expected volume in the fourth quarter in Framing and Glass. We continue to expect an effective tax rate of approximately 24.5% and now expect full year capital expenditures of $40 million to $45 million.

我們預計，框架、服務和 LSO 的全年調整後營業利潤率將在各自的目標範圍內，其中玻璃精加工業務的全年利潤率將達到兩位數。我們現在預計全年調整後攤薄每股收益將處於 4.90 美元至 5.20 美元區間的底部。這包括與 UW Solutions 收購相關的約 0.05 美元的稀釋以及第四季度框架和玻璃銷售低於先前預期的影響。我們仍預期有效稅率約為 24.5%，目前預計全年資本支出為 4,000 萬至 4,500 萬美元。

Looking ahead to fiscal '26, we are currently working through our budgeting process and expect to provide an outlook for the new fiscal year on our call in April. However, I thought it would be helpful to share some initial perspectives on next year. We are continuing to monitor economic and market trends and evaluate the potential impacts on our business. As Ty described, most forecasts call for continuation of current market trends. However, as more recent forecasts have been released, growth estimates for calendar '25 have consistently been revised downward.

展望 26 財年，我們目前正在製定預算流程，並預計在 4 月的電話會議上提供新財年的展望。不過，我認為分享一些對明年的初步看法會有所幫助。我們將繼續監測經濟和市場趨勢，並評估對我們業務的潛在影響。正如泰所描述的，大多數預測都要求當前的市場趨勢繼續下去。然而，隨著最近發布的預測，25 世紀的成長預測不斷下調。

We also see more uncertainty in the market with the incoming presidential administration and potential for several significant policy changes that could have wide-ranging impacts on nonresidential new construction. Near-term market conditions would generally have more impact on the Framing and Glass segments and less impact on the Services segment due to the longer-term nature of the projects in backlog.

我們也看到，隨著即將上任的總統政府的出現，市場存在更多的不確定性，並且可能出現一些重大政策變化，這些變化可能對非住宅新建工程產生廣泛影響。由於積壓項目的長期性，短期市場狀況通常會對框架和玻璃領域產生較大影響，而對服務領域影響較小。

In LSO, we continue to expect that UW Solutions will contribute approximately $100 million of net sales at an adjusted EBITDA margin of approximately 20% and will be accretive to adjusted diluted EPS. We also see an opportunity for organic growth in LSO as retail channel volumes recover and as we pursue growth in adjacent markets, leveraging the capacity investments we've made.

在 LSO，我們繼續預期 UW Solutions 將貢獻約 1 億美元的淨銷售額，調整後的 EBITDA 利潤率約為 20%，並將增加調整後的稀釋每股盈餘。隨著零售通路銷售的恢復以及我們利用我們所做的產能投資追求鄰近市場的成長，我們也看到了 LSO 有機成長的機會。

From an adjusted operating margin perspective, based on sustainable performance improvements we've achieved and a continued focus on executing our strategy, we see an opportunity for all four segments to be within their target adjusted operating margin ranges for next year. We have, however, identified some potential fiscal '26 operating income headwinds that we expect to put pressure on EPS growth.

從調整後的營業利潤率的角度來看，基於我們所實現的可持續績效改進以及對執行我們策略的持續關注，我們看到所有四個部門都有機會在明年調整後的營業利潤率目標範圍內。然而，我們已經發現了 26 財年營運收入的一些潛在不利因素，我們預計這些不利因素將對每股收益成長構成壓力。

Glass margins are expected to moderate from the high teens in fiscal '25 to be within the segment's long-term range of 10% to 15% in fiscal '26. Additionally, in fiscal '25, we have benefited from lower insurance-related costs and lower short-term incentive costs that are expected to be headwinds in fiscal '26. We are currently working through action plans to try to offset these items as well as prepare for other potential market headwinds.

玻璃利潤率預計將從 25 財年的十幾歲下降到 26 財年該部門 10% 至 15% 的長期範圍內。此外，在 25 財年，我們受惠於較低的保險相關成本和較低的短期激勵成本，預計這些成本將成為 26 財年的不利因素。我們目前正在製定行動計劃，試圖抵消這些因素，並為其他潛在的市場阻力做好準備。

Finally, due to the strong results we posted in the first half of fiscal 25, we expect the year-over-year comparisons to be most challenged in the first half of fiscal '26. Although we are facing some fiscal '26 headwinds, I'm excited about the potential of our business. The third quarter delivered solid results, and we are focused on managing through current challenges in the market while balancing strategic investments that will enable future growth.

最後，由於我們在 25 財年上半年發布了強勁的業績，我們預計 26 財年上半年的年比比較將面臨最大的挑戰。儘管我們在 26 財年面臨一些不利因素，但我對我們業務的潛力感到興奮。第三季取得了堅實的業績，我們專注於應對當前市場挑戰，同時平衡策略投資，以實現未來成長。

The acquisition of UW Solutions is expected to provide expanded opportunities for growth, and we continue to look for additional organic and inorganic investments to accelerate our strategy. With that, I'll turn it back over to Ty for some concluding remarks.

收購威斯康辛大學解決方案預計將提供更多的成長機會，我們將繼續尋找額外的有機和無機投資來加速我們的策略。至此，我將把它轉回給 Ty 進行一些總結性發言。

Thanks Matt. Let me close by recognizing our team for continuing to build momentum as we execute our strategy. I also want to thank everyone that's been involved with the UW Solutions acquisition and the great progress we've made to date with that business. The work we've done over the past year puts the company in a solid position. We've strengthened our operating foundation, built a more competitive cost structure, increased our mix of differentiated products and services and made investments to enable future growth.

謝謝馬特。最後，我要對我們的團隊在執行策略時不斷累積動力表示認可。我還要感謝參與 UW Solutions 收購的所有人以及我們迄今為止在該業務上取得的巨大進展。我們過去一年所做的工作使公司處於穩固的地位。我們加強了營運基礎，建立了更具競爭力的成本結構，增加了差異化產品和服務的組合，並進行了投資以實現未來的成長。

We've done this while continuing to generate significant free cash flow and maintaining a healthy balance sheet, allowing us to deploy further capital to support our strategy and drive shareholder value. With that, we are ready to take your questions.

我們在做到這一點的同時，繼續產生大量的自由現金流並保持健康的資產負債表，使我們能夠部署更多資本來支持我們的策略並提高股東價值。這樣，我們就準備好回答您的問題了。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Happy New Year. Can we maybe start with the Glass segment a little bit and talk a little bit about the in-market weakness you're seeing there. How are price and mix holding up in the segment and then secondly, how much lower should we be modeling 4Q sales dollars in Glass relative to 3Q because I think the guide implies some sequential step down from 3Q.

新年快樂。我們可以從玻璃細分市場開始，談談您在那裡看到的市場疲軟嗎？該細分市場的價格和組合情況如何，其次，我們應該將Glass 的第四季度銷售額建模為相對於第三季度低多少，因為我認為該指南意味著從第三季度開始會出現一些連續的下降。

Yes. Good question, Julio. So I think what you're seeing right now, especially in Q3, in Glass is more pressure on volume. The price is still kind of holding up, but my expectation is price will continue to be under pressure as volume pressure continues, and we do expect volume to continue to be under pressure in Q4 as we kind of laid out today.

是的。好問題，胡里歐。所以我認為你現在看到的，特別是在第三季度，Glass 的銷售壓力更大。價格仍然保持堅挺，但我的預期是，隨著成交量壓力持續，價格將繼續承壓，而且我們確實預計第四季度成交量將繼續承壓，正如我們今天所闡述的那樣。

In terms of how to think about it, I mean, yes, we talked about volumes coming down in Q4, primarily in Framing and Glass. I'd say most of that is in Framing, but there is some in Glass that's going to be due to pressure on price and volume.

就如何思考而言，我的意思是，是的，我們談到了第四季度的銷量下降，主要是框架和玻璃。我想說大部分是在框架中，但玻璃中也有一些是由於價格和銷量的壓力。

And I think just from a run rate perspective, I think it's something in the ballpark of around Q3, maybe a little bit above, maybe a little bit below, depending on how things shake out. But Q3 is probably a good benchmark for Q4.

我認為，僅從運行率的角度來看，我認為這大約是第三季左右的情況，可能高於一點，也可能低於一點，這取決於情況如何發展。但第三季可能是第四季的一個很好的基準。

Got it. That's very helpful. So I guess we should be thinking about a greater step down in the fourth quarter from a volume perspective in Framing than we should be in Glass. Is that fair?

知道了。這非常有幫助。因此，我想我們應該考慮在第四季度從數量角度來看，Framing 的銷售量比 Glass 的銷售量有更大的下降。這樣公平嗎？

Yes. That's fair. And I think the other thing that's in there, too, is Q4 has got the fiscal -- or the additional week of compare in last year. So that kind of makes it hard to parse that out specifically. But I think that there'll be more volume pressure in AFS than Glass.

是的。這很公平。我認為其中的另一件事是，第四季度已經有了財政——或者與去年相比的額外一周。所以這使得很難具體地解析它。但我認為 AFS 的體積壓力會比 Glass 更大。

Got it. Very helpful. And then talking about the UW acquisition a little bit. You mentioned some positive momentum in industrial flooring. Can you expand on that a little bit? And then also touch on the other two product lines, HD printable materials and Engineered Coatings, if you could?

知道了。非常有幫助。然後談談華盛頓大學的收購。您提到了工業地板的一些積極勢頭。能稍微擴充一下嗎？如果可以的話，還可以談談其他兩個產品線：高清可列印材料和工程塗料？

Yes. This is Ty. I'll take that one. So if you recall, industrial flooring was a little less than half of the revenue for that business, which -- the total business is about $100 million in sales. We like all parts of that business, but that was a significant part that really interested us in giving us a differentiated product in our portfolio, giving us exposure to the R&R and not having to rely so much on new construction build-out and it really opened the door for us for warehouse distribution and even manufacturing plants, which other than several thousand dollars per project on an entrance system basis, we didn't have a lot to sell in there.

是的。這是泰。我會接受那個。因此，如果您還記得的話，工業地板只佔該業務收入的一半不到，而該業務的總銷售額約為 1 億美元。我們喜歡該業務的所有部分，但這是一個重要的部分，我們真正感興趣的是在我們的產品組合中提供差異化的產品，讓我們能夠接觸到R&R，而不必過多依賴新的建築擴建，這確實是一個重要的部分。

So we weren't guiding specific to those product lines, but we have seen, I would say, better than what we expected in terms of pipeline opportunity growth. So we do think that, that part of the business is really going to drive UW Solutions revenue over the next couple of years and when you combine it in with LSO, especially with some of the softness they've seen on the retail side, we think that's a positive lift for the business overall, and it also has very strong margins.

因此，我們並沒有針對這些產品線進行具體指導，但我想說，就管道機會成長而言，我們看到的情況比我們預期的要好。因此，我們確實認為，這部分業務確實將在未來幾年內推動 UW Solutions 的收入，當你將其與 LSO 結合時，尤其是他們在零售方面看到的一些疲軟情況，我們我認為這對整體業務來說是一個積極的提升，而且它的利潤率也非常高。

If I could sneak one more in here is I really appreciate the preliminary fiscal '26 commentary you guys gave. Can you also maybe talk to the plans to deploy capital in fiscal '26 a little bit? I think you mentioned a pretty robust M&A pipeline. And then also, you talked about plans to continue to pay down debt. Any other commentary you could give there would be helpful.

如果我能在這裡再偷偷說一句的話，我真的很感謝你們對 26 財年的初步評論。能否稍微談談 26 財年的資本部署計畫？我認為您提到了相當強大的併購管道。然後，您也談到了繼續償還債務的計劃。您可以在那裡發表的任何其他評論都會有幫助。

Yes. Julio, so we're ending the quarter here at a 1.3 times ratio, so we've got current capacity that we can still deploy today. As you mentioned, we did call out that we will continue to pay down debt. Obviously, interest costs are high and the faster we can delever there, the less interest expense we'll have in fiscal '26. But we continue to have our foot on the accelerator from an M&A pipeline perspective.

是的。Julio，所以我們在本季結束時的比率為 1.3 倍，因此我們擁有今天仍然可以部署的當前容量。正如你所提到的，我們確實呼籲我們將繼續償還債務。顯然，利息成本很高，我們去槓桿化的速度越快，26 財年的利息支出就越少。但從併購管道的角度來看，我們繼續踩在加速器上。

We've got capacity to do a similar sized deal to UW Solutions today without further debt capacity. And so we continue to look at that as our number one priority for deploying capital.

今天，我們有能力完成與威斯康辛大學解決方案公司類似規模的交易，而無需進一步的債務能力。因此，我們繼續將其視為部署資本的首要任務。

Also, we're looking at other organic investments. We can continue to make internally to drive some growth and we'll continue to pay down debt while those are not available to us. But as those become available, we'll definitely turn our capital deployment strategy to driving those kind of organic and inorganic investments.

此外，我們也正在考慮其他有機投資。我們可以繼續內部創造來推動一些成長，我們將繼續償還債務，而這些債務是我們無法償還的。但隨著這些變得可用，我們肯定會轉變我們的資本部署策略來推動此類有機和無機投資。

Brent Thielman, D.A. Davidson.

布倫特·蒂爾曼，D.A.戴維森。

Just on -- Ty, you alluded to some of the forecasts out there by third parties just in terms of the market. But your Services business, I think, as one of those areas in the company that gives you a longer lead times gives you some visibility. Are the trends that you're seeing in terms of sort of bookings or quotes, anything any other KPIs within that business sort of aligning with what some of the third-party forecasts suggest about the market? Are they worse? Are they better? Just kind of curious what you're seeing in terms of underlying demand trends in that business.

剛才—Ty，您提到了第三方對市場的一些預測。但我認為，您的服務業務作為公司中為您提供更長交貨時間的領域之一，可以讓您獲得一定的知名度。您在預訂或報價方面看到的趨勢以及該業務中的任何其他 KPI 是否與一些第三方對市場的預測一致？他們更糟嗎？他們更好嗎？只是有點好奇您在該業務的潛在需求趨勢方面看到了什麼。

Yes. They would say it's aligning. We're not guiding yet for next year. But I think as we look at their backlog and how fiscal '26 is shaping up. They're probably going to demonstrate that they'll outperform the market a little bit.

是的。他們會說這是對齊的。我們還沒有為明年提供指導。但我認為，當我們查看他們的積壓訂單以及 26 財年的進展時。他們可能會證明他們會稍微跑贏大盤。

Even if they, let's say, we're flat year-over-year, we would see that as a win with everything else we're seeing in kind of the core project types. And that's a little bit of the flight to quality. We're certainly seeing that.

即使他們，比方說，我們與去年同期持平，我們也會認為這是我們在核心項目類型中看到的其他一切的勝利。這就是追求品質的一點點。我們當然看到了這一點。

As the markets have tightened up, they're getting looks and even second looks on some projects as a result of that. It does put a little pressure on their margin because as projects -- fewer projects, there's more people chasing fewer pieces of the pie. So there is a little bit of pressure there, but they've been executing on the productivity side that got them back into that 7% to 9%, and we expect they'll be operating within that 7% to 9% target range.

隨著市場收緊，他們開始關注甚至重新審視一些項目。這確實給他們的利潤帶來了一點壓力，因為項目越少，就會有更多的人追逐更少的份額。因此，那裡有一點壓力，但他們一直在提高生產力，這讓他們回到了 7% 到 9% 的水平，我們預計他們將在 7% 到 9% 的目標範圍內運作。

But overall, they would also say yes. There's definitely softness in the market, some choppiness again with projects looking like they're ready to go and then getting held before they give a firm yes on an award, so they're seeing a bit of that choppiness.

但總的來說，他們也會說是的。市場肯定是疲軟的，但又出現了一些波動，項目看起來已經準備好，然後在他們對獎項做出堅定的肯定之前就被擱置了，所以他們看到了一些波動。

Yes. And I mean, obviously, the Glass segment margins kind of reverted back to your target range this quarter. You've been saying that all along and that should eventually happen. Does the profile of new orders you're seeing in kind of this weaker market give you the confidence to stay within that target range. Matt, I know you did allude to fiscal 2026, you expect to do that.

是的。我的意思是，顯然，玻璃部門的利潤率在本季恢復到了目標範圍。你一直這麼說，這最終應該會發生。在這個疲軟的市場中，您看到的新訂單狀況是否能讓您有信心維持在該目標範圍內？馬特，我知道您確實提到了 2026 財年，您希望這樣做。

I guess just my concern is some impact to operating leverage here with volume down. So if you could just kind of walk through the pieces, I guess, what gives you the confidence to stay in that range in Glass and it was really tough market, -- would be helpful.

我想我只是擔心交易量下降會對營運槓桿產生一些影響。因此，如果你能簡單地瀏覽一下這些部分，我想，是什麼讓你有信心在 Glass 中保持在這個範圍內，而且市場確實很艱難，——將會有所幫助。

Yes. No, it's a good question, Brent. But yes, you did pick it up. I mean we are seeing a path for Glass to be in their target range next year. And like you said, -- they're going to be in the high teens this year, so even moderating into the middle of that range is a significant decline.

是的。不，這是一個好問題，布倫特。但是，是的，你確實撿到了它。我的意思是，我們看到了明年 Glass 進入目標範圍的道路。正如你所說，今年的數字將達到十幾歲，因此即使放緩至該範圍的中間也是一個顯著的下降。

But going back to your question is we've made real structural change in that business in terms of the productivity that we've got, the efficiency we've got and the way we go to market and the type of projects that we try and go after as well as looking at the value add that we can provide.

但回到你的問題是，我們已經在該業務中進行了真正的結構性變革，包括我們所擁有的生產力、我們所擁有的效率、我們進入市場的方式以及我們嘗試和實施的項目類型。並關注我們可以提供的附加價值。

So we believe that, that 10% is a floor for that business even in a challenged top line year and that we've got a real structural change built into that business from where it was three or four years ago that we can be within that 10% to 15% range even in a year with got some top line headwinds.

因此，我們相信，即使在營收面臨挑戰的年份，10% 也是該業務的底線，而且我們已經對該業務進行了真正的結構性變革，與三四年前相比，我們可以在這個範圍內即使在面臨一些營收逆風的一年內，其成長率也會在10% 至15% 之間。

Yes. And I would echo that. If you just look at the quarter, I mean, year-over-year, a little more than 20% decline in revenues and still delivered 14%-plus on the operating income side on the EBIT side. So I think that is evidence of what Matt just said if we're looking for proof points within that. We do expect the high value-add products, we are seeing pressure there.

是的。我也同意這一點。如果你只看這個季度，我的意思是，收入比去年同期下降了 20% 以上，但息稅前利潤的營業收入仍然增加了 14% 以上。所以我認為如果我們正在尋找其中的證據的話，這就是馬特剛才所說的證據。我們確實期望高附加價值產品，但我們也看到了壓力。

So not only volume from a bid perspective, we see coming down and they really started to feel that this quarter, and they can see that in the next couple of quarters. but they're also seeing pressure of, hey, we really wanted to have three or four of those additional high value adds in that insulated Glass unit. But -- we're trying to get this project to get greenlighted and we're trying to shave some dollars. So maybe we can only afford to pay for two or three of those high value adds in the IGU. So that affects mix a little bit.

因此，不僅從出價的角度來看，我們看到數量正在下降，他們在本季度確實開始感受到這一點，並且他們可以在接下來的幾個季度中看到這一點。但他們也看到了壓力，嘿，我們真的希望在隔熱玻璃單元中增加三到四個額外的高附加價值。但是——我們正在努力讓這個項目獲得批准，我們正在努力削減一些資金。因此，也許我們只能支付 IGU 中兩到三個高附加價值的費用。所以會稍微影響混音。

But even with that, as we project out, I think they're comfortably looking to stay in that 10% to 15%. And of course, that gives upside as volume turns, which we'll see how the calendar year starts to play out here. But if it starts to turn in the second half of calendar '25, then that starts to show up again from a mix and price standpoint, yes.

但即便如此，正如我們預測的那樣，我認為他們仍願意保持在 10% 到 15% 的水平。當然，隨著成交量的變化，這會帶來好處，我們將在這裡看到日曆年如何開始發揮作用。但如果它在 25 年下半年開始發生變化，那麼從組合和價格的角度來看，這種情況就會再次出現，是的。

Maybe just a last one, sort of a follow-on, I guess, to Julio’s question about capital allocation. I understand you want to pay down the debt, maybe Ty I mean extent that you want to focus on paying down debt and integrate UW. I'm sure you're still talking to other potential prospects on the acquisition side out there. Could you just kind of give us some flavor for what you might be looking for and is the acquisition pipeline active.

也許只是最後一個，我猜，是胡里歐關於資本配置問題的後續問題。我理解你想要償還債務，也許我的意思是你想要專注於償還債務並整合華盛頓大學。我確信您仍在與收購方面的其他潛在潛在客戶進行交談。您能否給我們一些您可能正在尋找的東西以及收購管道是否活躍的資訊。

Yes. I mean, our acquisition pipeline is very active. I think that market is also heating up. A lot of folks sat on the sidelines waiting for interest rates to kind of settle and hoping to have more bidders and processes. So we're seeing activity pick up on that.

是的。我的意思是，我們的收購管道非常活躍。我認為市場也在升溫。許多人坐在場邊等待利率穩定下來，並希望有更多的競標者和流程。所以我們看到這方面的活動增加。

That will be a focus for us, especially if we think, let's say, FMI is right, and it's kind of a flat year for non-resi, and that's still getting a lift from manufacturing plant and warehouse build-outs, which are still forecasted to be healthy growth rates.

這將成為我們關注的焦點，特別是如果我們認為，比如說，FMI 是正確的，而且今年對於非房地產來說是平淡的一年，而且這仍然受到製造工廠和倉庫擴建的推動，而這些工廠和倉庫的擴建仍然在成長。

So we will continue to focus there. Strategically, like we said, it has to fit within our capabilities, both from a -- think about it from a technology manufacturing process standpoint, and then we're looking to add more differentiated products like we got with UW Solutions that tend to also bring higher margin rates than the rest of our businesses.

所以我們將繼續關注那裡。從戰略上講，正如我們所說，它必須符合我們的能力，從技術製造工藝的角度考慮，然後我們希望添加更多差異化的產品，就像我們透過威斯康辛大學解決方案獲得的那樣，這些產品往往也帶來比我們其他業務更高的利潤率。

So we'll be opportunistic. We will use that strategic lens coupled with we want accretive margins. We wanted to continue to help lift our margin profile. But there's a growth emphasis there, too. We're looking to acquire things that are going to open up higher growth spaces for us as well.

所以我們會投機取巧。我們將利用這個策略視角，並結合我們想要的利潤成長。我們希望繼續幫助提高我們的利潤狀況。但這裡也強調成長。我們希望收購能夠為我們打開更高成長空間的東西。

Jon Braatz , KCCA.

喬恩‧布拉茨 (Jon Braatz)，KCCA。

Ty, Matt, you spoke a little bit about the industrial flooring market for UW. And I guess when you speak to the group there and you think about it, what kind of sensitivity might that end market have to higher interest rates and maybe a slower economy and maybe some of the transition administration transition. Is there any concern that, that market could weaken a little bit?

Ty、Matt，你們談到了華盛頓大學的工業地板市場。我想，當你與那裡的團體交談時，你會想到，終端市場對更高的利率、可能放緩的經濟以及可能一些過渡政府過渡可能有什麼樣的敏感性。是否有人擔心該市場可能會稍微走弱？

I think when we see that, remember this flooring is really driven not only by putting mezzanine floors in existing facilities, we do have some where it gets spec-ed in on first floor build-out, but it's the robotics component. So there's a benefit there that frankly, even with tight labor, et cetera, that creates an opportunity where people are looking to put robotics into their facilities to address some of the labor challenges or labor cost issues. It's also nice because it's about 80% R&R. So it's a retrofit of an existing facility. It's not relying new plant or new warehouse build-out.

我認為，當我們看到這一點時，請記住，這種地板不僅是透過在現有設施中放置夾層地板來驅動的，我們確實在一樓的擴建中指定了一些地板，但它是機器人組件。因此，坦白說，即使在勞動力緊張等情況下，這也是有好處的，這創造了一個機會，人們希望將機器人技術放入他們的設施中，以解決一些勞動力挑戰或勞動力成本問題。這也很好，因為大約 80% 都是 R&R。所以這是對現有設施的改造。它不依賴新工廠或新倉庫的建設。

Obviously, if consumer spending is picking up and sold the Walmart’s to Amazon, et cetera, see growth and want to continue to add to existing or build new facilities, that's a plus. But otherwise, I think that business for the next few years relatively insulated from that.

顯然，如果消費者支出正在回升，並將沃爾瑪賣給亞馬遜等公司，看到成長並希望繼續增加現有設施或建造新設施，那就是一個優勢。但除此之外，我認為未來幾年的業務相對不會受到這種影響。

Yes, there could be years where they get a couple of huge wins across a couple of sites that give them a big lift that gives them tough comps in the future year. But we like that business a lot. We're investing in that. We're going to continue to look at other areas we can add into the portfolio that gives us that type of exposure.

是的，可能會有幾年，他們在幾個網站上取得了一些巨大的勝利，這給他們帶來了巨大的提升，讓他們在未來的一年裡獲得了艱難的競爭。但我們非常喜歡這項業務。我們正在對此進行投資。我們將繼續尋找可以添加到投資組合中的其他領域，從而為我們提供此類風險敞口。

Okay. Matt, you mentioned a big win. How big is a big win -- how is going to move the needle for that group?

好的。馬特，你提到了一場巨大的勝利。一場大勝利有多大——將如何為該團隊帶來推動？

Yes, John, this is Ty. We won't get into those specifics. But again, that business, a little less than half of UW Solutions. It is a lot of smaller projects, I think, hundreds of thousands. However, they have some large accounts where someone could decide we're putting mezzanines in 10 facilities -- and we're doing robotics in everyone.

是的，約翰，這是泰。我們不會討論這些細節。但同樣，該業務略少於威斯康辛大學解決方案公司的一半。我認為這是很多較小的項目，有數十萬個。然而，他們有一些大客戶，有人可以決定我們在 10 個設施中放置夾層 - 我們正在每個設施中使用機器人。

And so now you're into 1 million-plus type of opportunity. But most of that business is a smaller dollar. Again, we like that too, right? We don't have to rely on a huge project win like we'd have to see in services, there's really been glass to move the needle for them.

所以現在您面臨超過 100 萬種機會。但大部分業務的金額都較小。再說一遍，我們也喜歡這樣，對吧？我們不必像服務業那樣依賴巨大的專案勝利，確實有玻璃可以為他們帶來推動。

Okay. Good. And then last, secondly, Ty, you've been investing -- making some investments in LSO in adjacent markets. And what kind of progress are you seeing in that regard? Can you give us a little update?

好的。好的。最後，第二，Ty，您一直在投資——在鄰近市場對 LSO 進行了一些投資。您在這方面看到了哪些進展？您能給我們一些最新消息嗎？

Yes. I would say we're seeing good progress. So in terms of building that opportunity pipeline, getting a couple of projects across the finish line. We've seen those positives. Obviously, we'd like more.

是的。我想說我們看到了良好的進展。因此，在建立機會管道方面，讓幾個項目衝過終點線。我們已經看到了這些正面因素。顯然，我們想要更多。

It's getting drowned out a little bit because of the retail side has been soft for them, and that's kind of hiding some of the gains that they're getting there. But they've got good momentum that we'll probably be putting a lot of attention on that business overall in our fiscal '26.

由於零售方面對他們來說一直很疲軟，所以它被淹沒了一點，這掩蓋了他們在那裡獲得的一些收益。但他們的勢頭良好，我們可能會在 26 財年對這項業務給予更多關注。

Yes. And one of the things I called out is we see a lot of growth -- organic growth opportunities in that legacy LSO business as well in fiscal '26.

是的。我指出的一件事是，我們看到了許多成長——傳統 LSO 業務以及 26 財年的有機成長機會。

(Operator Instructions) Gowshi Sri, Singular Research.

（操作說明）Gowshi Sri，Singular Research。

Yes. Just with the EPS guidance, what are the key factors that could potentially drive the performance towards the upper end of that range in Q4?

是的。僅根據每股盈餘指引，有哪些關鍵因素可能推動第四季業績達到該範圍的上限？

Yes. So Gowshi, this is Matt. We tried to be pretty thoughtful in directing people towards the bottom of that range for the year, which obviously all that plays out in Q4. And I think the big driver we're seeing there is just more pressure on volume than we expected. And so I think as we look at Q4, volume is probably our biggest variable that drives that what we're seeing now would put us towards the bottom of that $490 million to $520 million range.

是的。Gowshi，這是馬特。我們試圖非常深思熟慮地將人們引導到今年該範圍的底部，這顯然是在第四季度發生的。我認為我們看到的最大推動因素是銷售壓力比我們預期的更大。因此，我認為，當我們審視第四季度時，成交量可能是我們最大的變量，它推動我們現在所看到的情況將使我們跌至 4.9 億至 5.2 億美元區間的底部。

Okay. In terms of the UWS progress, can you give me a little more color on what synergies you're expecting? And I think you had like a target of $100 million contribution for FY26. Any update on that?

好的。就 UWS 的進展而言，您能給我更多關於您期望的協同效應的資​​訊嗎？我認為你們的目標是為 2026 財年捐款 1 億美元。有更新嗎？

Yes. So for F26, we're still projecting that we're going to have $100 million contribution from UW Solutions at about a 20% adjusted EBITDA margin and we do expect that to be accretive to EPS next year. And we do -- we have outlined that we are trying to achieve $5 million in synergy targets as we move through the next 12 to 18 months as we look at bringing in the business, we've already started to realize some, but we're working through the integration process here. And I'd say we're on track -- or where we expect it to be.

是的。因此，對於 F26，我們仍然預計 UW Solutions 將為我們提供 1 億美元的貢獻，調整後的 EBITDA 利潤率約為 20%，我們確實預計這將增加明年的每股盈餘。我們確實 - 我們已經概述了我們正在努力實現 500 萬美元的協同目標，因為我們在未來 12 到 18 個月內考慮引入業務，我們已經開始實現一些目標，但我們正在這裡完成集成過程。我想說，我們正在步入正軌——或者說是我們期望的方向。

Okay. And in terms of the market conditions and the changes for your long-term operating margins, I'm sorry, I might have missed this, but any particular number for the Architectural Framing that you're putting out on an update?

好的。就市場狀況和長期營業利潤的變化而言，很抱歉，我可能錯過了這一點，但是您在更新中發布的建築框架有任何具體數字嗎？

So Framing for this year, we expect Framing to be within its 10% to 15% range. And next year, we see the opportunity for them to be in their long-term range as well in fiscal '26.

因此，今年的框架，我們預計框架將在 10% 至 15% 的範圍內。明年，我們看到他們有機會在 26 財年進入長期範圍。

Thank you. I would now like to turn the call back over to Ty Silberhorn for any closing remarks.

謝謝。我現在想將電話轉回給泰·西爾伯霍恩 (Ty Silberhorn)，讓其發表結束語。

Thank you again for joining us today, and we look forward to providing you with another update in our April call as we close out our fiscal '25. Have a great rest of your week.

再次感謝您今天加入我們，我們期待在 25 財年結束之際，在 4 月的電話會議中向您提供另一項最新消息。祝你一週好好休息。

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

謝謝。會議到此結束。感謝您的參與。您現在可以斷開連線。