Armstrong World Industries Inc (AWI) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2024 Armstrong World Industries, Inc. Earnings Call. (Operator Instructions)

感謝您的支持。我叫貝利，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Armstrong World Industries, Inc. 2024 年第三季財報電話會議。（操作員指令）

I would now like to turn the call over to Theresa Womble, Vice President of Investor Relations and Corporate Communications. You may begin.

現在，我想將電話轉給投資者關係和企業傳播副總裁 Theresa Womble。你可以開始了。

Thank you, Bailey, and welcome, everyone, to our call this morning. On today's call, we have Vic Grizzle, our CEO; and Chris Calzaretta, our CFO, to discuss Armstrong World Industries' third quarter results and rest of year outlook. We have provided a presentation to accompany these results that is available on the Investors section of our company website.

謝謝你，貝利，歡迎大家參加我們今天早上的電話會議。今天的電話會議由我們的執行長維克·格里茲爾 (Vic Grizzle) 主持；以及我們的財務長 Chris Calzaretta 討論阿姆斯壯世界工業公司第三季的業績和今年剩餘時間的展望。我們已提供一份與這些結果相配套的演示文稿，可在我們公司網站的「投資者」部分查閱。

Our discussion of operating and financial performance will include non-GAAP financial measures within the meaning of SEC Regulation G. A reconciliation of these measures with the most directly comparable GAAP measures is included in the earnings press release and in the appendix of the presentation issued this morning. Both are available on our Investor Relations website.

我們對經營和財務績效的討論將包括美國證券交易委員會規則G 所定義的非GAAP 財務指標。 這些指標與最直接可比較的GAAP 指標的對帳表已包含在收益新聞稿和本年度發布的簡報的附錄中。兩份文件均可在我們的投資者關係網站上查閱。

During this call, we will be making forward-looking statements that represent the view we have of our financial and operational performance as of today's date, October 29, 2024. These statements involve risks and uncertainties that may differ materially from those expected or implied. We do provide a detailed discussion of the risks and uncertainties in our SEC filings, including the 10-Q filed earlier this morning. We take no obligation to update any forward-looking statements beyond what is required by applicable securities law.

在本次電話會議中，我們將做出前瞻性陳述，代表我們對截至今天（2024 年 10 月 29 日）的財務和營運表現的看法。這些聲明涉及風險和不確定性，可能與預期或暗示有重大差異。我們確實在提交給美國證券交易委員會的文件中詳細討論了風險和不確定性，包括今天早上提交的 10-Q 表。我們不承擔除適用證券法要求之外更新任何前瞻性聲明的義務。

With that housekeeping done, I will now turn the call over to Vic.

這些準備工作完成後，我現在將電話轉給維克。

Thank you, Theresa, and good morning, everyone, and thank you for joining our call. As we reported today, Armstrong delivered another quarter of strong results with record-setting third quarter sales and strong earnings growth, enabling us to once again raise our earnings guidance for full year 2024. Similar to last quarter, our teams executed well on all fronts while still facing muted market conditions as well as managing through two impactful hurricanes.

謝謝你，特蕾莎，大家早安，謝謝你們參加我們的電話會議。正如我們今天的報道，阿姆斯特朗又取得了一個強勁的季度業績，第三季度銷售額創下了歷史新高，盈利增長強勁，這使我們能夠再次上調 2024 年全年盈利預期。與上一季類似，我們的團隊在面臨低迷的市場環境以及經歷兩次影響深遠的颶風的情況下，各方面都表現良好。

Now to our customers and the communities impacted by Hurricanes Helene and Milton, we extend our sincerest hope for a quick recovery from the physical and economic damage from these storms. And to our teams at our Pensacola, Florida and Macon, Georgia facilities and our entire supply chain group, thanks to you for successfully managing through these storms with minimal interruption to our operations and to our customers.

現在，我們向客戶和受到海倫颶風和米爾頓颶風影響的社區致以最誠摯的祝愿，希望他們能夠盡快從這些風暴造成的物質和經濟損失中恢復過來。我們位於佛羅裡達州彭薩科拉和喬治亞州梅肯工廠的團隊以及整個供應鏈團隊，感謝你們成功度過這些風暴，將對我們的營運和客戶的影響降至最低。

This is a clear example of our agility and dedication to customer service and operational excellence, and I'm proud of this effort and the work of our 3,500 employees who exemplify his commitment to our -- to serving our customers every day.

這是我們敏捷性和對客戶服務和卓越營運的奉獻精神的一個明顯例子，我為這項努力以及我們 3,500 名員工的工作感到自豪，他們體現了他對每天為客戶服務的承諾。

Now taking a closer look at our third quarter results, total company sales and adjusted EBITDA were at record-setting levels each increased 11% from prior year results while adjusted diluted earnings per share increased 13%. These strong results were driven by contributions from our recent Architectural Specialty acquisitions of [3form] and BOK Modern, both of which are performing very well, along with solid AUV performance and specifically like-for-like price realization in our Mineral Fiber segment, strong manufacturing productivity gains and solid contributions from our WAVE joint venture also contributed nicely in the quarter.

現在仔細看看我們的第三季業績，公司總銷售額和調整後的 EBITDA 均創下歷史新高，較去年同期增長 11%，而調整後的每股攤薄收益增長 13%。這些強勁的業績得益於我們最近收購的建築專業業務[3form]和BOK Modern的貢獻，這兩家公司的表現都非常出色，同時還有穩健的AUV表現，尤其是礦物纖維部門的同價位價格實現，強勁製造業生產力的提高和我們 WAVE 合資企業的堅實貢獻也為本季做出了良好貢獻。

This collective performance was also modestly better than we had expected and contributed to the increase and our full year 2024 outlook, which Chris will talk more about here shortly. Our Mineral Fiber segment continued to perform well this quarter, even as market conditions remain mixed across our key verticals. Mineral Fiber net sales increased 3% on solid AUV performance, more than offsetting a modest decline in sales volumes.

這一整體表現也略好於我們的預期，並推動了成長和我們 2024 年全年的展望，Chris 將在此稍後詳細討論。儘管我們主要垂直行業的市場狀況仍然好壞參半，但我們的礦物纖維部門本季繼續表現良好。由於 AUV 業績穩健，礦物纖維淨銷售額成長 3%，足以抵銷銷售量的輕微下滑。

Our commercial teams executed well in the quarter, achieving strong like-for-like price along with some share gain in our retail channel. Together with this strong execution and contributions from our digital growth initiatives, Kanopi and Projectworks, we were able to largely offset overall market softness.

我們的商業團隊在本季表現良好，實現了強勁的同類價格以及零售通路的份額成長。憑藉強大的執行力以及我們的數位成長計畫 Kanopi 和 Projectworks 的貢獻，我們得以大幅抵消整體市場的疲軟。

Mineral Fiber adjusted EBITDA rose 8% in the quarter, and adjusted EBITDA margin reached almost 44%, marking the seventh consecutive quarter of year-over-year adjusted EBITDA margin expansion. And this result also is the strongest third quarter margin performance reported since 2019. These results reflect our ongoing ability to deliver strong AUV performance driven by consistent like-for-like pricing and productivity gains in our Mineral Fiber plants while remaining focused on quality and service.

礦物纖維調整後 EBITDA 本季上漲 8%，調整後 EBITDA 利潤率達到近 44%，這是調整後 EBITDA 利潤率連續第七個季度同比增長。這項結果也是2019年以來第三季利潤率表現最強勁的一次。這些結果反映了我們持續提供強勁的 AUV 性能的能力，這得益於我們礦物纖維工廠持續的同類定價和生產率提高，同時仍然專注於品質和服務。

In the quarter, our plants delivered service levels ahead of our targets. Measures like our perfect order measure and fill rates were at elevated performance levels. And as you've heard me discuss before, these KPIs measure performance in areas that are key to our industry-leading value proposition to our customers. Consistently providing our customers with high-quality products and best-in-class service levels help strengthen our market position and earn our pricing in the marketplace.

本季度，我們工廠的服務水準超出了我們的目標。我們的完美訂單量和填充率等指標都達到了較高的績效水準。正如您之前聽我討論過的，這些 KPI 衡量的是我們向客戶提供的行業領先價值主張的關鍵領域的績效。持續向客戶提供高品質的產品和一流的服務水準有助於我們鞏固市場地位並在市場上贏得價格。

The contribution from our plants goes hand in hand with the work our commercial teams do to differentiate Armstrong and continues to be foundational to our competitive advantage. Our Architectural Specialties segment also reported a strong quarter with net sales up 32%, accelerated by the inclusion of 3form that we acquired in April of this year, along with contributions from both Modern, which we acquired in the second half of 2023.

我們工廠的貢獻與我們的商業團隊為使阿姆斯壯脫穎而出所做的工作相輔相成，並繼續成為我們競爭優勢的基礎。我們的建築專業部門本季也報告了強勁成長，淨銷售額成長 32%，這得益於我們今年 4 月收購的 3form 的加入，以及我們在 2023 年下半年收購的 Modern 的貢獻。

On an organic basis, the segment generated net sales growth of 7% and as expected, this was a step-up from our organic sales performance in the first half of the year and was driven by solid performance across our broad portfolio, and specifically, activity in the transportation vertical to the large airport projects I've mentioned previously.

從有機角度來看，該部門淨銷售額增長 7%，與預期一致，較上半年的有機銷售業績有所提升，這得益於我們廣泛產品組合的穩健表現，具體而言，與我之前提到的大型機場專案相關的交通垂直領域的活動。

As we've discussed, these transportation projects are often large and multi-phased. I'm pleased to report our teams are doing a great job managing the complexity with supply chain coordination, construction and service quality. Being able to provide the level of service and coordination required to efficiently execute on these larger projects has become a differentiated advantage for Armstrong.

正如我們所討論的，這些交通項目通常規模龐大且分多個階段進行。我很高興地報告，我們的團隊在管理供應鏈協調、建立和服務品質的複雜性方面做得非常出色。能夠提供高效執行這些大型專案所需的服務和協調程度已經成為阿姆斯壯的差異化優勢。

Importantly, we are seeing more bidding activity turn into orders as projects begin to move forward. We mentioned being awarded a couple of Florida projects -- airport projects on our last call. This quarter, we were awarded six additional airport projects in various parts of the country. We continue to expect the federal funding for these projects to provide a multiyear opportunity for Armstrong.

重要的是，隨著項目開始推進，我們看到越來越多的投標活動轉化為訂單。我們提到，上次通話中我們獲得了幾個佛羅裡達項目——機場項目。本季度，我們又獲得了全國各地六個機場的專案。我們繼續期待聯邦政府對這些項目的資助能夠為阿姆斯壯提供多年的機會。

I'm particularly pleased with the earnings performance of our Architectural Specialties segment, with adjusted EBITDA increasing 27% and adjusted EBITDA margins above 20%, including with the impact of 3form. It's worth noting that the AS organic EBITDA margins have expanded every quarter in 2024, demonstrating we are executing the right actions in our pursuit of our stated goal of at least 20% adjusted EBITDA margin for this segment on an annual basis.

我對我們的建築專業部門的獲利表現特別滿意，調整後的 EBITDA 成長了 27%，調整後的 EBITDA 利潤率超過了 20%，其中包括 3form 的影響。值得注意的是，AS 有機EBITDA 利潤率在2024 年每季都在擴大，這表明我們正在採取正確的行動，以實現我們既定的目標，即該部門每年的調整後EBITDA 利潤率至少達到20% 。

Now overall market conditions are continuing to further stabilize. Activity continues to be positive in education, health care and transportation, along with data centers, while office activity appears to have stabilized with tenant improvement work slowly returning in parts of the country. Although a level of uncertainty remains, we are encouraged by what we are seeing across our verticals.

目前整體市場狀況正在持續進一步穩定。教育、醫療保健、交通運輸以及資料中心領域的活動持續保持積極態勢，而辦公大樓活動似乎已經穩定下來，部分地區的租戶改善工作正在緩慢恢復。儘管仍存在一定程度的不確定性，但我們對各個垂直領域的進展感到鼓舞。

As we have navigated these somewhat choppy and inconsistent demand conditions post COVID, the positive impact of our diverse set of end markets, the resilience of our business model and the consistent dependable execution of our organization has allowed us to deliver net sales and adjusted EBITDA growth every year since 2020.

在新冠疫情之後，我們應對了這些有些波動且不一致的需求狀況，得益於我們多元化終端市場的積極影響、我們業務模式的彈性以及我們組織一貫可靠的執行力，我們實現了淨銷售額和調整後EBITDA 成長自 2020 年起，每年如此。

And now let me pause here and allow Chris to provide some additional details on our financial results.

現在，請允許我在這裡暫停一下，讓克里斯提供有關我們財務結果的一些更多細節。

Thanks, Vic, and good morning to everyone on the call. As a reminder, throughout my remarks, I'll be referring to the slides available on our website, in slide 3, which details our basis of presentation.

謝謝，維克，祝電話中的各位早安。提醒一下，在我的整個演講過程中，我將參考我們網站上的第 3 張投影片，其中詳細介紹了我們簡報的基礎。

Beginning on slide 6, we discuss our third quarter Mineral Fiber segment results. Mineral Fiber sales were up 3% in the quarter, driven by favorable AUV of 4%, partially offset by modestly lower sales volumes. The increase in AUV was driven by strong like-for-like pricing with flat mix on a very strong prior year comparison. Market conditions continued to stabilize in the quarter, and our initiatives, along with higher volumes in our retail channel partially offset market softness.

從第 6 張投影片開始，我們討論第三季礦物纖維部門的表現。本季礦物纖維銷售額成長 3%，主要得益於 4% 的 AUV 成長，但銷量略有下降，部分抵消了這一成長。AUV 的成長是由強勁的同類定價和與去年同期相比持平的組合所推動的。本季市場狀況持續穩定，我們的舉措以及零售通路銷售的增加部分抵消了市場疲軟。

Mineral Fiber segment adjusted EBITDA grew by 8% with adjusted EBITDA margin expanding 200 basis points to 44% despite modestly softer volumes. Adjusted EBITDA margin expansion was primarily driven by the fall-through of AUV, gains from improved manufacturing productivity and higher equity earnings from our WAVE joint venture.

礦物纖維部門調整後 EBITDA 成長 8%，儘管銷售量略有下降，但調整後 EBITDA 利潤率擴大 200 個基點至 44%。調整後的 EBITDA 利潤率擴大主要得益於 AUV 的下降、製造業生產力提高帶來的收益以及我們 WAVE 合資企業的更高股權收益。

Manufacturing productivity in the quarter was ahead of our target and WAVE equity earnings were driven by favorable price cost, partially offset by lower volumes. These benefits more than offset an increase in SG&A, which was driven primarily by higher incentive compensation. I'm pleased with how our team executed in the quarter and their commitment to drive profitable Mineral Fiber growth, with a focus on consistent margin expansion despite muted market conditions.

本季的製造業生產力超過了我們的目標，WAVE 股權收益受到優惠的價格成本推動，但部分被產量下降所抵消。這些福利足以抵銷銷售、一般及行政開支的增加，後者主要由於更高的激勵性薪酬所致。我對我們團隊在本季度的表現以及他們致力於推動礦物纖維盈利性增長的承諾感到滿意，儘管市場狀況低迷，但他們仍專注於持續擴大利潤率。

On slide 7, we discuss our Architectural Specialties, or AS segment results. Robust sales growth of 32% in the quarter was driven primarily by an increase from our recent acquisitions of 3form and BOK Modern as well as organic sales growth primarily driven by some larger transportation projects, including the acquisitions of 3form and BOK, third quarter total AS adjusted EBITDA margin was 20%. And as we noted on our last call, we expected to see the top line growth of the organic AS business accelerate and continue to expand margins in the back half of the year.

在第 7 張投影片上，我們討論了建築專業或 AS 部分的結果。本季銷售額強勁成長 32%，主要得益於我們最近收購 3form 和 BOK Modern 帶來的成長，以及主要受一些大型交通項目推動的有機銷售額成長，包括收購 3form 和 BOK，第三季總 AS調整後的EBITDA 利潤率為20%。正如我們在上次電話會議上指出的那樣，我們預計有機 AS 業務的營收成長將加速，利潤率將在今年下半年繼續擴大。

We're encouraged that our third quarter results reflect that and expect sequential top line improvement in the fourth quarter. We are on track to deliver the approximately 18% adjusted EBITDA margin for the full year 2024 that we had outlooked for the total AS segment in April and July. We're also pleased with the performance of our recent 3form acquisition.

我們很高興看到第三季的業績反映了這一點，並預計第四季的營收將環比成長。我們預計將實現 2024 年全年約 18% 的調整後 EBITDA 利潤率，這與我們在 4 月和 7 月對整個 AS 部門的預測一致。我們對最近收購的 3form 的表現也感到非常滿意。

The integration plan is on track as we continue to leverage and scale the business on the Armstrong platform, while delivering innovative solutions and best-in-class service levels to our customers. As Vic noted, we're also encouraged by the positive momentum on bidding activity and order intake as we close out 2024 and as we continued positive activity in the transportation vertical.

隨著我們繼續利用和擴展 Armstrong 平台上的業務，同時為客戶提供創新的解決方案和一流的服務水平，整合計劃正在順利進行中。正如維克所指出的，隨著 2024 年即將結束，以及我們在運輸垂直領域繼續保持積極的活動，我們也對投標活動和訂單量的積極勢頭感到鼓舞。

Slide 8 highlights our third quarter consolidated company metrics in which we delivered double-digit growth for sales and earnings with adjusted EBITDA margins fairly consistent with the prior year. Notably, adjusted diluted net earnings per share grew 13%. The drivers of third quarter adjusted EBITDA growth are consistent with the first nine months of the year.

幻燈片 8 重點介紹了我們第三季度的綜合公司指標，其中銷售額和收益實現了兩位數增長，調整後的 EBITDA 利潤率與上年基本一致。值得注意的是，調整後每股攤薄淨收益成長了13%。第三季調整後 EBITDA 成長的驅動因素與今年前九個月一致。

And as we turn to page 9, we present our year-to-date consolidated company metrics, which reflect double-digit sales and earnings growth, with total company adjusted EBITDA margin expansion of 100 basis points. 2024 year-to-date performance was driven by our core value drivers, which are foundational to the profitability of our company.

第 9 頁展示了年初至今的綜合公司指標，這些指標反映了兩位數的銷售額和獲利成長，公司調整後的 EBITDA 利潤率擴大了 100 個基點。 2024 年迄今的業績是由我們的核心價值驅動因素推動的，這是我們公司獲利能力的基礎。

Incremental volume from acquisitions and growth initiatives consistent strong AUV performance and healthy equity earnings contribution from WAVE drove our adjusted EBITDA growth for the year-to-date period. These benefits more than offset the increase in SG&A a significant portion of which was driven by recent acquisitions.

收購和成長計畫帶來的增量、持續強勁的 AUV 表現以及 WAVE 帶來的健康的股權收益貢獻推動了我們年初至今的調整後 EBITDA 成長。這些收益足以抵銷銷售、一般及行政開支的增加，其中很大一部分是由於最近的收購而增加的。

Slide 10 shows our year-to-date adjusted free cash flow performance versus the prior year. The 9% increase was driven by higher cash earnings and lower capital expenditures, partially offset by unfavorable working capital changes.

投影片 10 顯示了我們今年迄今調整後的自由現金流表現與去年同期相比的情況。9% 的成長主要得益於現金收益增加和資本支出減少，但不利的營運資本變化部分抵消了這一增長。

As we expected and as noted on our last call, adjusted free cash flow generation accelerated in the third quarter, with 17% growth versus the prior year. We saw continued strong cash earnings and positive contributions from working capital in the third quarter. We remain confident in delivering double-digit adjusted free cash flow growth for the full year.

正如我們預期以及上次電話會議中指出的那樣，調整後的自由現金流產生在第三季度加速，較上年增長了 17%。第三季度，現金收益持續強勁，營運資本貢獻積極。我們仍有信心實現全年兩位數的調整後自由現金流成長。

Our demonstrated ability to consistently deliver strong adjusted free cash flow allows us to support all of our capital allocation priorities. Recall that our capital allocation priorities are first, to reinvest back into the business where we see the highest returns. Second, to execute strategic acquisitions and partnerships to create shareholder value. And third, to return cash to shareholders through dividends and share repurchases.

我們已證明有能力持續提供強勁的調整後自由現金流，這使我們能夠支持所有的資本配置優先事項。回想一下，我們的資本配置優先順序是，重新投資到我們看到最高回報的業務。第二，執行策略收購和合作以創造股東價值。第三，透過股利和股票回購向股東返還現金。

Just last week, we announced a 10% increase to our quarterly dividend, marking the sixth consecutive annual increase since the inception of our dividend program in 2018. This increase reflects our Board of Directors' continued confidence in our long-term growth strategy and evidences our ability to continue to return cash to shareholders.

就在上週，我們宣布季度股息增加 10%，這是我們自 2018 年股息計畫啟動以來連續第六年增加。這一成長反映了董事會對我們的長期成長策略的持續信心，也證明了我們有能力繼續向股東返還現金。

In the third quarter, we repurchased $15 million of shares and paid $12 million of dividends. As of September 30, 2024, we have $677 million remaining under the existing share repurchase authorization. With a healthy balance sheet and ample available liquidity, our ability and intent to complete additional acquisitions remains unchanged, and we remain committed to advancing all of our capital allocation priorities.

第三季度，我們回購了價值 1500 萬美元的股票，並支付了 1200 萬美元的股息。截至 2024 年 9 月 30 日，我們現有股票回購授權項下剩餘 6.77 億美元。憑藉健康的資產負債表和充足的可用流動性，我們完成額外收購的能力和意圖保持不變，並且我們仍然致力於推進所有資本配置優先事項。

Slide 11 shows our updated full year 2024 guidance. With strong profitability in the third quarter and our improved profitability outlook for the remainder of the year, we are increasing our guidance for adjusted EBITDA and adjusted diluted net earnings per share as well as modestly increasing our guidance for adjusted free cash flow. We have also tightened the range on our full year sales outlook.

投影片 11 顯示了我們更新的 2024 年全年指引。由於第三季的強勁獲利能力和今年剩餘時間獲利前景的改善，我們上調了調整後 EBITDA 和調整後每股攤薄淨收益的預期，並適度上調了調整後自由現金流的預期。我們也縮緊了全年銷售預期範圍。

As market conditions stabilize, we continue to expect full year Mineral Fiber volume to be down about 1%. We also continue to expect full year Mineral Fiber AUV to be above our historic average. Our sales outlook for the full year is in the range of 10% to 11% growth.

隨著市場狀況穩定，我們繼續預計全年礦物纖維產量將下降約 1%。我們也繼續預計全年礦物纖維 AUV 將高於我們的歷史平均值。我們預計全年銷售成長率在 10% 至 11% 之間。

Given solid third quarter performance and improved full year profitability expectations, we now expect total company adjusted EBITDA growth for the full year in the 12% to 14% range. An increase from our prior expectations of 10% to 13% growth. There are no material changes to our AS segment assumptions from our July outlook.

鑑於第三季業績表現穩健且全年獲利預期改善，我們目前預計全年公司調整後 EBITDA 總成長率將在 12% 至 14% 之間。高於我們之前預期的 10% 至 13% 的成長。與 7 月展望相比，我們的 AS 部門假設沒有重大變化。

For the full year, we expect adjusted free cash flow to grow 10% to 14% and expect adjusted diluted net earnings per share to now grow at 16% to 17%, and with about half of the increase in the EPS outlook driven by a lower effective tax rate compared to the prior year.

我們預計全年調整後的自由現金流將成長 10% 至 14%，調整後的每股攤薄淨收益將成長 16% 至 17%，其中 EPS 預期成長的一半左右是由與前一年相比，有效稅率較低。

Please note that additional assumptions are available in the appendix of this presentation. Our focus on driving profitable growth in light of a challenging market environment remains unchanged, and we expect 2024 will be our fourth consecutive year of net sales and earnings growth. The strong results we've delivered thus far and our robust growth outlook for the full year gives us confidence that we will finish 2024 strong and enter 2025 with positive momentum.

請注意，本簡報的附錄中提供了其他假設。在充滿挑戰的市場環境下，我們對推動獲利成長的關注始終沒有改變，我們預計 2024 年將是我們連續第四年實現淨銷售額和獲利成長。我們迄今為止的強勁業績以及全年強勁的成長前景使我們相信，我們將以強勁的勢頭結束 2024 年，並以積極的勢頭進入 2025 年。

And now I'll turn it back to Vic before we take your questions.

現在，在回答你們的問題之前，我將話題轉回給維克。

Thanks, Chris. As Chris summarized, we are well positioned for another record year of double-digit top and bottom line growth in 2024. We have momentum that we expect to carry forward into 2025, and I'm extremely proud of the accomplishments so far this year.

謝謝，克里斯。正如克里斯總結的那樣，我們已做好準備，在 2024 年再創兩位數的營收和利潤成長記錄。我們預計這種勢頭將延續到 2025 年，我對今年迄今為止的成就感到非常自豪。

Our product innovation remains focused on important attributes and solutions that are responding to current and future market needs. Products like our Templok energy-saving sealing products and our low and body carbon ceilings. With these products, we are directly addressing large macro trends that we believe will be important in driving our business for many years to come.

我們的產品創新仍然專注於響應當前和未來市場需求的重要屬性和解決方案。產品包括我們的 Templok 節能密封產品和我們的低碳天花板。透過這些產品，我們直接應對了宏觀大趨勢，我們認為這對於未來許多年推動我們的業務至關重要。

In our recent updates, we have discussed the significant role buildings play in both energy use and carbon emission with buildings contributing about 40% of all carbon emissions generated annually in the US. Within this, about 40% of energy consumed by commercial buildings is related to heating and cooling.

在我們最近的更新中，我們討論了建築物在能源使用和碳排放方面發揮的重要作用，建築物貢獻了美國每年產生的所有碳排放量的約 40%。其中，商業建築消耗的能源約40%與暖氣和冷氣有關。

I'd like to take a moment to elaborate on these trends that are driving the need for greater energy efficiency within these buildings. Now, one driver is the rapid expansion of data centers and the increasing adoption of AI technologies, both of which are pressuring the US electrical grid.

我想花點時間來詳細闡述推動這些建築物提高能源效率需求的趨勢。現在，其中一個驅動因素是資料中心的快速擴張和人工智慧技術的日益普及，這兩者都給美國電網帶來壓力。

According to the Electric Power Research Institute, data centers are projected to consume nearly 9% of the nation's electricity by 2030. That's up from 4% in '22. As AI is becoming more integrated into everyday technology, energy consumption is and will continue to increase considerably. For example, you may have seen the stat that a simple ChatGPT query uses 10 times the energy of a typical Internet search.

據電力科學研究所稱，到 2030 年，資料中心預計將消耗全國近 9% 的電力。這比22年的4%有所上升。隨著人工智慧越來越融入日常技術，能源消耗正在並將繼續大幅增加。例如，您可能已經看到這樣的統計數據：一個簡單的 ChatGPT 查詢所消耗的能量是典型網路搜尋的 10 倍。

Meanwhile, building owners aiming to decarbonize to achieve both energy and emission savings are adding to the strain on the electrical grid as they look to shift from natural gas to electric heating systems. The aging electrical power grid will struggle to keep up with this unprecedented increase in energy demand, raising serious concerns about the reliability and sustainability of electricity supply.

同時，建築業主希望透過脫碳實現節能減排，而他們希望從天然氣暖氣系統轉向電力加熱系統，這也增加了電網的壓力。老化的電網將難以跟上這種前所未有的能源需求成長，從而引發人們對電力供應可靠性和可持續性的嚴重擔憂。

So addressing the energy demands of buildings is a critical area of focus in order to lower the strain on the grid while redirecting energy to support newer applications like data centers and AI. We believe Armstrong has an important role to play here. Our Templok energy savings ceiling products provide up to 15% reduction in energy usage for heating and cooling of buildings, which is a significant cost savings for building operators. These products contribute to lowering the building's carbon emissions while maintaining thermal comfort for occupants and they are the first ceilings on the market that pay for themselves over time.

因此，解決建築物的能源需求是一個關鍵關注領域，以降低電網壓力，同時重新分配能源以支援資料中心和人工智慧等新應用。我們相信阿姆斯壯在這裡發揮著重要作用。我們的 Templok 節能天花板產品可將建築物供暖和製冷的能源使用量減少高達 15%，這對建築營運商來說是一筆巨大的成本節省。這些產品有助於降低建築物的碳排放，同時保持居住者的熱舒適度，並且它們是市場上第一批能夠隨著時間推移收回成本的天花板。

Taking this one step further, heating and cooling of buildings is also a main driver of peak electricity demand that has forced utility providers to build expensive grid capacity to handle these spikes in usage. Templok thermal storage can be leveraged during these peak hours, moderating demand and providing relief to electrical infrastructure when it's needed most.

更進一步說，建築物的供暖和製冷也是電力需求高峰的主要驅動因素，這迫使公用事業供應商建造昂貴的電網容量來應對這些用電高峰。在這些高峰時段，可以利用 Templok 熱能儲存來緩解需求並在最需要的時候為電力基礎設施提供緩解。

As utilities and grid operators seek solutions for grid stability, this kind of demand flexibility is becoming more critical for a more resilient energy system. Also in support of building energy savings is a regulatory driver for increased energy efficiency through new building codes and standards.

隨著公用事業和電網營運商尋求電網穩定的解決方案，這種需求靈活性對於更具彈性的能源系統變得更加重要。此外，透過新的建築規範和標準來提高能源效率的監管驅動也支持了建築節能。

One example is currently gaining momentum across the country, our enhanced building performance standards that are being introduced by state and local governments. That mandate-specific building level energy use and emission reductions. 13 cities in the US have implemented laws on these standards as of 2024, including New York City, Boston, St. Louis, and Seattle, to name a few.

一個例子是，目前正在全國範圍內大力推行的增強型建築性能標準，這些標準由各州和地方政府引入。該規定具體要求建築物層面的能源使用和排放減少。截至 2024 年，美國已有 13 個城市實施了有關這些標準的法律，其中包括紐約市、波士頓、聖路易斯和西雅圖等。

There are another 30 cities planning on launching similar laws by 2026. Now over time, we believe these standards will contribute to an acceleration of retrofitting older buildings, particularly Class B and Class C buildings in order to comply, but also to become more competitive. This is because new tenants know that buildings meeting these standards will be more economical to operate. The energy saving products we have launched are well positioned to help building owners reach these standards and will contribute to a renovation tailwind for years to come.

另外有30個城市計劃在2026年推出類似的法律。隨著時間的推移，我們相信這些標準將有助於加速舊建築的改造，特別是 B 級和 C 級建築，以達到標準，同時也提高競爭力。這是因為新租戶知道符合這些標準的建築的運作將更經濟。我們推出的節能產品能夠幫助建築業主達到這些標準，並將為未來幾年的改造帶來助力。

Now before turning to your questions, I would like to go back to a point I made earlier. So far in 2024, Armstrong has continued to demonstrate resilience in a challenging environment and is delivering consistent profitable growth. While it's too early to provide a detailed outlook for 2025, we do expect the foundational components of our growth algorithm to persist, and these include steady, consistent Mineral Fiber AUV growth supported by like-for-like pricing and market-driven product innovation, growth initiatives to drive Mineral Fiber sales volume above market level growth rates, growth from our Architectural Specialties through market penetration and acquisitions that are scaled on the Armstrong platform, manufacturing productivity improvements that offset inflation and expands margins.

在回答你們的問題之前，我想先回到我之前提出的觀點。截至 2024 年，阿姆斯壯在充滿挑戰的環境中繼續表現出韌性，並實現持續的獲利成長。雖然現在對2025 年做出詳細展望還為時過早，但我們確實預計成長演算法的基本要素將持續存在，其中包括礦物纖維AUV 的穩定、持續成長，這得益於同類定價和市場驅動的產品創新，成長計畫將推動礦物纖維銷售量高於市場水平的成長率，透過市場滲透和在阿姆斯壯平台上擴大規模的收購，實現建築特種產品的成長，提高製造生產力，抵消通貨膨脹並擴大利潤率。

As we continue to successfully execute our growth strategy, we are confident in our ability to generate strong and consistent free cash flow to fund future growth and provide an attractive return to shareholders through our dividend and share repurchase program. These are the hallmarks of Armstrong's business model that continue to drive consistent results through all parts of the economic cycle.

隨著我們繼續成功執行我們的成長策略，我們相信我們有能力產生強勁而持續的自由現金流來資助未來的成長，並透過我們的股息和股票回購計劃為股東提供有吸引力的回報。這些是阿姆斯壯商業模式的標誌，在經濟週期的各個階段繼續推動穩定的表現。

With this proven framework, again, we are confident in our ability to navigate a dynamic market backdrop, capitalize on the opportunities we see and deliver strong growth and profitability for years to come. With that, we'll be happy to take your questions.

憑藉這一經過驗證的框架，我們再次堅信我們有能力駕馭動態的市場背景、利用我們所看到的機會並在未來幾年實現強勁的成長和獲利。我們很樂意回答您的問題。

(Operator Instructions) Your first question comes from the line of Susan Maklari with Goldman Sachs.

（操作員指示）您的第一個問題來自高盛的 Susan Maklari。

Vic, my first question is thinking about Mineral Fiber volume growth given the backdrop that you outlined and some of these stabilizing factors or some of the green shoots that you're starting to see across some of the end markets and the different verticals. How are you thinking about the potential to get back to that longer-term volume outlook in Mineral Fiber? Any thoughts on the trajectory there? And maybe how that could to come through over the next several quarters?

維克，我的第一個問題是，在您所概述的背景和一些穩定因素或您在一些終端市場和不同垂直領域開始看到的一些復甦跡象的情況下，您如何看待礦物纖維的產量增長。您如何看待礦物纖維恢復長期銷售前景的潛力？對於那裡的軌跡有什麼想法嗎？以及這一目標在接下來的幾季中如何實現？

Yes, sure. The market that you're referencing really -- and we've talked about this in the last three or four quarters, We've really had a market that is stabilizing. And it's kind of moving sideways, even the bidding activity that we monitor on a quarter-to-quarter basis has been moving in a tight range over the last several quarters. And so we do feel like we've kind of stabilized and created a new base here, if you will, to go forward.

是的，當然。您所提到的市場實際上——而且我們在過去三、四個季度中已經討論過這個問題——我們的市場確實正在趨於穩定。而且它有點橫向移動，甚至我們按季度監控的競標活動在過去幾季中一直在狹窄的範圍內移動。因此，我們確實感覺到我們已經穩定下來，並且在這裡建立了一個新的基礎，可以繼續前進。

To your point, Susan, on the outlook. When I look at the outlook fundamentals and the building blocks for that outlook, that was in that 2% to 4% volume range. The building blocks are there. Now that we've stabilized and when you look at the distance from where we are to those pre-pandemic levels of volume, we have a tailwind of getting back to that from a market recovery. It's a big building block of that 2% to 4%. We do believe that, that's still intact. And it might be initially led by new construction with renovation to follow, which is an interesting dynamic in this particular cycle.

蘇珊，關於前景，正如你所說。當我觀察前景基本面及其構成要素時，我發現交易量處於 2% 到 4% 的範圍內。基礎構件就在那裡。現在我們已經穩定下來，當你看我們現在與大流行之前的交易量水平的差距時，你會發現，我們正面臨著市場復甦的順風，有望回到原來的水平。這是 2% 到 4% 的重要組成部分。我們確實相信，它仍然完好無損。並且它可能最初由新建設引領，隨後是翻新，這是這一特定週期中一個有趣的動態。

But the other is the growth initiatives, and we've been demonstrating our ability to generate somewhere around 1% and in some cases, slightly north of 1% volume gain to help us offset some of the market weaknesses that we've been experiencing in the last four or five, six quarters. That building block is still there. And so when you add energy savings, ceiling tiles, which were in the very early stages of that has another leg of growth to our initiatives that we're very excited about.

但另一個是成長計劃，我們已經證明了我們有能力創造大約 1% 的銷售成長，在某些情況下，略高於 1%，以幫助我們抵消我們在最後四、五、六個季度。那個構建塊仍然在那裡。因此，當您添加節能產品和處於早期階段的天花板磚時，我們的計劃將迎來另一個成長階段，我們對此感到非常興奮。

So I believe that building block is still intact and that gets you to that back into that 2% to 4% range. So we feel good about the outlook for the midterm. I think the question that you're alluding to here, Susan, is the rate and pace to we get back to that. So I'm confident in the building blocks there. I think the rate and pace. We still have to wait and see how some of this uncertainty kind of clears up for us so that the discretionary work can get back in the market as well.

因此我相信這個基礎模組仍然完好無損，這將使經濟成長回到 2% 到 4% 的範圍。因此，我們對中期選舉的前景感到樂觀。蘇珊，我認為你在這裡提到的問題是我們回到這個問題的速度和步伐。因此我對那裡的基礎十分有信心。我認為是速度和步伐。我們仍需拭目以待，看看這些不確定性如何解決，讓可自由支配的工作也能重返市場。

Yes. Okay. You're right on that. But I appreciate the color and that commentary in there. And then maybe turning to margins. You saw some really nice tailwinds from the productivity initiatives that you've been pursuing in the last couple of quartes. I guess as you look out, can you talk to the opportunity that's still out there? And any thoughts on how some of that may come through over time?

是的。好的。你說得對。但我很欣賞其中的色彩和評論。然後也許會轉向利潤。您在過去幾季中一直在推行的生產力舉措確實帶來了一些良好的推動力。我想，當您觀察時，您能談談仍然存在的機會嗎？您對其中一些內容隨著時間的推移可能會如何實現有什麼想法嗎？

Yes. We've actually established a multiyear history now, providing greater than 3% productivity. And it's really the approach that our teams are taking on the fundamentals of a lean methodology and we take a multiyear look at driving a pipeline of productivity programs so that each and every year, almost irrespective of what volume is doing, we're able to implement programs around scrap reduction, around uptime on our equipment and so forth. We have a pipeline.

是的。我們實際上已經建立了多年的歷史，提供了超過 3% 的生產力。這實際上是我們團隊採用的精益方法論的基本方法，我們多年來一直在關注推動一系列生產力計劃，以便每年，幾乎無論產量如何，我們都能夠實施有關減少廢料、延長設備正常運行時間等的計劃。我們有一條管道。

So when I think about going forward, that pipeline is intact. It's still very healthy. And therefore, our confidence, along with our expectation of continued greater than 3% productivity gains is intact, and we expect that to be part of the business model going forward.

因此，當我考慮繼續前進時，該管道是完好的。它還是很健康的。因此，我們的信心以及對生產力持續成長 3% 以上的預期仍然沒有改變，我們預計這將成為未來商業模式的一部分。

Your next question comes from the line of Keith Hughes with Truist Securities.

您的下一個問題來自 Truist Securities 的 Keith Hughes。

Input costs have been a tailwind for the whole year and pretty small here in the third quarter. Can you talk about what you're looking at for the fourth quarter and early next year? Again, this is in Mineral Fiber.

投入成本在全年都是順風，但在第三季度，投入成本的增幅相當小。您能談談對第四季和明年初的展望嗎？再次強調，這是礦物纖維。

Yes. Keith, it's Chris. So yes, exactly. For the fourth quarter, just to break down the components of our inputs, about 10% of our inputs are energy, pretty even split between electricity and gas. About 10% is freight and 35% is raw material related.

是的。基思，我是克里斯。是的，確實如此。就第四季而言，僅分解我們投入的組成部分，大約 10% 的投入是能源，電力和天然氣的分配相當均勻。約10%是運費，35%與原料有關。

So in the quarter, in the third quarter, we were seeing input costs in the low single-digit deflation level. with, call it, mid-single-digit deflation on freight, double digit deflation on energy and low single-digit inflation on raws. So I think for the fourth quarter, we're largely going to see a continuation of that as we finish out at the end of the year.

因此，在本季度，也就是第三季度，我們看到投入成本處於低個位數通貨緊縮水準。其中，貨運量出現中等個位數通貨緊縮，能源量出現兩位數通貨緊縮，原料出現低個位數通膨。因此我認為，在第四季度，我們將在很大程度上看到這種狀況的延續，直到年底。

When I look forward to 2025, just to take a step back and think about our raw material inputs, for example, about two-third of our spend is on contracted raws and some of those span multiple years and have some inflation tied to them. So I expect in '25, a modest level of inflation heading into the new year. But again, we don't see a lot of variability and volatility on our raw material inputs. The freight and energy components of our inputs can fluctuate from time to time. Too early to call yet what 2025 holds. That's some of the work we'll do as we finish the year and start modeling out 2025.

當我展望 2025 年時，只需退一步思考我們的原材料投入，例如，我們約有三分之二的支出用於合約原材料，其中一些跨越多年並且與通貨膨脹掛鉤。因此我預計，2025 年新年伊始，通膨水準將保持溫和。但同樣，我們沒有看到原料投入有太大的變化和波動。我們的投入的運費和能源成分可能會不時波動。現在預測 2025 年會發生什麼事還為時過早。這是我們在今年年底並開始規劃 2025 年時要做的一些工作。

So I believe that helps give you a little bit of context for the end of the year and looking into next year.

所以我相信這有助於為您提供一些有關年底和明年的背景展望。

That's very thorough. One other question, we had some nice growth here on Architectural -- organic growth on Architectural Specialties, you called out transportation. Is it particularly large as a part of AS sales or was it just this period of time that the end user market is doing particularly well?

這很徹底。還有一個問題，我們在建築領域取得了良好的成長 - 建築專業領域的有機成長，您提到了運輸領域。它是作為 AS 銷售的一部分而特別大嗎，還是只是在這段時間內最終用戶市場表現特別好？

Keith, it's a contributor for sure, right? Some of these projects are quite large. We've mentioned some of the large projects that are supporting that. But I wouldn't want to overemphasize the organic growth being tied specifically or only to airport projects. And I think, again, they're a meaningful contributor. But we're seeing some broad-based activity across our portfolio of businesses that are supporting this organic growth.

基思，這肯定是個貢獻者，對嗎？其中一些項目相當大。我們已經提到了一些支持這一點的大型專案。但我不想過度強調有機成長與機場專案具體相關或僅僅相關。而且我認為，他們再次做出了有意義的貢獻。但我們看到，我們的業務組合中出現了一些廣泛的活動來支持這種有機成長。

From some of the smaller locations in which we've added in recent years all the way up to the main metal and wood parts of our business. So I'm encouraged by the fact that it's the step-up is really broad-based. But certainly, these large airport projects are having a nice contribution. And really, when I think about our backlog, they're contributing to a nice healthy backlog that gives us confidence going forward in the next couple of years as well.

從近年來我們新增的一些較小的地點一直到我們業務的主要金屬和木材部分。因此，我很高興看到這項措施具有廣泛的影響力。但可以肯定的是，這些大型機場計畫正在做出良好的貢獻。事實上，當我想到我們的積壓訂單時，他們為健康的積壓訂單做出了貢獻，這也讓我們對未來幾年充滿信心。

Your next question comes from the line of Adam Baumgarten with Zelman & Associates.

您的下一個問題來自 Zelman & Associates 的 Adam Baumgarten。

One topic of AUV, just given the August price increase, which seemingly has gone pretty well. Do you expect AUV maybe to accelerate a bit on a year-over-year basis in 4Q to get to that -- to the guidance you've given?

關於 AUV 的一個話題，鑑於 8 月的價格上漲，看起來漲勢還不錯。您是否預計第四季度的 AUV 增速會比去年同期略有加快，以達到您給出的預期？

Yeah. We've had some nice realization really both in our February and our August price increases throughout the year. As you remember, we got back to some normalization with our price increases and the size of our price increases and the realization, again, has been really good. Teams have done a nice job on that.

是的。我們全年二月和八月的價格上漲確實實現了一些不錯的成果。正如你所記得的，我們的價格上漲以及價格上漲的幅度已經恢復正常，而且實現的效果也非常好。團隊在這方面做得很好。

What we didn't have in the third quarter was a strong positive mix component of AUV. In fact it was flat, as Chris mentioned, so what we expect in the fourth quarter is more contribution from the mix side as the channel mix kind of normalizes out and to your point, should be a bit of an acceleration on AUV in the fourth quarter versus our third quarter performance. Similar like-for-like pricing, but a little bit more contribution on the mix side.

我們在第三季沒有看到 AUV 的強勁正組合成分。事實上，正如克里斯所提到的那樣，它是持平的，所以我們預計第四季度來自組合方面的貢獻會更大，因為通路組合會逐漸正常化，正如你所說，第四季度的AUV 應該會有所加速與第三季的表現相比，這一季的業績表現更為出色。同類定價類似，但在組合方面貢獻稍大。

Okay. Great. And then just on SG&A in Mineral Fiber, it's been a year-over-year headwind for the past couple of years. It seems to maybe be moderating a little bit. How should we expect that to trend into the fourth quarter year and then maybe into 2025 at this point?

好的。偉大的。然後僅就礦物纖維的銷售、一般及行政費用而言，過去幾年來一直面臨逆風。看起來可能正在稍微緩和一些。我們現在應該如何預期這個趨勢會延續到第四季度，然後可能延續到 2025 年？

I'm sorry, what was the first part of that, Adam?

抱歉，亞當，那第一部分是什麼？

Just on Mineral Fiber SG&A has been a year-over-year headwind for the last couple of years or so. Is that moderating? It seems to down a little bit in the third quarter. How to think about that in 4Q and then into next year?

僅就礦物纖維而言，過去幾年來，銷售、一般及行政開支一直較去年同期下滑。這算是在主持嗎？第三季似乎有所下降。您如何看待第四季以及明年的情況？

Yes, Adam. So on the -- in the fourth quarter, I'd say a little bit of moderation versus Q3. When I take a step back and think about SG&A and looking forward to 2025, obviously, we've established a relatively foundational level for our growth investments. And the incremental on that has been relatively small.

是的，亞當。因此，我認為第四季與第三季相比會略有緩和。當我回顧並思考銷售、一般及行政開支並展望 2025 年時，顯然我們已經為我們的成長投資建立了一個相對基礎的水平。而且這方面的增量相對較小。

When I normalize for some of the items that we've talked about over the past couple of quarters, incentive comp being one of them and look forward to 2025, we'll continue to -- and we're looking to get our SG&A as a percentage of sales down below that 20% level and continue to focus on leveraging our investments and getting that operating leverage.

當我將過去幾季我們討論過的一些項目正常化時，激勵性薪酬就是其中之一，展望 2025 年，我們將繼續——我們希望我們的銷售、一般和行政費用將銷售額的百分比降至20% 以下，並繼續專注於利用我們的投資和獲得經營槓桿。

So Fourth quarter, I think, will be relatively similar to Q3, maybe a little bit better, but it's something that as we look forward to the new year to obviously continue to get that leverage from our investment base and continue to drive profitable growth.

因此，我認為第四季度的情況將與第三季度相對相似，甚至可能稍微好一些，但我們希望在新的一年繼續從我們的投資基礎中獲得槓桿作用，並繼續推動盈利增長。

Your next question comes from the line of Rafe Jadrosich with Bank of America.

您的下一個問題來自美國銀行的 Rafe Jadrosich。

For the fourth quarter, I think you said that for AS segment, you would have quarter-over-quarter revenue growth, which does imply like a pretty big acceleration. So the first question on this, like, is what's driving that? And then what does that imply for Mineral Fiber volume? And what are kind of the puts and takes there?

對於第四季度，我認為您說過，對於 AS 部門，您的收入將實現環比增長，這確實意味著相當大的加速。因此，第一個問題是，是什麼推動了這個現象？那麼這對於礦物纖維的體積又意味著什麼呢？那裡有什麼投入和產出？

Yes. It's Chris. So let me start with the second part first. So with Mineral Fiber volume kind of expecting a flattish fourth quarter on that particular side of the business, just to help frame that. Again, Vic outlined the AUV component. So AUV, a bit of a step-up from Q3, but with flattish volumes in Q4.

是的。是克里斯。因此我先從第二部分開始。因此，由於礦物纖維銷量預計第四季將持平，這只是為確定這種情況提供依據。維克再次概述了 AUV 組件。因此，AUV 比第三季略有成長，但第四季的銷量持平。

On the AS side, speaking specifically, I think you're referring to the organic component of the business and the top line growth that we're referring to there. So we do expect to see top line acceleration sequentially in the fourth quarter on the organic side of the business. And again, continued EBITDA margin expansion as we finish out the year organically. So hopefully, that helps frame that a bit for you.

就 AS 方面而言，具體來說，我認為您指的是業務的有機組成部分以及我們所指的營收成長。因此，我們確實預計第四季度業務的有機收入將環比增長。隨著我們以有機方式結束今年，EBITDA 利潤率繼續擴大。所以希望這能對你有幫助。

That's helpful on the components. And then just following up on an earlier question just on the SG&A cycle. If I go back four or five years, like the SG&A as a percent of sales is up quite a bit. You've made really significant investments in like Kanopi and Projectworks.

這對組件很有幫助。然後，我們來跟進一下先前關於銷售、一般及行政費用週期的問題。如果我回顧四、五年前，銷售、一般及行政費用佔銷售額的百分比會上升相當多。您對 Kanopi 和 Projectworks 等公司進行了非常重大的投資。

Can you talk about like the return you've seen on those investments? Where you are in those like the investment cycle for those? And then how do we think about that going forward?

您能談談這些投資的回報嗎？您處於投資週期的哪個階段？那我們該如何看待未來的發展呢？

Yes. Rafe, let me take that. The investments that we started really back in 2019 on these growth initiatives, the two of which you mentioned, and we continued through the pandemic, right? And that's the SG&A step-up that you've been -- you're referencing there.

是的。雷夫，讓我來接手。我們早在 2019 年就已經開始對這些成長計畫進行投資，也就是您提到的兩個，並且我們在整個疫情期間都繼續進行投資，對嗎？這就是您所提到的銷售、一般及行政費用 (SG&A) 的提高。

Those were some foundational investments because these were some real white space in which we are investing in. As we have talked about, we're kind of past the foundational. We are past the foundational investment levels for those initiatives and we're seeking the operational leverage, which we started in '23 to get, and we've continued in '24 to get good operating leverage on those initiatives.

這些都是一些基礎性投資，因為這些是我們正在投資的一些真正的空白領域。正如我們之前談到的，我們已經超越了基礎階段。我們已經超過了這些計劃的基礎投資水平，我們正在尋求營運槓桿，我們從'23年開始獲得這一槓桿，並且在'24年我們繼續在這些計劃上獲得良好的營運槓桿。

In fact, I've been reporting that, we've been EBITDA positive from those initiatives. That's going to continue. I don't think those investments -- the way we look at those particular platforms of initiatives going forward as needing the foundational level of investments going forward. So we're confident that we can continue to generate the operating leverage and get higher and higher returns on those initiatives.

事實上，我一直在報告，這些措施為我們帶來了正向的 EBITDA。這種情況將會持續下去。我不認為這些投資——我們看待這些特定平台和計劃的方式未來需要基礎層面的投資。因此，我們有信心能夠繼續發揮經營槓桿的作用，並從這些舉措中獲得越來越高的回報。

So we feel good about where we are with those. And again, I feel like now looking back, I'm glad that we continue those investments through the pandemic instead of cutting them or pairing them back because they're really materializing and helping us offset this continued weakness that's lingered on in the commercial markets. And so yes, I think going forward, we should continue to generate greater and greater operating leverage on those initiatives.

所以我們對於目前的狀況感到很滿意。我現在回想起來，我很高興我們在疫情期間繼續進行這些投資，而不是削減或縮減投資，因為它們確實發揮了作用，並幫助我們抵消了商業市場持續存在的疲軟。所以是的，我認為展望未來，我們應該繼續在這些措施上創造越來越大的經營槓桿。

Your next question comes from the line of Stephen Kim with Evercore.

您的下一個問題來自 Evercore 的 Stephen Kim。

This is [Latish] on for Steve. You touched on this a little bit in the script. For Mineral Fiber in the quarter, can you talk about which markets outperformed, underperformed? And then kind of looking forward, do you see any kind of shift in this and anything you're seeing right now?

這是 [Latish] 為史蒂夫主持的。您在劇本中稍微提到了這一點。對於本季的礦物纖維，您能談談哪些市場表現優異、哪些市場表現不佳嗎？然後展望未來，您是否看到這方面以及您現在看到的任何變化？

So on the Mineral Fiber side, the third quarter was very consistent than what we've been talking about the last couple of quarters in terms of the verticals, right? I think leading with office-office continues to be stabilized, but at a lower level and so softer conditions, whereas health care and education. Certainly, the transportation segment was -- were all positive contributors with data center is also contributing.

因此，就礦物纖維方面而言，第三季的表現與我們過去幾季所談論的垂直行業的情況非常一致，對嗎？我認為，以辦公室為主導的行業繼續保持穩定，但水平較低，條件也較寬鬆，而醫療保健和教育行業則保持穩定。當然，運輸部門都是積極的貢獻者，資料中心也做出了貢獻。

But again, transportation and data centers are relatively small verticals in the overall scheme of things. So consistent education, positivity, health care positivity, offset by continued softness in the overall office market, although we've seen continued signs of stabilization in that office market, which are really encouraging.

但從整體來看，運輸和資料中心只是相對較小的垂直產業。因此，持續的教育、積極性和醫療保健積極性，抵消了整體辦公市場持續疲軟的影響，儘管我們看到辦公市場持續呈現穩定的跡象，這確實令人鼓舞。

Your next question comes from the line of Garik Shmois with Loop Capital.

您的下一個問題來自 Loop Capital 的 Garik Shmois。

Just on the mix impact in 3Q on AUV. Just to be clear, is that mostly a function of the growth we saw in retail. And I guess just to drill in on the retail strength that you commented on. Was it primarily a load-in? Or are you see point-of-sale accelerate as well?

僅討論第三季對 AUV 的混合影響。需要明確的是，這主要是我們看到的零售業成長的結果。我想只是為了深入探討您所評論的零售實力。它主要是一種裝載嗎？或者您也看到銷售點加速成長？

Yes, Garik, on the mix impact, if it was nearly all on the channel mix and driven by retail. One of the things that I want to make sure I highlight is the underlying product mix of the business, which is driven by sales growing faster at the higher end of our portfolio, driven by our specification work. That continues to be a real positive and positive contributor like it has for years, frankly.

是的，Garik，就組合影響而言，如果它幾乎全部取決於通路組合併由零售推動。我想要強調的一件事是業務的底層產品組合，這是由我們產品組合高端的銷售成長更快所推動的，也是由我們的規範工作所推動的。坦白說，就像多年來一樣，這仍然發揮著真正的積極和積極的貢獻作用。

That's still moving forward, this quarter-to-quarter noise we can get sometimes on the retail channel is what we experienced in the third quarter that pushed the mix to flat overall. But what I mentioned in my prepared remarks, we were awarded some additional stores at one of our big box customers. We had earned that business based on really good service and the way that we're handling these accounts.

這仍在向前發展，我們有時會在零售通路上聽到這種季度間噪音，這正是我們在第三季所經歷的，它推動了產品組合整體持平。但我在準備好的演講中提到過，我們的一個大型客戶授予了我們一些額外的商店。我們憑藉優質的服務和處理這些帳戶的方式贏得了這項業務。

So we're happy to be awarded these accounts and these new stores, which require you to populate the shelves and to load in these new stores. And so that's what we experienced in the third quarter. And again, that is the overwhelming cause of the mix being dampened down in the third quarter.

因此，我們很高興獲得這些帳戶和新商店，這需要您填充貨架並在這些新商店中加載。這就是我們在第三季經歷的情況。這也是導致第三季組合表現疲軟的主要原因。

And maybe, Garik, just a reminder also in terms of full year AUV. So through nine months, we've seen really strong pricing and positive mix results on our year-to-date AUV performance, despite the Q3 impact that Vic mentioned.

也許，Garik，只是全年 AUV 而言的提醒。因此，儘管 Vic 提到了第三季度的影響，但在過去九個月中，我們看到了非常強勁的定價和積極的組合結果，這對我們今年迄今為止的 AUV 表現產生了影響。

Okay. That make sense. And then I wanted to follow up just on the comment you made around manufacturing productivity coming in ahead of your targets. I was wondering if you could maybe expand on that a little bit more? Is it related to some of those longer-term initiatives you called out with respect to cycle times and scrappage? Or is there anything maybe a little bit more besides those longer-term items that are driving some of the productivity improvements that you saw in the third quarter?

好的。這很有道理。然後我想跟進一下您關於製造業生產力超出目標的評論。我想知道您是否可以進一步詳細闡述這一點？這是否與您提到的與週期時間和報廢相關的一些長期舉措有關？或者，除了那些長期專案之外，還有其他因素推動了第三季的生產力提高？

Yes. One of the things I didn't mention that is very fundamental to your productivity is just running the plants really well, and not having a lot of downtime and just be very effective in the runs that we need to make. That was really a big foundational component of our productivity gains in the quarter as the plants were running very well. We had some record plant reliability numbers in some of our plants.

是的。我沒有提到的對你的生產力來說非常重要的一件事就是讓工廠運作良好，不要有太多的停機時間，並且在我們需要進行的運作中非常有效。由於工廠運作良好，這確實是我們本季生產力成長的重要基礎因素。我們的一些工廠的可靠性數據創下了歷史新高。

So it really starts with that. Fundamentally, you've got to run the plants really well. And then on top of that, with your initiatives around scrap reduction overall quality, first pass yield on quality. Some of the things that can drive costs up in the plant being really good on those fronts was the driver, and it's been consistent actually throughout the year, how well our plants have run.

所以一切確實就是從那時開始的。從根本上來說，你必須把工廠管理得非常好。最重要的是，您要採取措施減少廢品，提高整體品質和首件合格率。一些因素可能會導致工廠成本上升，但這些方面的良好表現是驅動因素，而且實際上全年我們的工廠運作都保持良好。

Your next question comes from the line of Kathryn Thompson with TRG.

您的下一個問題來自 TRG 的 Kathryn Thompson。

Just following up on a recent WAVE acquisition in the data center space, can you give a little bit more color on this acquisition? And also when you think about M&A and growing the Armstrong portfolio, more color in terms of how much you're focused on the data center space versus other areas for growth?

您最近剛在資料中心領域收購了 WAVE，能否詳細介紹一下這項收購？另外，當您考慮併購和擴大阿姆斯壯投資組合時，您會更專注於資料中心領域還是其他成長領域？

Yes, Kathryn, thanks for the question. Yes, data centers, we believe, is a terrific kind of new and emerging, if you will, vertical. We're very focused on it. There's a lot of opportunity for design and design trends to make them even more efficient, more energy efficient. So we're really excited about that space and what we can bring to it.

是的，凱瑟琳，謝謝你的提問。是的，我們相信，資料中心是一種極佳的新興垂直產業。我們非常關注此問題。設計和設計趨勢有很多機會使其更有效率、更節能。因此，我們對這個領域以及我們能為它帶來什麼感到非常興奮。

One of the fundamental things about data center design is the grid system because more and more is being suspended from the grid system, from cable trays to containment for heating and cooling separation. There's a lot of things that hinge on the design of that grid system in the ceiling. And that's really one of our strengths as a company. So we have a real right to play here that stems from really efficient design of that skeleton, if you will, in the ceiling.

資料中心設計的基本內容之一是網格系統，因為越來越多的東西被懸掛在網格系統上，從電纜托架到用於加熱和冷卻分離的容器。很多事情都取決於天花板網格系統的設計。這確實是我們公司的優勢之一。因此，我們有真正的權利在這裡進行表演，這源自於天花板上骨架的真正高效設計。

So this acquisition you're referring to is an extension of what we can bring into the ceiling and the ceiling grid system. It's really highly structural but it's componentry that's going to hang off of the grid system to provide more of the heating and cooling solution set that data centers are looking for.

所以，您所提到的這項收購是我們對於天花板和天花板網格系統的延伸。它確實具有高度的結構性，但它的組件將懸掛在電網系統之外，以提供資料中心所需的更多加熱和冷卻解決方案。

So it's an exciting area. It's a really small acquisition to get us started in this space to build off of our success in the grid system. And again, most of these data centers that we're working on most of them, the vast majority of them have ceilings in them. And this is how they control the environment for heating and cooling.

所以這是一個令人興奮的領域。這是一次非常小的收購，讓我們能夠在這個領域起步，並在電網系統的成功基礎上再接再厲。而且，我們正在建造的大多數資料中心，絕大多數都有天花板。這就是它們控制環境加熱和冷卻的方式。

So it's a nice upward opportunity for us and our WAVE joint venture, this acquisition was in that joint venture because they are at the point of the spear in terms of how we want to support given the importance of the structural grid system that goes in these data centers. So it's an exciting one. And it's an area of focus for us as a company, but certainly the WAVE joint venture.

因此，這對我們和我們的WAVE 合資企業來說是一個很好的上升機會，這次收購是在該合資企業進行的，因為就我們希望如何支援這些結構網格系統的重要性而言，它們處於領先地位。所以這是一件令人興奮的事。這是我們公司重點關注的領域，當然也是 WAVE 合資企業的重點領域。

How you go after business for data center? It's going to be different than some more of what I call traditional end markets, be it hospitality or office. How do you approach the strategy towards gaining growth and been gaining sales and gaining mind share specifically in data centers throughout the US?

您如何開展資料中心業務？它將不同於我所說的一些傳統終端市場，無論是酒店業還是辦公業。您如何實施成長策略、增加銷售並贏得客戶心智份額，特別是在美國各地的資料中心？

Well, the good news here, a lot of it is specification-driven, right? Architects are designing data centers and they're specifying what materials go in those data centers.

嗯，好消息是，很多都是規範驅動的，對嗎？建築師正在設計資料中心並指定這些資料中心使用哪些材料。

They're employing contractors to do the -- The model is actually quite similar. There are different sets of architects and in some cases, different sets of contractors. But the overall strength of how you win a specification plays right to Armstrong's -- to Armstrong's strength. So yes, that's how we plan to approach it.

他們僱用承包商來做——模型實際上非常相似。有不同的建築師，在某些情況下，也有不同的承包商。但贏得規範的整體實力與阿姆斯壯的實力正好相反——阿姆斯壯的實力。是的，這就是我們計劃處理這個問題的方式。

One of the things that we've done in our ceiling business around Projectworks and being able to automate the design we've been able to incorporate these structural grid components now in Projectworks. And so we're using the Projectworks tool also to drive automation and productivity for the architects and the contractors for these complex grid systems.

我們在 Projectworks 天花板業務中所做的事情之一就是能夠實現設計自動化，我們現在能夠在 Projectworks 中整合這些結構網格元件。因此，我們也使用 Projectworks 工具來幫助建築師和承包商實現這些複雜網格系統的自動化和提高生產力。

Yes. We're just finding in some of our work at the decision-making processes for data centers has been a big departure from other types of projects. And so that was really the driver for that question.

是的。我們在一些工作中發現，資料中心的決策過程與其他類型的專案有很大不同。所以這才是這個問題的真正驅動因素。

Next question comes from the line of Fiona Shang with Jefferies.

下一個問題來自 Jefferies 的 Fiona Shang。

This is Fiona Shang for (inaudible) Congrats on the good quarter. You mentioned the market conditions continues to stabilize. So just curious about your thoughts in terms of the recoveries as we're going into 2025? Should we expecting some more growth in the second half of 2025 following the rate cut?

我是 Fiona Shang，（聽不清楚）恭喜本季取得良好成績。您提到市場狀況持續穩定。所以我好奇您對 2025 年復甦的看法是什麼？降息後，我們是否應該期待 2025 年下半年實現更多成長？

Yes. When you peel the part -- the market apart for a second in terms of new and renovation, I think what's really visible is the new construction activity throughout 2024. It's been positive.

是的。當您將市場從新建和翻新的角度進行拆分時，我認為真正明顯的是整個 2024 年的新建築活動。這是積極的。

New construction starts on a square footage basis, has consistently outperformed the rental activity in 2024. So when I think about that pipeline of new construction activity in 2024, and I lag at 18 to 24 months out, that does say there could be in the second half of 2025 a tailwind of activity from new construction starts in 2024.

以平方英尺計算，新建築開工量在 2024 年的表現將始終優於租賃活動。因此，當我考慮 2024 年的新建築活動時，我會滯後 18 到 24 個月，這確實表明 2025 年下半年可能會出現 2024 年新建築開工活動的順風。

So we'll be looking for that. On the other part of the business, which is the larger part of our business, as you know, 70% of our demand profile comes from renovation activity of the installed base. That is going to be a little bit more dependent on some of the other factors interest rates being one of them, of course, I think, is going to drive.

所以我們會尋找它。就業務的另一部分，也就是我們業務的較大部分而言，如您所知，我們 70% 的需求來自已安裝基礎的翻新活動。這將更多地取決於其他一些因素，當然，我認為利率是其中之一。

But some of the uncertainty around what's going to happen to the economy and in the economy that will drive confidence for people to go ahead and release some of this discretionary renovation activity that we've been talking about, it's on the side lines today. That's really kind of, I think, one of the things we'll have to -- as we get further into the year and our planning process for next year to assess how much of that discretionary renovation activity will come back in and at what rate and pace to influence the overall demand profile for 2025.

但是，圍繞著經濟未來走向的一些不確定性，以及經濟內部的不確定性，將推動人們的信心繼續前進，並釋放一些我們一直在談論的可自由支配的翻新活動，今天這些不確定性都被擱置了。我認為，這確實是我們必須要做的事情之一——隨著我們進入今年的最後階段，以及我們在明年的規劃過程中，我們需要評估有多少可自由支配的翻修活動將恢復，以及恢復的速度是多少。

I would just say, I think in total, when I look across, there's more potential for tailwind opportunities going into 2025, then there are headwind opportunities to the business. So we'll have to see as we get closer to February, and we give our full year outlook. But that's kind of how we're thinking about it today.

我只想說，總的來說，當我放眼望去時，到 2025 年，順風機會的可能性更大，而逆風機會則更大。因此，我們必須觀察二月的臨近情況，然後才能給予全年展望。但我們今天就是這麼想的。

Perfect. That's helpful. And then just a quick follow-up. Margin expansion for Mineral Fiber this quarter was pretty good. So how should we think about the cadence for this segment going into 2025? Any color on margins or revenue will be helpful.

完美的。這很有幫助。然後只是快速的跟進。本季礦物纖維的利潤率成長相當不錯。那麼，我們該如何看待 2025 年這領域的節奏呢？利潤或收入的任何顏色都會有幫助。

Chris, do you want to take this?

克里斯，你想拿走這個嗎？

Yes, sure. So yes, healthy margins in Mineral Fiber. And again, you can see the performance relative to our best quarterly performance since 2019 for the third quarter. The way we think about margins in Mineral Fiber is just kind of going back to the building blocks and core value drivers that Vic outlined earlier, continued pricing execution.

是的，當然。所以是的，礦物纖維的利潤率很高。再次，您可以看到第三季的表現相對於我們自 2019 年以來的最佳季度表現。我們對礦物纖維利潤率的看法只是回歸到維克先前概述的基本要素和核心價值驅動因素，即持續的定價執行。

And again, we look at all of the inputs and components in order to determine our pricing for the year. and really at a minimum to offset inflation. It's the continued ability to drive manufacturing productivity in our plants, again, to drive that margin expansion.

再次，我們會考慮所有的投入和組成部分，以確定全年的定價。並且至少能夠抵消通貨膨脹。這再次推動了我們工廠持續提高製造生產率的能力，從而推動了利潤率的擴大。

And then again, all of the pull together of all of the execution in terms of controlling our costs, making disciplined investment decisions to get those returns should yield future and ongoing margin expansion. So that's how we look at the algorithm. That's how we look at the fundamentals of the business, and that's how we run the business is to continue to drive profitable growth with ongoing margin expansion.

再次，在控製成本、做出嚴謹的投資決策以獲得回報方面，所有執行措施的共同作用，應該會帶來未來和持續的利潤率擴大。這就是我們看待演算法的方式。這就是我們看待業務基本面的方式，也是我們經營業務的方式，即繼續透過不斷擴大利潤率來推動獲利性成長。

Your next question comes from the line of John Lovallo with UBS.

您的下一個問題來自瑞銀的約翰‧洛瓦洛 (John Lovallo)。

The first one is just on, I think, Vic, you characterized the Mineral Fiber volumes as sort of stabilizing, moving sideways. In the context of the slight decline in volume from Mineral Fiber that you guys posted in the quarter, where did the market or how did the market perform?

第一個問題，我認為，維克，你將礦物纖維的體積描述為一種穩定的、橫向移動的。在你們本季公佈的礦物纖維銷售量略有下降的情況下，市場表現如何？

And how much would you say are you outperforming? And as we move into next year, how do you see that kind of spread between the market and Armstrong's ability to outperform.

您認為您的表現有多出色？而隨著我們進入明年，您如何看待市場與阿姆斯壯的超越能力之間的差距。

John, the market overall seemed to be fairly consistent in the third quarter with what we've seen in the last two or three quarters to characterize it down low single-digit level. And I think our initiatives we've sized in that 1%, maybe slightly north of 1% in terms of incremental volume contribution. So not quite offsetting all of the market softness, but a good part of it. And that's been pretty consistent all year from the initiatives that we've talked about.

約翰，第三季的整體市場表現與過去兩、三個季度的情況相當一致，都處於個位數的低點。我認為我們的計劃已經將規模定在了 1% 以內，從增量貢獻來看，可能略高於 1%。因此，雖然不能完全抵消所有的市場疲軟，但可以抵消很大一部分。從我們所討論的舉措來看，這一情況全年都相當一致。

As I think about that going forward next year, I expect that we'll continue to -- from our growth initiatives, especially as we add new growth initiatives like the energy-saving ceiling tiles and our low and body carbon products, I think we have some confidence that our growth initiatives can continue to be in that one, slightly, again, greater than 1% contribution to the business, whatever the market gives us.

當我考慮明年的前景時，我預計我們將繼續——從我們的成長計劃，特別是當我們增加新的成長計劃，如節能天花板和我們的低碳產品時，我認為我們我相信，無論市場給予我們什麼，我們的成長計畫都能繼續為業務貢獻1% 以上。

And again, we're kind of moving into sideways here until some of this uncertainty clears up. But I would think that the delta between our market reality to our growth initiatives should still be in that 1%-plus range.

再說一遍，我們會繼續橫向盤整，直到一些不確定性因素消除。但我認為，我們的市場現實和成長計畫之間的差距仍然應該在 1% 以上的範圍內。

Okay. Make sense. And then at the beginning of the call, you guys mentioned the hurricane impact. And it's always a little bit uncomfortable to talk about the rebuild effort and what your role could be in that. But is there any opportunity for Armstrong to participate in the rebuild that will occur there ultimately?

好的。有道理。然後在通話開始時，你們提到了颶風的影響。談論重建工作以及你在其中可能扮演的角色總是會讓人有點不舒服。但阿姆斯壯是否有機會參與最終的重建工作？

Yes, it's early to tell, John, on that with this kind of a storm, it usually is later in the cycle versus early in the cycle. So I think to be determined.

是的，約翰，現在說這種風暴還為時過早，它通常出現在週期的後期而不是早期。所以我認為要下定決心。

I think like in similar storms, there's been a little bit, but it's not a big needle mover and material to the overall profile of the business. That's kind of how we're thinking about this one at this point, but it's kind of early to tell.

我認為，在類似的風暴中，雖然會產生一些影響，但不會對業務的整體狀況造成重大影響。這就是我們目前對這個問題的想法，但現在說還為時過早。

There are no further questions at this time. I will turn it back over to Vic Grizzle, President and CEO, for closing remarks.

目前沒有其他問題。我將把發言權交還給總裁兼執行長維克‧格里茲爾 (Vic Grizzle)，請他作最後發言。

Thank you all for joining our call today. Again, we're well positioned to finish the year strong, as Chris mentioned, and well positioned for whatever the market conditions happen to be in '25. And we're very pleased with the demonstration of really strong execution and the overall resilience of the business model, and we think that's going to continue as we go forward into 2025. So look forward to talking to you later. Again, thank you for joining.

感謝大家今天參加我們的電話會議。再次，正如克里斯所提到的那樣，我們已經做好了強勁收官的準備，無論 25 年的市場狀況如何，我們都能夠做好充分的準備。我們對強勁的執行力和商業模式的整體彈性感到非常滿意，我們認為，在 2025 年，這種勢頭將會持續下去。期待稍後與您交談。再次感謝您的加入。

This does conclude today's conference. You may now disconnect.

今天的會議到此結束。您現在可以斷開連線。