Builders FirstSource Inc (BLDR) 2024 Q3 法說會逐字稿

Please stand by. We're about to begin. Good day and welcome to the Builders FirstSource third-quarter 2024 earnings conference call. (Operator instructions)

請稍候。我們要開始了。美好的一天，歡迎參加 Builders FirstSource 2024 年第三季財報電話會議。（操作員說明）

I'd now like to turn the call over to Heather Anne Kos, Senior Vice President, Investor Relations for Builders FirstSource. Please go ahead.

我現在想將電話轉給 Builders FirstSource 投資者關係高級副總裁 Heather Anne Kos。請繼續。

Good morning and welcome to our third-quarter 2024 earnings call with me on the call are Dave Rush, our CEO; Peter Jackson, our CEO Designate and CFO; and Pete Beckman, our CFO Designate. As a reminder on September 19, we announced a plan CEO and CFO Secession.

早安，歡迎參加我們的 2024 年第三季財報電話會議，與我一起參加電話會議的是我們的執行長 Dave Rush； Peter Jackson，我們的候任執行長兼財務長；以及我們的候任財務長皮特貝克曼 (Pete Beckman)。作為提醒，9 月 19 日，我們宣布了 CEO 和 CFO 分離計劃。

The earnings press release and presentation are available on our website at investors.bldr.com. We will refer to the presentation during our call. The results discussed today include GAAP and non-GAAP results adjusted for certain items. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures.

收益新聞稿和簡報可在我們的網站 Investors.bldr.com 上取得。我們將在通話期間參考簡報。今天討論的結果包括針對某些項目調整的 GAAP 和非 GAAP 結果。我們提供這些非 GAAP 結果僅供參考，不應將它們與最直接可比較的 GAAP 指標分開考慮。

You can find the reconciliation of these non-GAAP measures to the corresponding GAAP measures where applicable and a discussion of why we believe they could be useful to our investors in our earnings press release, SEC filings and presentation. Our remarks in the press release presentation and on this call contain forward and cautionary statements within the meaning of the private Securities Litigation Reform Act and projections of future results.

您可以在我們的收益新聞稿、SEC 文件和簡報中找到這些非 GAAP 衡量標準與相應 GAAP 衡量標準（如果適用）的協調表，以及我們為何認為這些衡量標準對投資者有用的討論。我們在新聞稿和本次電話會議中的言論包含《私人證券訴訟改革法案》含義內的前瞻性和警示性聲明以及對未來結果的預測。

Please review these forward-looking statements section in today's press release and in our SEC filings for various factors that could cause our actual results to differ from forward-looking statements and projections.

請查看今天的新聞稿和我們向 SEC 提交的文件中的這些前瞻性陳述部分，以了解可能導致我們的實際結果與前瞻性陳述和預測不同的各種因素。

With that. I'll turn the call over to, Dave.

就這樣。我會把電話轉給戴夫。

Thank you, Heather and good morning, everyone. Before I get into my prepared remarks on behalf of Builders FirstSource, I want to send our thoughts to all of those who have been impacted by hurricane Helene and Milton.

謝謝希瑟，大家早安。在我代表 Builders FirstSource 發表準備好的演講之前，我想向所有受到颶風海倫和米爾頓影響的人們表達我們的想法。

I am proud of how we have come together as an industry to help with disaster relief efforts in North Carolina and the Southeast. From the first morning after Helene's landfall, we had team members and suppliers reaching out from all over the region and even across the nation, asking how they can help. Our Charlotte and Blairsville locations build trucks with supplies and delivered them to the hard hit Western North Carolina region.

我為我們作為一個行業如何團結起來幫助北卡羅來納州和東南部的救災工作感到自豪。從海倫登陸後的第一天早上開始，我們的團隊成員和供應商就從該地區甚至全國各地聯繫我們，詢問他們如何提供協助。我們的夏洛特和布萊爾斯維爾工廠製造了裝有物資的卡車，並將其運送到受災嚴重的北卡羅來納州西部地區。

Suppliers like Great Southern, Blue Links, Warehousers, Orgel and many others immediately stepped up and joined our efforts. We are grateful to our partners for their help. And with BFS cares initiative, we're providing grants to our team members back that help get our team members back on their feet as soon as possible. I want to especially thank Tim (inaudible), an install manager in Asheville, who also serves as a volunteer firefighter in the region.

Great Southern、Blue Links、Warehousers、Orgel 等供應商立即採取行動起來，加入我們的行列。我們感謝合作夥伴的幫助。透過 BFS 關懷計劃，我們向團隊成員提供補助金，幫助我們的團隊成員盡快重新站起來。我要特別感謝阿什維爾的安裝經理提姆（聽不清楚），他也是該地區的志願消防員。

Tim was involved in 20 calls in the first hours after Helene hit, one involved climbing over 250 yards of very unstable terrain to help rescue an 11 year old boy who had been buried in the basement of his home by a massive landslide. Tim, we are so proud of your efforts and thank you for your selfless service to the community.

海倫遭遇襲擊後的頭幾個小時內，蒂姆就接到了20 個電話，其中一個電話涉及攀爬超過250 碼的非常不穩定的地形，以幫助營救一名因大規模山體滑坡而被埋在自家地下室的11 歲男孩。提姆，我們為您的努力感到自豪，並感謝您為社區提供的無私服務。

I'm sure you have all, you have all seen the news that I'm retiring as CEO. I never anticipated that 25 years ago, I would have this wonderful career with this great company. We have the best people in the industry and the opportunity to be CEO of BFS these last couple of years has truly been the joy and highlight of my career. I am so proud of how far we have come and I'm grateful to our leadership team and team members for their support.

我相信你們都知道了，你們都看到我要卸任CEO的消息了。25 年前，我沒想到我會在這家偉大的公司擁有如此美好的職業生涯。我們擁有業內最優秀的人才，過去幾年擔任 BFS 執行長的機會確實是我職業生涯中的快樂和亮點。我對我們所取得的進步感到非常自豪，並感謝我們的領導團隊和團隊成員的支持。

I have full confidence in Peter and Pete and their ability to drive our stride to drive our strategy forward. One of my first priorities when I became CEO was to develop a succession plan to ensure the consistency of our leadership and execution of our long term strategy. With many years of experience as our CFO, Peter is exceptional at navigating the public company landscape and has spent extra time with each of our regions to get a first hand understanding of what it takes to support our leaders in the field. He has served as a close adviser to me and was essential in helping craft our current strategy. I'm working closely with him to ensure a thoughtful and seamless transition.

我對彼得和皮特以及他們推動我們的策略向前邁進的能力充滿信心。當我成為執行長時，我的首要任務之一是製定繼任計劃，以確保我們的領導力和長期策略執行的一致性。Peter 擁有多年擔任財務長的經驗，在駕馭上市公司環境方面表現出色，並在我們的每個地區花費了額外的時間，以第一手了解如何支持我們在該領域的領導者。他是我的親密顧問，在幫助制定我們當前的策略方面發揮了重要作用。我正在與他密切合作，以確保深思熟慮和無縫的過渡。

Pete Beckman is a brilliant financial leader and someone who is widely respected within the organization. I am grateful for our deep bench of talent and to leave BFS in such good hands. I want to wrap up by saying that I'm not going far away. I'll enjoy continuing to serve BFS as a member of our Board and I am taking an active role to ensure a smooth transition in the near term. I'm excited to continue supporting our growth and success.

皮特貝克曼 (Pete Beckman) 是一位傑出的財務領導者，在組織內廣受尊敬。我很感激我們擁有深厚的人才儲備，也很感激將 BFS 交給如此優秀的人來管理。最後我想說我不會走太遠。我將很樂意繼續作為董事會成員為 BFS 服務，並且我將積極發揮作用，確保近期順利過渡。我很高興能夠繼續支持我們的成長和成功。

Thank you again. I'll now hand the call over to Peter.

再次感謝您。我現在將把電話轉給彼得。

Thank you, Dave and good morning, everyone. I want to start by saying that we are indebted to Dave for his decades of service at BFS as a leader, steward and champion of the company and our people. Dave has truly done it all and his legacy of excellence will continue to inspire us as we move forward. I'm truly honored and grateful to be named the next CEO of Builders FirstSource, I'm humbled to represent our talented, hard working team and the fantastic business that we have built. BFS has had tremendous success and become a world class organization because of the commitment and contributions made by this team.

謝謝戴夫，大家早安。首先，我想說，我們感謝 Dave 作為公司和員工的領導者、管理者和擁護者，在 BFS 數十年的服務。戴夫確實做到了這一切，他的卓越遺產將繼續激勵我們前進。我非常榮幸和感激被任命為 Builders FirstSource 的下一任首席執行官，我很榮幸能夠代表我們才華橫溢、勤奮工作的團隊以及我們所建立的出色業務。由於這個團隊的承諾和貢獻，BFS 取得了巨大的成功並成為世界一流的組織。

Let's get started with slide 3 in our strategic pillars which remain unchanged. As we continue to execute our strategy, I believe there are three areas that we can emphasize so we can continue to outperform today and transform tomorrow.

讓我們從我們的策略支柱中的幻燈片 3 開始，該支柱保持不變。當我們繼續執行我們的策略時，我相信我們可以強調三個領域，以便我們能夠繼續超越今天並改變明天。

The first opportunity is with our people. I want us to advance the industry standard in this area so that we are recognized as a premier destination for talent. I believe we can enhance how we invest in, develop and support our team members from our front line operators to our leadership.

第一個機會是我們的員工。我希望我們能夠提高這一領域的行業標準，以便我們被公認為人才的首要目的地。我相信我們可以加強對團隊成員（從第一線操作員到領導層）的投資、發展和支持。

The second opportunity is to further build and catalyze our growth prospects from our products to our processes. I see potential to improve our consistency, capabilities and ways of working so we can extend our lead and grow a bigger, better be a best of tomorrow.

第二個機會是進一步建構和促進我們從產品到流程的成長前景。我看到了提高我們的一致性、能力和工作方式的潛力，這樣我們就可以擴大我們的領先地位，發展得更大，更好地成為明天最好的。

And the third opportunity is to improve how we collaborate and learn from each other within the company. We have a wealth of expertise, knowledge and innovative technologies. I believe we have a real opportunity to enhance how we work together so that what we are discovering in Charlotte is shared with Phoenix and what we are developing in Florida can be scaled in Texas.

第三個機會是改善我們在公司內部的協作和相互學習的方式。我們擁有豐富的專業知識、知識和創新技術。我相信我們有一個真正的機會來加強我們的合作方式，以便我們在夏洛特的發現能夠與菲尼克斯共享，並且我們在佛羅裡達州開發的東西可以在德克薩斯州推廣。

Let's turn now to our third quarter. Highlights on slide 4, I'm proud of our resilient performance, which reflects our execution and operational rigor, even as we continue to see soft sales amid rate, uncertainty and extreme weather. Despite these challenges, we delivered strong gross margins of nearly 33%. Our adjusted EBITDA margin has remained in the mid 10s or better for (inaudible) consecutive quarters which highlights our transformed business model and our differentiated product portfolio and scale.

現在讓我們轉向第三季。投影片 4 的重點內容是，我對我們的彈性表現感到自豪，這反映了我們的執行力和營運嚴謹性，儘管我們在利率、不確定性和極端天氣下繼續看到銷售疲軟。儘管面臨這些挑戰，我們仍實現了近 33% 的強勁毛利率。我們的調整後 EBITDA 利潤率連續幾季保持在 10 多歲或更高（聽不清楚），這凸顯了我們轉型的業務模式以及差異化的產品組合和規模。

Let's move to slide 5, where we touch on some of the specific ways we are executing our strategy. Our portfolio of value added products and services remains a competitive advantage for BFS and continues to bolster our partnerships with customers.

讓我們轉到投影片 5，其中我們討論了我們執行策略的一些具體方式。我們的加值產品和服務組合仍然是 BFS 的競爭優勢，並繼續加強我們與客戶的合作夥伴關係。

We've seen steady progress with digital, as we continue to hear great feedback from customers and see increasing levels of adoption each week. We demonstrated operational excellence by delivering $27 million in productivity savings in Q3 and have driven $104 million year-to-date primarily through more efficient manufacturing and procurement initiatives.

我們看到數位化技術取得了穩步進展，因為我們不斷收到客戶的良好回饋，每週的採用率都在不斷提高。我們在第三季度實現了 2700 萬美元的生產力節省，展示了卓越的營運能力，並且主要透過更高效的製造和採購計劃，年初至今已實現 1.04 億美元的收入成長。

Install services continues to be a great opportunity for us as we leverage playbooks from successful markets. I'm pleased that our install sales increased by 11% year-over-year as we focus on helping customers address labor challenges. We remain disciplined stewards of discretionary spending and are continuing to maximize operational flexibility.

安裝服務對我們來說仍然是一個很好的機會，因為我們利用了成功市場的策略。我很高興我們的安裝銷售額年增了 11%，因為我們專注於幫助客戶解決勞動力挑戰。我們仍然嚴格控制可自由支配支出，並繼續最大限度地提高營運靈活性。

We have consolidated 11 facilities year-to-date, while maintaining our service levels to our customers with an on time and in full delivery rate of over 90%. Single family softness continued in Q3 amid ongoing affordability challenges and below normal starts. The initial reaction to the FEDs first interest rate cut in September has been mixed with some home buyers remaining on the sidelines and waiting for additional rate cuts as mortgage rates fluctuate in the near term.

今年迄今為止，我們已經整合了 11 個工廠，同時保持了為客戶提供的服務水平，準時、全額交付率超過 90%。由於持續的負擔能力挑戰和低於正常的開工率，單戶家庭在第三季繼續疲軟。由於抵押貸款利率在短期內波動，對聯準會 9 月首次降息的最初反應不一，部分購屋者仍持觀望態度，等待進一步降息。

As a reminder, the value of a new start has fallen as the housing market has adapted to affordability challenges. Multi family continues to be a headwind amid muted activity is expected. Comparisons should get less negative as we lap record performance from last year.

提醒一下，隨著房地產市場適應承受能力的挑戰，新房屋的價值已經下降。由於預計活動較少，多戶住宅仍將是一個阻力。隨著我們超越去年的創紀錄表現，比較應該會變得不那麼負面。

A normalized basis multi family represents about 9% to 10% of net sales and is an attractive and profitable business for us. As we detailed on our Q2 call, our Q4 exit velocity indicates about a percentage point of margin erosion from '24 on a full year basis, roughly half of which is from multi family. To address the current environment and affordability challenges, Builders have employed specs, smaller and simpler homes and interest rate buy downs to help buyers find affordable options.

標準化基礎多戶住宅約佔淨銷售額的 9% 至 10%，對我們來說是一項有吸引力且有利可圖的業務。正如我們在第二季電話會議中詳細介紹的那樣，我們第四季度的退出速度表明，全年利潤率較 24 年下降了約一個百分點，其中大約一半來自多戶家庭。為了應對當前的環境和負擔能力挑戰，建築商採用了規格、更小、更簡單的房屋和降價購買來幫助買家找到負擔得起的選擇。

Builders of all sizes are having to navigate this market in addition to regulatory, land development and infrastructure challenges. Smaller builders have been especially impacted by the availability of land and limited options to buy down rates. We are leaning in by partnering with our customers to help them lower the cost of homes for consumers as well as maintain their margins.

除了監管、土地開發和基礎設施方面的挑戰之外，各種規模的建築商還必須應對這個市場。較小的建築商尤其受到土地供應和有限的降價選擇的影響。我們正在與客戶合作，幫助他們降低消費者的住房成本並維持利潤。

This includes offering a balanced product mix that addresses builder needs while passing through lower material costs. For instance, we have continued to supply more engineered wood and have sold fewer floor trusses to help alleviate affordability challenges. We have also supplied more lower cost offerings and products like windows and doors to help reduce costs.

這包括提供平衡的產品組合，滿足建築商的需求，同時降低材料成本。例如，我們繼續供應更多的工程木材，並減少地板桁架的銷售，以幫助緩解負擔能力的挑戰。我們也提供了更多成本較低的產品和門窗等產品，以幫助降低成本。

Although these actions in support of our customers need less sales and gross profit dollars, our margin profile remains strong and we are well positioned for growth as starts increase and structural headwinds begin to subside.

儘管這些支持客戶的行動需要減少銷售額和毛利，但我們的利潤率依然強勁，並且隨著開工率的增加和結構性阻力開始消退，我們已做好了實現成長的有利條件。

Turning to M&A on slide 6. We continue to pursue attractive opportunities while remaining financially disciplined. Over the years, we have developed a substantial and proven muscle memory to grow through M&A, and have an impressive track record of successfully integrating these transactions. In the third quarter, we completed six deals with an aggregate 2023 sales of roughly $190 million.

轉向幻燈片 6 上的併購。我們繼續尋求有吸引力的機會，同時保持財務紀律。多年來，我們已經形成了強大且經過驗證的肌肉記憶，可以透過併購實現成長，並在成功整合這些交易方面擁有令人印象深刻的記錄。第三季度，我們完成了六筆交易，2023 年的總銷售額約為 1.9 億美元。

In July, we acquired Western Trust and Components, having trust capacity in the Flagstaff, Arizona area and CRI SOCAP, a dealer and installer of high end Windows doors in Orange County, California. In August, we acquired Wyoming Millwork, the leading independent building products distributor in Delaware. September, we acquired Sunrise Wood designs, a top custom cabinet manufacturer and installer in North Texas.

7 月，我們收購了在亞利桑那州弗拉格斯塔夫地區擁有信託能力的 Western Trust and Components 和加州橘郡高端門窗經銷商和安裝商 CRI SOCAP。8 月，我們收購了特拉華州領先的獨立建築產品經銷商 Wyoming Millwork。九月，我們收購了德州北部頂級訂製櫥櫃製造商和安裝商 Sunrise Wood designs。

And in the Reno area, Reno Trust, a leading trust manufacturer to the single and multifamily markets and high Mountain Doran trim, a distributor and installer of Windows doors and millwork. Additionally, in October, we acquired Douglas Lumber, which provides a range of building materials to contractors, re-modelers and homeowners in the Rhode Island area. These acquisitions reinforce our commitment to growing value-added products. We are excited to welcome these talented new team members to the BFS family.

在裡諾地區，Reno Trust 是單戶和多戶市場領先的信託製造商，高山 Doran 裝飾是門窗和木製品的分銷商和安裝商。此外，我們於 10 月收購了 Douglas Lumber，該公司為羅德島地區的承包商、改建商和房主提供一系列建築材料。這些收購強化了我們對成長增值產品的承諾。我們很高興歡迎這些才華橫溢的新團隊成員加入 BFS 大家庭。

On slide 7, we provide an update on capital allocation. In addition to the six tuck-in acquisitions during the third quarter, we executed share repurchases of roughly $160 million. It's driven by our track record, we'll continue to allocate capital to high return opportunities, including acquisitions and share repurchases. We deployed approximately $1.7 billion through the first three quarters of this year and remain on track strategically to $5.5 billion to $8.5 billion of capital from 2024 to 2026 as we outlined at Investor Day last December.

在投影片 7 上，我們提供了資本配置的最新情況。除了第三季的六次收購外，我們還執行了約 1.6 億美元的股票回購。在我們的業績記錄的推動下，我們將繼續將資本分配給高回報機會，包括收購和股票回購。正如我們在去年 12 月的投資者日所概述的那樣，我們在今年前三個季度部署了約 17 億美元，並在 2024 年至 2026 年戰略性地部署了 55 億至 85 億美元的資本。

Now let's turn to slide 8, and discuss the latest updates on our digital strategy. With our BFS digital tools, we are focused on creating value for our homebuilder customers and in doing so, further extending our industry leadership position and driving substantial organic growth.

現在讓我們轉向幻燈片 8，討論我們數位化策略的最新更新。透過我們的 BFS 數位工具，我們專注於為住宅建築商客戶創造價值，並以此進一步擴大我們的行業領導地位並推動大幅有機成長。

We have seen strong adoption and growth with our target audience of smaller builders despite the challenging market. We have had broad acceptance of the platform so far, including interest from multiple top 200 builders.

儘管市場充滿挑戰，但我們的目標受眾是小型建築商，我們已經看到了強勁的採用和成長。到目前為止，我們已經廣泛接受了該平台，其中包括多家排名前 200 的建築商的興趣。

Since launching in late February, we have seen nearly $600 million of orders placed through our digital platform, of which $83 million were incremental sales from existing and new customers. While we're very pleased with the incremental sales to date, given market headwinds from our targeted segment of builders, we now expect total incremental sales of approximately $110 million in 2024 versus our initial goal of $200 million. Despite the slow start, we remain confident in our ability to meet our target of $1 billion in incremental sales in 2026, as we grow wallet share and win new customers.

自 2 月底推出以來，我們已透過數位平台收到了近 6 億美元的訂單，其中 8,300 萬美元是來自現有客戶和新客戶的增量銷售額。雖然我們對迄今為止的增量銷售感到非常滿意，但考慮到我們的目標建築商細分市場的市場阻力，我們現在預計2024 年總增量銷售約為1.1 億美元，而我們最初的目標是2億美元。儘管起步緩慢，但隨著我們增加錢包份額並贏得新客戶，我們仍然對實現 2026 年 10 億美元增量銷售額的目標充滿信心。

Before I turn the call over, I want to say that we are very fortunate to have Pete Beckmann step into the role of CFO. He has a long proven track record as a finance leader which I've witnessed firsthand. I look forward to partnering with him to deliver exceptional results and compound shareholder value.

在我轉交電話之前，我想說，我們非常幸運地讓 Pete Beckmann 擔任財務長。作為一名財務領導者，他擁有長期可靠的業績記錄，我親眼目睹了這一點。我期待與他合作，實現卓越的績效和複合股東價值。

Pete, take it away.

皮特，把它拿走。

Thank you, Peter, and good morning, everyone. I appreciate the introduction, and I am grateful for the opportunity to serve as CFO. For background, I have spent the last 25 years at BFS and legacy companies in roles of increasing responsibility, including B&A and an integral part of the ProBuild and BMC mergers.

謝謝你，彼得，大家早安。我很感謝您的介紹，也很感謝有機會擔任財務長。作為背景，過去 25 年我在 BFS 和傳統公司擔任越來越重要的職務，包括 B&A 以及 ProBuild 和 BMC 合併中不可或缺的一部分。

Most recently, I served as SVP of Financial Planning and Analysis, where we have partnered with all levels of the enterprise and was responsible for our financial forecasting, strategic capital and annual planning. I look forward to helping enable profitable growth while maintaining our track record of prudent financial management through the cycle and disciplined capital allocation.

最近，我擔任財務規劃和分析資深副總裁，與企業各級合作，負責我們的財務預測、策略資本和年度規劃。我期待著幫助實現獲利成長，同時保持我們在周期內審慎財務管理和嚴格資本配置的記錄。

(inaudible) continued housing market choppiness we delivered resilient results during the third quarter as we continue to execute our strategy and operating model. We are leveraging our portrait balance sheet and free cash flow generation to drive disciplined capital deployment, as witnessed by our share repurchases and acquisitions during the quarter.

（聽不清楚）房地產市場持續波動，隨著我們繼續執行我們的策略和營運模式，我們在第三季取得了有彈性的業績。我們正在利用我們的資產負債表和自由現金流產生來推動嚴格的資本部署，本季我們的股票回購和收購證明了這一點。

Our scale and financial flexibility enable us to act as key partners to homebuilders, and we have a clear line of sight to compound value creation over the long term. We are well positioned for meaningful operating leverage when the market turns.

我們的規模和財務靈活性使我們能夠成為住宅建築商的主要合作夥伴，並且我們對長期複合價值創造有著清晰的願景。當市場轉變時，我們處於有利的有利經營槓桿地位。

I will cover three topics with you this morning, first, I'll recap our third quarter results. Second, I'll provide an update on our capital deployment, and finally, I'll discuss our 2024 guidance, 2025 scenarios and related assumptions.

今天早上我將與大家討論三個主題，首先，我將回顧我們第三季的業績。其次，我將提供有關我們資本部署的最新信息，最後，我將討論我們的 2024 年指導、2025 年情景和相關假設。

Let's begin by reviewing our third quarter performance on slides 9 and 10. Net sales were $4.2 billion, a decrease of 6.7%, driven by a 7.2% decline in core organic sales as multifamily continues to trend downward, and 2.9% of commodity deflation. The decrease in net sales was partially offset by growth from acquisitions of 2% and one additional selling day that contributed 1.4%.

讓我們先回顧一下幻燈片 9 和 10 上的第三季業績。淨銷售額為 42 億美元，下降 6.7%，原因是多戶住宅持續下降，導致核心有機銷售額下降 7.2%，以及大宗商品通貨緊縮下降 2.9%。淨銷售額的下降被 2% 的收購成長和貢獻 1.4% 的額外銷售日部分抵消。

The organic sales decrease was driven by a 31% decline in multifamily as we lap the prior year's strong comps and a 4.6% decline in single family amid lower value per start. This was partially offset by a small increase in repair and remodel of almost 1%, given strength in the central region.

有機銷售額下降的原因是多戶型住宅銷量下降了 31%，因為我們超越了上一年的強勁對比，而單戶住宅型由於每戶開工價值較低而下降了 4.6%。鑑於中部地區的實力，修復和改造的小幅增長（近 1%）部分抵消了這一影響。

As we have shared on recent calls, there have been three main variables reconciled single-family starts for organic sales. The first variable is the lag between permits and starts. This quarter, unlike last quarter, we have seen the impact of early permit polls stay where we continue to see a generally extended permit completion cycle time. As a rule of thumb, we expect a roughly two month lag between the start and our first set.

正如我們在最近的電話會議中分享的那樣，協調單戶住宅開工有機銷售的三個主要變數。第一個變數是許可和啟動之間的滯後。與上季不同，本季我們看到早期許​​可證民調的影響仍然存在，我們繼續看到許可證完成周期普遍延長。根據經驗，我們預期開始和第一組之間會有大約兩個月的延遲。

Second, the value of the average home has fallen as size and complexity have decreased. Finally, we have seen slight normalization in selling margins of non-commodity products and manufacture price cuts in some products. Summarized, although there are less sales dollars biller start today, we remain the market leader and will begin to deliver strong operating performance.

其次，隨著面積和複雜性的降低，平均房屋的價值也隨之下降。最後，我們看到非大宗產品的銷售利潤略有正常化，部分產品的製造價格下降。總而言之，儘管今天開始的銷售額有所減少，但我們仍然是市場領導者，並將開始提供強勁的營運表現。

Value added products represented 49% of our net sales during the third quarter. As a rule of thumb, our multifamily sales are made up of roughly 70% value added products. Gross profit was $1.4 billion, a decrease of approximately 12% compared to the prior year period. Gross margins were 32.8%, down 210 basis points, primarily driven by multifamily and core organic normalization.

增值產品佔第三季淨銷售額的 49%。根據經驗，我們的多戶住宅銷售大約由 70% 的加值產品組成。毛利為14億美元，較上年同期下降約12%。毛利率為 32.8%，下降 210 個基點，主要受到多戶型和核心有機標準化的推動。

SG&A increased $19 million to $958 million, primarily attributable to acquired operations and asset write-offs, partially offset by lower variable compensation due to lower net sales. As a percentage of net sales, total SG&A increased 190 basis points to 22.6%. Adjusted SG&A decreased approximately $1 million to $783 million, primarily attributable to lower variable compensation due to lower net sales, partially offset by acquired operations.

SG&A 增加 1,900 萬美元，達到 9.58 億美元，主要歸因於收購業務和資產沖銷，但因淨銷售額下降而導致可變薪酬下降，部分抵消了這一影響。SG&A 總額佔淨銷售額的百分比增加了 190 個基點，達到 22.6%。調整後的 SG&A 減少約 100 萬美元，至 7.83 億美元，主要是由於淨銷售額下降導致可變薪酬下降，但被收購的業務部分抵消。

On an annual basis, adjusted SG&A is approximately 30% fixed and 70% variable with volumes. For reference, we have an adjusted SG&A reconciliation schedule in the earnings release. We are focused on carefully managing our SG&A expenses and are well positioned to leverage our fixed costs as the market grows.

以年度計算，調整後的 SG&A 大約 30% 是固定的，70% 是隨數量變化的。作為參考，我們在收益發布中提供了調整後的 SG&A 調節表。我們專注於仔細管理我們的銷售、管理及行政費用，並有能力隨著市場的成長利用我們的固定成本。

Adjusted EBITDA was approximately $627 million, down 23%, primarily driven by lower gross profit, partially offset by lower operating expenses after adjustments. Adjusted EBITDA margin was 14.8%, down 310 basis points from the prior year, primarily due to lower gross profit margins, partially offset by lower operating expenses after adjustments.

調整後 EBITDA 約為 6.27 億美元，下降 23%，主要是由於毛利下降，但部分被調整後營運費用下降所抵消。調整後 EBITDA 率為 14.8%，較前一年下降 310 個基點，主要是由於毛利率下降，但部分被調整後營運費用下降所抵銷。

Adjusted net income of $360 million was down $174 million from the prior year, primarily due to lower gross profit, partially offset by lower operating expenses after adjustments and lower income tax expense. Adjusted earnings per diluted share was $3.07, a decrease of 28% compared to the prior year. On a year-over-year basis, share repurchases added roughly $0.22 per share for the third quarter.

調整後淨利潤為 3.6 億美元，比上年減少 1.74 億美元，主要是由於毛利下降，但部分被調整後營運費用下降和所得稅費用下降所抵消。調整後每股攤薄收益為 3.07 美元，較前一年下降 28%。與去年同期相比，第三季股票回購增加了每股約 0.22 美元。

Now let's turn to our cash flow, balance sheet and liquidity on slide 11. Q3 operating cash flow was $730 million, an increase of $81 million, mainly attributable to a decrease in net working capital. Capital expenditures for the quarter were $95 million, and free cash flow was approximately $635 million. For the last 12 months ended September 30, our free cash flow yield was approximately 8% while operating cash flow return on invested capital was 25%.

現在讓我們來看看投影片 11 上的現金流量、資產負債表和流動性。第三季營運現金流為7.3億美元，增加8,100萬美元，主要歸因於淨營運資本減少。該季度的資本支出為 9,500 萬美元，自由現金流約為 6.35 億美元。截至 9 月 30 日的過去 12 個月，我們的自由現金流收益率約為 8%，而投資資本的營運現金流回報率為 25%。

Our trailing 12 months net debt to adjusted EBITDA ratio was 1.4 times, while base business leverage was 1.5x. At quarter end, our total liquidity was approximately $2 billion, a (inaudible) of $1.7 billion in net broader the revolving credit facility and approximately $300 million in cash on hand.

我們過去 12 個月的淨負債與調整後 EBITDA 的比率為 1.4 倍，而基本業務槓桿率為 1.5 倍。截至季末，我們的總流動資金約為 20 億美元，（聽不清楚）循環信貸額度淨額為 17 億美元，手頭現金約為 3 億美元。

Moving to capital deployment. During the third quarter, we repurchased roughly 900,000 shares for approximately $160 million at an average stock price of $176.73 per share. Since the inception of our buyback program in August 2021, we have repurchased 45.5% of total shares outstanding at an average price of $77.62 per share for $7.3 billion. We have approximately $840 million remaining on our $1 billion share repurchase authorization. We remain disciplined stewards of capital and have multiple paths for value creation to maximize returns.

轉向資本部署。第三季度，我們以約 1.6 億美元的價格回購了約 90 萬股股票，平均股價為每股 176.73 美元。自 2021 年 8 月回購計畫啟動以來，我們已以 73 億美元的平均價格每股 77.62 美元回購了已發行股份總數的 45.5%。我們的 10 億美元股票回購授權還剩約 8.4 億美元。我們仍然是嚴格的資本管理者，並擁有多種價值創造途徑以最大化回報。

On slide 12, we show our 2024 outlook. We anticipate a regional financial impact from Hurricane Helene and Milton, around $40 million in sales, a relatively modest amount given our geographic diversification. For full year 2024, we have narrowed our range of expected total company net sales to be $16.25 billion to $16.5 billion. We expect adjusted EBITDA to be $2.25 billion to $2.35 billion. Adjusted EBITDA margin is forecasted to be in the range of 13.8% to 14.2%.

在幻燈片 12 中，我們展示了 2024 年的展望。我們預計颶風海倫和米爾頓對區域財務的影響約為 4000 萬美元，考慮到我們的地理多元化，這一數字相對較小。對於 2024 年全年，我們將公司淨銷售額預期範圍縮小至 162.5 億美元至 165 億美元。我們預計調整後 EBITDA 為 22.5 億美元至 23.5 億美元。調整後 EBITDA 利潤率預計在 13.8% 至 14.2% 之間。

We expect our 2024 full year gross margin guide to be in the range of 32% to 33%. This also remains in line with our long-term expectation of 30% to 33% and normalized single family starts of $1 million to $1.1 million. We expect full year 2024 free cash flow of $1.2 billion to $1.4 billion. assuming average commodity prices in the range of $380 to $400 per 1,000 board foot. 2024 outlook is based on several assumptions. Please refer to our earnings release and presentation or a list of these key assumptions.

我們預計 2024 年全年毛利率指引在 32% 至 33% 之間。這也符合我們 30% 至 33% 的長期預期以及 100 萬至 110 萬美元的標準化單戶起價。我們預計 2024 年全年自由現金流為 12 億至 14 億美元。假設平均商品價格在每 1,000 板英尺 380 至 400 美元之間。 2024 年的前景是基於幾個假設。請參閱我們的收益發布和演示或這些關鍵假設的清單。

Moving to slide 14. We recognize that 2025 is coming into focus as we approach year-end. Like we did last year, we have laid out a scenario analysis to demonstrate how we are positioned to generate resilient financial performance across a range of potential housing market and commodity conditions. I want to emphasize that this is not guidance, but these scenarios should help clarify our range of performance expectations for 2025 and demonstrate the strength of our best in class operating platform.

轉到投影片 14。我們認識到，隨著年底的臨近，2025 年將成為人們關注的焦點。就像我們去年所做的那樣，我們進行了情境分析，以展示我們如何在一系列潛在的房地產市場和大宗商品條件下實現有彈性的財務表現。我想強調的是，這不是指導，但這些場景應該有助於明確我們對 2025 年的業績預期範圍，並展示我們一流營運平台的實力。

Turning to slides 15 and 16. As a reminder, our base business approach showcases the underlying strength and resiliency of our company by normalizing sales and margins for commodity volatility. This helps to clearly assess the core aspects of the business where we have focused our attention to drive sustainable outperformance.

轉到投影片 15 和 16。提醒一下，我們的基本業務方法透過商品波動的銷售和利潤正常化來展示我們公司的潛在實力和彈性。這有助於清楚地評估我們重點關注的業務核心方面，以推動可持續的卓越績效。

Our base business guide on net sales for 2024 is approximately $15.4 billion. Our base business adjusted EBITDA guide is approximately $2.3 billion at a margin of 14%, which reflects a minimal impact from commodities.

我們的 2024 年淨銷售額基本業務指南約為 154 億美元。我們的基本業務調整後 EBITDA 指南約為 23 億美元，利潤率為 14%，反映出大宗商品的影響很小。

For context, slide 16 shows that our 2020 base business adjusted EBITDA was roughly $1.1 billion and 991,000 single family starts, and we are expecting better adjusted EBITDA at lower single firm starts this year.

作為背景，投影片 16 顯示我們 2020 年基本業務調整後 EBITDA 約為 11 億美元，單戶住宅開工量為 991,000 套，我們預計今年單戶企業開工量較低，調整後 EBITDA 會更好。

On slide 17, we provide a bridge from our 2019 gross margin to be the long-term normalized midpoint of 31.5%. Our improved margin profile plus a greater mix of value added products, productivity savings and commercial benefits.

在投影片 17 上，我們提供了從 2019 年毛利率到長期標準化中點 31.5% 的橋樑。我們改善了利潤狀況，並提供了更多的加值產品、生產力節省和商業利益。

As I wrap up, I am confident in our ability to execute our strategy and drive long term growth by leveraging our exceptional platform and financial flexibility. The Investor Day goals we laid out last December remain achievable, assuming a return to normalized single family starts of $1.1 million in 2026.

最後，我對我們利用我們卓越的平台和財務靈活性執行策略並推動長期成長的能力充滿信心。假設 2026 年單戶住宅開工率恢復到 110 萬美元的正常水平，我們去年 12 月制定的投資者日目標仍然可以實現。

With that, I'll turn the call back over to Peter for some final thoughts.

這樣，我會將電話轉回給 Peter，以徵求一些最後的想法。

Thanks, Pete. Let me close by re-iterating that we continue to execute our resilient business model allows us to win in any environment, and this is evidenced by our strong gross profit margins and cash flow generation in the third quarter.

謝謝，皮特。最後，我要重申，我們繼續執行彈性業務模式使我們能夠在任何環境中獲勝，第三季強勁的毛利率和現金流量證明了這一點。

I'm confident in the long-term strength of our industry due to the significant housing underbuilt and favorable demographic trends. We are well positioned to take advantage of these tailwinds, which will help drive growth for years to come as we execute our strategy.

由於大量住房未建成和有利的人口趨勢，我對我們行業的長期實力充滿信心。我們處於有利位置，可以利用這些順風車，這將有助於在我們執行策略時推動未來幾年的成長。

We are a key partner to our customers and continue to deepen our value proposition by helping them solve problems through our investments in value-added products, digital tools and install services. Our proven playbook for growth, fortress balance sheet and robust free cash flow generation will help us continue to compound long-term shareholder value.

我們是客戶的重要合作夥伴，透過對加值產品、數位工具和安裝服務的投資，幫助他們解決問題，從而不斷深化我們的價值主張。我們行之有效的成長策略、堡壘般的資產負債表和強勁的自由現金流產生將幫助我們繼續實現長期股東價值的複合。

Even in an uncertain and challenging environment, we are doing the hard work now and building for the future. By continuing to grow in value add and install along with leveraging IT and technological development, we are arming our team members with cutting-edge tools to continue to be the supplier of choice for our customers. By investing today, we are exceptionally well positioned to win in the future as the market continues to recover.

即使在充滿不確定性和充滿挑戰的環境中，我們仍在努力工作，為未來而努力。透過持續增加附加價值和安裝以及利用 IT 和技術發展，我們正在為我們的團隊成員配備尖端工具，以繼續成為客戶的首選供應商。透過今天的投資，隨著市場的持續復甦，我們處於非常有利的位置，可以在未來獲勝。

Thank you again for joining us today. Operator, please open the call now for questions (Operator instructions)

再次感謝您今天加入我們。接線員，請立即撥打電話詢問問題（操作員說明）

(Operator instructions)

（操作員說明）

Matthew Bouley, Barclays.

馬修·博利，巴克萊銀行。

Good morning, everyone. I want to offer my congratulations and best wishes to Dave and best of luck to Peter and Pete. So for my first question, I wanted to touch on your growth versus the market into these 2025 scenarios.

大家早安。我想向戴夫表示祝賀和最美好的祝愿，並祝彼得和皮特好運。因此，對於我的第一個問題，我想談談您在 2025 年情境中的成長與市場狀況。

So kind of looking into the second half here, I think the way you guys outlined the guide is, you obviously reduced the revenue guide by a bit, while holding the end market guide. So I'm curious around your balance of share and kind of how you're thinking about that in the near term. But then as you draw it into those '25 scenarios, it looks like you're talking about your growth relatively similar to the start number. So I'm curious how you're thinking about your growth relative to market as we get into 2025 as well. And if some of these headwinds are starting to abate any visibility to that. So I'll stop there, but, thank you guys.

因此，回顧下半年，我認為你們概述指南的方式是，你們顯然減少了一點收入指南，同時保留了終端市場指南。所以我很好奇你們的份額平衡以及你們近期對此的看法。但當你將其納入 25 年的情景中時，看起來你正在談論的成長與起始數字相對相似。因此，我很好奇，當我們進入 2025 年時，您如何看待相對於市場的成長。如果其中一些不利因素開始減弱這一點。所以我就到此為止，但是，謝謝你們。

Thanks, Matt. Yes, there's a lot in that question. So a couple of factors. I would say where we are today, we have certainly seen the choppiness in the market. There wasn't a big relief rally when interest rates were cut, mortgage rates didn't necessarily behave as everyone was hoping in terms of a quick fall.

謝謝，馬特。是的，這個問題有很多內容。有幾個因素。我想說，我們今天所處的位置，我們確實看到了市場的波動。降息時並沒有大幅的緩解性反彈，抵押貸款利率也不一定像每個人所希望的那樣迅速下降。

And I think buyers have been appropriately or inappropriately nervous about both rates and the election. So it's been a little choppy. I think we've seen that. We've been watching it all year, still performing well. I think the business is still competing well, taking advantage of opportunities.

我認為買家對利率和選舉感到適當或不適當的緊張。所以一直有點不穩定。我想我們已經看到了。我們已經看了一年了，仍然表現良好。我認為該業務仍在充分競爭，並充分利用機會。

We're investing. Those things have led to, I think, some solid performance on our part, but we have certainly faced headwinds. We've been hopefully pretty, what you see is pretty open about that. The value of these homes has fallen. That's really the biggest disconnect when we look at what starts have done and what our sales have done, particularly in that single family core organic category.

我們正在投資。我認為，這些事情為我們帶來了一些可靠的表現，但我們當然也面臨阻力。我們一直希望表現得很漂亮，你看到的情況是相當開放的。這些房屋的價值已經下降。當我們查看開工和銷售情況時，這確實是最大的脫節，特別是在單一家庭核心有機類別中。

That doesn't mean we're not happy and competitive. But certainly, it's been challenging out there, and we've talked about that. As we think about what that means into the fourth quarter and into next year, I think, broadly speaking, it's mixed out there. You've got markets that are doing quite well. They're sort of bouncing up and seeing some green shoots starting to perform. We've got other markets that have struggled and seen headwinds and seen a little bit of excess inventory and builders are reacting in a thoughtful way, we believe to managing that.

這並不意味著我們不快樂、不競爭。但當然，這一直是個挑戰，我們已經討論過這一點。當我們思考這對第四季度和明年意味著什麼時，我認為，從廣義上講，情況好壞參半。您的市場表現相當不錯。他們有點反彈並看到一些新芽開始發揮作用。我們的其他市場也遇到了困難，遇到了逆風，庫存有點過剩，建築商正在以深思熟慮的方式做出反應，我們相信能夠管理這一點。

So our guide for the fourth quarter is certainly focused on the visibility that we have into the market, the conversations we're having with customers. It's not a bad market by any stretch, but it's one that has certainly seen some challenges, not at all helped by the weather disruptions that we've seen.

因此，我們第四季度的指南肯定側重於我們對市場的了解以及我們與客戶的對話。無論如何，這不是一個糟糕的市場，但它肯定遇到了一些挑戰，而我們所看到的天氣幹擾根本沒有幫助到這一點。

As we get into '25, it's early days. We've been looking at the commentary from the economists. We've been talking with our customers. It's a bit of a mixed bag, some doing better than others. We think there will be a bit of a differentiated reaction as rates are cut. We expect there will likely be at least a couple of more. We think mortgage rates will continue to settle that will have different advantages to different builders out in the market.

當我們進入 25 世紀時，現在還為時過早。我們一直在關注經濟學家的評論。我們一直在與客戶交談。這是一個魚龍混雜的情況，有些做得比其他好。我們認為，隨著降息，將會出現一些不同的反應。我們預計至少還會有更多。我們認為抵押貸款利率將繼續穩定，這對市場上不同的建築商來說將具有不同的優勢。

So this is what we're seeing today. There's certainly new news, some of the performance announcements over the past few weeks have saved our opinions as we go forward. But we thought like last year, this is a helpful starting point for helping people understand what we're thinking based on what we see today.

這就是我們今天看到的情況。當然有新消息，過去幾週的一些業績公告在我們前進的過程中保存了我們的觀點。但我們像去年一樣認為，這是一個有用的起點，可以幫助人們根據我們今天所看到的情況來理解我們的想法。

Got it. Okay. Thank you for that Peter. And for addressing my long question there. Second one, the gross margin guide. I just wanted to confirm that given where the guide is that you're still looking at roughly 31% as the exit rate for 2024. And again, obviously, we can see the margin numbers in your 2025 scenarios.

知道了。好的。謝謝你那個彼得。並解決我的長問題。第二個，毛利率指引。我只是想確認一下，根據指南，您仍然認為 2024 年的退出率約為 31%。顯然，我們可以再次看到 2025 年情境中的利潤率數字。

But between some of the pluses and minuses, productivity, value add, install, versus some of the competitive dynamics out there. How are you guys thinking that 31% could drift one way or the other as you go through 2025? Thank you.

但在一些優點和缺點、生產力、增值、安裝以及一些競爭動態之間。你們如何看待 2025 年 31% 的比例可能會出現這樣或那樣的變化？謝謝。

Hey, Matt, thank you for the question. we're seeing a headwind as we exit 2024 of about another 100 basis points from the year-to-date average margin, 100 basis points, pretty consistent with what we said last quarter is half of it is made up from the multifamily normalization and the other half from the core business normalization.

嘿，馬特，謝謝你的提問。當我們退出2024 年時，我們看到了逆風，較年初至今的平均利潤率又增加了約100 個基點，100 個基點，與我們上季度所說的非常一致，其中一半是由多戶家庭正常化構成的，另一半則來自核心業務的常態化。

It is a competitive environment. We're going to continue to compete, especially on the commodity products with the install. Install has been a favorable result for us in 2024, and it continues to be a good arrow in the quiver, and we'll continue to compete every day and we expect to exit right around 31.5

這是一個競爭環境。我們將繼續競爭，尤其是在安裝的商品方面。到 2024 年，安裝量對我們來說是一個有利的結果，它仍然是箭袋中的一支好箭，我們將繼續每天競爭，預計在 31.5 左右退出

Overall, we're certainly very pleased with the margin performance. Despite the challenging market, we've seen customers really continuing to benefit from the value-added products and services that part of our business has certainly stayed strong, stay resilient, and it supported our margins in an environment where volumes are and values are down a little bit.

總的來說，我們對利潤表現當然非常滿意。儘管市場充滿挑戰，但我們看到客戶確實繼續受益於增值產品和服務，我們的部分業務無疑保持強勁，保持彈性，並且在銷量下降和價值下降的環境中支撐了我們的利潤一點點。

Got it. Okay. So, you said 31.5 is the exit rate. So I'll, leave it there. Thank you guys.

知道了。好的。所以，你說31.5是退出率。所以我會把它留在那裡。謝謝你們。

Thanks, Matt.

謝謝，馬特。

Charles Perron Piche, Goldman Sachs.

查爾斯·佩隆·皮奇，高盛。

Thank you. Good morning, everyone. First of all, congrats, Dave, Peter and Pete on the promotion and retirement. Well deserved. Maybe if I can go first to, going back to Matt's question on the 2025 scenario. I just want to make sure that we understand this correctly, looking at the base case scenarios.

謝謝。大家早安。首先，恭喜Dave、Peter 和Pete 升職並退休。當之無愧。也許我可以先回到馬特關於 2025 年情景的問題。我只是想確保我們正確理解這一點，看看基本案例場景。

It implies approximately 20% incremental EBITDA margin in 2025, once we moved it to $100 million of multifamily headwind. First of all, is that right? And as you see things flowing through next year, how do you see the ability to drive the gross margin versus the SG&A leverage across those scenarios?

這意味著 2025 年，一旦我們將多戶住宅的逆風調整至 1 億美元，EBITDA 利潤率將增加約 20%。首先，這是正確的嗎？當您看到明年的情況時，您如何看待在這些情況下推動毛利率與 SG&A 槓桿的能力？

And just to follow up as well, do you see the deceleration in the sales that you've seen through 2024 in terms of the content per home as stabilizing and expecting through 2025 to be roughly consistent with what you see today in those scenarios?

接下來，您是否認為 2024 年每戶內容的銷售減速會趨於穩定，並預計到 2025 年將與您今天在這些場景中看到的情況大致一致？

Thank you, Charles. Appreciate the comments and the questions. So I would say the numbers and the performance of the business around margins in particular, there's a lot going on there, right? With the early look at what we have on the table, I think what it reveals is continuing performance in the areas that you'd expect us to deliver.

謝謝你，查爾斯。感謝評論和問題。所以我想說，尤其是圍繞利潤率的業務數字和業績，那裡發生了很多事情，對吧？透過對我們現有內容的初步觀察，我認為它揭示了您期望我們提供的領域的持續表現。

We expect to see improved performance as a result of productivity initiatives. We continue to see the strength around the value add. We continue to look for opportunities within that productivity category to drive both gross margins and EBITDA margins.

我們期望透過生產力計劃看到性能的提高。我們繼續看到圍繞增值的力量。我們繼續在該生產力類別中尋找機會，以提高毛利率和 EBITDA 利潤率。

That is, I would say, a core part of our operating model as a business and something you feel good about as time progresses. The dynamics around how the market will perform next year in light of the sales volumes in the various categories. I think broadly speaking, we continue to see weakness in multifamily.

我想說，這是我們企業營運模式的核心部分，也是隨著時間的推移你會感覺良好的部分。根據各類別的銷售量，明年市場將如何表現的動態。我認為從廣義上講，我們繼續看到多戶家庭的弱點。

I would say our sense of it is it's stabilized, but it's been a big step down from the peak, but gotten to a level where we believe we can hold here and hopefully, start to see some recovery timing will depend on the dynamics of the market.

我想說的是，我們的感覺是它已經穩定了，但它已經從峰值下降了一大步，但達到了我們相信我們可以守住這裡的水平，希望開始看到一些復甦時機將取決於經濟的動態市場。

Single family is a dynamic that's different between the types of builders, as I mentioned earlier, but certainly one that we think is directionally headed in a positive way. We continue to believe in the strength of the market, the desirability of new homes and the industry's ability to deliver those.

正如我之前提到的，單一家庭是一種不同類型的建築商之間不同的動態，但我們認為它肯定會朝著正面的方向發展。我們仍然相信市場的力量、新房的需求以及產業提供這些的能力。

We think there's a lot of pent up demand, and we are well positioned to help builders deliver and do it in a very efficient way. This, again, early days on this guide, but for '25, but we think those scenarios can help add some color in that regard.

我們認為有很多被壓抑的需求，我們有能力幫助建築商以非常有效的方式交付和完成它。這又是本指南的早期內容，但針對 25 年，但我們認為這些場景可以幫助在這方面添加一些色彩。

Okay. That's helpful, Peter. And maybe following up, where product prices in lumber in particular, have been trending higher over the last couple of months with the improving housing outlook for 2025, suggesting potentially more upside.

好的。這很有幫助，彼得。也許接下來，隨著 2025 年住房前景的改善，特別是木材產品價格在過去幾個月一直呈現上升趨勢，這表明潛在的上漲空間更大。

I guess against this, how are you positioning your inventories in the business? And how do you see this recovery in commodity prices affecting demand and competitive dynamics across the different value-add products that you have in your portfolio if this ongoing persist in 2025?

我想反對這一點，你如何在業務中定位你的庫存？如果這種情況持續到 2025 年，您如何看待大宗商品價格的復甦會影響您投資組合中不同加值產品的需求和競爭動態？

Yes. So commodities continue to be an important part of what we do, although we are much smaller than it has in the past. It's nice to see the prices bouncing off the bottom. I'd say that below 400 window that we were in for a while was a bit, I would say, unpleasant more so for the mills and the delivery on the commodity side than for us. But certainly, we like to have a healthy sector in the commodity space and that lumber, the dimensional lumber in OSB space in particular.

是的。因此，儘管我們的規模比過去小得多，但大宗商品仍然是我們業務的重要組成部分。很高興看到價格從底部反彈。我想說，我們有一段時間處於低於 400 的窗口，我想說，對於工廠和大宗商品方面的交貨來說，比我們更不愉快。但當然，我們希望商品領域和木材領域有一個健康的部門，特別是定向刨花板領域的規格。

We have seen a little bit of a boost. I think it's early days. And I would highlight the fact that while new construction is an important driver of demand in that product category, R&R, the repair and remodel market is a far bigger influence. So I think that's where, if I'm looking for support and tailwind in that category, that's an important factor to keep an eye on.

我們看到了一點點的推動。我認為現在還為時過早。我要強調的事實是，雖然新建築是該產品類別需求的重要驅動力，但 R&R、維修和改造市場的影響力要大得多。因此，我認為，如果我在該類別中尋找支持和推動力，那麼這是需要關注的重要因素。

You hit the nail in the head, it will certainly be a tailwind for sales and for margins as we see better absorption of our overhead costs. If that continues to increase in costs. Although, as always, we keep a close eye on affordability. We want to balance there. We not think any of us want to return to the $1,300 to $1,600 lumber days. That's pretty dysfunctional. So a modest increase is, I think, healthy and good to stabilize the market.

你擊中了要害，這肯定會對銷售和利潤產生推動作用，因為我們看到我們的管理成本得到了更好的吸收。如果繼續增加成本。儘管我們一如既往地密切關注負擔能力。我們希望在那裡保持平衡。我們認為我們中沒有人想回到 1,300 至 1,600 美元的伐木日。這是相當不正常的。因此，我認為適度的成長是健康的，有利於穩定市場。

Okay. Thanks for your time guys.

好的。謝謝你們的寶貴時間。

Thank you.

謝謝。

Mike Dahl, RBC.

麥克·達爾，加拿大皇家銀行。

Morning. Thanks for taking my questions. Congrats again to Dave, Peter and Pete. I want to start with gross margins and maybe a two parter on both the contributors to the quarter and then thinking about that fourth quarter comment.

早晨。感謝您回答我的問題。再次恭喜戴夫、彼得和皮特。我想從毛利率開始，也許還有本季貢獻者的兩個合作夥伴，然後考慮第四季的評論。

I mean when you look at the outperformance in gross margin in the quarter, how would you bucket it out in terms of what, whether or not there was some benefit from the rising wood based product costs in the quarter versus maybe give us a sense of kind of on the recent M&A, whether the margin accretion from that or install, like if you could quantify any of that or kind of digital, really just what the drivers are?

我的意思是，當您查看本季度毛利率的優異表現時，您將如何從本季度木質產品成本上漲是否帶來一些好處以及可能給我們一種感覺方面來進行比較。利潤增加還是安裝，就像你可以量化其中任何一個或某種數字一樣，真正的驅動因素是什麼？

And similarly, looking into 4Q, it seems like your outlook slightly better than it was before. So if you can talk to those contributing factors or any quantification there, that would be great

同樣，展望第四季度，您的前景似乎比以前稍好一些。因此，如果您可以討論這些影響因素或任何量化，那就太好了

Mike, thanks for the question. With respect to fee performance and margin, we continue to see a normalization in the multifamily space. We continue to have positive uplift from productivity that we continue to deliver. And the rest of it is mix and mix within the core business, and it continues to deliver resilient margins better than what we had expected originally when we gave guidance last quarter.

麥克，謝謝你的提問。就費用表現和利潤率而言，我們繼續看到多戶住宅領域的正常化。我們繼續提供的生產力持續得到積極提升。其餘部分則在核心業務中混合和混合，並且它繼續提供比我們上季度給出指導時最初預期的更好的彈性利潤率。

As we look forward to Q4, we continue to see margin normalization in the multifamily, which is a broken record, and we continue to share that each quarter and some continued pressure and normalization in the core business due to the competitive environment that we're still in. And part of it is going to be some of the seasonal build, and we'll see some of that volume kind of shoulder off as we exit the year.

當我們展望第四季度時，我們繼續看到多戶住宅的利潤率正常化，這是一個打破的記錄，我們每個季度都會繼續分享這一點，並且由於我們所處的競爭環境，核心業務面臨一些持續的壓力和正常化。其中一部分將是一些季節性的建設，當我們結束今年時，我們將看到一些數量的減少。

Yes. I think Pete's right on in terms of the key drivers. We continue to be under a bit of pressure on the competitive dynamic. You'll see some seasonality, but I think, in general, what you're seeing is the continued strength of the core product offerings and the value add in terms of something that we have made a core part of what we do and has continued to be strong.

是的。我認為皮特對於關鍵驅動因素的看法是正確的。我們仍然面臨著競爭動態的一些壓力。你會看到一些季節性，但我認為，總的來說，你看到的是核心產品的持續強勁以及我們已將其作為我們業務的核心部分並持續不斷的增值。

Got it. Okay. Thanks for that. And then my second question, look, it's on the '25 scenarios, and I understand it is early days, as you say. But when I look across your range of start outcomes. I think some of the builders more recently have been a little more subdued in their outlooks than what some of these ranges would imply certainly the middle or upper ranges.

知道了。好的。謝謝你。然後是我的第二個問題，看，這是關於 25 年的情景，我知道正如你所說，現在還為時過早。但是當我查看你的開始結果範圍時。我認為最近一些建築商的前景比這些範圍中的一些範圍所暗示的中上範圍要柔和一些。

And then taking into account the some of the mix factors that have played out this year, it seems like your revenue guide, it might be suggesting that you actually go back to outpacing the starts environment. So two kind of big assumptions in there in terms of some improvement in the overall market and then some improvement relative to that.

然後考慮到今年出現的一些混合因素，這似乎是你的收入指南，它可能表明你實際上會回到超越開始的環境。因此，有兩種重大假設，即整體市場有所改善，然後相對於此有所改善。

I was hoping you could talk to that more how you built that and whether or not there are some bigger moving pieces in terms of like, okay, well, you're assuming x for digital and like some carryover M&A. Maybe just help us kind of bridge when you both, how you thought about starts, but also then framing your revenue versus starts, what some of those other big moving pieces are?

我希望你能更多地談談你是如何建造它的，以及是否有一些更大的移動部分，例如，好吧，好吧，你假設 x 代表數字，例如一些結轉併購。也許只是幫助我們在你們兩個之間建立橋樑，你們如何看待開始，然後確定你們的收入與開始，其他一些重要的動人部分是什麼？

Sure. I mean, I can provide a little bit of color. I won't go into too much detail, but you're right. There's a lot that goes into it. No question. I would say the starting point is maybe where we're most maybe disconnected based on your comments and your concern about the overall starts. We, at this stage of the game aren't folding in a lot of commentary, we're folding in mainly economist forecasts and the averages of the leading forecasters around the start numbers.

當然。我的意思是，我可以提供一點顏色。我不會講太多細節，但你是對的。其中涉及很多內容。毫無疑問。我想說，根據您的評論和您對整體開始的擔憂，起點可能是我們最可能脫節的地方。在遊戲的這個階段，我們不會加入太多評論，我們主要加入經濟學家的預測和主要預測者對起始數字的平均值。

While an individual builder is certainly important and an important partner for us. there's no one builder that's going to move the entire market. So we generally will stay at the economist level forecasting for starts, especially at the point we're at in early November.

對我們來說，個人建設者當然很重要，也是重要的合作夥伴。沒有任何一個建築商能夠改變整個市場。因此，我們通常會停留在經濟學家的層面上對開工率進行預測，尤其是在 11 月初的情況下。

We do have assumptions in there for commodity prices, for the M&A carryover, for productivity. We've got certainly an expectation that we'll be able to gain share with some of the initiatives we've leaned hard into things like digital and install.

我們確實對大宗商品價格、併購結轉和生產力進行了假設。我們當然期望能夠透過我們大力投入的一些措施（例如數位化和安裝）來獲得份額。

And I think it's fair to say that our thinking around the average cost per start is aligning around, it flattening out for the most part. We haven't seen continued decline. It's been more stable. I would say, since mid-summer on a year-over-year basis, we've certainly seen the comparisons, and we've tried to call those out, but it hasn't been something that's aggressively moved down after the reset earlier this year. So that's another variable that's included. But like I said, early days, some high-level analytics, we tried to be inclusive of the variables that we think are important. But as you know, this is a challenging game given how volatile things are lately.

我認為可以公平地說，我們對每次啟動的平均成本的想法是一致的，它在很大程度上趨於平緩。我們沒有看到持續下降。已經比較穩定了我想說的是，自仲夏以來，我們確實已經看到了這些比較，並且我們試圖指出這些情況，但在早些時候重置後，這一情況並沒有大幅下降。這是包含的另一個變數。但就像我說的，早期，一些進階分析，我們試圖包含我們認為重要的變數。但如您所知，鑑於最近局勢的不穩定，這是一場具有挑戰性的遊戲。

Okay, I appreciate that, Peter, thank you.

好的，我很感激，彼得，謝謝你。

David Manthey, Baird.

大衛曼蒂，貝爾德。

Thank you. Good morning and congratulations to everyone. My first question is clarification on slide 17. When you talk about productivity, does that capture both process improvements as well as scale? And then could you also define other commercial benefits just definitionally for us? Thanks.

謝謝。早上好，恭喜大家。我的第一個問題是對投影片 17 的澄清。當您談論生產力時，這是否同時體現了流程改善和規模？那麼您能否也為我們定義其他商業利益？謝謝。

Dave, thank you. I'm going to let Pete handle that one.

戴夫，謝謝你。我會讓皮特來處理那件事。

Yes. So within the productivity savings, that's process improvements. The scale that we get from the company really helps us leverage our knowledge and our expertise across the platform. But the productivity savings is process improvement on how we do things and how well we're buying, how well we're manufacturing and how well we're operating on a daily basis.

是的。因此，在生產力節省中，那就是流程改善。我們從公司獲得的規模確實有助於我們在整個平台上利用我們的知識和專業知識。但生產力的節省是我們做事方式、採購品質、製造品質以及日常營運品質的流程改善。

Within the other commercial benefits of saying (inaudible) there's customer supplier terms. We've talked about in the past where we used to have longer fixed price contracts. We've worked to eliminate those, shorten the duration. So we don't get pinched or absorbing all the commodity risk.

在其他說​​（聽不清楚）的商業利益中，有客戶供應商條款。我們過去曾討論過，我們曾經有較長的固定價格合約。我們一直在努力消除這些問題，縮短持續時間。因此，我們不會受到擠壓或吸收所有商品風險。

Our CRM tools that we put in place and how well we're managing our relationships with our customers and falling through, and that's where some of the scale is going to come into play. So you'll see that in the bullets on the side of that chart.

我們使用的 CRM 工具以及我們管理與客戶關係的情況以及失敗的程度，這就是一些規模將發揮作用的地方。因此，您會在圖表一側的項目符號中看到這一點。

Thank you. And Peter Jackson, you might have just described this, but I want to be clear. You talked about the trends in single family housing sizes. And I'm just wondering, in those scenarios, are you assuming any improvement or deterioration for that matter in any of those scenarios. It sounds like you're seeing that trend basically flatten out. Is that my understanding?

謝謝。彼得傑克遜，你可能剛剛描述了這一點，但我想澄清一下。您談到了單戶住宅面積的趨勢。我只是想知道，在這些情況下，您是否假設在任何這些情況下都會有任何改善或惡化。聽起來你看到這種趨勢基本上趨於平緩。這是我的理解嗎？

That's right. Yes. There's, there are a bunch of pieces in there, certainly square footage of the home being one, but mix of products in the home value of those same products that are appearing in the home, all part of that. But yes, we're expecting it to flatten out based on what we're seeing right now. Little bit of a lapping impact, but pretty modest.

這是正確的。是的。那裡有一堆東西，當然是房屋的平方英尺，但是房屋中出現的相同產品的房屋價值的混合產品，都是其中的一部分。但是，是的，根據我們現在所看到的情況，我們預計它會趨於平緩。一點點研磨影響，但相當溫和。

That's great. Okay. Thank you very much.

那太棒了。好的。非常感謝。

Thank you.

謝謝。

Rafe Jadrosich, Bank of America.

拉夫·賈德羅西奇，美國銀行。

Hi, good morning. Thanks for taking my question. And best of luck to Dave, and congrats to Peter and Pete. Just on the manufactured product segment, the year-over-year decline, can you, is it, would it be possible if you could talk a little bit about the impact of the multifamily, specifically multifamily trusses relative to everything else?

嗨，早安。感謝您提出我的問題。祝戴夫好運，祝賀彼得和皮特。就製成品領域而言，年減，您能談談多戶型，特別是多戶型桁架相對於其他一切的影響嗎？

Like obviously, multi-families sort of going through that normalization. But excluding that, what are you seeing in terms of the manufactured product like revenue trends? And any commentary on margins there would be helpful.

顯然，多家庭正在經歷這種正常化。但排除這一點，您對製成品（如收入趨勢）有何看法？任何關於利潤的評論都會有幫助。

Yes. Thanks for the question. I'll start, and then I'll hand it over to Peter. What you're seeing in the manufacturing products, specifically on the multifamily side. We've been talking about the normalization, but also the volume declines that we've seen in that multifamily space.

是的。謝謝你的提問。我先開始，然後把它交給彼得。您在製造產品中看到的，特別是在多戶住宅方面。我們一直在談論正常化，但也討論了我們在多戶住宅空間中看到的數量下降。

As a reminder, I think I mentioned in our prepared remarks that multifamily value added products was 70% of the multifamily overall. That used to be a much higher percent and that's also come down. And in the quarter or what we're seeing within multifamily, manufactured products is down almost 45% to 50% within that multifamily mix.

提醒一下，我想我在我們準備好的發言中提到，多戶型加值產品佔多戶型整體的 70%。這個比例過去要高得多，現在也有所下降。在本季度，或我們在多戶住宅中看到的情況，多戶住宅組合中的製成品下降了近 45% 至 50%。

We're anticipating that, that's going to continue to decline as what we're seeing from the starts and the volume normalize as we'd lap the higher year. The tough comps that we had last year was the peak, and Q3 being the highest point of that. It's just a big headwind, but we're seeing more stable volume and it's normalizing at a bottom as we exit the year.

我們預計，隨著我們從一開始就看到的情況，這一數字將繼續下降，隨著我們度過更高的一年，交易量將趨於正常化。去年我們的艱難比賽達到了頂峰，第三季是其中的最高點。這只是一個很大的逆風，但我們看到成交量更加穩定，隨著今年的結束，成交量正在底部正常化。

Yes. And I think just broadly speaking, the multifamily trust has been hardest here. The multifamily work part of the business has performed a bit better, been a bit more stable. The team has competed well and found other opportunities to protect the business.

是的。我認為，從廣義上講，多家庭信託在這裡是最困難的。該公司的多戶家庭工作部分錶現較好一些，也較穩定一些。該團隊在競爭中表現出色，並找到了其他機會來保護業務。

I think that the side, the single family side has certainly seen pressure, particularly in that category that we highlighted in the spoken remarks about floor trusses and the shift back to EWB. I think that's probably the only other color that I would add there.

我認為，單戶家庭方面肯定已經感受到了壓力，特別是在我們在有關樓板桁架和回歸 EWB 的口頭評論中強調的這一類別中。我想這可能是我要添加的唯一其他顏色。

In general, we're still pleased with manufactured products in general. I think it's performing well from a support to customer perspective, from an affordability perspective, from a competitive dynamic, we feel good about and it's a productivity source for us. But it certainly on a comp basis has been challenging.

總的來說，我們仍然對製成品感到滿意。我認為從支持客戶的角度、從負擔能力的角度、從競爭動態來看，它都表現良好，我們對此感覺良好，而且它是我們的生產力來源。但從補償的角度來看，這無疑是具有挑戰性的。

That's helpful. And then just on the gross margin bridge that you provided from 2019 to today, which is super helpful. The value add portion that, can you talk about how much of that is the margins changing within value add relative to just value add mix moving higher? And then like is there any changes we anticipate from the value add margins today going forward?

這很有幫助。然後就是您提供的從 2019 年到今天的毛利率橋樑，這非常有幫助。在增值部分，您能談談增值部分的利潤率相對於增值組合的上升有多少嗎？那麼，我們預計今天的增值利潤率是否會發生任何變化？

There's a lot in there, right? I mean we've done a ton of acquisitions. We've added a ton of capacity. We've made tremendous investment. A lot of that had to do with productivity savings within the category itself that sort of generated through the size and scale of those operations. So there's certainly a lot in there.

裡面有很多東西，對吧？我的意思是我們已經進行了大量的收購。我們增加了大量的容量。我們已經進行了巨大的投資。其中很大一部分與該類別本身的生產力節省有關，而這些生產力節省是透過這些業務的規模和規模而產生的。所以裡面一定有很多東西。

The performance generally speaking, I would say is sustainable from the perspective that we have a lot more to offer. We have a wider portfolio and geography coverage than we did in the past. So I think that's the exciting part about where we can continue to grow this business into the future.

一般來說，我認為從我們可以提供更多東西的角度來看，這種表現是可持續的。與過去相比，我們擁有更廣泛的投資組合和地理覆蓋範圍。所以我認為這是我們未來可以繼續發展這項業務的令人興奮的部分。

That expansion of install, the investments we've made in that business over the years being harvested as we return to growth. I think that's an exciting history for us, but even more exciting is what the future holds in that category.

隨著我們恢復成長，安裝量的擴大以及我們多年來在該業務上所做的投資正在收穫。我認為這對我們來說是一段令人興奮的歷史，但更令人興奮的是該類別的未來。

Great. Thank you.

偉大的。謝謝。

Philip Ng, Jefferies.

菲利普‧吳，杰弗里斯。

Hey guys, Congrats on a solid quarter now, choppy environment. I guess to kind of kick things off. When you look at your scenarios for 2025, is there any assumption that mortgage rates actually pull back from here?And what are you assuming for non-commodity products from a pricing standpoint. And certainly, very great to see an upbeat view on the market in your various scenarios.

嘿夥計們，恭喜您在動蕩的環境中實現了穩定的季度。我想是為了開始吧。當您審視 2025 年的情景時，是否有任何假設抵押貸款利率實際上會從現在開始回落？從定價的角度來看，您對非商品產品有何假設？當然，很高興在各種情況下看到市場的樂觀看法。

Peter, it would be helpful to kind of give us some perspective. As you kind of pointed out, the market is still pretty choppy, what that earnings power or margin profile could look like if single family starts are actually flat to down low single digits?

彼得，給我們一些觀點會很有幫助。正如您所指出的，市場仍然相當波動，如果單戶家庭開工率實際上持平或下降到低個位數，那麼獲利能力或利潤狀況會是什麼樣子？

Thank you, Philip, for your four questions. (Laughter) Let me try and jump at a couple of them, and you can correct me in point me back in the direction you want me to go. We, what I would say about the 2025 scenarios, we didn't do a downside. We could do a downside. I think generally speaking, like I said, the economists aren't signaling a downside.

謝謝菲利普提出的四個問題。（笑聲）讓我試著跳向其中的幾個，你可以糾正我，讓我回到你希望我走的方向。關於 2025 年的情景，我想說的是，我們沒有做任何不利的事情。我們可以做一個缺點。我認為一般來說，正如我所說，經濟學家並沒有發出負面訊號。

So it if that develops over time where we need to put something out there, we certainly can. We've done it in the past. We're not going to be shy about it. That hasn't been the predominant thinking in the recent past. I think that the ability of this business to perform in the downside is pretty positive, right?

因此，如果隨著時間的推移，我們需要推出一些東西，我們當然可以。我們過去已經做到了。我們不會對此感到害羞。這並不是最近的主流想法。我認為這項業務在下行時期的表現能力是相當積極的，對嗎？

We have demonstrated the ability to size ourselves, to be competitive, to get after it, ability to protect and hold margins to do it by partnering with customers with products that they want. So I think that's probably the theme that I want to (inaudible) with. Point me in a couple of other points you want me to highlight.

我們已經證明了我們有能力調整自己的規模、保持競爭力、追求目標、透過與客戶合作提供他們想要的產品來保護和維持利潤。所以我認為這可能是我想要的主題（聽不清楚）。請指出您希望我強調的其他幾點。

Your various scenarios, Peter, are you assuming any pullback in mortgage rates? And how are you thinking about (inaudible) products, not commodity?

彼得，你的各種情況是否假設房貸利率會有所回落？您如何看待（聽不清楚）產品，而不是商品？

So we don't have an explicit mortgage rate assumption in any of our stuff. I think what happens is it's basically embedded or implicit in what the economists are doing. My sense is most of them are taking the middle of the road (inaudible) and trying to step off of that, but we don't have an explicit assumption for it.

因此，我們的任何產品都沒有明確的抵押貸款利率假設。我認為發生的情況是它基本上是嵌入或隱含在經濟學家正在做的事情中。我的感覺是，他們中的大多數人都走在中間（聽不清楚）並試圖擺脫它，但我們對此沒有明確的假設。

In terms of pricing, I will say our sense from what we've seen from some vendors is that the era of cuts is ended. What we're seeing right now is stability in pricing in some modest, maybe low single digit price increases. We'll see where that pans out. It's a little early to be calling that yet, but that's the tone right now.

在定價方面，我想說的是，我們從一些供應商看到的情況是，降價時代已經結束。我們現在看到的是價格穩定，價格漲幅不大，可能是個位數的低漲幅。我們將看看結果如何。現在這麼說還為時過早，但這就是現在的基調。

Okay. That's super helpful. And then my next question is around M&A. How is the pipeline looking? Have you seen sellers come back to the market with some level of stabilization? And how do you kind of size the opportunities in front of you, smaller or larger deals in general?

好的。這非常有幫助。我的下一個問題是關於併購的。管道看起來怎麼樣？您是否看到賣家以某種程度的穩定回到市場？您如何衡量眼前的機會，無論是規模較小還是規模較大的交易？

Well, yes, I mean, there's no question the market is looking strong. I mean with six this quarter, I'd say the pipeline is strong. Smaller deals, by and large, make up this number, no question. But there are a number of really nice looking businesses out there.

嗯，是的，我的意思是，毫無疑問市場看起來很強勁。我的意思是，本季有六個，我想說管道很強大。毫無疑問，總體而言，較小的交易構成了這個數字。但那裡有很多看起來非常漂亮的企業。

I would say that sellers have come to the market with an intent to sell, right? They're not exploring. They're looking to move, but a pretty wide portfolio of items that we're looking at and continue to look at it. It's a good time to be find stuff.

我想說賣家來到市場是帶著出售的意圖，對嗎？他們不是在探索。他們正在尋求搬遷，但我們正在關注並繼續關注相當廣泛的項目組合。正是找東西的好時機。

Okay. Appreciate all the great color guys. Thank you.

好的。欣賞所有偉大的色彩傢伙。謝謝。

Jay McCanless, Wedbush.

傑伊·麥卡利斯，韋德布希。

Hey, thanks for taking my questions. Congratulations to everyone and thank you to you guys and your suppliers for helping out with the hurricane relief, really important work. So the first question I had, going back to slide 17, I guess, could you talk about what you saw improved from last quarter to this quarter that gave you the confidence to go ahead and move the gross margin number up and the EBITDA margin up?

嘿，謝謝你回答我的問題。恭喜大家，感謝你們和你們的供應商為颶風救援提供的幫助，這是非常重要的工作。因此，我想，回到幻燈片17，我想問的第一個問題是，您能否談談從上季度到本季度您所看到的改進，這些改進使您有信心繼續前進，提高毛利率和EBITDA 利潤率？

Thanks, Jay. Talking about 17, that's the long range view, right? So one of the things we had done during Investor Day was to give people a rough estimate around what we think normalized gross margins were going to be between 30% and 33%. A frequent question that we received was, wait a minute, help me get my head around this.

謝謝，傑伊。說到17，那是長遠的眼光，對嗎？因此，我們在投資者日期間所做的一件事就是向人們提供我們認為正常化毛利率將在 30% 到 33% 之間的粗略估計。我們常常收到的一個問題是，等一下，幫我解決這個問題。

What are the big pieces that I should understand if I bridge you from pre-BMC merger to what you're telling me is the future of this business. And we were a little hesitant to lay that out there until we have a little better understanding of what normalization was going to look like.

如果我將您從 BMC 合併前的內容與您告訴我的該業務的未來聯繫起來，我應該了解哪些重要內容。在我們對正常化是什麼樣子有更好的了解之前，我們有點猶豫是否要把它放在那裡。

And as things have kind of calmed down and we feel like there's a there is a clearer line of sight to what this business is and how it will continue to perform. We decided to put this out for everybody to understand the buckets of what has driven it, where we have gotten our sort of inputs to defend that midpoint of 30% to 33%, which is about 31.5%. So this isn't a Q4 or a '25 thing. This correlates back to the 2026 target for us for Investor Day.

隨著事情逐漸平靜下來，我們覺得對於這項業務是什麼以及它將如何繼續表現有了更清晰的認識。我們決定把這個發佈出來，讓每個人都了解推動這一趨勢的因素，我們已經獲得了一些投入來捍衛 30% 到 33% 的中點，即 31.5% 左右。所以這不是第四季或 25 年的事。這與我們在投資者日設定的 2026 年目標相關。

Okay. Great. And then I guess the other question I had, Peter, you talked earlier about R&R being a much larger consumer of lumber than single family starts. I guess could you talk to again what you guys are expecting for R&R this coming year and maybe what the industry kind of outlook is just so we know where things might go?

好的。偉大的。然後我想我有另一個問題，彼得，你之前談到 R&R 是比單戶家庭更大的木材消費者。我想你們能否再談談你們對來年的 R&R 有何期望，也許行業前景如何，以便我們知道事情可能會走向何方？

Yes. I mean, if you look at the overall, I want to, just to clarify, right, based on what we've seen from a couple of different sources, R&R is probably in DIY is about half of the demand for lumber and sort of the commodity product. We're closer to one-fourth to one-third with the rest of it being industrial and commercial.

是的。我的意思是，如果你從整體上看，我想澄清一下，根據我們從幾個不同來源看到的情況，R&R 可能在 DIY 中大約佔木材需求的一半，商品產品。我們接近四分之一到三分之一，其餘的是工業和商業。

So certainly, that DIY R&R space is more important. The tone has been pretty good. I think the sense is that there is a lot of pent up demand for renovations as the housing stock in this country ages. There are certain commentators, for example, who's pretty, I won't say excited, but positive about what R&R can do if we start to see a little bit of pullback in the mortgage rates, and it starts to release a little bit of that lock-in effect that people have experienced since mortgage rates went up.

當然，DIY R&R 空間更為重要。語氣已經很好了。我認為，隨著這個國家的房屋存量老化，存在著大量被壓抑的翻修需求。例如，有一些評論員，我不會說很興奮，但對 R&R 可以做的事情持積極態度，如果我們開始看到抵押貸款利率略有回落，並且它開始釋放一點點自從抵押貸款利率上升以來，人們經歷了鎖定效應。

So that would certainly be a tailwind a balancing out in the market, I think a revival of what that represents for demand on the construction industry. I think all of that is pretty favorable for builders for source on balance. So that's certainly a positive we look forward to. Pretty modest and from what we see so far in the forecast for '25 itself. But over sort of '25, '26-ish we think there's good momentum there.

因此，這肯定會成為市場平衡的順風，我認為這代表著建築業需求的復甦。我認為總的來說，所有這些對於原始碼建構者來說都是相當有利的。所以這當然是我們期待的正面因素。從我們目前為止對 25 年的預測來看，這個數字相當溫和。但在 25 世紀、26 世紀左右，我們認為那裡有良好的勢頭。

Okay. That's great. Thanks for taking my questions.

好的。那太棒了。感謝您回答我的問題。

Thanks, Jay.

謝謝，傑伊。

Jeffrey Stevenson, Loop Capital.

傑弗裡·史蒂文森，Loop Capital。

Hi, thanks for taking my questions today. Congrats, Dave, Peter and Pete. So productivity savings are coming in better than expected this year through efficient manufacturing and procurement initiatives. I just wondered how long a runway do you have on the strong productivity savings benefits you've seen over the last few years? And should we expect this trend to continue in 2025?

您好，感謝您今天回答我的問題。恭喜戴夫、彼得和皮特。因此，透過高效率的製造和採購計劃，今年的生產力節省效果比預期好。我只是想知道您在過去幾年中看到的強大的生產力節省優勢還有多長的路要走？我們是否應該預期這種趨勢將在 2025 年持續下去？

Thanks. Yes. Productivity is something this organization is really engaged in very effectively sharing of best practices, working together on feed ideas, ways of doing business that just takes out waste and inefficiencies at a real fundamental level has been super successful. We think there's more opportunity for that.

謝謝。是的。生產力是該組織真正致力於非常有效地分享最佳實踐、共同研究提要想法、從根本上消除浪費和低效率的業務方式已經取得了巨大成功。我們認為還有更多機會。

But I won't overstate the impact of the transition that we'll see over the next couple of years towards our ERP conversion. So there has to be a balance there, both take a lot of time and energy from the organization. So we'll continue to balance it out from a timing perspective.

但我不會誇大未來幾年我們將看到的 ERP 轉型的影響。因此必須保持平衡，兩者都需要組織投入大量時間和精力。因此，我們將繼續從時間角度進行平衡。

But there's zero question, I would say, in my mind and in the minds of the operating leaders that we can continue to get better, that we can continue to drive productivity savings well into the future. I think we're just in the early innings of what we can do with just a fantastic business and a wonderful platform, particularly as we take advantage of technology and better tools for our teams.

但我想說，在我和營運領導者的心中，毫無疑問我們可以繼續變得更好，我們可以在未來繼續推動生產力節約。我認為我們正處於利用出色的業務和出色的平台所能做的事情的早期階段，特別是當我們為我們的團隊利用技術和更好的工具時。

Okay. That's great to hear, Peter. And then I was wondering if you could talk more about the trade-off you're seeing, the lower value products such as an example in your prepared remarks of builders using EWP instead of floor trusses from the focus on lower value in complex home. I just wondered, how widespread is this across regions? And do you expect it to continue well into 2025.

好的。很高興聽到這個消息，彼得。然後我想知道您是否可以更多地談論您所看到的低價值產品的權衡，例如您準備好的評論中的一個例子，建築商使用 EWP 而不是地板桁架，重點關注複雜住宅的低價值。我只是想知道，這種情況在不同地區有多普遍？您預計這種情況會持續到 2025 年嗎？

Well, we're certainly seeing it everywhere. I would say every homebuilder in their own way is trying to adapt to the affordability challenges. It's tough for home buyers just given the world that we live in to afford these new prices. And so we're all looking for ways to do what we do more efficiently.

嗯，我們確實到處都可以看到它。我想說，每個房屋建築商都在以自己的方式努力適應負擔能力的挑戰。考慮到我們生活的世界，購屋者很難負擔這些新價格。因此，我們都在尋找更有效地進行工作的方法。

So whether it's size of the home, whether it's value of the products that are going in being a little more sharper with the pencil in terms of pricing or, and this is, I think, more direct to your comment, what's the mix of products that are going to show up in the actual (inaudible)

因此，無論是房屋的大小，還是產品的價值（在定價方面用鉛筆變得更清晰），或者，我認為，這對您的評論來說更直接，產品的組合是什麼將會出現在實際中（聽不清楚）

I think you've seen even today, announcements from manufacturers of building materials that have pointed to negative mix, people have moved to the simpler, cheaper option in order to make sure the price point for these homes match up to the monthly payment capability of the current homebuilder.

我想即使在今天，您也已經看到，建築材料製造商的公告指出了負面組合，人們已經轉向更簡單、更便宜的選擇，以確保這些房屋的價格點與每月支付能力相匹配。的房屋建築商。

I think it has been a bit of a two year step down. We're not seeing the continued pace of those declines. They seem to have stabilized to a large degree. That's not to say we won't see some shifts in individual product categories. But I think what we have seen throughout the back half of this year so far has been a more stable output in terms of what is going into homes, size of the homes, value of the products, that sort of thing.

我認為這已經是兩年的退步了。我們沒有看到這些下降的持續速度。他們似乎在很大程度上已經穩定下來。這並不是說我們不會看到個別產品類別發生一些變化。但我認為，今年下半年到目前為止，我們在房屋的投入、房屋的大小、產品的價值等方面看到了更穩定的產出。

Very helpful. Thanks, Peter.

非常有幫助。謝謝，彼得。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Good morning. I wanted to ask on the R&R and other category, another quarter of solid organic growth versus the backdrop. I'm curious if you could share a bit more on the central region strength versus other regions? What is allowing you to outperform?

早安.我想詢問 R&R 和其他類別的情況，與背景相比，又一個季度實現了穩健的有機成長。我很好奇您是否可以分享更多關於中部地區與其他地區相比的優勢？是什麼讓你表現優異？

And then maybe lastly, just to make my second question wrapped up into this, how much is value added products a factor in this category? Thanks.

最後，為了讓我的第二個問題歸結為這一點，增值產品在這一類別中的影響有多大？謝謝。

So maybe second question first. Certainly, a smaller component of the R&R business. That is more varied from a product perspective, a lot more categories go through that, just given the nature of what we sell and where we sell it.

所以也許首先是第二個問題。當然，R&R 業務的較小組成部分。從產品的角度來看，情況更加多樣化，考慮到我們銷售的產品的性質和銷售地點，更多的類別都會經歷這種情況。

Certainly, a bit of variance between the individual divisions between those markets. I would say we've had some pretty nice success in some of our smaller markets, particularly in the North Central around the R&R space. They performed well.

當然，這些市場之間的各個部門之間存在著一些差異。我想說，我們在一些較小的市場上取得了相當大的成功，特別是在中北部的 R&R 空間周圍。他們表現得很好。

But in general, I think it's a strength for us just as we continue to have available capacity and open our doors to the smaller re-modeler. We have a lot of value that we can provide them with subject matter expertise and product knowledge. And generally, we do have success in that category when we focus on it. But just to repeat it, it's a fairly small percentage of our overall business.

但總的來說，我認為這對我們來說是一種優勢，就像我們繼續擁有可用產能並向較小的改造商敞開大門一樣。我們有很多價值，可以為他們提供主題專業知識和產品知識。一般來說，當我們專注於該領域時，我們確實會取得成功。但重複一遍，它只占我們整體業務的一小部分。

Great. Thank you.

偉大的。謝謝。

Thanks, Steven.

謝謝，史蒂文。

Ketan Mamtora, BMO Capital Markets.

Ketan Mamtora，BMO 資本市場。

Thank you. Coming back to multifamily. In, when you talk about 2025, you've got $400 million to $500 million revenue sort of decline. Is that more of just lapping sort of year-over-year sort of deterioration as you move through 2024? Or are you sort of factoring in sort of further declines in 2025, because it's still a pretty meaningful sort of year-over-year drop?

謝謝。回到多戶家庭。當你談論 2025 年時，你的收入會下降 4 億到 5 億美元。進入 2024 年，這是否只是逐年惡化？或者您是否考慮到 2025 年會進一步下降，因為這仍然是相當有意義的同比下降？

It's primarily lapping. Yes. It's, I would say we stabilized, but the lapping effect will still be there.

主要是研磨。是的。我想說我們已經穩定下來了，但研磨效應仍然存在。

Understood. And on the margin normalization side, both for multi-family and for single-family. Are you seeing signs that we are sort of closer to the end there in terms of sort of the competitive price pressures? Or is it sort of still continuing as we move into Q4 and next year?

明白了。在邊際標準化方面，無論是多戶家庭或單戶家庭。您是否看到有跡象表明，就競爭性價格壓力而言，我們已經接近終點了？或者，當我們進入第四季和明年時，這種情況是否仍在繼續？

With the multifamily margin normalization, it's continuing to wane and fade. As we said on prior calls, we think it's going to kind of normalize out by Q1 of next year, but we're really hitting that exit rate. And most of the normalization you see in the results is a year-over-year comp to the prior year's strength that we had.

隨著多戶家庭利潤率的正常化，它正在繼續減弱和消失。正如我們在先前的電話會議中所說，我們認為到明年第一季度，這種情況將趨於正常化，但我們確實達到了退出率。您在結果中看到的大部分正常化都是與我們上一年的實力相比的逐年比較。

I'd say overall, we're in late innings. We're much closer to the end in terms of the margin normalization. We certainly have teed up that 100 basis point sort of based on the exit velocity that we're seeing. I don't want to miss the opportunity to highlight we're still well below normal starts. So that certainly creates pressure. But based on where we came from, we believe we're much closer than the beginning.

我想說，總的來說，我們處於最後幾局。就利潤率標準化而言，我們已經更接近終點了。我們當然已經根據我們所看到的退出速度準備了 100 個基點。我不想錯過強調我們仍然遠低於正常開局的機會。所以這肯定會產生壓力。但根據我們的出發點，我們相信我們已經比開始時更接近了。

Very helpful. Thank you.

非常有幫助。謝謝。

Alex Rygiel, B Riley.

亞歷克斯·里吉爾，B·萊利。

Thank you, gentlemen. A very nice quarter. As it relates to the installed sales, which increased about 11% in the quarter, what percentage of your overall net sales is that today? And how does that impact your gross margin?

謝謝你們，先生們。一個非常美好的季度。由於它與安裝銷售額有關，該季度增長了約 11%，那麼今天的銷售額佔您的整體淨銷售額的百分比是多少？這對您的毛利率有何影響？

So it's 11% a year-to-date improvement over the prior year. The margin profile on install is kind of at our normal mix across because we're installing products windows, doors, millwork, as well as some framing and trusses and siting and other products.

因此，今年迄今比前一年提高了 11%。安裝的利潤概況與我們正常的混合情況類似，因為我們正在安裝產品窗戶、門、木製品，以及一些框架、桁架、選址和其他產品。

So it's very complementary to the overall margins that we have across all the product categories. Size of install, I think you want to know. So install was about, I think it was $2.5 billion, $2.6 billion last year. It's increased. So it's going to be a relative increase from that.

因此，它與我們所有產品類別的整體利潤非常互補。安裝的大小，我想你想知道。所以去年的安裝費用大約是 25 億美元、26 億美元。增加了。因此，這將是一個相對增長。

Thank you. And then as it relates to digital tools, given where we are in the housing cycle, how should we think about that as it relates to sort of your marketing of the product and its receptivity to the product?

謝謝。然後，由於它與數位工具相關，考慮到我們在住房週期中的位置，我們應該如何考慮它，因為它與您的產品行銷及其對產品的接受程度有關？

Yes, I'm glad you asked that question. So digital is, it's still very exciting. The product works, it is absolutely cutting edge and unique in the industry in terms of what we can do versus any competition that exists out there.

是的，我很高興你問這個問題。所以數位化了，它仍然非常令人興奮。該產品有效，就我們與現有的任何競爭對手相比，它在行業中絕對是前沿和獨特的。

But it's new, right? It's technology in an industry that hasn't historically adopted it quickly. And it's a different way of thinking about how to be more efficient. We've got a lot of really good momentum. It's certainly hard. I will confess, it's maybe even harder than we gave it credit for, but it's worked.

但它是新的，對吧？這項技術在歷史上並未被迅速採用的行業中採用。這是一種思考如何提高效率的不同方式。我們有很多非常好的勢頭。這當然很難。我承認，這可能比我們想像的還要困難，但它確實有效。

And so we're continuing to lean in, continuing to partner with homebuilders, continuing to leverage our team internally to utilize the tools and to help customers get comfortable with the tools. But given our focus on the sort of 50 to 250 starts a year builder, and how much pressure they've been under over the past couple of years because of rates, it's been challenging.

因此，我們將繼續努力，繼續與住宅建築商合作，繼續利用我們的內部團隊來利用這些工具並幫助客戶熟悉這些工具。但考慮到我們關注的是每年 50 至 250 家開工的建築商，以及他們在過去幾年因利率而承受的壓力，這一直具有挑戰性。

I do believe this is one way they can compete, that they can be more efficient, that they can be more professionalized and make their business better and more competitive against the big guys. So we think, ultimately, it will be a positive. But certainly, in the near term, it's serving a market that's been under pressure. No question.

我確實相信這是他們競爭的一種方式，他們可以變得更有效率，他們可以更加專業化，讓他們的業務變得更好，與大公司相比更具競爭力。所以我們認為，最終這將是積極的。但可以肯定的是，在短期內，它正在為一個一直面臨壓力的市場提供服務。毫無疑問。

Thank you very much.

非常感謝。

As there are no further questions at this time, ladies and gentlemen, that will conclude today's question and answer session and the Builders FirstSource third-quarter 2024 earnings conference call. Thank you for your participation. You may disconnect your line at this time, and have a wonderful rest of your day.

女士們先生們，由於目前沒有其他問題，今天的問答環節和 Builders FirstSource 2024 年第三季財報電話會議將結束。感謝您的參與。此時您可以斷開線路，度過美好的一天。