HNI Corp (HNI) 2025 Q2 法說會逐字稿

Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the HNI Corporation second-quarter fiscal 2025 results conference call. (Operator Instructions)

感謝您的支持。我叫卡莉，今天我將擔任您的會議主持人。現在，我歡迎大家參加HNI公司2025財年第二季業績電話會議。 （接線生指示）

I would now like to turn the conference over to Mr. Matt McCall. You may begin.

現在我想將會議交給馬特·麥考爾先生。你可以開始了。

Good morning. My name is Matt McCall. I'm Vice President of Investor Relations and corporate development for HNI Corporation. Thank you for joining us to discuss our second quarter of 2025 results. With me today are Jeff Lorenger, Chairman, President, and CEO; and Vincent Berger, Executive Vice President and CFO.

早安.我的名字是馬特·麥考爾。我是HNI Corporation投資者關係和企業發展副總裁。感謝您與我們一起討論2025年第二季的業績。今天與我一起的有董事長、總裁兼執行長 Jeff Lorenger 和執行副總裁兼財務長 Vincent Berger。

Copies of our financial news release and non-GAAP reconciliations are posted on our website. Statements made during this call that are not strictly historical facts are forward-looking statements which are subject to known and unknown risk.

我們的財務新聞稿和非公認會計準則對帳表的副本已發佈在我們的網站上。本次電話會議所作的陳述並非嚴格的歷史事實，而是前瞻性陳述，受已知和未知風險的影響。

Actual results could differ materially. The financial news release posted on our website includes additional factors that could affect actual results. The corporation assumes no obligation to update any forward-looking statements made during the call.

實際結果可能存在重大差異。我們網站上發布的財務新聞稿包含可能影響實際結果的其他因素。該公司不承擔更新電話會議期間所作任何前瞻性陳述的義務。

I am now pleased to turn the call over to Jeff Lorenger. Jeff?

我現在很高興將電話轉給 Jeff Lorenger。傑夫？

Good morning. Thank you for joining us. I'm going to divide my commentary today into three sections. First, I will provide some comments about our second quarter results. Non-GAAP earnings per share increased more than 40% year over year with solid revenue growth in both segments.

早安.感謝大家收看。我今天的評論將分為三個部分。首先，我將對我們第二季的業績發表一些評論。非公認會計準則每股收益年增 40% 以上，兩個部門的收入均穩健成長。

Next, I will discuss our expectations for the remainder of 2025. Our earnings outlook has modestly increased from what we provided on our last quarter call. We continue to anticipate a fourth consecutive year of double-digit non-GAAP earnings improvement. And finally, I will provide additional detail about recent demand activity and how we see our markets playing out over the rest of the year. I've also discussed the confidence we have in our strategies and an update on our elevated EPS growth visibility.

接下來，我將討論我們對 2025 年剩餘時間的期望。與上一季電話會議中給出的獲利預期相比，我們的獲利預期略有上調。我們繼續預期非公認會計準則獲利將連續第四年實現兩位數成長。最後，我將提供有關近期需求活動以及我們對今年剩餘時間市場趨勢的更多詳細資訊。我還討論了我們對策略的信心以及我們每股收益成長可見度的提升的最新情況。

Following those highlights, VP will provide additional caller around our third quarter and updated full year outlook. He will also comment on our strong balance sheet. I will conclude with some closing comments before we open the call to your questions.

繼這些亮點之後，副總裁將在第三季提供更多來電並更新全年展望。他也將對我們強勁的資產負債表發表評論。在我們開始回答你們的問題之前，我將作一些結束語。

Let's begin with the second quarter. Our strategies are working, and our members delivered another excellent quarter. The benefits of our diversified revenue streams and the merits of our customer first business model continue to deliver strong shareholder value. For the quarter, we delivered non-GAAP earnings per share of $1.11. The 41% year-over-year EPS growth was ahead of our internal expectations. Much of the earnings upside was driven by better-than-expected volume growth. Both segments generated year-over-year top-line growth in excess of 5%.

讓我們從第二季開始。我們的策略正在發揮作用，我們的成員又創造了一個出色的季度。我們多元化的收入來源和客戶至上商業模式的優點持續為股東帶來強大的價值。本季度，我們實現的非公認會計準則每股收益為1.11美元。每股盈餘較去年同期成長41%，超出了我們的內部預期。獲利成長很大程度上得益於好於預期的銷售成長。兩個部門的營收年增均超過 5%。

With both modestly exceeding the expected ranges we discussed on last quarter's conference call. Profitability in the Second quarter was also strong. Consolidated non-GAAP gross margin expanded 90 basis points on a year-on-year basis to 42.9%.

兩者都略微超出了我們在上個季度電話會議上討論的預期範圍。第二季的獲利能力也很強勁。合併非美國通用會計準則毛利率較去年同期擴大90個基點至42.9%。

Our non-GAAP operating margin expanded 200 basis points year over year to 11%. This event margin was the highest on record for the Second quarter, driven by the impact of volume growth along with our profit transformation efforts and KI synergies. In the workplace furnishing segment, organic net sales increased more than 8% year over year, [fueled] by broad-based growth across the portfolio.

我們的非公認會計準則營業利潤率年增 200 個基點，達到 11%。受銷售成長、利潤轉型努力和 KI 綜效的影響，這項活動利潤率創下了第二季的歷史新高。在工作場所家具領域，有機淨銷售額年增超過 8%，這得益於整個產品組合的廣泛成長。

We experienced noteworthy strength in our contract brands with revenue up nearly 15% year over year. We also saw a return to growth in our brands focused on small and medium sized businesses where revenue was slightly up year over year.

我們的合約品牌表現出色，營收年增近 15%。我們也看到專注於中小型企業的品牌恢復成長，營收較去年同期略有成長。

From a profitability perspective, workplace furnishings non-gap margin expanded 120 basis points year over year to a strong 13.1%. Our profit transformation efforts and realization of KI synergies continue to deliver benefits, driving segment even margin to record second-quarter levels. Broadly, while there was some revenue and profit pull forward activity driven by pricing actions, the impact during the quarter was modest.

從獲利能力角度來看，辦公家具非縫隙利潤率年增120個基點，達到13.1%。我們的利潤轉型努力和關鍵業務綜效的實現持續產生效益，推動分部利潤率達到第二季創紀錄的水平。總體而言，儘管定價舉措推動了一些收入和利潤的提前成長，但本季的影響並不大。

Finally, in residential building products, second-quarter revenue increased more than 5% year over year. Revenue from new construction channel, the new construction channel was up more than 4%, and remodel retrofit sales grew over 7%, both on a year-over-year basis. We delivered this top-line growth despite continued challenging housing market dynamics as we are competing well and our internal growth investments are beginning to bear fruit.

最後，在住宅建築產品方面，第二季營收年增超過5%。新建建築通路營收年增超過4%，改造翻新銷售額較去年同期成長超過7%。儘管房地產市場情況持續嚴峻，我們仍然實現了這一成長，這得益於我們良好的競爭力以及內部成長投資初見成效。

Residential building products' profitability was also strong in the quarter. Segment operating profit grew 20% year over year. And segment operating margin expanded to 190 basis points from the same period of 2024 to a solid 15.7%. The consistently strong profit margins in this segment are evidence of the business' unmatched price point, breadth, and channel reach, along with the benefits of its vertically integrated business model and overall operational agility.

本季住宅建築產品的獲利能力也十分強勁。該部門營業利潤年增20%。該部門營業利益率較 2024 年同期擴大 190 個基點，達到 15.7%。該部門持續強勁的利潤率證明了該業務無與倫比的價格點、廣度和通路覆蓋範圍，以及其垂直整合業務模式和整體營運靈活性的優勢。

To summarize our collective results, our revenue growth and profit improvement demonstrate the strength of our strategies and our customer first business model, the resilience of our members and our proven ability to manage through varying macro-economic conditions. That leads me to my comments about our outlook for the remainder of 2025.

總結我們的整體業績，我們的收入成長和利潤提高證明了我們策略和客戶至上商業模式的優勢、我們成員的韌性以及我們在各種宏觀經濟條件下進行管理的成熟能力。這讓我對 2025 年剩餘時間的前景發表了評論。

Our margin expansion efforts and expectations for continued revenue growth will support ongoing year over year EPS improvement as we move through the second half of the year, all while we continue to invest to drive future growth. In workplace furnishings, orders grew in the quarter across all major office brands.

我們的利潤率擴張努力和對持續收入成長的預期將支持我們在今年下半年實現每股收益的逐年改善，同時我們將繼續投資以推動未來成長。在工作場所家具方面，本季所有主要辦公品牌的訂單均有所成長。

We saw a return to order growth in the SMB space with orders up 3%. Our contract brands outperformed with orders growing 5% year over year. When it's cluing hospitality. We are excluding hospitality for the metric as the business experienced a meaningful tariff-related pause in activity during the quarter, which was which has temporarily skewed results. I will discuss our positive outlook for the hospitality market more in a moment.

我們看到中小企業領域的訂單恢復成長，成長了 3%。我們的合約品牌表現出色，訂單年增 5%。當它暗示熱情好客時。我們將酒店業排除在該指標之外，因為該業務在本季度經歷了與關稅相關的重大活動暫停，這暫時扭曲了結果。我稍後將進一步討論我們對酒店市場的積極展望。

As was the case with revenue and profits, we did see some order pull forward in the quarter. However, adjusted segment orders, which exclude hospitality and the impact of pull forward activity, were still up for the quarter on a year-over-year basis.

與收入和利潤的情況一樣，我們確實看到本季度有一些訂單提前。然而，調整後的部門訂單（不包括酒店業和提前活動的影響）本季仍比去年同期有所增長。

In addition, total segment backlog is up 5% year over year. So we continue to see encouraging signs that support our view of volume improvement while at the same time we are increasingly focusing our investments and driving revenue growth in this segment.

此外，總分部積壓訂單年增5%。因此，我們繼續看到令人鼓舞的跡象，這些跡象支持我們對銷售改善的看法，同時我們越來越集中投資並推動該領域的營收成長。

Moving to residential building products, orders in the second quarter decreased approximately 2% year over year. Going back to the first quarter, we saw some order pull ahead in March, which negatively impacted order growth in the month of April. However, as the impact of pull forward activity abated, year-over-year order improvement returned in both May and June. Builder sentiment continues to reflect the impacts of elevated interest rates, ongoing affordability issues, and weaker consumer confidence, and housing trends have broadly followed builder sentiment.

住宅建築產品方面，第二季訂單較去年同期下降約2%。回顧第一季度，我們發現3月訂單有所回落，這對4月的訂單成長產生了負面影響。然而，隨著提前活動的影響減弱，5 月和 6 月的訂單量均出現同比改善。建築商情緒持續反映利率上升、持續的負擔能力問題以及消費者信心減弱的影響，住房趨勢也大體上跟隨建築商情緒。

Despite the current environment, however, we believe in the long term opportunities tied to the housing market and in the strength of our market leading positions and profitable operating model. This supports our ongoing level of investment. I will finish by making a few comments about our markets and provide additional detail around our elevated 2025 EPS growth visibility.

儘管當前情況如此，我們仍然相信房地產市場具有長期機會，並且相信我們的市場領先地位和獲利營運模式的優勢。這支持了我們持續的投資水準。最後，我將對我們的市場發表一些評論，並提供有關我們提升的 2025 年每股收益成長前景的更多細節。

On our last few earnings calls, we highlighted an increased focus on investing to drive growth in both segments. Our first-half 2025 revenue strengths and encouraging leading indicators provide added support for our growth initiatives. As we look at our workplace furnishing segment, we experience solid revenue and order growth across all major office brands.

在我們最近的幾次收益電話會議上，我們強調要更加重視投資以推動兩個部門的成長。我們 2025 年上半年的收入優勢和令人鼓舞的領先指標為我們的成長計劃提供了額外的支持。當我們審視我們的工作場所家具部門時，我們發現所有主要辦公品牌的收入和訂單都實現了穩健的成長。

SMB orders rebounded and grew in the quarter after a brief pause in late 2024 and early 2025. We remain bullish about the fundamentals of this business. We believe our strength in the SMB space and our broad price point breadth continue to be competitive differentiators.

中小企業訂單在 2024 年末和 2025 年初短暫滯後，在本季度反彈並成長。我們仍然對該業務的基本面持樂觀態度。我們相信，我們在中小企業領域的優勢和廣泛的價格範圍將繼續成為我們的競爭優勢。

This is especially true as more cost-conscious customers embrace price mixing across projects, increasingly commingling SMB products in the contract settings. In our contract business, we expect growth to continue in the back half of 2025. We see encouraging signs associated with larger projects across all our key verticals and saw customers return to a business as usual mentality.

尤其當更多注重成本的客戶接受跨專案的價格混合，並在合約設定中越來越多地混合 SMB 產品時，情況就變得尤其如此。在我們的合約業務中，我們預計 2025 年下半年將繼續成長。我們在所有關鍵垂直領域的大型專案中都看到了令人鼓舞的跡象，並且看到客戶恢復了正常的業務心態。

We believe we are seeing the release of {pent up} demand as a focus on in-office work continues to highlight the need to refresh and reset spaces to adapt to the new ways work is done, and to more people in office. As a result, pre-sale activity, orders and backlogs were all up.

我們相信，我們看到了{被壓抑的}需求的釋放，因為對辦公室工作的關注繼續凸顯了更新和重新設置空間以適應新的工作方式和更多辦公室人員的必要性。結果，預售活動、訂單和積壓量均增加。

Finally, I'll comment on our hospitality business. As I mentioned, we saw a tariff-related demand pause during the quarter. This business relies heavily on imported products, primarily from Vietnam and China. As a result, many customers tap the Breaks on new projects as tariff uncertainty spike. We have seen an improvement in activity and our pipeline has rebounded significantly.

最後，我要評論一下我們的酒店業務。正如我所提到的，我們在本季看到與關稅相關的需求暫停。該業務嚴重依賴進口產品，主要來自越南和中國。因此，隨著關稅不確定性的加劇，許多客戶開始利用這項優惠來開發新項目。我們看到活動有所改善，我們的管道也顯著反彈。

So while this business can be lumpy, we remain enthusiastic about hospitality demand prospects as macro volatility [subsides]. Looking ahead, we believe we are particularly well positioned to benefit as the workplace furnishings market continues to improve.

因此，儘管這項業務可能不穩定，但我們仍然對酒店業的需求前景充滿熱情，因為宏觀波動[消退]。展望未來，我們相信，隨著工作場所家具市場的持續改善，我們將特別有利地受益。

We have a portfolio of brands with unmatched product and pricing, breadth and depth, allowing us to meet any furniture need a customer has. We have products that work for customers ranging from small businesses to the largest multinationals.

我們擁有一系列品牌，其產品和價格、廣度和深度都無與倫比，使我們能夠滿足客戶的任何家具需求。我們的產品適用於從小型企業到大型跨國公司的各種客戶。

Our brands are distributed widely across geographies, from tertiary markets to the top MSAs. And we can broadly meet the needs of workplaces, schools, healthcare facilities, and hotels. Moving to residential building products, we continue to believe in the position in the positive long-term market fundamentals.

我們的品牌廣泛分佈於各個地區，從三級市場到頂級 MSA。我們可以廣泛滿足工作場所、學校、醫療機構和飯店的需求。轉向住宅建築產品，我們仍然相信長期市場基本面的正面地位。

We are performing well despite an ongoing soft new construction and R&R environment, and we acknowledge the market-driven revenue recovery will take time. We are, however, optimistic about our opportunities to increase revenue through our growth initiatives. Specifically, we continue to invest in developing market leading new products that offer customers more options and features.

儘管新建築和 R&R 環境持續疲軟，但我們的表現仍然良好，我們承認市場驅動的收入復甦需要時間。然而，我們對透過成長舉措增加收入的機會持樂觀態度。具體來說，我們繼續投資開發市場領先的新產品，為客戶提供更多選擇和功能。

We are driving new programs to increase homeowner and home buyer awareness of their fireplace options, ensuring our products are considered in all remodel and new construction projects. And we are strengthening our already strong relationships with builders across the country, helping them deliver the best overall value to the homeowner. Encouragingly, we are driving growth in this segment while still being in the early days of each of these initiatives.

我們正在推動新計劃，以提高房主和購房者對壁爐選擇的認識，確保我們的產品在所有改造和新建項目中得到考慮。我們正在加強與全國各地建築商之間本已牢固的關係，幫助他們為房主提供最佳的整體價值。令人鼓舞的是，儘管這些舉措仍處於早期階段，但我們仍在推動這一領域的成長。

And while we invest in growth, we will continue to deliver high margin results and strong profits in this business. Longer-term, single-family housing remains under supply, and demographics will support additional demand growth.

在我們投資成長的同時，我們將繼續在該業務中實現高利潤率和強勁利潤。長期來看，單戶住宅仍然供應不足，人口結構將支持額外的需求成長。

The results of our ongoing investments which will enhance our connection to customers and build on our leading brands, will fortify our position of strength in the industry. Finally, and importantly, we continue to have elevated earnings visibility this year and next. Our outlook for 2025 continues to include full year revenue growth in both segments. In addition, our earnings per share outlook moves modestly higher.

我們持續投資的結果將增強我們與客戶的聯繫、鞏固我們的領先品牌，並鞏固我們在產業中的優勢地位。最後，也是最重要的一點，我們今年和明年的獲利前景持續保持成長。我們對 2025 年的展望仍包括兩個部門的全年營收成長。此外，我們的每股盈餘預期將小幅上調。

We continue to have high visibility and significant profit growth driven by operational efficiencies. As a reminder, we have two initiatives underway in this area, Mexico and KI synergies.

在營運效率的推動下，我們繼續保持較高的知名度和顯著的利潤成長。提醒一下，我們在該領域有兩項舉措正在進行，即墨西哥和KI協同效應。

In recent quarters, we highlighted an expected benefit of $70 to $0.80 of additional EPS through 2026. To date, we have recognized approximately $0.24 of EPS benefit, leading $50 to $0.60 to be recognized over the next 18 months. This is a modest increase from our previously communicated range and continues to provide visibility into Fifth consecutive year of double digit EPS growth.

在最近幾個季度，我們強調了到 2026 年預計額外每股收益將達到 70 美元至 0.80 美元。到目前為止，我們已確認約 0.24 美元的每股收益，這意味著未來 18 個月內將確認 50 至 0.60 美元的每股收益。這比我們先前公佈的範圍略有增加，並將繼續為連續第五年實現兩位數的每股收益成長提供前景。

I will now send a call over to VB to discuss our outlook for the remainder of 2025.

我現在將致電 VB，討論我們對 2025 年剩餘時間的展望。

Thanks, Jeff. I'll start by discussing our outlook for revenue and profit, beginning with the top line. Third-quarter revenue in workplace furnishings is expected to increase at a mid-single digit rate year over year organically, including the impact of divestitures. Workplace furnishings revenue is expected to increase at a low single digit pace. The benefits of improving orders and backlog are expected to drive the revenue growth in the third quarter.

謝謝，傑夫。我將首先討論我們的收入和利潤前景，從營收開始。預計第三季辦公家具收入將年比有機成長中個位數，其中包括資產剝離的影響。預計辦公家具收入將以低個位數的速度成長。訂單和積壓訂單改善的好處預計將推動第三季的營收成長。

For residential building products, third quarter net sales are projected to increase at a low single digit rate compared to the same period in 2024. Pricing actions are expected to be the primary driver of growth. However, for the second half overall, we continue to expect volume growth for this segment. We're projecting revenue improvement in 2025 without market growth.

對於住宅建築產品，預計第三季淨銷售額與 2024 年同期相比將以低個位數成長。預計定價行動將成為成長的主要驅動力。然而，就下半年整體而言，我們仍然預期該部門的銷售將會成長。我們預計 2025 年市場不會成長，但營收仍會提高。

Shifting to our third-quarter profit outlook, non-GAAP earnings per share in the third quarter are expected to increase slightly from 2024 levels. This improvement is expected to be driven by productivity benefits and volume growth, which should be partially offset by increased investment levels.

轉向我們的第三季利潤展望，預計第三季非 GAAP 每股收益將較 2024 年水準略有成長。預計這項改善將受到生產力效益和產量成長的推動，但投資水準的提高將部分抵消這一影響。

In the third quarter, we expect operating margin in workplace furnishings to expand modestly year over year, driven by volume improvement and continued profit transformational benefits partially offset by increased investment. Residential building products operating margin is expected to compress modestly year over year in the Third quarter as a result of slightly lower volume and increased investments. Again, we still are expecting overall non-GAAP earnings per share in the third quarter to increase slightly from 2024 levels.

我們預計，第三季辦公家具業務的營業利潤率將比去年小幅成長，這主要得益於銷售成長和持續的利潤轉型效益，但部分抵消了投資增加的影響。住宅建築產品業務的營業利潤率預計將在第三季同比小幅收縮，原因是銷量略有下降且投資增加。再次，我們仍預期第三季整體非 GAAP 每股盈餘將較 2024 年水準略有成長。

Moving to the full year, in workplace furnishings, we expect year over year mid-single digit net sales growth, excluding the benefit of an extra week in the fourth quarter. Our full-year volume expectations move higher. However, the overall segment sales outlook is essentially unchanged, as now we see lower projected price realization primarily related or driven by reduced impacts from tariffs.

展望全年，我們預期辦公家具業務的淨銷售額將年增中個位數，這不包括第四季額外一週的銷售成長。我們對全年銷量的預期有所提高。然而，整體分部銷售前景基本上沒有變化，因為現在我們看到預計價格實現下降，主要與關稅影響的降低有關或受其驅動。

In residential building products, our outlook improved slightly, with net sales now expected to grow at a mid-single digit pace again after excluding the benefit of the extra week in the fourth quarter. From an earnings perspective, our outlook for 2025 increases modestly, with double digit percent EPS growth expected for the fourth straight year.

在住宅建築產品方面，我們的前景略有改善，扣除第四季度額外一周的利多因素後，淨銷售額預計將再次實現中等個位數增長。從獲利角度來看，我們對2025年的獲利預期略有上調，預計每股盈餘將連續第四年達到兩位數百分比成長。

I'll wrap up with a few comments on our balance sheet and cash flow. Quarter ending gross debt leverage was at 1.4 times as calculated in accordance with our debt agreements. During the quarter, we continued to deploy cash through our long-standing quarterly dividend and through stock repurchases of nearly $40 million demonstrating our continued confidence in our future earnings and cash flow generation.

最後，我將對我們的資產負債表和現金流量發表一些評論。根據我們的債務協議計算，本季末總負債槓桿為 1.4 倍。在本季度，我們繼續透過長期的季度股利和近 4,000 萬美元的股票回購來部署現金，顯示我們對未來收益和現金流產生的持續信心。

The combination of our strong balance sheet and consistent cash flow generation will continue to provide a high degree of financial flexibility and capacity for investment. Our capital priorities remain reinvesting in the business, paying dividends, pursuing share buybacks, and exploring M&A opportunities.

我們強勁的資產負債表和持續的現金流相結合，將繼續提供高度的財務靈活性和投資能力。我們的資本重點仍然是對業務進行再投資、支付股利、進行股票回購以及探索併購機會。

I'll now turn the call back over to Jeff.

我現在將電話轉回給傑夫。

Thanks, VP. We remain focused on investing to drive revenue growth and on expanding margins. We have multiple avenues to drive growth, and we'll continue to invest, and we expect to extend our track record of consecutive years of double digit% EPS growth. And beyond 2025 we are positioned for continued success.

謝謝，副總裁。我們仍然專注於投資以推動收入成長和提高利潤率。我們有多種途徑來推動成長，我們將繼續投資，我們期望延續連續幾年兩位數每股收益成長的記錄。2025 年以後，我們將繼續取得成功。

We have elevated earnings growth visibility through 2026, broad and diverse product and market coverage in workplace furnishings, market leading positions and residential building products, and we continue to invest to drive growth. All this is supported by a strong balance sheet and the ability to generate continued free cash flow. I want to thank each and I member for the continued dedication and congratulate them on another excellent quarter.

我們已提高到 2026 年的獲利成長可見度、在辦公家具、市場領先地位和住宅建築產品方面廣泛而多樣化的產品和市場覆蓋率，並且我們將繼續投資以推動成長。所有這些都得益於強勁的資產負債表和產生持續自由現金流的能力。我要感謝每一位成員的持續奉獻，並祝賀他們又度過了一個出色的季度。

We will now open the call to your questions.

我們現在開始回答你們的問題。

(Operator Instructions) Reuben Garner, The Benchmark Company.

（操作員指示）Reuben Garner，The Benchmark Company。

Jeff, you started, you referenced, I think modestly increasing your earnings outlook a couple of times if I heard that right, and then you referenced the $0.50 to $0.60 over the next 18 months, of visibility being, I think you said higher than you expected. Can you elaborate on, what's driving that increased visibility or that increased earnings outlook?

傑夫，如果我沒聽錯的話，你一開始提到過，我認為你會適度提高你的盈利預期幾次，然後你提到未來 18 個月的盈利預期為 0.50 美元到 0.60 美元，我認為你說的高於你的預期。您能否詳細說明一下，是什麼推動了知名度的提高或獲利前景的增強？

Yeah. I think we continue to get more confidence in how our network optimization and our synergy work has developed here, Ruben. So we're, based on our first half and what we have in the in the hopper, we're able to say with confidence that we think that's going to drive a modest increase in the full year on EPS from where we were at.

是的。我認為我們對我們的網路優化和協同工作在這裡的發展越來越有信心了，Ruben。因此，根據我們上半年的業績以及我們目前所擁有的條件，我們可以自信地說，我們認為這將推動全年每股收益較去年同期略有成長。

Got it. And then, the SMB business, showing some signs of life, I guess, as one would put it, does, in the past, I think that's been a pretty good. parameter of just general sentiment improvement, does that, does it feel different this time? Was it, maybe some things were not, the trigger wasn't pulled earlier in the year with the tariff dynamics going on and this is kind of some catch up or, do you think this is a sign of maybe some acceleration to come in both sides of your office business?

知道了。然後，我想，正如人們所說，中小企業業務顯示出一些復甦的跡象，在過去，我認為這是一個非常好的參數，只是普遍情緒的改善，這次感覺不同嗎？是不是有些事情並沒有發生，今年早些時候關稅動態並沒有引發什麼變化，這是一種追趕，或者，您是否認為這可能是您的辦公業務雙方加速發展的跡象？

That's a great question, Ruben, and you've been around a bit, as have I, and I think it's a little, I think there's some of that. I also think it was more of a that business has been performing pretty well the last couple of years, and I think it was more of a [lull] in the in the tariff impact like we said the end of last year, beginning of this year. So I don't know that it's a it's a traditional pattern in that respect.

魯本，這個問題問得非常好，你和我一樣，都已經了解一些情況了，我認為有一點，我認為有一點這樣的情況。我還認為，這更多的是因為過去幾年業務表現相當良好，而且我認為這更多的是關稅影響的暫時緩解，就像我們所說的去年年底、今年年初那樣。所以我不知道從這個角度來說這是否是一種傳統模式。

Because I say, our contract business is, performing well right now and so I think it's really SMB returning, from that temporary kind of shock to the system and getting back online more so than it is kind of traditional goes in first comes out first, mentality.

因為我說，我們的合約業務現在表現良好，所以我認為這實際上是中小企業的回歸，從系統受到的暫時衝擊中恢復過來，而不是傳統的先進去後出來的心態。

Yeah, Ruben, we talked last time, three straight quarters of that contracting about an average of 5%. We started to see that rebound early in the second quarter. So, I think it's a sign of, usually that goes in first and comes out, goes in first and then out. Supports the thoughts there.

是的，魯本，我們上次談過，連續三個季度的萎縮平均約為 5%。我們在第二季初開始看到反彈。所以，我認為這是一種跡象，通常是先進去然後出來，先進去然後出來。支持那裡的想法。

Got it. And then last one for me on the residential side, even with the pull forward dynamic, orders down 2% is pretty good in this environment, with what we're seeing in new construction in particular. Can you talk about where you think you're getting the outperformance? Is it more on the new side? Is it some progress in the R&R space, anything? Is it driven by the new products? Is it a combination of everything? Can you just kind of drive into that a little bit?

知道了。最後，對我來說，在住宅方面，即使有提前的動態，訂單下降 2% 在這種環境下也是相當不錯的，尤其是在新建築方面。您能談談您認為自己在哪些方面取得了優異的表現嗎？是不是更有新意？R&R 領域有什麼進展嗎？這是由新產品推動的嗎？它是一切的結合嗎？您能稍微解釋一下這一點嗎？

Yeah, Ruben, I think we can probably comment on this. I would say from my [vantage] point we're really competing well. I mean our teams are focused.

是的，魯本，我想我們可以對此發表評論。我想說，從我的角度來看，我們的競爭確實很激烈。我的意思是我們的團隊非常專注。

It's our growth initiatives again it's early days there but we've got, investments rolling on top of that, so we're just, the team is really focused on market connectivity in both the R&R and the new home areas we've said, we've got GAAP inserts rolling, we've got some new product impacts with the electric category. We've looked at some new channels in the home improvement retail space.

這是我們的成長計劃，現在還處於早期階段，但我們已經進行了大量的投資，因此我們的團隊真正專注於 R&R 和新房領域的市場連通性，我們已經獲得了 GAAP 插入，我們對電動類別的一些新產品產生了影響。我們研究了家居裝修零售領域的一些新管道。

So again, all these are early days, but I'd say baseline we're competing really well, we're really focused and our investments are just starting to take root. So that's I think what we're why we're able to kind of, front run the market dynamics, although they are still there, there's no doubt about it.

所以，再說一次，這一切都還處於早期階段，但我想說，從根本上來說，我們的競爭力確實很強，我們非常專注，而且我們的投資才剛開始生根發芽。所以我認為這就是我們能夠領先市場動態的原因，儘管它們仍然存在，但毫無疑問。

Yeah. I'd add to that you know you asked about which side of the market. It is in both sides, both new home and remodel, and if you look at permit activity through the first four or five months of the year, it's actually down yet, we're showing revenue up. So I think it's a sign of a bit of our unique model and the new construction side with own distribution as well as the initiatives that we're getting in place with dealers on the remodel side.

是的。我想補充一點，您知道您詢問的是市場的哪一邊。無論是新建房屋還是改建房屋，這兩種情況都有，如果你看一下今年前四五個月的許可活動，你會發現它實際上正在下降，而收入卻在上升。所以我認為這體現了我們獨特的模式，新建築方面有自己的分銷管道，而且我們在改造方面與經銷商合作也採取了舉措。

(Operator Instructions) Gregory Burns, Sidoti & Company.

（操作員指示）Gregory Burns，Sidoti & Company。

You gave us some caller around where the growth what the growth investments are on the. The building products side of the business on the workplace furnishing side, where are you investing there and you know maybe give us a little bit of caller on the growth investments you're making there. Thank you.

您給我們打了一些電話，詢問成長在哪裡，成長投資在哪裡。在工作場所家具業務的建築產品方面，您在那裡進行投資，您知道嗎，也許可以向我們稍微介紹一下您在那裡進行的成長投資。謝謝。

Yeah Greg, so really that we've got a couple things rolling one just people capacity both on the external and internal, secondly, we're really trying to streamline the dealer experience simplify and streamline our connectivity with dealers, automating things, to make it easier to do business with, which really, we see as a bit of an unlock.

是的，格雷格，我們確實有幾件事要做，第一，就是提高內部和外部的人員能力；第二，我們真的在努力簡化經銷商的體驗，簡化和精簡我們與經銷商的連接，實現自動化，讓業務往來更加便捷，這在我們看來確實是一種解鎖。

And then new products we've been, we've got a lot of teams focused on increasing product cycle times and getting products to market sooner and being really focused on that. So those are some examples of kind of what we're doing kind of, in house, so to speak, the start to drive growth and we and I remind you that we said we were going to pivot to growth and that's, we're going to continue to do that and we're going to continue to make investments in these spaces.

然後我們推出了新產品，我們有很多團隊專注於增加產品週期時間並更快地將產品推向市場，並且真正專注於此。所以這些就是我們在內部所做的事情的一些例子，可以這麼說，開始推動成長，我們和我提醒你，我們說過我們將轉向成長，也就是說，我們將繼續這樣做，我們將繼續在這些領域進行投資。

All right, great. And then in terms of the margin profile on the workplace. Business, impressive margin this quarter. Is there a target margin range you think that business should operate in? Is there room obviously it seems like with some of the profit initiatives you have, there's room for margin expansion, but how should we think about maybe the longer-term margin range that you think that business can operate within.

好的，太好了。然後就工作場所的利潤概況而言。本季的業務利潤令人印象深刻。您認為企業應該在一個目標利潤範圍內運作嗎？顯然，根據你們的一些獲利舉措，利潤率還有擴大的空間，但我們應該如何考慮你們認為企業可以在其中運作的長期利潤率範圍呢？

Yeah. I think their jump off here was about a 9.5% business. We think there's between a 200 to 250 basis point, Greg, just based on the current initiatives that we've already talked about between the KI synergies and the Mexico ramp, and then obviously we'll continue to have our normal productivity that we drive in there annually to offset, any inflation. So we still think there's a lot of runway there to push that thing towards a 12% return business.

是的。我認為他們的起價大約是9.5%。格雷格，我們認為，僅根據我們已經討論過的 KI 協同效應和墨西哥產能擴張之間的當前舉措，通膨率將在 200 到 250 個基點之間，然後顯然我們將繼續保持每年在那裡實現的正常生產力，以抵消任何通貨膨脹。因此，我們仍然認為，該業務有很大的發展空間，可以實現 12% 的回報率。

Okay, great. And then just lastly, can you just remind me what percent of the workplace business is SMB?

好的，太好了。最後，您能提醒我一下，職場業務中有多少比例是中小企業嗎？

Yeah, great 40% to 45%, so certainly still an important part here.

是的，40% 到 45% 的比例，這當然仍然是一個重要的部分。

(Operator Instructions) Steven Ramsey, Thompson Research Group.

（操作員指示）史蒂文·拉姆齊，湯普森研究小組。

I wanted to think about the workplace comment on the commingling of SMB products in the contract settings. Can you maybe [parse] that out, as some nuance to why that is happening, and then put some context around that activity as it's happening in 2025 versus the prior couple of years.

我想思考一下工作場所對合約設定中 SMB 產品混合的評論。您能否分析為什麼會發生這種情況，然後將 2025 年發生的活動與前幾年的情況進行比較。

Yeah. That's a good question. I mean, I think what we've seen if you back way up just kind of the post-COVID environment, a lot of the dynamics have gotten jumbled up and then. As people have come back online, there's been a lot of study, there's been a lot of, hybrid, there's been a lot of remote versus in office, and all these things have been developing over the last bit of time.

是的。這個問題問得好。我的意思是，我認為，如果你回顧一下疫情後的環境，你會發現很多動態都變得混亂了。隨著人們重新上網，已經出現了許多研究，出現了許多混合，出現了許多遠距辦公與辦公室辦公的結合，所有這些事情都在過去的一段時間裡不斷發展。

And I think it kind of shocked people into, out of their traditional mindsets and into maybe new ways of thinking about how to configure how to do things. And as they've done that, I think they've become kind of a blank slate and clean sheet of paper in in solving for you know their in-office productivity work demands et cetera. And it's afforded an opportunity to say where they really, where they want to, go along and spend more where they want to maybe mix in.

我認為這會讓人們震驚，讓他們擺脫傳統的思維模式，並開始以新的方式思考如何配置做事方式。當他們這樣做的時候，我認為他們在解決辦公室生產力等工作需求時，就像一張白紙。這讓他們有機會表達自己真正想要什麼，去哪裡，去哪裡投入更多，或許在他們想融入的地方。

Different price points and it's really just I mean you know a shift in in how that's being done. And so that's where we see it coming in and we just see -- we see dealers, we see customers being open to, looking at different versions of what maybe they hadn't considered before and that's where we're seeing it on a percent basis.

不同的價格點，我的意思是，這實際上只是在做事方式上的轉變。這就是我們看到它出現的地方，我們看到——我們看到經銷商，我們看到客戶，他們開始接受，開始考慮他們以前可能從未考慮過的不同版本，這就是我們在百分比上看到的。

I can't really tell you, it's gone from X to Y. We just see it we see it in. In in pre-sale metrics we see it flowing through based on what customers and what dealers sell what products and so that's why that that's kind of contextually, how we see this developing and happening what that that you know the background for that caller commentary on that comment.

我真的不能告訴你，它從 X 變成了 Y。我們只是看到了它。在售前指標中，我們看到它的流動是基於哪些客戶和哪些經銷商銷售哪些產品，這就是為什麼這在某種程度上是一種背景，我們如何看待這種發展和發生，你知道那個來電者對該評論的背景。

Okay, that's interesting. I mean, I would think you guys have an advantage to play a part of that trend given you play strongly in both categories. So it's interesting to hear that.

好的，這很有趣。我的意思是，鑑於你們在兩個類別中都表現強勁，我認為你們有優勢參與這一趨勢。聽到這個消息很有趣。

I think that's right.

我認為那是對的。

Yeah, okay. And then slipping to the resi segment this was touched on earlier, that the sales were strong, orders in May and June were good despite the environment. Do you attribute that to share gains or maybe some comps help on the R&R side, but how you would describe the outperformance?

好的。然後我們回到住宅板塊，之前我們提到過，儘管市場環境不佳，但銷售表現強勁，5月和6月的訂單量仍然不錯。您是否將其歸因於份額增長，或者也許一些可比公司對 R&R 的幫助，但您如何描述這種優異表現？

Yeah, I think part of it, you've got to break it apart here, Stephen, on the new construction side, we think we're starting to see our initiatives come through when permits are down and our unit volumes are better than that. That's a signal that we're expanding the market or taking share. So I feel that's happening and I think we've been talking about on the remodel side.

是的，我認為部分原因在於，你必須把它分解開來，史蒂芬，在新建築方面，我們認為，當許可證數量下降並且我們的單位數量比這更好時，我們開始看到我們的舉措得以實現。這表明我們正在擴大市場或占領市場份額。所以我覺得這正在發生，我想我們一直在談論改造方面。

There's been a lot of initiatives around, dealer activity, dealer activation, more improvement in the DIY space. Home improvement retail and we're getting more placement there. So it's kind of why we're saying we expect growth regardless of what's happening with the markets themselves and I'll also comment on the investment side. This is also where we're making, longer term incremental investments in similar areas that Jeff talked about on the workplace side with, more people capacity and adding to the selling model. So we think we're uniquely positioned to outperform the markets.

目前已經有很多舉措，包括經銷商活動、經銷商啟動以及 DIY 領域的更多改進。家居裝修零售，我們在那裡獲得了更多的佈局。所以這就是為什麼我們說無論市場本身發生什麼，我們都預期會成長，我也會對投資方面發表評論。這也是我們在 Jeff 談到的工作場所方面的類似領域進行長期增量投資的地方，包括提高人員容量和增加銷售模式。因此，我們認為我們擁有超越市場的獨特優勢。

Okay, great. And maybe to add on to that, on your vertically integrated part of the resi segment where you have distribution, can you talk about how that is performing versus your external sales?

好的，太好了。另外，關於你們在住宅領域垂直整合的分銷業務，能否談談與外部銷售相比，其表現如何？

If you look at it from a unit standpoint, Stephen, we can see that where we own distribution is performing well. It's absolute delta compared to not only distribution is hard because each market's different and in where we own distribution we're primarily the main distributor, but we certainly think it's performing as good or if not better than independent.

史蒂芬，如果你從單位的角度來看，我們可以看到，我們自己的分銷表現良好。與分銷相比，這絕對是巨大的差異，因為每個市場都不同，而且在我們擁有分銷權的地方，我們主要是主要分銷商，但我們當然認為它的表現與獨立分銷一樣好，甚至更好。

Okay, that's great. And then one last one for me, strong EPS growth is good to see. Thinking about the inputs of operating cash flow generation and CapEx. Do you expect free cash flow growth every year to be similar to the earnings per share change, or how do you think about the cash flow dynamic in 2025?

好的，太好了。對我來說最後一個是，強勁的每股盈餘成長是令人欣喜的。思考經營現金流產生和資本支出的投入。您是否預計每年的自由現金流成長與每股盈餘變化相似，或者您如何看待 2025 年的現金流動態？

Yeah, what I'll answer that two ways. One, we expect to maintain neutral on working capital with growth. two, we're going to take our cash flow generation up probably $30 million to $35 million that we talked about last quarter. $10 million of that's because of true volume growth.

是的，我會從兩個方面來回答。首先，我們預期營運資本將保持中立並維持成長。其次，我們將把現金流產生量提高到上個季度談到的 3,000 萬至 3,500 萬美元。其中 1000 萬美元是由於實際銷售成長。

So now we're in the $200 to $210 million dollar range, and another $25 million to $30 million is going to be because of the new tax bill. So, in the timing of when we're going to pay stuff. So it's going to improve.

所以現在我們的損失在 2 億到 2.1 億美元之間，另外 2500 萬到 3000 萬美元將是由於新的稅收法案。所以，我們該在什麼時候付款呢？所以情況將會改善。

(Operator Instructions) David McGregor, Longbow Research.

（操作員指示）David McGregor，Longbow Research。

Congratulations on the strong results. I apologize if these questions have been addressed. I have a little technology challenge getting on here, but I guess I wanted to start off by just asking about workplace furnishings and specifically the volume leverage, and I think the expectation had been that, Kimball and Mexico would drive volume leverage above the historical mid-30s level, but you're also seeing the negative price/cost working against that.

恭喜你取得如此優異的成績。如果這些問題已經得到解答，我深感抱歉。我在這裡遇到了一點技術挑戰，但我想我首先想問一下工作場所的家具，特別是數量槓桿，我認為預期是，金博爾和墨西哥將推動數量槓桿超過歷史 30 年代中期的水平，但你也看到了負價格/成本在與此相反。

So can you just talk about how much improvement you're seeing in the absolute volume leverage in workplace furnishings if we were to separate out the price/cost pressures.

那麼，如果我們將價格/成本壓力分開，您能否談談您看到工作場所家具的絕對數量槓桿有多大的改善？

Yeah, I think it's, David, the obviously incremental improvement on our two projects is what you're referring to on the first piece which is going to accelerate volume, but we should still think now that we're in the 35% to 40% in incrementals with volume, and we should expect to see that. But that's before we do our investments, and I think we've talked a lot about making sure we stay on our growth investments and stay out in front of the selling models and capabilities, but 35% to 40% would be the incremental for investments.

是的，大衛，我認為我們兩個項目明顯的漸進式改進就是你在第一部分中提到的，這將加速產量，但我們現在仍然應該認為，產量的增量在 35% 到 40% 之間，我們應該期待看到這一點。但那是在我們進行投資之前，我想我們已經討論了很多關於確保我們繼續進行成長投資並保持領先的銷售模式和能力，但 35% 到 40% 將是投資的增量。

Okay, good. And I guess so you're still seeing progress there that gives you confidence in those numbers. That's great. And I guess you also in the really discussed the savings from Kimball in Mexico at $0.24 for the first half. I guess with all the progress to date and the volume growth, how would you handicap the likelihood of upside to those numbers.

好的，很好。我想您仍然看到那裡的進展，這讓您對這些數字充滿信心。那太棒了。我想您也確實討論過上半年墨西哥 Kimball 的 0.24 美元節省額。我想，鑑於迄今為止的所有進展和數量增長，您會如何預測這些數字上漲的可能性？

I think. Jeff signaled that there is a little bit of upside just based on us taking our outlook up. So we gave a range of $70 to $0.80 as we started to kick off those projects. I think it's fair to say we're leaning closer to the $0.80 based on where we are and what's in flight. So I would push on the right side of that range and if not a little bit more.

我認為。傑夫表示，只要我們提高展望，就會有一點好處。因此，當我們開始啟動這些項目時，我們給出了 70 美元到 0.80 美元的範圍。我認為根據我們所在的位置和飛行情況，我們更傾向於 0.80 美元。因此，我會推動該範圍的右側，甚至更多。

Okay. And then just on the share repurchase activity, $40 million in the quarter kind of match the first quarter pace, should we be should we be modelling kind of $150 to $160 for the full year, or was there something that you thought of as being maybe opportunistic in the first half? How should we be modelling that?

好的。然後，僅就股票回購活動而言，本季的 4,000 萬美元與第一季的速度持平，我們是否應該為全年預測 150 美元至 160 美元，或者您是否認為上半年可能存在機會？我們應該如何建模？

Yeah, I think the modelling is, how we're going to use our free cash flow, but we reevaluate that David every quarter, and that's going to be a quarter-by-quarter decision.

是的，我認為模型是我們將如何使用我們的自由現金流，但我們每個季度都會重新評估大衛，這將是一個逐季度的決定。

(Operator Instructions) Brian Gordon, Water Tower Research.

（操作員指示） Brian Gordon，水塔研究。

I also had some technical issues connecting, earlier, so, also, I'll apologize if I, if these questions have been asked before. I guess my first question would be when you're talking with the large contract customers how they are feeling about business conditions and maybe more explicitly how are they feeling about their CapEx decisions going forward, and how would that differ maybe from what you're seeing in the SMB side of the business.

我之前也遇到了一些技術問題，所以，如果這些問題之前被問過，我也會道歉。我想我的第一個問題是，當您與大型合約客戶交談時，他們對業務狀況有何感受，也許更明確地說，他們對未來的資本支出決策有何感受，以及這與您在中小企業業務方面看到的情況有何不同。

Well, I can't speak customer by customer on CapEx. What I can tell you though is that I kind of said there. The mentality is, we're -- they're investing, and I use the term business as usual, contextually means what we're seeing is they're moving out, in our space they probably moved out in other investment categories depending on what business it's been but on the in office and the workflow and productivity they are viewing that as you know.

嗯，我無法針對每個客戶談論資本支出。但我可以告訴你的是，我好像確實這麼說過。我們的心態是——他們正在投資，我使用「一切照舊」這個詞，從上下文來看，這意味著我們看到他們正在撤出，在我們的領域，他們可能轉移到其他投資類別，這取決於他們的業務是什麼，但在辦公室、工作流程和生產力方面，他們正在觀察這一點，正如你所知。

Business as usual and we they're making investments. I think you used the term that some people are coming off the sidelines, if you will, and we don't see a lot of hesitation there most of these customers are in the game and wanting to move forward and so. We use the term, kind of studying over the last couple years. Some customers were evaluating, re-evaluating, and I think we're past that point now and people are deploying capital to do projects to support their in-office model, whatever it may be.

一切照舊，我們也在投資。我想你用過「有些人正在退出」這個詞，如果你願意這麼說的話。我們並沒有看到太多猶豫，大多數客戶都參與其中，並希望繼續前進等等。我們在過去幾年裡一直使用這個術語進行研究。一些客戶正在評估、重新評估，我認為我們現在已經過了那個階段，人們正在部署資本來做專案以支援他們的辦公室模式，無論它是什麼。

Great, thank you. The second question that I have today is on the RDP side. How much of this is volume versus how much is pricing?

太好了，謝謝。我今天的第二個問題是關於 RDP 方面的。其中，數量佔比是多少，價格佔比是多少？

Yeah, it's primarily, price, Brian. I think if you looked at the first half of the year it's probably one-third volume, two-third price, but if, and if you look at the full year, you'll see the volume kick in with more volume, happen in the back half.

是的，主要是價格，布萊恩。我認為，如果你看一下上半年，可能是銷量佔三分之一，價格佔三分之二，但是如果你看一下全年，你會看到銷量在下半年開始增加。

That concludes the Q&A session. I will now turn the conference back over to Mr. Lorenger for closing remarks.

問答環節到此結束。現在我將會議交還給洛倫格先生，請他致閉幕詞。

Appreciate everybody taking the time to join us today. Have a great day. Thanks so much.

感謝大家今天抽出時間來參加我們的活動。祝你有美好的一天。非常感謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。