Louisiana-Pacific Corp (LPX) 2024 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Louisiana-Pacific Corporation earnings conference call. (Operator instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加路易斯安那太平洋公司財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to turn the conference over to your speaker for today, Aaron Howald, Vice President, Investor Relations and Business Development. Please go ahead.

現在，我想將會議交給今天的發言人、投資者關係和業務發展副總裁 Aaron Howald。請繼續。

Thank you, operator, and good morning, everyone. Thank you for joining us to discuss LP's results for the second quarter of 2024, as well as our updated outlook. My name is Aaron Howald, and I am LP's Vice President of Investor Relations and Business Development. With me this morning are Brad Southern, LP's Chief Executive Officer; and Alan Haughie, LP's Chief Financial Officer. After prepared remarks, we will take one round of questions.

謝謝接線員，大家早安。感謝您加入我們討論 LP 2024 年第二季的業績以及我們的最新展望。我叫 Aaron Howald，是 LP 的投資人關係與業務發展副總裁。今天早上和我一起的還有 LP 的首席執行官布拉德·索森 (Brad Southern) 和 LP 的首席財務官艾倫·霍吉 (Alan Haughie)。準備好發言後，我們將進行一輪提問。

During this morning's call, we will refer to a presentation that has been posted to LP's IR webpage, which is investor.lpcorp.com. Our 8-K filing, earnings press release, and other materials are also available there, including our recently published 2024 sustainability report.

在今天早上的電話會議上，我們將參考已發佈在LP投資者關係網頁（investor.lpcorp.com）上的一份簡報。我們的8-K文件、收益新聞稿和其他資料（包括我們最近發布的2024年永續發展報告）也可在該網頁上取得。

As always, I will caution you that today's discussion contains forward-looking statements and non-GAAP financial metrics, as described on slides 2 and 3 of the earnings presentation. The appendix of the presentation also contains reconciliations that are further supplemented by this morning's 8-K filing. Rather than reading those statements, I will incorporate them by reference.

像往常一樣，我要提醒您，今天的討論包含前瞻性陳述和非 GAAP 財務指標，如收益報告的第 2 和第 3 張投影中所述。簡報的附錄還包含由今天上午的 8-K 文件進一步補充的對帳表。我不會閱讀這些聲明，而是透過引用將它們納入其中。

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

說完這些，我會把電話轉給布萊德。

Thanks, Aaron, and thank you all for joining us this morning. LP's Siding and OSB businesses built on the strong first quarter, executing on our strategy and delivering continued growth, share gains, and margin expansion in the second quarter of 2024. I will summarize a few of the highlights of the quarter, which are detailed on page 5 of the presentation, and discuss the factors that contributed to these results before turning the call over to Alan for more detail on the businesses' performance in the quarter and an update on capital allocation.

謝謝，Aaron，也謝謝大家今天早上加入我們。LP 的壁板和定向刨花板業務在第一季強勁成長的基礎上，按照我們的策略執行，並在 2024 年第二季實現了持續成長、份額成長和利潤率擴大。我將總結本季度的一些亮點（詳見演示文稿的第 5 頁），並討論促成這些結果的因素，然後將電話轉給艾倫，以了解有關本季度業務表現的更多詳細信息以及資本配置的最新情況。

LP's net sales in the quarter reached $814 million, up 33% compared to prior year. Siding sales grew by 30% in the quarter, the result of 22% higher sales volume and 6% higher prices, both of which were helped by another record quarter for ExpertFinish. In OSB, higher prices and improved mix of Structural Solutions value-added OSB contributed to strong revenue growth. At the same time, leverage from increased volume and operational efficiency improved margins. As a result, LP more than doubled adjusted EBITDA, operating cash flow, and adjusted earnings per share compared to the second quarter of 2023.

LP 本季淨銷售額達到 8.14 億美元，比上年增長 33%。本季壁板銷售額成長了 30%，其中銷量成長了 22%，價格上漲了 6%，這都得益於 ExpertFinish 再創紀錄的季度業績。在定向刨花板 (OSB) 領域，更高的價格和結構解決方案增值 OSB 組合的改善促進了強勁的收入成長。同時，銷量增加和營運效率提高帶來的利潤率也提高。因此，與 2023 年第二季相比，LP 的調整後 EBITDA、營運現金流量和調整後每股盈餘增加了一倍以上。

With the capacity expansion projects of the past two years now complete and the new facilities fully operational, CapEx was a comparatively light $36 million in the quarter. This led to a greater proportion of LP's operating cash flow available to return to shareholders. Therefore, consistent with our capital allocation strategy, $120 million was spent on dividends and share repurchases through the quarter. Share repurchases have continued since quarter end, as Alan will detail in a moment.

隨著過去兩年的產能擴張項目現已完成以及新設施全面投入運營，本季的資本支出相對較低，僅為 3,600 萬美元。這使得 LP 的經營現金流中可返還給股東的比例更大。因此，根據我們的資本配置策略，本季我們在股利和股票回購上花費了 1.2 億美元。股票回購自本季末以來一直在繼續，艾倫稍後將詳細介紹。

On the lower left of page 5, you will see some other highlights. First and most importantly, our businesses operated safely. LP wins more than our fair share of industry safety awards. In fact, we were just named the safest company in our category by the APA Engineered Wood Association, but the best reward is sending everyone home safely every day. I want to thank our operations teams for achieving an outstanding total incident rate in the second quarter of 0.6.

在第 5 頁的左下方，您會看到一些其他亮點。首先，也是最重要的，我們的業務安全運作。LP 贏得的業界安全獎項遠遠超出我們應得的份額。事實上，我們剛剛被 APA 工程木材協會評為同類公司中最安全的公司，但最好的獎勵是每天都能安全地送大家回家。我要感謝我們的營運團隊在第二季實現了 0.6 的出色總事故率。

Siding and OSB both delivered impressive operating efficiency in the quarter, which we measure with OEE. The siding business held OEE flat at 77% despite the complexity of ramping up the most recent subsiding conversion in Sagola, Michigan and our greenfield prefinish facility in Bath, New York. The OSB business increased OEE by 3 points compared to last year. This high-level operating efficiency was a major contributor to the business's cost performance in the quarter.

壁板和定向刨花板在本季度均實現了令人印象深刻的營運效率，我們用 OEE 來衡量。儘管最近在密西根州薩戈拉進行的下沉式改造以及在紐約州巴斯的綠地預加工工廠的改造過程十分複雜，但壁板業務的 OEE 仍保持在 77% 的水平。OSB業務的OEE較去年同期提高了3個百分點。高水準的營運效率是本季業務成本表現的主要貢獻者。

Finally, LP published our 2024 sustainability report in July. As detailed in the report, SmartSide is significantly more sustainable than competing siding technologies and most of LP's products are carbon negative. I want to thank everyone at LP who contributed to the report and to the impressive story it tells.

最後，LP 於 7 月發布了我們的 2024 年永續發展報告。正如報告中所詳述的，SmartSide 比競爭對手的壁板技術更具永續性，而且 LP 的大多數產品都是碳負性的。我要感謝 LP 的每一位為這份報告以及它所講述的令人印象深刻的故事做出貢獻的人。

On the left side of page 6 in the presentation, you will see an updated chart showing normalized growth of siding volume and revenue compared to US housing starts. The 2024 data for siding reflects the midpoint of our increased guidance for siding growth, while the housing data is based on FactSet's consensus for housing starts in 2024, which is currently at 1.4 million. As you can see, siding growth continues to exceed that of the underlying housing market, as LP gained share in residential construction.

在簡報的第 6 頁左側，您將看到一個更新的圖表，其中顯示了與美國新屋開工量相比，壁板數量和收入的標準化增長。2024 年的壁板數據反映了我們上調的壁板增長指導值的中點，而住房數據則基於 FactSet 對 2024 年新屋開工量的共識，目前為 140 萬套。如您所見，隨著 LP 在住宅建築中的份額增加，壁板的成長繼續超過基礎房屋市場的成長。

The repair/remodeling market is more difficult to track, but the general consensus is that R&R spending overall is down by mid single digits compared to last year. For the [record] quarter for ExpertFinish, our prefinished siding design for the R&R market, LP's siding business also seems to be gaining share in the R&R segment. In 2024, we expect ExpertFinish to be close to 10% of total siding volume. And given its higher price point, at 10% of volume, ExpertFinish would account for roughly 14% of siding revenue. ExpertFinish margins improved in the quarter as well, helping siding to achieve a 25% EBITDA margin in the quarter.

維修/改造市場更難追踪，但普遍的共識是，與去年相比，維修和改造支出總體下降了個位數左右。對於 ExpertFinish（我們為 R&R 市場提供的預製壁板設計）的[創紀錄]季度而言，LP 的壁板業務似乎也在 R&R 領域獲得份額。我們預計，到 2024 年，ExpertFinish 將占到壁板總量的 10% 左右。鑑於其較高的價格點，以銷量的 10% 計算，ExpertFinish 將佔壁板收入的約 14%。ExpertFinish 的利潤率在本季也有所提高，幫助該公司在本季實現了 25% 的 EBITDA 利潤率。

We believe we have a long runway for growth and share gains in the new construction, R&R, and offsite segments of the Siding business, and with both prime and prefinish SmartSide, and we intend to continue developing new products, expanding our addressable markets, and executing our sales and operations strategies to drive future growth.

我們相信，我們在新建築、R&R 和異地壁板業務以及優質和預加工 SmartSide 方面擁有長期的成長和份額成長空間，我們打算繼續開發新產品，擴大我們的潛在市場，並執行我們的銷售和營運策略以推動未來成長。

And with that, I will turn the call over to Alan for more detail on LP's financial performance in the quarter before taking your questions.

在回答您的問題之前，我將把電話轉給艾倫，以了解有關 LP 本季財務業績的更多詳細資訊。

Thanks, Brad. As Brad said, it was a strong quarter, and as the waterfall charts on the next two pages of the presentation show, it was also a refreshingly straightforward one in terms of year-over-year comparisons. Page 8 shows the performance of Siding compared to the second quarter of 2023. With last year's capacity addition projects and channel inventory destocking both now behind us, the waterfall tells a story of volume growth, price increases, and some much anticipated operating leverage.

謝謝，布拉德。正如布拉德所說，這是一個強勁的季度，正如演示文稿接下來兩頁的瀑布圖所示，從同比來看，這也是一個令人耳目一新的簡單季度。第 8 頁顯示了 Siding 與 2023 年第二季相比的表現。隨著去年產能增加專案和通路庫存去庫存的完成，瀑布圖講述了銷售成長、價格上漲以及一些備受期待的營運槓桿的故事。

Sales volumes grew by 22%, boosted by share gains in new residential construction and repair and remodel, and a record quarter in ExpertFinish, all admittedly riding on a relatively soft comparable. But this higher sales volume generated $71 million in additional revenue and $28 million of EBITDA, at an incremental EBITDA margin of almost 40% before considering the impact of price increases. Speaking of which, list price increases and favorable mix combined roughly equally towards 6% in higher prices [worth] $24 million. Increases in selling and marketing investments were almost fully funded by the non-recurrence of last year's mill conversions, resulting in a net $2 million of investment costs, while lower logs and resin prices supplied a useful $5 million tailwind.

銷售額成長了 22%，這得益於新住宅建設和維修改造業務的份額增長，以及 ExpertFinish 創下季度新高，當然，所有這些都得益於相對疲軟的可比性。但更高的銷售量產生了 7,100 萬美元的額外收入和 2,800 萬美元的 EBITDA，在考慮價格上漲的影響之前，增量 EBITDA 利潤率接近 40%。說到這，標價上漲和優惠組合大致平均增加了 6% 的價格，價值 2,400 萬美元。銷售和行銷投資的增加幾乎完全由去年工廠轉換的未重複發生提供資金，導致淨投資成本為 200 萬美元，而較低的原木和樹脂價格提供了 500 萬美元的有用順風。

Finally, as a result of ramping up the more automated prefinishing facility in Bath, New York and investments in similarly advanced equipment in our Green Bay prefinishing facility, there has been, as Brett said, a significant improvement in ExpertFinish margins over last year. Now, ExpertFinish margins are not yet equivalent to the business average, but they're getting closer and closer. Incidentally, this improvement shows up in other costs on the waterfall, because our methodology is to value changes in volume of the prior-year margin. The net result of all this is $415 million in revenue, up $95 million, with a near doubling of EBITDA to $105 million. And naturally, this pushed Sidings EBITDA margin up by 7 points to 25%.

最後，正如 Brett 所說，由於擴大了位於紐約巴斯的自動化預加工設施，並對位於綠灣的預加工設施中的類似先進設備進行了投資，ExpertFinish 的利潤率與去年相比有了顯著提高。現在，ExpertFinish 的利潤率尚未達到行業平均水平，但正在越來越接近。順便說一句，這種改進體現在瀑布的其他成本中，因為我們的方法是評估上一年利潤量的變化。所有這些的最終結果是收入達到 4.15 億美元，增加了 9,500 萬美元，EBITDA 幾乎翻了一番，達到 1.05 億美元。自然而然地，這使得 Sidings 的 EBITDA 利潤率上升了 7 個百分點，達到 25%。

The waterfall on page 9 also tells a simple and effective story of consistent execution by the OSB team. Prices were 34% higher than last year, adding $73 million in both sales and EBITDA. Unlike Siding, OSB prices are largely outside our control, but what the OSB team can control, however, is volume, mix, and operating efficiency. And like siding, the OSB team delivered an exceptional quarter on all of these fronts.

第 9 頁的瀑布圖也簡單有效地講述了 OSB 團隊始終如一的執行力。價格比去年上漲了 34%，銷售額和 EBITDA 均增加了 7,300 萬美元。與壁板不同，OSB 價格很大程度上不受我們控制，但 OSB 團隊可以控制的是數量、組合和營運效率。和壁板一樣，OSB 團隊在所有這些方面都表現出色。

Sales volumes in the quarter were 100 million square feet higher than last year, made possible in part by an impressive 3 percentage point increase in operating efficiency. 52% of volume in the quarter was higher-value-added Structural Solutions. This incremental volume generated an additional $40 million in net sales and $23 million in EBITDA. OSB ended the quarter with $351 million in sales and $125 million in EBITDA, nd as Brad mentioned earlier, they did so safely.

本季的銷售量比去年同期高出 1 億平方英尺，部分原因是營運效率提高了 3 個百分點。本季 52% 的銷售來自高附加價值的結構解決方案。這一增量產生了額外的 4000 萬美元淨銷售額和 2300 萬美元 EBITDA。OSB 本季的銷售額為 3.51 億美元，EBITDA 為 1.25 億美元，正如 Brad 之前提到的，他們安全地完成了這些工作。

Clean quarters of sales growth and operational excellence in both Siding and OSB make for a similarly straightforward cash flow, as slide 10 shows. After starting the quarter with $244 million in cash, LP earned $229 million in EBITDA, paid $59 million in taxes, and saw a seasonally normal reduction in working capital that brought in a further $39 million.

如投影片 10 所示，Siding 和 OSB 的銷售連續幾季成長，營運表現也十分出色，從而帶來了同樣直接的現金流。本季初，LP 持有 2.44 億美元現金，EBITDA 為 2.29 億美元，繳稅 5,900 萬美元，營運資本出現季節性正常減少，進而帶來 3,900 萬美元收入。

With the resulting $212 million in operating cash flow, we executed our capital allocation strategy, as we have consistently done, investing $36 million in CapEx and returning $120 million to shareholders. During the quarter, we paid $102 million to repurchase 1.2 million shares, at an average price a little over $84 per share.

利用由此產生的 2.12 億美元經營現金流，我們按照一貫做法執行了資本配置策略，投資 3,600 萬美元作為資本支出，並向股東返還 1.2 億美元。本季度，我們支付了 1.02 億美元回購了 120 萬股股票，平均價格略高於每股 84 美元。

The $17 million in other investing and financing is mostly the sale of LP's 50% ownership of a joint venture, a remnant of our investment in Entekra. And for avoidance of doubt, this gain was excluded from adjusted EBITDA, as you can see in the reconciliation in the appendix. And LP ended the second quarter with $317 million in cash.

1700 萬美元的其他投資和融資大部分是 LP 出售其在合資企業中的 50% 所有權，這是我們對 Entekra 投資的剩餘部分。為避免疑問，此項收益未計入調整後的 EBITDA，如附錄中的對帳表所示。LP 第二季結束時持有 3.17 億美元現金。

As of yesterday, the 6th of August, LP has paid a further $64 million for share repurchases, bringing our outstanding shares to about 70.3 million and a remaining Board authorization as of yesterday of $270 million.

截至昨天（8 月 6 日），LP 已進一步支付 6,400 萬美元用於股票回購，使我們的流通股數達到約 7,030 萬股，截至昨天董事會授權的剩餘金額為 2.7 億美元。

Which brings me to guidance on slide 11, I'd like to briefly remind you that when we updated our guidance on our first quarter earnings call, we increased the full-year guidance for Siding by the sum of the first quarter beat and the increase in the second quarter outlook. At that time, we had insufficient visibility to adjust guidance for the second half, but 90 days hence, with a Siding order file that continues to be robust, we can now offer updated outlook through the year end.

這讓我想到了第 11 張投影片上的指導，我想簡要地提醒您，當我們在第一季度收益電話會議上更新指導時，我們將 Siding 的全年指導提高了第一季度的業績超出預期和第二季度展望的提高之和。當時，我們還沒有足夠的洞察力來調整下半年的指導，但 90 天后，隨著 Siding 訂單文件繼續保持強勁，我們現在可以提供到年底的最新展望。

And as Brett said earlier, demand for SmartSide continues to outperform a moderately weak repair and remodel market. But based on new volume records for both primed and prefinished SmartSide in the second quarter, we now expect year-over-year revenue growth for the third quarter of between 16% and 18%, for revenue between $390 million and $410 million. An EBITDA margin of about 25% would yield siding EBITDA in the third quarter of between $95 million and $105 million.

正如布雷特之前所說，SmartSide 的需求持續優於略顯疲軟的維修和改造市場。但基於第二季 SmartSide 的預塗和預加工銷售創下的新紀錄，我們目前預計第三季營收將年增 16% 至 18%，營收在 3.9 億美元至 4.1 億美元之間。約 25% 的 EBITDA 利潤率將使第三季的 EBITDA 達到 9,500 萬美元至 1.05 億美元之間。

We continue to see typical seasonal patterns in demand, which usually means that the fourth quarter delivers weaker sales volumes as the building season winds down. If the third quarter turns out as we expect and typical seasonal demand patterns emerge, the resulting full-year revenue growth for siding in 2024 would be between 14% and 16% to a bit above $1.5 billion. Increased volume should boost the EBITDA margin up a point or so from our prior guidance to about 24%, yielding full-year EBITDA for Siding between $355 million and $375 million.

我們繼續看到需求的典型季節性模式，這通常意味著隨著建築季節的結束，第四季的銷售量會下降。如果第三季的結果符合我們的預期，並且出現典型的季節性需求模式，那麼 2024 年全年壁板收入成長率將在 14% 至 16% 之間，略高於 15 億美元。銷售增加應會使 EBITDA 利潤率從我們先前的預期提高一個百分點左右，達到 24% 左右，從而使 Siding 全年的 EBITDA 達到 3.55 億美元至 3.75 億美元之間。

In summary, this is a beat and raise for Siding, with a third quarter that so far looks very much like the second. OSB is a different story. Prices fell significantly at the end of the second quarter. The bulk of that will be felt in LP's third quarter, due to the time lag in our order file. And assuming prices remain flat at last Friday's levels published by Random Lengths, the OSB business would earn somewhere between $10 million and $20 million in EBITDA in the third quarter. As always, this is not a price prediction, just an attempt to offer useful modeling.

總而言之，對於 Siding 來說，這是一個超出預期的成績，而且其第三季度的表現到目前為止與第二季度非常相似。OSB 的情況則不同。第二季末價格大幅下跌。由於我們的訂單文件存在時間滯後，LP 第三季將感受到大部分影響。假設價格維持在 Random Lengths 上週五公佈的水平，OSB 業務第三季的 EBITDA 收入將在 1000 萬至 2000 萬美元之間。像往常一樣，這不是價格預測，只是嘗試提供有用的模型。

For the fourth quarter and full-year OSB outlook, and to reflect the reality that OSB demand and prices really increase meaningfully in the fourth quarter, we will extend to the flat-from-Friday-prior approach through year end. Therefore, holding prices flat at current levels and assuming seasonally lower OSB volumes would imply EBITDA for the fourth quarter of about $10 million below that of the third quarter. So assuming the year plays out as I've just described, and as usual treating LPSA earnings and corporate expenses as mutually offsetting, total EBITDA of LP in the third quarter would be in the $105 million to $125 million range and full-year EBITDA would be between $580 million and $620 million.

對於第四季度和全年 OSB 前景，為了反映 OSB 需求和價格在第四季度確實大幅上漲的現實，我們將延續從上週五開始持平的預測方法直至年底。因此，如果將價格維持在當前水平，並假設定向刨花板產量因季節性下降，則意味著第四季度的 EBITDA 將比第三季度低約 1000 萬美元。因此，假設今年的情況正如我剛才所描述的那樣，並且像往常一樣將 LPSA 收益和公司費用視為相互抵消，那麼第三季度 LP 的總 EBITDA 將在 1.05 億美元至 1.25 億美元之間，全年 EBITDA 將在 5.8 億美元至 6.2 億美元之間。

And with that, we'll be happy to take your questions.

我們很樂意回答您的問題。

(Operator instructions)

（操作員指示）

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Good morning. Maybe to start with, the Q2 Siding EBITDA margin just slightly above the first quarter despite much higher sales. Maybe talk to the puts and takes. I'm sure some of that is the ExpertFinish growth, which I know is an incremental drag, as that volume is growing better than the core SmartSide product, but just overall puts and takes on the Q1 to Q2 Siding EBITDA margin.

早安.首先，儘管銷售額大幅增加，但第二季的 EBITDA 利潤率僅略高於第一季。也許可以談談付出和收穫。我確信其中一部分原因是 ExpertFinish 的成長，我知道這是一個增量拖累，因為其銷售成長優於核心 SmartSide 產品，但總體而言，它對 Q1 至 Q2 Siding EBITDA 利潤率產生了影響。

Sure. There's not a great deal to add. You captured one of the factors. The ExpertFinish margin is significantly improving. [They're below] the average. We have, in some instances, added shifts to help make sure that we keep times healthy and the mix changes slightly in terms of the top line in terms of pricing and that obviously affects the margin a little bit. But other than that, there's nothing really of any great significance other than, as you said, ExpertFinish (technical difficulty) [slight] addition of labor and changes in (technical difficulty).

當然。沒什麼好補充的。您抓住了其中一個因素。ExpertFinish 的利潤率正在顯著提高。 [他們低於]平均值。在某些情況下，我們增加了班次，以確保我們保持健康的時間，並且在定價方面的頂線組合略有變化，這顯然會對利潤率產生一些影響。但除此之外，除了你所說的 ExpertFinish（技術難度）[輕微] 增加勞動力和改變之外，沒有什麼真正重要的。（技術難度）。

Okay. That's helpful. And then also thinking on Siding, the BuilderSeries rollout, just curious on general updates on how that is going with the current partnership with Lennar and how you're thinking about potential partnerships with other large builders, how that could play out over the second half and into next year.

好的。這很有幫助。然後還考慮了 Siding 和 BuilderSeries 的推出，我只是好奇目前與 Lennar 的合作關係進展如何，以及您如何考慮與其他大型建築商的潛在合作關係，以及這種合作關係在下半年和明年將如何發展。

Very pleased with the growth in BuilderSeries product line, but (technical difficulty) now coming in from Lennar. But we do have initiatives with certain national and large regional (technical difficulty) to secure additional volume there. [Only at the builder share] secure volume that's directly measurable (technical difficulty) competitive with the big builder. We are seeing really good [and select] product pick up in those regions as well (technical difficulty) trim and soffit SKUs pulled along as a result of the BuilderSeries lap product and you know, allowing us to secure a position with the builders.

對 BuilderSeries 產品線的成長感到非常高興，但是（技術難題）現在來自 Lennar。但我們確實與某些國家和大型區域（技術難度）合作，以確保在這些地區獲得額外的銷售。 [僅在建築商份額]確保可直接衡量的銷售（技術難度），從而與大型建築商競爭。我們看到這些地區的產品銷售量非常好（並且精選），由於 BuilderSeries 搭接產品的推出（技術難度），裝飾和拱腹 SKU 也得到了拉動，這讓我們在建築商中佔據了一席之地。

So the growth -- a lot of the growth that we're seeing currently on Siding can be attributed directly to the big builder initiative that we have. And we expect -- second part of your question. We expect continued success there as we move through the rest of this year into next year.

因此，我們目前在 Siding 看到的增長很大程度上可以直接歸因於我們的大型建築商計劃。我們期待—您問題的第二部分。我們期望在今年剩餘時間到明年期間能夠繼續取得成功。

That's helpful. Thank you.

這很有幫助。謝謝。

Kurt Yinger, D. A. Davidson.

庫爾特·英格、D.A.戴維森。

Thank you and good morning, everyone. Brad, I just wanted to follow up on the last comment around the strength in the big builder business. Is that primarily a BuilderSeries dynamic at this stage? Just that product? Are you seeing solid takeaway on prime product as well and kind of big builder as we think about it should be sort of a collection of those products, as opposed to just BuilderSeries?

謝謝大家，早安。布拉德，我只是想跟進一下關於大型建築商業務實力的最後一條評論。目前這主要是 BuilderSeries 的動態嗎？就那個產品嗎？您是否也看到了主要產品的切實好處，我們認為大型建築商應該是這些產品的集合，而不僅僅是 BuilderSeries？

Dead on, Kurt. The BuilderSeries lap certainly makes us competitive, or has helped to make us competitive from a lap standpoint. But as we are successful converting builders with our lap offering and BuilderSeries, we have -- generally speaking, the house is also trimmed, the soffit is ours, any panel or shake product issued in an LP product. And we are seeing in the regions -- in the geographic regions where we are seeing success that is measurable directly (technical difficulty) the fact that (technical difficulty) traditional market share pulls [those other products along] (technical difficulty). So yes, we've got good growth on BuilderSeries, but we've got good growth on all primed SKUs that go into single-family [new construction] (technical difficulty) this year.

死定了，庫爾特。BuilderSeries 圈速確實讓我們具有競爭力，或者從圈速的角度來看幫助我們提高了競爭力。但是，由於我們透過我們的搭接產品和 BuilderSeries 成功地轉換了建築商，我們——一般來說，房子也是修剪過的，拱腹是我們的，任何面板或搖晃產品都是 LP 產品中發布的。我們在各個地區看到了可以直接衡量成功的地理區域（技術難度），事實上（技術難度）傳統市場份額拉動[那些其他產品]（技術難度）。所以是的，我們在 BuilderSeries 上取得了良好的成長，但今年我們在所有用於單戶住宅[新建築]（技術難度）的優質 SKU 上也取得了良好的成長。

Okay. That makes sense. And then on the ExpertFinish front, I mean, the answer seems kind of obvious but I'll ask it anyways. I mean, does the performance and strength that you're seeing there, are you seeing any offset from lower volume to others who might have been, you know, prefinishing the products themselves and selling them under a different brand name?

好的。這很有道理。然後在 ExpertFinish 方面，我的意思是，答案似乎很明顯，但我還是會問。我的意思是，您所看到的性能和強度，是否與其他公司相比，銷量較低，而其他公司可能自己對產品進行預加工，然後以不同的品牌名稱銷售，這些產品是否受到抵消？

And then, you know, on the margin front, how should we sort of ring-fence the long-term vision in terms of what ExpertFinish should be? Is it reasonable to think that just given the price point, it could be higher than the Company average over time? Or just given the operations and infrastructure around prefinishing operations, is meeting the Company average kind of where your head's at, at this stage?

然後，您知道，在利潤方面，我們應該如何確定 ExpertFinish 的長期願景？僅從價格點來看，它是否可能高於公司長期平均？或者僅僅考慮到預加工作業周圍的操作和基礎設施，在現階段，滿足公司的平均水平就是您所考慮的問題嗎？

So the first part of that question is a good one around -- I think, Kurt, what you're asking, are we cannibalizing historical partners that were prefinishing our product, our prime product, and selling it. And certainly some of that has happened, as we've gone into this ExpertFinish initiative. But we still have a significant amount of lap siding going into other prefinishers for conversion. So I would say certainly as a whole, our addition of ExpertFinish on the portfolio has been overall additive to our lap sales. But certainly there has been some cannibalization impact there, but certainly positive.

所以這個問題的第一部分很好——我認為，庫爾特，你問的是，我們是否正在蠶食那些預先完成我們的產品、我們的主要產品並銷售它的歷史合作夥伴。當然，隨著我們實施 ExpertFinish 計劃，有些情況已經發生了。但我們仍有大量的搭接壁板需要送到其他預加工廠進行加工。因此我可以肯定地說，從整體上看，我們在產品組合中增加 ExpertFinish 總體上提高了我們的圈數銷售。但肯定會存在一些蠶食影響，但肯定是正面的。

On the margin side, look from our -- we, if you recall, we used to have a CanExel product line in Eastern Canada at the time, one of the highest-margin products in the entire LP portfolio. And I certainly believe that ExpertFinish can be above average -- or should be, but above (technical difficulty) product margin for us. It will be -- and we're getting there. As Alan reported, we're getting to where it's not a drag any longer.

在利潤方面，從我們的——如果你還記得的話，我們當時在加拿大東部有一條 CanExel 產品線，這是整個 LP 投資組合中利潤率最高的產品之一。我當然相信 ExpertFinish 可以高於平均水平——或者應該高於，但高於我們的（技術難度）產品利潤。它會實現的——而且我們正在實現它。正如艾倫所報告的，我們正逐漸擺脫這種困擾。

It will be -- it is one of those things, though, that as we ramp into incremental volume, at times there will be inefficiencies associated with that continued growth that may delay the ultimate achievement of higher-than-average margin for ExpertFinish. But our expectation is ultimately that's where we'll end up. We should be getting paid more than normal margin amounts to paint the product, given the quality of the end product as a result of our finishing.

但問題是，隨著我們逐步增加產量，有時持續成長會帶來效率低下的問題，這可能會延遲 ExpertFinish 最終實現高於平均的利潤率。但我們的期望是，我們最終會到達那裡。考慮到我們完成的最終產品的質量，我們應該獲得比正常利潤金額更高的報酬來噴漆產品。

Right. Okay. That makes total sense. Thanks, Brad, for the color, and I'll turn it over.

正確的。好的。這完全有道理。謝謝布拉德，謝謝你的顏色，我會把它翻過來。

Mark Weintraub of Seaport Research Partners.

海港研究合作夥伴的馬克溫特勞布 (Mark Weintraub)。

Thank you. First, congrats, very strong quarter. Good outlook. One question is, obviously we had this big destock in Siding last year. Do you think customers have just continued to hold inventories very low or does some of the strength potentially represent some restock to say more normal levels? Or how would you have us think about that?

謝謝。首先，恭喜，本季業績非常強勁。前景良好。一個問題是，顯然去年我們在 Siding 進行了大規模去庫存化。您是否認為客戶只是繼續將庫存保持在非常低的水平，或者部分強勁勢頭是否可能代表補充庫存以達到更正常的水平？或者您希望我們怎樣看待這個問題？

I would say that we discuss this internally a bunch and we feel like we are at normal inventory levels for this time of year, normal being prior to last year back in the days when things were normal, which Mark was kind of a long time ago, given we were on allocation and COVID and all that. But we feel good about current inventory situations, as far as our distributor partners. I mean, we are still in the building season, so products moving and inventories are being maintained. But there has been no material build in inventory, nor do I believe it's necessarily light. I just think it's where it needs to be right now, to service the market conditions that we have in Siding.

我想說的是，我們內部對此進行了大量討論，我們覺得我們處於每年這個時候的正常庫存水平，正常水平是去年之前的情況，那時一切都很正常，而馬克的情況是很久以前的事了，因為我們當時正處於分配和 COVID 等問題上。但就我們的經銷商合作夥伴而言，我們對目前的庫存狀況感到滿意。我的意思是，我們仍處於建築季節，因此產品的運輸和庫存仍在維持。但庫存並沒有實質增加，我也不認為庫存一定很輕。我只是認為它現在就需要在這裡，以滿足我們在 Siding 的市場條件。

Okay. Thank you. And then good on ExpertFinish, great on the BuilderSeries. Any update on the smooth SmartSide initiatives?

好的。謝謝。ExpertFinish 表現良好，BuilderSeries 也很棒。有關於 SmartSide 計劃進展順利的最新消息嗎？

Yes. I mean, those products have been launched. It's a significant -- there was some of a -- I won't say significant, but a meaningful part of the Lennar program was the availability of smooth. And then that is a key component to our East Coast prefinish or ExpertFinish strategy. And so we're pleased with that new product. We'll continue to innovate around that product and others that are needed, you know, especially in repair/remodel SKU selection for the homeowner. But it's going well and we're pleased with the sales of that product so far this year.

是的。我的意思是，那些產品已經推出了。這是很重要的——有一些——我不會說很重要，但 Lennar 計劃的一個有意義的部分是平穩的可用性。這是我們東海岸預加工或 ExpertFinish 策略的關鍵組成部分。因此我們對這款新產品非常滿意。我們將繼續圍繞該產品和其他所需產品進行創新，特別是為房主提供維修/改造 SKU 選擇。但一切進展順利，我們對今年迄今該產品的銷售感到滿意。

Super. And then just last, kind of tie two together. One, so if I look at the full-year guide for Siding, I know you said it's seasonally weaker, but I think the math is it goes from $100 million at the midpoint to like $70 million of EBITDA for 4Q? Seems like a pretty steep dropoff, so I was curious if there's anything else embedded there? Maybe just a bit of conservativism?

極好的。最後，將兩者連結在一起。首先，如果我看一下 Siding 的全年指南，我知道您說過它的季節性較弱，但我認為計算結果是從中間點的 1 億美元增加到第四季度的 7000 萬美元 EBITDA？看起來下降幅度相當大，所以我很好奇那裡是否還嵌入了其他東西？也許只是有點保守？

Then also, just I know you made some OSB in the Siding operations in the first quarter. I'm guessing you did in the second quarter, too. Maybe a bit more color on what happened there and/or whether you are assuming now that OSB is weaker, whether there's OSB still being produced in Siding in the second half of the year? Thanks.

另外，我知道您在第一季的壁板業務中生產了一些 OSB。我猜你在第二季也這麼做了。也許可以更詳細地說明那裡發生了什麼，或者您現在是否認為 OSB 比較弱，下半年 Siding 是否仍在生產 OSB？謝謝。

Thanks, Mark. The actual -- part of the answer that ties to the question you asked about for smooth, we're ramping up production for smooth in the fourth quarter, given its success. And again, rather like ExpertFinish, it is currently an inefficient manufacturing process, given that it's in its infancy. So there is some non-material capital investment planned next year to help us automate that process more efficiently.

謝謝，馬克。實際的答案部分與您詢問的 Smooth 問題相關，鑑於其成功，我們將在第四季度提高 Smooth 的產量。而且，與 ExpertFinish 類似，由於它還處於起步階段，因此目前是一種效率低下的製造流程。因此，我們計劃明年進行一些非物質資本投資，以幫助我們更有效地實現流程的自動化。

So part of the drag is that -- another aspect is that we did, as I said in an answer to an earlier question, add labor as to the Siding network in Q2, which will be maintained through Q3 and through Q4, with Q4 being a slightly lighter -- most likely a lighter revenue quarter. That labor's going to be devoted to some essential maintenance, including months down at one of our mills to replace a furnace.

因此，部分拖累在於——另一方面，正如我在回答先前的問題時所說，我們在第二季度為 Siding 網路增加了勞動力，這將持續到第三季度和第四季度，而第四季度的收入可能會稍微少一些——很可能是一個收入較少的季度。這些勞動力將用於一些必要的維護，包括在我們的工廠停工數月更換熔爐。

I was chatting to one of the engineers about this, and he said the perfect phrase. He said, we don't have to do this now, but in 2025, we'll wish we did if we don't. And therefore, that's what we're doing.

我和一位工程師談過這個問題，他說了一句完美的話。他說，我們現在不必這樣做，但到了 2025 年，如果我們不這樣做，我們就會後悔。因此，這就是我們正在做的事情。

Thirdly, yes, there was some OSB production in Siding in Q1, a lot less in Q2, less in Q3, and that level staying roughly where it is in Q4. But that's not -- that's $1 million or so, but by no means the lion's share of the change in EBITDA. It's mostly the maintenance and [push to smooth costs]. And as you -- you gave me the out, so I'll take it. And yes, of course, we try a target that we're conifident we can beat, so there's a bit of conservatism [baked in], as always.

第三，是的，第一季 Siding 有一些 OSB 產量，第二季產量少了很多，第三季產量更少，而第四季的產量水準大致保持不變。但這不是——那是 100 萬美元左右，但絕不是 EBITDA 變化的最大份額。主要是維護和[推動平滑成本]。既然你給了我出路，那我就接受。是的，當然，我們會嘗試一個我們有信心能夠實現的目標，因此，一如既往，我們會帶有一點保守主義。

Much appreciated. Thank you.

非常感謝。謝謝。

Mike Roxland of Truist Securities.

Truist Securities 的 Mike Roxland。

Thank you, Brad, Alan, Aaron, for taking my questions and congrats on a good quarter despite the backdrop. First question I had was just in terms of the selling and marketing expenses. You mentioned adding -- increasing headcount, adding additional selling and marketing expenses. I'm just wondering how much you incurred in the quarter and where that -- what's left to spend in the balance of the year?

謝謝布拉德、艾倫、亞倫回答我的問題，並祝賀你們在本季度取得了良好的業績，儘管情況並不樂觀。我的第一個問題是關於銷售和行銷費用。您提到增加員工人數，增加額外的銷售和行銷費用。我只是想知道您在本季度花費了多少錢以及在何處——今年剩餘的開支是多少？

Oh gosh. We added about $5 million of selling and marketing costs year over year in Q2. How much is left to spend? Depends on the opportunities. I would like to see us continue investing at a relatively heavy rate. So I think you should expect to see similar type year-over-year variances for the remainder of the year, and that's fundamentally baked into the books.

哦天哪。我們第二季的銷售和行銷成本比去年同期增加了約 500 萬美元。還剩多少錢可以花？取決於機會。我希望我們繼續以相對較大的速度進行投資。因此，我認為您應該會看到今年剩餘時間出現類似的同比差異，而這基本上已經記入帳簿了。

And at that point, Alan, do you think you're fully staffed accordingly to meet this high demand that's out there? Or is this something that's going to be ongoing, particularly as you continue to grow your innovation, your pipeline and the like?

那麼艾倫，您認為您是否配備了足夠的員工來滿足如此高的需求？或者這會是持續的事情，特別是當您繼續發展您的創新、您的管道等等時？

Yes, you should expect the absolute number to continue to grow. This market share strategy that we have requires contractor builder conversions, which requires human interaction. And so we're going to support our sales team appropriately, both on the sales front and the technical group behind that does -- provides instruction on installation.

是的，你應該預期絕對數字會繼續成長。我們的市佔策略需要承包商建築商的轉變，這需要人際互動。因此，我們將為我們的銷售團隊提供適當的支持，包括銷售方面和背後的技術團隊—提供安裝指導。

And then also, as we continue to grow ExpertFinish, which means higher market share and higher -- and aspirations for even higher market share in repair and remodel, that does require marketing support. That's an in-home sell initiative, straight interaction with the consumer. And so as R&R becomes a bigger part of our mix, that segment requires a bigger investment in marketing. And so we should expect absolute growth in our sales and marketing expense, but hopefully find leverage if you ratio that against revenue. Obviously there should be a good bit of leverage there but we're not done investing in sales and marketing. We're not done (multiple speakers). So those two things go hand-in-hand.

而且，隨著我們 ExpertFinish 的不斷發展，這意味著更高的市場份額——以及對維修和改造領域更高市場份額的渴望，這確實需要行銷支援。這是一項內部銷售活動，直接與消費者互動。因此，隨著 R&R 在我們的產品組合中所佔比例越來越大，該部分需要在行銷方面進行更大的投資。因此，我們應該預期銷售和行銷費用絕對會成長，但希望透過將其與收入進行比率來找到槓桿。顯然，這其中應該有相當大的槓桿作用，但我們在銷售和行銷方面的投資尚未完成。我們還沒完（多位發言者）所以這兩件事是相輔相成的。

Got it, Brad. Thank you for the color. And then just one quick one on OSB. Could you share where you're OSB operating rate stood in 2Q, where it stands currently? Where do you think the industry stands? And really, any sense that curtailments could be forthcoming as prices continue to be under pressure here? Thank you.

明白了，布拉德。謝謝你的顏色。然後我們再快速討論一下 OSB。您能否分享一下第二季 OSB 的開工率情況以及目前的狀況？您認為該產業的現況如何？那麼，隨著價格持續承壓，是否有可能出現減產？謝謝。

Operating rate in Q2 of this year was around about 86%, I believe. We're forecasting it to be slightly lower in Q3.

我認為今年第二季的開工率約為86%。我們預測第三季這數字會略低。

And look, we will run our OSB business to match our customers' demand and do everything within our power for inventories to stay -- actually in OSB I would call it slightly lean right now. So we will match our capacity going into Q4 and beyond to the customer demand.

而且，我們將按照客戶的需求來經營我們的 OSB 業務，並盡一切努力保持庫存 - 實際上，就 OSB 而言，我現在稱之為略微精益。因此，我們將使第四季及以後的產能與客戶需求相符。

Got it. Good luck in the second half.

知道了。祝你下半場好運。

Sean Steuart of TD Cowen.

TD Cowen 的 Sean Steuart。

Thank you. Good morning. A couple questions. With respect to the Siding business, given the positive momentum and positive revision guidance, or guidance revision rather, for that segment, Brad, can you give us a sense of what you would need to see, either in terms of margins at the segments or with respect to order file [poll] to make the decision on the next capacity expansion for that segment?

謝謝。早安.幾個問題。關於壁板業務，鑑於該部門的積極勢頭和積極的修訂指引，或者更確切地說是指引修訂，布拉德，您能否讓我們了解一下您需要看到什麼，無論是在部門利潤率方面，還是在訂單文件[民意調查]方面，以決定該部門的下一次產能擴張？

Yes, Sean, we are beginning to talk about that more robustly than we were six months ago. And so the -- certainly we want to be in a situation to stay ahead of demand. This year, as we are reporting, has been a really good year as far as growth, and we expect to continue to build on that next year. So we are actively back into the scenario planning around the next incremental capacity. As we learn about which SKUs are growing, that informs the configuration of the next expansion. And that puts into play not only [wall log] but some of our existing facilities where an additional press line might be the best way to get the next increment of capacity. So we're actively in the planning stage there, not spending any significant or meaningful CapEx yet as part of that. But this year's growth has put that back on the planning horizon for us, and as we look into next year, which were not obviously at all -- haven't done the budget yet or certainly not giving guidance to, but we could see us beginning to do engineering for the next expansion sometime next year.

是的，肖恩，我們開始比六個月前更積極地討論這個問題。所以——我們當然希望能夠保持領先於需求的狀態。正如我們所報導的，就成長而言，今年是非常好的一個年頭，我們預計明年將繼續保持這一勢頭。因此，我們正積極地重新制定下一個增量容量的情境規劃。當我們了解哪些 SKU 正在成長時，這將為下一次擴充的配置提供資訊。這不僅使[牆體原木]發揮作用，也使我們的一些現有設施發揮作用，在這些設施中，增加一條壓機生產線可能是提高下一批產能的最佳方式。因此，我們正處於積極的規劃階段，尚未花費任何重大或有意義的資本支出。但今年的成長使我們重新回到了規劃範圍，當我們展望明年時，這顯然還沒有——還沒有做預算，當然也沒有給出指導，但我們可以看到我們在明年某個時候開始為下一次擴張進行工程設計。

Thanks for that detail. And appreciating you don't give 2025 guidance, but with the current footprint, can you give us a sense of how much incremental volume in Siding you expect to be able to produce and ship with the current footprint, beyond what's implied in 2024 guidance?

謝謝你提供的詳細資訊。感謝您沒有給出 2025 年的指導，但是按照目前的足跡，您能否告訴我們，在目前的足跡下，您預計 Siding 能夠生產和運輸多少增量量，超出 2024 年指導中所暗示的數量？

I would say, you know, because we are not fully shipped at all the facilities, because of the pullback last year. So I would say we could probably -- from where we are today, at capacity around shipped additions that would give us another 200 million to 300 million feet of capacity. So we've got a good bit of headroom, given the fact that we just converted Houlton and Sagola, Sagola being a big facility as well. So it's not like we're at all on edge, but we do want to stay ahead of it, Sean, as you know, to try to not go back into a managed order file situation like we were in two years ago.

我想說，你知道，由於去年的回調，我們的所有設施尚未完全運達。因此我想說，從我們目前的狀況來看，以新增的運力計算，我們大概可以再增加 2 億到 3 億英尺的運力。因此，考慮到我們剛剛改造了霍爾頓和薩戈拉（薩戈拉也是一個大型設施），我們有很大的發展空間。所以，我們並不是完全處於緊張狀態，而是我們確實想保持領先，肖恩，正如你所知，盡量不要回到兩年前那樣的管理訂單文件的情況。

That makes sense. Okay, that's all I had for now. Thanks very much.

這很有道理。好的，目前我所知道的就這些。非常感謝。

Matthew McKellar of RBC Capital Markets.

加拿大皇家銀行資本市場的馬修‧麥凱勒 (Matthew McKellar)。

Hi. Thanks for taking my questions. First, I'd like to ask if you have an updated view on how high Siding margins can go before the next capacity addition, I think you previously talked about 25%. So you've been there for a couple of quarters, you're guiding to the same range. ExpertFinish margins seem to be improving pretty rapidly. So just any updates on that front would be helpful. Thank you.

你好。感謝您回答我的問題。首先，我想問一下，您是否對下一次產能增加之前 Siding 的利潤率能達到多少有最新的看法，我記得您之前談到過 25%。所以你已經在那裡待了幾個季度，你指導的範圍是相同的。ExpertFinish 的利潤率似乎正在迅速提高。因此，有關這方面的任何更新都會有所幫助。謝謝。

Yes, it's a great question, one that I'm reluctant to answer. So as you know, we try to give ourselves more than enough room to operate what we described as this rising sine wave. At this point in time, particularly given the introduction of BrushSmooth, which I said is going very well, but at this point, is relatively inefficient. We're making great gains in ExpertFinish. I think we are, with increasing certainty, capable of hitting this 25% mark with this excess capacity that we're carrying. So yes, the trend is upwards on that, but I'm not not willing to commit yet on where that upside is. I think that we need to see how the next few capacity additions play out on the timing of those. So yes, probably best if I don't say any more on that.

是的，這是一個很好的問題，但我不太願意回答。所以如你所知，我們試圖給自己足夠的空間來操作我們所描述的上升正弦波。此時，特別是考慮到 BrushSmooth 的推出，我認為進展非常順利，但目前效率相對較低。我們在 ExpertFinish 方面取得了巨大的進步。我認為，憑藉我們現有的過剩產能，我們有能力達到 25% 的目標，而且這種可能性越來越大。所以是的，趨勢是向上的，但我還不願意承諾這種上升趨勢在哪裡。我認為我們需要觀察接下來幾次產能增加的時機如何。是的，我最好不要再談這個了。

Okay. Thanks. Fair. And then just one last cleanup for me. I was wondering if you have any color you could give around expected impact of your Siding production levels, the margins, as a result of the new forestry plant under development in the Swan Valley, Manitoba area.

好的。謝謝。公平的。然後我只需進行最後一次清理。我想知道您是否可以透露一下，由於在曼尼托巴省天鵝谷地區開發的新林業工廠，您的壁板生產水平和利潤率的預期影響。

Yes, good question. That's something we're actively working [with], I would say, from a Siding margin -- or for that matter, (technical difficulty) costs associated with those management plans. But it's really not material to the numbers that we talk about on this call. (technical difficulty)

是的，好問題。我想說，這是我們正在積極努力解決的問題，從邊際效益來看，或者就此而言，從與這些管理計畫相關的（技術難度）成本來看。但這與我們在本次電話會議上討論的數字其實並不重要。（技術難度）

Thanks very much for the help. I'll turn it back.

非常感謝您的幫忙。我會把它轉回去。

Jeff Stevenson of Loop Capital.

Loop Capital 的 Jeff Stevenson。

Hi. Thanks for taking my questions and congrats on the nice quarter. I was wondering if you could talk about whether there was any variance in siding demand trends in the home center channel compared with your overall Siding results? And then also how we should think about your expanded partnership with Home Depot regarding your trim product, you know, as far as an impact on channel demand moving forward?

你好。感謝您回答我的問題，並祝賀本季取得良好業績。我想知道您是否可以談談家庭中心渠道的壁板需求趨勢與您的整體壁板結果相比是否存在差異？那麼，我們應該如何看待您與家得寶 (Home Depot) 在裝飾產品方面擴大的合作關係，以及這對未來通路需求的影響？

Yes. So we did see meaningful growth, year-over-year growth in our retail business (technical difficulty) and expect that momentum to continue in Q3. Some of that has been just strength in panel that has been historic SKU there. But as you have mentioned, the trim placement particularly in the Home Depot has been all incremental volume for us, and that has been a meaningful part of the growth that we saw in Q2 and expect to see in Q3.

是的。因此，我們確實看到了零售業務（技術難度）的顯著增長、同比增長，並預計這種勢頭將在第三季度繼續保持。其中一些只是面板的優勢，也是那裡具有歷史意義的 SKU。但正如您所提到的，特別是在家得寶 (Home Depot) 的修剪佈局對於我們來說都是增量，這是我們在第二季度看到的增長的重要組成部分，預計在第三季度也會看到增長。

So we are continuing to grow with the home center, particularly Home Depot, by being a good partner as far as adding SKUs there, particularly around trim, some lap in some certain places. And that has gotten us in a position where we have the ability to grow with the Home Depot beyond just the traditional panel play that has been the historic basis of the relationship.

因此，我們將繼續與家居中心（特別是家得寶）共同成長，透過成為家得寶的良好合作夥伴，在那裡增加 SKU，特別是在裝飾方面，在某些特定的地方增加一些 SKU。這讓我們有能力與家得寶共同成長，而不僅限於作為雙方關係歷史基礎的傳統面板合作。

And I guess you were asking a little bit are we seeing cannibalization as a result of that, and the answer is not of any -- no, not seeing -- the trim order file is so strong right now across the board that I don't think there has been any significant loss of (technical difficulty). [There's some] stores [of Depot] still, strong DIY, or ultra-small (technical difficulty) customer base there. So it's small in scale. So it's giving us the ability to have the product presented to a customer base that we probably didn't have access to the product (technical difficulty) [distribution in] lumber yards.

我想你大概是想問，我們是否因此看到了客戶流失？答案是沒有——沒有，沒有看到——目前，整體的裝飾訂單文件非常強勁，我認為沒有任何重大的（技術難度）損失。 [那裡仍然有一些] Depot 的商店，強大的 DIY 客戶群，或極小的（技術難度）客戶群。所以規模很小。因此，它使我們能夠將產品展示給我們可能無法在木材場（技術難度）[分銷]獲得產品的客戶群。

Great. No, thanks for the color there. And then you mentioned that price mix was roughly an equal contributor to the 6% growth in the second quarter. Would you expect a similar contribution from price and mix as we move through the back half of the year? Would one be more than the other?

偉大的。不，謝謝那裡的顏色。然後您提到價格組合對第二季 6% 的成長貢獻大致相同。隨著我們進入下半年，您是否預期價格和產品組合將做出類似的貢獻？其中一個會比另一個多嗎？

We kind of -- it's hard to predict the mix aspect. You know, the 3% net from list price increase. Yes, that's relatively safe. The mix is a little more variable depending on the mix of products. So I think it will be our friend. Whether it is as much as 3 points is so demand-specific that it's hard to predict with any great precision. They'll [become]. It will be positive.

我們有點——很難預測混合方面。您知道，標價淨上漲了 3%。是的，那是相對安全的。根據產品組合的不同，組合形式也略有變化。所以我認為它會成為我們的朋友。是否會達到 3 分取決於特定需求，因此很難進行精確預測。他們會[變得]。這將是積極的。

Okay. Understood. Thank you.

好的。明白了。謝謝。

George Staphos of Bank of America Securities.

美國銀行證券公司的喬治‧斯塔福斯 (George Staphos)。

Thanks so much. Thanks for taking my questions, guys. You mentioned the progress that you're seeing in Expert and the progress you're seeing with BuilderSeries. Would it be possible for you to give us some additional color -- and perhaps you already did, but I missed it. In terms of the guidance raise, how much of that was from the progress that you're seeing in single-family and your progress there, and also then within repair and model? Similarly, you talk about the share gains. Is there a way to give us some order of dimension? Sounds like you're doing very well with Expert. How much of that is coming again from single-family, from builder versus repair/remodel and that distribution channel?

非常感謝。謝謝你們回答我的問題。您提到了您在 Expert 中看到的進展以及您在 BuilderSeries 中看到的進展。您能否為我們提供一些額外的資訊——也許您已經提供了，但我錯過了。就指導金額的提高而言，其中有多少來自於您在單戶住宅和您在那裡看到的進展，以及在維修和模型方面取得的進展？同樣，您也談到了股票收益。有沒有辦法給我們一些維度順序？聽起來您在專家方面做得很好。其中有多少是來自單戶住宅、建築商、維修/改造商和分銷管道？

And then questions that we've received today from investors -- is it possible at all, recognizing it's an open mic conference call, to talk about where you think you're getting your share relative to other products that are in the market? Is it more coming from vinyl? Is it more coming from fiber cement? Anything that you would have us take away from that?

然後，我們今天收到投資者的問題是——考慮到這是一次開放式電話會議，我們是否可以談談您認為相對於市場上的其他產品，您的市場份額如何？它更多是來自乙烯基嗎？它更多來自纖維水泥嗎？您希望我們從中得到什麼啟示嗎？

So let's speak to the where's the growth coming from question first. I would say when you look at the -- on growth we got, I would put about -- I mean, in general terms, George, about half of that growth (technical difficulty).

那我們先來談談成長從何而來的問題。我想說，當你看到我們取得的成長時，我會說——喬治，我的意思是，總的來說，大約有一半的成長，（技術難度）。

Hey, Brad, your phone is cutting out on our side. I don't know if --

嘿，布拉德，你的電話在我們這邊斷線了。我不知道--

I'll move closer to the speaker and see if that helps. Let me know if it doesn't.

我會靠近揚聲器，看看是否有幫助。如果沒有的話請告訴我。

So if you take the growth that we've reported, about half of that, I would attribute to single-family new construction. Look, let me just back up. There's a little growth in [there shed] in retail. Okay? But the meaningful growth is about half-and-half between single-family new construction, and I would say about half of that is driven by the initiatives around the big builder focus that we have. And then the other half of that would be repair and remodel, which is just (technical difficulty) converting contractors and getting the siding installed on homes. That's just a regional (technical difficulty) [initiative] there. But certainly we would not have had as good a quarter or be forecasting as good a Q3 if it wasn't for the success we're seeing in single-family new construction repair and remodel. The shed in retail has just been a nice little bump to have year over year.

因此，如果您考慮我們報告的增長，其中約有一半歸因於單戶住宅的新建築。瞧，讓我回顧一下。零售業略有成長。好的？但有意義的增長大約一半來自單戶住宅新建築，我想說其中大約一半是由我們圍繞大型建築商的舉措推動的。另一半是維修和改造，這只是（技術難題）轉換承包商並在房屋上安裝壁板。這只是那裡的一個地區性（技術難題）[舉措]。但如果不是我們在單戶住宅新建築維修和改造方面的成功，我們肯定不會有這麼好的季度業績，也不會預測到這麼好的第三季業績。零售業的銷售額逐年小幅成長。

Where is it coming from? I would say it's coming from across the board. There is still opportunities, particularly in repair and remodel, but certainly also in new construction, as we compete against vinyl. And I would think most most of the success in repair and remodel is probably against vinyl. On the single-family new construction side, then you get into some competitive part sidings as well as vinyl as to competition. And so as we gain share there, it's coming from someone if it's not coming from growth with an existing -- a big builder customer. But obviously, what we would be replacing would be either vinyl or on our competitive parts side.

它是從哪裡來的？我想說這種趨勢來自各方面。仍然存在機會，特別是在修復和改造方面，但在新建築方面肯定也有機會，因為我們必須與乙烯基競爭。我認為修復和改造的成功很大程度上可能得益於乙烯基。在單戶新建築方面，您會遇到一些競爭激烈的部分壁板以及乙烯基的競爭。因此，當我們在那裡獲得市場份額時，如果不是來自現有的大型建築商客戶的成長，那麼它就來自其他人。但顯然，我們要替換的是乙烯基或我們的競爭部件。

But there's still a lot of opportunity to go head-to-head against vinyl, with our product being certainly an upgrade -- perceived upgrade to vinyl, or being -- not perceived, actually an upgrade to vinyl. And so we have (technical difficulty) competitive there because that's where the big market share is. So there's a lot of focus on us making sure we have, and can explain in a good way, the value proposition against vinyl but also against other hard sidings.

但是，我們仍然有很多機會與黑膠唱片進行正面交鋒，我們的產品無疑是黑膠唱片的升級版——人們認為它是黑膠唱片的升級版，或者說，實際上不是黑膠唱片的升級版。因此，我們在那裡具有（技術難度）競爭力，因為那裡擁有巨大的市場份額。因此，我們非常重視確保我們擁有並能夠以良好的方式解釋相對於乙烯基以及其他硬壁板的價值主張。

Just closing the loop, and I think I know the answer, but if basically you're getting half of the progress from single-family and half from repair/remodel, would that also the equivalent driver of the guidance raise within Siding?

只是關閉循環，我想我知道答案，但如果基本上你從單戶住宅中獲得一半的進展，而從維修/改造中獲得一半的進展，那麼這是否也是 Siding 內部指導提升的等效驅動力？

And then separate and I'll turn it over. Can you remind us what's left to attack in OEE in terms of margin opportunity across the businesses? If trends are as you expect over the next year -- and I recognize, there are no guarantees in life. What could that mean for your profit dollars, Alan, over the next year or two years? Thank you.

然後分開，我會把它翻過來。您能否提醒我們，從整個企業的利潤機會來看，OEE 還有什麼好攻克的？如果明年的趨勢如你所預期的那樣——我承認，生活中沒有什麼是絕對的。艾倫，這對你未來一年或兩年的利潤意味著什麼？謝謝。

I will answer the -- yes on the revised Q3 (technical difficulty) guidance is predicated on the strength we're seeing in the repair and remodel, single-family construction order file. Then there is still upside on OEE and I'll challenge Alan to articulate that. [laughter]

我的回答是——是的，修訂後的第三季（技術難度）指導是基於我們在維修和改造、單戶住宅建設訂單文件中看到的實力。那麼 OEE 仍然有上升空間，我會挑戰艾倫來闡明這一點。[笑聲]

(multiple speakers) time since we've quoted EBITDA numbers that relate to percentage points increases in OEE, and I'm reluctant to do so today. The way to think about OEE is that what it can fundamentally allow us to do is meet thresholds in terms of shifts. And so it's obviously more efficient when we're managing our capacity up or down, to be able to to generate more [OSB] output without adding a shift [and/or] we're lowering output to be able to take out a whole shift and OEE gives us that leverage. And as you can imagine, and I've discussed it before, leverage that we don't sort of use in the Siding business, because the idea with the Siding business is to try and maintain this sort of more consistent, stable and growing workforce as we grow volumes.

（多位講者）我們已經很久沒有引用與 OEE 百分點成長相關的 EBITDA 數字了，但今天我不太願意這樣做。思考 OEE 的方式是，它從根本上可以幫助我們滿足輪班方面的門檻。因此，當我們提高或降低產能時，顯然效率更高，能夠在不增加班次的情況下產生更多的 [OSB] 輸出，[和/或] 我們降低輸出以便能夠減少整個班次，而 OEE 為我們提供了這種槓桿作用。正如您所想的，我之前也討論過，我們在壁板業務中不會使用槓桿，因為壁板業務的理念是隨著產量的增長，嘗試保持這種更加一致、穩定和不斷增長的勞動力。

But it's the opportunities it gives us to operate the system with increased flexibility and we make braver decisions a little earlier, in terms of taking out capacity when we feel demand is not there. To my mind, that's the real benefit of OEE, and of course, that manifests itself in terms of increased operating performance. But I'm going to refrain from reintroducing a pure EBITDA dollar against a percentage point of OEE.

但它為我們提供了以更大的靈活性來操作系統的機會，並且當我們感覺到沒有需求時，我們可以更早地做出更勇敢的決定，即取消容量。在我看來，這就是 OEE 的真正好處，當然，這體現在提高營運績效。但我不會重新引入純 EBITDA 美元與 OEE 百分點的對應關係。

George, I'll just add to that, you know, what's been remarkable about our OEE journey to me is as we -- we're way ahead of where we thought we would be five years ago, but we still see opportunity for improvement, as, you know -- and so it's kind of -- probably will be a never-ending journey of finding ways to be more efficient and more productive. And of course, CapEx helps that. It could actually increase the baseline and then when we launch a new product, like BrushSmooth in Siding, there's all kind of OEE opportunity there, because we learn learn to make the product more efficiently. So we're on a never-ending, continuous journey on OEE and feel like we'll be talking about that 10 years from now, and still see plenty of opportunity. That's kind of the beauty of the industry and the way that our machines work at the facilities.

喬治，我只想補充一點，你知道，我們的 OEE 之旅對我來說最了不起的地方在於——我們遠遠領先於五年前的預期，但我們仍然看到改進的機會，你知道——所以這可能是一個永無止境的旅程，我們一直在尋找更高效、更富有成效的方法。當然，資本支出有助於實現這一點。它實際上可以提高基線，然後當我們推出新產品時，例如 Siding 中的 BrushSmooth，就會有各種 OEE 機會，因為我們學會瞭如何更有效率地生產產品。因此，我們在 OEE 方面進行了永無止境的持續探索，感覺 10 年後我們還會談論這個問題，並且仍然看到很多機會。這就是這個行業的美妙之處，也是我們的機器在設施中運作的方式。

To some degree, it's the beauty of growth. But anyway, thank you, guys. I'll turn it over.

某種程度上來說，這就是成長的美。但無論如何，謝謝你們。我把它翻過來。

Amen.

阿門。

Susan Maklari of Goldman Sachs.

高盛的蘇珊馬克拉里 (Susan Maklari)。

Good morning, everyone. Thanks for taking the question. I wanted to start with digging a little bit more into the R&R side of things. Can you just give some perspective on what you're hearing around the consumer and sell-out trends on the ground, and what level of sellout do you think the channel's positioned for in the back half, given the inventories that they're carrying?

大家早安。感謝您回答這個問題。我想先深入研究一下 R&R 方面的事情。您能否就您所聽到的有關消費者和銷售趨勢的一些看法發表一些看法？考慮到他們所持有的庫存，您認為該通路在下半年的銷售水準會是怎樣？

I think the channel is adequately stocked for the second half for any reasonable demand expectation on repair and remodel. So I have no concerns about ability to serve. And I don't have concerns about there being any kind of overstocking in repair and remodel. One-step distributors are experts in managing inventory in that channel. But I think -- I do believe demand is dampened for siding. Siding remodel is a big-ticket expense, many times financed. And so with interest rates where they are, with the economic uncertainty that's out there, there is -- I think R&R spend for a reside is constrained.

我認為，對於下半年任何合理的維修和改造需求預期而言，通路庫存充足。所以我並不擔心自己的服務能力。我並不擔心維修和改造方面有任何庫存過剩的情況。一步式分銷商是該通路庫存管理的專家。但我認為——我確實相信對壁板的需求有所減弱。壁板改造是一筆大額開支，很多時候需要融資。因此，考慮到目前的利率水準以及存在的經濟不確定性，我認為居住的 R&R 支出是受到限制的。

And so I'm really proud of the fact that we're seeing the growth that we are seeing, because that has to mean, if that hypothesis is true, that that's market share gain. But you know, with the interest rate reductions, if that if that happens, if we get through, you know, as Aaron and I were talking about this morning, a soft landing or quasi soft landing, the pent-up demand around potential siding reside projects could be pretty significant. So I think we're in a really good position to have on our product commercialized, building credibility around the offering, expanding geographically our access to market through picking up some really high-quality distribution, to where when we see repair and remodel spend come back and financing loosen up a little bit, so that a homeowner can afford to do a big-ticket remodel on siding, we're going to be in a really good position. And that's why we're so encouraged about the future for our siding business, is repair and remodel, just as we're so underpenetrated from a market share standpoint, if we continue to be able to gain market share while the market also gets stronger, that sets us up for some really good growth over the next several years.

因此，我對我們所看到的成長感到非常自豪，因為如果這個假設成立，那就意味著市場佔有率的成長。但你知道，隨著利率的降低，如果發生這種情況，如果我們實現了軟著陸或準軟著陸，那麼圍繞潛在的壁板居住項目的被壓抑的需求可能會相當大。因此，我認為我們處於一個非常有利的位置，可以將我們的產品商業化，建立產品的信譽，透過選擇一些真正高品質的分銷管道在地理上擴大我們的市場准入，當我們看到維修和改造支出回升並且融資稍微放鬆時，這樣房主就可以負擔得起對牆板進行大筆改造，我們將處於一個非常有利的位置。這就是為什麼我們對我們的壁板業務的未來感到如此鼓舞，即維修和改造，正如我們從市場份額的角度來看滲透率如此之低一樣，如果我們繼續能夠獲得市場份額，同時市場也變得更加強大，這將為我們在未來幾年實現真正的良好增長奠定基礎。

Okay. That's very helpful. And then, you did see a bit of a raw material tailwind this quarter. Can you talk about the outlook from that perspective and how we should think about that flowing through the next couple of quarters?

好的。這非常有幫助。然後，你確實看到了本季原料的一些順風。您能否從這個角度談談前景以及我們應該如何看待接下來幾季的走勢？

Yes. I think it may be a little -- may not be quite as positive as it has been in Q2 for the remainder of the year, but we still expect a raw material tailwind, primarily resins and logs. So we're optimistic.

是的。我認為今年剩餘時間的情況可能沒有第二季那麼積極，但我們仍然預期原料將出現順風，主要是樹脂和原木。所以我們很樂觀。

Okay. All right. Thank you for the color, both, and good luck with everything.

好的。好的。謝謝你們的顏色，祝一切順利。

Thank you. That does conclude today's Q&A session. I would like to turn the call back over to Aaron for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。我想將電話轉回給 Aaron 做最後發言。請繼續。

Okay. Thank you, operator. (technical difficulty) We're going to close there, and give everybody a couple of minutes back in their day. Stay safe. We look forward to connecting (technical difficulty) and thank you very much.

好的。謝謝您，接線生。（技術難題）我們要結束這裡了，讓每個人有幾分鐘的時間休息。注意安全。我們期待連接（技術困難），非常感謝。

Thank you, everyone, for joining today's conference call. You may disconnect.

感謝大家參加今天的電話會議。您可以斷開連線。