Quanex Building Products Corp (NX) 2026 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q2 2026 Quanex Building Products Corporation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

各位早安，感謝您稍候。歡迎參加 Quanex Building Products Corporation 2026 會計年度第二季（Q2）財報電話會議。（接線員指示）請注意，今天的會議將被錄音。（接線員指示）

I would now like to hand the conference over to your speaker today, Scott Zuehlke, Senior Vice President, CFO, and Treasurer.

現在我想把會議交給今天的發言人：資深副總裁、財務長兼財務主管（Treasurer）Scott Zuehlke。

Thanks for joining the call this morning. On the call with me today is George Wilson, our Chairman, President and CEO.

感謝各位今天早上加入本次電話會議。今天與我一同出席的還有我們的董事長、總裁兼執行長 George Wilson。

This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance, and Quanex undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website.

本次電話會議將包含前瞻性陳述以及部分非 GAAP 指標的討論。本次電話會議及我們的財報新聞稿中所討論的前瞻性陳述與指引，係基於目前的預期。實際結果或事件可能與該等陳述與指引存在重大差異，且 Quanex 不承擔更新或修訂任何前瞻性陳述以反映新資訊或事件的義務。關於前瞻性陳述免責聲明的更詳細說明，以及非 GAAP 指標與最直接可比 GAAP 指標之間的調節表，請參閱我們昨日發布並已張貼於公司網站的財報新聞稿。

I'll now turn the call over to George for his prepared remarks.

接下來我將把電話交給 George，請他發表事先準備的談話。

Thanks, Scott, and good morning to everyone on the call. In my commentary, I will give our perspective on the current macroeconomic environment, provide an overview of our results, highlight some inflationary challenges and the actions being taken by Quanex, and then discuss go-forward priorities.

謝謝你，Scott，也向所有在線上的各位道早安。在我的評論中，我將分享我們對當前總體經濟環境的觀點，概述我們的業績表現，重點說明一些通膨帶來的挑戰以及 Quanex 正在採取的行動，最後討論未來的優先事項。

From a macroeconomic perspective, housing demand in North America and Europe is showing early signs of stabilization, but the recovery will likely proceed gradually. Progress remains constrained by persistently weak consumer confidence, which remains below historical norms. Inflation fatigue, affordability challenges and ongoing geopolitical uncertainty are outweighing an otherwise strong labor market.

從總體經濟角度來看，北美與歐洲的住房需求已出現初步穩定跡象，但復甦可能會逐步推進。進展仍受到持續疲弱的消費者信心所限制，而消費者信心仍低於歷史常態。通膨疲乏、可負擔性挑戰以及持續的地緣政治不確定性，正在抵銷原本強勁的勞動市場所帶來的支撐。

In the US, mortgage rates above 6% further dampened activity while the lock-in effect where homeowners are reluctant to relinquish previously secured low rates continues to limit mobility. Even as rising home equity reflects higher property values. Given these ongoing challenges, we don't expect housing markets to rebound sharply in the near term. We instead anticipate a steady recovery over the medium to longer term, and this will depend on: one, an improvement in affordability; two, a decrease or stabilization of interest rates; and three, an improvement in consumer confidence influenced by a period of geopolitical stability.

在美國，超過 6% 的房貸利率進一步抑制了市場活動；同時，「鎖定效應」——屋主不願放棄先前取得的低利率——仍持續限制流動性，即使房屋淨值上升反映了更高的房產價值。鑑於這些持續的挑戰，我們不預期短期內住房市場會出現急劇反彈。我們反而預期中長期將呈現穩健復甦，而這將取決於：第一，可負擔性改善；第二，利率下降或趨於穩定；第三，受一段地緣政治穩定期影響而帶動的消費者信心改善。

I will now provide some commentary on our results for the second quarter of 2026. Despite the headwinds I just mentioned, demand for our products came in largely as expected, and we performed well from an operational standpoint. On a consolidated basis, revenue increased modestly year-over-year, as pricing actions, tariff-related pass-throughs, and favorable foreign exchange more than offset lower volumes.

接下來我將就 2026 會計年度第二季的業績提供一些評論。儘管面臨我剛才提到的逆風，我們產品的需求大致符合預期，且我們在營運面表現良好。以合併基礎來看，營收年增小幅上升，因為定價措施、關稅相關轉嫁以及有利的外匯因素，已足以抵銷較低的出貨量。

Looking ahead to Q3, we expect seasonal demand patterns to continue, which should mean sequential volume growth. Notably, volumes softened following Memorial Day last year. And although we realized it's still early, we have not observed similar trends to date this year. We will remain vigilant in this regard closely monitoring order patterns to respond quickly to any changes in demand.

展望第三季（Q3），我們預期季節性需求型態將持續，這應意味著出貨量可望較前一季成長。值得注意的是，去年在美國陣亡將士紀念日（Memorial Day）之後，出貨量曾轉弱。雖然我們也了解目前仍為時尚早，但截至目前今年尚未觀察到類似趨勢。我們將在這方面保持警覺，密切監控訂單型態，以便對需求變化迅速做出回應。

Gross margins declined 350 basis points year-over-year in Q2, primarily due to sharp increases in raw materials and logistics costs. Our Hardware Solutions segment was impacted the most by inflationary pressures during Q2 of this year due to the legacy nature of the make-the-stock business model for the window indoor hardware product line and the fact that the inventory levels are highest in this segment.

第二季毛利率年減 350 個基點，主要原因是原物料與物流成本大幅上升。今年第二季通膨壓力對我們的 Hardware Solutions（五金解決方案）事業部影響最大，原因在於窗戶室內五金產品線沿用「備貨生產（make-the-stock）」的傳統商業模式，以及該事業部的庫存水位最高。

Although our North American index pricing mechanisms are designed to adjust for input cost fluctuations, the quarterly timing of these adjustments, varying by commodity, customer and product line can create temporary earnings pressures during periods of rapid inflation, like those we've seen in the past few months.

雖然我們在北美的指數定價機制旨在因應投入成本波動，但這些調整以季度為週期，且會因商品、客戶與產品線而異，因此在過去幾個月這類快速通膨期間，可能造成短期的獲利壓力。

In our European and international markets where index pricing is less prevalent, price adjustments rely more on customer negotiations and announced increases, often with advanced notice periods that further extend timing impacts. Cost pressures on raw materials were broad-based across segments during Q2 of this year. The Hardware Solutions segment was most affected by rapid cost increases for aluminum, zinc, stainless steel, and plastic resins.

在歐洲及國際市場，指數定價較不普遍，價格調整更仰賴與客戶協商及公告漲價，且通常需要提前通知期，進一步拉長時點影響。今年第二季，各事業部在原物料方面的成本壓力普遍存在。其中 Hardware Solutions 事業部受鋁、鋅、不鏽鋼與塑膠樹脂成本快速上升影響最為明顯。

The Extruded Solutions segment was most impacted by cost increases for butyl rubber, silicon compounds, carbon black, desiccants and PVC resins. And our Custom Solutions segment was most impacted by cost increases for EPDM, carbon black, oils, aluminum, plastic resins, and certain hardwoods.

Extruded Solutions（擠出解決方案）事業部受丁基橡膠、矽化合物、碳黑、乾燥劑與 PVC 樹脂成本上升影響最大。而 Custom Solutions（客製化解決方案）事業部受 EPDM、碳黑、油品、鋁、塑膠樹脂以及部分硬木成本上升影響最大。

Rising costs and packaging, particularly plastic and paper as well as increases in freight and logistics costs impacted margins across all segments and product lines. To mitigate these pressures, we have implemented and will continue to implement targeted price increases ranging from mid-single digit to low teens percentages to be phased in throughout Q3 and tailored by product line.

包裝成本上升，尤其是塑膠與紙材，以及運輸與物流成本增加，對所有事業部與產品線的毛利率均造成影響。為了緩解這些壓力，我們已實施並將持續推動具針對性的漲價，幅度約介於中個位數百分比至低十位數百分比，並將於第三季逐步導入，且依產品線量身調整。

Going into Q3, our operational priorities will be on closing the price cost gap across all product lines, accelerating the transition for make-the-stock to make-the-order for the window indoor hardware business, Executing on our 80/20 initiative in the North American window and door hardware business, improving working capital, and then generating more free cash flow. We believe that by executing on these actions, we will be well positioned to deliver shareholder value as market conditions improve.

進入第三季，我們的營運優先事項將聚焦於：縮小所有產品線的價格與成本差距；加速窗戶室內五金業務由「備貨生產（make-the-stock）」轉向「接單生產（make-the-order）」；推動北美門窗五金業務的 80/20 計畫；改善營運資金；並進一步創造更多自由現金流。我們相信，透過落實這些行動，隨著市場狀況改善，我們將能處於有利位置以為股東創造價值。

I will now turn the call over to Scott who will discuss our financial results in more detail.

接下來我將把電話交給 Scott，由他更詳細說明我們的財務結果。

Thanks, George. On a consolidated basis, we reported net sales of $462.4 million during the second quarter of 2026, which represents an increase of 2.2% compared to $452.5 million for the same period of 2025. The increase was mainly due to favorable impacts from pricing, tariff pass-throughs, and foreign exchange translation. We estimate that volumes were down about 3%. Pricing was up approximately 1.5%. The tariff pass-through impact was about 1%, and foreign exchange translation was a benefit of about 2.5%.

謝謝你，George。以合併基礎來看，我們在 2026 會計年度第二季的淨銷售額為 4.624 億美元，較 2025 年同期的 4.525 億美元增加 2.2%。此增幅主要來自定價、關稅轉嫁以及外匯換算的有利影響。我們估計出貨量約下降 3%。定價約上升 1.5%。關稅轉嫁影響約為 1%，外匯換算帶來約 2.5% 的正面貢獻。

We reported net income of $3.4 million or $0.07 per diluted share during the three months ended April 30, 2026, compared to net income of $20.5 million or $0.44 per diluted share during the three months ended April 30, 2025. The effective tax rate in the second quarter of 2026, excluding discrete items, was approximately 24%, which is what was expected.

截至 2026 年 4 月 30 日止三個月，我們的淨利為 340 萬美元，或稀釋後每股盈餘 0.07 美元；相較之下，截至 2025 年 4 月 30 日止三個月的淨利為 2,050 萬美元，或稀釋後每股盈餘 0.44 美元。2026 年第二季的有效稅率（不含一次性項目）約為 24%，符合預期。

On an adjusted basis, we reported net income of $11.3 million or $0.25 per diluted share during the second quarter of 2026, compared to net income of $29.1 million or $0.63 per diluted share during the second quarter of 2025. The adjustments being made to net income are primarily for expenses related to a plant closure or relocation, transaction and advisory fees, reorganizational costs, amortization expense related to intangible assets and foreign currency impacts.

以調整後基礎計算，我們在 2026 會計年度第二季的淨利為 1,130 萬美元，或稀釋後每股盈餘 0.25 美元；相較之下，2025 年第二季的淨利為 2,910 萬美元，或稀釋後每股盈餘 0.63 美元。對淨利所做的調整主要包括：與工廠關閉或遷移相關的費用、交易與顧問費用、重組成本、與無形資產相關的攤銷費用，以及外幣影響。

On an adjusted basis, EBITDA for the quarter was $44.2 million compared to $63.1 million during the same period of last year. The decrease in adjusted earnings for the second quarter of 2026 compared to the second quarter of 2025 was mainly due to reduced operating leverage from lower volumes related to ongoing macroeconomic uncertainty combined with weak consumer confidence, tariff-related costs and inflationary pressures.

以調整後基礎計算，本季 EBITDA 為 4,420 萬美元，去年同期為 6,310 萬美元。2026 年第二季相較 2025 年第二季調整後獲利下滑，主要原因是：在持續的總體經濟不確定性與疲弱的消費者信心下，出貨量下降導致營運槓桿降低，再加上關稅相關成本與通膨壓力。

More specifically, due to the ongoing war in the Middle East and other macroeconomic factors, we realized a significant increase in transportation and raw material costs during the quarter.

更具體而言，由於中東持續的戰事以及其他總體經濟因素，我們在本季的運輸與原物料成本出現顯著上升。

Now for results by operating segment. We generated net sales of $203 million in our Hardware Solutions segment for the second quarter of 2026, a slight increase compared to $202.9 million in the second quarter of 2025. We estimate that volumes were down approximately 5%. Pricing was marginally up by about 0.5% in this segment.

接下來說明各營運事業部的表現。我們的 Hardware Solutions 事業部在 2026 會計年度第二季的淨銷售額為 2.03 億美元，較 2025 年第二季的 2.029 億美元小幅增加。我們估計出貨量約下降 5%。該事業部的定價約小幅上升 0.5%。

The tariff pass-throughs impact was about 2.5% and foreign exchange translation was a benefit of about 2%.

關稅轉嫁影響約為 2.5%，外匯換算帶來約 2% 的正面貢獻。

Adjusted EBITDA was $5.2 million in this segment for the second quarter of 2026 compared to $27 million in the same period of 2025. This decrease was largely due to reduced operating leverage from lower volumes combined with impacts from tariff changes and inflationary pressure on materials, freight, and labor costs, all of which meaningfully impacted gross margin.

該事業部 2026 會計年度第二季的調整後 EBITDA 為 520 萬美元，去年同期為 2,700 萬美元。此下滑主要是由於出貨量下降導致營運槓桿降低，並疊加關稅變動影響，以及材料、運輸與勞動成本的通膨壓力，以上因素均對毛利率造成顯著影響。

Our Extruded Solutions segment generated revenue of $165 million in Q2 of this year, a slight increase compared to $164 million in Q2 of last year. We estimate that volumes were down approximately 4% year-over-year in this segment for the quarter with pricing up by approximately 1% and a positive foreign exchange translation impact of about 3.5%.

我們的擠壓解決方案（Extruded Solutions）部門在今年第二季創造營收1.65億美元，較去年第二季的1.64億美元小幅增加。我們估計本季該部門出貨量年減約4%，定價上升約1%，外匯換算帶來約3.5%的正面影響。

Adjusted EBITDA declined slightly to $30.4 million in this segment for the quarter versus $30.7 million during the same period of last year, mainly due to decreased operating leverage related to lower volumes and general inflationary pressure.

本季該部門調整後EBITDA小幅下滑至3,040萬美元，低於去年同期的3,070萬美元，主要因出貨量下降導致營運槓桿降低，以及整體通膨壓力所致。

We reported net sales of $103.9 million in our Custom Solutions segment during the quarter, which represented growth of 6.6% compared to the prior year. For the quarter, we estimate that volumes were up by approximately 1%, pricing increased by approximately 4.5%, and foreign exchange translation, coupled with the pass-through of tariffs was a benefit of approximately 1%. Adjusted EBITDA declined to $11 million from $13 million in this segment for the quarter, mostly due to inflationary pressures we have already discussed.

本季我們的客製化解決方案（Custom Solutions）部門淨銷售額為1.039億美元，較去年成長6.6%。就本季而言，我們估計出貨量約成長1%，定價約上升4.5%，外匯換算加上關稅轉嫁帶來約1%的助益。該部門本季調整後EBITDA由1,300萬美元降至1,100萬美元，主要是由於我們先前已討論過的通膨壓力。

Moving on to cash flow and the balance sheet. Cash provided by operating activities was $18.9 million for the second quarter of 2026, which compares to $28.5 million for the second quarter of 2025. Free cash flow was $7.9 million in Q2 of 2026 compared to $13.6 million in Q2 of 2025. We expected to be a net borrower during the second quarter due to the longer cash conversion cycle of the legacy Tyman business but continued execution on managing working capital enabled us to avoid being a net borrower for the quarter.

接著談現金流與資產負債表。2026會計年度第二季營業活動提供的現金為1,890萬美元，對比2025會計年度第二季的2,850萬美元。2026年第二季自由現金流為790萬美元，對比2025年第二季的1,360萬美元。由於傳統Tyman業務的現金轉換週期較長，我們原預期第二季將為淨借款方，但持續執行營運資金管理使我們得以避免本季成為淨借款方。

For context, we were a net borrower of almost $19 million in Q2 of last year. Our liquidity was $328.6 million as of April 30, 2026, consisting of $63.7 million in cash on hand plus availability under our senior secured revolving credit facility due 2029, less letters of credit outstanding.

作為參考，去年第二季我們的淨借款接近1,900萬美元。截至2026年4月30日，我們的流動性為3.286億美元，包括6,370萬美元的手頭現金，加上2029年到期之優先擔保循環信貸額度的可用額度，並扣除已開立未到期的信用狀。

As of April 30, 2026, our leverage ratio of net debt to last 12 months adjusted EBITDA was 3.1 times. We expected our leverage ratio to increase in Q2, but we continue to believe we will exit 2026 with a lower net leverage ratio as we generate cash and repay debt in the second half.

截至2026年4月30日，我們的槓桿比率（淨負債／過去12個月調整後EBITDA）為3.1倍。我們原預期第二季槓桿比率會上升，但我們仍相信，隨著下半年產生現金並償還債務，我們將在2026年結束時以較低的淨槓桿比率收官。

Our long-term view continues to be favorable as the underlying fundamentals for the residential housing market remain positive. We entered fiscal 2026 with a cautious outlook due to the ongoing macroeconomic challenges and remain cautious considering the current geopolitical events. We continue to monitor the situation in the Middle East, which is contributing to a significant impact on the price of raw materials, energy and transportation costs.

從長期來看，我們的觀點仍偏正面，因住宅房市的基本面依然良好。由於持續的總體經濟挑戰，我們以審慎展望進入2026會計年度；考量目前地緣政治事件，我們仍維持審慎。我們持續關注中東局勢，該局勢正對原物料、能源與運輸成本價格造成顯著影響。

During our last earnings call in March, we mentioned that fiscal 2026 could be somewhat flat compared to fiscal 2025 with puts and takes, but that the first half of 2026 may be more challenged than the first half of 2025, implying a somewhat improved second half year-over-year. Since that time, inflationary pressures have increased and the broader uncertainty related to geopolitical developments, consumer confidence, interest rates, and tariffs has reduced visibility into the balance of the year. Accordingly, we are not reaffirming our previously issued guidance for fiscal 2026 at this time. However, we will provide our expectations for the current quarter.

在3月上次法說會中，我們提到2026會計年度相較2025會計年度可能在各項正負因素拉鋸下大致持平，但2026年上半年可能比2025年上半年更具挑戰，意味著下半年年對年可能有所改善。自那之後，通膨壓力升高，且與地緣政治發展、消費者信心、利率與關稅相關的更廣泛不確定性，降低了我們對今年剩餘期間的能見度。因此，我們目前不再重申先前發布的2026會計年度財測指引。不過，我們將提供對本季的預期。

Please use the following cadence for the third quarter of 2026 versus the third quarter of 2025. On a consolidated basis, we expect revenue to be flat to up 1% and adjusted EBITDA margin is expected to be flat to up 25 basis points. In addition, an estimated tax rate of approximately 24% should be reasonable for the third quarter of 2026. As always, we will stay focused on the things that we can control with near-term emphasis on generating cash to reduce debt while opportunistically repurchasing our stock and identifying further operational synergies that can benefit us when the economic conditions improve.

請以下列節奏看待2026年第三季相較2025年第三季。在合併基礎上，我們預期營收持平至成長1%，調整後EBITDA利潤率預期持平至上升25個基點。此外，2026年第三季估計稅率約24%應屬合理。一如既往，我們將專注於可控事項，短期重點在於創造現金以降低負債，同時把握機會回購股票，並辨識更多營運協同效益，以在經濟情勢改善時受益。

Operator, we are now ready for questions.

接線員，我們現在準備開始提問。

(Operator Instructions) Steven Ramsey, Thompson Research Group.

（接線員指示）Steven Ramsey，Thompson Research Group。

Maybe I wanted to start with, if you could elaborate a little bit further on the index pass-through timing in North America, how it impacts the various segments? And maybe how it is embedded in the Q3 outlook and if more of the benefits are after the third quarter?

我想先從北美的指數轉嫁（index pass-through）時點談起，能否再多說明一些它如何影響各個事業部門？以及它如何反映在第三季展望中，是否更多的效益會在第三季之後才顯現？

Yes. So as we mentioned, as price increases come in, and I'm going to talk specifically about the ones that have material index -- automatic indexes, the raw materials that are on the index pricing mechanisms. We tend to review those on a quarterly basis. So if you've got any inflation that occurs within that quarter will either trigger up or down, and in this case, up an index. But until those quarterly review points, we tend to either get the benefit or in this case, take the brunt of any inflation. And then when it triggers, obviously, the pricing goes through at that point in time.

好的。正如我們提到的，當價格上調發生時——我會特別談那些具有實質影響的指數，也就是自動指數機制、採用指數定價機制的原物料——我們通常按季檢視。因此，若該季內出現任何通膨，會在指數上觸發上調或下調；而在本案中是上調。但在到達每季檢視點之前，我們往往會先享受到好處，或在這種情況下先承受通膨的衝擊。當觸發條件成立時，定價就會在那個時間點轉嫁出去。

So you could have anywhere from a 90 to maybe a 2-day lag depending on when in the cycle, the price increases go. That tends to be different based on the type of commodity and the customer contract. Those tend to be negotiated. As it relates to our Q3 and Q4 outlook, what we're assuming right now is that the pricing that we're at today remains somewhat stable and that those price increases that have triggered were going in. So we're assuming no more additional inflation or decrease inflation.

因此，依價格上調發生在週期中的時間點不同，可能會有90天到甚至2天不等的落後期。這也會因商品類型與客戶合約而異，通常是協商而來。就我們對第三季與第四季的展望而言，我們目前的假設是：現行價格水準大致維持穩定，且已觸發的那些漲價正在落地。因此，我們假設不會再有額外通膨上升，或通膨下降。

And the challenge and what we tried to say in our commentary is lack of visibility on what is happening from a macro perspective and in the geopolitical influences we just have no visibility. So we're in a chase mode here, and that's going to continue. So -- our forecast assumes no price increases, but your forecaster at this point is probably as accurate as anyone because no one knows.

而挑戰在於——也是我們在評論中想表達的——從總體面與地緣政治影響來看，正在發生什麼我們缺乏能見度，幾乎沒有可見性。因此我們現在處於追趕模式，且這種情況會持續。所以——我們的預測假設沒有進一步漲價，但此刻你的預測大概跟任何人一樣準，因為沒有人知道。

Okay. That's helpful. And then you discussed the volumes in total and by segment in the quarter. Do you feel like there was any market share shift in any of your larger product categories? Or do you feel like volumes were overall aligned with the market?

了解，這很有幫助。接著你們談到本季整體及分部的出貨量。你們覺得在某些較大的產品類別中，是否出現任何市占率變動？還是你們覺得出貨量整體上與市場表現一致？

I think there's puts and takes in the hardware section, where we've gained some share and then we've had pressure on share. It depends on the product line. I think -- the area where we benefited is, we've taken some share where there's been some strategy changes amongst our customers in outsourcing additional materials on the Custom Solutions segment, specifically within the wood product lines where we've actually been a winner.

我認為在五金（hardware）領域有一些正負因素：我們在某些地方取得一些市占，但也在某些地方承受市占壓力，取決於產品線。我想——我們受益的領域是：在客戶策略調整、將更多材料外包到客製化解決方案部門時，我們取得了一些市占；特別是在木製品產品線中，我們實際上是贏家。

Otherwise, I would say that the supply chain is relatively stabilized, and there's not a lot of people out in today's world. Really looking to rattle their supply chain because of the risks and the ability to supply. So I think you tend to see the supply base kind of retrenched and trenched in, and that's what we've seen to this point.

除此之外，我會說供應鏈相對已趨於穩定，而在當前環境下，真正想要大幅擾動其供應鏈的人不多，因為存在風險以及供應能力的考量。因此我認為你會看到供應基礎有點收縮並固守既有配置，而這也是我們目前所看到的情況。

Okay. Sounds good. And last quick one for me. Last year, we saw fourth quarter EBITDA margin edge up a bit over the third quarter. Is that directionally the way to think about fourth-quarter EBITDA margin?

好的，聽起來不錯。最後一個快問：去年我們看到第四季EBITDA利潤率比第三季略有上升。就方向性而言，第四季EBITDA利潤率也可以這樣看待嗎？

Yes. I think, right now that's a fair assumption mainly because these price increases that are stepping in during the third quarter, we should get the full benefit in the fourth quarter.

是的。我認為以目前來看，這是合理的假設，主要因為第三季開始生效的這些漲價，我們應該會在第四季獲得完整效益。

And the other thing to add to that, as I mentioned in my commentary, last year was a little bit of an aberration that the Q3 volumes actually kind of flattened out, which wasn't normal seasonality. Typically, we see Q3 ramping up and then Q4 being our strongest volume month. So Q3 last year was a little flat and then Q4 started to bounce up. We would -- if we see normal seasonality, we would expect margins to improve just because of the leverage aspect of some of our business volumes will drive profitability.

另外補充一點，如我在評論中提到的，去年有點反常：第三季出貨量其實有點趨於持平，這並非正常季節性。通常我們會看到第三季逐步走高，而第四季是我們出貨量最強的月份。因此去年第三季有點平，第四季才開始回升。我們會——如果看到正常季節性，我們預期利潤率會改善，因為部分業務的出貨量所帶來的槓桿效應將推動獲利能力。

Kevin Gainey, Thompson Davidson Company.

Kevin Gainey，Thompson Davidson Company。

It's Kevin on for Adam. Maybe if we could talk on as per last year, in the back half, you generated about $100 million. Should we expect maybe that capability in the second half? Or is the inflation going to have a sizable impact to that?

我是Kevin，代Adam提問。或許我們可以談談：相較去年，你們在下半年創造了約1億美元。第二半年度我們是否也應該預期有那樣的能力？還是通膨會對此造成顯著影響？

We definitely expect to generate most of our cash in the second half of this year. That's no different than any other year. To the extent and the magnitude of the cash flow that will depend on several things, one of which is the rate of inflation that we've seen. And then obviously, we need to expect volumes to increase due to the seasonality of our business. But the other thing that we're doing that will help cash flow is, and we saw that in the -- at the end of the second quarter is, we are making a meaningful improvement in the inventory levels coming down, and we expect that to continue, which should help cash flow as well.

我們確實預期今年大部分現金將在下半年產生。這與任何其他年度並無不同。至於現金流的程度與規模，將取決於幾項因素，其中之一是我們所看到的通膨率。然後很明顯地，我們也預期因業務季節性而帶動出貨量增加。不過，另一項我們正在做、也將有助於現金流的事情是——我們在第二季末已經看到——我們正在大幅改善庫存水位、讓庫存下降，並預期這個趨勢會持續，這也應該會有助於現金流。

Appreciate the color there. And then you mentioned in the release paying down debt and opportunistically repurchasing shares in the second half. How do you expect the target between the 2? And then how attractive are buybacks kind of at the current levels in your model?

感謝你提供這些細節。接著你在新聞稿中提到，下半年會償還債務並伺機回購股票。你預期這兩者之間的目標配置會如何？另外，以你們模型來看，在目前價位下回購的吸引力如何？

So I think you can assume that our priority will absolutely be to pay down debt. We'll evaluate the price. We obviously believe our stock is trading at a discount. We'll continue to look at it. But the impact -- the math and the impact for us on buying or paying down debt at this point is more influential for our investor base than repurchasing shares.

我想你可以假設，我們的優先順序絕對會是先償還債務。我們會評估股價。我們當然認為公司股票目前以折價交易，我們會持續關注。但就目前而言，對我們來說，買回股票或償還債務在數學計算與影響上，償還債務對我們投資人基礎的影響力，比回購股票更大。

So that's the prioritization of that for us. I think you can assume the paydown of debt will come first.

所以這就是我們的優先排序。我想你可以假設，償還債務會先於其他事項。

Julio Romero, Sidoti & Company.

Julio Romero，Sidoti & Company。

The release and your comments also called out the increase in transportation costs in the quarter alongside the increased material costs. Can you maybe put a little finer point on the impact of that increase in the quarter? And if that's related to higher freight rates or fuel surcharges or expedited freight? And then how does that trend in the third quarter in your view?

新聞稿與你們的評論也提到，本季運輸成本上升，且與材料成本上升同時發生。你能否更精確地說明這項上升在本季的影響？以及這是否與較高的運費、燃油附加費或加急運輸有關？另外，以你的觀點，第三季這個趨勢會如何？

Yes. We haven't given clarity on breaking that out from a dollar amount, but I can generally speak, it's impacted us in two ways. Obviously, the fuel cost and the cost of energy, I mean, almost every company has levied surcharges, fuel surcharges to offset the ramp-up specifically after the war in the Middle East started. So that has taken a pretty immediate and rather rapid tool. And we're doing the same to try to offset it, but it's always a catch up.

是的。我們尚未就金額拆分提供明確數字，但我可以概括說明，它以兩種方式影響我們。首先，燃油成本與能源成本——幾乎每家公司都加收附加費、燃油附加費，以抵銷中東戰爭爆發後特別快速上升的成本。因此這帶來相當即時且快速的影響。我們也在做同樣的事來嘗試抵銷，但通常都會有追趕的落差。

And then secondly, especially on our international, we ship products to all over the world. And whether that's from the US, whether it's from the UK, or whether it's from Italy, and depending on the locations. So for the products that go to our warehouse in Dubai and service the GCC region, obviously, getting product through the Strait of Hormuz is not feasible at this point. So you have to create different logistics chains that are significantly more expensive, increase the time to get and impact the ability to ensure and protect those shipments.

第二，特別是在我們的國際業務上，我們把產品運往全球各地。不論是從美國、英國或義大利出貨，都取決於目的地。因此，對於運往杜拜倉庫、並服務海灣阿拉伯國家合作委員會（GCC）地區的產品而言，目前顯然無法經由荷姆茲海峽運輸。所以你必須建立不同的物流鏈，成本顯著更高、運輸時間拉長，並且影響到確保與保障這些貨運的能力。

So it's impacted us in two different ways.

所以它以兩種不同方式影響我們。

Understood. You also recently appointed a new President of Hardware Solutions in April. Can you maybe discuss what is more immediate priorities are for the Hardware Solutions segment? Where on that priority list is that transition you mentioned from the made-to-stock product lines to the made-to-order product lines? And then where his longer-term focus for the segment is?

了解。你們在四月也任命了新的 Hardware Solutions 總裁。你能否談談他對 Hardware Solutions 事業部較即時的優先事項是什麼？在這份優先清單中，你提到從備貨生產（made-to-stock）產品線轉向接單生產（made-to-order）產品線的轉型，排在什麼位置？另外，他對該事業部的長期重點會是什麼？

I appreciate the question, and it gives me the opportunity, first and foremost, to thank Bob Daniels, who will be retiring at the end of the year. Bob has been with Quanex for a long time and had announced his intention to retire even at the point when we purchased time. And so this was a planned upon move.

感謝這個問題，也讓我有機會首先感謝 Bob Daniels，他將在年底退休。Bob 在 Quanex 任職很長一段時間，甚至在我們收購 Time 的時候，他就已宣布有意退休。因此這是一項事先規劃好的安排。

And then adding Chad Collins to that position, we felt like it continued to strengthen the areas that we felt needed to be strengthened, not only he is a phenomenal businessman and can add value to the entire Quanex, but his background in looking at how we go to market and how we engineer products very much the focus on an 80-20 principle to streamline and really optimize the cost footprint of our organization, identifying what SKUs actually generate revenue and making sure that we're focused on doing those right things.

而讓 Chad Collins 接任該職位，我們認為這能持續強化我們覺得需要加強的領域。他不僅是一位非常出色的經營者，能為整個 Quanex 創造價值；他的背景也涵蓋我們如何進入市場、以及如何進行產品工程設計，並非常聚焦於 80/20 原則，以精簡流程並真正最佳化組織的成本結構，辨識哪些 SKU 真正帶來營收，並確保我們專注在把正確的事情做好。

We were very excited to get him. He's already been able to come in and identify opportunities, which we kind of highlighted and its full systems go. So I think the future is bright for that group and look forward to being able to talk more about what he's doing in those areas going forward. So he came into Quanex and has hit the ground running.

我們非常高興能延攬他。他已經能進來並辨識出一些機會，我們也在先前稍作提及，現在已全力推進。所以我認為這個團隊的未來很光明，也期待未來能更進一步分享他在這些領域所做的事情。他加入 Quanex 後很快就上手並迅速展開工作。

Excellent. Last one for me here is for George. On the index pricing kind of a broader strategic question, are there longer-term opportunities or thoughts on improving or changing the terms on the contractual mechanisms over time, whether it be with the duration of the lag? Or how much the underlying material cost has to change before being triggered? Would just love to hear your high-level thoughts on that topic there, George.

很好。我最後一題想問 George。關於指數定價，這算是比較宏觀的策略問題：長期來看，是否有機會或想法去改善或調整合約機制的條款，例如調整落後期（lag）的長度？或是底層材料成本需要變動多少才會觸發調價？很想聽聽你對這個主題的高層次看法，George。

Yes. It's a great question, Julio. And so I would say, every contract in today's world is being reviewed to say is that's still adequate and still doing what it's meant to do. And have things shifted to where the contract needs to change. So yes, we will evaluate each and every one of them.

是的。這是個很好的問題，Julio。我會說，在當今環境下，每一份合約都在被重新檢視：它是否仍然足夠、是否仍能達成原本設計的目的？以及環境是否已改變到需要調整合約條款。因此，是的，我們會逐一評估每一份合約。

I think it very much depends on the product line, our competitive positioning within that segment. So rather vague answer for you, Julio, and for that, I'm sorry, but the answer is yes, but it's very dependent and situational based.

我認為這很大程度取決於產品線，以及我們在該細分市場中的競爭定位。所以這個回答對你來說可能有點籠統，Julio，對此我抱歉；答案是會，但非常依賴具體情境與個案。

But the world is different today. And I think that, that's us and every other company in the world are looking at everything with a new set of lenses and we'll continue to evaluate ways to to be -- create win-win solutions for both us and for our customers.

但今天的世界已經不同了。我認為我們以及全球其他公司，都在用一套新的視角檢視所有事情，並會持續評估各種方式，為我們與客戶創造雙贏的解決方案。

Reuben Garner, Benchmark Company.

Reuben Garner，Benchmark Company。

This is John on for Ruben. So pretty thorough Q&A so far today. Just one quick one left for me. I know last quarter, we had talked about how you were seeing some opportunities for increased sales and volumes in Custom Solutions, especially with reshoring and nearshoring trends. Just now that we're a little bit further out from the tariff decisions and maybe a little bit more clarity on how those refunds are going.

我是 John，代 Ruben 提問。今天到目前為止的問答已相當完整。我這邊只剩一個簡短問題。我記得上季我們談到，你們在 Custom Solutions 看到一些提高銷售與出貨量的機會，特別是因為回流生產（reshoring）與近岸外包（nearshoring）的趨勢。現在距離關稅決策又過了一段時間，對於退款進度也可能更清楚一些。

I understand a lot of it comes -- it's a long tail as far as the decisions that have to be made on how your customers are manufacturing elsewhere. But are you seeing any shift in kind of strategy or maybe the long-term decisions to even move more manufacturing back closer to the US to your operations yet?

我理解其中很多是長尾效應，因為客戶需要時間決定要如何在其他地區進行製造。但你們是否已看到策略上有任何轉變？或是長期決策上，是否有更多製造開始移回更靠近美國、也更靠近你們營運據點的趨勢？

So I think the answer to that would be, it depends on the customer and their strategy. With the custom -- or the kitchen cabinet and the bathroom cabinet markets, there's continued consolidation in that area. I think there will be a pause to see where the merger of two of the big players, what their go-forward strategy will be looking like. But the other customers in that market -- we have seen some areas where there is in-sourcing. And as you can see in our numbers and what we called out, we had in what is a relatively soft or even a down market for the cabinets. We grew volumes year-over-year despite that fact.

我認為答案是：取決於客戶及其策略。在客製化——或廚房櫥櫃與浴室櫥櫃市場方面，該領域仍在持續整併。我認為市場會先暫停觀望兩家大型業者合併後的後續策略會是什麼。但在該市場的其他客戶——我們確實看到一些內製（in-sourcing）的情況。正如你從我們的數字以及我們提到的重點所看到的，在櫥櫃市場相對疲弱、甚至下滑的情況下，我們的出貨量仍然年增。

So it's obvious we've taken some share and have been able to successfully sell our value proposition to those customers. And I think our focus will be to continue to do that. And I feel good about what that product line is doing for us. And we'll continue to push and try to optimize that in every way we can. But I feel good about what the team and the wood components is doing.

所以很明顯我們取得了一些市占，並成功向這些客戶傳達並銷售我們的價值主張。我認為我們的重點會是持續這麼做。我對這條產品線為我們帶來的表現感到樂觀，我們也會持續推進，並盡可能在各方面加以最佳化。但我對團隊以及木質零組件業務的表現感到很有信心。

I would now like to turn the call back over to George Wilson for any closing remarks.

現在我想把電話交回給 George Wilson，請他做結語。

I'd like to thank you all for joining the call today, and we look forward to providing an update in our call in September. Thank you very much.

感謝各位今天參與電話會議，我們期待在九月的電話會議中提供最新進展。非常感謝。

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

謝謝。本次電話會議到此結束。感謝各位的參與。您現在可以掛線。