Simpson Manufacturing Co Inc (SSD) 2025 Q1 法說會逐字稿

Greetings and welcome to the Simpson Manufacturing Co. Inc. first-quarter 2025 earnings conference call. (Operator Instructions)

問候並歡迎參加辛普森製造公司 2025 年第一季財報電話會議。（操作員指示）

It is now my pleasure to introduce your host, Kim Orlando, with Investor Relations. Thank you, Kim. You may begin.

現在我很高興向大家介紹投資者關係部門的主持人 Kim Orlando。謝謝你，金。你可以開始了。

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's first-quarter 2025 earnings conference call. Any statements made on this call that are not statements of historical facts are forward-looking statements. Such statements are based on certain estimates and expectations and are subject to a number of risks and uncertainties. Actual or future results may vary materially from those expressed or implied by the forward-looking statements.

女士們、先生們，下午好，歡迎參加辛普森製造公司 2025 年第一季財報電話會議。本次電話會議中所做的任何非歷史事實陳述均為前瞻性陳述。此類聲明是基於某些估計和預期，並受許多風險和不確定性的影響。實際或未來的結果可能與前瞻性陳述所表達或暗示的結果有重大差異。

We encourage you to read the risks described in the company's public filings and reports which are available on the SECs or the company's corporate website. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that we make here today, whether as a result of new information, future events, or otherwise.

我們鼓勵您閱讀該公司在美國證券交易委員會或公司網站上提供的公開文件和報告中所描述的風險。除適用證券法要求的範圍外，我們不承擔更新或公開修改我們今天在此做出的任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

On this call, we will also refer to non-GAAP measures such as adjusted EBITDA, which is reconciled to the most comparable GAAP measure of net income in the company's earnings press release.

在本次電話會議上，我們也將參考非 GAAP 指標，例如調整後的 EBITDA，該指標與公司收益新聞稿中最可比較的 GAAP 淨收入指標相協調。

Please note that the earnings press release was issued today at approximately 4:15 PM Eastern time. The earnings press release is available on the Investor Relations page of the company's website at ir.simpsonmfg.com.Today's call is being webcast and a replay will also be available on the Investor Relations page of the company's website.

請注意，收益新聞稿於今天東部時間下午 4:15 左右發布。收益新聞稿可在公司網站 ir.simpsonmfg.com 的投資者關係頁面上查閱。今天的電話會議將進行網路直播，重播也將在公司網站的投資者關係頁面上提供。

Now, I would like to turn the conference over to Mike Olosky, Simpson's President and Chief Executive Officer.

現在，我想將會議交給辛普森總裁兼執行長 Mike Olosky。

Thanks, Kim. Good afternoon, everyone, and thank you for joining today's call. With me today is Matt Dunn, our Chief Financial Officer.

謝謝，金。大家下午好，感謝大家參加今天的電話會議。今天和我一起的是我們的財務長馬特鄧恩 (Matt Dunn)。

Today, my remarks will provide an overview of our first-quarter performance and highlights from our end markets. Matt will then walk you through our financials and fiscal 2025 outlook in greater detail.

今天，我將概述我們第一季的業績以及終端市場的亮點。然後，馬特將向您更詳細地介紹我們的財務狀況和 2025 財年展望。

Now turning to our results, our net sales of $538.9 million reflected modest growth over the prior year in a highly uncertain macroeconomic environment in both the US and Europe. Over the past 12 months, I'm pleased to report that our buying performance in North America once again exceeded US housing starts by approximately 420 basis points.

現在來看看我們的業績，在美國和歐洲高度不確定的宏觀經濟環境下，我們的淨銷售額 5.389 億美元較上年同期實現了溫和成長。在過去的12個月中，我很高興地報告，我們在北美的購買業績再次超過美國新屋開工量約420個基點。

Net sales in North America totaled $420.7 million, up 3.4% from $406.7 million last year. Results included a contribution of roughly $9 million from our 2024 acquisitions and a favorable comparison to prior-year net sales, which were negatively affected by the timing of volume discount estimates. Collectively, these items more than offset a modest decline in our volumes. Absent these factors, North American sales were relatively flat year over year. As a reminder, software, services, and equipment are not included in our volume calculations.

北美淨銷售額總計 4.207 億美元，較去年的 4.067 億美元成長 3.4%。結果包括我們 2024 年收購帶來的約 900 萬美元的貢獻，以及與去年淨銷售額相比的良好表現，但受到批量折扣估算時間的負面影響。總的來說，這些項目足以抵消我們銷量的小幅下降。如果沒有這些因素，北美的銷售額比去年同期基本持平。提醒一下，軟體、服務和設備不包括在我們的數量計算中。

Our North American volume results were mixed in the first quarter, though sales to all end markets continue to demonstrate above market growth on a trailing 12-month basis.

第一季度，我們的北美銷售業績好壞參半，但過去 12 個月所有終端市場的銷售額持續呈現高於市場的成長。

In the component manufacturing market, volumes declined slightly versus last year. We saw solid results from our acquisition of Calculated Structure Designs and made progress aligning operations and sales to prepare for the scalability of our broadened digital solutions offering.

在零件製造市場，銷量與去年相比略有下降。我們從收購 Calculated Structure Designs 中看到了堅實的成果，並在協調營運和銷售方面取得了進展，為我們擴大的數位解決方案產品的可擴展性做好了準備。

We continue to execute our digital solutions road maps to satisfy key component manufacturing customers and leverage our equipment offering to reach opportunities in this market. This has resulted in the conversion of several small- to mid-sized truss manufacturing customers in the first quarter.

我們將繼續執行我們的數位解決方案路線圖，以滿足關鍵零件製造客戶的需求，並利用我們提供的設備來抓住這個市場的機會。這導致第一季幾家中小型桁架製造客戶轉型。

In residential, volume performance was down modestly. We continue to focus on conversions and line expansions while also deepening builder partnerships through professional services, digital solutions, and equipment. Additionally, our outdoor living category had low-double-digit growth of a prior year, showing a strong start to the spring building season. We attribute this to our growing product offering and intentional marketing sales efforts to reach pro and DIY customers.

在住宅領域，銷量表現略有下降。我們繼續專注於轉換和產品線擴展，同時透過專業服務、數位解決方案和設備深化與建築商的合作夥伴關係。此外，我們的戶外生活類別比去年實現了低兩位數的成長，顯示出春季建築季節的強勁開局。我們將此歸功於我們不斷增長的產品供應和有意識的營銷銷售努力，以接觸專業和 DIY 客戶。

The national retail market saw mid-single-digit decreases. We offset a slow market by driving growth in e-commerce, new anchor product listings introduced last year, and additional retail space gained in our two largest retailers.

全國零售市場出現中等個位數的跌幅。我們透過推動電子商務的成長、去年推出的新的主導產品清單以及在我們兩家最大的零售商處增加的零售空間來抵消市場放緩的影響。

In OEM, we delivered high-single-digit volume growth year over year with strong sales growth and mass timber and off-site construction solutions. OEM remains a relatively small contributor to our overall revenue with significant opportunity for share gains.

在 OEM 領域，我們憑藉強勁的銷售成長以及大規模木材和異地施工解決方案實現了高個位數的銷售量同比增長。OEM 對我們的整體營收貢獻仍然相對較小，但仍有很大的市佔率成長機會。

And finally, in the commercial market, we improved volumes broadly across the business resulting in low-single-digit growth over last year despite a challenging commercial market. This momentum was driven by the strong performance of our anchor and cold-formed steel product lines.

最後，在商業市場，儘管商業市場充滿挑戰，但我們的業務量仍然全面提高，比去年實現了低個位數成長。這一勢頭是由我們的錨固和冷彎型鋼產品線的強勁表現所推動的。

Turning to Europe, our net sales of $113.9 million decreased 5.1% compared to prior year and decreased by $1.3 million on a local currency basis. On a volume basis, we believe our European businesses continue to outperform the local markets, supported by new applications and customer wins. Consolidated gross margin modestly improved to 46.8% from 46.1% in Q1 2024 despite higher input and labor costs.

轉向歐洲，我們的淨銷售額為 1.139 億美元，比上年下降 5.1%，以當地貨幣計算下降 130 萬美元。從銷售來看，我們相信，在新的應用和客戶支援下，我們的歐洲業務將繼續優於當地市場。儘管投入和勞動成本增加，但綜合毛利率仍從 2024 年第一季的 46.1% 小幅改善至 46.8%。

Additionally, the timing of volume discount estimates just discussed had an unfavorable impact in the prior year. When excluding this factor, gross margin would have been relatively flat year on year. Further product and customer mix have and will continue to be a gross margin headwind.

此外，剛剛討論的批量折扣估算時間對上一年產生了不利影響。若排除該因素，毛利率年比將基本持平。進一步的產品和客戶組合已經並將繼續成為毛利率的阻力。

Next, I'd like to take a moment to discuss some recent pricing dynamics in the marketplace. As previously announced in early April, we implemented target price increases at a weighted average rate of approximately 8% across certain wood connectors, fasteners, and mechanical anchor products in the US. Since our last pricing change, which was a decrease a few years back, we have experienced significant increases in our cost from our cost of goods to labor, energy, transportation, and equipment.

接下來，我想花點時間討論市場上最近的一些定價動態。正如 4 月初宣布的那樣，我們對美國某些木質連接件、緊固件和機械錨固產品實施了約 8% 的加權平均目標價格上調。自從我們上次調整價格（幾年前降低）以來，我們的成本從商品成本到勞動力、能源、運輸和設備成本都大幅增加。

Additionally, while we are largely domestically sourced, we procure fasteners and a limited number of other products from countries that are subject to the recent announced tariffs. Accordingly, the price increases were an effort to offset both rising costs across non-material and material categories, as well as a portion related to the current trade policy actions. The increases will go into effect on June 2 following a 60-day notice period to our customers.

此外，雖然我們的產品主要來自國內，但我們也從受最近宣布的關稅影響的國家採購緊固件和有限數量的其他產品。因此，價格上漲是為了抵消非材料和材料類別成本的上漲，以及與當前貿易政策行動相關的部分成本。在向客戶發出 60 天通知期後，此次漲價將於 6 月 2 日生效。

We understand that rising prices are especially challenging in a construction market where affordability remains a key concern. Therefore, we have and will continue to minimize additional increases. These price increases combined with strong cost discipline and productivity improvements will help us generally maintain our current gross margins and make selective investments to provide even better customer service.

我們明白，價格上漲對建築市場來說尤其具有挑戰性，因為負擔能力仍然是一個關鍵問題。因此，我們已經並將繼續盡量減少額外增加。這些價格上漲加上嚴格的成本控制和生產力提高將有助於我們整體上維持當前的毛利率，並進行選擇性投資以提供更好的客戶服務。

Our first-quarter operating margin expanded by 90 basis points to 19% over the last year, reflecting investments that were more commiserate with our volumes and overall market performance in 2025. Consolidated adjusted EBITDA totaled $121.8 million, an increase of 3.8% year over year. Looking ahead, we will remain disciplined in cost management to protect our margins while prioritizing the retention of our valued customers and highly skilled workforce to support long-term execution.

我們第一季的營業利潤率比去年同期擴大了 90 個基點，達到 19%，這反映出我們的投資與我們的銷售量和 2025 年的整體市場表現更為匹配。合併調整後 EBITDA 總計 1.218 億美元，年增 3.8%。展望未來，我們將繼續嚴格成本管理，以保護我們的利潤率，同時優先保留我們尊貴的客戶和高技能員工，以支持長期執行。

Next, I'd like to highlight our strategic growth plan in the context of our three financial ambitions, which are: continuing above-market growth relative to US housing starts, maintaining an operating income margin at or above 20%, and driving EPS growth ahead of net revenue growth. We believe our business can deliver a 20% operating margin in a growing market environment.

接下來，我想根據我們的三個財務目標來強調我們的策略成長計劃，這三個財務目標分別是：相對於美國新屋開工量繼續保持高於市場的增長速度，保持營業收入利潤率在 20% 或以上，並推動每股收益增長超過淨收入增長。我們相信，在不斷增長的市場環境下，我們的業務可以實現 20% 的營業利潤率。

For 2025, our outlook for US housing starts is to remain flat to up in the low-single-digit range from 2024 levels, with growth weighted towards the second half of the year. In Europe, housing starts are expected to remain broadly in line with 2024, with more substantial recovery anticipated in 2026 and beyond. As a growth-focused company with industry leading margins, we believe we can consistently drive EPS growth ahead of net revenue growth.

對於 2025 年，我們預測美國新屋開工量將與 2024 年持平，或在低個位數範圍內成長，且成長主要集中在下半年。在歐洲，預計新屋開工量將與 2024 年基本持平，預計 2026 年及以後將出現更大幅的復甦。作為一家專注於成長且利潤率在行業領先的公司，我們相信我們可以持續推動每股收益成長超過淨收入成長。

We also remain committed to returning at least 35% of our free cash flow to shareholders, reinforcing our balanced approach to capital allocation.

我們也將繼續致力於將至少 35% 的自由現金流返還給股東，以強化我們平衡的資本配置方法。

Before I conclude, I'm proud to share that both customer and employee engagement remains strong, as evidenced by recent survey results showing high levels of satisfaction and connection across both groups. These findings reflect the success of our strategy to inspire our employees and relentlessly serve our customer while also advancing our first two company ambitions: strengthening our values-based culture and being the business partner of choice.

最後，我很自豪地告訴大家，客戶和員工的參與度依然強勁，最近的調查結果顯示，這兩個群體的滿意度和聯繫度都很高。這些發現反映了我們激勵員工、堅持不懈地服務客戶的策略的成功，同時也推進了我們公司的前兩個目標：加強基於價值觀的文化並成為首選的業務合作夥伴。

In summary, we were pleased to deliver above-market growth in a challenging environment. Our focus on cost discipline while improving our position in diversified end markets has strengthened our business through the cycle, particularly in a soft housing market. We remain confident in the mid- to long-term housing outlook and believe Simpson is well positioned to capitalize on future growth.

總而言之，我們很高興在充滿挑戰的環境中實現高於市場的成長。我們注重成本控制，同時提高我們在多元化終端市場的地位，這在整個週期中增強了我們的業務，特別是在疲軟的房地產市場中。我們對中長期住房前景仍然充滿信心，並相信辛普森已做好準備，利用未來的成長。

With that, I'd like to turn the call over to Matt, who will discuss our financial results and outlook in greater detail.

說到這裡，我想把電話轉給馬特，他將更詳細地討論我們的財務表現和前景。

Good afternoon, everyone. Thank you for joining us on our earnings call today. Before I begin, I'd like to mention that unless otherwise stated, all financial measures discussed in my prepared remarks refer to the first quarter of 2025, and all comparisons will be year-over-year comparisons versus the first quarter of 2024.

大家下午好。感謝您今天參加我們的收益電話會議。在開始之前，我想提一下，除非另有說明，我準備好的發言中討論的所有財務指標均指 2025 年第一季度，所有比較都將是與 2024 年第一季度進行的同比比較。

Now turning to our results, our consolidated net sales increased 1.6% year over year to $538.9 million. Within the North America segment, net sales increased 3.4% to $420.7 million, which includes approximately $1.5 million in negative foreign currency translation. In Europe, net sales declined 5.1% to $113.9 million, primarily due to the unfavorable effect of approximately $4 million in foreign currency translation.

現在來看看我們的業績，我們的綜合淨銷售額年增 1.6%，達到 5.389 億美元。在北美地區，淨銷售額成長 3.4% 至 4.207 億美元，其中包括約 150 萬美元的負外幣折算影響。在歐洲，淨銷售額下降 5.1% 至 1.139 億美元，主要由於約 400 萬美元的外幣折算帶來的不利影響。

Globally, wood construction product sales were up 1.7% and concrete construction product sales were down 1.3%. Consolidated gross profit increased 3.1% to $252 million, resulting in a gross margin of 46.8% compared to 46.1%. On a segment basis, our gross margin in North America was 50%, marginally higher than the 49.3% reported in the prior year due primarily to the timing of volume discounts adversely affecting net sales and gross profit in the prior year.

全球範圍內，木質建築產品銷售額成長1.7%，混凝土建築產品銷售額下降1.3%。綜合毛利成長 3.1% 至 2.52 億美元，毛利率由上年同期的 46.1% 升至 46.8%。以分部計算，我們在北美的毛利率為 50%，略高於上年的 49.3%，主要原因是批量折扣的時間對上年的淨銷售額和毛利產生了不利影響。

Without the benefit from the absence of these discounts, gross margins would have been flat. Our gross margin in Europe decreased to 35.2% from 36.5%, primarily due to higher factory and overhead, as well as labor and warehouse costs, which were partly offset by lower material costs, all as a percentage of net sales.

如果沒有這些折扣帶來的好處，毛利率將會持平。我們在歐洲的毛利率從 36.5% 下降至 35.2%，主要原因是工廠和管理費用以及勞動力和倉庫成本增加，但材料成本降低部分抵消了這些成本，所有這些成本佔淨銷售額的百分比都下降了。

From a product perspective, our first-quarter gross margin was relatively flat at 46% for wood products and was 49.5% for concrete products compared to 46.5%.

從產品角度來看，我們第一季木製品毛利率相對持平為46%，混凝土製品毛利率為49.5%，而木製品毛利率為46.5%。

Now turning to expenses, total Q1 operating expenses were $149.7 million, an increase of 2.1%, primarily due to higher personnel costs and variable compensation. As a percentage of net sales, Q1 2025 operating expenses were 27.8% compared to 27.6%. As Mike indicated, we have seen increases in our major input costs over the past several years.

現在談到費用，第一季總營運費用為 1.497 億美元，成長 2.1%，主要原因是人員成本和可變薪酬增加。佔淨銷售額的百分比為 27.8%，去年同期為 27.6%。正如麥克所指出的，過去幾年我們的主要投入成本有所增加。

Further, the current tariffs and trade policy coupled with a run-up in both non-material and material input costs led us to enact price increases on our products effective June 2, the impact of which will be partly reflected in our Q2 results.

此外，目前的關稅和貿易政策，加上非材料和材料投入成本的上漲，導致我們從 6 月 2 日起提高產品價格，其影響將部分反映在我們的第二季業績中。

In recognizing price increases are generally not welcomed, we have worked to minimize them as much as possible by passing on only a portion of the anticipated tariff impacts. Additionally, we are evaluating sourcing options to mitigate the potential effects of tariffs. We will continue to monitor the market in 2025, and we will be limiting incremental investments in the business until we see a more meaningful improvement in the housing market.

我們認識到價格上漲通常不受歡迎，因此我們努力透過僅轉嫁部分預期的關稅影響來盡可能減少價格上漲。此外，我們正在評估採購選擇，以減輕關稅的潛在影響。我們將繼續監測 2025 年的市場，並將限制對該業務的增量投資，直到我們看到房地產市場出現更有意義的改善。

To further detail our first quarter SG&A, our research and development and engineering expenses decreased 9.5% to $19.8 million, primarily due to a reorganization of our IT group, which resulted in the movement of approximately $3.4 million expense from R&D to general and administrative expense.

為了進一步詳細說明我們第一季的銷售、一般及行政費用，我們的研發和工程費用下降了 9.5% 至 1,980 萬美元，這主要是由於我們的 IT 部門重組，導致約 340 萬美元的費用從研發轉移到一般及行政費用。

Selling expenses decreased modestly by 0.6% to $54.2 million, primarily due to reduced personnel costs, which were partly offset by higher travel costs. On a segment basis, selling expenses in North America were up approximately 0.7%. In Europe, they were down approximately 5%. General and administrative expenses increased by 7.8% to $75.7 million, largely as a result of the reallocation of IT group expenses I just discussed and higher personnel costs of $3.9 million.

銷售費用小幅下降 0.6% 至 5,420 萬美元，主要原因是人員成本減少，但差旅費用增加部分抵消了這一減少。以分部計算，北美地區的銷售費用上漲了約 0.7%。在歐洲，銷量下降了約 5%。一般及行政開支增加 7.8% 至 7,570 萬美元，這主要是因為我剛才討論過的 IT 集團開支的重新分配以及人事成本增加 390 萬美元。

As a result, our first-quarter consolidated income from operations totaled $102.3 million, an increase of 6.5% from $96.1 million.

因此，我們的第一季綜合營業收入總計 1.023 億美元，較 9,610 萬美元成長 6.5%。

Our consolidated operating income margin was 19%, up from 18.1%. In North America, income from operations increased 5.4% to $104.2 million, primarily due to higher gross profit, which was partly offset by increased personnel costs and variable incentive compensation.

我們的綜合營業利益率為 19%，高於 18.1%。在北美，營業收入成長 5.4% 至 1.042 億美元，主要由於毛利增加，但部分被人事成本和可變激勵薪酬的增加所抵消。

In Europe, income from operations increased 12.7% to $9.3 million due to reduced operating expenses, including variable compensation costs. An operating income margin of 15% in Europe remains our mid-term goal. As a reminder, this target is predicated on various assumptions, including improved economic conditions and starts in Europe, the realization of [ostensive] synergies, the continuation of secular trends toward greater wood construction, and more stringent environmental regulations in Europe.

在歐洲，由於包括變動薪酬成本在內的營運費用減少，營業收入成長 12.7%，達到 930 萬美元。歐洲 15% 的營業收入利潤率仍然是我們的中期目標。提醒一下，這個目標是基於各種假設，包括歐洲經濟條件和開工率的改善、協同效應的實現、木結構建築長期趨勢的延續以及歐洲更嚴格的環境法規。

Our first-quarter effective tax rate was 25.5%, approximately 210 basis points above the prior-year period. Accordingly, net income totaled $77.9 million or $1.85 per fully diluted share compared to $75.4 million or $1.77 per fully diluted share. Adjusted EBITDA for the first quarter was $121.8 million, an increase of 3.8%, resulting in a margin of 22.6%.

我們第一季的有效稅率為25.5%，比去年同期高出約210個基點。因此，淨收入總計 7,790 萬美元或每股攤薄收益 1.85 美元，而去年同期為 7,540 萬美元或每股攤薄收益 1.77 美元。第一季調整後 EBITDA 為 1.218 億美元，成長 3.8%，利潤率為 22.6%。

Now turning to our balance sheet and cash flow. Our balance sheet remained healthy with cash and cash equivalents totaling $150.3 million at March 31, 2025, down $89.1 million from our balance at December 31, 2024, due primarily to capital investments and working capital increases. Our debt balance was approximately $379.8 million net of capitalized finance cost, and our net debt position was $229.5 million. We have $450 million remaining available for borrowing on our primary line of credit.

現在轉向我們的資產負債表和現金流。我們的資產負債表保持健康，截至 2025 年 3 月 31 日的現金和現金等價物總額為 1.503 億美元，比 2024 年 12 月 31 日的餘額減少 8,910 萬美元，主要原因是資本投資和營運資本增加。我們的債務餘額扣除資本化融資成本後約為 3.798 億美元，淨債務狀況為 2.295 億美元。我們的主要信用額度還有 4.5 億美元可供借貸。

Our inventory position as of March 31, 2025, was $618.8 million, which was up $25.6 million compared to our balance as of December 31, 2024, mostly as a result of the higher price per pound from inventory on hand. Overall pounds in inventory were mostly flat.

截至 2025 年 3 月 31 日，我們的庫存狀況為 6.188 億美元，與 2024 年 12 月 31 日的餘額相比增加了 2560 萬美元，主要是因為現有庫存每磅價格較高。庫存整體磅數基本持平。

We generated cash flow from operations of $7.6 million for the first quarter. With regard to capital allocation, our discipline strategy remains focused on both growth and shareholder returns. In the first quarter, we invested $50.5 million for capital expenditures, including our investments for facility upgrades and expansions, paid $11.7 million in dividends to our stockholders, and paid down $6.8 million in debt.

我們第一季的經營現金流為 760 萬美元。在資本配置方面，我們的紀律策略仍注重成長和股東回報。第一季度，我們投資了 5,050 萬美元用於資本支出，包括設施升級和擴建的投資，向股東支付了 1,170 萬美元的股息，並償還了 680 萬美元的債務。

In addition, we repurchased 146,640 shares of common stock at an average price of $170.48 per share for a total of $25 million. As of March 31, $75 million remained available for repurchases through year-end 2025 under our $100 million authorization.

此外，我們也以每股 170.48 美元的平均價格回購了 146,640 股普通股，總計 2,500 萬美元。截至 3 月 31 日，根據我們 1 億美元的授權，仍有 7,500 萬美元可供回購，直至 2025 年底。

In regard to our growth investments, both the Columbus, Ohio and Gallatin, Tennessee projects remain on time and on budget. As a reminder, these two investments expand our warehouse and manufacturing capacity, ensuring we continue to provide industry-leading service and support to our valued customers.

就我們的成長投資而言，俄亥俄州哥倫布市和田納西州加拉廷市的項目均按時按預算完成。提醒一下，這兩項投資擴大了我們的倉庫和製造能力，確保我們繼續為我們尊貴的客戶提供領先業界的服務和支援。

The grand opening of our Columbus facility is scheduled for May. Gallatin's new facility is anticipated to open in the second half of 2025. Gallatin will play a strategic role in optimizing our fastener sourcing model. Currently, we manufacture approximately one-third of our fasteners in Gallatin, with the remaining two-thirds sourced from Taiwan.

我們的哥倫布工廠將於五月盛大開幕。加拉廷的新工廠預計將於 2025 年下半年開放。Gallatin 將在優化我們的緊固件採購模式中發揮策略性作用。目前，我們約三分之一的緊固件在加拉廷生產，其餘三分之二來自台灣。

The new greenfield operation will improve this mix closer to 50/50 and allows to in-source key third-party processes such as heat treating and coatings. This initiative is expected to reduce tariff exposure and gives a significant advantage in terms of inventory lead times.

新的綠地運作將使這一組合更接近 50/50，並允許引入熱處理和塗層等關鍵第三方製程。預計這項措施將降低關稅風險，並在庫存交貨時間方面帶來顯著優勢。

Separately, we are continuing to integrate our recent 2024 acquisitions which have been performing in line with our expectations. At the same time, we will continue to actively evaluate potential M&A opportunities that accelerate progress on our key growth initiatives and improve our overall operating efficiencies.

另外，我們正在繼續整合我們最近的 2024 年收購，這些收購的表現符合我們的預期。同時，我們將繼續積極評估潛在的併購機會，以加速我們關鍵成長計畫的進展並提高我們的整體營運效率。

Next, I'll turn to our 2025 financial outlook. Based on business trends and conditions as of today, April 28, we are reaffirming our guidance for the full year ending December 31, 2025, as follows. We expect our operating margin to be in the range of 18.5% to 20.5%. Additional key assumptions include: US housing starts to be flat to up low-single digits from 2024 levels. As a reminder, if housing starts are up low-single digits, we'd expect to trend toward the higher end of the range.

接下來，我將談談我們的 2025 年財務展望。根據截至今天（4 月 28 日）的業務趨勢和狀況，我們重申截至 2025 年 12 月 31 日的全年指導，如下所示。我們預計營業利潤率將在 18.5% 至 20.5% 之間。其他關鍵假設包括：美國住房開工量將從 2024 年的水平持平至上漲 10%。提醒一下，如果新屋開工率上漲個位數，我們預計將趨向區間的高端。

If the market growth is flat or slightly down, we would expect to be closer to the mid and low end of the range respectively. Additionally, we are expecting a slightly lower overall gross margin based on the addition of new warehouses, as well as increases in labor, factory, and tooling as a percentage of net sales, which we anticipate will be partly offset by the price increases that will go into effect June 2, and an ongoing mixed headwind from products and customers that continues to impact our margins.

如果市場成長持平或略有下降，我們預計會分別接近該範圍的中端和低端。此外，由於新倉庫的增加以及勞動力、工廠和工具佔淨銷售額的百分比增加，我們預計整體毛利率將略有下降，我們預計這些下降將被 6 月 2 日生效的價格上漲以及來自產品和客戶的持續不利因素所部分抵消，這些因素將繼續影響我們的利潤率。

Further, our margin guidance includes a projected benefit of $10 million to $12 million from the sale of the Gallatin property based on a contracted sales price of $19.1 million.

此外，我們的利潤指引包括，根據 1,910 萬美元的合約銷售價格，預計出售加拉廷地產將帶來 1,000 萬至 1,200 萬美元的收益。

Next, interest expense on our term loan, which had borrowings of $379.8 million as of March 31, 2025, is expected to be approximately $0.4 million including the benefit from interest rate and cross currency swaps, mitigating substantially all of the volatility from changes in interest rates. Interest on our cash and money markets is expected to offset this expense. Our effective tax rate is estimated to be in the range of 25.5% to 26.5%, including both federal and state income tax rates based on current tax laws.

其次，我們的定期貸款的利息支出（截至 2025 年 3 月 31 日的借款額為 3.798 億美元）預計約為 40 萬美元，其中包括利率和交叉貨幣掉期帶來的收益，從而基本減輕了利率變動帶來的所有波動。我們的現金和貨幣市場的利息預計可以抵消這筆費用。根據現行稅法，我們的有效稅率估計在 25.5% 至 26.5% 之間，包括聯邦和州所得稅率。

And finally, our capital expenditures are estimated to be in the range of $150 million to $170 million, which includes approximately $75 million for the completion of both the Columbus facility expansion and the new Gallatin fastener facility.

最後，我們的資本支出估計在 1.5 億美元至 1.7 億美元之間，其中包括用於完成哥倫布工廠擴建和新加拉廷緊固件工廠的約 7,500 萬美元。

In closing, Simpson had a solid start to 2025. We continue to believe Simpson is poised to execute our strategic plan for the balance of 2025 through ongoing macroeconomic uncertainty. As part of that plan, we will work diligently to ensure that our expense base and investments are aligned with market conditions to ensure the delivery of a strong operating income margin.

總而言之，辛普森在 2025 年取得了良好的開端。我們仍然相信，儘管宏觀經濟仍存在不確定性，辛普森仍準備執行我們 2025 年戰略計畫。作為該計劃的一部分，我們將努力確保我們的費用基礎和投資與市場條件保持一致，以確保實現強勁的營業收入利潤率。

As always, we will continue to provide our customers with unparalleled service and support. As a result of our significant investments in growth, Simpson is well positioned to continue above-market growth.

我們將一如既往地繼續為客戶提供無與倫比的服務和支援。由於我們在成長方面投入了大量資金，辛普森已準備好繼續保持高於市場的成長。

With that, I will now turn the call over to the operator to begin the Q&A session.

現在，我將把電話轉給接線員，開始問答環節。

(Operator Instructions) Daniel Moore, CJS Securities.

（操作員指示） Daniel Moore，CJS 證券。

Good afternoon, Mike, Matt. Thanks for taking the questions, as always. Maybe just start with the outlook, obviously, the guidance is unchanged. How is all the tariff noise and related impact to consumer confidence impacted, I guess either the range or your outlook in general for US housing starts?

下午好，麥克、馬特。一如既往，感謝您回答這些問題。也許只是從展望開始，顯然，指導是不變的。所有關稅噪音和相關影響對消費者信心有何影響？我猜是影響範圍還是您對美國新屋開工的整體展望？

I know you mentioned unchanged a couple of times. Is it more a function of maybe, visibilities changed a bit, or relative likelihood of kind of the top bottom end of the range? Just how are you thinking about housing relative to maybe 60 days ago?

我知道您幾次都提到了不變。它是否更多的是一個可能的函數，可見性發生了一些變化，或者是範圍頂部底部的相對可能性？與 60 天前相比，您對住房有什麼看法？

Okay, good question, Dan. So we're obviously talking with our customers, getting a lot of info from them, and then we're spending a lot of time with the people that are building market forecasts, and you still got a lot of different mixed views. I think consistently, everybody believes first half's going to be a little bit softer than the second half with the hopes that things pick up.

好的，丹，問得好。因此，我們顯然正在與客戶交談，從他們那裡獲取大量信息，然後我們花了很多時間與制定市場預測的人員在一起，但你仍然會得到很多不同的觀點。我認為，每個人都一致認為上半年會比下半年稍微疲軟一些，並希望情況會好轉。

And I think the big driver that we keep hearing from our customers is maybe the possibility of increased interest rate cuts. So when you add it all up, we came into the year, we were thinking low single digits, we put in there, now our estimates flat to low-single digits is kind of how we're thinking about it from a market perspective.

我認為，我們不斷從客戶那裡聽到的最重要的推動因素可能是進一步降息的可能性。因此，當你把所有因素加起來時，我們進入了這一年，我們考慮的是低個位數，我們把這個數字放在那裡，現在我們的估計持平於低個位數，這就是我們從市場角度考慮的問題。

Matt, you want to talk about how that impacts our guidance?

馬特，你想談談這對我們的指導有何影響嗎？

Yeah, sure. In terms of our guidance, Dan, we still feel comfortable with the outlook that we provided in Q1. Looking at the latest forecast outlook, flat to maybe slightly up as you said from a market perspective. We still feel we can be in that range and obviously, the pricing impact that we announced gives us some flexibility that we didn't have visibility of where that was going to be when we gave guidance before. So still feel very confident in the range and the middle of the fairway, so to speak.

是的，當然。就我們的指導而言，丹，我們仍然對我們在第一季提供的展望感到滿意。從最新的預測前景來看，正如您從市場角度所說的那樣，持平或略有上升。我們仍然覺得我們可以處於這個範圍內，而且顯然，我們宣布的定價影響給了我們一些靈活性，而我們之前給出指導時並不清楚這個範圍到底在哪裡。因此可以說，我對球道的範圍和中間仍然非常有信心。

Really helpful and appreciate all the color on the price increases. Just wondering what feedback you've gotten at this point, just given the general macro uncertainty? Any more pushback than usual? I guess I'm thinking particularly from big box retailers or -- you've always had been able to push through, when needed, so just to see if there's any change there in terms of the tone of conversations with customers?

真的很有幫助，並且感謝大家對價格上漲的關注。只是想知道，考慮到整體宏觀不確定性，您目前得到了什麼回饋？比平常受到的阻力更大嗎？我想我特別想到的是大型零售商或——你們總是能夠在需要的時候堅持下去，所以只是想看看在與顧客交談的語氣方面是否有任何變化？

Yeah, I mean, Dan, we try very hard to have a fair price for our products. As you know, we're typically less than 1% of the material of the house. We like to think we had a lot of value in service and support through our engineering teams, our innovation teams, our sales teams out in the field and in everything we do to provide great service out in the field.

是的，我的意思是，丹，我們盡力為我們的產品設定一個公平的價格。如您所知，我們通常只佔房屋材料的 1% 以下。我們認為，透過我們的工程團隊、創新團隊、現場銷售團隊以及我們為在現場提供優質服務所做的一切，我們在服務和支援方面具有很大的價值。

So we're working hard to make sure that our customers understand the value that we bring, and we're doing our best to try to offset as much of these costs as we can so that we've got a reasonable premium that allows us to invest back into the business to better support our customers.

因此，我們正在努力確保我們的客戶了解我們帶來的價值，並且我們正在盡最大努力抵消盡可能多的成本，以便我們獲得合理的溢價，使我們能夠重新投資於業務，以更好地支持我們的客戶。

I would add, Dan, this is Matt. In terms of our price increase, as we mentioned, we've seen our cost inputs going up over the last couple years. And then obviously with the recent tariff announcements, but I think just to be clear, we're not passing through the full dollar impact of the tariff because we recognize market conditions, the affordability challenges, some of our competitors in terms of where they source from.

我想補充一下，丹，這是馬特。就我們的價格上漲而言，正如我們所提到的，過去幾年我們的成本投入有所上升。然後顯然是最近的關稅公告，但我認為需要明確的是，我們不會承受關稅對美元的全部影響，因為我們認識到市場狀況、承受能力挑戰以及我們的一些競爭對手的採購來源。

And so we've been very thoughtful where we've adjusted the prices and have not passed fully through the tariff impact. Obviously, we'll see where that all nets out after negotiations on tariffs with the governments that are involved. But just being very thoughtful of where we take those price increases because we do need to offset the costs have gone up over the last several years, including the tariff impacts most recently.

因此，我們經過深思熟慮後調整了價格，並沒有完全轉嫁關稅的影響。顯然，在與相關政府就關稅進行談判之後，我們將看到最終結果如何。但我們在考慮如何提高價格時要非常慎重，因為我們確實需要抵消過去幾年上漲的成本，包括最近的關稅影響。

Certainly makes sense. You mentioned a couple of things, you potentially freezing capital investments until housing improves. I assume that's obviously post the Gallatin and Tennessee projects, I should say, the Ohio and Tennessee projects which are already underway. Any other kind of steps to mitigate potential tariffs or exposure that you're contemplating beyond the pricing that you described?

當然有道理。您提到了幾件事，您可能會凍結資本投資，直到住房狀況改善。我認為這顯然是加拉廷和田納西項目之後的事情，我應該說，俄亥俄州和田納西州的項目已經在進行中。除了您所描述的定價之外，您還考慮採取其他什麼措施來減輕潛在的關稅或風險？

Yeah, if you look at our single biggest investment, the Gallatin facility, so that certainly is going to help us strike a better balance of locally produced fasteners and eventually some anchors compared to where we are today. So there's some work that we're trying to do there or we're trying to accelerate some equipment that we put in that facility.

是的，如果你看看我們最大的投資，加拉廷工廠，那麼與現在相比，這肯定會幫助我們在本地生產的緊固件和最終的一些錨固件之間取得更好的平衡。因此，我們正在嘗試在那裡進行一些工作，或嘗試加速我們在該設施中安裝的一些設備。

We also have the option of maybe importing some products from Europe, but I think the thing that we want to do, Dan, is we're thinking mid and long term on this story as well as trying to balance the short-term cost. Because we don't want to make a bunch of changes and just have everything undo and then maybe the business case doesn't work out as well as we had hoped originally. So we're looking at all kinds of options and doing everything we can to manage both the short term and the long term.

我們也可以考慮從歐洲進口一些產品，但丹，我認為我們想要做的事情是，對這個故事進行中期和長期的思考，並試圖平衡短期成本。因為我們不想做出一大堆改變，然後把一切都撤消，這樣商業案例可能不會像我們最初希望的那樣順利。因此，我們正在考慮各種選擇，並盡一切努力管理短期和長期問題。

Perfect. And last for me and I'll get back in queue, but just given the strength of the balance sheet and the pull back and share price, obviously you're active in Q1. Any changes in terms of the relative order of capital allocation, and how aggressively are you likely to be buying back stock, versus maybe looking at M&A and at least in the near term? Thanks again.

完美的。最後，我會回到隊列，但考慮到資產負債表的強勁以及回調和股價，顯然你在第一季很活躍。資本配置的相對順序有任何變化嗎？您可能會以多大的力度回購股票，還是至少在短期內考慮併購？再次感謝。

Yeah, we were active in the first quarter. We bought back $25 million against our $100 million authorization for 2025, so $75 million left, so we continue to be desiring to return capital shareholders see a share repurchase. I think you'll see us kind of stay the course like we've been on the last two years. I don't know that we would jump into any significant opportunistic repurchase versus what we've already sort of announced as part of the authorization.

是的，我們在第一季很活躍。我們回購了 2,500 萬美元，而 2025 年的授權金額為 1 億美元，因此還剩下 7,500 萬美元，因此我們仍然希望透過股票回購來回還資本股東。我想你會看到我們像過去兩年一樣堅持這一方針。我不知道我們是否會進行任何重大的機會性回購，而不是我們已經作為授權的一部分宣布的回購。

Perfect, I'll jump back when I have a follow-up. Thanks again.

太好了，當我有後續情況時我會回來。再次感謝。

Timothy Wojs, Baird.

提摩西‧沃伊斯，貝爾德。

Hey, guys, good afternoon. Nice job. Maybe just for -- what is the annualized tariff impact that you guys have to absorb without any sort of mitigation?

嘿，大家下午好。幹得好。也許只是為了——在沒有任何緩解措施的情況下，你們必須承受的年度關稅影響是多少？

Yeah, so, Tim, when we look at the business, we import a relatively small percentage of the cost of goods from Asia, so we're not releasing the -- we're not releasing the exact number. When we look at the price increase that we talked about, it's a weighted average 8%, so that helps us basically manage all the cost increases we've seen over the last three-plus years and pretty much everything but steel.

是的，蒂姆，當我們看業務時，我們從亞洲進口的商品成本只佔相對較小的比例，所以我們不會公佈——我們不會公佈確切的數字。當我們查看我們談到的價格上漲時，它是加權平均 8%，因此這有助於我們基本上管理過去三年多來我們看到的所有成本上漲以及除鋼鐵以外的幾乎所有成本上漲。

Now, we see steel going up. And then that also helps us offset part of the tariff. So just to be clear, we are not passing through all of the tariff-related cost to our customers. But bigger picture, relatively small percentage of the goods that we sell today come from Europe -- come from Asia, sorry, come from Asia.

現在，我們看到鋼價上漲。這也有助於我們抵消部分關稅。因此需要明確的是，我們不會將所有與關稅相關的成本轉嫁給我們的客戶。但從更大角度來看，我們今天銷售的商品中只有相對較小的比例來自歐洲——來自亞洲，抱歉，來自亞洲。

Okay, got you. That's helpful. And then I guess just when you're thinking about the kind of -- so just I want to make sure I kind of understand this. So all of the costs outside of tariffs were kind of included in the original guide and now we kind of have pricing layered in. So obviously, you have tariffs, it sounds like it's not a big portion of the number. But all of the cost that you guys had incurred in terms of inflation and things like that, that was largely in the guidance range before, right?

好的，明白了。這很有幫助。然後我想當你思考這種事情時——所以我只是想確保我理解這一點。因此，關稅以外的所有成本都包含在原始指南中，現在我們已經分層定價了。顯然，關稅似乎不是很大一部分。但是，你們在通貨膨脹等方面產生的所有成本，之前基本上都在指導範圍內，對嗎？

Yes, I'd say you kind of have three factors moving, Tim. You have the costs that were already in the guidance. The pricing was not. We've announced the pricing. The tariffs weren't in the guidance. We're offsetting part of that with the pricing and then we're also -- when we gave our original guidance, we gave the range and we sort of clarified high end of the range based on low-single-digit housing starts in the market, middle of the range would be flattish, and then lower end of the range would be if we saw a decline.

是的，我想說有三個因素在起作用，提姆。您已將成本列入指引中。定價卻不是。我們已經公佈了價格。關稅並未包含在指導範圍內。我們正在透過定價來抵消部分影響，然後我們也 - 當我們給出最初的指導時，我們給出了範圍，並且我們根據市場上低個位數的房屋開工率澄清了範圍的高端，範圍的中間部分將是平穩的，然後如果我們看到下降，範圍的低端將是下降的。

I think sitting where we are today in terms of the housing starts, first quarter, a little bit soft in terms of the market. We believe there's upside in the back half and we can still get to a low-single-digit housing starts market environment and we hear that from the customers that we talked to and various forecasters. They're all over the board.

我認為，就第一季新屋開工而言，市場目前略顯疲軟。我們相信下半年會有上行空間，我們仍然可以獲得低個位數的房屋開工市場環境，我們從與之交談的客戶和各種預測者那裡聽說了這一點。他們遍布整個董事會。

We still think it's possible so we softened that a little bit in terms of flat to slightly up US housing starts, but yeah, that was all -- essentially, everything was baked into the guide except for the pricing and the tariffs.

我們仍然認為這是可能的，所以我們在美國新屋開工率持平或略有上升方面稍微放寬了這一預期，但是，是的，僅此而已——基本上，除了定價和關稅之外，所有內容都已納入指南中。

Okay, got you. And then, just the gain that you have coming through with Gallatin, is that going to hit in this specific quarter? I just want to make sure that if that's kind of running through the P&L that we get the modeling right on that?

好的，明白了。那麼，您從 Gallatin 獲得的收益會在這個特定季度實現嗎？我只是想確保，如果這在損益表中運行，我們就能正確地對其進行建模？

Yeah, it should hit in the third quarter, Tim.

是的，它應該在第三季度實現，蒂姆。

Okay, got you. All right, I'll hop back in queue. Thanks a lot, guys.

好的，明白了。好的，我回到隊列。非常感謝大家。

Kurt Yinger, D.A. Davidson.

庫爾特·英格、D.A.戴維森。

Great, thanks, and good afternoon, everyone. Just wanted to start off on the demand side was hoping you could talk about kind of the seasonal progression of volumes maybe moving into March and what you've seen here in early April, as well as how consistent that is with kind of what you would expect normally with seasonality and maybe on a year-over-year basis as well?

太好了，謝謝，大家下午好。我只是想從需求方面開始，希望您能談談 3 月份的季節性銷售變化以及 4 月初的情況，以及這與您通常預期的季節性變化以及同比變化的一致性如何？

Yeah, good question, Kurt. So as you know, pre-COVID, there was a fairly significant difference in seasonality between the second, third quarter and the first and the fourth. During the COVID times, that kind of evened out a little bit and now we're trending back towards that more traditional seasonality split.

是的，庫爾特，問得好。因此，如您所知，在新冠疫情之前，第二季、第三季和第一季、第四季之間的季節性差異相當明顯。在新冠疫情期間，這種情況有所緩和，現在我們正趨向於更傳統的季節性分佈。

Say if we look at it this year and actually the second half of last year into this year, we're still not seeing big trends one way or another. October last year was a pretty good month for us. November, December wasn't. January and February were not particularly good months. March was okay. April, let's see on how that plays out, so we're not seeing a consistent pickup in the business yet. We do believe that's going to come going forward.

如果我們回顧今年，實際上是回顧去年下半年到今年的情況，我們仍然沒有看到任何大的趨勢。去年十月對我們來說是一個非常好的月份。十一月、十二月則不然。一月和二月並不是特別好的月份。三月還不錯。四月，讓我們看看事情會如何發展，所以我們還沒有看到業務的持續回升。我們確實相信這一目標將會實現。

Yeah, and then on a year-over-year perspective, Kurt, last year Q1 our volume was up, I believe 8%. This year, Q1 volume is down slightly, so we definitely had a tough comparison period from a volume standpoint a year ago. As you know, last year that the rest of the year got a little bit softer both in the market and obviously on our volume.

是的，從年比來看，庫爾特，去年第一季我們的銷量成長了，我相信是 8%。今年第一季的銷量略有下降，因此與去年同期相比，我們確實經歷了一段艱難的時期。如您所知，去年剩餘時間市場和銷售量都略有疲軟。

But to be pretty close to flat on volume in this Q1 compared to Q1 year ago with what Mike described, which is what January and February were a little soft, there definitely was some kind of weird weather and things in terms of snow in the southeast and not being a leap year, one less shipping day, all those things. But overall, a pretty solid volume and quarter against a pretty tough comparison. And then as Mike said, seasonally, generally, Q1 is maybe a little bit lower than kind of the core two quarters Q2, Q3.

但與去年第一季相比，今年第一季的銷量幾乎持平，正如 Mike 所描述的，一月和二月的銷量略顯疲軟，肯定是出現了一些異常天氣，東南部出現了降雪，而且不是閏年，少了一個運輸日，所有這些因素。但總體而言，儘管對比相當艱難，但銷量和季度表現都相當穩健。正如麥克所說，從季節性來看，一般來說，第一季可能比核心第二季和第三季略低。

Right, okay, that's helpful. And then just going back to gross margin --

好的，好的，這很有幫助。然後回到毛利率--

Kurt, usually, it's 22, 28, 28, 22, is typically --

Kurt，通常是 22、28、28、22，通常是--

Percentage of our year.

占我們年度的百分比。

Right, okay, that's helpful. Going back to gross margin, in Q2, obviously, you only get pricing benefits for part of the quarter. Typically, we see some seasonal uplift which is beneficial there as well. I guess as we get into the back half and think about some of these additional costs and inventory starting to roll through, I guess how would you have us think about kind of the trajectory of gross margins, Q3 to Q4, and maybe even kind of a jumping off point into early next year, all considered?

好的，好的，這很有幫助。回到毛利率，在第二季度，顯然你只能在部分季度獲得定價優惠。通常，我們會看到一些季節性的上升，這對那裡也是有利的。我想，當我們進入下半年並考慮一些額外成本和庫存開始滾滾而來時，我想你會讓我們如何考慮毛利率的軌跡，從第三季度到第四季度，甚至可能是明年年初的起點，所有這些都考慮到了？

Yeah, there's lots of moving parts. Obviously Kurt, you're right, the pricing will kick in June, so we get a little bit of a slight bump for one month in Q2 to offset some of the costs that are that are already coming in. We're already receiving containers of tariff goods or tariff burden goods already in April, so that the costs are starting to roll in. I think we get a little bit of leverage if you will, from a volume standpoint and those higher volume quarters Q2 and Q3.

是的，有很多活動部件。顯然，庫爾特，你是對的，定價將在 6 月開始，因此我們在第二季的一個月內會得到一點小幅上漲，以抵消一些已經產生的成本。我們在四月就已經收到了裝有關稅貨物或關稅負擔貨物的貨櫃，因此成本開始滾滾而來。我認為，從交易量的角度來看，以及從交易量較高的第二季和第三季來看，我們會獲得一點槓桿作用。

But I think overall for the year, we're expecting our gross margin to be essentially flat. We're trying to maintain our gross margin. So while we're taking -- while some of the costs were baked in terms of the things that have gone up in the last few years, we're not pricing on dollar for dollar on tariffs. So I think our goal would be to keep our gross margin relatively flat versus a year ago for the whole year.

但我認為，就今年整體而言，我們預計毛利率將基本持平。我們正在努力維持我們的毛利率。因此，雖然我們正在考慮——雖然一些成本是根據過去幾年上漲的價格計算的，但我們不會以一美元一美元的關稅來定價。因此我認為我們的目標是保持全年毛利率與去年同期相對持平。

We had a weird comparison in Q1. Obviously, we talked some of the timing of volume discounts that were negatively impacted in Q1 year ago. That's why the gross margin shows a more favorable in Q1 this year than it really would be on an adjusted basis.

我們在第一季進行了一次奇怪的比較。顯然，我們討論了一些批量折扣的時機問題，這些折扣在去年第一季受到了負面影響。這就是為什麼今年第一季的毛利率比調整後的實際利率更為有利。

Okay, and maybe just a point of clarification to make sure I understand it right, when you're talking about not fully offsetting the additional tariff increases, that conversation would also kind of incorporate the other cost inflation the last couple of years, right? If we were just to kind of isolate that weighted average 8% increase, that itself would offset the tariffs or am I maybe misunderstanding that?

好的，也許我只是想澄清一下，以確保我理解正確，當您談到不能完全抵消額外的關稅增加時，這種談話也會考慮到過去幾年的其他成本通膨，對嗎？如果我們只是將加權平均 8% 的增幅單獨列出來，那麼它本身就能抵消關稅，還是我誤解了這一點？

Yeah, so we've got a tariff impact, Kurt. We have impact from increasing costs that we've seen over the last three years. We've got productivity that we're trying to drive. We've got additional investments into the business in terms of the factories we've talked about, but also additional warehouses to provide even better support to our customers. Add all that up, the target, as Matt said, is to keep gross margins flat and ultimately, the target here is to be that 20% average income driving solid above US housing starts volume growth.

是的，所以我們受到了關稅的影響，庫爾特。我們受到了過去三年來成本上漲的影響。我們正在努力提高生產力。我們對工廠業務進行了額外投資，也增加了倉庫，以便為我們的客戶提供更好的支援。總而言之，正如馬特所說，目標是保持毛利率平穩，最終目標是透過 20% 的平均收入推動美國新屋開工量穩步成長。

Okay, all right. Just last one. You talked about some small- and medium-sized kind of conversions in the component manufacturer space. I think you alluded to some expanded shelf space in the national retail side. Any way you can kind of roughly maybe size those opportunities as we look out over the next kind of 12 to 18 months?

好的，好的。只剩最後一個了。您談到了零件製造商領域的一些中小型轉換。我認為您提到了全國零售方面的一些擴大的貨架空間。展望未來 12 到 18 個月，您能否粗略地評估這些機會的規模？

Well, that, at the end of the day is what helping us drive that 420 basis points above the US housing starts, Kurt. I think you've heard me say this before, it's typically a lot of singles and doubles using a baseball analogy. And that's what's been able to drive that above-market growth.

好吧，從根本上來說，這就是幫助我們將美國新屋開工率提高 420 個基點的原因，庫爾特。我想你以前聽我說過，這通常是用棒球類比來表示很多單打和雙打。這就是推動其實現高於市場成長的動力。

Okay. Thank you very much.

好的。非常感謝。

And we have reached the end of the question-and-answer session, and this also concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

問答環節到此結束，今天的記者會也結束了。現在您可以斷開線路。感謝您的參與。