Trex Company Inc (TREX) 2024 Q4 法說會逐字稿

Good afternoon and welcome to the Trex Company fourth-quarter and full-year 2024 earnings conference call.

下午好，歡迎參加 Trex 公司 2024 年第四季和全年財報電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Casey Kotary, Investor Relations Representative. Please go ahead.

現在，我想將會議交給投資者關係代表 Casey Kotary。請繼續。

Thank you, everyone, for joining us today.

感謝大家今天的參與。

With us, on the call, are Bryan Fairbanks, President and Chief Executive Officer; and Brenda Lovcik, Senior Vice President and Chief Financial Officer. Joining Bryan and Brenda is Amy Fernandez, Senior Vice President, Chief Legal ,Officer and Secretary; as well as other members of Trex's management.

與我們一起參加電話會議的還有總裁兼執行長布萊恩費爾班克斯 (Bryan Fairbanks)；以及高級副總裁兼財務長 Brenda Lovcik。與 Bryan 和 Brenda 一起出席的還有高級副總裁、首席法律官兼秘書 Amy Fernandez；以及 Trex 管理的其他成員。

The company issued a press release today, after market closed, containing financial results for the fourth-quarter and full-year 2024. This release is available on the company's website.

該公司今天收盤後發布了一份新聞稿，其中包含 2024 年第四季和全年的財務業績。此新聞稿可在該公司的網站上查閱。

This conference call is also being webcast and will be available on the Investor Relations page of the company's website for 30 days.

本次電話會議也將進行網路直播，並將在公司網站的投資者關係頁面上發布 30 天。

I will now turn the call over to Amy Fernandez. Amy?

現在我將電話轉給艾米·費爾南德斯。艾米？

Thank you, Casey.

謝謝你，凱西。

Before we begin, let me remind everyone that statements, on this call, regarding the company's expected future performance and conditions constitute forward-looking statements, within the meaning of Federal Securities laws. These statements are subject to certain risks and uncertainties that could cause actual results to differ, materially, from those expressed in the forward-looking statements.

在我們開始之前，讓我提醒大家，本次電話會議中有關公司預期未來業績和狀況的陳述構成聯邦證券法所定義的前瞻性陳述。這些聲明受某些風險和不確定性的影響，可能導致實際結果與前瞻性聲明中表達的結果有重大差異。

For a discussion of such risks and uncertainties, please see our most recent Form 10-K and Form 10-Q, as well as our 1933 and other 1934 Act filings with the SEC.

有關此類風險和不確定性的討論，請參閱我們最新的 10-K 表和 10-Q 表，以及我們向美國證券交易委員會提交的 1933 年和其他 1934 年法案文件。

Additionally, non-GAAP financial measures will be referenced in this call. A reconciliation of these measures to the comparable GAAP financial measure can be found in our earnings press release at trex.com.

此外，本次電話會議中也將參考非公認會計準則財務指標。這些指標與可比較 GAAP 財務指標的對帳表可在 trex.com 上的我們的收益新聞稿中找到。

The company expressly disclaims any obligation to update or revise, publicly, any forward-looking statements, whether as a result of new information, future events, or otherwise.

該公司明確表示不承擔更新或公開修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。

With that introduction, I will turn the call over to Bryan Fairbanks.

介紹完畢後，我將把電話轉給布萊恩費爾班克斯 (Bryan Fairbanks)。

Thank you, Amy. And thank you, all, for participating in today's call to discuss our fourth-quarter and full-year 2024 results and our business outlook for 2025.

謝謝你，艾米。感謝大家參加今天的電話會議，討論我們 2024 年第四季和全年業績以及 2025 年業務展望。

I will open by thanking our channel partners, distributors, contractors, and the Trex consumer for driving our performance in 2024. And, of course, we cannot be successful without the dedication to excellence I see, every day, from the Trex team members, at every level. Thank you, all.

首先，我要感謝我們的通路合作夥伴、經銷商、承包商和 Trex 消費者推動了我們在 2024 年的表現。當然，如果沒有我每天看到的 Trex 團隊成員各個層面對卓越的追求，我們就不可能取得成功。謝謝大家。

The Trex team ended 2024 by delivering stronger-than-expected fourth-quarter results, enabling us to exceed our full-year revenue guidance for both sales and EBITDA.

Trex 團隊在 2024 年底取得了好於預期的第四季度業績，使我們的銷售額和 EBITDA 都超過了全年收入預期。

We continue to experience strong demand for Trex premium products in the fourth quarter, together with strengthening sequential demand for our value-priced products.

第四季度，我們對 Trex 優質產品的需求持續強勁，同時對我們超值產品的需求也持續增強。

Our EBITDA outperformance is a good indication of the positive operating leverage we gain on higher utilization and the production efficiencies that our continuous cost-out programs are yielding.

我們的 EBITDA 優異表現充分錶明了我們透過更高的利用率和持續的成本削減計劃所帶來的生產效率而獲得的積極的經營槓桿。

We have a full roster of these fast-return projects set for 2025 and beyond.

我們已經制定了一系列計劃，將在 2025 年及以後實施快速回報項目。

During the year, we executed on several key strategic initiatives that provide the foundation for our company's continued long-term growth, product development, product market availability, and branding programs.

這一年，我們執行了幾項關鍵策略舉措，為公司持續的長期成長、產品開發、產品市場供應和品牌規劃奠定了基礎。

First, we continue to prioritize new product development and market launches, which are long-term growth drivers. In fact, products launched within the last 36 months accounted for approximately 20% of our full-year revenues. Between new products introduced in 2024 and those slated for 2025, we will launch a record number of new products that will support future sales growth.

首先，我們繼續優先考慮新產品開發和市場發布，這是長期成長的動力。事實上，過去 36 個月內推出的產品約占我們全年收入的 20%。在 2024 年推出的新產品和計劃於 2025 年推出的新產品之間，我們將推出創紀錄數量的新產品，以支持未來的銷售成長。

During the year, we saw particular success with our premium decking Transcend Lineage, which continued to drive strong consumer demand at the high end of the market. Transcend Lineage features heat-mitigating technology, now branded SunComfortable, which reflects UV rays and heat to keep deck boards feeling cooler.

這一年，我們的高端甲板Transcend Lineage取得了特別大的成功，並持續推動高端市場的強勁消費需求。Transcend Lineage 採用減熱技術，現在品牌為 SunComfortable，它可以反射紫外線和熱量，讓甲板感覺更涼爽。

In late 2024, we introduced two new colors to our Enhance decking line, both featuring SunComfortable technology.

2024 年末，我們為 Enhance 甲板系列推出了兩種新顏色，均採用了 SunComfortable 技術。

Heat-mitigation attributes are becoming more popular, across all markets where people enjoy outdoor living activities. But especially in the Sun Belt, where high temperatures and abundant sun are the norm.

在所有人們享受戶外活動的市場中，緩解炎熱的特性越來越受歡迎。尤其是在陽光地帶，高溫和充足的陽光是常態。

SunComfortable technology has garnered very positive responses from our channel partners and consumers. And we will continue to roll-out this new feature, with our new decking product launches.

SunComfortable 技術得到了我們的通路合作夥伴和消費者的非常正面的回應。我們也會隨著新裝飾產品的推出繼續推出這項新功能。

Just last week, we announced the next generation of Trex Select decking, with three new colors: fresh and greening patterns and SunComfortable technology. Our new Select decking will be available during the second quarter.

就在上週，我們宣布推出下一代 Trex Select 裝飾板，它擁有三種新顏色：清新和綠色圖案以及 SunComfortable 技術。我們的新款 Select 裝飾板將於第二季上市。

First-generation Trex Select was launched back in 2012 and has been an extremely popular mid-price deck board. This second-generation Select product will continue to fill the needs of mid-price buyers in the $4.50 to $5 a linear foot-price range.

第一代 Trex Select 於 2012 年推出，是一款極受歡迎的中價位甲板板。第二代 Select 產品將繼續滿足每平方英尺價格在 4.50 美元至 5 美元之間的中等價位買家的需求。

2024 was a pivotal year in advancing our railing growth strategy, as we accelerated the pace of new product introductions with new steel, mesh, and aluminum railing systems; cable and glass systems; and enhancements to the Trex Select and Trek Enhance composite railing systems, that are priced to provide an alternative to vinyl railing.

2024 年是我們推進欄桿成長策略的關鍵一年，我們加快了推出新鋼、網和鋁欄桿系統的新產品的步伐；電纜和玻璃系統；以及對 Trex Select 和 Trek Enhance 複合欄桿系統的增強，其定價可作為乙烯基欄桿的替代品。

With these new offerings, which will all be available for the 2025 season, we, now, have a comprehensive portfolio of railing products, addressing all major design preferences and price points.

這些新產品將於 2025 年上市，現在我們擁有全面的欄桿產品組合，可滿足所有主要的設計偏好和價格點。

This accomplishment is aligned with our objective of doubling our market share, of the $3.3 billion dollar railing market, over the next five years, moving from 6% to a 12% share.

這項成就符合我們的目標，在未來五年內將我們在 33 億美元欄桿市場的份額翻一番，從 6% 增加到 12%。

And we continue to build-out our adjacent growth opportunities. We, now, have a full line of Trex-branded deck fasteners. In addition to providing a clean, cohesive aesthetic to the homeowner, these products are engineered to make installation easier and more efficient for both contractors and DIY installers.Taken together, our expanded decking, railing, and fastener product lines give our channel partners and contractors a competitive edge, by offering the ability to deliver end-to-end solutions from one trusted supplier.

我們將繼續拓展鄰近的成長機會。現在，我們擁有全系列的 Trex 品牌甲板緊固件。除了為房主提供整潔、一致的美感之外，這些產品還經過精心設計，使承包商和 DIY 安裝人員的安裝更加輕鬆、高效。總而言之，我們擴展的甲板、欄桿和緊固件產品線為我們的通路合作夥伴和承包商提供了競爭優勢，因為我們能夠從一家值得信賴的供應商提供端到端解決方案。

It also gives the homeowner comfort in knowing that their warranties are backed by the leading manufacturer of decking and railing products.

這也讓房主感到安心，因為他們知道他們的保固是由領先的甲板和欄桿產品製造商提供支援的。

Second, with respect to product market availability, we leveraged our expanded product portfolios to further strengthen our relationships with our distribution partners. Long-time distributors like Snavely Forest Products and Boise Cascade announced their decisions to fully align with Trex decking and railing, across each of their locations.

其次，就產品市場供應而言，我們利用擴大的產品組合進一步加強與經銷合作夥伴的關係。Snavely Forest Products 和 Boise Cascade 等長期經銷商宣布決定在其各個門市全面使用 Trex 甲板和欄桿。

Additionally, Weyerhaeuser, a global leader in distributing building products to both pro and retail channels, aligned with Trex stacking and railing and will service the California, Arizona, Nevada, and New Mexico markets.

此外，Weyerhaeuser 是向專業和零售通路分銷建築產品的全球領導者，它將與 Trex 堆疊和欄桿公司合作，為加州、亞利桑那州、內華達州和新墨西哥市場提供服務。

Also, we expanded our relationship with International Wood Products, which will fully align with Trex and offer both Trex decking and railing in Northern California and Northern Nevada, giving us the ability to further increase our shared key geographies in the western part of the US.

此外，我們擴大了與國際木製品公司的合作關係，該公司將與 Trex 全面合作，在加州北部和內華達州北部提供 Trex 甲板和欄桿，使我們能夠進一步擴大我們在美國西部的共享關鍵地理區域。

Further, we strengthened our distribution network in Canada with Alexandria Moulding, a Specialty Building Products brand, which will bring our premium decking and railing products to a broader range of Canadian retailers, homeowners, and contractors.

此外，我們還透過專業建築產品品牌 Alexandria Moulding 加強了在加拿大的分銷網絡，該品牌將把我們的優質裝飾和欄桿產品帶給更廣泛的加拿大零售商、房主和承包商。

In addition, our Home Center business will benefit from additional shelf space we're gaining in this quarter, at the Home Depot.

此外，我們家居中心業務將受益於本季家得寶貨架空間的增加。

And third, related to branding. We continued to make substantial investments in branding and marketing programs that strengthen consumer recognition of the advantages of Trex products. These programs capitalize on current trends in outdoor living by highlighting products that support seamless transition from indoor comfort to outdoor enjoyment; and emphasize the climate resilience of a Trex deck, with innovations such as SunComfortable technology and the weather resistance of our boards that make them ideal for use in and around water.

第三，與品牌有關。我們繼續對品牌和行銷計劃進行大量投資，以增強消費者對 Trex 產品優勢的認可。這些項目充分利用戶外生活的當前趨勢，重點介紹支持從室內舒適到戶外享受的無縫過渡的產品；並強調 Trex 甲板的氣候適應力，採用 SunComfortable 技術等創新以及我們板材的耐候性，使其非常適合在水中和水邊使用。

These advantages appeal to a broad range of consumers who want to add value to their homes. And Trex branded products have shown to be an excellent way to add value, similar to investing in a Sub-Zero refrigerator or a Wolf range in your kitchen.

這些優勢吸引了廣大想要增加房屋價值的消費者。而且，事實證明 Trex 品牌產品是增加價值的絕佳方式，類似於在廚房投資一台 Sub-Zero 冰箱或一套 Wolf 系列。

We were honored, last month, to be named America's Most Trusted(r) Outdoor Decking, for the fifth consecutive year. According to a nationwide survey of nearly 4,000 participants, Lifestory Research noted that Trex received the best reviews and satisfaction scores, among six outdoor decking brands included in the survey. And with the only decking brand to earn the 5-star rating for Trust compared to the three stars for the next two closest competitors.

上個月，我們很榮幸連續第五年被評為「美國最值得信賴的戶外裝飾公司」。根據一項涉及近 4,000 名參與者的全國性調查，Lifestory Research 指出，在接受調查的六個戶外裝飾品牌中，Trex 獲得了最高的評價和滿意度分數。而且，我們是唯一一個獲得信任度五星評級的裝飾品牌，而其後兩個最接近的競爭對手都只獲得三星評級。

In addition to these strategic initiatives to drive future growth, we remained on track with our investments in the new Arkansas campus. Our recycled plastic processing operation is scheduled to go online, late in the first quarter, when we begin recycled materials reprocessing in Arkansas. The output from this operation will be used at our Virginia and Nevada facilities, eliminating the need to purchase higher-cost externally recycled materials.

除了這些推動未來成長的策略性舉措之外，我們還繼續對阿肯色州新園區進行投資。我們的再生塑膠加工業務計劃於第一季末投入使用，屆時我們將開始在阿肯色州進行再生材料再加工。此次營運的產出將用於我們維吉尼亞州和內華達州的工廠，從而無需購買成本更高的外部回收材料。

Once completed, Arkansas will be our most efficient production site. And it will give Trex total manufacturing capacity of more than $2 billion in sales. The majority of the capital spending related to the Arkansas campus will be completed this year, which will make 2026 a year of substantial free cash flow generation for Trex, as we return to a more normalized level of capital spending and as we leverage the investments made between '23 and 2025.

一旦竣工，阿肯色州將成為我們最高效的生產基地。這將使 Trex 的總生產能力達到超過 20 億美元的銷售額。與阿肯色州園區相關的大部分資本支出將於今年完成，這將使 2026 年成為 Trex 產生大量自由現金流的一年，因為我們將恢復到更正常的資本支出水平，並利用 23 年至 2025 年期間的投資。

Trex's position for continued growth in 2025, amid expectations for the repair and remodel market -- to be approximately flat compared to the 2024 levels. Our guidance for market outperformance anticipates continued strong sell-through of Trex premium decking products, improved demand for Trex entry-level products, and double-digit growth in our railing product sales.

在維修和改造市場的預期下，Trex 將在 2025 年繼續成長——與 2024 年的水平基本持平。我們對市場表現的指導預計 Trex 高級裝飾產品的銷售將繼續強勁，Trex 入門級產品的需求將會增加，我們的欄桿產品銷售將實現兩位數的成長。

Now, I will turn the call over to our Senior Vice President and CFO, Brenda Lovcik for a financial review and additional color on our guidance for 2025. Brenda?

現在，我將把電話轉給我們的高級副總裁兼財務長 Brenda Lovcik，讓她對財務狀況進行審查，並為我們 2025 年的指引提供更多細節。布倫達？

Thank you, Brian. Good evening, everyone.

謝謝你，布萊恩。大家晚上好。

Before I walk through our financial results, I would like to highlight some of the many strategic priorities we executed on, during 2024, that will drive growth and profitability in 2025 and beyond.

在介紹我們的財務表現之前，我想先強調我們在 2024 年執行的一些策略重點，這些策略重點將推動 2025 年及以後的成長和獲利能力。

One of our top priorities during 2024 was the new product introductions. We are excited to have expanded our decking portfolio with new and innovative product offerings, including a very innovative heat mitigation technology that we are incorporating across our decking portfolio. We also introduced a comprehensive portfolio of Trex railing products, helping us greatly expand our relationship with our distributors, who will now be able to offer a full Trex decking solution.

2024 年我們的首要任務之一是推出新產品。我們很高興能夠透過新的創新產品擴展我們的裝飾產品組合，其中包括我們在整個裝飾產品組合中採用的一項非常創新的熱緩解技術。我們也推出了全面的 Trex 欄桿產品組合，幫助我們大幅擴展了與經銷商的關係，經銷商現在可以提供完整的 Trex 裝飾解決方案。

In the second half of 2024, we revised our channel inventory strategy to reduce the quarterly volatility associated with the timing of channel stocking and destocking and to minimize production fluctuations within our manufacturing plants.

2024 年下半年，我們修改了通路庫存策略，以減少與通路備貨和去庫存時間相關的季度波動，並盡量減少製造工廠內的生產波動。

Production efficiencies generated by continuous improvement initiatives, coupled with increased inventory, which we, now, believe to be at the right level, position us to service the market with normal lead times; avoid significant channel fluctuations, experienced historically; and minimize quarterly revenue and gross margin volatility.

持續改善措施所產生的生產效率，加上庫存的增加（我們現在認為庫存已處於適當水平），使我們能夠以正常的交貨時間為市場提供服務；避免歷史上經歷過的重大渠道波動；並儘量減少季度收入和毛利率的波動。

We are also pleased with our capacity expansion in Little Rock, Arkansas that is on schedule to start pellet production in Q2 of 2025. As Brian mentioned, once initial startup expenses are behind us, Arkansas will be our most efficient plant and will enable us to increase the flexibility and efficiencies of our existing manufacturing facilities. I will provide more detailed information concerning the new plant in my financial discussion.

我們也對阿肯色州小石城的產能擴張感到滿意，該公司計劃於 2025 年第二季開始生產顆粒。正如布萊恩所提到的，一旦我們支付了初始啟動費用，阿肯色工廠將成為我們最高效的工廠，並使我們能夠提高現有製造設施的靈活性和效率。我將在財務討論中提供有關新工廠的更多詳細資訊。

We also accelerated our digital transformation initiative to further enhance the Trex consumer experience. The benefits of these strategies will enable us to continue to outpace the repair and remodel market in 2025 and beyond, as well as enhance our long-term profitability.

我們也加快了數位轉型計劃，以進一步提升 Trex 消費者體驗。這些策略的優勢將使我們在 2025 年及以後繼續領先於修復和改造市場，並提高我們的長期獲利能力。

I'd now like to review our fourth-quarter and full-year 2024 results. Please note that unless otherwise stated, all comparisons discussed, today, are on a year-over-year basis compared to the fourth quarter of 2023 and full-year 2025.

現在，我想回顧一下我們 2024 年第四季和全年的業績。請注意，除非另有說明，今天討論的所有比較都是與 2023 年第四季和 2025 年全年相比的同比數據。

As Brian mentioned, the fourth quarter represented a stronger-than-expected finish to 2024, a year in which we continued to execute on our key strategic priorities.

正如 Brian 所提到的，第四季的表現比 2024 年預期的要好，在這一年中，我們將繼續執行我們的關鍵策略重點。

In the fourth quarter, net sales were $168 million, a decrease of 14% compared to $196 million. In Q4, channel inventories decreased by approximately $45 million, which is almost double what we had originally forecasted.

第四季淨銷售額為1.68億美元，較1.96億美元下降14%。第四季度，通路庫存減少了約 4,500 萬美元，幾乎是我們最初預測的兩倍。

And despite the better-than-expected sales in decking, the decking channel inventories, days on hand, are down from 2023 and near all-time lows. Even with a substantial channel inventory reduction, sales were ahead of our expectations, driven by continued strong demand for our premium-priced products and sequentially stable demand for our entry-level products.

儘管甲板的銷售好於預期，但甲板渠道的庫存天數較 2023 年有所下降，接近歷史最低水準。即使通路庫存大幅減少，但由於高價產品需求持續強勁，以及入門級產品需求持續穩定，銷售額仍超出我們的預期。

Gross margin was 32.7%, down 340 basis points from 36.1%. This decrease is primarily the result of lower utilization, partially offset by the benefits of our continuous improvement initiatives.

毛利率為32.7%，較36.1%下降340個基點。這一下降主要是由於利用率較低，但我們持續改善措施帶來的好處部分抵消了這一下降。

Selling, general, and administrative expenses was $39 million or 23.4% of net sales compared to $43 million or 21.7% of net sales. The year-over-year decline was primarily related to lower incentive compensation, while we continued to invest in branding, marketing, and new product innovation.

銷售、一般及管理費用為 3,900 萬美元，佔淨銷售額的 23.4%，而去年同期為 4,300 萬美元，佔淨銷售額的 21.7%。年比下降主要與激勵性薪酬降低有關，同時我們繼續在品牌、行銷和新產品創新方面進行投資。

Net income was $10 million or $0.09 per diluted share, a decrease of 58% from $22 million or $0.20 per diluted share. We delivered EBITDA of $29 million or 17% of net sales, down from 30% compared to $41 million or 21% of net sales last year.

淨收入為 1,000 萬美元或每股攤薄收益 0.09 美元，較 2,200 萬美元或每股攤薄收益 0.20 美元下降 58%。我們的 EBITDA 為 2,900 萬美元，佔淨銷售額的 17%，較去年的 4,100 萬美元（佔淨銷售額的 21%）下降了 30%。

Turning our attention to full-year results, net sales, for the full-year 2024, totaled $1.2 billion, a 5% increase compared to $1.1 billion, primarily due to the shift of our Early Buy program, from December to January of 2024, and the strong demand for our premium products.

將注意力轉向全年業績，2024 年全年淨銷售額總計 12 億美元，較 11 億美元增長 5%，這主要是由於我們的早期購買計劃從 12 月轉移到 2024 年 1 月，以及對我們優質產品的強勁需求。

Net income was $226 million or $2.09 per diluted share compared to $205 million or $1.89 per diluted share, representing 10% growth.

淨收入為 2.26 億美元，即每股攤薄收益 2.09 美元，而去年同期為 2.05 億美元，即每股攤薄收益 1.89 美元，成長 10%。

EBITDA was $360 million, also up 10% from $326 million in the prior year. And EBITDA margin expanded by 150 basis points to 31.3% from 29.8%, primarily due to our cost-out programs, which continued to drive margin improvement and improved utilization in 2024.

EBITDA 為 3.6 億美元，較上年的 3.26 億美元成長 10%。EBITDA 利潤率從 29.8% 擴大 150 個基點至 31.3%，這主要歸功於我們的成本削減計劃，該計劃將繼續推動利潤率的提高和 2024 年利用率的提高。

2024 operating cash flow was $144 million compared to $389 million. The decrease was primarily a result of increased inventories, as we prepare to execute on our new channel inventory strategy, deliver our new decking and railing products, and prepare for the 2025 decking season.

2024 年營運現金流為 1.44 億美元，去年同期為 3.89 億美元。下降主要是由於庫存增加，因為我們準備好執行新的渠道庫存策略，交付新的甲板和欄桿產品，並為 2025 年的甲板季節做準備。

Consistent with our capital allocation strategy and continued confidence in our long-term outlook, we returned over $100 million to our shareholders, in 2024, through the repurchase of 1.6 million shares of our outstanding common stock.

根據我們的資本配置策略和對長期前景的持續信心，我們在 2024 年透過回購 160 萬股已發行普通股，向股東返還了超過 1 億美元。

We also invested $232 million in capital expenditures in 2024, primarily related to the build-out of the Little Rock, Arkansas facility. Our outlook for Little Rock remains the same.

我們也在 2024 年投資了 2.32 億美元的資本支出，主要用於阿肯色州小石城工廠的建設。我們對小石城的展望保持不變。

As a reminder, the total CapEx, for the facility, is expected to be approximately $550 million, of which we have already invested $408 million.

提醒一下，該設施的總資本支出預計約為 5.5 億美元，其中我們已經投資 4.08 億美元。

Once this project is completed, our capital expenditures are expected to return to historical levels of 5% to 6% of revenue, which will result in a significant increase in our annual free cash flow, beginning in 2026.

一旦該項目完成，我們的資本支出預計將恢復到收入的 5% 至 6% 的歷史水平，這將導致從 2026 年開始我們的年度自由現金流大幅增加。

Recycled plastic processing, in Arkansas, is now in startup phase, with employees hired and being trained.

阿肯色州的再生塑膠加工目前正處於啟動階段，正在招募員工並進行培訓。

As a reminder, in 2025, we expect the associated one-time startup cost to total approximately $5 million to $8 million and the associated annualized appreciation to be approximately $10 million, with the official production starting in the second quarter of 2025. These operations are expected to run at target utilization rates by the third quarter, with startup costs ending at that point.

提醒一下，到 2025 年，我們預計相關的一次性啟動成本總計約為 500 萬至 800 萬美元，相關的年化增值約為 1000 萬美元，正式生產將於 2025 年第二季開始。預計這些業務將在第三季達到目標利用率，屆時啟動成本也將結束。

Also, as mentioned last quarter, the startup of our Arkansas decking lines is slated for early 2027. At that time, we expect the one-time startup cost to be approximately $12 million, beginning in the first half of 2027, with associated annualized appreciation of $20 million, beginning at the same time. We expect these operations to be running at target utilization rates by the end of 2027.

此外，正如上個季度提到的那樣，我們阿肯色州甲板生產線的啟動時間計劃於 2027 年初。屆時，我們預計一次性啟動成本約為 1,200 萬美元，從 2027 年上半年開始，相關年化增值額將達到 2,000 萬美元，同時也將開始。我們預計這些業務到 2027 年底將達到目標利用率。

Now, turning to our 2025 guidance. For the full-year 2025, we expect net sales to be in the range of $1.21 billion to 1.23 billion, representing a year-over-year growth of 5% to 7%.

現在，我們來談談我們的 2025 年指導。我們預計 2025 年全年淨銷售額將在 12.1 億美元至 12.3 億美元之間，年增 5% 至 7%。

As a reminder, in 2024, we shifted the timing of our Early Buy program to January, which means that our 2025 program is in full swing and early indications are positive.

提醒一下，2024 年，我們將早期購買計劃的時間改為 1 月，這意味著我們的 2025 年計劃正在全面展開，而且早期跡像是積極的。

Adjusted EBITDA margin is expected to exceed 31%, consistent with 2024's record year, excluding the one-time Arkansas startup costs, restructuring costs related to digital transformation, and railing transition costs of approximately $15 million to $20 million, in the aggregate.

調整後的 EBITDA 利潤率預計將超過 31%，與 2024 年的創紀錄水平一致，不包括阿肯色州的一次性啟動成本、與數位轉型相關的重組成本以及總計約 1500 萬至 2000 萬美元的軌道過渡成本。

SG&A expenses are expected to be approximately 16% of net sales. Our interest expense is anticipated to be $4 million to $6 million, while depreciation, in the range of $60 million to $63 million.

銷售、一般及行政開支預計約佔淨銷售額的 16%。我們的利息支出預計為 400 萬至 600 萬美元，而折舊支出預計在 6,000 萬至 6,300 萬美元之間。

We are projecting an effective tax rate of approximately 25% to 26%. And capital expenditures are projected to be approximately $200 million for the full year, as we continue the development of the Arkansas facility.

我們預計有效稅率約為25%至26%。隨著我們繼續開發阿肯色州工廠，預計全年資本支出約為 2 億美元。

Based on the inventory strategy highlighted earlier, 2025 first-quarter sales will include our Early Buy program, assumed at levels similar to last year, but will not include the channel inventory bills to the same degree as in 2024.

根據前面強調的庫存策略，2025 年第一季的銷售額將包括我們的早期購買計劃，假設水平與去年相似，但不會像 2024 年那樣包括渠道庫存賬單。

This strategy will change the quarterly timing of 2025 sales as compared to prior year, with approximately $40 million shifting out of the first quarter into the remainder of the year. As a result, we are guiding the first-quarter 2025 revenues to be between $325 million to $330 million.

與去年相比，這項策略將改變 2025 年銷售的季度時間，約 4,000 萬美元將從第一季轉移到今年剩餘時間。因此，我們預計 2025 年第一季的營收將在 3.25 億美元至 3.3 億美元之間。

With that, I will now turn the call back to Bryan for his closing remarks.

說完這些，我現在將電話轉回給布萊恩，請他作最後發言。

Thank you, Brenda.

謝謝你，布倫達。

Our market leadership, brand equity, reputation, and robust product portfolio have attracted the largest and most trusted network of distributors, dealers, and home centers in North America.

我們的市場領導地位、品牌資產、聲譽和強大的產品組合吸引了北美最大、最值得信賴的經銷商、經銷商和家居中心網路。

We recently held our annual TrexPRO Platinum Event and we were encouraged by the expressions of confidence and we share their enthusiasm for growth in 2025.

我們最近舉辦了年度 TrexPRO 白金活動，他們的信心令我們深受鼓舞，我們也對他們對 2025 年的成長充滿熱情。

For our part, we doubled down on our commitment to innovation, with many new products launching in 2025, as a part of our Performance-Engineered for Your Life Outdoors campaign, a new program designed to both strengthen and expand our existing market leadership position. Stay tuned for more on that as the year progresses.

就我們而言，我們加倍致力於創新，並將於 2025 年推出許多新產品，作為我們「為您的戶外生活打造性能」活動的一部分，這是一項旨在加強和擴大我們現有的市場領導地位的新計劃。隨著時間的推移，請繼續關注更多相關內容。

We appreciate the support of our channel partners and the tireless work of the Trex team to build our business, while maintaining the highest standards of quality and integrity. Together, we are positioned to capture the greatest share of the industry's growth opportunities.

我們感謝通路合作夥伴的支持以及 Trex 團隊為打造我們的業務而不懈的努力，同時保持最高的品質和誠信標準。透過共同努力，我們將能夠抓住該行業最大的成長機會。

Operator, please open the call to questions.

接線員，請打開電話詢問。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指令）

Rafe Jadrosich, Bank of America.

美國銀行的 Rafe Jadrosich。

Hi. Good afternoon. Thanks for taking my question.

你好。午安.感謝您回答我的問題。

Hi, Rafe.

你好，Rafe。

Brian, first, I just wanted to ask about -- on the distribution side. This has been a pretty, [called], volatile period, where there's been a lot of distribution changes that we've seen you and one of your (inaudible) competitors announced.

布萊恩，首先，我只想問一下──關於分銷方面的問題。這是一個相當動蕩的時期，我們看到您和您的一個（聽不清楚）競爭對手宣布了很多分銷變化。

Can you just talk about some of the changes that that have happened? Do you anticipate any more, going forward? And, maybe, like how it positions you, going forward?

您能談談已經發生的一些變化嗎？未來您還期待更多嗎？而也許，它如何定位你，讓你繼續前進？

I expect that you will see a much calmer environment in 2025. We talked about the decking and railing alignment strategy, extensively, in 2024. And a lot of those distribution changes were related to that, as well as ensuring that we had the right number of distributors and appropriate coverage across the country.

我預計到 2025 年你將會看到一個更平靜的環境。我們在 2024 年廣泛討論了甲板和欄桿的對齊策略。許多分銷變化都與此相關，同時確保我們擁有適當數量的分銷商和在全國範圍內適當的覆蓋範圍。

So, again, I think you'll see a much calmer period of time in 2025.

所以，我再次認為，2025 年將會是個更平靜的時期。

The other thing that we'll see is the infill. We didn't necessarily see all of those distributors infilled during the fourth quarter so we'll see some of that in the first quarter.

我們將看到的另一件事是填充。我們不一定會看到所有這些分銷商在第四季度都得到填補，所以我們會在第一季看到其中一些。

And, then, there was also some swapping of inventory between distributors that were carrying a competitor brand. And, then, those two distributors working through existing inventories. And, then, swapping them so that they can service their new customers.

此外，銷售競爭品牌的經銷商之間也進行了一些庫存交換。然後，這兩個經銷商就開始處理現有庫存。然後，進行交換，以便他們可以為新客戶提供服務。

Great.

偉大的。

And, then, on the railing side. You'd mentioned that you'd secured commitments for railing products. Can you just talk about what that process is like and what that commitment means?

然後，在欄桿那邊。您曾提到您已獲得欄桿產品的承諾。您能談談這個過程是怎樣的以及這個承諾意味著什麼嗎？

And, then, just trying to get an understanding on how much visibility that gives you on to the growth, going forward?

然後，只是想了解這對未來的成長有多大的可見度？

Yeah. There's three stages of that commitment. And the first stage is making sure that you can get that product to the marketplace, effectively. And that relies upon the distributors.

是的。這項承諾分為三個階段。第一階段是確保您能夠有效地將產品推向市場。而這取決於分銷商。

The second piece of that is making sure that we can get that into the pro-channel dealer, as well as retail centers, where it makes sense. So where these are new products -- that's exactly what the team is, underway, doing, at this point. They were, during the fourth quarter. They'll continue to do that.

第二部分是確保我們能夠將其引入專業通路經銷商以及零售中心，這是合理的。所以，這些都是新產品——這正是團隊目前正在做的事情。在第四季度，情況確實如此。他們會繼續這樣做。

And, then, finally, it's going to be that end consumer. You will see a significant amount of marketing of these new railing systems. But, also, our sales team is out, working with the contractors and where they are using competitive product, today. Whether it's an aluminum railing system, a steel railing system, a mesh railing system, or vinyl PVC, we have products that can match that.

最後，它將成為最終消費者。您會看到大量關於這些新型欄桿系統的行銷。但是，我們的銷售團隊也在外面與承包商一起工作，他們今天正在使用有競爭力的產品。無論是鋁製欄桿系統、鋼製欄桿系統、網狀欄桿系統或乙烯基 PVC，我們都有可匹配的產品。

That then allows the consumer to have their deck [build] with one manufacturer -- your decking, railing, fasteners, all coming from Trex -- and having the confidence that your warranty is going to be supported by a market leader.

這樣，消費者就可以透過一家製造商來建造甲板 — — 甲板、欄桿、緊固件全部來自 Trex — — 並且可以放心，您的保固將得到市場領導者的支持。

Thanks. Appreciate it.

謝謝。非常感謝。

Thanks, Rafe.

謝謝，雷夫。

Keith Hughes, Truist.

基斯·休斯，Truist。

Yes. Thank you. The guidance calls for about 6% or so revenue growth, how much of that would come from decking? And how much of that would come from railing?

是的。謝謝。該指導要求收入增長約 6% 左右，其中有多少來自裝飾業務？其中有多少是來自欄桿？

We're not going to split out, necessarily, the exact difference. I did say, in my commentary, we expected double-digit growth on the railing side of the business.

我們不一定要分出確切的差異。我在評論中確實說過，我們預計欄桿業務將實現兩位數的成長。

You'd expect to see that with infill, as well as taking some share away. And, then, the difference of it will be coming through the decking side of the business.

您希望看到這一點，既可以填充，又可以奪走部分份額。那麼，它的差異將透過業務的裝飾方面體現出來。

Okay.

好的。

And are you projecting your production to whatever percentage of that is railing? Are you assuming to produce at that level of railing, during the year?

您是否預期您的產量將佔欄桿總產量的百分比？您是否計劃在年內達到該水準的生產？

Railing is a combination of internally manufactured product, as well as some sourced products. So, yes, we do expect that we will be expanding our railing manufacturing, as you saw with our inventory at year end.

欄桿是內部製造的產品以及一些購買產品的組合。因此，是的，我們確實希望擴大我們的欄桿製造規模，就像您在年底看到我們的庫存一樣。

We built inventory, especially on the extruded and powder coated side of things so that we could service the marketplace and be confident we have plenty of inventory, as we get out to the busy season.

我們建立了庫存，特別是擠壓和粉末塗層產品，以便我們能夠服務市場，並確信在旺季到來時我們有足夠的庫存。

Okay. Final question.

好的。最後一個問題。

The inventory level you ended the year at, if everything goes to plan, is that about what we see you in at, at the end of '25?

如果一切按計劃進行，那麼您年底的庫存水準與 25 年底的庫存水準差不多嗎？

Yeah. We feel pretty good about that inventory level. There may be a slight decrease from that but I wouldn't expect it to be going up, from there.

是的。我們對該庫存水準感到非常滿意。可能會略有下降，但我預計不會再上升。

We feel it's in the right place, given the new products we're coming to market with. And it'll be a structural change to our balance sheet.

考慮到我們即將向市場推出的新產品，我們覺得這個地點是正確的。這將對我們的資產負債表產生結構性變化。

Thank you.

謝謝。

Thanks.

謝謝。

Susan Maklari, Goldman Sachs.

高盛的蘇珊馬克拉里 (Susan Maklari)。

Thank you. Good afternoon, everyone.

謝謝。大家下午好。

My first question is talking to demand. One of the things that you mentioned, in your commentary, is an acceleration at some of the lower price points of the product offerings that you have out there. Can you talk about what gives you the confidence and how you're thinking about getting that consumer engaged, given the macro environment and the backdrop that we're in?

我的第一個問題是關於需求。您在評論中提到的一件事是，你們提供的一些低價產品的價格正在加速上漲。考慮到我們所處的宏觀環境和背景，您能否談談是什麼讓您有信心，以及您如何考慮讓消費者參與？

Specifically, during the fourth quarter, we saw a high-single digit, overall. That was an acceleration from the third quarter.

具體來說，在第四季度，我們整體看到了高個位數的成長。這是自第三季以來的一個加速。

On the premium side of the business, we saw a double-digit increase on that. So it was a pretty significant increase.

在業務的高端方面，我們看到了兩位數的成長。因此，這是一個相當顯著的增長。

We saw a consumer-confidence increase. Now, it's dropped a little bit, over the past month or so. But we saw that flow through the channel.

我們看到消費者信心有所增強。現在，在過去一個月左右的時間裡，它有所下降。但我們看見了該流體通過該通道。

In talking with our channel partners with the new products we have, with the new decking lineups that we have, and understanding where the consumer's head is, at this point, we feel that 5% to 7% is the right range. And we have the support in place to be able to drive that kind of growth for the company.

在與我們的通路夥伴討論我們的新產品、新的甲板陣容，並了解消費者的想法後，我們認為 5% 到 7% 是正確的範圍。而我們已經做好了支持，能夠推動公司實現這樣的成長。

Okay.

好的。

And, then, turning to the margin. Can you talk a bit about some of the puts-and-takes that you are expecting this year, especially as it relates to the gross margin with the recycling capacity at Little Rock starting to ramp?

然後，轉向邊緣。您能否談談今年預計的一些利弊，尤其是與小石城回收能力開始提升有關的毛利率？

And, then, any cost savings initiatives or other company-specific efforts that can come through in there, as well?

那麼，有什麼成本節約措施或其他公司特定的努力也可以實現嗎？

Yeah. In general, the gross margin will appear to be flat, off of a very high gross margin that we ended 2024 of, right?

是的。總體而言，毛利率看起來會保持平穩，因為我們在 2024 年底的毛利率非常高，對嗎？

So you will see a little bit of pressure coming from the depreciation that we'll experience from Little Rock, excluding some of the one-time costs there. Again, you'll see that nice elevated margin, at that 41%, 42% for the for the full year.

因此，你會看到，我們在小石城經歷的貶值會帶來一點壓力，不包括那裡的一些一次性成本。再次，您會看到利潤率大幅提升，全年利潤率達到 41% 至 42%。

And, again, a lot of that will be continuous improvement offsetting some of the other inflationary pressures that we see, like, increased labor.

而且，其中許多將是持續的改進，以抵消我們看到的一些其他通膨壓力，例如勞動力增加。

And we've been working through the tariff implications that -- and, then, we're still working through that, as well.

我們一直在研究關稅影響問題——而且，我們仍在努力解決這個問題。

Okay. That's helpful. Thank you. Good luck with everything.

好的。這很有幫助。謝謝。祝一切順利。

Thank you.

謝謝。

Ryan Merkel, William Blair.

瑞安·默克爾、威廉·布萊爾。

Hey, everyone. Thanks for the questions.

嘿，大家好。感謝您的提問。

I wanted to ask on 2Q sales. I think you mentioned flat year over year. That's a little different than I was thinking.

我想詢問第二季的銷售情況。我認為您提到了同比持平。這與我的想法有些不同。

Can you just talk about why that's flat? And, then, how much of the $40 million dollar shift -- how much of that impacts 2Q?

你能說說為什麼它是平的嗎？那麼，4,000 萬美元的轉移對第二季的影響有多大？

The $40 million will shift into the rest of the year. We haven't really provided a split on what that would be. It took us time to be able to work that inventory down.

這 4,000 萬美元將轉移到今年剩餘時間。我們還沒有真正提供具體數字。我們花了一些時間才能夠減少這些庫存。

The majority of it's going to be into Q2 and Q3. The reason we feel as though Q2 is going to be flattish is because of the revised inventory strategy.

大部分將集中在第二季和第三季。我們感覺第二季業績將持平的原因在於庫存策略的修改。

Recall, last year in the first quarter, the channel really loaded up. We worked with them. We wanted to make sure that we were going to service our customers, which the channel did a great job with that last year. I expect they'll do a great job of it this year. We have the inventory to be able to support that.

回想一下，去年第一季度，該頻道的流量確實很大。我們和他們合作。我們希望確保能夠為客戶提供服務，去年通路在這方面做得很好。我期望他們今年能夠出色地完成這項工作。我們有庫存可以支持這一點。

So as Brenda talked about, a revised strategy is to make sure we're not getting too far ahead in the channel. This strategy allows us to add capacity. If we start seeing things that are a little bit stronger, we can bring on a couple of lines and continue running those for the rest of the year. If we see things are a little bit weaker, we can drop those couple of lines and we can bring inventory to get it back in line.

正如布倫達所說，修改後的策略是為了確保我們不會在頻道上走得太遠。這項策略使我們能夠增加產能。如果我們開始看到一些更強勁的跡象，我們可以引入幾條生產線，並在今年剩餘時間內繼續運行。如果我們發現情況稍微變弱，我們可以放棄這幾條線路，並增加庫存以使其回到正軌。

So we're using our balance sheet to be able to manage it, rather than having it already booked through revenue and, then, have to worry about taking it back out of the distribution or dealer channel.

因此，我們使用資產負債表來管理它，而不是透過收入來記錄它，然後再擔心將其從分銷或經銷商通路中取出。

I see. Okay. So the inventory strategy change, that impacts the 2Q comparison. Got it. Okay.

我懂了。好的。因此庫存策略的變化會影響第二季的比較。知道了。好的。

And, then, in terms of the EBITDA margin cadence, maybe a little help there, if you could. It feels, to me, like it could be more second-half loaded, in terms of the margins. But given the change in the inventory strategy, is it actually -- it's more level loaded, through the year? How do we think about that?

然後，就 EBITDA 利潤率節奏而言，如果可以的話，也許會有一點幫助。在我看來，從利潤率來看，下半場的情況可能會更加嚴峻。但考慮到庫存策略的變化，它是否實際上——全年的庫存水準都會更高？我們該如何看待這個問題？

It is more back-half loaded. You are correct.

它的後半部分裝載較多。你是對的。

One thing to recognize in, from an SG&A perspective, you will see more expense coming through in Q1 and Q2, as we launch our new products. So you'll see more, from a marketing perspective there.

需要認識到的一點是，從銷售、一般及行政開支的角度來看，隨著我們推出新產品，您將看到第一季和第二季的支出增加。因此，從行銷角度來看，您會看到更多。

As well as we've got more going on with some new wins in Home Depot, on the retail side. So we'll have more marketing in the first half of the year, which has -- again, that elevated spend in SG&A puts a little more pressure on EBITDA.

我們在零售方面也取得了更多進展，在 Home Depot 取得了一些新的勝利。因此，我們將在上半年進行更多的行銷，這再次增加了銷售、一般及行政開支，給 EBITDA 帶來了更大的壓力。

But you'll see it start swing in Q2 but, then, more in Q3 and Q4.

但你會看到它在第二季開始波動，然後在第三季和第四季波動更大。

All right. That's very helpful. Thanks.

好的。這非常有幫助。謝謝。

Thanks, Ryan.

謝謝，瑞安。

Tim Wjos, Baird.

蒂姆·沃斯，貝爾德。

Hey, everybody. Thanks for all the details.

嘿，大家好。感謝您提供的所有詳細資訊。

Maybe just on the top line, the 5% to 7%, is that relative to the R&R market, Brian? Is purely sell-through, in your eyes? Or is there some things around pricing? And some of the channel activities, that has an impact on that, as well?

也許只是就頂線而言，5% 到 7%，這是相對於 R&R 市場而言的嗎，布萊恩？在您看來，這純粹是銷售嗎？或者是否存在一些與定價有關的事情？有些通路活動也會對此產生影響嗎？

We took just a little bit of pricing, going into the year. Less than 1% of that will flow through, as we are seeing increased incentives, rebate programs in the marketplace.

進入今年，我們只進行了一點定價。由於我們看到市場上的激勵措施和回扣計劃不斷增加，其中只有不到 1% 會流入。

So we won't really see that flow through to the bottom line or even to offset inflation, at this point. Moreso just for the incentive side of things.

因此，目前我們不會看到這種流動實際上影響到利潤，甚至抵消通貨膨脹。更重要的是事物的激勵面。

I mentioned, in my commentary, that I expect repair and remodel to be flat, over the course of the year. So by the time we get to the end of the year, I do expect that's the level of sell-through that we'll see in the channel.

我在我的評論中提到，我預計全年維修和改造將會持平。因此，到今年年底，我確實預計我們將在該管道看到這樣的銷售水平。

There'll be a little bit of loading we'll see in with some of the new products. But as you're aware, in this industry, the channel tends to bring its inventory back down, at the end of the year, recognizing it's a lower volume portion of the year.

我們會看到一些新產品的載入情況。但如你所知，在這個行業中，通路往往會在年底降低庫存，因為這是一年中銷量較低的時期。

So it will be roughly in line with what we expect sell-through to be in 2025.

因此它將與我們預期的 2025 年銷售量大致一致。

Okay.

好的。

So the inventory in the channel should really be on a year-over-year basis, pretty similar to how 2024 ended (multiple speakers) --

因此，通路庫存實際上應該與去年同期相比，與 2024 年結束時的情況非常相似（多位發言者）——

I would expect to see that.

我希望看到這一點。

Okay. Great.

好的。偉大的。

And, then, just on the margins. You talked about accelerating digital transformation and it sounds like there's some restructuring that's excluded, what exactly are you doing there? And if you just add a little bit of color on what exactly that is.

然後，就只是在邊緣了。您談到加速數位轉型，聽起來好像有一些重組被排除在外，您到底在那裡做什麼？如果再添加一點顏色，就能了解那到底是什麼。

Yeah. So I think everybody's aware that we hired a new CIO, in Q4 of this past year. And as he's come into the organization, we are really accelerating our work around digital transformation.

是的。所以我想大家都知道我們在今年第四季聘請了一位新的資訊長。隨著他加入公司，我們確實正在加快數位轉型的工作。

And there's really three phases of that work. There's operational efficiencies and automation, internally, across the organization. There's a lot of work being done around harnessing the power of data -- data with our distributors, data with our dealers, and, then, other data that we have, internally. And, then, the third area, there's a lot that's happening around the channel.

這項工作其實分為三個階段。整個組織內部的營運效率和自動化。我們在利用數據的力量方面做了很多工作——我們分銷商的數據、我們經銷商的數據，以及我們內部擁有的其他數據。然後，第三個領域，海峽周圍發生了很多事情。

So really looking at the consumer journey and enhancing the overall consumer and customer experience, making sure we're ahead of what's happening within the marketplace, around there.

因此，真正專注於消費者的旅程並提升整體消費者和客戶體驗，確保我們領先於市場正在發生的事情。

And so, with that new CIO coming in, he's got some great initiatives in front of us that will require some restructuring -- some assets that we have, we might have to write off and things like that -- that we're that we're working through, internally.

因此，隨著新任資訊長的上任，他為我們帶來了一些重大舉措，這些舉措需要進行一些重組——我們可能不得不註銷一些資產之類的——我們正在內部努力解決這些問題。

A lot of that will end up in just normal SG&A. That's part of our increase in SG&A as well. But we're really excited about the efficiencies and the value that that's going to drive for us, long term.

其中許多最終都只是正常的銷售、一般及行政費用。這也是我們銷售、一般及行政費用增加的一部分。但我們對其長期帶來的效率和價值感到非常興奮。

Okay. Great. Thanks a lot for the time.

好的。偉大的。非常感謝您抽出時間。

Thanks, Tim,

謝謝，提姆，

Yeah.

是的。

John Lovallo, UBS.

瑞銀的約翰·洛瓦洛。

Hey, guys. Thank you for taking my questions.

嘿，大家好。感謝您回答我的問題。

The first one is just on the expectation for R&R to be flat, in 2025. It seems like, maybe, a little bit of a downshift from what folks were thinking before and what you, guys, were thinking before.

第一個只是預期 2025 年 R&R 將持平。這看起來可能與人們之前的想法以及你們之前的想法有些不同。

Curious on the cadence there, is that more back-half weighted than first-half weighted? And is there any risk to the conversion, in your mind, in a slower R&R market?

對那裡的節奏感到好奇，後半部的權重是否比前半部的權重更大？您認為，在 R&R 市場放緩的情況下，轉換是否有風險？

It is slightly weaker than what I talked about in the third quarter. We've not seen a decline in interest rates, in the marketplace. That's why we're looking at it, from a flat perspective. We think it's prudent to plan that way, recognizing that the rest of the R&R market will continue to struggle at that lower rate. But we still see great opportunities with the products we're coming to market with.

比我第三季談到的要稍微弱一些。我們尚未看到市場利率下降。這就是為什麼我們從平面的角度來看待它。我們認為這樣的規劃是明智之舉，因為我們認為其餘的 R&R 市場在較低的利率下仍將繼續掙扎。但我們仍然看到我們即將推向市場的產品具有巨大的機會。

I think when you talk about the risk of being back-loaded, the reality is this business operates in the send quarter and third quarter. And you've got to see those decking sales coming through, during those two quarters.

我認為，當您談到後期加載的風險時，現實情況是這項業務在發送季度和第三季度運營。您必須看到這兩個季度的裝飾板銷售情況。

So if it's too heavily back-loaded, where we see a really strong economy, starting mid-third quarter, then that's probably a problem for us. But all the indications that we see, right now, based off of what we're hearing from our contractors, what we're hearing from our dealers, is that, as the weather allows, they are seeing good flow through, especially at the high end of the market -- that continues to perform very well.

因此，如果負擔過重，而我們看到從第三季中期開始經濟真正強勁，那麼這對我們來說可能是一個問題。但根據我們從承包商和經銷商那裡聽到的信息，我們現在看到的所有跡象表明，隨著天氣允許，他們看到了良好的流通，特別是在高端市場——繼續表現良好。

Okay. That's helpful.

好的。這很有幫助。

And, then, maybe sticking on the product launches. I think you said that new products accounted for 20% of 2024 sales. What's the expectation to this, as we move into 2025?

然後，也許會堅持產品發布。我記得你說過新產品佔 2024 年銷售額的 20%。當我們進入 2025 年時，對此有何期望？

Well, you've heard us talk about a significant number of product launches. That will continue to expand, as we begin to commercialize them.

好吧，您已經聽到我們談論了大量產品的發布。隨著我們開始將其商業化，這一範圍也將繼續擴大。

Two new colors of Lineage just hitting the market, now. Three new colors and all-new relaunch of our Select product line. As well as, we could probably say, roughly doubling the size of our railing portfolio, at this point.

目前，Lineage 的兩種新顏色剛剛上市。三種新顏色以及我們精選產品線的全新推出。並且，我們可以說，目前我們的欄桿產品組合規模增加了一倍。

So a significant increase, in that number. And we'll continue to launch new products every six to nine months. We've been on a much faster track than that, over the past year.

因此，這個數字顯著增加。我們將繼續每六到九個月推出新產品。在過去的一年裡，我們的進展速度比這快得多。

Great. Thanks, Bryan.

偉大的。謝謝，布萊恩。

Phil Ng, Jefferies.

傑富瑞 (Jefferies) 的 Phil Ng。

Hey, guys. It's [Maggie], on for Phil.

嘿，大家好。我是 [Maggie]，代替 Phil 上場。

Going back to railing, maybe, if you could talk about how that margin profile compares to decking, especially since for 2025, you're expecting higher growth in railing?

回到欄桿的話題，也許，您可以談談該利潤率狀況與甲板相比如何，特別是因為到 2025 年，您預計欄桿的增長會更高？

And, then, maybe, if you could talk about the attachment rate you've historically seen and, then, if you're targeting a higher rate, with the new distribution lens?

然後，也許，您可以談談您歷史上看到的附著率，然後，如果您以更高的附著率為目標，請使用新的分佈視角呢？

Yeah. Much like decking, there is going to be a pretty wide range of margin on the railing programs that we have. I think it's important to note that, as a management team, we are very focused on driving appropriate gross margins -- that we can support the elevated level of branding and ability to drive the Trex brand name to that and customers.

是的。與甲板類似，我們的欄桿專案的裕度範圍相當廣泛。我認為值得注意的是，作為管理團隊，我們非常注重提高毛利率——我們可以支持更高水平的品牌建設以及將 Trex 品牌推向客戶的能力。

So we really work to drive that overall fleet margin, as an organization. And we'll continue to do that, as we go forward.

因此，作為一個組織，我們確實致力於提高整體船隊利潤率。隨著我們不斷前進，我們將繼續這樣做。

Your second question, real quick, was?

你的第二個問題是什麼？

The historical attachment rates for railing. And, then, if you're targeting a new level?

欄桿的歷史附著率。那麼，如果您瞄準一個新的水平呢？

Yeah. It varies by the region. And I always struggle using an overall attachment rate because of how different it is by region.

是的。根據地區不同而有所差異。我總是很難使用總體附著率，因為不同地區的附著率有很大差異。

If we think up in the northeast, the majority of our products have been Northeast- and Midwest-centric, from a design perspective. We have a much higher attachment rate in those marketplaces.

如果我們考慮東北地區，從設計的角度來看，我們的大多數產品都是以東北和中西部為中心的。我們在這些市場的依附率要高得多。

Now, we go out west, a lot of our new products have very much more of a western theme to it.

現在，我們走向西部，我們的許多新產品都具有更多的西部主題。

If you were to ask me on an overall basis, probably around 20%, from an overall perspective. And, yes, we would expect to significantly increase that attachment rate, as we look at over the next five years.

如果你從整體上問我，從整體角度來看，大概是 20% 左右。是的，我們預計未來五年內附著率將大幅提高。

Okay.

好的。

And, then, just to put a finer point on the first part, around gross margins, you would not expect the higher growth rate in railing, this year, to be gross margin dilutive, is that the right takeaway?

然後，為了更詳細地說明第一部分，關於毛利率，您不會認為今年欄桿行業的較高增長率會稀釋毛利率，這是正確的結論嗎？

It's inclusive. The results of that are inclusive in the overall guidance that we've provided for the year.

它是包容性的。其結果已包含在我們為今年提供的整體指導中。

Okay.

好的。

And, then, Brenda, you mentioned evaluating the potential impact of tariffs. Maybe, if you could give a little more color around that, maybe your COGS exposure? And, then, do you have a price increase, out there, to offset that?

然後，布倫達，你提到評估關稅的潛在影響。也許，如果您可以提供更多細節，也許可以說明您的 COGS 風險？那麼，你們會提高價格來抵銷這項影響嗎？

Overall, from a cost-of-goods-sold perspective, Trex has a very low amount that's sourced from the overseas market. I did mention some of these railing programs are more sourced than made inside. But, again, we manufacture a lot of it. It is a small piece of our COGS.

整體而言，從銷售成本的角度來看，Trex 來自海外市場的採購量非常低。我確實提到過，其中一些欄桿項目更多的是來自內部，而不是內部製造。但是，我們確實生產了很多。這只是我們的銷貨成本（COGS）的一小部分。

Let me turn to Brenda -- talk about mitigation.

讓我來和布倫達談談緩解措施。

Yeah. We've got great relationships with our supplier. And, again, the small amount that we do have, that Brian referenced we're having, we're in the middle of negotiating with them, now.

是的。我們與供應商的關係非常好。而且，我們確實擁有少量的資金，正如布萊恩所提到的，我們現在正在與他們進行談判。

And we also have dual source. And we've shared that before, on the call, so we do have local source suppliers, as well.

而且我們還有雙重來源。我們之前在電話會議上已經分享過這一點，所以我們也確實有當地來源供應商。

So we have a lot of ways in which we can help mitigate the impact of the tariffs.

因此，我們有許多方法可以幫助減輕關稅的影響。

Okay. Great. Thanks, guys.

好的。偉大的。謝謝大家。

Thank you.

謝謝。

Trevor Allinson, Wolfe Research.

艾林森（Trevor Allinson），沃爾夫研究公司（Wolfe Research）。

Hi. Good evening. Thank you for taking my questions.

你好。晚安.感謝您回答我的問題。

First, on your expectation for premium to continue outperforming in 2025, can you quantify the growth you're expecting from more premium products versus entry level, within your 2025 sales guidance?

首先，對於您對高端產品在 2025 年繼續表現出色這一預期，您能否在 2025 年的銷售指導範圍內量化您預期的高端產品相對於入門級產品的增長情況？

And, then, given stronger demand at more premium price points, should we expect some mix margin tailwind, in 2025?

那麼，考慮到更高價位的需求更強勁，我們是否應該預期 2025 年混合利潤率將出現一些順風？

Yeah. We're not going to bifurcate the growth levels of the different parts of our business. It is inclusive of the guidance that we provided.

是的。我們不會將業務不同部分的成長水準分化。它包括我們提供的指導。

But I did mention, earlier, that I do expect that we will continue to see good performance from those higher end consumers, out there. The wealth effect [and] allowing them to continue to do home improvement projects.

但我之前確實提到過，我確實預計我們將繼續看到高端消費者的良好表現。財富效應使他們能夠繼續進行家居裝修專案。

Okay.

好的。

Just a quick follow-up on that one. Do you see a difference in margin profile between the two? And would you expect that to be a benefit year over year, then, in 2025?

只是對此進行快速跟進。您覺得兩者的利潤率有什麼不同嗎？那麼，您是否預計到 2025 年，這將帶來逐年成長的好處？

In some cases, yeah. We do have different margins between the high end and low end. And just because it's more of an entry level product doesn't mean that it's a low margin, in itself.

在某些情況下，是的。我們的高端和低端之間的利潤確實不同。而且，僅僅因為它更像是一種入門級產品，並不意味著它的利潤率本身就很低。

But there are different levels there. And we expect, from an, overall, mix perspective, probably similar to what we saw this year, in 2024, as it relates to decking.

但那裡有不同的層次。我們預計，從整體組合角度來看，2024 年與裝飾相關的情況可能與今年類似。

Okay. Understood.

好的。明白了。

And, then, second question would be just on sell-through trends, here. It seems like 4Q was up, pretty positively. It sounds like, maybe, you're expecting things to slow -- to be more flattish, here.

那麼，第二個問題只是關於銷售趨勢。看起來第四季的成長相當積極。聽起來，也許，你預期事情會進展緩慢——變得更加平穩。

Can you just talk about what you've seen, more recently? And, perhaps, I expect sell-through to trend throughout the year?

能談談最近看到的情況嗎？也許，我預期銷售量會全年呈現上升趨勢？

Thanks.

謝謝。

Yeah. One quarter doesn't make a year. While it was positive from what we had seen during the first three quarters of the year, we did see volatility over the course of the year.

是的。一個季度不等於一年。雖然從今年前三個季度的情況來看這是積極的，但我們確實看到全年出現波動。

I wish I could give you the level of detail that you'd like of how does that progress over the course of the year. That's where we -- the 5% to 7%, on an overall year basis, is our best estimate of where it comes together.

我希望能夠向您提供您想要的詳細程度，說明這一年中的進展。這就是我們 — — 全年來看，5% 到 7% 是我們對其綜合成長率的最佳估計。

And we'll continue to provide updates, as we see the results.

一旦發現結果，我們將繼續提供更新。

Okay. Appreciate all the color. Good luck moving forward.

好的。欣賞所有的色彩。祝你未來好運。

Kurt Yinger, D.A. Davidson.

庫爾特·英格（Kurt Yinger），地方檢察官戴維森。

Great. Thanks and good afternoon, everyone.

偉大的。謝謝，大家下午好。

Brian, you had mentioned that the three stages in railing -- and the last one being consumer pull-through. I'm curious, when you talk to your sales folks, what's the pushback? Or what is one or two things that you hear, in terms of what Trex needs to do, in order to really convert more of those contractors and increase that attach rate?

布萊恩，你提到了欄桿的三個階段——最後一個階段是消費者拉動。我很好奇，當您與銷售人員交談時，遇到了什麼阻力？或者，就 Trex 需要做什麼而言，您聽說過一兩件事，以便真正轉換更多的承包商並提高附加率？

Well, we've been hearing this for the last two years in speaking with our contractors. Trex, if you had these products, we would be putting your products on these decks.

嗯，過去兩年我們在與承包商交談時就聽過這種說法。Trex，如果你們有這些產品，我們就會把你們的產品放在這些甲板上。

We have a contractor out west that does about three-quarter of a million of a competitive product, today. We have that product that can allow him to replace that. Well, he's building a Trex deck today; now, he's going to be putting a Trex railing on, with that.

我們在西部有一個承包商，目前生產約75萬件競爭產品。我們有那個產品可以讓他取代那個。嗯，他今天正在建造一個 Trex 甲板；現在，他要把 Trex 欄桿裝上去。

So we see that across our Trex Pros. And that's the first place that we can start is, working with them. Then, making sure that we have the appropriate merchandizing displays in each one of our dealers.

我們在 Trex Pro 中也看到了這一點。我們可以先從與他們合作開始。然後，確保我們在每個經銷商都有適當的商品展示。

So those customers who are doing it more on a DIY basis, they're able to see that those products exist as well, too.

因此，那些更喜歡自己動手的客戶也能夠看到這些產品的存在。

Okay. Great. That makes sense.

好的。偉大的。這很有道理。

And, then, second, I apologize if I missed it, but can you talk a little bit more about the railing transition costs and what those are associated with? And timing?

其次，如果我錯過了，我很抱歉，但是您能否再多談談欄桿過渡成本以及與之相關的成本？時間呢？

The primary piece of that is going to be, first, the merchandizing cost. Given the amount of railing that we are launching, there is significant merchandizing to get into the field, as well as dealer resets.

其中最主要的部分首先是商品成本。考慮到我們推出的欄桿數量，需要進行大量的商品推銷以及經銷商重置。

And, then, a couple of situations where we're working with taking out competitors and programs around that.

然後，我們正針對一些情況開展工作，以消除競爭對手並制定相關計劃。

And you'll see that, mostly, first half?

您會看到，主要是上半部嗎？

Yeah.

是的。

Okay. Appreciate the color. Thank you.

好的。感謝色彩。謝謝。

The biggest piece of that's going to be the merchandizing impact.

其中最大的影響就是商品銷售方面的影響。

Anthony Pettinari, Citigroup.

花旗集團的安東尼‧佩蒂納裡 (Anthony Pettinari)。

Hi. This is Asher Sohnen, on for Anthony. Thanks for taking my question.

你好。這是阿舍爾·索恩 (Asher Sohnen)，代替安東尼上場。感謝您回答我的問題。

But I think you, heard, you said new product launches may be targeting more Western styles and markets. So can you just talk about which regions you see is, maybe, most attractive, from a demand or pricing position? And, then, are there any notable geographic white spaces you would call out?

但我想您聽過，您說新產品的發布可能針對更多的西方風格和市場。那麼，您能否從需求或定價的角度談談您認為哪些地區最具吸引力呢？那麼，您是否會指出哪些值得注意的地理空白區域？

Yeah. Well, what I said was more of our designs were Midwest- and Northeast-centric. The designs that we've put together and the products we've launched. There are areas that we were not participating in that primarily appealed. Those are the designs they wanted out west.

是的。嗯，我說過我們的設計比較是以中西部和東北部為中心的。我們所設計的和推出的產品。有些領域我們並沒有參與，但主要還是上訴。這些就是他們想要的西部設計。

It doesn't mean that in the southern marketplaces, in the northeast marketplaces, that those aren't designs they want.

這並不意味著在南部市場、在東北部市場，這些不是他們想要的設計。

Especially the new aluminum railing system or Select aluminum railing system, we've seen widespread interest in that product line. And we expect that's going to do extremely well, across the entire country.

特別是新型鋁製欄桿系統或精選鋁製欄桿系統，我們看到人們對該產品系列的廣泛興趣。我們預計，這項措施將在全國範圍內取得非常好的效果。

Okay. Thanks.

好的。謝謝。

And, then, I think you purchased, maybe, 100 million of stock, in 2024. How should we think about your appetite for purchases, as we move through 2025, particularly given kind of the temporarily elevated CapEx?

然後，我想你在 2024 年可能買了 1 億股股票。隨著我們進入 2025 年，我們應該如何看待您的購買意願，特別是考慮到資本支出暫時增加的情況？

We continue to have a program available to us, roughly 10% of the float of the company. So that's a program available to us.

我們將繼續執行一項計劃，約占公司流通股的 10%。這就是我們可以使用的程式。

And as we've looked at in the past, we see -- we have a program and we can be in the market.

正如我們過去所看到的，我們有一個計劃，我們可以進入市場。

And, yeah, we've been active, even when we've had higher capital requirements. So I wouldn't necessarily say that's something that would hold us back, if we see the right opportunity to be in the market.

是的，即使我們的資本要求更高，我們也一直很活躍。因此，如果我們看到進入市場的正確機會，我不會說這會阻礙我們。

Great. Thanks. I'll turn it over.

偉大的。謝謝。我把它翻過來。

Thanks.

謝謝。

(Operator Instructions)

（操作員指令）

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊（Steven Ramsey），湯普森研究小組。

Hi. Good afternoon.

你好。午安.

Wanted to ask a bit on the railing growth expected for 2025. Maybe, relative to the last couple of years, how much of that growth is wallet share gains versus new partners?

想問一下預計 2025 年的欄桿成長情形。也許，相對於過去幾年，這種成長有多少是錢包份額的成長與新合作夥伴的成長？

I'm sure new products drive both. But curious if there's a way to parse that out.

我確信新產品將推動這兩方面的發展。但很好奇是否有辦法解決這個問題。

We've seen attractive growth, over the past couple of years, within the railing portfolio that we have. We've continued to add more features and benefits to those existing product lines.

在過去幾年中，我們的欄桿產品組合實現了令人矚目的成長。我們持續為現有的產品線添加更多功能和優勢。

And, of course, we've added more -- new product lines to it. But we do expect to see, I mentioned, double-digit-type growth for those railing product lines, as we move forward.

當然，我們也增加了更多新的產品線。但正如我所提到的，隨著我們不斷前進，我們確實預計這些欄桿產品線將實現兩位數的成長。

Okay. That's helpful.

好的。這很有幫助。

And, then, lastly, for me. Do you have a new maintenance CapEx level, as you get past this year, with the elevated levels and getting the Arkansas plant running?

最後，對我來說。隨著今年的到來，隨著維護資本支出水準的提高和阿肯色工廠的正常運轉，你們的維護資本支出水準是否有了新的變化？

Yeah. It'll be roughly 5 %to 6% of revenue. So a lot lower than what we've been spending on CapEx, to date.

是的。這大約佔收入的5%到6%。所以比我們迄今為止的資本支出要低得多。

Good news. Thank you.

好消息。謝謝。

Yeah. That's great news.

是的。這真是個好消息。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Bryan Fairbanks for any closing remarks.

我想將會議交還給布萊恩費爾班克斯 (Bryan Fairbanks)，請他作最後發言。

Thank you for your participation in today's call.

感謝您參加今天的電話會議。

We look forward to seeing many of you at upcoming meetings and conferences.

我們期待在即將召開的會議和研討會上見到你們。

Good evening.

晚安.

The conference is now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。