Trex Company Inc (TREX) 2025 Q1 法說會逐字稿

Hello, and welcome to the Trex Company, Inc., first-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

您好，歡迎參加 Trex Company, Inc. 2025 年第一季財報電話會議。（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. Please go ahead.

現在我想將會議交給 Casey Kotary。請繼續。

Thank you, everyone, for joining us today. 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 management.

感謝大家今天加入我們。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) 和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 管理層的其他成員。

The company issued a press release today after market close containing financial results for the first quarter of 2025. This release is available on the company's website. This conference call is also being webcast and will be available on the Investor Relations page of the company's website for 30 days.

該公司今天收盤後發布了一份新聞稿，其中包含 2025 年第一季的財務業績。此新聞稿可在該公司的網站上查閱。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. 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. 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.

謝謝你，凱西。在我們開始之前，請允許我提醒大家，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。有關此類風險和不確定性的討論，請參閱我們最新的 10-K 表格和 10-Q 表格，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. 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.

此外，本次電話會議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 的收益新聞稿中找到。本公司明確聲明，無論出現新資訊、未來事件或其他情況，均無義務更新或公開修訂任何前瞻性陳述。

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 joining us to review our first-quarter 2025 results and discuss our business outlook as we head into the heart of the decking season.

謝謝你，艾米，也謝謝大家加入我們，回顧我們 2025 年第一季的業績，並在我們進入裝飾季節之際討論我們的業務前景。

The Trex team delivered higher-than-expected sales in the first quarter, driven by continued strong demand for our premium products and our prominent positioning in both the home centers and the pro channel.

Trex 團隊在第一季實現了高於預期的銷售額，這得益於我們高端產品的持續強勁需求以及我們在家庭中心和專業通路中的突出地位。

Recall that the first quarter is historically a period of inventory build for the channel after a somewhat slow January and February due to adverse weather conditions in many regions of the country. We saw a significant pickup in March demand.

回想一下，由於全國許多地區天氣惡劣，一月和二月的銷售略顯疲軟，因此第一季歷來是通路庫存累積的時期。我們看到三月的需求明顯回升。

During the quarter, there are several key initiatives to note. First, new products launched within the last 36 months accounted for approximately 22% of our trailing 12-month sales, more than twice the level of last year's first quarter. Trex's proven track record as a market innovator is once again helping us win business and market share in both the pro and home center channels with new high performance products that resonate with consumers.

本季度，有幾項重要措施值得注意。首先，過去 36 個月內推出的新產品約占我們過去 12 個月銷售額的 22%，是去年第一季的兩倍多。Trex 作為市場創新者的良好業績記錄再次幫助我們憑藉引起消費者共鳴的新型高性能產品贏得專業和家庭中心通路的業務和市場份額。

Second, since the beginning of the year, we've converted an increasing number of dealers to the Trex brand and the pace of TrexPro recruitment and qualification is meaningfully ahead of the same period last year. These account conversions are the result of our strategy to offer a comprehensive portfolio of decking and railing products that meet customer needs, enabling them to rely on a single trusted market leading brand. This increase in conversions has also been supported by the distribution enhancements we implemented last year.

其次，自今年年初以來，我們已將越來越多的經銷商轉換為 Trex 品牌，而 TrexPro 的招募和資格認證速度比去年同期明顯加快。這些帳戶轉換是我們策略的結果，即提供滿足客戶需求的全面的甲板和欄桿產品組合，使他們能夠依賴一個值得信賴的市場領先品牌。轉換率的提高也得益於我們去年實施的分銷增強措施。

Third, we officially launched our Performance-Engineered for Your Life Outdoors campaign on May 1, highlighting the performance advantages of Trex products across a wide range of applications. A key highlight of the campaign is Trex marine-grade decking, which is engineered to withstand sun, saltwater, sand, and other harsh environmental elements. This proven performance is why over 2 million square feet of Trex decking has been installed by installers on docks in both saltwater and freshwater areas, including some of the most demanding climates in the world, from the tropical Florida Everglades to the Arctic regions of Northern Canada and all the way to the beaches of Dubai.

第三，我們於5月1日正式啟動了「為您的戶外生活而設計的性能」活動，重點強調了Trex產品在廣泛應用中的性能優勢。活動的一大亮點是 Trex 船用甲板，其設計可抵禦陽光、海水、沙子和其他惡劣的環境因素。正是由於這種經過驗證的性能，安裝人員在鹹水和淡水區域的碼頭上安裝了超過 200 萬平方英尺的 Trex 甲板，其中包括世界上一些最嚴苛的氣候條件，從熱帶佛羅裡達大沼澤地到加拿大北部的北極地區，一直到迪拜的海灘。

The new campaign also features our SunComfortable technology, which is a key differentiator for Trex in the marketplace. Originally developed for a Transcend Lineage product line, SunComfortable technology is now available in three new select decking colors, two enhanced decking colors, and we continue to incorporate this technology into new product offerings.

新活動還展示了我們的 SunComfortable 技術，這是 Trex 在市場上脫穎而出的關鍵因素。SunComfortable 技術最初是為 Transcend Lineage 產品線開發的，現在有三種新的精選甲板顏色、兩種增強甲板顏色可供選擇，我們將繼續將這項技術融入新產品中。

Lastly, we are pleased with the inventory level being held by our channel partners as of the end of the quarter. During the quarter, we began to realize the benefits of our new inventory strategy, which is designed to reduce the quarterly volatility associated with the timing of channel stocking and destocking. It also ensures our channel partners will have the inventory they need to meet consumer demand while at the same time enabling us to level production across the year, improving overall operating efficiency.

最後，我們對本季末我們的通路合作夥伴持有的庫存水準感到滿意。在本季度，我們開始意識到新庫存策略的好處，該策略旨在減少與通路庫存和去庫存時間相關的季度波動。它還確保我們的通路合作夥伴擁有滿足消費者需求所需的庫存，同時使我們能夠全年平衡生產，並提高整體營運效率。

This strategy also gives Trex greater flexibility to respond to market conditions, allowing us to draw down inventory to meet stronger than expected demand or scale back production if demand softens, helping us maintain appropriate inventory. This approach ensures that we consistently have the right amount of product available to support our customer needs regardless of market fluctuations. Looking ahead to how the season is shaping up, the positive momentum in orders that we experienced in March has continued through April, supporting our guidance for a mid- to high-single-digit growth this year.

這項策略也使 Trex 能夠更靈活地應對市場狀況，使我們能夠減少庫存以滿足強於預期的需求，或在需求疲軟時縮減產量，從而幫助我們維持適當的庫存。這種方法確保無論市場如何波動，我們都能隨時擁有適量的產品來滿足客戶的需求。展望本季的情況，我們三月訂單的積極勢頭一直持續到四月份，支持了我們對今年中高個位數成長的預期。

With respect to tariffs, like all businesses, we are looking for additional clarity from the administration. Less than 5% of our cost of sales is projected to be impacted by tariffs, with the majority of the impact related to purchases of aluminum and steel using our railing and fastening products. We have mitigated and will further mitigate some of this impact through strategic actions such as building higher levels of pre-tariff inventory and negotiating with suppliers to either assume or share in the tariff burden.

關於關稅，與所有企業一樣，我們希望政府能提供更明確的說明。預計我們的銷售成本中不到 5% 將受到關稅的影響，其中大部分影響與使用我們的欄桿和緊固件產品購買鋁和鋼有關。我們已經減輕並將透過策略行動進一步減輕部分影響，例如建立更高水準的關稅前庫存以及與供應商談判承擔或分擔關稅負擔。

Additionally, we are adding new suppliers that are unaffected by or less impacted by tariffs, further reducing the impact on our cost of sales. Additional actions will be considered as we gain more clarity on the outcome of these new tariffs.

此外，我們正在增加不受關稅影響或受關稅影響較小的新供應商，進一步降低對我們銷售成本的影響。隨著我們對這些新關稅的結果有了更清晰的了解，我們將考慮採取進一步的行動。

We recently held our TrexPro contractor meetings bringing together contractors from across North America. The mood was upbeat with indications of strong demand for our products and continued repair and remodel spending in our category. Most contractors are quoting backlogs of six to eight weeks.

我們最近召開了 TrexPro 承包商會議，匯集了來自北美各地的承包商。有跡象顯示我們的產品需求強勁，且我們的產品類別的維修和改造支出持續增加，因此市場情緒樂觀。大多數承包商都表示積壓訂單量為六至八週。

As we've seen with both consumers and our channel partners, there was strong positive feedback on our new products. Our channel partners also responded positively to our program enhancements aimed at increasing brand alignment. For example, if a contractor is installing decking, railing and fasteners all from Trex, they will qualify for additional marketing opportunities as well as enhanced warranty benefits.

正如我們從消費者和通路合作夥伴那裡看到的那樣，我們的新產品獲得了強烈的正面回饋。我們的通路合作夥伴也對我們旨在提高品牌一致性的計畫改進做出了積極回應。例如，如果承包商安裝 Trex 的甲板、欄桿和緊固件，他們將有資格獲得額外的行銷機會以及增強的保固福利。

For more than three decades, Trex has built and maintained the most respected network of pro contractors, distributors, dealers, and home centers by fostering strong partnerships that are reinforced by mutual benefit. We will continue to expand our product offerings and work closely with our channel partners to innovate and strengthen relationships that bring Trex products to the customer.

三十多年來，Trex 透過建立互惠互利的強大合作夥伴關係，建立並維護了最受尊敬的專業承包商、經銷商、經銷商和家居中心網路。我們將繼續擴大我們的產品供應，並與我們的通路合作夥伴密切合作，創新並加強將 Trex 產品帶給客戶的關係。

Progress has continued on our new state-of-the-art manufacturing campus that we're building in Arkansas. In the first quarter, we realized a significant milestone with the production of our first recycled plastic pellets, which are already helping to offset the cost of external pellet purchases at our Virginia and Nevada campuses. As work continues through 2025, and into 2026, to complete the decking building and installation, with production planned to start in 2027, we will continue to strategically align our manufacturing footprint.

我們在阿肯色州建設的全新最先進的製造園區正在不斷取得進展。第一季度，我們生產了第一批再生塑膠顆粒，實現了一個重要的里程碑，這些顆粒已經幫助抵消了我們維吉尼亞州和內華達州園區外部顆粒採購的成本。這項工作將持續到 2025 年和 2026 年，以完成甲板的建造和安裝，並計劃於 2027 年開始生產，我們將繼續策略性地調整我們的製造足跡。

As we said when it was first announced, this new manufacturing hub positions Trex to better respond to changing market conditions and quickly capture growth opportunities, while at the same time serve customers across the country with improved regional manufacturing access and lower freight costs.

正如我們在首次宣佈時所說的那樣，這個新的製造中心使 Trex 能夠更好地應對不斷變化的市場條件並迅速抓住成長機會，同時透過改善的區域製造管道和降低運費為全國各地的客戶提供服務。

Recent data indicates that there is an increasing level of pent-up demand in the repair and remodel market. Zonda home economics projects that R&R spending has been below the long-term average of $1.26 per square foot of home space since the end of 2021 and it reached its low point in 2024 at a projected $1 per square foot. That's approximately 20% below the average spending level. However, it is projected to increase from that low point back to the long-term average by 2027. We agree with the projection given that there are over 50 million decks in North America and over half are either at or beyond their normal lifespans.

最近的數據表明，維修和改造市場被壓抑的需求正在增加。Zonda 家庭經濟預測，自 2021 年底以來，R&R 支出一直低於每平方英尺住房空間 1.26 美元的長期平均水平，並在 2024 年達到最低點，預計為每平方英尺 1 美元。這比平均支出水準低約 20%。然而，預計到 2027 年，這一數字將從低點回升至長期平均值。我們同意這項預測，因為北美有超過 5,000 萬個甲板，其中超過一半的甲板已經達到或超過了正常使用壽命。

In 2025, we expect that Trex will outperform the R&R market by a considerable margin driven by our new product introductions and market share gains, and we're confident that the trend will continue long into the future.

到 2025 年，我們預計 Trex 將在新產品推出和市場份額增長的推動下以相當大的優勢超越 R&R 市場，並且我們相信這一趨勢將持續很長時間。

Now I will turn the call over to Senior Vice President and CFO, Brenda Lovcik, for a financial review of the first quarter. Brenda?

現在，我將把電話轉給資深副總裁兼財務長 Brenda Lovcik，對第一季進行財務審查。布倫達？

Thank you, Bryan, and good evening, everyone. Before I walk through our financial results, I would like to provide an update on some of the strategic priorities we have implemented to drive growth and profitability in 2025 and beyond.

謝謝你，布萊恩，大家晚上好。在介紹我們的財務表現之前，我想先介紹一下我們為推動 2025 年及以後的成長和獲利能力而實施的一些策略重點。

Over the last 36 months, Trex has undergone a period of significant product innovation with new products accounting for approximately 22% of trailing 12-month sales. We remain focused on enhancing our product offerings and delivering an expanded portfolio through innovation.

在過去的 36 個月中，Trex 經歷了一段重大的產品創新時期，新產品約佔過去 12 個月銷售額的 22%。我們將繼續致力於透過創新來增強我們的產品供應並提供更廣泛的產品組合。

In February, we announced an expansion of our mid-tier Trex select decking line, introducing three new colors that feature elevated aesthetics and performance that define Trex. Notably, this launch includes the industry's first mid-price decking board with our integrated SunComfortable heat mitigating technology.

二月份，我們宣布擴大中階 Trex 精選甲板系列，推出三種新顏色，具有 Trex 獨有的高級美感和性能。值得注意的是，此次推出的產品包括業界首款採用整合 SunComfortable 隔熱技術的中價位裝飾板。

Additionally, we have improved our entry level Trex enhanced decking with refined profile specifications that broaden consumer appeal. These advancements reflect our continued leadership in product innovation and our commitment to offering the highest-quality solutions across all price points.

此外，我們還改進了入門級 Trex 增強型甲板，並改進了外形規格，以擴大消費者吸引力。這些進步體現了我們在產品創新方面的持續領導地位以及我們致力於在所有價位提供最高品質的解決方案的承諾。

Serving consumers across the full spectrum of the market remains a core element of Trex long-term growth strategy. We are seeing benefits from the new and expanded distributor partnerships announced last year with Boise, International Wood Products, Snavely Forest Products, Specialty Building Products, and Weyerhaeuser.

服務整個市場的消費者仍然是 Trex 長期成長策略的核心要素。我們從去年與博伊西、國際木製品、斯納夫利森林產品、專業建築產品和韋爾豪澤建立的新的和擴大的分銷商合作夥伴關係中獲益。

In particular, we saw strong sales in the Southwest where many of the distribution changes took place. These results highlight the positive impact of our expanded distributor relationship, which in turn helped to expand our dealer network, provide better service to the home centers, and enable long-term growth.

特別是我們看到西南地區的銷售強勁，許多分銷管道都發生著變化。這些結果凸顯了我們擴大經銷商關係的正面影響，這反過來又有助於擴大我們的經銷商網絡，為家居中心提供更好的服務，並實現長期成長。

We continue to see strong demand for our premium products across all channels in Q1 and continue to benefit from our significant market share in the decking and railing category for both stocked products and special order products in the home center channel. We believe our positioning in the home center channel will enable us to capture significant consumer demand for value-focused consumer who is converting from wood as the market segment begins to rebound.

我們在第一季繼續看到所有管道對我們優質產品的強勁需求，並繼續受益於我們在家庭中心通路庫存產品和特殊訂單產品的甲板和欄桿類別中的巨大市場份額。我們相信，隨著市場區隔開始反彈，我們在家居中心通路的定位將使我們能夠抓住那些正在從木材轉變而來的注重價值的消費者的巨大消費需求。

On the production side, as Bryan mentioned, our Arkansas campus began producing recycled plastic pellets that will serve as raw materials for our Virginia and Nevada facilities and eliminate the need to purchase higher cost inputs. Arkansas is set to become our most efficient decking production hub, enhancing overall operational performance by increasing efficiency across our broader manufacturing network and allowing us to respond with more agility to fluctuations in demand. We are excited to see this multiyear initiative come to life and begin contributing positively later this year.

在生產方面，正如布萊恩所提到的，我們的阿肯色州園區開始生產再生塑膠顆粒，這些顆粒將作為我們弗吉尼亞州和內華達州工廠的原材料，從而無需購買更高成本的投資。阿肯色州將成為我們最高效的甲板生產中心，透過提高我們更廣泛的製造網路的效率來提高整體營運績效，並使我們能夠更靈活地應對需求波動。我們很高興看到這項多年計劃得以實施並在今年稍後開始做出積極貢獻。

I would now like to review our first-quarter 2025 results. Please note that unless otherwise stated, all comparisons discussed are on a year-over-year basis compared to the first quarter of 2024.

現在我想回顧一下我們 2025 年第一季的業績。請注意，除非另有說明，所有討論的比較都是與 2024 年第一季相比的同比數據。

In Q1, we incurred several expenses tied to strategic initiatives, including startup costs associated with our Arkansas plastic processing operation, railing conversion support as we partner with our distribution channel to bring Trex's expanded portfolio of railing products to the market, and investments in digital transformation aimed at enhancing the consumer experience. I will provide adjusted results reflecting these items while discussing financial performance. A reconciliation of these adjustments can be found in our press release on trex.com.

在第一季度，我們產生了與策略性舉措相關的幾項費用，包括與阿肯色州塑膠加工業務相關的啟動成本、與我們的分銷管道合作將 Trex 擴展的欄桿產品組合推向市場的欄桿轉換支持，以及旨在提升消費者體驗的數位轉型投資。在討論財務表現時，我將提供反映這些項目的調整結果。這些調整的對帳可以在我們發佈於 trex.com 的新聞稿中找到。

In the first quarter, net sales were $340 million, a decrease of 9% compared to $374 million, but better than expected due to the continued demand for our premium products. As a reminder, last year's net sales included a $40 million benefit from a channel inventory build ahead of the decking and railing season that did not repeat this year, and we ended the quarter with channel inventories in line with where we expected as we head into the busy season.

第一季淨銷售額為 3.4 億美元，較 3.74 億美元下降 9%，但由於市場對我們優質產品的持續需求，淨銷售額優於預期。提醒一下，去年的淨銷售額包括了在甲板和欄桿季節之前建立渠道庫存的 4000 萬美元收益，而今年並沒有重複這種情況，並且我們在本季度結束時的渠道庫存與我們進入旺季時的預期一致。

Gross profit was $138 million and gross margin was 40.5% compared to gross profit of $170 million and gross margin of 45.4%, down $32 million or 490 basis points. The decrease primarily due to three factors: railing conversion costs, lower year-over-year production as we level load our facilities, and as noted earlier, we improved our entry level enhanced decking boards to optimize performance and refine the aesthetic appeal. This refinement required changes to our production process, which impacted Q1 margins and we expect will impact Q2 margins. Trex's unrelenting focus on continuous improvements partially offset these impacts.

毛利為 1.38 億美元，毛利率為 40.5%，而去年同期的毛利為 1.7 億美元，毛利率為 45.4%，下降了 3,200 萬美元或 490 個基點。下降主要歸因於三個因素：欄桿改裝成本、由於我們平衡了設施負荷而導致的同比產量下降，以及如前所述，我們改進了入門級增強型甲板，以優化性能並提高美感。這項改進需要改變我們的生產流程，這影響了第一季的利潤率，我們預計這也會影響第二季的利潤率。Trex 對持續改進的不懈關注部分抵消了這些影響。

Adjusted gross profit, which excludes railing conversion costs of approximately $4 million, was $142 million. Selling general and administrative expenses were $56 million, or 16.5% of net sales compared to $51 million or 13.5% of net sales. The increase was due to additional investments in branding and new product innovation, which continue to deliver strong results. Excluding expenses related to the startup of Arkansas facility and digital transformation activities, SG&A expenses were $55 million or 16% of net sales.

調整後的毛利（不包括約 400 萬美元的欄桿改裝成本）為 1.42 億美元。銷售一般及行政費用為 5,600 萬美元，佔淨銷售額的 16.5%，去年同期為 5,100 萬美元，佔淨銷售額的 13.5%。這一成長是由於對品牌和新產品創新的額外投資，這些投資繼續帶來強勁的業績。不包括與阿肯色州工廠啟動和數位轉型活動相關的費用，銷售、一般及行政費用為 5,500 萬美元，佔淨銷售額的 16%。

Net income was $60 million or $0.56 per diluted share, a decrease of 32% from $89 million or $0.82 per diluted share. Excluding the aforementioned expenses, adjusted net income was $64 million or $0.60 per diluted share. Adjusted EBITDA was $101 million, down 24% compared to $133 million.

淨收入為 6,000 萬美元或每股攤薄收益 0.56 美元，較 8,900 萬美元或每股攤薄收益 0.82 美元下降 32%。除上述費用外，調整後的淨收入為 6,400 萬美元，即每股 0.60 美元。調整後的 EBITDA 為 1.01 億美元，較 1.33 億美元下降 24%。

As noted in today's earnings release, given our strong start to the year, we are maintaining our full-year 2025 guidance. We expect to see strong year-over-year comparisons in the second half of the year driven by normalized production levels, the ongoing benefits of our continuous improvement initiatives, the absence of channel inventory reductions that occur in the second half of last year.

正如今天的收益報告中所述，鑑於我們今年的強勁開局，我們維持 2025 年全年業績指引。我們預計，受正常化生產水準、持續改善措施的持續效益以及去年下半年通路庫存減少的推動，下半年的同比業績將強勁增長。

We continue to anticipate a flat repair and remodel market relative to 2024 and we expect to considerably outperform the R&R market in 2025, supported by continued strong demand for our premium decking products, increasing demand for our entry level decking products, and double-digit growth in our railing products.

我們繼續預計，與 2024 年相比，維修和改造市場將持平，並且我們預計，2025 年的表現將大大優於 R&R 市場，這得益於對我們高端裝飾產品的持續強勁需求、對我們入門級裝飾產品的需求不斷增加以及我們的欄桿產品的兩位數增長。

To reiterate our 2025 guidance, we expect net sales growth to be between 5% to 7%, adjusted EBITDA margin to exceed 31%, SG&A expenses to be approximately 16% of net sales, interest expense less than $2 million, and depreciation in the range of $55 million to $58 million. We are projecting an effective tax rate of approximately 25% to 26%. Capital expenditures are projected to be approximately $200 million for the full year as we continue the development of the Arkansas campus. We expect Q2 sales in the range of $370 million to $380 million and Q2 margins to be in line with Q1.

重申我們對 2025 年的指導，我們預計淨銷售額增長率將在 5% 至 7% 之間，調整後的 EBITDA 利潤率將超過 31%，銷售、一般及行政費用 (SG&A) 約佔淨銷售額的 16%，利息支出低於 200 萬美元，折舊在 5500 萬美元之間。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園區，預計全年資本支出約為 2 億美元。我們預計第二季的銷售額將在 3.7 億美元至 3.8 億美元之間，利潤率將與第一季持平。

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

現在，我將把電話轉回給布萊恩，請他作最後發言。

Thank you, Brenda. To sum up, the first quarter represented a good start to 2025 and the pace of incoming orders is in line with our expectations. While we're closely monitoring consumer behavior and other macroeconomic forces, we're confident in the strength of our market position.

謝謝你，布倫達。總而言之，第一季是2025年的良好開端，訂單速度符合我們的預期。雖然我們密切關註消費者行為和其他宏觀經濟力量，但我們對我們的市場地位充滿信心。

To anticipate a question that I expect is on your minds, the confidence we have in our position as a market leader has not changed with the announcement of James Hardie's acquisition of AZEK. This confidence is based on our tremendous brand equity, our differentiated channel positioning that maximizes the visibility, and availability of Trex branded products. Our expanded product portfolio and the network of distributors, dealers, home centers, and pro contractors that we partner with every day to bring the highest-quality, performance-driven products to the marketplace. This is the extent of what we will say on this topic.

我預期你們會問的一個問題是，儘管 James Hardie 宣布收購 AZEK，但我們對自己作為市場領導者地位的信心並沒有改變。這種信心是基於我們龐大的品牌資產以及我們差異化的管道定位，從而最大程度地提高 Trex 品牌產品的知名度和可用性。我們不斷擴大的產品組合以及經銷商、經銷商、家居中心和專業承包商網絡，我們每天都與他們合作，為市場帶來最優質、性能驅動的產品。這就是我們就這個主題要討論的全部內容。

Now, I will welcome your questions on Trex, our performance, and our outlook. Operator, please open for questions.

現在，我歡迎您就 Trex、我們的業績和前景提問。接線員，請回答問題。

(Operator Instructions) Ryan Merkel, William Blair.

（操作員指示）瑞安·默克爾、威廉·布萊爾。

Hey, good afternoon. Thanks for taking the question. I wanted to start with the change you made to the enhance the refinement, I guess, was the word you used. Talk about why you did that and then are you expecting stronger sales after you make that change?

嘿，下午好。感謝您回答這個問題。我想從您為增強精緻度而做出的改變開始，我想，這就是您使用的詞。談談您為什麼這樣做，然後您是否期望在做出改變後銷售業績會更好？

Yeah. We had received some customer feedback over the past couple of years and we elected to go ahead and make that manufacturing change during the first quarter. One of the outcomes of that change is that it is a stronger deck board. So when you're laying it across whatever span that you have, it's going to be a little bit less flex within that and some other changes just to lightly improve the general aesthetics of the overall board. We felt it was time in a normal continuous improvement type methods that we have here at Trex to make that adjustment and there were some changeover costs for that during the first quarter.

是的。過去幾年我們收到了一些客戶的回饋，我們決定在第一季繼續進行生產變革。這種改變的結果之一是，它成為了一塊更堅固的甲板。因此，當您將它鋪設在任何跨度上時，它的彎曲度會稍微小一些，並且還會進行一些其他更改，以稍微改善整個板的整體美觀度。我們認為現在是時候採用 Trex 的正常持續改進方法來做出調整了，並且在第一季我們為此產生了一些轉換成本。

Got it. Okay. And the margin question, you mentioned 2Q margins approximating 1Q, are you talking about gross margins or EBITDA margins?

知道了。好的。關於利潤率的問題，您提到第二季度的利潤率接近第一季度，您說的是毛利率還是 EBITDA 利潤率？

Largely gross margins. So we'll continue to level load the facilities, which will have a little bit of an impact year over year because we were running really hot Q2 in 2024 and then still some of the costs from the changeover with enhancements will be running through in Q2.

主要是毛利率。因此，我們將繼續平衡設施的負荷，這將對同比產生一定的影響，因為我們在 2024 年第二季度的運作情況非常糟糕，而且轉換和增強產生的部分成本仍將在第二季度持續下去。

Okay. That's kind of what I thought. Any way you can quantify the refinement to enhance what the impact was to gross margins in 1Q and 2Q just to help us with modeling.

好的。我也是這麼想的。無論如何，您都可以透過量化改進來增強其對第一季和第二季毛利率的影響，以幫助我們進行建模。

Yeah. So if you look at it, we highlight three things that are impacting gross margin. One, it's the dealer or the railing conversion cost. Two is the level loading so volumes, production volumes. And then, third, was the enhanced changeover. What I'd say it's roughly a third, a third, and a third.

是的。因此，如果你看一下，我們會強調影響毛利率的三個因素。一是經銷商或欄桿改裝費用。二是水平裝載量、生產量。第三，是增強轉換。我認為大約是三分之一、三分之一、三分之一。

Got it. All right. Thanks so much. Pass it on.

知道了。好的。非常感謝。傳承下去。

Thank you.

謝謝。

Rafe Jadrosich, Bank of America.

美國銀行的 Rafe Jadrosich。

Hi, good afternoon. Thanks for taking my question. I might have missed it. Bryan, did you see what the sell-through was in the first quarter? And then, can you just talk about what you're assuming for the remainder of the year against that kind of flat R&R assumption?

嗨，下午好。感謝您回答我的問題。我可能錯過了。布萊恩，您看到第一季的銷售量了嗎？然後，您能否談談，根據這種平坦的 R&R 假設，您對今年剩餘時間的假設是什麼？

Yeah, thank you, Rafe. In the first quarter, we saw again continued strong demand for our premium products and we did start to see the entry level turnaround. And so we are on track for our full year guidance, which is that 5% to 7%. And then that does reflect what we believe the sell-through will be for the full year, so that mid- to high-single-digit sell-through.

是的，謝謝你，Rafe。在第一季度，我們再次看到市場對高端產品的需求持續強勁，我們確實開始看到入門級產品的改善。因此，我們預計將實現全年預期，即 5% 至 7%。這確實反映了我們對全年銷售情況的預期，即中高個位數的銷售率。

Okay. And then, just following-up to the prior question on the 2Q guidance for gross margins, are the components of the year-over-year decline similar to what's impacting the first quarter for the second quarter as well, and then therefore temporary and we should expect that to sort of reverse in the second half of the year?

好的。然後，繼續回答關於第二季度毛利率指引的先前問題，第二季度同比下降的因素是否與影響第一季度的因素類似，因此是暫時的，我們是否應該預計這種情況會在下半年出現逆轉？

Exactly. Those are temporary and we'll be reversing in the second half, correct.

確切地。這些都是暫時的，下半年我們會扭轉局面，正確。

Yeah. We're continuing to see improved performance on the new profile, the enhanced changes that we've made. We'll continue to make great progress on that and we'll have that in great shape by the time we get to the end of the second quarter.

是的。我們繼續看到新設定檔的效能得到改善，以及我們所做的增強變更。我們將繼續在這方面取得巨大進展，到第二季末，我們將取得良好的業績。

Tim Wjos, Baird.

提姆·沃喬斯，貝爾德。

Hey, everybody. Good afternoon. Thanks for all the color. I guess, one question on kind of the -- just given some of the changes in inventory practices and things, how would you kind of expect the seasonality in the back half of the year to kind of track relative to what you've done historically? Does Q3 look like is there less of a seasonal drop off than you would normally see Q2 to Q3, and then you kind of normally see Q4 weak or just how should we kind of think of that just given kind of the moving pieces between how you're kind of changing the inventory load into the channel?

嘿，大家好。午安.感謝所有的色彩。我想問一個問題——考慮到庫存實踐和其他方面的一些變化，相對於過去的情況，您如何預期下半年的季節性會有所變化？第三季的季節性下降是否比第二季至第三季通常看到的要少，然後您通常會看到第四季疲軟，或者我們應該如何看待這個問題，只是考慮到您如何改變庫存負載到通路之間的移動部分？

Yeah. So normal seasonality is going to be a strong first quarter as you build inventory in the channel. You still have to do that regardless of what inventory level that we have. So the channel is ready for the season. Second quarter will increase from that number and then you'll see a falloff in the third quarter. Not a huge falloff, but still a fall off, and then a significant falloff in the fourth quarter as the channel begins to learn what's going to be in the following year. Of course, demand declines in that fourth quarter as well and they get their inventories ready for the next early buy season that's coming through.

是的。因此，隨著您在通路中建立庫存，正常的季節性將會是第一季的強勁表現。無論我們的庫存水準如何，您仍然必須這樣做。因此該頻道已為本季做好了準備。第二季的數字將會增加，然後你會看到第三季的數字下降。雖然不是大幅下滑，但仍下滑，而且在第四季度，隨著通路開始了解來年的情況，下滑幅度將顯著增加。當然，第四季的需求也會下降，他們為即將到來的下一個早期購買季節做好庫存準備。

It's about, I guess, as normal of a year as I can say, going back to almost pre-2019 at this point. And clearly since the pandemic, it's been challenging to find a normal year as it relates to percentages of revenue quarter by quarter. But is what we see this year, I think we'll get back to that more normalcy.

我想，這大概是我能說的最正常的一年，現在幾乎回到了 2019 年之前。顯然，自從疫情爆發以來，要找到一個與逐季度收入百分比相關的正常年份一直很困難。但就我們今年所看到的情況而言，我認為我們將恢復到更正常的狀態。

Okay. And then you talked about a strong March and a strong April. How do you kind of internally delineate between like what is just the start of spring and things kind of just typically season, kind of picking up seasonally versus any sort of kind of underlying kind of demand improvement or just kind of consumer activity?

好的。然後您談到了三月和四月的強勁表現。您如何在內部區分春季的開始和典型的季節、季節性的回升與任何潛在需求的改善或僅僅是消費者活動的差異？

January and February, they were weak, without a doubt. We've seen that in other earnings reports. As we were going through those two months, we heard from our channel partners what was happening in the marketplace. But we also keep a good close eye on marketing metrics. And as soon as that weather started to break in the month of March, we saw those numbers tick up quite quickly. They've continued to go that way. So we're very pleased with what we're seeing from a marketing metric perspective, the engagement that people are having with Trex.

毫無疑問，一月和二月他們的表現很弱。我們在其他收益報告中也看到了這一點。在這兩個月裡，我們從通路夥伴那裡了解到了市場上發生的事情。但我們也密切關注行銷指標。三月天氣一轉晴，我們就看到這些數字迅速上升。他們一直這樣走下去。因此，從行銷指標的角度來看，我們對人們與 Trex 的互動感到非常滿意。

I mentioned the new program, the new campaign that we launched on May 1. It's not just since May 1. We've been seeing this for a number of months now. So that helps drive the confidence of what we have in the marketplace.

我提到了我們於 5 月 1 日啟動的新計劃和新活動。這並非只是從 5 月 1 日開始的。我們已經看到這種情況好幾個月了。這有助於增強我們在市場上的信心。

Okay, awesome. Thanks for the color. We'll see you.

好的，太棒了。謝謝你的顏色。我們會再見的。

Keith Hughes, Truist.

基斯·休斯，Truist。

Thank you. Question on SG&A, the guidance gave 16% for the year. Would we see kind of ratably year over year, looks like you're talking about a little bit of an increase year over year. Would it be ratably or is there one quarter where it could be particularly higher in spending?

謝謝。關於銷售、一般及行政費用 (SG&A) 的問題，指引值為全年 16%。我們是否會看到同比有一定幅度的增長，看起來你說的是同比有一點增長。是按比例增加還是某個季度的支出可能特別高？

So typically, we front load the expenses from a marketing and innovation perspective as we're getting prepared. One, we launch all of the new products that we've been talking about, and then secondly as we get prepared for the decking season, so we will see it more front loaded during the year.

因此，通常情況下，我們會在準備階段從行銷和創新的角度預先支付費用。首先，我們推出了我們一直在談論的所有新產品，其次，隨著我們為裝飾季節做好準備，我們將在一年內看到更多的前期產品。

Okay. So it should decelerate from the $55 million that you reported in the first quarter. Is that kind of what you're saying?

好的。因此，它應該比第一季報告的 5500 萬美元有所下降。你說的就是這種事嗎？

That's correct.

沒錯。

Yes. And I guess a question on give us the shape of the year as you've kind of laid that out, are you anticipating in the say the fourth quarter, are you anticipating flattish production year over year as we head into 2026?

是的。我想問一下，正如您所說，今年的產量情況是怎麼樣的？您是否預計在第四季度，到 2026 年，產量是否會比去年同期持平？

As we head into -- right now, I'm anticipating flattish production with where we were in the first quarter, which was similar to where we were in the fourth quarter of last year. So we've not projected what our production is for next year as of yet. We will go into the end of the year with higher inventories, not necessarily higher than where we were last year. But the inventory strategy will remain for us.

現在，我預計產量將與第一季持平，與去年第四季的產量相似。因此，我們尚未預測明年的產量。到年底我們的庫存將會更高，但不一定比去年的庫存更高。但我們的庫存策略仍將保留。

I guess, one final point with we've got, you gave us the shape of the year. If we head into a normal year next year to find out our we want to be normally positive, will you have done enough work that we will start to see less variation quarter-to-quarter in the growth rate on revenues?

我想，最後一點，您向我們介紹了今年的情況。如果我們明年進入正常年份，發現我們希望保持正常的正面狀態，您是否已經做了足夠的工作，以便我們開始看到收入成長率的季度間變化較小？

Yes.

是的。

Okay. Thank you very much.

好的。非常感謝。

Susan Maklari, Goldman Sachs.

高盛的蘇珊馬克拉里 (Susan Maklari)。

Thank you. Good afternoon, everyone. Bryan, in your remarks, you noted the benefit that you're starting to see from some of the new or the extended relationships with distributors like Boise and some of the others. As you think about the momentum you're seeing in rail and some of the new products, can you talk about how perhaps some of those relationships are helping that come together and how we should think about perhaps some tailwinds as you continue to leverage those new relationships and expand those geographies with them?

謝謝。大家下午好。布萊恩，在您的演講中，您指出您開始從與博伊西等分銷商建立的一些新的或延長的關係中看到好處。當您想到鐵路和一些新產品所展現出的勢頭時，您能否談談其中一些關係如何幫助實現這些發展，以及在您繼續利用這些新關係並擴大這些地域範圍時，我們應該如何考慮一些順風因素？

I think it's broader than just the new relationships that we have. It is across all of our channels in distribution, where our distributors are now fully focused on Trex decking and railing. And you can't underestimate how important it is to have those sales teams out there just focused on one brand rather than multiple of brands. We are seeing that benefit. We are seeing those conversions occur from a dealer perspective and then also having discussions from a home center perspective.

我認為它比我們現有的新關係更為廣泛。它涵蓋了我們所有的分銷管道，我們的分銷商現在完全專注於 Trex 裝飾板和欄桿。而且你不能低估讓銷售團隊專注於一個品牌而不是多個品牌的重要性。我們正在看到這種好處。我們從經銷商的角度看到了這些轉變的發生，然後也從家居中心的角度進行了討論。

Okay, that sounds good. And then thinking about capital allocation as you're starting to get through the Arkansas rebuild and things are perhaps coming together a bit from an operational perspective. Can you talk about your priorities for capital allocation? Any thoughts on shareholder returns or other uses of cash?

好的，聽起來不錯。然後，當您開始進行阿肯色州的重建工作並且從營運角度來看事情可能正在逐漸好轉時，請考慮資本配置。能談談資本配置的優先事項嗎？對股東回報或現金的其他用途有什麼想法？

Yeah, our priorities haven't changed from where we've been in the past. We continue to look for opportunities in the market from an acquisition perspective. There's not been a lot that we've done around that, but it still is a priority for us from a capital perspective.

是的，我們的優先事項與過去相比並沒有改變。我們繼續從收購的角度尋找市場機會。我們在這方面做的還不夠多，但從資本角度來看，這仍然是我們的首要任務。

Of course, our organic growth that we have, we've invested significant amounts in that. So that will decline considerably as we move out to 2026 timeframe and then finally our share buyback program. So none of those priorities have changed. But what we will see is significantly more free cash flow coming back to the balance sheet here, accounts receivable was quite high coming out of the first quarter.

當然，為了實現我們的有機成長，我們已經投入了大量資金。因此，隨著我們進入 2026 年的時間範圍並最終實施股票回購計劃，這一數字將大幅下降。因此，這些優先事項都沒有改變。但我們會看到，更多的自由現金流將回到資產負債表中，第一季的應收帳款相當高。

Not a surprise when you have an early buy program that will start turning around in the second quarter and then further turnaround in the third quarter of this year. And then of course, next year we'll see considerably lower capital spending.

如果你有一個早期購買計劃，並且該計劃將在今年第二季開始好轉，然後在第三季進一步好轉，這並不奇怪。當然，明年我們將看到資本支出大幅下降。

Yes, okay. Thank you. Good luck with everything.

是的，好的。謝謝。祝一切順利。

Collin Verron, Deutsche Bank.

德意志銀行的科林‧維隆 (Collin Verron)。

Great. Thank you for taking my questions. I guess, I just want to start on the 2Q guide here calling for flattish sales. It sounds like things are tracking pretty well, pretty nicely in March and April. So I guess, I was just wondering what the offsets are there that would drive flattish sales versus some of the more positive trends you saw at the end of the first quarter.

偉大的。感謝您回答我的問題。我想，我只是想從這裡的第二季指南開始，呼籲銷售持平。聽起來三月和四月一切進展順利，相當順利。所以我想，我只是想知道，與第一季末看到的一些更積極的趨勢相比，有哪些抵消因素會導致銷售額持平。

Again, just as a reminder, last year, we had a really high first half. We had about 65% of our total year sales in that first half of the year, which historically we've been more at like that, 56% to 57%. So the comparable is really tough and that's what's causing that. We're feeling very excited and bullish about the back half of the year, barring any other macroeconomic pressures that we see. But as Bryan noted, the statistics that we're seeing with our marketing metrics, the conversations that we're having with our distributors and their backlogs, we're feeling positive and optimistic about the back half of the year here.

再次提醒一下，去年上半年我們的業績確實很高。我們上半年的銷售額約佔全年銷售額的 65%，而歷史上我們的銷售額通常都處於這個水平，為 56% 至 57%。因此，可比性確實很困難，這就是造成這種情況的原因。除非我們看到任何其他宏觀經濟壓力，否則我們對今年下半年感到非常興奮和樂觀。但正如布萊恩所指出的，根據我們從行銷指標中看到的統計數據、我們與分銷商的對話以及他們的積壓訂單，我們對今年下半年感到積極和樂觀。

Understood. I appreciate the color there. And then I guess, just pivoting over to the recycling startups. Great to hear that it's going well. With it starting to contribute positively later this year, just any thoughts on what sort of the cost benefits will look like as we exit the year and look out into 2026?

明白了。我很欣賞那裡的色彩。然後我想，就轉向回收新創公司吧。很高興聽到一切進展順利。隨著它在今年晚些時候開始產生積極貢獻，當我們結束今年並展望 2026 年時，您是否想過它的成本效益會是什麼樣的？

Rather than specifying those cost benefits, I think it's more important to look at the overall continuous improvement program that we have. Within the first quarter, we did deliver some margin benefit from those continuous improvement programs. Of course, we have continuing benefit from last year and new projects that are coming in at all times. So really we look at it as an overall program and helps us to be able to ensure that we continue to drive the margins that we have and be as efficient as possible. But we're not going to get into breaking out the specifics of the projects.

我認為，與具體說明這些成本效益相比，更重要的是看我們擁有的整體持續改善計劃。在第一季度，我們確實從這些持續改善計劃中獲得了一定的利潤收益。當然，我們繼續受益於去年的成果以及不斷湧現的新項目。因此，我們實際上將其視為整體計劃，並幫助我們確保能夠繼續提高現有的利潤率並盡可能提高效率。但我們不會深入探討這些項目的具體細節。

All right. Thank you for taking my questions.

好的。感謝您回答我的問題。

Thanks.

謝謝。

Michael Rehaut, JPMorgan.

摩根大通的麥可雷豪特。

Thanks. Good afternoon. Thanks for taking my questions. Wanted to start with the interesting stat that you gave out around the product vitality being more than double a year ago and would love to get a sense for perhaps how that's impacting some of the financial metrics. Either I'd assume new products generally come in at a better gross margin than what they replace or also from a sales contribution standpoint, more so in terms of in the marketplace, if you feel that it's helping with share gains and perhaps how to think about how this statistic might progress over the next couple of years and if that might have even a further impact on some of the numbers.

謝謝。午安.感謝您回答我的問題。首先，您給出了一個有趣的數據，即產品活力比一年前增加了一倍多，並且希望了解這對一些財務指標有何影響。我認為新產品的毛利率通常比其替代產品更高，或者從銷售貢獻的角度來看，更重要的是在市場方面，如果您認為它有助於提高市場份額，或許可以考慮一下這個統計數據在未來幾年會如何發展，以及這是否會對一些數字產生進一步的影響。

The reason we've decided to start discussing that is we've been talking for a while about the investments that we're making in new product development, and you've seen a lot of launches come to the marketplace over the past couple of years. So what we wanted to give our investors an idea of the success of these new launches.

我們決定開始討論這個問題的原因是，我們已經討論了一段時間我們在新產品開發方面的投資，並且你已經看到過去幾年有很多新產品進入市場。因此，我們希望讓投資者了解這些新產品的成功。

So you have the lineage products in the marketplace now. You have new colors coming in, new enhanced colors coming in as well, all of the new railing products that we have. And it was a way for us to be able to indicate the success that we're seeing with those new product development opportunities. We have more that will be coming out later on this year into next year, it's a continuing part of our strategy to make sure that we've got a fresh product portfolio and we're meeting the needs of all of the decking and railing buyers in the marketplace.

因此現在市場上就有了系列產品。我們擁有的所有新欄桿產品都有新顏色、新增強顏色。這是我們展示新產品開發機會所取得的成功的一種方式。我們將在今年稍後到明年推出更多產品，這是我們策略的持續組成部分，以確保我們擁有全新的產品組合，並滿足市場上所有甲板和欄桿買家的需求。

Okay. Thank you for that. I guess, secondly, maybe just from a broader market perspective. You highlighted the continued strength of the premium products and now the lower end kind of stabilizing. I'd love to get a sense from kind of a bigger picture market standpoint, perhaps what's driving that, particularly relative to maybe some of the challenges in the last few quarters around the entry level and how you see the different segments of the market progressing over the next few quarters.

好的。謝謝你。我想，其次，也許只是從更廣大的市場角度來看。您強調了高端產品的持續強勁以及低端產品的穩定。我希望從更廣闊的市場角度來了解推動這一趨勢的因素，特別是相對於過去幾季在入門級方面遇到的一些挑戰，以及您如何看待未來幾季不同市場領域的發展。

Well, we've seen two quarters in a row now. When we talked to you last in February, we talked about seeing sequential improvements with our entry level products and we continue to see that in the first quarter of this year. So while our entry level buyer tends to be a higher income, average family income than many other products would consider entry level and I think the fact that repair and remodel has been suppressed for a number of years now, there is that pent-up demand that's out there. There are a lot of wood decks that are at or beyond their level for repair and it is still an efficient way to be able to add square footage, usable, enjoyable space onto your home, and we're seeing more people take advantage of that.

嗯，我們現在已經連續看到兩個季度了。當我們在二月與您交談時，我們談到了我們的入門級產品的連續改進，並且我們在今年第一季繼續看到這種改進。因此，雖然我們的入門級買家往往收入較高，但平均家庭收入比許多其他產品考慮的入門級要高，而且我認為維修和改造已經被抑制了很多年，但確實存在被壓抑的需求。許多木質甲板已經達到或超越了其修復的水平，但它仍然是一種有效的方法，可以增加房屋的面積、可用空間和舒適的空間，我們看到越來越多的人利用了這一點。

Great. Thanks so much.

偉大的。非常感謝。

Thanks.

謝謝。

Ketan Mamtora, BMO Capital.

Ketan Mamtora，BMO Capital。

Good afternoon, and thanks for taking my question. Maybe Bryan, to start with, on the railing side, can you talk to sort of what you guys are seeing out there? Obviously, you have launched out of a full suite of products, kind of early signs on how that is going and maybe if you want to highlight a couple of successes or some challenges that you've seen there.

下午好，感謝您回答我的問題。也許布萊恩，首先，在欄桿方面，你能談談你們在那裡看到了什麼嗎？顯然，您已經推出了全套產品，這在某種程度上預示著產品的進展情況，如果您想強調您在那裡看到的一些成功或挑戰。

Yes. With both our aluminum railing system as well as steel railing system, we do have meaningful conversions in different areas of the country. Steel railing system is not generally sold everywhere. It tends to be in the more arid type climates whereas the new select aluminum railing system really will have entire country and up into Canada type popularity on it.

是的。透過我們的鋁製欄桿系統和鋼製欄桿系統，我們在全國不同地區實現了有意義的改造。鋼製欄桿系統一般不是隨處可見的。它往往出現在較為乾燥的氣候中，而新型精選鋁製欄桿系統確實會在整個國家乃至加拿大受到歡迎。

We're seeing improving numbers with our T rail system designed specifically to go after the vinyl railing systems gives the consumer a much higher quality product than what a vinyl railing is going to provide along the way. And we've seen significant conversions occur during the first quarter where inventory is being built. They are moving on from other competitors at this point, so that they can drive both Trex decking and Trex railing at the same time, simplify their inventory strategy, simplify their marketing strategy and allow their sales team to focus on a more limited number of brands rather than a lot more that they focused on in the past.

我們看到，我們的 T 型軌道系統的銷量不斷提高，該系統專門設計用於乙烯基欄桿系統，為消費者提供比乙烯基欄桿所提供的產品質量高得多的產品。我們看到，在第一季庫存建立期間，發生了顯著的轉換。他們目前正在與其他競爭對手競爭，以便能夠同時推動 Trex 甲板和 Trex 欄桿，簡化庫存策略，簡化行銷策略，並允許銷售團隊專注於有限數量的品牌，而不是像過去那樣關注更多品牌。

Understood, that's helpful. And then just on the $40 million that you've talked about in the past around that inventory layering in, can you talk about sort of as you move through Q2 and Q3, how that sort of flows through and what's kind of embedded?

明白了，這很有幫助。然後，就您過去談到的 4000 萬美元庫存分層而言，您能否談談在第二季度和第三季度中，這些資金是如何流動的，以及嵌入了哪些內容？

Yeah. So we will see that materialize in Q3, most of it in Q3, but a portion of that is estimated at this time in -- I'm sorry, most of it in Q2 and then the rest of that materializing in Q3, so.

是的。因此，我們將在第三季度看到這一目標的實現，其中大部分將在第三季度實現，但目前估計其中一部分將在——抱歉，大部分將在第二季度實現，其餘部分將在第三季度實現，所以。

And in Q4 the rebuild again.

並在第四季再次重建。

Yes.

是的。

Got it. So is it fair to say two-thirds, one-third between Q2, Q3?

知道了。那麼，說 Q2 和 Q3 之間各佔三分之二和三分之一是否公平？

Yeah, that's a good number.

是的，這是一個好數字。

Perfect. Thank you very much.

完美的。非常感謝。

John Lovallo, UBS.

瑞銀的約翰·洛瓦洛。

Hi, guys. Thanks for taking my questions. The first one is just on tariffs. I mean, you talked about less than 5% of COGS impacted by tariffs and you spoke of some mitigation efforts, including building inventory, negotiating with suppliers. I guess the question is, is there any thought of resourcing out of China?

嗨，大家好。感謝您回答我的問題。第一個問題僅涉及關稅。我的意思是，您談到了受關稅影響的 COGS 不到 5%，並且您談到了一些緩解措施，包括建立庫存、與供應商談判。我想問題是，有沒有想過要從中國取得資源？

And then, also how does the possibility of pricing fit into your mitigation efforts?

那麼，定價的可能性如何融入您的緩解措施中？

Our exposure to China is very, very limited. Just a fraction of a percentage is coming out of China. We've got more that are coming out of some other countries that are also tariff impacted. And so that's where we're looking at potentially moving things around to achieve more efficient levels of tariffs or even potentially back here to the States. But of course, there's a lot of people that are looking for those type of opportunities at this point.

我們對中國的接觸非常非常有限。只有一小部分來自中國。我們還有更多產品來自其他一些同樣受到關稅影響的國家。因此，我們正在考慮採取一些可能的措施，以實現更有效的關稅水平，甚至可能回到美國。但當然，現在有很多人正在尋找這類機會。

And rather than make any rash moves at this point, we would prefer to wait a little bit, see what the eventual outcomes are going to be. But I'm extremely proud of our supply chain team, the way that they've jumped on it, made sure that the leadership team has had the information that we need to make decisions and the negotiations that they've been able to already go into and offset some of those costs.

我們現在不想採取任何輕率的行動，而是寧願等待一段時間，看看最終的結果。但我對我們的供應鏈團隊感到非常自豪，他們積極參與其中，確保領導團隊掌握了我們做出決策所需的信息，並且他們已經能夠進行談判並抵消部分成本。

Understood. And then the comment on the entry level sort of stabilizing as you move through the quarter. I'm curious what you think is driving that. I would have thought that that was more reliant upon consumer sentiment, which seems to have, if anything, deteriorated a bit as the quarter went on. So any thoughts on that?

明白了。然後，隨著季度的推進，對入門級的評論會逐漸穩定下來。我很好奇您認為是什麼導致了這種情況。我原本以為這取決於消費者情緒，但隨著本季的進展，消費者情緒似乎惡化。對此您有什麼看法嗎？

Yeah. Tough to say specifically what's in that consumer's mind right now? I do think it is coming back to the fact that repair and remodel has been down for a number of years now. It's very rare that you see below average spending for as many years as we have now. It does end up catching back up and it does tend to start more, so at the high end of the marketplace. And even as I mentioned before, our entry level customer is still a higher end customer when we look at the overall economy.

是的。很難具體說出消費者現在心裡在想什麼？我確實認為，事實是，維修和改造已經停止好幾年了。像我們這樣多年來一直低於平均值的消費現象非常罕見。它最終會重新趕上並趨於更多地啟動，因此處於市場的高端。正如我之前提到的，從整體經濟來看，我們的入門級客戶仍然是高端客戶。

Makes sense. Thank you.

有道理。謝謝。

Phil Ng, Jefferies.

傑富瑞的 Phil Ng。

Hey guys, congrats on a strong start to the year. I guess, for me the question is really on back half. You're calling for a ramp in top line. But also implicitly, your guidance implies incremental EBITDA margins call it in the mid-60s, which would be pretty impressive and noticeably above your 35% to 40% longer-term target. Can you expand on some of the levers that you expect to use to kind of drive margins higher? Any that you could kind of quantify from a continuous improvement standpoint that might be a good guy for margin in the back half.

嘿夥計們，恭喜你們今年有一個好的開始。我想，對我來說，問題其實在於後半部。您正在呼籲在頂線上設置一個斜坡。但同時隱含地，您的指導意味著增量 EBITDA 利潤率將在 60 年代中期，這將是相當令人印象深刻的，並且明顯高於您的 35% 至 40% 的長期目標。您能否詳細說明一下您希望使用哪些手段來提高利潤率？從持續改進的角度來量化任何事物，都可能對後半部的利潤產生正面的影響。

As Bryan noted, we won't get into the specifics of any one continuous improvement program. But to your point, you will start to see some significant improvements in our margin starting really in Q3 and that is a result of many of these continuous improvement programs coming into fruition.

正如布萊恩所指出的，我們不會深入探討任何一個持續改善計畫的具體細節。但正如您所說，從第三季開始，您就會開始看到我們的利潤率顯著改善，這是許多持續改善計畫取得成果的結果。

But it's also, again, we will have the impact of some of the enhanced changeover costs that, that were impacting Q1 and Q2. Those will go away and then just better volumes than we had in Q3 compared to Q3 a year ago. And then Q4 will still look better than a year ago as well.

但同樣，我們也會受到一些增強的轉換成本的影響，這些成本影響了第一季和第二季。這些都會消失，而且與去年同期相比，今年第三季的交易量會更好。那麼第四季的表現仍將比一年前更好。

Okay, that's helpful. And then a question for Bryan. This isn't so much about the AZEK/James Hardie combination, but it's more broader. Certainly from a distribution channel partner dynamic, we're seeing some signs of further consolidation, call it the next three to five years strategically, is there any big philosophy changes perhaps maybe your approach on M&A or how you're going to approach your go-to-market strategy going forward?

好的，這很有幫助。然後問布萊恩一個問題。這與 AZEK/James Hardie 的組合關係不大，但涉及範圍更廣。當然，從分銷通路合作夥伴的動態來看，我們看到了一些進一步整合的跡象，從策略上講，未來三到五年，您的理念是否會有大的改變，也許是您在併購方面的方法，或者您將如何處理未來的市場進入策略？

I wouldn't say there's necessarily any change to our M&A strategy, but I think we all recognize that from a distribution perspective, there are national distributors that are out there and those that have the full country capability is where they're looking to get along the way. So that's something that we've been cognizant of for quite some time now. And of course, we keep our ear to the ground very closely and we're extremely happy with the group of distributors that we work with today.

我不會說我們的併購策略必然會有​​任何改變，但我認為我們都認識到，從分銷的角度來看，存在著全國性的分銷商，而那些擁有全面覆蓋全國能力的分銷商正是他們所尋求的。這是我們很久以前就已經意識到的事情。當然，我們一直密切關注市場動態，我們對目前合作的經銷商群體感到非常滿意。

Are there still any gaps right now or you're in a really good spot in terms of how you want to be on that front?

目前還存在什麼差距嗎？或者就您希望在這方面取得的成績而言，您處於非常好的位置嗎？

We're in a good spot, yeah.

是的，我們處境很好。

Okay. Thank you.

好的。謝謝。

Trey Grooms, Stephens.

特雷格魯姆斯、史蒂芬斯。

Hey, good afternoon. Thanks for taking the question. This is maybe just more for clarity, just to make sure I understand it right or heard it right. So you mentioned in the press release $4 million of impact to gross profit from the railing conversion costs. But you mentioned three things that impacted the quarter. The rail conversion, lower production, and the enhanced production changes there on the enhanced products that they were about a third, a third a third. So is that saying that each one of these things were $4 million or are they all kind of lumped into that $4 million that you described as only railing conversion in the press release just so I'm clear.

嘿，下午好。感謝您回答這個問題。這可能只是為了更清楚，只是為了確保我理解正確或聽得正確。您在新聞稿中提到欄桿改造成本對毛利的影響為 400 萬美元。但您提到了影響本季的三件事。鐵路轉換、產量降低和產量增強對增強型產品的影響約為三分之一、三分之一、三分之一。那麼，是否是說這些東西每件都是 400 萬美元，還是它們都集中到你在新聞稿中描述的那 400 萬美元中，只是作為欄桿轉換，這樣我就清楚了。

The earlier is $4 million, $4 million, $4 million. Think of it like that.

較早的是400萬美元，400萬美元，400萬美元。就這麼想吧。

Got it. Perfect. Okay. But in the -- and also for clarity -- sorry, the pro -- or the adjusted gross profit, that only excludes that, that $4 million for the railing conversion only, so it doesn't take into account the others.

知道了。完美的。好的。但在 — — 也為了清楚起見 — — 抱歉，專業 — — 或調整後的毛利中，只排除了那 400 萬美元僅用於欄桿轉換，因此沒有考慮其他費用。

That is correct.

沒錯。

Okay, got it. And then on the -- so I guess, all of those three things will be kind of behind you as you move into the second half. And then there was a $1.5 million charge or impact related to the Arkansas startup. Is that something that's going to recur or was this more isolated to the rollout of the plastics that was -- that you rolled out late in the quarter?

好的，明白了。然後——所以我想，當你進入下半場時，這三件事都會成為過去。然後還有與阿肯色州新創公司相關的 150 萬美元的費用或影響。這種現象會再發生嗎？還是僅僅與您在本季末推出的塑膠產品有關？

Great question. So yeah, the impact that we saw for the Arkansas facility was in SG&A this quarter as we pulled in and trained the new group of employees that, that started running the production at the very end of the quarter. In Q2, Q3 and Q4, you will see some production inefficiencies from that startup that will impact COGS.

好問題。是的，我們看到阿肯色州工廠的影響體現在本季度的銷售、一般和行政費用上，因為我們招募並培訓了一批新員工，他們在本季結束時開始負責生產。在第二、第三和第四季度，你會發現該新創公司的一些生產效率低下將影響 COGS。

Recall, if we go back to the end of the year call, we talked about $15 million to $20 million of one-time cost within the year. Roughly $15 million of that was related to Little Rock as well as railing transition costs. And then the remainder is related to digital transformation costs. That gives you an idea of what the total numbers are for the year again.

回想一下，如果我們回顧一下年底的電話會議，我們談到了今年的一次性成本約為 1500 萬至 2000 萬美元。其中約 1500 萬美元與小石城及欄桿過渡費用有關。其餘部分與數位轉型成本有關。這可以讓你再次了解今年的總數是多少。

Okay, great. Got it. Thanks, Bryan. Thanks, Brenda.

好的，太好了。知道了。謝謝，布萊恩。謝謝，布倫達。

Thanks.

謝謝。

Matthew Bouley, Barclays.

巴克萊銀行的馬修·布萊（Matthew Bouley）。

Good evening, everyone. Thanks for taking the questions. Just back on the tariffs again, less than 5% cost of sales impacting that. I know you have negligible China, so probably limits the total dollar impact. But just you did hold the fiscal year EBITDA margin guys. I just wanted to I guess, double check on what that dollar impact may end up being. And was the expectation that you're kind of mitigating that, that cost entirely or does it just end up being kind of too small to move the needle? Thank you.

大家晚上好。感謝您回答這些問題。再次回到關稅問題，影響問題的銷售成本不到 5%。我知道中國的影響微不足道，因此可能限制了美元的整體影響。但你們確實維持了財政年度的 EBITDA 利潤率。我只是想再檢查一下最終對美元的影響會是什麼。您是否期望能夠完全減輕這種成本，還是最終成本太小而無法產生影響？謝謝。

We have not mitigated that cost entirely. The team's done a great job in working through mitigation actions. There are continued opportunities that we have. We're going to leave it with the guidance less than 5%. And the reason why I think it's important to look at it that way. There's a finished goods impact to this, but then there's an indirect purchasing impact to this which is going to have a little bit longer of a tail.

我們還沒有完全減輕這項成本。該團隊在緩解措施方面做得非常出色。我們仍擁有持續的機會。我們將維持低於 5% 的指導水準。這就是為什麼我認為以這種方式看待它很重要。這對成品有影響，但對間接購買也有影響，其影響持續時間會更長一些。

So the spare parts that we need to buy, the gloves, safety glasses, all of those things that are sourced out of China and they will continue to move into different countries to try to avoid the 145% tariffs that are there. So that's why I'm not going to provide a number on that right now and hold to the less than 5%. But we are committed to mitigating it, working with our suppliers and then looking at whatever other actions need to be taken.

因此，我們需要購買的備件、手套、安全眼鏡等所有這些東西都是從中國採購的，它們將繼續運往不同的國家，以試圖避免那裡的 145% 的關稅。所以這就是為什麼我現在不打算提供一個數字，而是堅持低於 5% 的比例。但我們致力於減輕這項影響，與我們的供應商合作，然後研究需要採取的其他措施。

Okay, got it. Thank you for that, Bryan. And then secondly, just on the entry level versus the more premium, just any more color on kind of how those performed. I know you mentioned several times that entry level stabilized, but just kind of how they performed relative to the total.

好的，明白了。謝謝你，布萊恩。其次，僅就入門級與更高階的產品進行比較，就其性能表現而言，還有更多的細節。我知道您多次提到入門級已經穩定下來，但這僅僅是相對於總體而言它們的表現如何。

And as you think about kind of the full year, is the expectation that the entry levels specifically would turn positive along with the total or does that still end up kind of flattish or down kind of just double clicking there on that entry level side? Thank you.

當您考慮全年情況時，是否預期入門水平會隨著總數一起變為正值，還是最終仍會持平或下降，只是在入門水平方面出現雙擊？謝謝。

As we saw at the end of last year, going into the New Year, we were seeing improvement at that entry level, but we continued to see very strong sales with the premium products that are out there. So that's continuing in the marketplace and we continue to see sequential improvement with those entry level products.

正如我們在去年年底看到的那樣，進入新的一年，我們看到入門級產品有所改善，但我們仍然看到高端產品的銷售非常強勁。因此，這種趨勢在市場上持續存在，我們也看到這些入門級產品不斷進步。

Okay. Thanks, guys. Good luck.

好的。謝謝大家。祝你好運。

Thanks.

謝謝。

Anthony Pettinari, Citigroup.

花旗集團的安東尼佩蒂納裡。

Good afternoon. Just following-up on Arkansas, on the CapEx side, is there any finer point you can put on the quarterly cadence of capital spending there and when that spending is essentially done, whether that's 1Q '26 or a bit earlier or a bit later, just trying to understand when that free cash flow step up could occur.

午安.就阿肯色州的資本支出方面，您能否更詳細地說明一下該州資本支出的季度節奏以及支出何時基本完成，無論是 2026 年第一季度還是稍早或稍晚，只是想了解自由現金流何時會增加。

So again, as a reminder, yes, the CapEx spend -- total CapEx spend is estimated at $550 million. This year's total CapEx spend is about $200 million. The majority of that will be the Arkansas facility. So you should expect that we will have the vast majority of that $550 million spent by the end of this year. So 2026, you will start and should expect to see strong cash flow improvements going 2026 and beyond.

所以再次提醒一下，是的，資本支出——總資本支出估計為 5.5 億美元。今年的資本支出總額約為 2 億美元。其中大部分將是阿肯色州的工廠。因此，你應該可以預料到，到今年年底，我們將花掉這 5.5 億美元中的絕大部分。因此，從 2026 年開始，您應該可以預期看到 2026 年及以後強勁的現金流改善。

Got it, got it. And then, you mentioned the investments in digital transformation. I think you announced new SVP of Marketing last month with digital experience and you brought on a CIO late last year. Can you just talk about the digital transformation efforts, kind of what inning you're in and what kind of benefits you're looking to drive.

明白了，明白了。然後，您提到了對數位轉型的投資。我記得您上個月宣布了一位具有數位經驗的新行銷高級副總裁，並且您在去年年底任命了一位資訊長。您能否談談數位轉型的努力，您目前處於什麼階段，以及您希望獲得什麼樣的利益。

Yeah, sure. So the company is making remarkable progress in advancing its digital transformation and I'd say it's in three key areas of focus. One, optimizing our end-to-end business processes through increased automation and deeper ERP utilization. Second, we are making progress to harness the power of data by evolving our enterprise data platform to provide real time accurate insights that will be valuable not only to Trex's internal employees in making more timely, informed decisions, but also its data that we can use with our consumers and our customers. And then, thirdly, we are fostering a culture of innovation by identifying and removing friction in every step in the customer journey. So this is again really aimed at enhancing overall customer experience.

是的，當然。因此，該公司在推動數位轉型方面取得了顯著進展，我認為主要專注於三個關鍵領域。一是透過提高自動化程度和更深入地利用 ERP 來優化我們的端到端業務流程。其次，我們正在利用數據的力量，透過改進我們的企業數據平台來提供即時準確的見解，這不僅對 Trex 的內部員工做出更及時、更明智的決策很有價值，而且我們還可以將其數據用於我們的消費者和客戶。第三，我們透過識別和消除客戶旅程中每一步的摩擦來培養創新文化。所以這確實是為了提高整體客戶體驗。

Okay. That's very helpful. I'll turn it over.

好的。這非常有幫助。我把它翻過來。

Adam Baumgarten, Zelman & Associates.

亞當‧鮑姆加滕 (Adam Baumgarten)，澤爾曼與合夥人公司。

Hey guys, just one for me. Just on the balance of the year, are you assuming, given the guidance and kind of what you saw in the first quarter that sell-through remains at that mid to high-single digit rate over the balance of the year?

嘿夥計們，我只要一個。就全年情況而言，根據您在第一季看到的指導和情況，您是否認為全年的銷售率將保持在中高個位數的水平？

Well, that's the full year guidance that we provided 5% to 7%. So less worried about exactly how it works by quarter. The real volume quarters are Q2 and Q3. So that's really when it counts that you see that sell-through occur.

嗯，這是我們提供的 5% 至 7% 的全年指導。因此，我們不必擔心其具體按季度如何運作。實際成交量季度是第二季和第三季。因此，這才是真正重要的是看到銷售的發生。

Okay, thanks.

好的，謝謝。

Thanks.

謝謝。

Thank you. There are no further questions at this time. I'll now hand back to Bryan Fairbanks for closing remarks.

謝謝。目前沒有其他問題。現在我將把發言權交還給布萊恩費爾班克斯 (Bryan Fairbanks)，請他作最後發言。

Thank you for participating in our call this evening, and we look forward to meeting with many of you in the coming weeks. Good evening.

感謝您參加我們今晚的電話會議，我們期待在未來幾週與你們中的許多人會面。晚安.

That does conclude our conference for today. Thank you for participating. You may now disconnect.

今天的會議就到此結束了。感謝您的參與。您現在可以斷開連線。