Trex Company Inc (TREX) 2025 Q3 法說會逐字稿

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

大家好，歡迎參加 Trex 公司 2025 年第三季財報電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Casey Kotary. Please go ahead.

現在我將把會議交給凱西·科塔里。請繼續。

Thank you, everyone, for joining us today. With us on the call are Bryan Fairbanks, President and Chief Executive Officer; and Prith Gandhi, Senior Vice President and Chief Financial Officer. Joining Bryan and Prith is Amy Fernandez, Senior Vice President, Chief Legal Officer and Secretary; as well as other members of Trex management.

謝謝各位今天蒞臨。與我們一起參加電話會議的有總裁兼執行長布萊恩·費爾班克斯，以及高級副總裁兼財務長普里特·甘地。與布萊恩和普里思一同出席的還有高級副總裁、首席法律官兼秘書艾米·費爾南德斯，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 third 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新聞稿，公佈了 2025 年第三季的財務業績。新聞稿可在公司網站上取得。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保留 30 天。

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

現在我將把電話轉給艾米·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意義上的前瞻性陳述。這些聲明存在一定的風險和不確定性，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，以及我們根據 1933 年和其他 1934 年證券交易法向美國證券交易委員會提交的文件。

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，本次電話會議也將提及非GAAP財務指標。這些指標與相應的GAAP財務指標的調節表可在trex.com網站上的獲利新聞稿中找到。本公司明確聲明，無論是否因新資訊、未來事件或其他原因，均不承擔公開更新或修訂任何前瞻性聲明的義務。

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

介紹完畢，接下來我將把電話交給布萊恩‧費爾班克斯。

Thank you, Amy, and thank you all for participating in today's call to review our third-quarter results and discuss our business outlook. We anticipated 2025 would include some recovery in R&R spend based on historical trends. While there were indications of recovery in the second quarter into July, consumer demand eased during the rest of the third quarter, resulting in third-quarter revenues coming in 5% below the midpoint of our guidance range.

謝謝艾米，也感謝各位參加今天的電話會議，共同回顧我們第三季的業績並討論我們的業務展望。根據歷史趨勢，我們預計 2025 年研發支出將有所回升。雖然第二季到 7 月出現了復甦跡象，但第三季剩餘時間消費者需求有所放緩，導致第三季營收比我們預期範圍的中點低 5%。

But there were a number of positive takeaways worth noting. First, our positioning in the Pro and Home Center channels continue to serve us well and remains a long-term advantage for Trex. Second, new products accounted for 25% of our trailing 12-month sales. This compares favorably with last year's third quarter, when new products accounted for 18% of our 2024 nine-month sales, demonstrating how well aligned our new product launches are with consumer preferences.

但其中也有一些值得注意的正面收穫。首先，我們在專業通路和家居中心通路的定位繼續為我們帶來良好效益，並且仍然是 Trex 的長期優勢。其次，新產品占我們過去 12 個月銷售額的 25%。與去年第三季相比，這一數字相當可觀。去年第三季度，新產品占我們 2024 年前九個月銷售額的 18%，這表明我們的新產品發布與消費者的偏好高度契合。

Third, our railing strategy, now in its second full year, continues to yield positive results. In Q3, our sales were robust and in line with our expectations. And lastly, our profitability was strong, with gross profit benefiting from higher sales volumes and efficiencies gained from our continuous improvement projects, and adjusted EBITDA increasing by 33%, inclusive of a 15% increase in SG&A spending.

第三，我們的護欄策略現在已經進入第二個完整年度，並繼續取得正面成果。第三季度，我們的銷售業績強勁，符合預期。最後，我們的獲利能力強勁，毛利受益於更高的銷售量和持續改善項目帶來的效率提升，調整後的 EBITDA 成長了 33%，其中包括 SG&A 支出成長 15%。

These results were achieved under mixed market conditions. As we look ahead, we believe these positive achievements in a challenging market will benefit Trex when the buying season begins in January 2026 in tandem with our Early Buy Program.

這些結果是在混合市場環境下取得的。展望未來，我們相信，在充滿挑戰的市場中取得的這些積極成就，將使 Trex 在 2026 年 1 月採購季開始時受益，同時配合我們的提前購買計劃。

Trex continues to benefit from the strength of our channel positioning, being the leading company in our industry that serves the Pro channel and is both on the shelf and available by special order at the leading home centers. We continue to put priority on ensuring that Trex is present wherever the consumer is shopping for decking and railing products. Also, our new products, products we launched over the last 36 months, have shown impressive growth.

Trex 持續受惠於我們強大的通路定位，作為業內領先的公司，我們服務於專業管道，產品既可在主要家居中心現貨供應，也可透過特殊訂單購買。我們將繼續把確保Trex產品出現在消費者購買露台和欄桿產品的任何地方作為首要任務。此外，我們過去 36 個月推出的新產品也取得了令人矚目的成長。

While it generally takes about three years for new products to gain full traction, we are pleased with the early success of our most recent launches. This includes products we added to our Trex Select decking line. We launched three new colors featuring elevated aesthetics and performance, including the industry's first mid-price deck board that includes SunComfortable, our proprietary heat mitigating technology. In addition, Trex Select decking is submersible and rated for wild urban interface, making it ideal for marine applications in areas susceptible to wildfires.

雖然新產品通常需要大約三年時間才能完全獲得市場認可，但我們對最近推出的產品的早期成功感到滿意。這包括我們添加到 Trex Select 系列地板產品線中的產品。我們推出了三種全新配色，兼具美觀和性能，其中包括業界首款採用 SunComfortable（我們專有的隔熱技術）的中價位甲板板。此外，Trex Select 甲板可浸入水中，並適用於野外城市交界地帶，使其成為易受野火侵襲地區的海洋應用的理想選擇。

We now have the most differentiated mid-priced product on the market. And we continue to see strong demand across our railing portfolio, which we filled out in 2024 with the addition of our innovative cable and glass railing systems and then added our new enhanced steel system and select aluminum systems in early 2025. Year to date, our railing sales are tracking to the double-digit, year-on-year growth that was expected, and we are well positioned to continue on this path in 2026.

我們現在擁有市場上最具差異化的中價位產品。我們繼續看到整個欄桿產品組合的強勁需求，我們在 2024 年透過增加創新的纜繩和玻璃欄桿系統完善了該產品組合，然後在 2025 年初增加了新的增強鋼系統和部分鋁系統。今年迄今為止，我們的欄桿銷售額正朝著預期的兩位數同比增長穩步邁進，我們已做好充分準備，在 2026 年繼續保持這一增長勢頭。

We continue to elevate branding, marketing and R&D spend in the third quarter to support future growth. Our new Performance-Engineered for Your Life Outdoors campaign launched earlier this year, and it highlights our leadership in delivering outdoor solutions that combine lasting beauty with real-world durability.

第三季度，我們將持續增加品牌建立、行銷和研發方面的投入，以支持未來的成長。我們今年稍早推出了全新的「專為您的戶外生活而設計的性能工程」活動，該活動突顯了我們在提供兼具持久美觀和實用耐用性的戶外解決方案方面的領先地位。

These investments in branding and a refreshed marketing campaign have produced significant increases in early indicators of purchase intent. Trex's Product Sample Program and website traffic are both up 50% year on year, and our improved Cost Calculator is driving higher completion rates and generating double-digit increases in lead generation for our contractors.

這些在品牌建立和全新行銷活動方面的投資，顯著提高了早期購買意願指標。Trex 的產品樣品計劃和網站流量均年增 50%，我們改進的成本計算器正在推動更高的完成率，並為我們的承包商帶來兩位數的潛在客戶成長。

Another highlight of the third quarter is the continued progress that we're making on our new state-of-the-art plastic processing and decking facility in Arkansas. Production rates and yields in our plastic processing operations continue to surpass our initial expectations. These results support our expectation that once it's fully built, Arkansas will be our most efficient production hub, enabling us to capitalize on growth opportunities for years to come.

第三季的另一個亮點是我們在阿肯色州新建的最先進的塑膠加工和甲板工廠的持續進展。我們的塑膠加工業務的生產率和產量持續超出我們最初的預期。這些結果印證了我們的預期，一旦全面建成，阿肯色州將成為我們最高效的生產中心，使我們能夠在未來幾年抓住成長機會。

Our production level loading strategy, which is now completing its first full annual cycle, has allowed us to increase our operating efficiency and enabled us to work even more closely with our Pro channel partners, positioning us to respond quickly when repair and remodel spend recovers. As we noted in our earnings release today, we are anticipating a muted fourth quarter and have adjusted our production levels accordingly.

我們的生產水平負載策略目前已完成第一個完整的年度週期，這使我們能夠提高營運效率，並使我們能夠與專業通路合作夥伴更緊密地合作，從而使我們能夠在維修和改造支出恢復時迅速做出反應。正如我們在今天發布的財報中所提到的，我們預計第四季度業績將較為平淡，並已相應地調整了生產水平。

Our fourth-quarter sales guidance considers similar market sell-through, as seen in the third quarter. Additionally, the fourth quarter is the seasonally lightest period of shipments for decking, railing and accessories, and we expect that our channel partners will manage their year-end inventory to lower levels than in the prior year.

我們第四季的銷售預期與第三季的市場銷售情況類似。此外，第四季是甲板、欄桿和配件出貨量季節性最低的時期，我們預計我們的通路合作夥伴會將年底庫存控制在比前一年更低的水平。

Looking ahead, Trex is moving forward with strategies to design to capture an increasing share of the conversion from wood to composite decking. In addition to including our popular SunComfortable heat mitigating technology and new decking colors to be introduced in 2026, we have new product launches planned for next year that will include features designed to expand our market penetration. We support this increased level of activity and continue to strengthen the advanced consumer awareness of the benefits of Trex decking and railing.

展望未來，Trex 正在推進相關策略，旨在搶佔從木質甲板轉變為複合材料甲板的更大份額。除了我們廣受歡迎的 SunComfortable 隔熱技術和將於 2026 年推出的新型甲板顏色外，我們還計劃在明年推出新產品，其中包括旨在擴大我們市場滲透率的功能。我們支持這種日益增長的活動水平，並將繼續加強消費者對 Trex 甲板和欄桿優勢的認識。

We expect that in future periods, our SG&A spending will return to pre-COVID levels of approximately 18% of net sales. Also, we expect the mix impact associated with another year of double-digit growth in railing and additional depreciation related to the expansion of our Arkansas facility to reduce 2026 gross margin by approximately 250 basis points. Two-thirds of the 250 basis point impact is related to depreciation, with the remainder related to mix.

我們預計，未來一段時間內，我們的銷售、一般及行政費用將恢復到新冠疫情前的水平，約為淨銷售額的 18%。此外，我們預計，由於鐵路業務連續第二年實現兩位數成長，以及阿肯色州工廠擴建帶來的額外折舊，2026 年毛利率將下降約 250 個基點。250 個基點的影響中，三分之二與折舊有關，其餘部分與產品組合有關。

In summary, while this year's sales are coming in below our initial expectations of mid-single-digit growth, 2025 to date has been a year of significant accomplishment for Trex despite market headwinds. I'm confident that our strategy for long-term growth positions us to realize significant gains as R&R spending recovers. Demonstrating this confidence, our Board of Directors has authorized a $50 million share repurchase program.

總而言之，儘管今年的銷售額低於我們最初預期的個位數中段成長，但儘管面臨市場逆風，2025 年至今對 Trex 而言仍是取得重大成就的一年。我相信，隨著員工薪資支出的復甦，我們的長期成長策略將使我們能夠獲得顯著收益。為了展現這種信心，我們的董事會已批准一項 5,000 萬美元的股票回購計畫。

I'm pleased to ask our new Senior Vice President and CFO to handle the third-quarter financial review. Prith Gandhi only came on board a month ago, but he's already making a positive difference at Trex. Prith?

我很高興請我們新任資深副總裁兼財務長負責第三季財務審查工作。Prith Gandhi 一個月前才加入 Trex，但他已經為公司帶來了正面的影響。普里特？

Thank you, Bryan, and good evening, everyone. I'm pleased to deliver my first financial review as Chief Financial Officer of Trex. I know many of you already and look forward to reconnecting and getting to know the Trex investors and other analysts who cover Trex. With that, I'll now review our third quarter 2025 and year-to-date results. Unless otherwise stated, all comparisons are on a year-over-year basis compared to the third quarter and first nine months of fiscal 2024.

謝謝你，布萊恩，大家晚上好。我很高興能以 Trex 財務長的身份向大家提交我的第一份財務報告。我認識你們中的許多人，期待與你們重新建立聯繫，並結識關注 Trex 的投資者和其他分析師。接下來，我將回顧我們 2025 年第三季和年初至今的業績。除非另有說明，所有比較均以 2024 財年第三季和前九個月為基準，逐年進行比較。

In the third quarter, net sales were $285 million, an increase of 22% compared to $234 million in 2024, driven by growth across product range, which was led by strength in railing as well as the lack of channel inventory destocking that we experienced in Q3 of last year. Gross profit was $115 million, a 23.9% increase from $93 million. And gross margin was 40.5%, a 60 basis point expansion from 39.9% in the prior year. This increase is primarily the result of lower labor costs and production efficiencies from our continuous improvement programs.

第三季淨銷售額為 2.85 億美元，比 2024 年的 2.34 億美元成長了 22%，這主要得益於產品系列的成長，其中欄桿產品表現強勁，以及去年第三季通路庫存去庫存的情況沒有發生。毛利為 1.15 億美元，比 9,300 萬美元成長了 23.9%。毛利率為 40.5%，比前一年的 39.9% 增加了 60 個基點。這一增長主要是由於勞動力成本降低以及我們持續改進計劃帶來的生產效率提高。

Our level loading program, which Trex has previously discussed, delivered a positive impact in Q3. Our strategic investments in the third quarter included onetime start-up costs related to the Arkansas facility of $1.4 million and onetime railing conversion costs of $0.3 million. Excluding these items, adjusted gross profit was $117 million.

Trex 先前討論過的均衡裝載計畫在第三季取得了積極成效。我們在第三季的策略投資包括與阿肯色州工廠相關的 140 萬美元一次性啟動成本和 30 萬美元一次性軌道改造成本。剔除這些項目後，調整後的毛利為 1.17 億美元。

Selling, general and administrative expenses were $45 million or 15.8% of net sales compared to $39 million or 16.6% of net sales in the prior year. This increase is primarily related to higher spending on branding and IT as we continue to advance on our marketing strategy and new product innovation, two elements essential to our success as the category leader in composite decking and railing.

銷售、一般及行政費用為 4,500 萬美元，佔淨銷售額的 15.8%，而前一年為 3,900 萬美元，佔淨銷售額的 16.6%。這一成長主要與我們在品牌和 IT 方面的支出增加有關，因為我們將繼續推進我們的行銷策略和新產品創新，這兩個要素對於我們作為複合甲板和欄桿品類領導者的成功至關重要。

In the third quarter, onetime expenses related to digital transformation activities and the start-up of the Arkansas facility were approximately $2.4 million. Excluding these onetime expenses, SG&A expenses were $43 million or 15% of net sales. Net income was $52 million in the third quarter or $0.48 per diluted share, an increase of 27.7% from $41 million or $0.37 per diluted share.

第三季度，與數位轉型活動和阿肯色州工廠啟動相關的一次性支出約為 240 萬美元。除去這些一次性支出，銷售、一般及行政費用為 4,300 萬美元，佔淨銷售額的 15%。第三季淨收入為 5,200 萬美元，即每股攤薄收益 0.48 美元，比上一季的 4,100 萬美元（即每股攤薄收益 0.37 美元）增長了 27.7%。

Excluding the previously mentioned onetime charges incurred in the third quarter, adjusted net income was $55 million or $0.51 per diluted share. Adjusted EBITDA was $90 million, up 33% compared to $68 million in the prior year, led by sales growth across our product lines, expanded gross profit margin, and stable year-on-year SG&A expense.

剔除前面提到的第三季發生的一次性費用，調整後的淨收入為 5,500 萬美元，即每股攤薄收益 0.51 美元。經過調整後的 EBITDA 為 9,000 萬美元，比上年的 6,800 萬美元成長了 33%，這主要得益於我們所有產品線的銷售成長、毛利率的擴大以及銷售、管理及行政費用的同比穩定。

From a year-to-date perspective, net sales for the first nine months of 2025 totaled $1 billion, a 3% increase compared to $984 million in the first nine months of 2024. Net income was $188 million or $1.75 per diluted share, a 13% decrease compared to $217 million or $1.99 per diluted share. Excluding onetime charges incurred year to date, adjusted net income was $198 million or $1.84 per diluted share, and adjusted EBITDA was $314 million.

從年初至今來看，2025 年前九個月的淨銷售額總計 10 億美元，比 2024 年前九個月的 9.84 億美元成長了 3%。淨利潤為 1.88 億美元，即每股攤薄收益 1.75 美元，比去年同期的 2.17 億美元（即每股攤薄收益 1.99 美元）下降了 13%。不計年初至今發生的一次性費用，調整後淨收入為 1.98 億美元，即每股攤薄收益 1.84 美元，調整後 EBITDA 為 3.14 億美元。

Year to date, operating cash flow was $293 million compared to $152 million in 2024. The increase was primarily due to the timing of working capital changes related to our level loading and channel inventory strategy. We anticipate ending the year with inventory levels at approximately the same level as the end of year 2024. Given our continued strong cash flow generation, we will look to repurchase up to $50 million in Trex shares through the end of 2025, depending on equity market conditions. We have invested $188 million in capital expenditures year to date, primarily related to the building out of the Arkansas facility.

今年迄今為止，經營現金流為 2.93 億美元，而 2024 年預計為 1.52 億美元。此次成長主要是由於與我們的均衡裝載和通路庫存策略相關的營運資金變化的時機所致。我們預計年底庫存水準將與 2024 年底的水準大致相同。鑑於我們持續強勁的現金流，我們將根據股票市場狀況，在 2025 年底前回購超過 5,000 萬美元的 Trex 股票。今年迄今為止，我們已在資本支出方面投資了 1.88 億美元，主要用於阿肯色州工廠的建設。

Now turning to our guidance for the remainder of 2025. As noted in today's earnings release, we now expect several factors to impact fourth-quarter sales, bringing them well below our original expectations. As Bryan mentioned, we expect consumer demand to remain muted in the fourth quarter, which is also the seasonally slowest time of the year. In addition, we expect our Pro channel partners to lower their inventories through the end of the year.

現在讓我們來看看我們對 2025 年剩餘時間的指導意見。正如今天發布的財報中所指出的，我們現在預計有幾個因素會影響第四季的銷售額，使其遠低於我們最初的預期。正如布萊恩所提到的，我們預計第四季消費者需求將保持疲軟，而第四季也是一年中季節性最淡的時期。此外，我們預計我們的專業通路合作夥伴將在年底前降低庫存。

Due to these factors, we are revising our full-year net sales and adjusted EBITDA margin guidance ranges. We now expect full year net sales to range from $1.15 billion to $1.16 billion, approximately flat with our reported sales in 2024. We also expect our full-year adjusted EBITDA margin to range from 28% to 28.5%. This net sales guidance implies a Q4 sales range from $140 million to $150 million. The implied low-double-digit Q4 adjusted EBITDA margin considers the impact on gross margin of reduced capacity utilization rates and continued spending on branding and marketing to accelerate future growth.

有鑑於上述因素，我們將修訂全年淨銷售額和調整後 EBITDA 利潤率預期範圍。我們現在預計全年淨銷售額將在 11.5 億美元至 11.6 億美元之間，與我們 2024 年公佈的銷售額大致持平。我們也預計全年調整後 EBITDA 利潤率將在 28% 至 28.5% 之間。該淨銷售額預期意味著第四季度銷售額將在 1.4 億美元至 1.5 億美元之間。隱含的第四季度調整後 EBITDA 利潤率低兩位數，考慮了產能利用率下降以及為加速未來成長而持續投入品牌推廣和行銷對毛利率的影響。

Full-year guidance for our other financial metrics include: SG&A expenses to be approximately 16.5% to 17% of net sales on an unadjusted basis; interest expense, less than $2 million; and depreciation in the range of $60 million to $65 million for the full year. We are projecting an effective tax rate of approximately 26%, and capital expenditures are projected to be approximately $210 million to $220 million for the full year as we continue the development of the Arkansas campus. The change is related to the timing of cash flows related to the completion of the project.

全年其他財務指標預期包括：銷售、一般及行政費用約為淨銷售額的 16.5% 至 17%（未經調整）；利息支出低於 200 萬美元；全年折舊額在 6,000 萬美元至 6,500 萬美元之間。我們預計有效稅率約為 26%，隨著我們繼續開發阿肯色州校區，全年資本支出預計約為 2.1 億美元至 2.2 億美元。這項變更與專案完成相關的現金流量時間表有關。

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

接下來，我將把電話轉回給布萊恩，請他作總結發言。布萊恩？

Thanks, Prith. Our business landscape is changing. Recent merger and acquisition activity in both the Pro channel and the home center has increased the importance of brand recognition and product differentiation in capturing end market demand. As the market leader with the largest network of contractors, dealers, distributors and home centers, Trex is best positioned and fully committed to gaining the greater share of the industry's long-term growth opportunities.

謝謝你，普里特。我們的商業環境正在改變。近期專業通路和家居中心的併購活動，提高了品牌認知度和產品差異化在滿足終端市場需求的重要性。作為擁有最大承包商、經銷商、分銷商和家居中心網路的市場領導者，Trex 處於最佳位置，並致力於獲得行業長期成長機會的更大份額。

Operator, I'd now like to open the call to questions.

接線員，現在我想開放提問環節。

(Operator Instructions)

（操作說明）

Ryan Merkel, William Blair.

瑞安·默克爾，威廉·布萊爾。

Thanks for the question. Bryan, I want to start off with sell-through. What was it in the third quarter? I know you said the fourth quarter, you're assuming the same. But also, what was the surprise in the quarter?

謝謝你的提問。布萊恩，我想先從銷售情況談起。第三季發生了什麼事？我知道你指的是第四季度，你的假設也是。那麼，本季有哪些令人意外的發現呢？

Where was the slowdown? Was it the Pro channel? Was it retail? Just any more color there? And also on cadence, it sounds like it slowed after July?

增速放緩的具體原因是什麼？是專業頻道嗎？是零售業嗎？那裡還需要其他顏色嗎？還有，節奏方面，聽起來好像7月之後就慢下來了？

Yeah. On a year-to-date basis, we saw a low single-digit sell-through. As we had our last earnings call, we did see that accelerate in June and July, giving us some confidence that, that was going to continue as the year went on. Come August and September, we did not see that go on. And it wasn't channel dependent. It was really across all of the channels.

是的。今年迄今為止，我們的銷售轉換率僅為個位數。在我們上次的財報電話會議上，我們確實看到這一趨勢在 6 月和 7 月加速發展，這讓我們有信心，隨著今年的進行，這一趨勢將會繼續下去。到了八月和九月，我們並沒有看到這種情況發生。而且這與頻道無關。它確實遍及所有管道。

Now we expect on a full year basis from a sell-through perspective to be low-single digit on the year. While revenue will be flat with the prior year, we do expect to see some inventory come out of the channel, which will support that growth.

現在我們預計，從全年銷售情況來看，全年成長率將只有個位數。雖然收入將與前一年持平，但我們預計部分庫存將從通路中流出，這將支撐成長。

Okay. Got it. And then can you just clarify, why now that you're increasing the marketing spend and the SG&A? Is it the soft market? Is it new products? Is it rising competition? And I just want to clarify if you're guiding SG&A to 18% of sales in '26? It sounds like you are, but I just want to --

好的。知道了。那麼，您能否解釋一下，為什麼現在要增加行銷支出和銷售、管理及行政費用？是市場疲軟嗎？是新產品嗎？是競爭加劇嗎？我想確認一下，你們的目標是否是2026年銷售、管理及行政費用佔銷售額的18%？聽起來你好像是，但我只是想--

Yeah. We are guiding to 18%. And we feel that the marketing is extremely important, especially in a softer market to make sure that we are getting the Trex name in front of anybody who may be building a deck. We are also seeing more competitive spending from others out there in the marketplace. So backing away from that in a weaker market, we don't feel is the right thing to do.

是的。我們預計目標價為 18%。我們認為行銷極為重要，尤其是在市場疲軟的情況下，確保所有可能建造露台的人都能了解 Trex 這個品牌。我們也看到市場上其他競爭對手的支出也在增加。因此，在市場疲軟的情況下放棄這種做法，我們認為是不正確的。

We've got some great messaging out there. We are starting to see improvements with the early indicator side of things. We just need a little bit better consumer confidence around that and a better feeling around repair and remodel. And I think we'll start seeing some very attractive growth rates again.

我們發布了一些很棒的資訊。我們已經開始看到早期指標方面有所改善。我們只需要提高消費者對這方面的信心，以及改善消費者對維修和改造的看法。我認為我們將再次看到一些非常有吸引力的成長率。

Collin Verron, Deutsche Bank.

科林‧維隆，德意志銀行。

I guess just given the lower inventory in the channel in the fourth quarter and the weaker trends that you're seeing, like any kind of handle you can give around how you're thinking about early 2026 and the load-in ahead of decking season for next year, just given the softer demand that you guys are seeing as we exit this year?

我想，鑑於第四季度通路庫存較低，以及你們看到的疲軟趨勢，你們能否就 2026 年初以及明年甲板季前的裝貨情況給出一些看法？畢竟，隨著今年的結束，你們也看到了疲軟的需求。

I expect that we will see a robust Early Buy. I don't worry as much about Early Buy, per se. It's about getting that product stage for when the season turns on. I'm more concerned about the overall growth for the year.

我預計會出現強勁的早期買入行情。我倒不太擔心提前購買這件事本身。關鍵在於為銷售旺季到來時的產品上市做好準備。我更關心的是全年的整體成長情況。

We've got our normal programs put together. We will get product stage out in the marketplace. We haven't laid out those targets as of yet. We'll give more detail in the end of the year call on that. But I expect the program to be similar to what we've seen in prior years.

我們已經安排好了常規的節目單。我們將把產品推向市場。我們目前還沒有訂定這些目標。我們將在年底的電話會議上提供更多細節。但我預計今年的節目安排會和往年類似。

Okay. That's helpful color. And then on SG&A spend, any -- how quickly does that SG&A spend usually turn into sort of an acceleration in demand in periods past where you might have seen a little bit of a softer R&R and you ramp up that spending? I guess, just curious as to how quickly you think you can see a return on that money.

好的。這是個很有幫助的顏色。那麼，在銷售、一般及行政費用方面，過去某些時期，當招聘和補償需求有所放緩時，銷售、一般及行政費用通常會多快轉化為需求的加速增長，而此時招聘和補償支出可能會有所增加？我只是好奇你覺得這筆錢多久能回本。

I think the best way to look at it is from an overall industry perspective. We've got a repair and remodel industry that's going to be down low-single digits. We expect our sell-through is going to perform up low-single digits. So that spending that we're doing from a branding perspective as well as the industry that we're in, the conversion opportunity against wood does give us a better opportunity for payoff with that additional spending.

我認為最好的看待這個問題的方式是從整個產業的角度來看。維修和改造行業的下滑幅度將非常小，預計只有個位數。我們預計銷售額將實現個位數低成長。因此，從品牌建立和我們所處行業的角度來看，我們所做的這些支出，相對於木材而言，確實為我們提供了更好的機會，讓我們能夠透過額外的支出獲得回報。

And I mentioned to the last question that came up, we are seeing a more competitive market environment from a spending perspective related to others that are out there advertising. We need to make sure that Trex name is in front of buyers as they're looking to make that decision. So more than just about having the product everywhere that consumer is going to be buying, we want to make sure that they're walking in the door to make the purchase or they're sitting with their contractor, they've already made that Trex decision.

對於最後一個提出的問題，我提到過，從廣告支出的角度來看，我們看到市場環境競爭更加激烈。我們需要確保在買家做出購買決定時，Trex 這個品牌能夠出現在他們眼前。因此，我們不僅要確保消費者在購買產品的各個地方都能買到，還要確保當他們走進店裡購買產品，或者與承包商坐在一起時，他們就已經做出了購買 Trex 的決定。

Susan Maklari, Goldman Sachs.

蘇珊‧馬克拉里，高盛集團。

My first question is on the pricing side. Bryan, you had talked about realizing some low-single-digit pricing in the past. I guess, given the environment that we're in, are you still expecting that to come through? Or can you talk a bit about price cost and how that is coming together?

我的第一個問題是關於價格方面的。布萊恩，你之前曾說過要實現一些個位數的低價。我想，鑑於我們所處的環境，你仍然期待這件事能夠實現嗎？或者您能否談談價格成本以及它們是如何結合在一起的？

We did take some pricing coming out of the second quarter. We also talked about not really realizing much of that pricing during the third quarter. We did have people buy ahead, and we went ahead and shipped that, of course, during the quarter itself. We saw a little bit come through in September, and then, of course, with lower revenue in the fourth quarter, you don't see too much impact for that.

我們確實在第二季進行了一些定價調整。我們也討論了第三季並沒有真正實現大部分定價目標的問題。我們確實收到了一些預購訂單，當然，我們也在本季內完成了出貨。我們在 9 月看到了一些成效，當然，由於第四季營收下降，所以這方面的影響並不大。

Right. Okay. And then maybe turning back to brand. You obviously have a very well-established brand and something that is recognized by a lot of consumers.

正確的。好的。然後或許會重新關注品牌。顯然，你們擁有一個非常成熟的品牌，並且被許多消費者所認可。

As you think about spending on the marketing and helping to drive that recognition, are there things that you're changing in your approach to your ad and marketing spend? And how are you able to leverage some of the investments you've made in the last couple of years around digital and data gathering to further that and make sure that, that spend is really effective?

在考慮如何增加行銷支出並提高品牌知名度時，您在廣告和行銷支出方面有哪些改變？您如何利用過去幾年在數位化和數據收集方面的一些投資來進一步推進這項工作，並確保這些支出真正有效？

Yes. Jodi Lee, who is our Senior Vice President of Marketing, joined us, I guess, about five, six months ago at this point, and we're already starting to see the benefits of some of the changes that she's making from a messaging perspective, how we're getting in front of those consumers. I expect as she gets a full year under her belt and we move into next year, that we even have more engaging programs related to that marketing message. So I'm pretty excited about the things that are on the plate as we move forward.

是的。我們的行銷資深副總裁 Jodi Lee 大約在五、六個月前加入我們，我們已經開始看到她從訊息傳遞的角度所做的一些改變所帶來的好處，以及我們如何接觸到這些消費者。我預計，隨著她累積了一整年的經驗，進入明年，我們將推出更多與該行銷訊息相關的、更具吸引力的項目。所以，對於我們接下來要做的事情，我感到非常興奮。

Rafe Jadrosich, Bank of America.

Rafe Jadrosich，美國銀行。

Bryan, how do you feel about the conversion rate of wood to composite and your market share trends within the category today versus where it's been historically? Or maybe year to date versus where it's been historically?

Bryan，你如何看待木材向複合材料的轉化率，以及你目前在該類別中的市場份額趨勢與歷史水平相比有何變化？或者，比較一下今年迄今的情況與歷史同期情況？

Yeah. Last quarter, we reported that through the end of 2024, there was 170 basis points of conversion from wood to composites. I don't have new data since that time frame. We do have pieces of data that come in from the channel itself, and what we are seeing is that there is continued conversion that's out there. I wouldn't say it's probably fine enough that I could put a basis point of conversion on it. But the data would indicate that consumers are still trending towards those composite products.

是的。上個季度，我們報告稱，到 2024 年底，木材向複合材料的轉換率將達到 170 個基點。自從那段時間以來，我沒有新的數據。我們確實從通路本身獲得了一些數據，我們看到的是，轉換率一直在持續上升。我不會說它準確到足以作為轉換基準點。但數據顯示，消費者仍傾向購買複合型產品。

Our strategy with our Enhanced Basics, which is really that wood fighter at about 2x the price of wood, and then our Enhanced Naturals product, roughly 3x the price of wood, giving that consumer the opportunity to see they can afford a Trex deck and be able to move up to a higher-end aesthetic with that Enhanced Naturals. That continues to be an effective strategy.

我們的策略是推出增強型基礎產品，這是一款價格約為木材兩倍的木材替代品；然後推出增強型天然產品，價格約為木材三倍，讓消費者有機會看到他們能夠負擔得起 Trex 甲板，並且能夠通過增強型天然產品提升到更高的美學水平。這仍然是一個有效的策略。

Okay. And then just with the conversion continuing, just kind of understanding the step-up in SG&A, you mentioned in the release that you're going back to sort of the pre-COVID level. I have to go back to 2017 to get to 18 -- around 18% of SG&A as a percent of sales. Your sales base is 2 times higher than that point. Is this sort of -- this level of spend like a catch-up where there's been underinvestment, and this is an opportunity? Or do we think about it as this is sort of just an appropriate longer-term run rate?

好的。隨著轉換的繼續，以及對銷售、一般及行政費用增長的理解，您在新聞稿中提到，你們正在恢復到新冠疫情前的水平。我必須追溯到 2017 年才能找到 18 這個數字——銷售、一般及行政費用佔銷售額的 18% 左右。您的銷售基數是該點的兩倍。這種支出水準是否是一種彌補先前投資不足的舉措，而這是一個機會？或者我們應該把它看作是一個合適的長期運行速度？

Recall, during COVID itself, we pulled way back on the marketing side of things. So we're back to a more normalized type marketing. It's really a reaction to two things: first, the weaker market condition. We believe that, that sales -- excuse me, that marketing in conjunction with our sales effort can drive better opportunity for us in the marketplace. And longer term, as we move forward and we start getting back to the growth levels that Trex is normally used to, I expect that we'll be able to see some leverage opportunities within SG&A again.

回想一下，在新冠疫情期間，我們大幅縮減了行銷方面的投入。所以我們又回到了更常規的行銷模式。這其實是對兩件事的反應：第一，市場狀況疲軟。我們相信，銷售——抱歉，是行銷——與我們的銷售工作結合，可以為我們在市場上創造更好的機會。從長遠來看，隨著我們向前發展，並開始恢復到 Trex 通常習慣的增長水平，我預計我們將能夠再次在銷售、一般及行政費用 (SG&A) 方面看到一些槓桿機會。

Keith Hughes, Truist.

Keith Hughes，Truist。

Sell-through is lower than you've anticipated, as you said, but it seems like a pretty drastic reduction in production and ordering from your customers. Are they anticipating this to continue to deteriorate going into next year?

正如你所說，銷售率低於預期，但這似乎是由於生產和客戶訂單的大幅減少所造成的。他們預計這種情況明年會繼續惡化嗎？

We are expecting -- we had an original expectation that we were going to be 5% to 7%. And instead, we expect that to be in low-single-digit levels. So that difference is really what's coming out. We're seeing the largest piece of that, of course, in the fourth quarter of this year. I'm not expecting anybody to be building any inventories as we move into the end of the year.

我們預期－我們最初的預期是5%到7%。相反，我們預計這一數字將保持在個位數低點。所以，這種差異才是真正顯現出來的。當然，我們看到的最大部分發生在今年第四季。我預計在年底前不會有人囤積庫存。

I think the other piece that's important to note is the channel has gotten better in managing inventory. We have a lot of different SKUs between the different decking colors that we have, the different railing products that we have. And our channel partners continue to get more efficient each year in the way they're running their supply chains. So that's why we expect the inventory to be down.

我認為另一點需要注意的是，該通路在庫存管理方面已經有所改進。我們有多種不同的 SKU，包括不同的甲板顏色和不同的欄桿產品。我們的通路夥伴在供應鏈營運方面，每年都在不斷提高效率。所以這就是我們預期庫存下降的原因。

As we move out into next year, we're coming off of three years of down repair and remodel, more and more pent-up demand out there. And at some point, that's going to break free, and we'll be ready to take advantage of it.

展望明年，我們剛結束了三年的停工維修和改造，市場上積壓的需求越來越多。總有一天，它會掙脫束縛，而我們將做好準備，抓住這個機會。

If sell-through stays where it is, will you run back -- go get some normal production in the first quarter?

如果銷售狀況不變，你會努力恢復正常生產，爭取在第一季達到正常水準嗎？

We will finish our inventory roughly in line with where we were last year. And we'll keep that -- will be a little bit of an increase in the new year. If we see stronger market conditions, we'll be able to bring on a couple of more lines without any issue.

我們將完成盤點，最終結果將與去年同期大致持平。我們會保持這個勢頭——新年伊始會略有增長。如果市場行情走強，我們就能毫無問題地增加幾條生產線。

Ketan Mamtora, BMO Capital.

Ketan Mamtora，BMO Capital。

Bryan, can you just remind us, some of the incremental cost that you had in the first half of '25 related to enhanced retooling, should we expect that to sort of reverse in 2026? And how much can you quantify that for us?

Bryan，你能否提醒我們一下，2025 年上半年與加強設備改造相關的一些新增成本，我們是否可以預期這種情況在 2026 年會有所逆轉？你能為我們量化一下嗎？

We didn't call that specifically out as a one-timer. It was under $5 million in the first half, the majority of it in the first quarter and then a much lesser piece of it in the second quarter. But no, I would not expect that to repeat next year.

我們並沒有明確指出那隻是個偶然事件。上半年收入不到 500 萬美元，其中大部分在第一季度，第二季度只佔很小一部分。但是，我不認為明年會再次發生這種情況。

Understood. Got it. And then any sort of early read into how CapEx would shake out for 2026, given that you are sort of almost at the end of the big Arkansas plant?

明白了。知道了。那麼，鑑於阿肯色州大型工廠的建設已接近尾聲，能否提前預測 ​​2026 年的資本支出？

Yeah. We still have $40 million, $50 million of Little Rock to go that will be in next year. And the other side of our cap spending will be down considerably as well. So we've talked about maintenance of business CapEx being in the 5% to 6%, but probably even the next few years, because of we have a new plant that it could be a little bit lower than that, we're probably looking around the $100 million range or so.

是的。我們還有 4000 萬到 5000 萬美元的小石城項目要完成，這些項目要到明年才能到位。我們薪資上限支出的另一部分也將大幅下降。我們已經討論過，業務維護資本支出佔比在 5% 到 6% 之間，但可能在未來幾年，由於我們有了一座新工廠，這個比例可能會略低一些，我們預計大約在 1 億美元左右。

That's all in, Bryan?

布萊恩，你就全都答應了嗎？

Yes, yes.

是的，是的。

Tim Wojs, Baird.

提姆·沃伊斯，貝爾德。

Bryan, on the gross margin headwinds in 2026, the 250 basis points that you're talking about with D&A and just railing mix, are there any offsets to that that we should think about? Because I guess if we have a couple of hundred basis points next year of margin compression, it does seem like it might be hard to actually generate gross profit growth or EBITDA growth. Just trying to kind of understand what might offset that mix to mix headwind.

Bryan，關於 2026 年毛利率面臨的不利因素，你提到的 D&A 和鐵路組合方面的 250 個基點，我們有哪些可以考慮的抵銷因素？因為我想，如果明年利潤率壓縮幾百個基點，那麼實現毛利成長或 EBITDA 成長似乎確實會比較困難。我只是想了解什麼因素可以抵消這種混合不利因素的影響。

We've got some other costs that are coming into the business as well. Of course, you've got higher labor cost, just general inflation that comes in. Our continuous improvement program should be offsetting that side of the business right now. We're calling this out specifically because this depreciation is coming in. We don't have an offset for it next year. The following year, as we get into production in Little Rock and we lay out the most optimum footprint for our production levels, then I think there is opportunity to be able to offset that.

我們還有一些其他成本需要承擔。當然，勞動成本也會上漲，還有普遍的通貨膨脹。我們的持續改進計劃目前應該能夠抵消業務中的這一方面問題。我們特意指出這一點，是因為折舊即將發生。我們明年沒有抵銷這部分支出的計畫。第二年，當我們在小石城投產並製定出最符合我們生產水平的最佳佈局時，我認為就有機會彌補這一損失。

And then from a mix perspective, this is related to tariffs on many of the new products that we have coming in. Whether it's aluminum or steel that's being sourced here in the US, the prices of those products have gone up because of tariffs or whether we're bringing it in overseas. So we are not able to capture all of the revenue from the -- to offset those tariffs in the general market conditions at this point.

從組合角度來看，這與我們即將進入市場的許多新產品的關稅有關。無論是美國本土生產的鋁或鋼鐵，由於關稅或其他原因，這些產品的價格都上漲了，無論我們是從海外進口的。因此，在目前的市場環境下，我們無法獲得全部收入來抵銷這些關稅。

Okay. Understood. And then I guess as you think about the sell-through numbers this year, just to clarify, the low-single digits, does that include or exclude the double-digit growth that you're seeing in railing?

好的。明白了。那麼，在考慮今年的銷售數據時，為了澄清一下，你說的個位數低增長率，是指包括還是不包括你在欄桿銷售中看到的兩位數增長呢？

Includes.

包括。

Michael Rehaut, JPMorgan.

Michael Rehaut，摩根大通。

Just wanted to see if I could get a little more granular if possible, on the 3Q, 4Q, the 3Q miss versus guidance and 4Q reduction. In total, it's about $65 million plus or minus a little, $15 million in the third quarter. Just trying to get a sense when you think about that, how much is just due to the softer-market backdrop relative to your prior expectations versus the reduction in inventory?

我想看看能否更詳細地了解一下第三季、第四季的情況，第三季業績未達預期與第四季業績下調的對比。總計約 6,500 萬美元，上下略有浮動，其中第三季為 1,500 萬美元。我只是想了解一下，您認為造成這種情況的原因中，有多少是由於市場環境比您之前的預期更為疲軟，又有多少是由於庫存減少造成的？

And also just trying to understand maybe by price point, there was some differentiation in the market earlier in the year in terms of low end versus mid- to high end and if you're seeing any differentiation in the second half?

另外，我還想了解一下，或許以價格來看，今年稍早市場上的低階產品與中高階產品之間是否存在一些差異，以及下半年是否也出現了這種差異？

Sure. Through the numbers that we already provided, we assumed a prior guidance, 5% to 7% growth, same thing from a sell-through perspective. Now we're talking about a low-single-digit-type growth. So let's call it roughly half of it, a little bit more is coming from market weakness side of it, and the remainder is coming out of inventory within the channel.

當然。根據我們之前提供的數據，我們假設了 5% 到 7% 的先前成長預期，銷售情況也是如此。現在我們說的是低個位數的成長。所以，我們姑且認為這大約佔一半，市場疲軟導致的損失略多一些，其餘部分則來自通路內的庫存。

As it relates to the various product lines, if we look back the past couple of years, excluding 2025, we did see meaningful differences at the high end of the market versus the entry-level products. That has not been nearly as impactful. It's really just been kind of broad-based at this point, where there is many one level of the product line that's overperforming or underperforming. We've just seen it kind of across the entire decking/railing side of the business.

就各個產品線而言，如果我們回顧過去幾年（不包括 2025 年），我們確實看到高端市場與入門級產品之間存在顯著差異。但那並沒有產生同樣的影響。目前來看，這種情況相當普遍，產品線中有很多層級的產品表現優異或表現不佳。我們已經在整個甲板/欄桿業務領域看到了這種情況。

Now we did mention with the new product, railing is growing nicely. But again, from a decking perspective, there's really no major difference from a growth perspective, the high versus the low.

正如我們之前提到的，隨著新產品的推出，欄桿市場發展勢頭良好。但從甲板搭建的角度來看，高低甲板在生長方面並沒有太大差異。

Okay. I appreciate that, Bryan. Also, I just wanted maybe a little clarification, if possible, around the 18% SG&A number for next year, if that's kind of a percentage that you would peg to any top-line number? Or is it more of a comment on an absolute basis where you're trying to peg a certain dollar number, and that 18% could be higher or lower based on how revenues actually come out?

好的。謝謝你，布萊恩。另外，如果可以的話，我想稍微確認一下明年18%的銷售、管理及行政費用率（SG&A）是多少，這個百分比是否與任何營收數字掛鉤？或者，這更多的是一種絕對性的評論，你試圖確定一個具體的美元數字，而這個 18% 可能會根據實際收入情況而更高或更低？

With the planning that we're working on at this point, we believe 18% is -- the number will be -- obviously, that could change if we see a considerably stronger market or a considerably weaker market on it. It's this planning number we have for everybody right now.

根據我們目前正在製定的計劃，我們認為 18% 是——這個數字將會是——顯然，如果我們看到市場明顯走強或明顯走弱，這個數字可能會改變。這是我們目前為所有人制定的計劃編號。

Okay. So maybe asked another way, would that 18% reflect kind of like a low single-digit type top line growth, which if you're thinking maybe the market is flat and composite outperforms a little bit? Is that a reasonable way to think about it?

好的。換句話說，18% 的成長率是否反映出一個位數的營收成長？如果你認為市場可能持平，而綜合表現略好一些，那麼 18% 的成長率是否就意味著營收成長較為平緩？這種思考方式合理嗎？

We'll provide further guidance on revenue during the end-of-the-year call.

我們將在年終電話會議上提供關於營收的進一步指導。

John Lovallo, UBS.

瑞銀集團的約翰·洛瓦洛。

The first one is, any thoughts on your largest competitor gaining some business with Boise Cascade and if this at all changes your strategy with Boise?

第一個問題是，您如何看待您最大的競爭對手從博伊西凱斯卡德公司獲得一些業務，這是否會改變您對博伊西的策略？

No, it does not change our strategy with Boise. I think what you've seen with various distributor announcements just recently here is just normal end-of-the-year-type movements as you see products coming into a location that really hadn't been carrying much, much in the way of ducking. And then in other cases, locations that are moving over to Trex which are moving out of competitive product along the way. So I wouldn't read too much into that.

不，這不會改變我們對博伊西的策略。我認為你最近在這裡看到的各種經銷商公告，只是正常的年末趨勢，你會看到一些產品進入了以前很少進貨的地方，或者說，是躲避市場。而在其他情況下，一些地區正在轉向使用 Trex 產品，並在此過程中逐步淘汰競爭產品。所以我覺得不必對此過度解讀。

Okay. And then I know it's tough to tell in a short period of time, but do you get any sense that you're seeing share shifts among you and your largest competitors keeping the wood side out of the equation just on the composite side?

好的。我知道在短時間內很難判斷，但是，撇開木材部分不談，只考慮複合材料部分，您是否感覺到您和您最大的競爭對手之間的市場份額發生了變化？

Our sales team were very active in the market, so I'm tracking what our contractors are doing, understanding overall market growth of where we are. We're not seeing indications of that at the ground level.

我們的銷售團隊在市場上非常活躍，所以我正在追蹤我們的承包商的動向，以了解我們所在地區的整體市場成長情況。我們從基層層面還沒有看到這方面的跡象。

Trey Grooms, Stephens.

Trey Grooms，Stephens。

So kind of touching again, I know this has been discussed a lot, but the 18% SG&A next year, I think branding costs have historically run about 6% or so of sales, if memory serves me. And -- so is that roughly the way we should be thinking about branding spend as part of the kind of 18% SG&A mix? Or would it be higher here as you ramp?

再次提及此事，我知道這個問題已經被討論過很多次了，但是明年 18% 的銷售、一般及行政費用，如果我沒記錯的話，品牌推廣成本歷來佔銷售額的 6% 左右。那麼——我們是否應該大致這樣看待品牌推廣支出，將其視為銷售、一般及行政費用 (SG&A) 18% 的一部分呢？或者，隨著坡度增加，這裡的溫度會更高嗎？

Absolutely. As we -- this year, you've seen a higher branding spend. Next year, we expect that will be elevated again in a weak market background. We haven't provided a specific percentage on that. We can do that in the next call. But I assume a good portion of that is related to marketing.

絕對地。正如我們今年所看到的，品牌推廣支出增加。我們預計明年在疲軟的市場環境下，這一數字將再次上升。我們沒有提供具體的百分比。我們可以在下次通話中討論這個問題。但我認為其中很大一部分與行銷有關。

Yes. Okay. And then I think it was touched on just a bit here, but any way that we could -- you could maybe help us think about how this increase in branding or this ramp could translate into or maybe drive more demand, how quickly this spend could kind of translate into better dollars -- revenue for you guys?

是的。好的。然後我覺得這裡稍微提到了一下，但是我們能否——您能否幫助我們思考一下，這種品牌推廣或推廣力度的加大如何轉化為或推動更多需求，以及這種支出如何才能迅速轉化為你們更好的收入？

What we have seen is with the increased branding this year, we've seen the purchase indicators increase. We've not seen that turn into the level of sales growth that we're satisfied with. But it definitely shows there's consumer interest in doing decking projects in the marketplace.

我們看到，隨著今年品牌推廣力道的加大，購買指標也有所提升。我們還沒有看到銷售成長達到我們滿意的水平。但這無疑地表明，市場上對露台搭建專案有消費者興趣。

So we do need a little bit of a economic tailwind to start breaking some of these projects free. But backing off on marketing and waiting for those tailwinds to start is not going to be an effective strategy, especially when our competitors are out with very, very heavy marketing spend.

所以我們需要一些經濟上的順風，才能開始啟動這些計畫。但是，削減行銷投入，等待順風到來，並不是一個有效的策略，尤其是在我們的競爭對手投入巨額行銷費用的情況下。

Jeffrey Stevenson, Loop Capital.

Jeffrey Stevenson，Loop Capital。

So Bryan, given the step down that you expect in 2026 CapEx expectation, could that give you some flexibility to increase other capital priorities such as share repurchases, given the higher expected free cash flow generation next year?

布萊恩，鑑於你預計 2026 年資本支出預期會下降，考慮到明年預計自由現金流會更高，這是否能讓你更靈活地增加其他資本優先事項，例如股票回購？

I think you're already seeing the first example of that, where we do expect that we will be in the market depending upon market conditions to buy back $50 million of shares. We have been somewhat muted in being into the marketplace because there has been a lot of capital going into Little Rock. But over the longer term, we will be generating a significant amount of free cash flow.

我認為你已經看到了第一個例子，我們預計我們將根據市場狀況回購價值 5000 萬美元的股票。由於大量資金湧入小石城，我們在市場方面一直比較低調。但從長遠來看，我們將產生大量的自由現金流。

If you look at the years when we generate that cash flow, in a lot of cases, we use it for buybacks. So there'll still be opportunities for that. So this is the first indicator of usage of that higher free cash flow.

如果你回顧我們產生現金流的年份，你會發現很多情況下，我們把這些現金流用於股票回購。所以，這方面還是有機會。所以這是利用較高自由現金流的第一個指標。

Got it. No, that makes sense. And I was wondering if you could give additional color on the recent expanded partnership with Weekes Forest products, which helps further strengthen your relationship with Snavely?

知道了。沒錯，這很有道理。我想請您詳細介紹最近與 Weekes Forest Products 擴大的合作關係，這有助於進一步加強您與 Snavely 的關係？

Can you talk about how this strengthens your Midwest distribution footprint? And could there be additional opportunities to further expand partnerships with key distribution partners after the Boise announcement caught some investors by surprise?

您能談談這如何加強您在美國中西部的經銷網絡嗎？在博伊西的公告讓一些投資者感到意外之後，是否有其他機會進一步擴大與主要分銷合作夥伴的合作關係？

We're really pleased with the relations to furthering of our relationship with Weekes. Minneapolis marketplace is a significant marketplace, and we felt that they'd be a great addition. Beyond that, I'm not going to get into any of the other commercial agreements we may be working on.

我們非常高興能夠進一步加強與 Weekes 的關係。明尼阿波利斯市場是一個重要的市場，我們認為他們的加入將是一個很好的補充。除此之外，我不會透露我們正在洽談的任何其他商業協議。

Trevor Allinson, Wolfe Research.

Trevor Allinson，Wolfe Research。

First question related to your long-term EBITDA margin targets with the increased expectation for SG&A spending. You've called the new level of SG&A spend as being normalized. So should we think of the long-term EBITDA margin target still being around 34%? Or did the prior margin target assume a little less competition in the market and thus, the higher SG&A spend reduces your long-term target from that 34%?

第一個問題與你們的長期 EBITDA 利潤率目標有關，因為預計 SG&A 支出將會增加。您稱新的銷售、一般及行政費用水準已正常化。那麼我們是否應該認為長期 EBITDA 利潤率目標仍在 34% 左右？或者，先前的利潤率目標是否假設市場競爭較小，因此，較高的銷售、一般及行政費用導致您的長期目標從 34% 降低？

That 34% assumed a much stronger underlying repair and remodel marketplace in a mid-single-digit-type level. We haven't seen that in three years. Hopefully, we'll see it next year, but I would say the indicators aren't great. I'd be happy if we start to see growth back in repair and remodel as we get into next year.

34% 的受訪者認為，維修和改造市場的基本面將更加強勁，達到中等個位數水準。我們已經三年沒見過這種情況了。希望明年能看到這種情況，但我覺得目前的跡象並不樂觀。如果明年維修和改造行業能夠開始恢復成長，我會很高興。

So it would be a real challenge to be able to achieve that level by our original target date. But we do need to see that underlying economic strength to be able to get to those kind of numbers.

因此，要在原定目標日期前達到那個水平將是一個真正的挑戰。但我們需要看到潛在的經濟實力，才能達到那樣的數字。

Okay. Makes sense. And then second question on year-end inventory. I think we've been at or somewhat below normalized inventory exiting the year in the last few years. Can you talk about where you're expecting days of inventory in the channel to be, exiting 4Q this year versus more normalized levels?

好的。有道理。然後是關於年末庫存的第二個問題。我認為過去幾年，我們年底的庫存水準一直處於正常水準或略低於正常水準。您能否談談您預計今年第四季末通路庫存天數將達到什麼水平，與正常水平相比如何？

Yeah. We've talked in the past about weak supply. Generally, end of the year tends to be a little bit higher just because you've got lower demand in that six- to eight-week type range, then during the busy part of the season, you're going to be right around that four-week range or so. So we think that, that, that six- to eight-week probably is on the lower end of that part of it.

是的。我們之前討論過供應不足的問題。一般來說，年底的價格往往會略高一些，因為在六到八週的時間內需求較低；而在旺季，價格則會在四周左右的範圍內波動。所以我們認為，六到八週可能是這部分時間的下限。

I'm not all that worried about it from an inventory perspective because it is a slower part of the season. And I expect our distributors as well as dealer partners will take advantage of the Early Buy opportunities that are presented.

從庫存角度來看，我並不太擔心，因為現在是淡季。我希望我們的經銷商和經銷商合作夥伴能夠利用此次提供的提前購買機會。

Anthony Pettinari, Citi.

安東尼佩蒂納裡，花旗銀行。

You mentioned the mix in railing and Arkansas depreciation reducing the gross margin next year by 250 bps. I was just wondering if there's any kind of cadence for that in terms of the year-over-year headwind? Is it pretty weighted pretty evenly over the four quarters of the year because they can potentially kind of dissipate into the end of the year? Or is there any kind of cadence we should keep in mind when we model it out?

您提到鐵路建設和阿肯色州折舊的組合將使明年的毛利率下降 250 個基點。我只是想知道，就每年的逆風而言，是否存在某種規律？是否因為這些影響可能會在年底消散，所以才導致一年中四個季度的權重比較平均？或者說，我們在建模時應該注意某種節奏嗎？

I mentioned the two-thirds, one-third split. The one-third is going to be pretty consistent by quarter. The two-thirds of it will build over the course of the year as we check out all of the lines that depreciation will turn on. So you'll start to see that late in Q1, building in Q2, and then into Q3.

我提到了三分之二和三分之一的分配比例。三分之一的比例在每季都會相當穩定。其中三分之二將在一年內逐步增加，因為我們將檢查所有會因折舊而產生的項目。所以你會在第一季末開始看到這種情況，在第二季逐漸增強，然後延續到第三季。

Okay. Okay. That's helpful. And then I'm just curious, I mean, when you talk to channel partners and contractors, is there any common theme in terms of the consumer -- the end buyer in terms of what maybe has created this sort of extra caution?

好的。好的。那很有幫助。然後我就很好奇，我的意思是，當你和通路夥伴和承包商交談時，在消費者（最終買家）方面，是否存在任何共同的主題，導致他們格外謹慎？

Are there increased concerns around job loss or tariffs or -- obviously, you have a lot of partners and channels, but I'm just curious kind of qualitatively, if there's any theme that kind of came up as you saw this just increased caution from buyers?

是否人們對失業或關稅等問題更加擔憂？ ——顯然，你們有很多合作夥伴和管道，但我只是好奇，從定性角度來看，你們觀察到買家謹慎情緒增加的情況，是否有任何主題浮現出來？

Yeah. I do hear all of those, more from just a general economic perspective of people stepping back, making sure that they have job security. When I talk to our contractors, the biggest thing that we hear back from their perspective, it is a more competitive marketplace. And when they're out, and they have job opportunities.

是的。我確實聽到了所有這些說法，更多的是從一般的經濟角度來看，人們都在退縮，以確保自己的工作有保障。當我與承包商交談時，我們從他們那裡得到的回饋最多的就是，市場競爭更加激烈了。當他們外出工作時，他們就有了就業機會。

Generally speak of that consumer, where a couple of years ago, they might be getting one or two contractors coming in. Now in many cases, they've got four coming in to give them bids. So people are really looking for the best deal that they can get on the projects. And I'm sure not all of them are coming to fruition if they don't get to the numbers they're expecting.

一般來說，我們指的是這樣的消費者：幾年前，他們可能只會接待一、兩個承包商。現在很多情況下，會有四家公司來競標。所以大家都在努力爭取專案上的最佳優惠。如果達不到預期的數字，我確信這些計劃都無法實現。

Phil Ng, Jefferies.

Phil Ng，傑富瑞集團。

Bryan, in the past, you guys would give us an early look on EBITDA margins for next year. If I kind of take your framework you've given us for this year, call it, 28%, 28.5% EBITDA margin, you called out a few headwinds, 80 basis points on mix on the gross margin side, 30 basis -- 300 basis points, give or take, on SG&A.

Bryan，過去你們會提前給我們明年的 EBITDA 利潤率預測。如果我大致按照您今年給出的框架來製定，比如說 28%、28.5% 的 EBITDA 利潤率，您指出了一些不利因素，毛利率方面有 80 個基點的組合影響，銷售、一般及行政費用方面有 30 到 300 個基點左右的影響。

Is that the right way to think of it? Just taking the '25, and those would be the drags? Is there any offset we should be mindful of? I mean, certainly, volume leverage will be impactful, and you're obviously taking some downtime in the fourth quarter to work down inventory. But help us think through what EBITDA margins could look like next year, at least directionally?

這樣想對嗎？只看 '25，那些就是拖曳的輪胎嗎？我們需要注意哪些偏移量？我的意思是，銷售槓桿肯定會產生影響，而且很明顯，你們在第四季會放慢腳步來減少庫存。但請您幫我們大致預測明年的 EBITDA 利潤率會是什麼樣子，至少從趨勢上來說？

Yeah, I'd love to give you some additional detail on that. And you're right. Normally, we would provide some commentary on that during our third-quarter call. Given the difficulty in understanding where the consumer is, what things are going to look like for next year, we're not going to try to do that in this call. We will give definitely more detail as we get into the end of the year call.

是的，我很樂意為您提供更多細節。你說得對。通常情況下，我們會在第三季財報電話會議上對此進行一些評論。鑑於很難了解消費者的現況以及明年的發展趨勢，我們不會在本次電話會議中嘗試探討這些問題。我們將在年終電話會議上提供更多細節。

I mean, I guess let me ask it differently. Do you have any offsets that we should be mindful that on the continuous improvement side that should kick in that you guys are looking to tackle?

我的意思是，那我換個方式問吧。在持續改善方面，你們是否有任何需要注意的抵銷因素，是你們正在努力解決的？

I did mention earlier that we will have continuous improvement activities that will be underway. Those activities will offset other inflation, other costs that are coming into the business. We're calling out this 250 now because we don't have this 250 covered.

我之前提到過，我們將進行持續改善活動。這些活動將抵消其他通貨膨脹因素以及企業面臨的其他成本。我們現在特別指出這 250 號，因為我們還沒有涵蓋這 250 號。

That's helpful. Any early rate in terms of the placement with the channel, whether it's on the Pro wholesale side or retail? I know there's been some consolidation. The distribution side in the West Coast, that might be an opportunity for you guys at one of your bigger retail channel partners.

那很有幫助。有沒有關於通路佈局的早期報價，無論是專業批發通路還是零售通路？我知道最近進行了一些整合。在西海岸的分銷方面，這可能是你們與一家大型零售通路合作夥伴合作的機會。

But just any early look front? And you talked about the competition being more elevated on the market side. Anything on the rebate side which you might fold as well?

但任何早期的正面景像都行嗎？你也提到過市場方面的競爭更加激烈。退款方面還有什麼可以折疊的嗎？

Yeah. There's always going to be commercial discussions underway with all of the larger partners that are out there. We do expect that there will be some additional pressures from an incentive perspective in the marketplace as well, especially with some of the larger providers of sales opportunity.

是的。我們始終會與所有大型合作夥伴進行商業洽談。我們預計，從激勵機制的角度來看，市場也會出現一些額外的壓力，尤其是一些較大的銷售機會提供者。

Kurt Yinger, D.A. Davidson.

Kurt Yinger，D.A. Davidson。

Great. Just one question for me. On the railing side, I believe there were certain retail shelf space adds this year that have been beneficial. How do you think about the ability to sustain this year's momentum into 2026 as you potentially lap that? And is the Pro channel performance pretty comparable as we look between the two?

偉大的。我只有一個問題。就貨架陳列方面而言，我認為今年新增的一些零售貨架空間是有益的。您認為能否將今年的勢頭延續到 2026 年，並有可能超越當年的成績？那麼，兩者的專業頻道表現是否相當呢？

Well, we tend to see with new product launches and shelf-space wins, whether it's in the Pro channel or within retail, that it continues to build over the first couple of years. So we've been very pleased with what we've seen with the new products this year.

我們通常看到，新產品上市和貨架空間的爭奪，無論是在專業通路還是零售通路，都會在最初幾年持續成長。所以，我們對今年推出的新產品非常滿意。

We expect that we will see considerable opportunity as we take advantage of that share -- that space on the shelf, as well as working with contractors to be able to convert them away from competitive products. So we're confident that we've got the right strategy as we drive forward on railing.

我們預計，隨著我們利用這一份額（貨架空間），以及與承包商合作，使他們放棄競爭產品，我們將看到相當大的機會。因此，我們有信心，在推進鐵路建設的過程中，我們已經制定了正確的策略。

Matthew Bouley, Barclays.

馬修·布雷，巴克萊銀行。

On the comments that your competitors are out with heavy marketing spend, I'm wondering if that has had an impact on market share at the dealer or contractor level already? Or is it not yet, but you're seeing the marketing out there and you want to prevent the share shifts?

針對競爭對手投入巨額行銷費用的評論，我想知道這是否已經對經銷商或承包商層面的市場份額產生了影響？或者，雖然現在還沒有到那時，但你已經看到了市場上的行銷活動，並且你想阻止市場份額的變化？

Or perhaps your retail partners are asking for more marketing spend? Just kind of help us understand how that lay of the land is playing out.

或者，您的零售合作夥伴可能要求增加行銷支出？請您幫我們了解目前的狀況。

As I mentioned to an earlier question, we've not seen those share shifts. We do keep a close look at from a ground-level perspective. But we also recognize that it is a very competitive marketplace. We've got aggressive competitors in the market. They're spending a lot on marketing and dialing back, and we're starting to see those consumers come through and see the purchase indicators. Improving with it, we think, would be the wrong way to go.

正如我在之前的問題中提到的，我們還沒有看到這種份額變化。我們會從基層角度進行密切關注。但我們也意​​識到，這是一個競爭非常激烈的市場。我們在市場上面臨著咄咄逼人的競爭對手。他們投入大量資金進行行銷，並逐步減少投入，我們開始看到這些消費者出現購買跡象。我們認為，透過改進它來提升效能是錯誤的做法。

Okay. Understood. And then secondly, I think you said earlier that you're looking for inventory levels to be, I think you said flat year over year to end 2025, and correct me if I'm wrong. But is there a scenario where you would look to take down inventory levels, depending on how the market is shaping up?

好的。明白了。其次，我想您之前說過，您希望庫存水準到 2025 年底能夠與去年持平，如果我錯了請糾正我。但是，是否存在根據市場情勢而考慮降低庫存水準的情況？

We saw a really significant shift in the market from a downward perspective. I don't see indicators of that at this point. But again, I don't see anything that would cause that to be the case right now.

我們看到市場出現了非常顯著的下行趨勢。目前來看，我還沒有看到這方面的跡象。但是，我目前看不到任何會導致這種情況發生的原因。

This concludes our question-and-answer session. I would like to turn the conference back over to Bryan Fairbanks for any closing remarks.

我們的問答環節到此結束。我謹將會議交還給布萊恩·費爾班克斯，請他作總結發言。

Thanks for participating in today's call. We look forward to seeing you at upcoming conferences and meetings. Good evening.

感謝您參加今天的電話會議。我們期待在即將舉行的會議上見到您。晚安.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。