Trex Company, Inc. (TREX) 2026 Q1 法說會逐字稿

Good day, and welcome to the Trex Company, Inc. first quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Lee Coker, Vice President of Corporate Development and Investor Relations. Please go ahead.

大家好，歡迎參加 Trex Company, Inc. 2026 年第一季財報電話會議。(接線員指示) 請注意，本活動將被錄音。現在我想把會議交給企業發展與投資人關係副總裁 Lee Coker。請開始。

Thank you for joining us today, and good morning, everyone. With us on the call are Adam Zambanini, President and Chief Executive Officer; and Prith Gandhi, Senior Vice President and Chief Financial Officer. The company issued a press release earlier this morning containing financial results for the first quarter of 2026. This release is available on the company's website.

感謝各位今天加入我們，大家早安。與會者包括總裁兼執行長 Adam Zambanini，以及資深副總裁兼財務長 Prith Gandhi。公司今天稍早已發布新聞稿，內容包含 2026 年第一季財務結果。該新聞稿可於公司網站查閱。

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

本次電話會議亦同步網路直播，並將於公司網站的投資人關係頁面提供 30 天回放。在開始之前，提醒各位，本通話中關於公司預期未來表現與狀況的陳述，依聯邦證券法之定義，屬於前瞻性陳述。

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 on 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.

這些陳述受到若干風險與不確定性影響，可能導致實際結果與前瞻性陳述所表達者存在重大差異。關於相關風險與不確定性的討論，請參閱我們最新的 Form 10-K 與 Form 10-Q，以及向美國證券交易委員會（SEC）提交的 1933 年法案與其他 1934 年法案申報文件。

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

此外，本次通話將提及非 GAAP 財務衡量指標。這些指標與可比 GAAP 財務衡量指標之調節表，可於 trex.com 的財報新聞稿中查閱。公司明確聲明，無論因新資訊、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陳述之義務。在此開場說明後，我將把電話交給 Adam。

Thank you, Lee, and good morning, everyone. Before turning to the quarter, I want to acknowledge my first earnings call as CEO of Trex. Having been with the company for over 20 years, most recently as COO, I approached this role focused on continuity, execution and accelerating the strategy already in place. Our five-year plan is clear, our priorities are set and our focus remains on disciplined growth, operational excellence, and delivering long-term value for the shareholders.

謝謝你，Lee，各位早安。在談到本季之前，我想先提到這是我擔任 Trex 執行長後的第一次財報電話會議。我在公司服務超過 20 年，最近的職務是營運長（COO）；接任此職務時，我的重點放在延續性、落實執行，以及加速既有策略的推進。我們的五年計畫很清楚，優先事項已確立，並將持續聚焦於有紀律的成長、卓越營運，以及為股東創造長期價值。

As part of that work, our leadership team has sharpened focus. Trex vision, mission and values to ensure that we remain aligned as we scale. This evolution, not a reset, and it reflects both where Trex's today and where we are going. Trex's vision is to shape the future of outdoor living through purposeful innovation that enriches people's lives.

作為這項工作的一部分，我們的領導團隊已進一步聚焦。我們也釐清並強化 Trex 的願景、使命與價值觀，以確保在擴張規模的同時仍保持一致。這是一種演進，而非重置，反映了 Trex 今日的定位以及我們前進的方向。Trex 的願景是透過有目的的創新塑造戶外生活的未來，豐富人們的生活。

To support our ambitious growth and galvanize the organization, we recently codified five long-term strategic priorities. These priorities are designed to sharpen our focus and better leverage our strengths across marketing, innovation and execution. Given their importance to our future both profitability and long-term shareholder value creation, I'd like to touch on each priority in detail.

為了支持我們雄心勃勃的成長並凝聚組織力量，我們近期正式確立了五項長期策略優先事項。這些優先事項旨在讓我們更聚焦，並在行銷、創新與執行面更有效發揮優勢。鑑於其對我們未來獲利能力與長期股東價值創造的重要性，我想逐一更詳細說明每項優先事項。

Our five long-term strategic priorities are as follows, first, it is to create an unbreakable bond with our end users, meaning the homeowner and pro contractors. Our goal is to deepen the Trex brand preference and loyalty through superior marketing, product experience and service. While Trex remains the undisputed brand leader in the wood alternative market, we are committed to further strengthening that position through our continued investment.

我們的五項長期策略優先事項如下：第一，是與終端使用者建立牢不可破的連結，也就是屋主與專業承包商。我們的目標是透過更卓越的行銷、產品體驗與服務，深化對 Trex 品牌的偏好與忠誠度。雖然 Trex 仍是木材替代市場無可爭議的品牌領導者，我們也承諾透過持續投資進一步鞏固這一地位。

We have already increased our investment in the branding and the marketing, highlighted by the launch of the next phase of our consumer and pro focused campaign centered around performance engineered for your life outdoors brand platform. This multichannel media campaign will sharpen the focus on wood to composite conversion, while also emphasizing many of our key differentiators of Trex products including our technical innovations like Sun comfortable heat mitigating technology as well as our marine and fire-rated solutions.

我們已提高在品牌與行銷方面的投資，重點包括推出下一階段、同時面向消費者與專業人士的行銷活動，並以「為你的戶外生活而打造的工程級性能」品牌平台為核心。這項多渠道媒體活動將更聚焦於推動從木材到複合材料的轉換，同時強調 Trex 產品的多項關鍵差異化優勢，包括我們的技術創新，例如 SunComfortable 降溫隔熱技術，以及我們的海事與防火等級解決方案。

I'm excited about the momentum that this campaign has produced and expect Trex to become increasingly visible with both the homeowner and Pro contractors moving forward. Meanwhile, we are investing in technology to improve our proactive lead generation among our programs to better support our valued Pro contractors.

我對這項活動所帶來的動能感到振奮，並預期未來 Trex 在屋主與專業承包商族群中的能見度將持續提升。同時，我們也投資科技，以提升更具前瞻性的潛在客戶開發能力，並透過各項計畫更好地支持我們重視的專業承包商。

This last quarter, we experienced significant double-digit increase in lead generation. Pointing to the early success of this investment, we are confident that these actions will help drive Trex's future growth. Next is our continued focus on high-performance innovation. As I mentioned on the last quarter's call, driving high-performance innovation remains a central pillar of my leadership mandate.

在上一季，我們的潛在客戶開發量出現顯著的雙位數成長。這顯示該投資已初見成效，我們有信心這些行動將有助於推動 Trex 未來的成長。第二項是我們持續聚焦於高性能創新。如我在上一季電話會議中提到的，推動高性能創新仍是我領導使命的核心支柱。

Shortly after joining the company, I led the development of the launch of the game-changing technology that redefine the standards in the decking category. Trex Transcend decking. Transcend was the first cap composite decking product that set a new standard of performance and aesthetics while serving as a catalyst to drive market share expansion over the following decade.

我加入公司不久後，便主導開發並推出一項改變遊戲規則的技術，重新定義露台板（decking）品類的標準：Trex Transcend 露台板。Transcend 是第一款包覆式複合材料露台板產品，樹立了性能與美學的新標竿，並在接下來十年間成為推動市占擴張的催化劑。Transcend 是第一款包覆式複合材料露台板產品，樹立了性能與美學的新標準，同時也成為推動後續十年市占擴張的催化劑。

At its heart, Trex is the world leader in material science. We intend to sharpen our focus and leverage our tremendous development capabilities to invent and deliver a continuous stream of next-generation outdoor living solutions designed with what we believe is called separator technology. Trex makes the hardest innovation in the building products category imaginable.

Trex 的核心是全球材料科學領導者。我們將進一步聚焦，並運用我們卓越的研發能力，發明並提供源源不絕的下一代戶外生活解決方案；這些解決方案以我們所稱的「分隔者技術」（separator technology）為設計理念。Trex 正在打造建材產品領域中最具挑戰性的創新。

Our goal is to move forward, simply competing with our industry by introducing products with highly differentiated performance that effectively place us in a category of one. Building on the legacy of Transcend, our current pipeline focuses on category defining performance. We are currently on track for a potential game-changing regional launch in 2027, followed by a more impactful national launch in 2028 through 2030.

我們的目標是向前邁進，不再只是與同業競爭，而是透過推出高度差異化性能的產品，讓我們有效地成為「獨一無二的品類」。延續 Transcend 的傳承，我們目前的產品管線聚焦於定義品類的性能表現。我們目前進度符合規劃，預計於 2027 年進行可能改變遊戲規則的區域性上市，並於 2028 至 2030 年推出更具影響力的全國性上市。

We are excited about our best-in-class products in our innovation pipeline and look forward to sharing more in the future. Our third priority is to optimize the channels for growth. Distribution remains a key component of the Trex business model, ensuring that our products are readily available with the Pro contractors and homeowners.

我們對創新管線中同級最佳的產品感到振奮，並期待未來分享更多資訊。第三項優先事項是優化成長通路。通路分銷仍是 Trex 商業模式的關鍵組成，確保我們的產品能方便地提供給專業承包商與屋主。

As a reminder, Trex already has the most comprehensive distribution network with not only national coverage by two-step distributors, but also one of the very few brands in the world that has a meaningful presence at both national home centers. The distribution channel has seen many changes over the last five years with significant consolidation with both distributors and dealers in the two-step channel.

提醒各位，Trex 已擁有最完整的分銷網絡，不僅透過兩級分銷商（two-step distributors）實現全國覆蓋，同時也是全球少數在兩大全國性家居賣場（national home centers）皆具備顯著能見度的品牌之一。過去五年，分銷通路出現許多變化，兩級通路中的分銷商與經銷商皆發生顯著整併。

We have seen rapid expansion of the home center retailers into the Pro channel segment as we move beyond a purely on-shelf DIY focus. We expect the distribution landscape to continue evolving. Our goal remains clear: to maintain strong channel relationships at both the two-step channel and the home center retailers, so that our products reach both the homeowner and the Pro contractors across geographies.

我們也看到家居賣場零售商快速擴張至專業通路（Pro channel）區隔，不再僅聚焦於貨架上的 DIY 需求。我們預期分銷版圖將持續演變。我們的目標依然明確：在兩級通路與家居賣場零售商兩端都維持強健的通路關係，讓我們的產品能跨地區觸及屋主與專業承包商。

Our recent additional shelf space wins at the home center, along with expanded territories with two-key distributors are proof that Trex's strong distribution network and demand for our comprehensive portfolio of products. And our recently redefined incentive and marketing programs have been well received by our two-step partners as we convert business away from the competition, further strengthening these valued relationships.

我們近期在家居賣場新增的貨架空間勝出，以及與兩大分銷商擴大覆蓋區域，證明 Trex 強大的分銷網絡，以及市場對我們完整產品組合的需求。此外，我們近期重新定義的獎勵與行銷方案也獲得兩級通路合作夥伴的良好回饋；在我們將業務從競爭對手手中轉換過來的同時，也進一步強化了這些珍貴的合作關係。

Our fourth priority is more of a specific target, namely lowering the cost of railing. Railing represents a material and rapidly growing part of our revenue mix. And with a large target of doubling our railing business in five years, its importance will only increase. Due to greater manufacturing complexity and a broader range of raw material components the railing portfolio currently operates a lower margin than decking, presenting opportunities for operational and cost optimization.

第四項優先事項更偏向一個具體目標，也就是降低欄杆（railing）的成本。欄杆在我們的營收組合中占比重要，且成長迅速。在我們設定五年內將欄杆業務倍增的重大目標下，其重要性只會持續提升。由於製造複雜度較高且原物料組件範圍更廣，欄杆產品組合目前的毛利率低於露台板（decking），因此在營運與成本優化方面存在機會。

We see a clear path to improvement. We are applying the same continuous improvement initiatives and vertical integration strategies that successfully elevated our decking margins to our rapidly growing railing portfolio. And of course, as the product line continues to grow, we expect a natural margin expansion due to the economies of scale and greater utilization.

我們看到一條清晰的改善路徑。我們正將同樣的持續改善措施與垂直整合策略，從成功提升我們露臺板材毛利率的經驗，應用到我們快速成長的欄杆產品組合上。當然，隨著產品線持續擴大，我們預期在規模經濟與更高產能利用率的帶動下，毛利率將自然擴張。

Over time, we believe railing margins can approach those of the core decking products. contributing to an overall lift in the corporate margin. Our fifth and final priority, growth enablement, underpins all the others. This priority defines our approach in investing in our culture, technology and talent to enable long-term profitable growth.

隨著時間推進，我們相信欄杆毛利率可望接近核心露臺板材產品的水準，進而帶動公司整體毛利率提升。我們的第五項也是最後一項優先事項——成長賦能——為其他所有事項提供支撐。此優先事項界定了我們在文化、科技與人才上的投資方式，以實現長期且具獲利性的成長。

We are strengthening our organization by building capabilities in the digital and commercial excellence and fostering an innovation-driven culture that empowers teams to move with speed and discipline. We have already enhanced our leadership team particularly in finance, adding significant capabilities in data analytics and forecasting creating a new internal pricing group to implement a more nuanced portfolio level pricing strategy that balances share in margin while improving responsiveness.

我們正透過建立數位能力與商業卓越能力來強化組織，並培育以創新驅動的文化，使團隊能以速度與紀律推進。我們已強化領導團隊，特別是在財務領域，新增了資料分析與預測方面的重要能力，並成立新的內部定價團隊，以推動更細緻的產品組合層級定價策略，在提升反應速度的同時，兼顧市占與毛利。

Over the remainder of the year, I plan to add key senior roles, including a newly created Chief Commercial Officer who will integrate sales, marketing and IT, which will enable technology, data and analytics and customer insights by providing sales and marketing the tools for commercial visibility that create revenue generation.

在今年剩餘時間，我計畫增設關鍵高階職位，包括新設的首席商務長（Chief Commercial Officer），其將整合銷售、行銷與資訊科技，透過提供技術、資料與分析以及客戶洞察，為銷售與行銷提供商業可視性工具，以創造營收成長。

Finally, we are aligning innovation and advanced manufacturing under a newly appointed Chief Operations Officer, Zach Lauer, to enable better coordination on commercializing initiatives in parallel. Our digital transformation is directly linking consumer inspiration to contractor execution, providing our TrexPro network with highly qualified leads and accelerate the wood composite conversion cycle while optimizing our pricing analytics.

最後，我們將創新與先進製造整合至新任首席營運長 Zach Lauer 的職責之下，以便更好地協調並行推動各項商業化計畫。我們的數位轉型正直接連結消費者的靈感啟發與承包商的落地執行，為我們的 TrexPro 網絡提供高品質商機線索，加速木材向複合材料的轉換週期，同時優化我們的定價分析。

As you can see, we are not waiting for repair, remodel demand to recover. Instead, we are taking a proactive disciplined action to accelerate growth strengthen margins and position Trex for sustained outperformance. We are confident that these strategic priorities provide a clear road map for Trex's long-term success. Our team is laser-focused on execution and I look forward to updating you on the tangible progress we are making in these priorities.

如各位所見，我們並未等待維修、翻新需求回升。相反地，我們正以主動且有紀律的行動來加速成長、強化毛利率，並讓 Trex 具備持續優於同業的定位。我們有信心，這些策略性優先事項為 Trex 的長期成功提供了清晰的路線圖。我們的團隊高度聚焦於執行，我也期待向各位更新我們在這些優先事項上所取得的具體進展。

Turning to the quarter. We started the year with solid results, especially in light of the adverse weather conditions and continued uncertain economic environment leading many consumers to defer large-scale discretionary repair and modeling projects.

接著談本季表現。我們以穩健的成果開啟今年，尤其考量到不利的天候條件與持續不確定的經濟環境，導致許多消費者延後大型、非必需性的維修與翻新工程。

However, we are actively taking advantage of the current market environment to aggressively invest, ensuring that we capture disproportionate share when the demand normalizes. The trends underpinning our industry's long-term growth runway, the ongoing conversion from wood to composite materials, demand for the low maintenance outdoor living and significant long-term repair remodel tailwinds have not changed. With that context, I'll turn it over to Prith, who will walk you through the quarter in greater detail.

然而，我們正積極把握當前市場環境進行更具進攻性的投資，確保在需求回歸常態時能取得不成比例的市占。支撐本產業長期成長動能的趨勢——木材向複合材料的持續轉換、對低維護戶外生活的需求，以及長期維修翻新的強勁順風——並未改變。在此背景下，我把時間交給 Prith，他將更詳細地帶各位回顧本季表現。

Thank you, Adam, and good morning, everyone. Unless otherwise noted, all comparisons are on a year-over-year basis. As Adam mentioned, we had a solid start to the year with net sales of $343 million, an increase of 1%. First quarter volume is driven by both consumer sales and channel stocking to support the second and third quarter peak buying season.

謝謝你，Adam，各位早安。除非另有說明，所有比較皆為年對年。如 Adam 所提，我們今年開局穩健，淨銷售額為 3.43 億美元，成長 1%。第一季銷量同時受到消費者銷售與通路備貨的帶動，以支援第二季與第三季的旺季採購季。

With our level load production strategy implemented in 2025, we elected to reduce channel inventories for the early part of 2026 and rely on our own inventory to support peak channel requirements later in the year resulting in lower first quarter volume. From a channel perspective, we saw strong home center driven do-it-yourself demand early in the quarter. which shifted over the course of the quarter towards greater strength in higher-end pro contact-driven products.

隨著我們在 2025 年導入平準化生產（level load production）策略，我們選擇在 2026 年初降低通路庫存，並改以自有庫存支援年內稍後的通路旺季需求，因此第一季銷量較低。從通路角度來看，本季初期我們看到由家居賣場帶動的 DIY 需求強勁，但隨著季度推進，需求轉向更高端、由專業承包商客戶帶動的產品表現更為強勢。

Gross profit was $139 million with gross margin of 40.5% and about 100 basis points better than we expected. A favorable mix of higher-margin premium decking products and lower sales of railing and margin improvements from continued operational excellence helped to offset an increase in depreciation expenses related to decking lines coming into production readiness at our Arkansas facility. Importantly, we did not experience any noticeable cost pressures related to the increase in oil prices related to the conflict in the Middle East.

毛利為 1.39 億美元，毛利率 40.5%，較我們預期高出約 100 個基點。較高毛利的高端露臺板材產品組合占比提升、欄杆銷售較低，以及持續營運卓越帶來的毛利改善，抵銷了阿肯色州廠露臺產線進入投產準備階段所帶來的折舊費用增加。重要的是，我們未感受到任何與中東衝突導致油價上漲相關的明顯成本壓力。

I'd like to spend a few minutes diving a bit deeper to our raw material exposure as it is the majority of our COGS, especially recycled LDPE. While LDPE is a petrochemical, its pricing dynamic is quite the strength from virgin polyethylene, which is high directly to the price of oil.

我想花幾分鐘更深入說明我們的原物料曝險，因其占我們銷貨成本（COGS）的大宗，尤其是回收 LDPE。雖然 LDPE 屬於石化產品，但其定價動態與原生聚乙烯相當不同；原生聚乙烯的價格與油價高度連動。

Historically, recycled LDPE prices tend to lag virgin polyethylene by several quarters and generally exhibit less volatility. This reflects a substitution dynamic users of origin polyethylene typically need to see sustained higher prices before adjusting their production processes to incorporate even modest levels of recycled content, which in turn increases demand and prices for recycled LDPE.

歷史上，回收 LDPE 價格通常會落後原生聚乙烯數個季度，且一般波動性較低。這反映了替代效應：原生聚乙烯的使用者通常需要看到價格在較長時間內維持在較高水準，才會調整其生產流程以納入即使是少量的回收成分，進而推升對回收 LDPE 的需求與價格。

And supply of this material is not an issue as we are entirely domestically sourced. As a leader in the use of recycled content, this is a significant competitive advantage, particularly during periods of raw material inflation and competitors relying on virgin inputs are more exposed to cost volatility.

而且此材料的供應不是問題，因為我們完全採用美國國內來源。作為回收成分使用的領導者，這是一項重要的競爭優勢，特別是在原物料通膨期間；依賴原生投入的競爭對手更容易暴露於成本波動。

And while we are seeing increases in certain other input costs such as diesel fuel and aluminum, we have a range of mitigating levers available, including cost-out initiatives, operational efficiencies and product-specific pricing actions. Importantly, the same inflationary pressures also affect our competitors.

此外，儘管我們確實看到其他部分投入成本上升，例如柴油與鋁材，但我們有多種可用的緩解手段，包括降本計畫、營運效率提升，以及針對特定產品的定價措施。重要的是，同樣的通膨壓力也會影響我們的競爭對手。

Moving on to selling, general and administrative expenses, which were $56 million in Q1, representing 16.2% of net sales. Excluding digital transformation costs of $1 million and Arkansas facility start-up expenses of $0.2 million, SG&A was $54 million. SG&A came in below our expectations despite continued investments in branding and marketing programs to drive future growth.

接著談銷售、一般及行政費用（SG&A），第一季為 5,600 萬美元，占淨銷售額 16.2%。扣除 100 萬美元的數位轉型成本與 20 萬美元的阿肯色州廠啟動費用後，SG&A 為 5,400 萬美元。儘管我們持續投資品牌與行銷計畫以推動未來成長，SG&A 仍低於我們的預期。

Lower self-insured medical costs and the timing of expenses more than offset higher investments in the quarter. Because we are in the final stages of the Arkansas facility build-out and did not finish as expected in Q1, interest expenses were capitalized on the balance sheet, resulting in no P&L impact. Our full year guidance for interest expense now reflects completion beginning in Q2.

較低的自保醫療成本以及費用認列時點的差異，足以抵銷本季較高的投資。由於我們正處於阿肯色州廠建置的最後階段，且第一季未如預期完工，利息費用已在資產負債表中資本化，因此對損益表（P&L）沒有影響。我們對全年利息費用的指引，現已反映自第二季起完工。

Putting it all together, adjusted EBITDA of $103 million grew 2% in the quarter due to positive pricing and mix, cost control and the timing of expenses. Free cash flow was negative $143 million as we built inventory and accounts receivable ahead of our peak selling season. This was an almost 40% improvement versus prior year, as our capital investment needs declined significantly now that we're finishing the Arkansas facility.

綜合以上因素，本季調整後 EBITDA 為 1.03 億美元，年增 2%，主要受惠於正向的定價與產品組合、成本控管以及費用認列時點。自由現金流為負 1.43 億美元，原因是我們在旺季銷售季前增加了庫存與應收帳款。相較去年，這已改善近 40%，因為隨著阿肯色州廠接近完工，我們的資本投資需求大幅下降。

Our balance sheet remains strong with our net debt leverage of 1 times EBITDA, which is at the low end of our target range of 1 times to 2 times. We are confident in our long-term free cash flow generation and continue to have balance sheet capacity to pursue our capital allocation agenda, which prioritizes an unwavering commitment to first, drive growth, then return cash to shareholders through share repurchases, and lastly, to pursue disciplined M&A.

我們的資產負債表仍然強健，淨負債槓桿為 EBITDA 的 1 倍，位於我們 1 倍至 2 倍目標區間的低端。我們對長期自由現金流的創造能力充滿信心，且資產負債表仍有能力推進我們的資本配置議程；該議程優先順序為：第一，推動成長；第二，透過庫藏股回購將現金回饋股東；最後，進行有紀律的併購（M&A）。

During the quarter, the company took advantage of an opportunity in the stock price by executing continued aggressive share repurchases. For the first time in the company's history, we implemented an accelerated share repurchase, or ASR, to quickly buy back a large amount of stock. This $100 million ASR was part of our larger $150 million share repurchase announcement.

本季，公司把握股價出現機會，持續積極執行庫藏股回購。公司史上首次，我們導入加速股份回購（ASR），以快速回購大量股票。這項 1 億美元的 ASR 是我們更大規模 1.5 億美元庫藏股回購公告的一部分。

We will be completing the full $150 million repurchase during the second quarter, and I'm pleased to announce the Board has authorized a $10 million share increase to the company's existing share repurchase program, reflecting their confidence in long-term intrinsic value of tax.

我們將在第二季完成總額1.5億美元的全額回購，我也很高興宣布董事會已核准在公司既有的股票回購計畫中額外增加1,000萬美元的回購額度，反映其對稅務長期內在價值的信心。

Turning to outlook. We are maintaining our full year guidance based on our solid start to the year and our continued expectation for the broader repair and remodel market to be flat to down this year. We remain minimally exposed to input cost inflation.

接著談展望。基於我們今年良好的開局，以及我們持續預期更廣泛的維修與翻新市場今年將持平至下滑，我們維持全年財測指引不變。我們受到投入成本通膨的影響仍然很小。

Our vertically integrated domestic recycling for softer and approximately 95% recycled content drive a highly stable cost profile, which helps protect margins during periods of petrochemical volatility. We continue to expect fiscal year net sales of $1.185 billion to $1.23 billion, adjusted gross margin of approximately 37.5% and adjusted EBITDA of $315 million to $340 million. For the second quarter, we expect net sales in the range of $388 million to $403 million, and we expect to see a reversal of the gross margin benefit from product mix that we saw in Q1.

我們在美國本土垂直整合的回收體系（針對較軟的材料）以及約95%的再生含量，帶來高度穩定的成本結構，有助於在石化價格波動期間保護毛利率。我們仍預期本財年淨銷售額為11.85億至12.30億美元，調整後毛利率約37.5%，調整後EBITDA為3.15億至3.40億美元。第二季方面，我們預期淨銷售額介於3.88億至4.03億美元，且預期將出現第一季因產品組合帶來的毛利率利多之反轉。

Before turning the call back to Adam, I want to touch on two key metrics. The first is sell-in sell-out. Sell-in represents Trex's sales to its distributors and home centers. Sell-out represents the sales from our distributors and home centers to dealers and consumers. As we've discussed in the past, quarterly sell-in and sellout results can be influenced by timing, seasonality and channel dynamics and as a result, always reflect the underlying long-term trends in the business.

在把電話交回給Adam之前，我想談兩個關鍵指標。第一個是sell-in與sell-out。Sell-in代表Trex對經銷商與家居賣場（home centers）的銷售。Sell-out代表我們的經銷商與家居賣場對經銷商下游（dealers）與消費者的銷售。如同我們過去所討論，單季的sell-in與sell-out結果可能受到時點、季節性與通路動態影響，因此不一定能完全反映業務的長期基本趨勢。

To provide a clearer view of performance and how we manage the business, we are introducing a rolling 12-month sell-in and sell-out metric, which we will report each quarter going forward. This metric smooth short-term volatility and better captures fundamental demand trends by accounting for seasonality and other factors that are not fully reflected in quarterly movements.

為了更清楚呈現績效以及我們如何管理業務，我們將導入「滾動12個月」的sell-in與sell-out指標，並將自今後起每季揭露。此指標可平滑短期波動，並透過納入季節性與其他未能在單季變動中充分反映的因素，更好地捕捉基本需求趨勢。

For Q1, growth for our trailing 12-month selling was 7% and growth for us trailing common sell-out was 6%. The second metric is one which we believe will experience meaningful improvement not only this year but for many years to come. Free cash flow. As many of you are aware, we plan on ramping up production at our new Arkansas facility beginning next year. But more importantly, the CapEx associated with the plant build-out will end this year that the majority of our console-related spend finishing in the first half.

第一季，我們過去12個月（trailing 12-month）的sell-in成長為7%，而過去12個月的sell-out成長為6%。第二個指標是我們認為不僅今年、而且未來多年都將顯著改善的項目。自由現金流。如各位所知，我們計畫自明年起在新的阿肯色州廠區逐步提升產能。但更重要的是，與該廠建置相關的資本支出將於今年結束，其中大部分與主控台相關的支出將在上半年完成。

We anticipate total CapEx this year of $100 million to $120 million, down from $224 million in 2025, a more than $100 million improvement. And with construction substantially completed at the end of this year, we expect another meaningful decline in CapEx in 2027 to maintenance levels of approximately 5% to 6% of revenue, driving further improvements in free cash flow. We have built Arkansas to effectively more than double our revenue potential with just the purchase of additional lines.

我們預期今年資本支出（CapEx）總額為1.00億至1.20億美元，較2025年的2.24億美元下降，改善超過1億美元。且隨著工程建設在今年底大致完工，我們預期2027年的資本支出將再顯著下降至維護性水準，約為營收的5%至6%，進一步推動自由現金流改善。我們打造阿肯色州廠區，使我們只需再購置額外產線，就能有效將營收潛力提高到超過兩倍。

So this upfront investment will provide us with euros of capacity expansion ability with minimal additional CapEx. This gives us a strong line of sight to continuous, robust free cash flow generation regardless of the exact timing of a significant rebound in consumer demand. With our organic expansion needs met through our Arkansas campus, our capital allocation priorities will make focus on additional share repurchases and then on accretive bolt-on acquisitions.

因此，這項前期投資將使我們具備大幅的產能擴張能力，而額外所需的資本支出極少。這讓我們能清楚看見：不論消費需求顯著反彈的確切時點為何，我們都能持續、強勁地創造自由現金流。隨著我們在阿肯色州園區已滿足有機擴張需求，我們的資本配置優先順序將聚焦於進一步的股票回購，其次是具增益性的補強型併購（bolt-on acquisitions）。

Checks will return to the free cash flow generating machine that it had been before the recent necessary investment in capacity expansion, which started during COVID and will end this year. I will now turn the call back to Adam for his closing remarks.

Trex將回到先前那種「自由現金流產生機器」的狀態；先前為了必要的產能擴張投資（自COVID期間開始）而有所偏離，而該投資將於今年結束。接下來我把電話交回給Adam做結語。

Thank you, Prith. Hopefully, you can feel the excitement of the Trex team path that we've laid out and the great opportunities we see in front of us. While the current market environment remains challenging, we are investing in our business and aggressively innovating to capture a greater share of the growing addressable market.

謝謝你，Prith。希望各位能感受到Trex團隊對我們所規劃路徑的興奮，以及我們眼前所見的巨大機會。雖然目前的市場環境仍具挑戰，我們正投資於業務並積極創新，以在持續成長的可服務市場中取得更高市占。

We remain the undeniable leader in our market, and we are infusing our team with more focused, nimble entrepreneurial culture that we had in the early days of my career at Trex. We are confident this is the right time to evolve our approach while leveraging our great history and brand. Before we close, I want to recognize our people. Their commitment, discipline and focus on the customer continue to be the foundation of our performance.

我們仍是市場上無可爭議的領導者，同時我們正為團隊注入更聚焦、更敏捷的創業文化，就像我職涯早期在Trex時那樣。我們有信心，現在正是演進我們做法的正確時機，同時也能善用我們優秀的歷史與品牌。在結束前，我想表揚我們的同仁。他們的承諾、紀律與以客戶為中心的專注，持續是我們績效的基石。

The progress we discuss today is a direct result of their work and they remain committed to our long-term success. We believe when our people succeed, our shareholders succeed. Operator, we'd like to open the call to questions.

我們今天所談到的進展，直接來自他們的努力，而他們也仍致力於我們的長期成功。我們相信，當我們的同仁成功時，我們的股東也會成功。接線生，我們想開放提問。

(Operator Instructions)

(接線生指示)

Phil Ng, Jefferies.

Phil Ng，Jefferies。

Congrats on a really strong quarter, really good execution. And Adam, congrats on the new role and certainly, it was very noticeable in terms of the energy you've laid out in terms of your longer-term strategic plans going forward. Kind of give us a little perspective in terms of some of the things that you're looking to impact, right? We've noticed that there's been new leadership changes.

恭喜本季表現非常強勁、執行得非常好。Adam，也恭喜你擔任新職務，而且很明顯可以感受到你在未來較長期策略規劃上所展現的能量。能否請你從一些你希望帶來影響的面向，給我們一點觀點？我們注意到近期似乎有一些新的領導層變動。

You called out the new COO role and certainly a new Head of Marketing there appears to be a bigger focus certainly on innovation and streamlining some of these efforts to kind of put out product quicker. Just kind of help us think through how are you guys approaching things perhaps a little differently and how that potentially unlock things in terms of the growth engine and getting products to the market a little quicker?

你提到新增COO職位，且看起來也有新的行銷主管；顯然公司更聚焦在創新，以及精簡部分工作以更快推出產品。能否請你協助我們理解：你們在做法上可能有哪些不同，以及這如何在成長引擎上解鎖潛力、並讓產品更快推向市場？

Phil, thank you for the kind words. We really appreciate it. When I look at the marketplace today, it's a very dynamic and challenging market. You start to look at the consolidation of national accounts and inflation, and you have to ask the things -- do we have the right strategy in place, which I believe we do, and we laid it out on the call, do we have the right people?

Phil，謝謝你的好話。我們非常感謝。當我看今天的市場，它是一個非常動態且具挑戰的市場。當你看到全國性客戶的整併以及通膨，你就必須問自己幾件事——我們是否有正確的策略？我相信我們有，而且我們也在電話會議中說明了；我們是否有對的人？

Absolutely. Do we have the right structure. And that is really what I'm focusing on, making sure that we have the right structure to execute the strategy. Now on top of that, once we have that structure in place, it is how we innovate. And I think that is where I add the most value to Trex as I talk about the separator technology, what is going to make Trex category of one.

絕對有。我們是否有正確的組織架構？這正是我真正聚焦的重點：確保我們具備能執行策略的正確架構。在此之上，一旦架構到位，接下來就是我們如何創新。我認為這也是我能為Trex帶來最大價值之處——例如我談到的分離器技術（separator technology），它將使Trex成為「獨一無二的品類」（category of one）。

And so that focus right now is to take what Trex used to have is, let's just say, 100 initiatives, and we've boiled that down to 20 underneath five imperatives. So we're working on less things that are more impactful to the organization. I want $100 million programs on everything that we work on. So that is what our focus has been as an executive team, and I think that has provided the organization with a tremendous amount of clarity moving forward.

因此，我們目前的重點是把Trex過去可能有的、比方說100個倡議，精簡到5大要務（imperatives）之下的20個。也就是說，我們在做更少、但對組織影響更大的事情。我希望我們所做的每一件事，都是1億美元等級的專案。這就是我們管理團隊的聚焦方向，我認為這也為組織未來前進提供了極大的清晰度。

Super. An uncertain eco backdrop, curious how sell-out trends shaped up in your quarter in pretty appreciate the LTM number. But just any more color in terms of how that progressed inter-quarter and perhaps how things are looking, peak decking season, April, May, how the channel has responded in some of these programs that you've rolled out in the marketing effort as well?

很好。在不確定的總體經濟背景下，我想了解你們本季的sell-out趨勢如何演變，也很感謝你們提供LTM數字。但能否再多分享一些細節：例如季內的變化情況，以及在鋪板旺季（4月、5月）目前的狀況如何？通路對你們推出的部分方案、以及行銷投入的反應如何？

Okay. So a lot to unpack there. Look, overall, in terms of the quarter itself, as we said in my remarks, we managed to sell into the channel based on our level loading strategy. And essentially, overall demand is progressing as we expected in our overall assumptions for the year. And so we expect as we go through the busy season.

好的。所以這裡有很多需要拆解說明的地方。你看，整體而言，就這一季本身來說，正如我在發言中提到的，我們依據我們的均衡出貨（level loading）策略，成功把產品賣進通路。而且基本上，整體需求的走勢符合我們對全年整體假設的預期。因此，我們預期隨著我們進入旺季。

The channel is kind of in the lighter end in terms of the inventory they're carrying. So they're more closer to the 30 to 40 days of inventory. And so we expect, assuming kind of normal busy season that we will see more imports for more sell-in as we progress through the second and third quarter.

通路端在庫存水位上算是偏輕。所以他們的庫存天數更接近 30 到 40 天。因此我們預期，在假設旺季表現大致正常的情況下，隨著我們進入第二與第三季，為了增加進貨（sell-in），進口量會增加。

Okay. That's helpful. And then the less inventory on the channel side for it, that is a function of your decision to take out the volatility. And then perhaps any early read in terms of how the channel is kind of progressing how things are shaping up, just very dynamic macro environment and uncertainty on consumer side?

好的。這很有幫助。那麼通路端庫存較少，這是你們決定降低波動所帶來的結果。另外，在目前非常動態的總體環境、以及消費者端不確定性之下，你們是否有任何早期觀察，關於通路端的進展、以及整體情勢的走向？

Yes. Just to give you some high level as we look to Q1, January and February were fairly challenging. I think most people came out of those two months, wondering how this year was going to pan out, but we saw a nice rebound in March as we moved into April. So everybody is still projecting to flat to slightly down in the market, but we're expecting to outperform.

是的。先給你一些高層次的概況：我們看第一季時，1 月與 2 月相當具挑戰。我想多數人在那兩個月結束後，都在想今年會怎麼發展，但我們在 3 月看到不錯的反彈，並延續到 4 月。所以大家仍然預估市場會持平到小幅下滑，但我們預期會跑贏市場。

The one trend that we've seen over the last year or two is more and more national accounts have acquired independent lumber yards they're carrying less inventory. So in many cases, they would carry 90 or even upwards to 120 days of inventory. And now we see some of them carrying around 30 days of inventory. So what that means is probably less trucks as we go through Q1.

我們在過去一兩年看到的一個趨勢是：越來越多全國型客戶（national accounts）收購了獨立木材場（independent lumber yards），因此他們持有的庫存更少。所以在很多情況下，他們過去會持有 90 天、甚至高達 120 天的庫存。而現在我們看到其中一些只持有大約 30 天的庫存。所以這代表第一季可能會有較少的卡車出貨。

But when the in-season demand hits like in Q2, that's where you got to make sure you have the inventory on the ground to make sure you can execute because there's going to be some quick pull-through from that perspective.

但當旺季需求出現、像第二季那樣時，你就必須確保地面端有足夠庫存以確保能執行到位，因為從這個角度來看，需求拉動會很快。

Ryan Merkel, William Blair.

Ryan Merkel，William Blair。

First topic is gross margin. You beat your internal expectation pretty nicely. Can you just unpack what happened and it sounds like mix might have been favorable?

第一個主題是毛利率。你們相當明顯地超出內部預期。你能否拆解一下發生了什麼事？聽起來產品組合（mix）可能比較有利？

Yes. So Ryan, it's Prith. Thanks for the question. So yes, in Q1, relative to our forecast, we were ahead by about 100 basis points, and it was largely driven by favorable mix from decking. And so if you recall, we announced a price increase around our aluminum railing in January. And so we did see some pull forward in Q4 and as a result, a lower mix of rail in Q1. So that was the primary driver of why gross margin performed better in Q1.

是的。Ryan，我是 Prith。謝謝你的問題。是的，第一季相較於我們的預測，我們大約領先 100 個基點，主要是由露臺板材（decking）帶來的有利組合所驅動。如果你還記得，我們在 1 月宣布鋁製欄杆（aluminum railing）調漲價格。因此我們在第四季確實看到一些提前拉貨（pull forward），結果第一季欄杆的組合占比更低。這就是第一季毛利率表現優於預期的主要原因。

Got it. Okay. And then SG&A also beat a little bit. I guess the guide still assumes that it's up year-over-year, the rest of the way. Was there some kind of timing issue in 1Q there?

了解。好的。那麼 SG&A 也小幅優於預期。我想指引仍假設接下來會年增。第一季是否有一些時點（timing）因素？

Good question. So in Q1, our SG&A came in about $5 million lower than we had planned, and it's driven by two things. One is favorability in medical claims. And that's a hard one to forecast. Again, we feel good about the full year. But in any quarter, things can move around. and that's what we think happened here.

好問題。第一季我們的 SG&A 比原先規劃少了約 500 萬美元，主要由兩件事造成。第一是醫療理賠（medical claims）較有利。這一項很難預測。再次強調，我們對全年仍感到樂觀。但在任何一季，數字都可能上下波動，我們認為這次就是如此。

And then second, there was timing around certain expenses, again, related to our investments in growth and brand awareness and so forth. We expect those to come through in the second quarter. So just to level set everyone. We still expect full year SG&A to be around 18% of sales.

第二則是某些費用的認列時點，這同樣與我們在成長、品牌知名度等方面的投資有關。我們預期這些會在第二季反映出來。所以先讓大家有一致基準。我們仍預期全年 SG&A 約為銷售額的 18%。

And in Q2, we expect a significant sequential dollar lift in SG&A. And that spend is based on certain of these expenses that should have been incurred in Q1, they're going to move into Q2. And second, in line with what we've been telling you that's in line with our strategic priorities, we will continue to invest in marketing and innovation that drives our growth and our brand awareness. So with those things, you should see a dollar step-up Q1 to Q2.

而在第二季，我們預期 SG&A 的金額會出現顯著的季增。這些支出是基於部分原本應在第一季發生的費用，將移到第二季。第二，延續我們一直對各位說的、也符合我們的策略優先事項，我們將持續投資於行銷與創新，以推動成長與品牌知名度。因此在這些因素下，你們會看到從第一季到第二季的金額階梯式上升。

Yes, Ryan, I think we also were trying to be, from that perspective, responsible in terms of that the Iran war broke out in Q1 and managed the manageable. That was one of the areas that we looked at it from an SG&A perspective. And as things have calmed down on it, of course, we're going to continue to with the execution of our plan.

是的，Ryan，我想從那個角度來看，我們也試著負責任一些，因為第一季爆發了伊朗戰爭，我們就把可控的部分先管控好。那是我們從 SG&A 角度檢視的其中一個領域。而隨著情勢趨於平穩，當然我們會持續推進計畫的執行。

John Lovallo, UBS.

John Lovallo，UBS。

The first one is the revenue outlook seems to imply a decent you sell in the second half? I mean, understanding that there's seasonality in the business, but it does seem to imply roughly 5% year-over-year growth in the second half despite what's a fairly easy comp in the fourth quarter. So is this, I mean, really just conservatism given the conflict in the Middle East and just macroeconomic uncertainty? Or is there anything else you're trying to message here?

第一個問題是，營收展望看起來似乎暗示下半年會有不錯的通路進貨（sell-in）？我理解這個業務有季節性，但看起來確實暗示下半年約 5% 的年增，儘管第四季的比較基期相當容易。所以這是否主要是因為中東衝突與總體經濟不確定性而採取較保守的看法？還是你們想傳達其他訊息？

Yes. I think you nailed it in terms of the growth, it's around 5%. I think our number is like 4.8. So from that perspective, you have that correct. When we look at this year, there's still some things that we want to see from how the war in that is going to pan out. If this is still going to keep going on and on over the next several months then, some conservative from that perspective.

是的。我想你對成長的判斷很到位，大約是 5%。我想我們的數字大概是 4.8%。所以從這個角度來看，你說得沒錯。我們看今年時，仍有一些事情需要觀察，例如那場戰爭會如何發展。如果接下來幾個月仍持續延燒，那麼從這個角度來看，我們會偏保守一些。

If we do think this thing is going to settle down. then there is some opportunities for us in terms of the execution. So I think that is one of the things on -- that's a wild card for us. We still see the high ends have been doing really, really well as we look at the decking side -- we are definitely focused on converting more of that wood market, 75% of the market is still wood, but we still see those consumers on the lower end are struggling right now. So we're getting more and more creative as to how we're going to convert that opportunity.

如果我們認為情勢會趨於緩和，那麼在執行面我們就有一些機會。所以我認為這是我們的一個變數（wild card）。我們仍看到高端市場表現非常、非常好；就露臺板材（decking）而言——我們確實聚焦於把更多木材市場轉換過來，因為市場仍有 75% 是木材，但我們也看到較低端的消費者目前正面臨壓力。因此我們在思考如何更有創意地去轉換這個機會。

Yes. A couple of other things, John, in terms of just around the second half and the rest of the year -- so one of the -- in terms of things that we've been doing, we did introduce a refuge PVC product. Most of those sales will occur in the Q2 to Q4 time frame.

是的。John，另外幾點關於下半年與全年——我們做的一件事是推出了 Refuge PVC 產品。這些銷售多數會發生在第二季到第四季的期間。

So that's one of the drivers that should help in terms of their revenue growth. Second is in line with the rest of the industry, we have announced the mid-quarter price increase again around aluminum railing. So that was not in our forecast before.

所以這是有助於營收成長的其中一個驅動因素。第二，與產業其他公司一致，我們再次宣布了季中調價，仍是針對鋁製欄杆（aluminum railing）。所以這在先前的預測中並未納入。

And so -- and then the third is our continued investments around marketing and innovation. We are seeing the green shoots, and Adam pointed those out in his prepared remarks, lead generation, sample orders, all those things are progressing really well, and we do expect to drive some conversion from all of that.

因此——接著第三點是我們持續在行銷與創新方面的投資。我們已經看到一些初步成效，Adam 在他事先準備的發言中也提到這些，包括潛在客戶開發、樣品訂單等，各項指標進展都很順利，我們也確實預期能從這些活動中帶動一定的轉換。

Okay. That's helpful. And then I'm just trying to get a better understanding of the quarterly cadence and adjusted EBITDA margin. I mean the second quarter revenue is expected to be up sequentially. But is it possible that the EBITDA margin is actually down quarter-over-quarter just given some of the factors you mentioned like the step-up in SG&A spend?

好的。這很有幫助。另外我想更清楚了解季度節奏與調整後 EBITDA 利潤率。我的意思是，第二季營收預期會較前一季成長。但考量你提到的一些因素，例如 SG&A 費用支出的增加，EBITDA 利潤率是否有可能反而季對季下滑？

Yes. From '25 to '26 Q2, yes, you should expect some EBITDA margin difference between last year and this year and being lower this year back to Again, we expect some of the gross margin favorably we saw in Q1. And so we saw about 100 basis points of favorability.

是的。從 2025 年到 2026 年第二季，是的，你應該預期今年與去年之間的 EBITDA 利潤率會有差異，而且今年會比較低。回到——同樣地，我們預期第一季看到的毛利率有利因素。因此我們看到大約 100 個基點的有利影響。

Expect a little more than half of that to reverse in Q2. And then, again, on SG&A, expect a significant dollar step-up between Q1 and Q2. And once you do those two things, I think you'll see a different EBITDA profile in Q2 of last year.

預期其中略多於一半會在第二季回轉。然後，同樣地，在 SG&A 方面，預期第一季到第二季會有顯著的金額跳升。當你把這兩件事放在一起看，我想你會看到第二季相較去年呈現不同的 EBITDA 型態。

So -- but sequentially 1Q to 2Q, that it could be down, is what you're suggesting?

所以——但若是按序列來看，從第一季到第二季可能會下滑，你的意思是這樣嗎？

You're asking Q1 to Q2, yes, I thought you were asking year Okay. Q1 to Q2 as well, you should see some decline in EBITDA margin.

你問的是第一季到第二季，是的，我剛剛以為你問的是年對年。好的。第一季到第二季同樣地，你應該會看到 EBITDA 利潤率有些下滑。

Michael Rehaut, JPMorgan.

Michael Rehaut，摩根大通。

This is [Nick Calera] on for Michael. First wanted to ask sort of along the previous question on the cadence throughout the year or in the back half, -- how are you -- can we just get an update on how you're looking at the R&R backdrop and how connect that to the range that you've given for the full year guidance and how we should be thinking about that and maybe what you're seeing?

我是代替 Michael 的 [Nick Calera]。首先想延續前一題，關於全年或下半年節奏——你們如何看待 R&R（維修與翻新）的大環境？以及如何把這與你們給出的全年指引區間連結起來，我們應該如何思考，也許你們目前看到的是什麼？能否更新一下？

Yes. So when you look at it, let's just look at the home center business. There's been a lot on the forecast from negative 1% to 1% growth. We've seen a lot of people on the forecast having flat to slightly down. we're doing about low to single-digit growth. If you look at the full year, it's about 3% right now when we look at year-over-year in terms of our growth right now in our guidance.

是的。所以當你看這件事時，我們先看家居賣場（home center）業務。市場上對於預測有很多說法，從負 1% 到 1% 的成長。我們看到很多人的預測是持平到小幅下滑；而我們目前大約是低到個位數成長。若看全年，以我們目前指引所反映的成長來看，年對年大約是 3%。

Yes. So nothing has changed in terms of our overall macro assumption on repair and remodel. We're still flat to down with some of the back half being better than the first half as sort of the big picture macro assumption in line with all the same like [Lyra], et cetera.

是的。所以在維修與翻新方面，我們整體的宏觀假設沒有改變。我們仍然假設持平到下滑，而下半年會比上半年好一些，這是整體宏觀假設的大方向，並且與像 [Lyra] 等各方的看法一致。

Got it. Got it. Makes sense. And then you mentioned the strength -- the relative strength between DIY and Pro and how that shifted throughout the quarter. Could you provide like a little more detail on that and how you're thinking about that going forward as well?

了解。了解。有道理。另外你提到 DIY 與 Pro 之間的相對強弱，以及這在季度內如何轉變。你能否提供更多細節，以及你們未來如何看待這件事？

Yes. So the one thing I want to focus on for a second is we are a marketing powerhouse, and we had to get back to our roots. So if you look at it, that's really the territory that I've come from, and we had to reinvest in that platform. We've made structural changes in marketing. We filled out that department. And I feel like we're in a really great spot, that's what really helps drive that high end of the marketplace.

是的。我想先強調一點：我們是一個行銷能力很強的公司，而我們必須回到本業、回到根本。所以如果你看，我的背景正是來自這個領域，而我們必須在這個平台上重新投資。我們在行銷上做了結構性調整。我們把那個部門的人力補齊。我覺得我們現在處在非常好的位置，而這正是推動高端市場的關鍵。

So not investment as you have seen is once again products like Trex Transcend or even our select decking are doing really well and even some of our higher-end lines of the railing. And those are the consumers that are out there buying right now, right?

因此你看到的投資——再次像 Trex Transcend 這類產品，甚至我們的 select decking 表現都非常好，還有一些更高端的欄杆產品線也是如此。而這些正是目前仍在市場上購買的消費者，對吧？

And so we got that part going really well. And then the focus is how do we get that low end, how do we can convert more of those wood users over to Trex. And then also on the high end, there's been focus on the PVC area, not just on the PVC introduction of Trex refuge, but we have some other products that depending on the range they compete in that fire segment, and we're going after it with those products as well. So plenty of opportunity here. But that's why I believe a lot of the premium -- the mid- to premium end of the market is doing well is because our marketing is working.

所以我們把這一塊運作得很順。接下來的重點是：我們如何把低端市場做起來，如何把更多使用木材的客戶轉換成使用 Trex。另外在高端方面，我們也聚焦在 PVC 領域，不只是 Trex refuge 的 PVC 新品導入；我們還有其他一些產品，依其競爭區間不同，會在那個細分市場競爭，我們也會用這些產品去搶攻。所以這裡有很多機會。但這也是為什麼我相信市場中高端——中到高端區間表現良好，是因為我們的行銷正在發揮作用。

Kurt Yinger, D.A. Davidson.

Kurt Yinger，D.A. Davidson。

I was just hoping to talk a little bit more about the retail shelf space commentary. Is there any way you could maybe help us frame the magnitude of that expansion kind of how you expect that business to ramp over the next couple of quarters? And maybe just some sense on kind of price point.

我希望能再多談一點關於零售貨架空間的評論。你們是否能協助我們理解這次擴張的幅度，以及你們預期這項業務在接下來幾個季度會如何爬坡？另外也想了解一下大概的價格帶。

Yes. I think we characterized it as meaningful. We've not really given a number around there, but we have picked up both decking and railing slots here in the recent line reviews. And so you will see that Trex was one of what we believe was two winners at retail here as we move forward. And then there are some people that didn't do as well in terms of how line review unfolded. So we won't give you a specific number, but we will tell you that, that was meaningful in terms of how we look at some of our growth.

是的。我想我們把它形容為「相當有意義」。我們並沒有提供具體數字，但在最近的產品線審查（line reviews）中，我們在地板（decking）與欄杆（railing）都新增了陳列位置。因此隨著我們往前推進，你會看到 Trex 在零售端是我們認為的兩個贏家之一。同時也有一些品牌在這次產品線審查的結果上表現沒那麼好。所以我們不會給你一個特定數字，但我們可以說，從我們看待成長的角度，這件事是很有意義的。

And is that something that we'll kind of see phase in over the course of the year? Or --

那這會是在一年當中逐步導入、逐步顯現嗎？還是--

No. So we would have liked to do. But as we just look at how we started to get it off as you're trying to do shelf resets, getting that exact timing is always challenging. -- we will start to see some of those reset and some of the products in place now as we move into Q2, and then that will pick up momentum as we move from Q2 into Q3 and Q4.

不會。我們本來希望可以那樣做。但就我們目前看到的情況，當你要做貨架重置（shelf resets）時，要抓到精準時點一向很有挑戰。——我們會在進入第二季時開始看到部分重置，以及部分產品已經到位，然後從第二季到第三季、第四季會加速、動能會更強。

Okay. That's super helpful. I appreciate that. And then just a two-parter on the railing side. Can you just talk about kind of the pace that you believe you can drive some improvements at least in those controllable cost areas and how M&A may factor into that? And then second, how does the ability to lower cost there also potentially act as a catalyst in terms of the market share objectives you have? And maybe the pace of kind of volume growth going forward.

好的。這非常有幫助。謝謝。接著有兩個關於欄杆的問題。你能談談你們認為在那些可控成本領域，能以多快的速度推動改善，以及併購（M&A）可能如何影響這件事嗎？第二，降低那邊成本的能力，如何可能成為你們市占目標的催化劑？以及未來量的成長速度大概會如何？

That's -- this is really about growth on decking and railing about material science. So there are some things that I've seen here even this year that we're going to unlock on the material science part of the portfolio that is going to lower the raw material cost of railing. In many cases, this is going to be margin expansion on the railing side.

這——這其實是關於地板與欄杆的成長，以及材料科學（material science）。所以在欄杆產品組合的材料科學部分，有一些事情我甚至在今年就已經看到，我們將會解鎖，並且會降低欄杆的原材料成本。在很多情況下，這將會帶來欄杆業務的利潤率擴張。

I do believe Trex is the most aggressively priced in every single one of the segments, whether it's the opening price point that you'll find at the home center, that could be anywhere from $20 to $25 a foot all the way up to we offer railing systems that are $250 a foot. So from that perspective, most of that things in terms of material science and that many of them will drop to the bottom line.

我確實相信 Trex 在每一個細分市場的定價都最具進攻性，無論是在家居賣場（home center）能看到的入門價位，可能每英尺約 20 到 25 美元，一直到我們提供每英尺 250 美元的欄杆系統。因此從這個角度來看，許多在材料科學方面的成果，其中相當一部分都會直接反映到最終利潤。

On the vertical integration and some of the acquisition side, that's very small companies that we're looking at from an M&A perspective, but a very meaningful impact in terms of what we can do and how we can lower our raw material streams. Now in some cases, we can be strategic, and there could be some markets we could be more aggressive to convert but I would tell you we're very satisfied with where we're railing sitting at today and the conversions that have already happened. So really, the focus is going to be how we expand margins.

關於垂直整合以及部分併購（M&A）面向，我們從 M&A 的角度所看的都是非常小的公司，但對於我們能做什麼、以及如何降低原材料來源成本而言，影響卻非常顯著。當然在某些情況下，我們可以採取策略性作法，在某些市場更積極推動轉換；但我想說的是，我們對目前欄杆業務所處的位置，以及已經發生的轉換成果都非常滿意。所以真正的重點會放在我們如何擴大利潤率。

Just to add to what Adam said, I think back in 2023, we said we would be able to double our business by 2028, we're on track to do that.

補充 Adam 剛才說的，我記得在 2023 年我們曾表示，到 2028 年我們有能力把業務規模翻倍，而我們目前正按計畫推進。

Susan Maklari, Goldman Sachs.

Susan Maklari，高盛。

This is Charles Perron in for Susan. I guess the first one I want to talk about some of the price priorities that you mentioned earlier. Where do you see the biggest opportunity to drive above-market growth in the near term relative to the ones that are maybe more helpful in the long run?

我是代替 Susan 的 Charles Perron。我想第一個問題是談談你先前提到的一些定價優先事項。就近期而言，相較於那些可能更有利於長期的項目，你認為哪一項在短期內最有機會帶動高於市場的成長？

Can you say that again in terms of the priorities? Go ahead.

你能再說一次關於優先事項的問題嗎？請繼續。

Yes, which one of -- within the five that you mentioned, which will provide the biggest upside, I would say, in the near term to drive above-market growth relative to those more beneficial in the long run?

好的，在你提到的五項之中，哪一項會在短期內提供最大的上行空間，以帶動高於市場的成長？相較之下，哪些則是更偏向長期效益？

Yes. So right now, I'd say that there's -- the first one would be to create a break bond with end users. So getting back to basics, it's on the marketing side and having the people in the right spots, right, to convert more downstream with the contractor and more with the consumer. That's going to be the near term in terms of what we do.

好的。我認為目前第一項會是與終端使用者建立牢固的連結。也就是回到基本功：在行銷端把人放在對的位置，對承包商端更深入地推動轉換，對消費者端也做更多轉換。這會是我們短期內的重點。

But not too far out from there, the launching the high-performance innovation as I mentioned on the remarks there, we will start to have a regional launch as we move into 2027. And then a much more meaningful impact if we moved from 2028 to 2030 on some of those national launches. But I would say in the near term, it's decrease on break bond with end users.

但在不算太遠的未來，正如我在發言中提到的高性能創新產品推出，我們會在邁入 2027 年時開始進行區域性上市。而如果在 2028 到 2030 年間推進部分全國性上市，影響會更為顯著。但我會說，短期內就是加強與終端使用者的連結。

Got it. Okay. That's very helpful. And I guess my follow-up you talked about opportunities to optimize the channels for growth. What does it mean in terms of spending your presence in retail versus making changes to your wholesale. We're seeing some consolidation coming through at the wholesale level. How does it provide more opportunity for you to grow? And where do you see the biggest opportunity within the 2?

了解。好。這很有幫助。接著追問，你提到有機會透過優化通路來促進成長。這在擴大零售端的布局、與對批發端做調整之間，具體代表什麼？我們看到批發層級正在出現一些整併。這如何為你們帶來更多成長機會？在這兩者之中，你認為最大的機會在哪裡？

Yes. I think when it comes to -- once again, we created this pricing department, how we price our products and the products by channel. So a lot of times, you want it -- what you want to do is you want to avoid any forms of channel conflict that are sold, whether between the home center channel and the pro channel, sometimes those products cross-pollinate.

是的。我想談到這點——再次強調，我們成立了定價部門，來管理我們如何為產品定價，以及依通路為產品定價。很多時候，你要做的是避免任何形式的通路衝突，無論是在家居賣場通路與專業通路（pro channel）之間，因為有時候這些產品會互相交叉流通。

And so from our perspective is to make sure we have the right products at the right channels at the right price. And that is one of the things that we need to focus more on is because there's been a very dynamic market today with a lot of consolidation at the dealer, at the distributor and as there's been consolidation, there's going to be channel changes in the way that we sell here longer term.

因此從我們的角度，就是確保在正確的通路，以正確的價格，提供正確的產品。而我們需要更聚焦的一點是：目前市場非常動態，經銷商與分銷商層級都有大量整併；隨著整併發生，長期來看我們的銷售方式也會出現通路變化。

And from that perspective, we got to make sure we got the right pricing strategy for each one of those channels with the right products. So -- there's a lot of work that goes into it, but we've been creating that structure in order to once again allow us to take market share but also maximize margins over time.

因此從這個角度，我們必須確保針對每一個通路、搭配正確產品，都有正確的定價策略。所以——這需要投入大量工作，但我們一直在建立這樣的架構，讓我們能再次提升市占，同時也能隨時間推移最大化利潤率。

Ketan Mamtora, BMO Capital.

Ketan Mamtora，BMO Capital。

It perhaps is there a way for us to think about when I look at your full year guidance, what is embedded within that in terms of sellout, both decking and railing?

我想問的是，當我看你們的全年指引時，其中對於終端銷售（sell-out）包含了哪些假設，包含地板（decking）與欄杆（railing）兩個品類？

So in total, again, our selling growth through what we've said is about 3% growth. Again, in terms of the sell-out, we're assuming something close to that. in terms of the overall market.

整體而言，再次重申，我們所說的銷售成長大約是 3%。同樣地，在終端銷售方面，我們假設大致接近整體市場的那個水準。

I see. Okay. But that is -- that would imply kind of a meaningful slow down from kind of the trailing 12 months, which was about 6%. But you're not seeing anything today that seems to suggest that slowdown is happening. Is that fair?

了解。好。但那樣看起來，會意味著相較於過去 12 個月約 6% 的表現，有一個相當明顯的放緩。但你們目前並沒有看到任何跡象顯示這種放緩正在發生。這樣理解對嗎？

Yes. Again, I think as Adam said, the year started off slowly because some of it driven by weather and so forth. But -- since March, we've seen good order intake and that continues as we're moving through April. So yes, overall, we don't see anything that would cause us to think what you said.

是的。再次強調，正如 Adam 所說，今年一開始比較慢，部分是天氣等因素所致。但自 3 月以來，我們看到良好的訂單流入，而且在進入 4 月後仍在持續。所以是的，整體而言，我們沒有看到任何會讓我們認為如你所說那樣放緩的因素。

Understood. Okay. And then just switching to capital allocation. You talked about CapEx coming down. As we sit here today, and you all have been active with share repurchases -- can you talk a little bit about how M&A pipeline is today? And kind of how do you rank order the priorities between share repurchases and M&A?

明白。好。接著切換到資本配置。你提到資本支出（CapEx）會下降。以目前來看，你們也一直積極進行庫藏股回購——能否談談目前的併購（M&A）案源（pipeline）狀況？以及你們如何在庫藏股回購與併購之間排列優先順序？

So good question. So one, as you know, Lee just joined us a couple of months ago. And so we are currently actively doing the work. Adam's talked about before in terms of areas of interest, number one is going at opportunities for vertical integration and margin expansion. Two is looking at the whole outdoor living from the fence back to the Dekel house.

這是個好問題。首先，如你所知，Lee 是幾個月前才加入我們。因此我們目前正在積極推進相關工作。Adam 之前談過我們感興趣的領域：第一是垂直整合與利潤率擴張的機會。第二是檢視整體戶外生活（outdoor living）領域，從圍籬（fence）一路延伸到甲板（deck）與房屋。

And then third, and more distant is probably things around the building on exterior building envelope. So that's the playing field. We're doing the strategy work right now to identify targets and areas that we think would be very synergistic. We should have a point of view around all of that here shortly. -- and then from there, start to build out the pipeline. So we're still early days around the M&A piece.

第三個、也更長期一些的方向，可能是與建築外部圍護結構（exterior building envelope）相關的領域。這就是我們的布局範圍。我們正在進行策略工作，以辨識我們認為能帶來高度協同效益的標的與領域。我們很快就會對這些方向形成觀點——然後從那裡開始建立案源管線。所以在併購這一塊，我們仍處於早期階段。

But in terms of capital allocation, and you know this from Beacon and onsporting, I always look at capital allocation for M&A against share buybacks, right? So that's where I always start and look at kind of where is our share price, how much cash flow do we have and what we think is the intrinsic value of the company and look at the return of buying back shares versus okay, if we instead use that capital to do an M&A transaction, what would be the return on that -- in that case. The one big difference is the M&A gives you future growth options, share buybacks don't do that. So that's the sort of analysis we go through as a team.

但就資本配置而言——你也從 Beacon 和 Onsporting 了解我的作法——我一向會把用於併購的資本配置與股票回購做比較，對吧？所以我總是從這裡開始：看我們的股價在哪裡、我們有多少現金流、以及我們認為公司的內在價值是多少，並比較回購股票的報酬率，與如果改用這些資本去做一筆併購交易，其報酬率會是多少——在那種情況下。其中一個重大差異是：併購能帶來未來的成長選項，而股票回購不會。這就是我們團隊會進行的分析。

Trevor Allinson, Wolf Research.

Trevor Allinson，Wolf Research。

A follow-up question on your goal to lower the cost of railing and drive margin improvement there. Are there any numbers you can put around that for us, what the opportunity in terms of cost reduction or margin improvement -- and I think you talked about eventually pushing margins closer to your decking margins. Is that something that can happen in a five-year time frame? Or is that something that's going to take longer to play out?

針對你們降低欄杆（railing）成本並推動該業務毛利率改善的目標，我有個追問。你們能否提供一些量化數字，說明在成本降低或毛利率改善方面的機會有多大——我記得你們提到最終要把毛利率推近你們的露台板（decking）毛利率。這件事有可能在五年的時間範圍內發生嗎？還是說需要更長時間才能逐步實現？

Yes. In our strategic plan that we laid out, that is something that can happen in a 5-year time frame, and we have it broken out by year, but that is not something we've shared this time.

是的。在我們所提出的策略計畫中，這確實是可以在五年時間範圍內達成的；我們也按年度拆分了，但這次我們沒有對外分享那些細節。

Okay. Understood. And the second question is on your expectations for inflation here in 2026. You mentioned some reasons why you should be shielded from inflation on LDPE. Can you put some numbers around potential inflationary pressures moving forward across your portfolio? And then relatedly, what are you expecting in terms of price cost relative to that inflation?

好的。了解。第二個問題是關於你們對 2026 年通膨的預期。你提到一些原因，說明你們應該能在 LDPE 方面免受通膨影響。你能否量化一下，展望未來你們整體產品組合可能面臨的通膨壓力？另外相關地，你們對價格與成本相對於該通膨的走勢有何預期？

Yes. So as we said, There, at the start of the year in terms of price cost, how that came through the forecast, it was relatively neutral for the full year. We continue to have that expectation. So back to inflation, there's three areas where there is some exposure. But again, we've taken steps to mitigate exposure. So one is around the virgin resins, right? On that front, you've essentially have a fixed cost for the rest of the year.

是的。如我們所說，就年初在價格/成本（price-cost）方面、以及它如何反映在預測中來看，全年大致是相對中性。我們仍維持這樣的預期。回到通膨，有三個領域存在一些曝險。但同樣地，我們已採取措施來降低曝險。第一個是原生樹脂（virgin resins），對吧？在這方面，你們基本上在今年剩餘期間的成本是固定的。

And so that's what we know what that is, and that's already baked into the forecast. The second phase of exposure is around diesel prices where we pay for the freight for inbound materials and then certainly for transfers between our plants and so forth. Even there, we've -- again, we've taken steps to push back against vendors on kind of the actual cost of raw materials.

因此我們知道那會是多少，而且已經納入預測。第二個曝險階段是柴油價格，我們需要支付進料運輸的運費，當然也包括工廠之間的調撥運輸等等。即便在這裡，我們——同樣地——也已採取措施，針對供應商在原物料實際成本方面進行回應與協商。

So we offset some of the diesel price inflation. And then we're managing how we do our internal transfers and so forth to again mitigate any impact from diesel costs. And then, look, the third place is on PVC, the new product that we've introduced. Our costs are fixed for -- again, as you remember, this is a product that we source to a third party. Our cost is fixed through the balance of 2026. So on all these fronts, we were well positioned in terms of managing any inflationary impact.

因此我們抵消了一部分柴油價格通膨。同時我們也在管理內部調撥等作法，以再次降低柴油成本帶來的任何影響。第三個部分是在 PVC，也就是我們推出的新產品。我們的成本是固定的——再次提醒，這是我們向第三方採購的產品。我們的成本固定至 2026 年剩餘期間。因此在上述各方面，我們在管理任何通膨影響上都處於有利位置。

Jeffrey Stevenson, Loop Capital.

Jeffrey Stevenson，Loop Capital。

Today. You mentioned the cold start to the year in January and February. And I wondered if you saw any delays with the start of the spring selling season and markets, such as the Northeast, that could benefit 2Q sell-through demand?

今天。你提到一月與二月年初偏冷。我想了解你是否看到春季銷售季在某些市場（例如東北部）有延後啟動的情況，而這可能讓第二季的終端銷售（sell-through）需求受惠？

Yes. Just to give you a little bit more color around that. If you look at the northern markets, let's just say, New England all the way across to Minnesota and that upper northern belt, down double digits as we look at Q1. As you move to the Mid-Atlantic area, the Balt Wash and you just kind of drew a line all the way across the United States, about flat.

是的。我再補充一些背景。如果看北方市場，譬如從新英格蘭一路到明尼蘇達以及那條北部地帶，我們在第一季觀察到是雙位數下滑。往中大西洋地區移動，包含巴爾的摩—華盛頓（Balt Wash），你大致畫一條橫跨美國的線，表現大約持平。

And then as we went to the southern part of the United States, we started to see once again double-digit growth. So definitely, we could see the weather influence. And we're just now starting to see some of the northern territories start to wake up. So the promising part about this is where the weather has been good, we've seen some nice numbers across the board.

接著到美國南部，我們又開始看到雙位數成長。所以很明顯，我們看得到天氣的影響。而我們現在才剛開始看到一些北方區域開始回溫、動起來。令人鼓舞的是，在天氣好的地方，我們整體都看到不錯的數字。

Very helpful. And Prith, you talked about the mid-quarter railing price increase. Can you talk about any impact from the new Section 232 valuation on your railing products and whether the increase will fully offset inflation pressure you're seeing?

非常有幫助。另外，Prith，你談到欄杆在季度中段的漲價。你能談談新的《232 條款》（Section 232）估價對你們欄杆產品的任何影響嗎？以及這次漲價是否能完全抵消你們看到的通膨壓力？

Yes. So in terms of -- we've talked about this before, tariffs in terms of our overall cost position, it's less than a 5% impact. And through our pricing initiatives, yes, we're able to cover most of that cost increase.

是的。就——我們之前談過，關稅對我們整體成本結構的影響不到 5%。透過我們的定價措施，是的，我們能夠涵蓋其中大部分的成本上升。

Reuben Garner, Benchmark Company.

Reuben Garner，Benchmark Company。

Congrats on a strong start to the year. Most of my questions have been asked. I just wanted to ask a follow-up about inventory in the channel and then your own inventory, your own inventory looks a little higher than usual in the first quarter. Just wondering if you could talk about that strategy.

恭喜今年開局強勁。我大多數問題都已被問過了。我只想追問一下通路庫存以及你們自身庫存；你們第一季的自有庫存看起來比平常略高。想請你談談這背後的策略。

Is that just an extension of the level loading plan? Was it in part because of the slow start to the year. Is it you're more optimistic than the channel and just being prepared for a bounce back? Any color there would be helpful.

這只是你們平準化生產（level loading）計畫的延伸嗎？是否部分原因是年初開局較慢？還是你們比通路更樂觀，因此提前備貨以因應反彈？任何補充說明都會很有幫助。

Yes. So we have our level loading strategy in place. We want to make sure we're there to serve the market when the demand is ready. When I look at the channel inventory, I see it about flat to prior year. However, there's some pricing in there.

是的。我們確實有平準化生產策略。我們希望在需求準備好時，能確保有能力服務市場。就通路庫存而言，我看到大致與去年持平。不過其中包含一些價格因素。

So from a lineal foot perspective, external detects, I see the inventory being slightly down -- as we talked earlier in the call, you see like a lot of larger customers like national accounts didn't take as much inventory. So we believe that demand is going to be there in Q2. Therefore, we have a little bit higher inventory right now in Q1 as you look at that because we know that -- once again, those customers are going to need product right away as we move into Q2, and that's really the only change as far as I see it.

因此若以延長英尺（lineal foot）的角度、以外部露台（external decks）來看，我看到庫存略為下降——如我們先前在電話會議中提到，你會看到一些較大的客戶（例如全國性客戶）沒有拿那麼多庫存。所以我們相信第二季需求會出現。因此，當你看第一季時，我們目前的庫存稍微高一些，因為我們知道——再一次——隨著進入第二季，那些客戶會立刻需要產品，而就我所見，這基本上是唯一的變化。

Trey Grooms, Stephens.

Trey Grooms，Stephens。

So Prith, I want to dig into the railing and the impact on margins just a little bit more. You mentioned that lower railing sales helped the margins a bit in the 1Q with that mix. And I think the expectation was for this higher mix of railing sales kind of through this year to have a, call it, ballpark 80 basis point impact to gross margin.

Prith，我想再更深入談一下欄杆以及對毛利率的影響。你提到第一季因為組合（mix）因素，欄杆銷售較低反而對毛利率有些幫助。而我認為原先預期是，今年欄杆銷售占比提高，將對毛利率造成——大概——80 個基點的影響。

And is that -- so is that expected to normalize in the 2Q fully? And again, with kind of all the movements we've seen in raws and pricing that you've talked about and the initiatives to grow margins, which I understand you're not ready to fully kind of give expectations on that and timing and such. But is that still the best way to think about the margin impact for this year and then maybe think about the improvement from there more kind of in '27?

那麼——這是否預期在第二季就會完全正常化？另外，考量你談到的原物料與定價的各種變動，以及提升毛利率的各項措施——我理解你們還沒準備好完整提供對此的預期、時程等。但就今年而言，這仍是理解毛利率影響的最佳方式嗎？然後改善可能更多會在 2027 年體現？

Yes. So let's -- again, let me maybe start with just reminding everyone of what we said back in November when we reported Q3 2025 results, right? So at that time, we stated that we expected about 250 basis points of headwinds to adjusted gross margin in 2026 on a full year basis. We continue to have this expectation for 2026. And we finished 2025 with adjusted gross margin of 40% for the full year.

是的。那我們——再一次——我先提醒大家我們在去年 11 月公布 2025 年第三季結果時所說的內容，好嗎？當時我們表示，預期 2026 年全年口徑下，調整後毛利率將面臨約 250 個基點的不利因素（headwinds）。我們對 2026 年仍維持這項預期。而我們在 2025 年全年結束時，調整後毛利率為 40%。

Also in November, what we said was yes, 170 basis points to 180 basis points of that 250 was entirely from the depreciation associated with bringing Arkansas production readiness. So yes, the balance 70% to 80% is from railing growth. And we, again, continue to expect that for the full year this year.

另外在11月，我們當時說的是，是的，那250個基點中的170個基點到180個基點完全來自於與阿肯色州產能導入、達到量產準備相關的折舊。所以是的，其餘的70%到80%來自於鐵路運輸（railing）成長。而且我們再次預期，今年全年仍會是這樣。

So now to your question, Trey, around -- so we had some about -- as I said, in Q1, about 100 basis points of gross margin favorability from railing being smaller in the mix. In Q2, we expect about a little more than half of that to reverse. So -- and then the rest of it will reverse through the balance of the year. So that's how I would think about it.

所以回到你的問題，Trey，關於——如我所說，在第一季，因為鐵路運輸在組合中的占比變小，我們的毛利率大約有100個基點的有利影響。在第二季，我們預期其中略多於一半會回轉。所以——其餘的部分會在今年剩餘期間逐步回轉。所以我會這樣來看。

Yes. Okay. And then, Adam, you mentioned you guys have historically been a marketing powerhouse, clearly, and you're getting back to your roots there. Is the thought -- going forward, is the thought still that branding and this marketing spend will continue at a similar level as far as to grow with sales, similar level as a percentage of sales and to grow with sales or with new product rollouts and things like this that you got some of these initiatives you guys have planned, where there'll be need to ramp that up more? Or are we at a level now where you feel that's kind of where we need to be over the long run?

是的。好的。然後，Adam，你提到你們過去一直是行銷強者，這點很明顯，而你們也正在回到這個根本。想法是——往後，對於品牌與這些行銷支出，你們是否仍認為會維持在類似水準，也就是作為銷售額的百分比大致相同並隨銷售成長，或是會隨著新產品上市與你們規劃的一些計畫，需要把它拉得更高？或者我們現在的水準，你覺得長期來看大概就是我們需要的水準？

Yes. As long as I'm here, we're going to be investing in marketing. And the 18% is a really good number. I think what happened, especially as we got during COVID, you started seeing that SG&A number plummet. We were out of capacity from that perspective. And so we were delivering very strong numbers. If I go back in time, though, would I invested more during that period, I would have to create more awareness around the Trex brand.

是的。只要我還在，我們就會投資行銷。而18%是一個非常好的數字。我認為發生的事情是，特別是在COVID期間，你開始看到SG&A那個數字大幅下滑。從那個角度來看，我們的投入其實不夠。因此我們交出了非常強勁的數字。但如果我回到那段時間，我會不會投更多？我會，因為我需要為Trex品牌創造更多知名度。

So will there be some leverage over time on SG&A, Sure, but it won't be 100 basis points or 200 basis points, that might be 10 basis points, 20 basis points or 30 basis points as we expand or grow over time because I want to make sure that we're still investing in that platform in order to get more contractors and more consumers in the door to buy Trex. So we will continue to do it when we can leverage, we will, but it's going to be very important to me that we invest in marketing moving forward.

所以SG&A隨時間推移會不會有一些槓桿效益？當然會，但不會是100個基點或200個基點，可能是10個基點、20個基點或30個基點，隨著我們擴張或成長而逐步體現，因為我想確保我們仍在投資這個平台，讓更多承包商與更多消費者走進來購買Trex。所以我們會持續做；能夠運用槓桿時我們就會運用，但對我而言，未來持續投資行銷會非常重要。

Very good. Last one for me and just a little bit of clarity, and I know it's early in your process, but more -- Adam, this is maybe more for you and just trying to get a better understanding of your appetite here around M&A -- definitely this has become more of a focus for the company, understand that. And you kind of noted on a few areas that you have interest. But just to get an idea, is there a potential or is there appetite for larger deals out there? Or are we more kind of thinking more kind of tuck-in kind of complementary stuff, all of the above? Any help on just getting more into your thinking around M&A?

非常好。我最後一個問題，想再釐清一下；我知道你們還在早期階段，但——Adam，這可能更是問你，想更了解你對併購（M&A）的胃納——這確實已成為公司更重要的焦點，我理解。你也提到幾個你們有興趣的領域。但想請教一下，市場上是否有做較大型交易的可能或意願？還是我們更偏向做一些補強型、互補性的tuck-in交易，或兩者皆可？能否多分享一些你對M&A的想法？

Yes. So our thoughts right now on our five-year strategic plan is tuck-in M&A. And I've really been very consistent from this perspective, number one, vertical integration. When I say vertical integration, the only thing you're going to get out of it from Trex's margin expansion from that perspective.

是的。所以我們目前在五年策略計畫中的想法是做tuck-in併購。而我在這方面一直非常一致：第一，垂直整合。我所說的垂直整合，從這個角度來看，你能得到的就是Trex的利潤率擴張。

Number two, we have the license to own the backyard. From that back, that threshold from your sliding glass door, all the way out to the fence, Trex could be anywhere in that backyard. So that's where we would go after next. And then the last one would be the envelope of the house.

第二，我們有「擁有後院」的授權。從你家那扇落地推拉門的門檻開始，一直到圍籬，Trex都可能出現在那個後院的任何地方。所以那會是我們下一步要攻的方向。最後一個則是房屋的外殼（envelope）。

But the way we view this is smaller tuck-in acquisitions that can really add value, and our brand is our number 1 asset. So there's a lot of smaller companies out there where the Trex brand makes a lot of sense. And once again, that would help us also potentially grow our TAM.

但我們看待這件事的方式，是做一些較小的tuck-in收購，能真正創造價值，而我們的品牌是我們的第一大資產。所以外面有很多小公司，搭配Trex品牌非常合理。而且再一次，這也可能幫助我們擴大我們的TAM。

So our -- we reside in a $75 billion outdoor living market. Our TAM is around $14 billion. And if we can expand that over the next four to five years to $20 billion or $25 billion in terms of TAM, that's nothing but a benefit to Trex in terms of the opportunities that we can go and grow market share.

所以我們——我們所在的是一個750億美元的戶外生活市場。我們的TAM大約是140億美元。如果我們能在未來四到五年把TAM擴大到200億或250億美元，對Trex而言只有好處，因為這會增加我們可以去爭取並提升市占率的機會。

Got it. That's super helpful. And I want to say congrats also on the new role, and congrats on the great quarter. So keep up good work. Appreciate it.

了解。這非常有幫助。我也想說恭喜你升任新職，並恭喜這一季表現很棒。所以請繼續保持。感謝。

Matthew Bouley, Barclays.

Matthew Bouley，Barclays。

Dalkia on for Matt today. So first off, I just wanted to touch on some of the capacity dynamics. So I'm curious if you take into account everything you guys have set on demand trends, what you're hearing at the contractor level in terms of overall customer sentiment.

今天由Dalkia代替Matt。首先，我想先談一下產能的動態。所以我想了解，如果把你們對需求趨勢的所有看法都納入考量，以及你們在承包商層級聽到的整體客戶情緒。

I'm curious how this kind of supports your strategy around incremental capacity -- and then any details around how you would adjust the capacity network as the Arkansas facility ramp. So is the Arkansas capacity displacing any production elsewhere?

我想知道這如何支撐你們對新增產能的策略——以及當阿肯色州廠區爬坡時，你們會如何調整產能網路的任何細節。所以阿肯色州的產能是否會取代其他地方的任何產量？

Yes. From the contractor level, we're still seeing the contractors book out there. I'd say on the low end, it's six to eight weeks. And in some areas, it's 8 to 10 weeks. In some cases, contractors feel slightly better this year than they do than they did last year.

是的。在承包商層級，我們仍看到承包商的訂單排程很滿。我會說在低端是6到8週。而在某些地區是8到10週。在某些情況下，承包商覺得今年比去年稍微好一些。

So from that perspective, we feel good. Although I think a part of that is the marketing investment. We are seeing significant double-digit growth and the leads that we're giving over to our contractors. So that also could be one of the reasons why we're seeing an extended backlog from that perspective.

所以從那個角度來看，我們感覺不錯。雖然我認為其中一部分原因是行銷投資。我們看到我們提供給承包商的潛在客戶線索（leads）出現顯著的雙位數成長。所以這也可能是我們從那個角度看到待辦量延長的原因之一。

On the capacity front, we've been very consistent saying that as we look at Little Rock and we start to look at our growth that we would be looking at opening that in the first half of 2027, where we sit at today. And even if we didn't see as much growth, Little Rock still gives us -- provides us a lot of leverage in terms of that's going to be our lowest cost facility moving forward, and we have one facility, namely here in the Winchester footprint. that's over 30 years old.

在產能方面，我們一直很一致地表示，當我們看Little Rock並開始看我們的成長時，以我們今天的位置來看，我們會在2027年上半年考慮啟用那座廠。即使我們沒有看到那麼多成長，Little Rock仍能帶給我們很大的槓桿效益，因為那將會是我們未來成本最低的廠；而我們有一座廠，也就是Winchester廠區內的那座，已經超過30年。

So what we would do is maximize in terms of our manufacturing footprint and where we need to go longer term. But our expectations are -- we expect to see some good growth in 2027 through 2030, and we're going to need all that capacity from Little Rock to Winchester to Nevada.

所以我們會做的是，從我們的製造版圖以及長期需要前往的方向來看，去把它最大化。但我們的預期是——我們預期在2027到2030年會看到不錯的成長，而我們將需要Little Rock、Winchester到Nevada的所有產能。

Okay. Great. Really helpful. And then last one for me. I guess with the introduction of your PVC product, can you guys talk a little bit about more how it's faring on a regional basis. So in the Northeast, West Coast, how the demand has been trending. And then more broadly, I think you guys had touched on a little bit Pro versus DIY. Can you talk a little bit about the higher-end luxury that still really outperforming an opening price point or any details around that?

好的。太好了。非常有幫助。然後我最後一個問題。我想隨著你們PVC產品的推出，你們能否多談一點它在各區域的表現如何。例如在東北、西海岸，需求趨勢如何。另外更廣泛地說，我想你們也稍微提到專業承包商（Pro）與DIY。能否談談仍然明顯優於入門價位帶的中高端／奢華產品，或相關細節？

Yes. So we still see outperformance on that middle to higher end consumer, which has been consistent the last several years. But Trex is really on the marketing side, putting a lot more efforts on conversion to wood. We have a new marketing campaign called No Regrets.

是的。我們仍然看到中端到高端消費者的表現更為突出，這在過去幾年一直如此。不過Trex在行銷端確實投入更多力道，推動從木材轉換到我們的產品。我們有一個新的行銷活動叫做「No Regrets」。

If you ever see it on TV, it shows the dock owner that has to do all the work around maintaining the wood versus the dock owner that has a Trex deck and it's just going to go out and go enjoy his boat for the day, which is the boat's called no regrets.

如果你在電視上看過，它呈現的是：使用木材的碼頭主人必須做很多維護工作；相對地，擁有Trex甲板的碼頭主人就可以直接出門享受一天的划船時光，而那艘船就叫做「No Regrets」。

And so it gives you a really good visual there's a lot going on from that perspective to target wood, and that's a huge focus for Trex. On the PVC front, we've had a great rollout on the West Coast. We are actually ahead of expectations on the manufacturing front. We actually are getting an increased supply from our supplier.

所以從那個角度來看，畫面感非常強，也顯示我們在鎖定木材替代方面做了很多事，這是Trex的一大重點。至於PVC方面，我們在西海岸的上市推廣進展非常順利。在製造端，我們實際上也超出預期。我們也確實從供應商那邊獲得了更多供貨。

And from that perspective, the largest market for PVC is in New England and the Mid-Atlantic and we have quickly opened up those two regions as we rolled into Q2. So we think that is a good opportunity in terms of growth. That's a $0.5 billion market when you look at the PVC market, and Trex has not played in that whatsoever. So we have plans to expand that over time and see that as a great opportunity for growth.

從這個角度來看，PVC最大的市場在新英格蘭與大西洋中部地區；隨著我們在第二季推進，我們也很快開放了這兩個區域。因此我們認為這在成長方面是一個很好的機會。以PVC市場來看，規模約為5億美元，而Trex過去完全沒有參與其中。所以我們計畫隨時間逐步擴張，並將其視為極佳的成長機會。

Rafe Jadrosich, Bank of America

Rafe Jadrosich，美國銀行

Prith, can you talk about how you think about the right level of leverage for the business, both longer term? And would you continue to open up buying back more stock as the free cash flow frees up next year?

Prith，你能談談你如何看待公司適當的槓桿水準（長期而言）嗎？另外，隨著明年自由現金流釋放，你們是否會繼續加大回購股票？

Yes. So Jafe, thanks for the question. So I think we've said this before, overall, we want to manage the company leverage between 1 times and 2 times. And so again, as Yes, as we said on the call, next -- this year, free cash flow is going to come down to -- I mean, the free cash flow is going to increase by, call it, about $100 million relative to last year.

是的。Jafe，謝謝你的問題。我想我們之前說過，整體而言，我們希望把公司的槓桿控制在1倍到2倍之間。再者，正如我們在電話會議中提到的，今年自由現金流會下降到——我是說，自由現金流相較去年將增加，大約1億美元左右。

You've already did -- we expect to complete $150 million in buyback by the end of this quarter. And then we'll look at the rest of the year. We'll look at where free cash flow is how the business is doing. And certainly, with the Board's new authorization, we have the capacity to do more buybacks.

你們已經做了——我們預期在本季結束前完成1.5億美元的回購。接著我們會看今年剩下的時間。我們會看自由現金流的狀況、業務表現如何。而且在董事會新的授權之下，我們確實有能力進行更多回購。

And right now, again, based on how we're where the stock price is relative to what we think our intrinsic value is, I think it's still a really compelling opportunity. So we'll look at that. And then, yes, going forward, we'll have even more free cash flow because we'll essentially be done with all of the capacity expansion. And so again, share buybacks will continue to be a significant part of the capital allocation going forward.

而目前，再次強調，基於股價相對於我們認為的內在價值的位置，我認為這仍是非常有吸引力的機會。所以我們會評估。另外，往後我們會有更多自由現金流，因為我們基本上將完成所有產能擴張。因此，股票回購未來仍將是資本配置中相當重要的一部分。

Great and then, Adam, just on the sort of the investment you're making. Just can you give us a little bit more color on how you think about like how that will be allocated and what the priorities are between how much of that is hiring more sales versus marketing? Can you just give us a little more color on how it will be allocated?

很好。那接著，Adam，關於你們正在進行的投資。你能否再多提供一些細節，說明你們如何思考這些資金的分配，以及在增加銷售人員與行銷之間的優先順序？能否再多談一些分配方式？

Yes. I think a bigger portion of this is going to be marketing related in the investments that we're making moving forward. So from creating awareness on whether it was linear TV to streaming to podcast to any forms you can think about out there to get the Trex name.

是的。我認為我們未來所做投資中，較大一部分會與行銷相關。也就是提升認知度，不論是傳統線性電視、串流、Podcast，或你能想到的各種形式，來讓更多人認識Trex這個品牌。

And then to drive it to trex.com there's investments on the website that we have been making from that perspective to investments on innovation. Once again, if you want game-changing innovation, you have to invest in some things from the R&D front.

然後把流量導向trex.com；在網站方面，我們也一直在做相關投資。此外也會投資在創新上。

So really, when I look at the major buckets, it's going to be marketing and innovation, and there are some investments here as we look at sales to support the strategy and the things that they have to do to execute the strategy longer term.

所以整體來看，我認為主要的兩大類會是行銷與創新；同時，隨著我們檢視銷售端，也會有一些投資，用以支持策略，以及他們為了長期執行策略所需要做的事情。

Thank you and that concludes the question-and-answer session. Now I would like to turn the floor to management for any closing comments.

謝謝，問答環節到此結束。現在我想把時間交還給管理層，請問是否有任何結語。

Thank you, everyone. Prith and I look forward to speaking to you and seeing you at the upcoming conferences in the coming weeks.

謝謝各位。Prith和我期待在接下來幾週的會議上與各位交流並見面。

Thank you. This concludes today's teleconference. Thank you for attending today's presentation. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。感謝各位參加今天的簡報。各位現在可以掛線。