UFP Industries Inc (UFPI) 2025 Q2 法說會逐字稿

Good day and welcome to the Q2 2025 UFP Industries, Inc. earnings conference call and webcast. (Operator Instructions) Please be advised that today's conference is being recorded.

大家好，歡迎參加 2025 年第二季 UFP Industries, Inc. 收益電話會議和網路廣播。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker, Mr. Stanley Elliott, Director of Investor Relations. Please go ahead.

現在，我想將會議交給發言人、投資者關係總監史丹利·艾利奧特先生。請繼續。

Good morning, everyone, and thank you for joining us this morning to discuss our second quarter results. With me on the call are Will Schwartz, our President and Chief Executive Officer; and Mike Cole, our Chief Financial Officer. Will and Mike will offer prepared remarks, and then we will open the call for questions. This conference call is available simultaneously to all interested investors and news media through the investor relations section of our website, ufpi.com. A replay of the call will be posted to our website as well.

大家早安，感謝大家今天早上加入我們討論我們的第二季業績。與我一起參加電話會議的還有我們的總裁兼執行長威爾施瓦茨 (Will Schwartz) 和我們的財務長 Mike Cole。威爾和麥克將發表準備好的發言，然後我們將開始提問。所有有興趣的投資者和新聞媒體均可透過我們網站 ufpi.com 的投資者關係板塊同時收聽本次電話會議。會議重播也將發佈在我們的網站上。

Before I turn the call over, let me remind you that yesterday's press release and presentation include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties also include, but are not limited to, those factors identified in the press release and in the company's filings with the Securities and Exchange Commission.

在轉交電話之前，請允許我提醒您，昨天的新聞稿和簡報包含 1995 年《私人證券訴訟改革法案》中定義的前瞻性聲明。這些聲明受風險和不確定性的影響，可能導致實際結果與預期有重大差異。這些風險和不確定性還包括但不限於新聞稿和公司向美國證券交易委員會提交的文件中確定的因素。

I will now turn the call over to Will.

現在我將把電話轉給威爾。

Good morning, everyone, and thank you for joining us to discuss our second quarter results. Our second quarter was largely a continuation of the conditions we saw in our first quarter, and while the market environment continues to present its challenges, I'm proud of our team's resilience and their unwavering focus on what we can control. We continue to make the necessary investments to lower our manufacturing costs, improve throughput, and improve customer service levels. We will continue to make investments to bring new products to market in areas where we have the right to win and will continue to evaluate the portfolio in ways that we can take out structural costs. All of our efforts are designed to position us to achieve our long-term strategies and deliver value to our shareholders.

大家早安，感謝大家加入我們討論第二季的業績。我們的第二季基本上延續了第一季的情況，雖然市場環境繼續面臨挑戰，但我為我們團隊的韌性和對我們能夠控制的事情的堅定關注感到自豪。我們將繼續進行必要的投資，以降低製造成本、提高產量並改善客戶服務水準。我們將繼續投資，將新產品推向我們有能力贏得的領域，並將繼續以能夠消除結構性成本的方式評估產品組合。我們所有的努力都是為了實現我們的長期策略並為股東創造價值。

Turning to the quarter. Second quarter sales matched our expectations for low single-digit unit volume declines across each segment. Pricing remains competitive given the lack of visibility and softer demand in several of our end markets. Consistent with what we discussed on our last earnings call in April, we continue to see this dynamic playing out for the remainder of the year. All of this contributed to our earnings per share of $1.70 for the quarter and adjusted EBITDA of $174 million.

轉向本季。第二季的銷售量符合我們的預期，即各部門的銷售量均呈現低個位數下降。鑑於我們多個終端市場缺乏透明度且需求疲軟，定價仍具有競爭力。與我們在四月上次收益電話會議上討論的內容一致，我們將繼續看到這種動態在今年剩餘時間內發揮作用。所有這些促成了我們本季每股收益達到 1.70 美元，調整後 EBITDA 達到 1.74 億美元。

Generally, results remain pressured from weaker demand, competitive pricing, higher input costs, and a less favorable sales mix. Southern Yellow Pine and Spruce prices were 18% and 13% higher on average for the quarter. With the exception of our site-built business, it appears that most of our business units are beginning to see a stabilization in sales and profit margins on a sequential basis. Operationally, we remain focused on maximizing capacity utilization within our existing footprint and streamlining our cost structure.

整體而言，需求疲軟、定價競爭、投入成本上升以及銷售組合不佳等因素仍對業績造成壓力。本季南方黃松和雲杉的價格平均上漲了 18% 和 13%。除我們的現場建設業務外，我們的大多數業務部門的銷售額和利潤率似乎都開始連續穩定下來。在營運方面，我們仍專注於在現有業務範圍內最大限度地提高產能利用率並精簡成本結構。

The strategic initiatives we've previously outlined, including managing our manufacturing footprint, reducing SG&A costs, and exiting underperforming businesses, are progressing well. We have made great progress on our $60 million cost-out program in our own track to realize the full savings exiting 2026. As part of this program, we recently announced plans to shift manufacturing for certain Edge products to be more efficient, which will eliminate profit losses and position us to be more competitive and profitable.

我們先前概述的策略性舉措，包括管理我們的製造足跡、降低銷售、一般及行政費用以及退出表現不佳的業務，正在順利進行。我們在 6,000 萬美元的成本削減計劃上取得了巨大進展，預計在 2026 年實現全部成本節約。作為該計劃的一部分，我們最近宣布了提高某些 Edge 產品製造效率的計劃，這將消除利潤損失並使我們更具競爭力和盈利能力。

We have also completed the divestiture of a small industrial components business and have sold or are in the process of selling certain real estate assets which could provide upwards of $15 million in one-time gains in our third quarter. These are not easy decisions, but necessary. We are also making targeted investments in areas that will drive our longer-term strategy to grow above market rates. We remain committed to our plan to invest $1 billion in growth capital over the next five years and have identified runways in each of our segments.

我們也完成了對一家小型工業零件業務的剝離，並已出售或正在出售某些房地產資產，這可能會為我們第三季帶來高達 1500 萬美元的一次性收益。這些決定並不容易，但卻是必要的。我們也正在那些能夠推動我們的長期策略實現高於市場成長速度的領域進行有針對性的投資。我們仍然致力於在未來五年內投資 10 億美元成長資本的計劃，並已確定了每個部門的發展方向。

We would prefer M&A in most cases and would be willing to pivot these investments to M&A, but only when the right opportunities materialize and valuations meet our expectations for returns. Within this framework, our commitment to innovation, automation, and expanding our value-add product offerings remains a top priority. We see promising results in our Deckorators brand with our first-of-its-kind Surestone product technology, the introduction of new products in our packaging segment and others, and we will continue to invest in these areas organically and strategic acquisitions where appropriate.

在大多數情況下，我們更傾向於併購，並且願意將這些投資轉向併購，但前提是出現合適的機會並且估值符合我們的回報預期。在此框架內，我們致力於創新、自動化和擴大增值產品供應仍然是重中之重。我們看到 Deckorators 品牌憑藉我們首創的 Surestone 產品技術、包裝領域和其他領域的新產品的推出取得了可喜的成果，我們將繼續在這些領域進行有機投資，並在適當的情況下進行策略性收購。

New product sales totaled $129 million in the quarter, or 7% of sales. We continue to see a pathway for new products to become 10% of sales over time. We are excited about the innovative products we have launched, as well as those in our pipeline.

本季新產品銷售總額為 1.29 億美元，佔銷售額的 7%。我們繼續看到新產品隨著時間的推移佔銷售額的 10%。我們對已推出的創新產品以及正在研發的產品感到非常興奮。

Last quarter, we highlighted the launch of new decking boards and trim products featuring our proprietary Surestone technology. The momentum we discussed last quarter around our Surestone products, including the launch of our summit product, continued in the quarter. On our call last quarter, we shared that we have secured 1,500 new retail locations. We continue to make progress on adding capacity to reach all of these stores ahead of the 2026 decking season.

上個季度，我們重點推出了採用我們專有的 Surestone 技術的新型裝飾板和裝飾產品。我們在上個季度討論的有關 Surestone 產品（包括我們的 Summit 產品）的勢頭在本季度得以延續。在上個季度的電話會議上，我們表示我們已經獲得了 1,500 個新的零售點。我們將繼續努力增加容量，以便在 2026 年裝飾季節到來之前覆蓋所有這些商店。

We've added new traditional two-step distribution for our Surestone decking board, as well as the pull-through from our marketing efforts and contractor support is exceeding expectations. Sales of our decking board portfolio featuring our Surestone technology increased 45% year over year. We continue to upgrade existing manufacturing lines and plan to expand capacity again later this year. Our Buffalo facility remains on track for a Q1 2026 opening, leaving us with roughly $250 million of new capacity in place for next year's decking season.

我們為 Surestone 裝飾板添加了新的傳統兩步驟分銷，而且我們的行銷工作和承包商支援所產生的效果超出了預期。採用 Surestone 技術的裝飾板產品組合的銷量同比增長了 45%。我們繼續升級現有的生產線，並計劃在今年稍後再次擴大產能。我們的布法羅工廠仍有望在 2026 年第一季開業，這將為我們明年的裝飾季節帶來約 2.5 億美元的新產能。

Our M&A pipeline remains very active with a number of strategic investment opportunities presenting themselves across the portfolio. It's no secret that activity has picked up across our space and our M&A team remains active and focused. We continue to explore deals of various sizes with a focus on how they align with our core business.

我們的併購管道仍然非常活躍，整個投資組合中都出現了許多策略性投資機會。眾所周知，我們所在領域的活動已經活躍起來，我們的併購團隊仍然保持活躍和專注。我們將繼續探索各種規模的交易，並專注於它們如何與我們的核心業務保持一致。

Our teams have prioritized capital requests with an emphasis on what will deliver the best growth, margin, and return opportunities for the business while maintaining our strong balance sheet. Our experienced management team and dedicated employees are committed to driving profitability and sustainable growth for UFP Industries. We remain confident in our long-term. Our strong balance sheet and cash flow provide us with the ability to pursue a diversified return-focused capital allocation strategy of growth, dividends, and share buybacks as a means of driving shareholder value.

我們的團隊優先考慮資本需求，並專注於如何為企業帶來最佳成長、利潤和回報機會，同時保持強勁的資產負債表。我們經驗豐富的管理團隊和敬業的員工致力於推動 UFP Industries 的獲利能力和永續成長。我們對我們的長期發展仍然充滿信心。我們強大的資產負債表和現金流使我們能夠推行以成長、股利和股票回購為重點的多元化回報資本配置策略，以此來推動股東價值。

Turning to our segments, Retail sales declined 3% from year-ago levels largely on a 7% decline in volumes. Pricing actions at the end of the first quarter contributed 4%, but the benefits to margins were largely offset by higher material costs. Part of the unit decline was from us intentionally exiting less profitable lines of business, as well as the customer shift we've previously discussed in our Deckorators business. We will start to see the anniversary of the Deckorators' customer shift in Q3, making for more favorable comparisons through the remainder of the year. Additionally, we believe the restructuring we've made at Edge and growth investments in Surestone position us well moving into next year.

談到我們的細分市場，零售額較去年同期下降 3%，主要是因為銷售量下降 7%。第一季末的定價行動貢獻了 4% 的利潤率，但利潤率的提高在很大程度上被材料成本的上升所抵消。銷售下滑的部分原因是我們有意退出利潤較低的業務線，以及我們先前在 Deckorators 業務中討論過的客戶轉變。我們將在第三季迎來 Deckorators 客戶轉變的周年紀念日，從而在今年剩餘時間內進行更有利的比較。此外，我們相信，我們在 Edge 進行的重組以及對 Surestone 的成長投資將使我們在明年取得良好的發展。

Packaging sales declined 2%, largely due to a 4% decrease in pricing. Recent acquisitions contributed 2% to the quarter, while organic sales were essentially unchanged from year-ago levels. Markets remain highly competitive, but the sales and margin declines continue to flatten out sequentially. Share gains in our PalletOne business and geographic expansion in our Protective Packaging business contributed to growth as we opened our Jeffersonville facility. In our Structural Packaging business, we continue to introduce a number of innovative and proprietary solutions, like our recently launched U-Loc 200 tool-free fastening, aimed at making our customers safer and more efficient.

包裝銷售額下降了 2%，主要是因為價格下降了 4%。最近的收購為本季貢獻了 2%，而有機銷售額與去年同期相比基本沒有變化。市場競爭依然激烈，但銷售額和利潤率的下降幅度持續趨於平緩。隨著我們開設傑斐遜維爾工廠，PalletOne 業務的份額成長和保護性包裝業務的地理擴張促進了成長。在我們的結構包裝業務中，我們不斷推出許多創新和專有解決方案，例如我們最近推出的 U-Loc 200 免工具緊固產品，旨在讓我們的客戶更安全、更有效率。

Construction sales decelerated in the quarter, along with a broader outlook for residential construction. Construction revenues declined 4% from year-ago levels on a 2% increase in volumes driven by another quarter of double-digit unit growth in our Factory Built business. This was more than offset by a 6% decline in pricing in the quarter, reflective of the competitive environment. Our Factory Built business continues to benefit from affordability versus other residential construction and favorable industry trends in the modular construction markets and in adjacent markets like RV and cargo where our new products are resonating with customers.

本季建築銷售額放緩，住宅建築前景也普遍放緩。建築收入較去年同期下降 4%，但建築量成長 2%，這得益於工廠建造業務又一個季度的兩位數增長。本季價格下降 6%，抵消了這一影響，反映了激烈的競爭環境。與其他住宅建築相比，我們的工廠建造業務繼續受益於可負擔性，以及模組化建築市場和房車和貨運等鄰近市場的良好行業趨勢，我們的新產品在這些市場中引起了客戶的共鳴。

Our Site Built business was impacted by wheat builder sentiment, a softer spring selling season, and higher inventories of new and existing homes. This dynamic has created a pause for many of our builder customers while adding a competitive dynamic price to the marketplace. Infrastructure and data center projects have been a bright spot for our concrete forming business, which saw double-digit volume increases.

我們的現場建造業務受到小麥建築商情緒、春季銷售疲軟以及新房屋和現有房屋庫存增加的影響。這種動態為我們的許多建築商客戶帶來了停頓，同時也為市場增加了具有競爭力的動態價格。基礎設施和資料中心專案一直是我們混凝土成型業務的亮點，其銷售量實現了兩位數的成長。

Turning to our outlook, we expect the business conditions that impacted our first half of the year results will carry over for the remainder of 2025. News around duties on Canadian lumber and other tariffs has only created additional headwinds. That said, we still believe we are uniquely positioned given the natural hedge of our portfolio between fixed and variable-priced lumber products.

談到我們的展望，我們預計影響我們上半年業績的商業環境將持續到 2025 年剩餘時間。有關加拿大木材關稅和其他關稅的消息只會帶來更多阻力。儘管如此，我們仍然相信，鑑於我們的投資組合在固定價格和浮動價格木材產品之間的自然對沖，我們處於獨特的地位。

From an impact standpoint, we'd note that the industry imports less than 20% of lumber from Canada. We'd also note that Southern Yellow Pine is domestically produced and represents roughly two-thirds of our fiber purchases. Historically, periods of higher lumber prices have generally led to higher levels of profitability as we use our scale to buy lumber better than our peers.

從影響的角度來看，我們注意到該行業從加拿大進口的木材不到 20%。我們也注意到，南方黃松是國產的，約占我們纖維採購量的三分之二。從歷史上看，木材價格較高的時期通常會帶來更高的盈利水平，因為我們利用規模比同行更好地購買木材。

All of this uncertainty is contributing to a lack of visibility beyond the first half of 2025. Regardless of the outcome, we remain confident in our ability to navigate any potential tariff impacts. Longer term, we are well positioned to take advantage of favorable trends across many of our growth runways. We remain committed to our long-term targets. One, 7%-to-10%-unit growth. Two, 12.5% EBITDA margins. Three, maintain our strong return on capital profile. And four, maintain our conservative capital structure.

所有這些不確定性導致2025年上半年後的情況缺乏可預見性。無論結果如何，我們仍然有信心應對任何潛在的關稅影響。從長遠來看，我們已做好準備，充分利用眾多成長管道中的有利趨勢。我們仍然致力於我們的長期目標。一、單位成長7%至10%。二、EBITDA利潤率12.5%。三、保持強勁的資本報酬率。第四，維持我們保守的資本結構。

Before I close, I want to thank our 15,000-plus employees for their hard work and their commitment. I always say, tough times, tougher people. The uncertain times will pass, and we will come out on the other side stronger.

最後，我要感謝我們 15,000 多名員工的辛勤工作和奉獻精神。我總是說，艱難的時刻，更強壯的人。不確定的時期將會過去，我們將會變得更強大。

And with that, I'll turn it over to Mike.

現在，我將把話題交給麥克。

Thank you, Will. Net sales for our June quarter were $1.8 billion, down 3.5% from $1.9 billion last year. Results were driven by a 3% decline in units and a 1% decline in pricing with recent acquisitions providing a modest offset. The decline in selling prices primarily resulted from weaker demand we've seen in the past few quarters, which has led to more competitive pricing in our site-built, structural packaging and PalletOne business units when comparing year-over-year results. These headwinds resulted in a 15% decline in our adjusted EBITDA to $174 million, while adjusted EBITDA margin fell to 9.5% from 10.7% a year ago.

謝謝你，威爾。我們六月當季的淨銷售額為 18 億美元，較去年的 19 億美元下降 3.5%。業績下滑主要因為銷量下降 3% 和價格下降 1%，但近期的收購起到了一定抵銷作用。銷售價格下降主要是因為過去幾季我們看到的需求較弱，與去年同期相比，這導致我們的現場建造、結構包裝和 PalletOne 業務部門的定價更具競爭力。這些不利因素導致我們的調整後 EBITDA 下降 15% 至 1.74 億美元，而調整後 EBITDA 利潤率從一年前的 10.7% 下降至 9.5%。

Pricing and cost pressure as well as lower volumes weighed on profitability this quarter. It's worth noting that $28 million of the $50 million decline in our gross profit was due to lower volume and price competition in our site-built business unit as macro conditions continue to weigh on new housing starts. Even with these headwinds, our trailing 12-month return on invested capital remained resilient at 15%, which remains well ahead of our weighted average cost of capital. We believe this highlights the strong returns our business can achieve even when faced with challenging market conditions.

定價和成本壓力以及銷售下降影響了本季的獲利能力。值得注意的是，我們的毛利下降了 5000 萬美元，其中 2800 萬美元是由於宏觀環境繼續對新屋開工造成壓力，導致我們的現場建造業務部門的產量和價格競爭下降。即使面臨這些不利因素，我們過去 12 個月的投資資本回報率仍保持 15% 的強勁水平，遠高於我們的加權平均資本成本。我們相信，這凸顯了我們的業務即使在面臨嚴峻的市場條件下也能取得豐厚的回報。

Operating cash flow was $113 million for the year and includes a seasonal increase in our net working capital of $166 million we expect will convert to cash by the end of the third quarter. We also expect approximately $40 million of cash flow benefits from the Big Beautiful bill in the back half of the year as a result of bonus depreciation, the ability to expense certain construction costs associated with manufacturing facilities and the ability to expense R&D costs. Bottom line, our balance sheet remains strong, providing us with ample flexibility to pursue our financial and strategic objectives as we move through 2025 and beyond.

全年營運現金流為 1.13 億美元，其中包括淨營運資本的季節性增加 1.66 億美元，我們預計該金額將在第三季末轉換為現金。我們還預計，由於獎金折舊、與製造設施相關的某些建設成本的費用化能力以及研發成本的費用化能力，今年下半年 Big Beautiful 法案將帶來約 4,000 萬美元的現金流收益。總而言之，我們的資產負債表依然強勁，為我們在 2025 年及以後追求財務和策略目標提供了充足的靈活性。

Moving on to our segments. Sales in our Retail segment were $788 million, a 3% decline compared to last year due to a 7% decline in unit sales, offset by a 4% increase in price. By business unit, we experienced a 7% unit decrease in ProWood and a 3% decline in Deckorators. The decline in ProWood volume is primarily due to softer demand as a result of higher interest rates and weaker consumer sentiment as well as our ongoing efforts to exit lower-margin product lines. Within our Deckorators business unit, our sales of railings declined 25% and wood/plastic composite decking was flat, while Surestone composite decking increased over 45%.

繼續討論我們的部分。我們零售部門的銷售額為 7.88 億美元，與去年相比下降 3%，原因是單位銷售額下降 7%，但價格上漲 4% 抵消了下降。按業務部門劃分，ProWood 的銷量下降了 7%，Deckorators 的銷量下降了 3%。ProWood 銷售量的下降主要是因為利率上升和消費者信心減弱而導致需求疲軟，以及我們持續努力退出低利潤產品線。在我們的 Deckorators 業務部門中，欄桿銷售額下降了 25%，木/塑複合地板銷售額持平，而 Surestone 複合地板銷售額增長了 45% 以上。

Our railing sales declined due to the loss of placement with a large retail customer, which also impacted our wood/plastic composite decking volumes. However, we gained market share with another major retailer and initial stocking orders from this retailer for our Surestone decking and stronger demand from the Pro channel has provided an offset. This shift positions us for a modest market share gain in 2025 as we add capacity to supply approximately 1,500 stores by 2026. We expect to realize the full benefit of this share gain in 2026 and remain focused on our long-term goal to double our composite decking and railing market share over the next 5 years.

由於失去大型零售客戶的青睞，我們的欄桿銷售量下降，也影響了我們的木/塑膠複合材料地板的銷售量。然而，我們從另一家大型零售商那裡獲得了市場份額，並且該零售商對我們的 Surestone 裝飾板的初始庫存訂單以及來自 Pro 管道的更強勁的需求提供了補償。這一轉變使我們在 2025 年的市場份額將略有增加，因為我們到 2026 年將增加供應能力，為約 1,500 家門市供貨。我們預計在 2026 年實現這一份額增長的全部效益，並繼續專注於我們的長期目標，即在未來 5 年內將我們的複合材料地板和欄桿市場份額翻一番。

Our year-over-year gross profits and gross margins in retail declined primarily due to lower volumes, higher material and manufacturing costs for composite decking and operational challenges in our Edge manufacturing locations. As we indicated last quarter, composite decking material and manufacturing costs are expected to improve with the new more efficient manufacturing lines we're installing. And we're taking the necessary actions to close our 2 Bonner manufacturing facilities in 2025. These closures are expected to improve operating profits by $16 million in 2026.

我們的零售毛利和毛利率年減，主要原因是產量下降、複合材料地板的材料和製造成本上升以及 Edge 製造工廠面臨的營運挑戰。正如我們上個季度所指出的，隨著我們安裝新的更有效率的生產線，複合材料和製造成本預計會有所改善。我們正在採取必要措施，計劃於 2025 年關閉位於邦納的 2 家製造工廠。預計這些工廠的關閉將使 2026 年的營業利潤增加 1,600 萬美元。

For clarity, the business conducted out of our Bonner trim plant will be transitioned to other existing facilities to create efficiencies and lower our cost structure, and we're exiting the coated siding business conducted out of the second facility, which has been difficult to scale. We anticipate these actions will result in between $15 million and $17 million of impairment and other onetime costs in Q3.

為了清楚起見，我們在邦納裝飾工廠開展的業務將轉移到其他現有設施，以提高效率並降低成本結構，並且我們將退出在第二家工廠開展的塗層壁板業務，因為該業務難以擴大規模。我們預計這些行動將導致第三季產生 1500 萬至 1700 萬美元的減損和其他一次性成本。

Operating profits in retail declined by $6 million as a result of the decline in gross profit, offset by a $7 million decrease in SG&A. Looking forward, the continued enhancement and resiliency of our ProWood business, growth trajectory and margin potential of our Deckorators business and restructuring of our Edge business provide optimism for improved results in 2026.

由於毛利下降，零售業務的營業利潤下降了 600 萬美元，但銷售、一般及行政費用 (SG&A) 下降了 700 萬美元，抵消了這一下降。展望未來，我們 ProWood 業務的持續增強和彈性、Deckorators 業務的成長軌跡和利潤潛力以及 Edge 業務的重組為 2026 年業績的改善帶來了樂觀。

Moving on to Packaging. Sales in this segment declined 2% to $429 million, consisting of a 4% decrease in selling prices and 2% unit growth from recent acquisitions. Customer demand in this segment remains soft and pricing remains competitive, but we continue to gain share with key customers. We also had an unfavorable change in product mix this quarter as our largest and most profitable business unit, Structural Packaging, declined 2% in volume due to soft demand, while our Protective Packaging and PalletOne businesses saw 8% and 5% unit growth, respectively.

繼續進行包裝。該部門的銷售額下降 2% 至 4.29 億美元，其中包括銷售價格下降 4% 和近期收購導致的單位成長 2%。該領域的客戶需求仍然疲軟，價格仍然具有競爭力，但我們繼續從主要客戶那裡獲得份額。本季我們的產品結構也發生了不利變化，我們最大、最賺錢的業務部門結構包裝由於需求疲軟而銷量下降了 2%，而我們的保護性包裝和 PalletOne 業務的銷量分別增長了 8% 和 5%。

As a result of these factors, year-over-year gross profits dropped by $13 million for the quarter. Encouragingly, sequential gross profit trends suggest results may have stabilized, offering some cautious optimism for 2026. Operating profits in the Packaging segment declined by $3 million to a total of $26 million for the quarter due to the decrease in gross profits as SG&A was $10 million lower than last year.

由於這些因素，本季毛利年減了 1,300 萬美元。令人鼓舞的是，連續的毛利趨勢表明業績可能已經穩定，為 2026 年帶來了一些謹慎的樂觀情緒。由於銷售、一般及行政費用比去年低 1,000 萬美元，導致毛利下降，本季包裝部門的營業利潤下降 300 萬美元至 2,600 萬美元。

Turning to Construction. Sales in this segment declined 4% to $552 million as a 6% decline in selling prices was partially offset by a 2% increase in units. The overall unit increase was due to significant volume increases in our factory-built, commercial and concrete forming business units. These increases were partially offset by a 7% unit decline in our site-built business as demand for housing remains challenged due to affordability and sentiment. As a result, the market environment in our Site-Built business remains competitive, which continues to pressure pricing as we protect our market share.

轉向建築。該部門銷售額下降 4% 至 5.52 億美元，因為銷售價格下降 6% 但被銷售成長 2% 部分抵銷。整體產量的成長是由於我們的工廠建造、商業和混凝土成型業務部門的產量大幅增加。由於負擔能力和情緒因素導致住房需求仍面臨挑戰，我們的現場建造業務單位下降了 7%，部分抵消了這些成長。因此，我們的現場建設業務的市場環境仍然競爭激烈，這在我們保護市場份額的同時繼續給定價帶來壓力。

Gross profit in the segment decreased by $25 million year over year due entirely to our Site Built business unit. The decline in gross margin in the segment is due to these factors as well as the less favorable change in sales mix as Site Built has historically been our largest, most profitable business unit. Our operating profits declined by $16 million to a total of $36 million for the quarter as a result of the decrease in gross profit, offset by a $10 million reduction in SG&A.

該部門的毛利年減了 2500 萬美元，這完全是由於我們的現場建設業務部門所致。該部門毛利率的下降是由於這些因素以及銷售組合的不利變化造成的，因為 Site Built 歷來是我們規模最大、利潤最高的業務部門。由於毛利下降，本季我們的營業利潤下降了 1,600 萬美元，至 3,600 萬美元，但銷售、一般及行政費用 (SG&A) 減少了 1,000 萬美元。

As we manage through this cycle, we're focused on maintaining the right balance between cost discipline and advancing our long-term objectives. That means ensuring the company is appropriately sized relative to current demand while continuing to invest in the resources needed to drive growth, expand market share, further product innovation, strengthen brand awareness and improve operational efficiency through technology.

在我們管理這個週期的過程中，我們專注於在成本控制和推進我們的長期目標之間保持適當的平衡。這意味著確保公司規模相對於當前需求適當，同時繼續投資於推動成長、擴大市場份額、進一步進行產品創新、加強品牌知名度和透過技術提高營運效率所需的資源。

Our consolidated SG&A expenses declined $18 million for the quarter due to a $16 million decrease in bonuses and sales incentives and a $2 million reduction in our core SG&A. It's important to note that our core SG&A includes a $6 million increase in Deckorators advertising costs associated with our Surestone technology. Looking forward, we've targeted an annual run rate of EBITDA improvements from cost and capacity reductions of $60 million in 2026.

由於獎金和銷售獎勵減少 1600 萬美元以及核心銷售、一般和行政費用減少 200 萬美元，本季我們的合併銷售、一般和行政費用下降了 1800 萬美元。值得注意的是，我們的核心銷售、一般及行政費用包括與我們的 Surestone 技術相關的 Deckorators 廣告成本增加 600 萬美元。展望未來，我們的目標是到 2026 年，透過降低成本和削減產能，實現 EBITDA 的年增長率達到 6,000 萬美元。

Our plan for SG&A expenses next year, excluding highly variable sales and bonus incentives tied to profitability, is $554 million. This is $10 million lower when compared with 2024 and is comprised of $30 million of anticipated cost reductions, offset by a $20 million increase in our Deckorators advertising spend as we invest in building the Surestone brand.

我們明年的銷售、一般及行政費用計劃（SG&A）為 5.54 億美元，不包括與盈利能力掛鉤的變動很大的銷售額和獎金激勵。與 2024 年相比，這一數字降低了 1000 萬美元，其中包括 3000 萬美元的預期成本削減，但由於我們投資打造 Surestone 品牌，Deckorators 廣告支出增加了 2000 萬美元，這一數字被抵消了。

In addition to the SG&A cost reductions, we've taken actions to reduce and consolidate capacity at locations that don't meet our profitability targets. We anticipate these actions will have a favorable impact on our gross profits totaling approximately $13 million in 2025. And as I previously mentioned, the closure of our Bonner facilities and transfer of business to other locations is expected to eliminate operating losses totaling $16 million in 2026. Based on the actions we've taken to date and opportunities for continued improvement, we think we're well positioned to achieve or exceed our goal of $60 million in cost outs by the end of 2026.

除了降低銷售、一般及行政費用 (SG&A) 之外，我們還採取措施減少和整合未達到盈利目標的地區的產能。我們預計這些舉措將對我們 2025 年總計約 1,300 萬美元的毛利產生有利影響。正如我之前提到的，關閉我們的邦納工廠並將業務轉移到其他地點預計將在 2026 年消除總計 1,600 萬美元的營運損失。根據我們迄今為止採取的行動和持續改進的機會，我們認為我們有能力在 2026 年底前實現或超過 6000 萬美元的成本支出目標。

Moving on to our cash flow statement. Our operating cash flow was $113 million for the year and includes $166 million of seasonal net working capital that we expect to convert to cash by the end of Q3. The strength of our cash flow generation and balance sheet have allowed us to continue to invest in growing the business while also being more aggressive on share buybacks. Our investing activities included $130 million in capital expenditures, comprising $48 million in maintenance CapEx and $82 million of expansionary CapEx.

繼續我們的現金流量表。我們全年的營運現金流為 1.13 億美元，其中包括 1.66 億美元的季節性淨營運資本，我們預計到第三季末將轉換為現金。我們強勁的現金流產生和資產負債表使我們能夠繼續投資於業務成長，同時更積極地回購股票。我們的投資活動包括 1.3 億美元的資本支出，其中包括 4,800 萬美元的維護資本支出和 8,200 萬美元的擴張資本支出。

As a reminder, our expansionary investments are primarily focused on 3 key areas: expanding our capacity to manufacture new and value-added products, geographic expansion in core higher-margin businesses and achieving efficiencies through automation. Investing activities also include 2 small acquisitions, a wood packaging manufacturer located in Mexico that allows us to strengthen our business with certain multinational customers and a supplier to the manufactured housing, RV and cargo markets whose location is complementary to our existing footprint and allows us to execute strategies to reduce our operating costs while providing additional capacity for growth. Finally, our financing activities primarily consisted of returning capital to shareholders through almost $42 million in dividends and $261 million in share repurchases.

提醒一下，我們的擴張性投資主要集中在三個關鍵領域：擴大我們製造新產品和增值產品的能力、核心高利潤業務的地域擴張以及透過自動化提高效率。投資活動還包括兩次小型收購，一次是位於墨西哥的木質包裝製造商，這使我們能夠加強與某些跨國客戶的業務，另一次是活動房屋、房車和貨運市場的供應商，其位置與我們現有的業務佈局相輔相成，使我們能夠實施降低運營成本的戰略，同時提供額外的增長能力。最後，我們的融資活動主要包括透過近 4,200 萬美元的股利和 2.61 億美元的股票回購向股東返還資本。

Turning to our capital structure and resources. We continue to have a strong balance sheet with $842 million in cash and total liquidity of $2.1 billion. Our liquidity includes cash and amounts available to borrow under our long-term lending agreements. With respect to capital allocation, we remain committed to a balanced and return-driven approach. As we've discussed in the past, our highest priority for capital allocation is to drive organic and inorganic growth that results in higher margins and returns.

轉向我們的資本結構和資源。我們的資產負債表依然強勁，現金達 8.42 億美元，總流動資金達 21 億美元。我們的流動性包括現金和根據長期貸款協議可藉入的金額。在資本配置方面，我們仍然致力於平衡和回報驅動的方法。正如我們過去所討論的，我們資本配置的首要任務是推動有機和無機成長，從而帶來更高的利潤率和回報。

Our strategy also includes growing our dividends in line with our long-term anticipated free cash flow growth and repurchasing our stock to offset dilution from share-based compensation plans. We'll continue to opportunistically buy back more stock when we believe it's trading at a discounted value. With these points in mind, our Board approved a quarterly dividend of $0.35 a share to be paid in August, representing a 6% increase from the rate paid a year ago.

我們的策略還包括根據長期預期的自由現金流成長增加股息，並回購股票以抵銷股權激勵計畫的稀釋。當我們認為股票交易價格處於折扣價時，我們將繼續擇機回購更多股票。考慮到這些因素，我們的董事會批准在 8 月支付每股 0.35 美元的季度股息，比一年前支付的股息增加 6%。

Last April, our Board approved an incremental $100 million to our previously existing share repurchase authorization, bringing the total to $300 million. As of July 25, 2025, there have been 2.6 million shares repurchased for almost $270 million at an average price of $103.55 under this authorization. Last week, our Board of Directors approved a new $300 million authorization that will be effective through the end of July 2026.

去年 4 月，董事會批准在原有股票回購授權基礎上增加 1 億美元，使總額達 3 億美元。截至 2025 年 7 月 25 日，根據該授權，已回購 260 萬股，總價值近 2.7 億美元，平均價格為 103.55 美元。上週，我們的董事會批准了一項新的 3 億美元授權，有效期至 2026 年 7 月底。

With regard to capital expenditures, we currently plan to spend approximately $300 million to $325 million for the year. Finally, we continue to pursue a pipeline of M&A opportunities that are a strong strategic fit while providing higher margin return and growth potential. As we pursue these opportunities, we'll remain disciplined on valuation.

關於資本支出，我們目前計劃今年支出約 3 億至 3.25 億美元。最後，我們將繼續尋求一系列具有強大策略契合度且能提供更高利潤回報和成長潛力的併購機會。當我們尋求這些機會時，我們將保持對估值的嚴謹態度。

I'll finish with comments about our outlook. Our outlook remains unchanged from last quarter. We continue to expect low single-digit unit declines across our segments through year-end, reflecting ongoing soft end market demand and competitive pricing pressures. As expected, Site Built is experiencing more pronounced headwinds, though strength in factory built is helping to offset some of that pressure.

最後，我將對我們的前景發表一些評論。我們的展望與上一季相比保持不變。我們預計，到年底，我們各部門的銷售量仍將出現低個位數下滑，這反映了持續的軟端市場需求和競爭性定價壓力。正如預期的那樣，現場建造正面臨更明顯的阻力，儘管工廠建造的強勁勢頭有助於抵消部分壓力。

We remain focused on gaining share in each business unit to help mitigate volume declines and support overall results. To navigate the current environment, we're taking action to reduce costs, rightsize capacity and exit underperforming or noncore businesses while positioning the company to deliver above-market growth and margin expansion as market conditions normalize.

我們仍然專注於在每個業務部門獲得份額，以幫助緩解銷售下降並支持整體業績。為了因應當前環境，我們正在採取行動降低成本、調整產能、退出表現不佳或非核心業務，同時隨著市場條件恢復正常，使公司實現高於市場的成長和利潤率的擴大。

With that, we'll open it up for questions.

接下來，我們將開始回答問題。

(Operator Instructions) Kurt Yinger, D.A. Davidson.

（操作員指示）Kurt Yinger，D.A. Davidson。

I was just hoping to maybe unpack the sequential improvement in construction gross margins a bit. I know you talked about on a year-over-year basis, site built accounting for all of the decline in gross profit. But I guess, was that business additive to the 60 kind of basis point improvement versus Q1? Or is that entirely driven by factory build and Commercial and Concrete forming?

我只是希望能夠稍微解釋一下建築業毛利率的連續改善。我知道您談到了與去年同期相比，網站建設是導致毛利全部下降的原因。但我猜，與第一季相比，這項業務是否增加了 60 個基點的改善？或者這完全是由工廠建設和商業及混凝土成型所驅動的？

Mike, do you want to hit that?

麥克，你想打那個嗎？

Yes, happy to. Site Built had a very challenging quarter, Kurt. So I think the year-over-year decline was $28 million. Looking from Q1 to Q2, there was still -- there was volume pickups that benefited Site Built, but there's still price pressure that was coming through. So any improvement there was just simply due to seasonality, I think, in the concrete forming and commercial side as well as performance in factory built.

是的，很高興。Site Built 經歷了一個非常具有挑戰性的季度，庫爾特。所以我認為年減幅度是 2800 萬美元。從第一季到第二季來看，銷量有所回升，這對 Site Built 有利，但價格壓力仍然存在。因此，我認為，任何改進都只是由於季節性因素，包括混凝土成型和商業方面以及工廠建造的性能。

So yes, Site Built we -- and we expect that trend to continue with Site Built through the balance of the year with where demand seems to be. We expect continued pricing pressure and for that to be a headwind for volume and pricing for the balance of the year, really.

是的，我們預計 Site Built 的趨勢將持續到今年年底，因為需求似乎還在增加。我們預計價格壓力將持續存在，這實際上將成為今年剩餘時間銷售和價格的阻力。

Okay. And is that something -- you alluded to it in the prepared remarks in terms of kind of the natural hedging across the business around lumber pricing fluctuations. And historically, you guys have done a really good job managing through that. But is this kind of a unique environment where that poses more of a risk than we've seen in the past, just given what you've alluded to in terms of competitive pressures?

好的。這是什麼——您在準備好的發言中提到過，關於木材價格波動的整個業務的自然對沖。從歷史上看，你們在管理這一問題上做得非常好。但是，考慮到您所提到的競爭壓力，這是否是一種獨特的環境，它帶來的風險比我們過去所見的要大？

Yes. I think if you look at that, Kurt, certainly, with the demand environment being weak and the pressures there, there's no question it's a little harder to pass those along specifically in that area. So yes, I think you're fair in asking that question.

是的。庫爾特，我認為如果你看一下這一點，當然，由於需求環境疲軟且存在壓力，毫無疑問，在那個領域將這些壓力傳遞出去會有些困難。是的，我認為你問這個問題是公平的。

Okay. Okay. Perfect. Switching gears to Deckorators. I guess when you talk about kind of a modest market share gain for this year, should we interpret that as kind of slight positive sales growth versus a market you expect to be flat? Or I guess, how would you kind of have us frame what that means from an overall sales perspective?

好的。好的。完美的。切換到 Deckorators。我想，當您談到今年市場份額的適度增長時，我們是否應該將其解釋為銷售額略有增長，而不是您預期的市場持平？或者我想，你會讓我們如何從整體銷售角度來解釋這代表什麼？

Yes. Certainly, we expect market growth, modest. We've talked about the switch in customer mix. So first half of the year, there was some offset there that should be more -- should be closer for the back half of the year with that transition. That side, the decking market for us, we've seen improvement, and we expect to continue that market share gain in the back half especially on the side.

是的。當然，我們預期市場將溫和成長。我們已經討論過客戶結構的變化。因此，今年上半年，有一些抵消，隨著這種轉變，下半年應該會更接近。對我們來說，在那方面，我們已經看到了裝飾市場的成長，我們預計在下半年，尤其是在側面，市場份額將繼續增長。

Right, right. I mean the 45% increase, very impressive. I thought it was also interesting that the wood/plastic composite side was flat despite the shelf space kind of shifts there. Can you maybe help us understand what drove the offset on the wood/plastic composite side? And then also help us think about of the Surestone gains, how much of that was the stocking benefits versus maybe what you're seeing on kind of the traditional pro dealer space?

對，對。我的意思是 45% 的成長，非常令人印象深刻。我認為有趣的是，儘管架子空間有所移動，但木質/塑膠複合材料的一面卻是平的。您能否幫助我們了解木材/塑膠複合材料偏移的原因？然後也請幫我們思考 Surestone 的收益，其中有多少是庫存收益，而您可能在傳統的專業經銷商領域看到了這些收益？

Yes. So I think it's twofold. I think you've really got to highlight the internal distribution piece. We've talked about that a lot. Our ability to distribute through our Pro wood facilities and we're winning share. Secondarily, if you go over to the Surestone side, it's a pretty good mix between the retail component, but as well as through the distribution component.

是的。所以我認為這是雙重的。我認為你確實必須強調內部分佈部分。我們已經討論過很多次了。我們有能力透過我們的專業木材設施進行分銷，並且我們正在贏得市場份額。其次，如果你看一下 Surestone 方面，你會發現它的零售部分和分銷部分的組合非常好。

We're seeing wins in both places. And as we continue to ramp up that production and that store count, you'll continue to see that grow. I think you can't lose sight either the fact that we -- this is the first year we really had a marketing campaign like we do. And so we're seeing the returns on that marketing campaign.

我們在兩個地方都看到了勝利。隨著我們繼續提高產量和增加商店數量，您將繼續看到這一增長。我認為你也不能忽視這樣一個事實──這是我們第一次真正進行這樣的行銷活動。因此我們看到了該行銷活動的回報。

Reuben Garner, Benchmark.

魯本·加納，基準。

Will, that marketing campaign that you mentioned, is that still geared towards the contractors? Or has the kind of lower price point Surestone technology enabled or pushed you guys to market more directly to the consumer?

威爾，您提到的行銷活動仍然針對承包商嗎？或者說，Surestone 技術的較低價格是否促使你們更直接地向消費者推銷產品？

Yes. Good question. It's really driven this year towards the consumer. We've got to really explain the value in that technology and what makes that product different. And so when you see those advertisements, you really start to see the benefits that are associated with that technology. That's where that marketing campaign is focused for this year. So it really hits both.

是的。好問題。今年我們的重點確實放在了消費者身上。我們必須真正解釋該技術的價值以及該產品的不同之處。因此，當您看到這些廣告時，您就會真正開始看到與該技術相關的好處。這就是今年行銷活動的重點。所以它確實對兩者都有影響。

Got it. And then on the packaging side, I think you said that all businesses ex Site Built were kind of either showing signs of stabilization or improvement. sequentially. Can you talk specifically about what you're seeing in packaging? Any signs of acceleration there at all just in the end market overall? I know it's been a challenging couple of years.

知道了。然後在包裝方面，我認為您說過，除 Site Built 之外的所有業務都顯示出穩定或改善的跡象。能具體談談您在包裝方面看到的情況嗎？整個終端市場有加速的跡象嗎？我知道這幾年充滿挑戰。

Yes. I wouldn't call any signs of improvement. But certainly, sequentially, it feels like we found stabilization. So I wouldn't highlight it as improving. It's still a very difficult market, a competitive market. And so that's the best way I can describe it at this point. I'd love to tell you that it's improving, but I think it's just stabilized, which is good to see.

是的。我不認為有任何改善的跡象。但可以肯定的是，從連續來看，我們感覺找到了穩定。所以我不會強調它有進步。這仍然是一個非常困難、競爭激烈的市場。這就是目前我能描述的最好的方式。我很想告訴你它正在改善，但我認為它只是穩定下來，這很好。

Okay. And I'm going to sneak one more in. Just a clarification on site built. So I think you did say pricing and profitability and I don't know about demand because of the seasonal aspect, but I think you said that it was kind of still under pressure sequentially. Where does all of that stand relative to like pre-2020? Like have we round trips back to the previous highs in pricing and profitability? Are they under pressure relative to that? Like how does it look relative to previous cycles?

好的。我還要偷偷再放一個進去。僅對現場建造進行澄清。所以我認為你確實提到了定價和盈利能力，我不知道由於季節性因素的需求情況，但我認為你說過它仍然處於連續壓力之下。與 2020 年之前相比，這一切處於什麼位置？就像我們是否已經回到了之前的價格和盈利能力的高點？他們是否面臨與此相關的壓力？與之前的周期相比它看起來怎麼樣？

Yes. I think that pricing is -- and margins, I guess, in particular, have largely normalized and come under a little more pressure than what we were seeing pandemic more recently now, driven.

是的。我認為定價——尤其是利潤率——基本上已經正常化，承受的壓力比我們最近看到的疫情期間的壓力要大一些。

Ketan Mamtora, BMO Capital Markets.

Ketan Mamtora，BMO 資本市場。

Maybe just continuing on site built. The margin pressure that you are seeing, the competitive market backdrop, I know you had mentioned that last quarter, we saw a big step down from Q4 2024 into first quarter of 2025. Have those kind of competitive dynamics stabilized as we've gone through second quarter and into third quarter? Or did we see sort of another leg down given what the homebuilders are telling us?

也許只是繼續在現場建造。您所看到的利潤壓力、競爭激烈的市場背景，我知道您上個季度提到過，我們看到從 2024 年第四季到 2025 年第一季出現了大幅下滑。隨著我們進入第二季和第三季度，這種競爭態勢是否已經穩定下來？或者，根據房屋建築商告訴我們的情況，我們是否看到了另一個下滑趨勢？

Mike, do you want to hit that?

麥克，你想打那個嗎？

Yes, sure. Yes, volumes have moved up, as you'd expect from Q1 to Q2. So that's provided a benefit. But we have had more pricing pressure from Q1 to Q2. So when I look at the sequential bridge there in gross profits, there's still some pricing challenges from Q1 to Q2. And that's what we expect to continue through the balance of the year.

是的，當然。是的，正如您預期的那樣，從第一季到第二季度，交易量有所上升。所以這就帶來了好處。但從第一季到第二季度，我們面臨的定價壓力更大。因此，當我查看毛利的連續變化時，我發現從第一季到第二季仍然存在一些定價挑戰。我們預計今年餘下時間這種情況將持續下去。

But yes, going back to Reuben's last question, this feels like we're into a down cycle. We haven't found the bottom yet, I don't think, on site built probably. But the good news is once this does normalize, we do expect that EBITDA margins, gross margins will improve in future years once demand rebounds.

但是的，回到魯本的最後一個問題，感覺我們正進入一個下行週期。我認為我們還沒有找到底部，可能是現場建造的。但好消息是，一旦這種情況恢復正常，我們預計，一旦需求反彈，未來幾年的 EBITDA 利潤率和毛利率將會提高。

Understood. Okay. That's helpful. And then just switching to lumber. And here in the last few years, you guys have done a phenomenal job of kind of managing the volatility. We have duties on lumber outside of what happens with tariffs, but just these lumber duties are going to go up meaningfully here in the next several weeks. How are you sort of positioning yourself? And I know that's only on what comes from Canada. But I'm just curious, how are you positioning yourself just as a large lumber buyer?

明白了。好的。這很有幫助。然後就轉向木材了。在過去的幾年裡，你們在管理波動性方面做得非常出色。除了關稅之外，我們還對木材徵收關稅，但僅這些木材關稅就將在未來幾週內大幅上漲。您如何定位自己？我知道這只涉及來自加拿大的產品。但我很好奇，作為一個大型木材買家，您如何定位自己？

Yes, good question. And I would remind you that's a small component of the total spend and what we bring in. Most of our purchases are domestic. And I would tell you that a lot of products, if those things come into play, we'll continue to look for opportunities to convert some of those products to domestic species. I think the hardest place and where most of the Canadian product is -- goes in is certainly to the site built and to the construction arena. And those -- that's the most difficult arena we're in today or a segment or a business unit.

是的，好問題。我要提醒你們，這只是我們總支出和收入的一小部分。我們的採購大部分都是國內的。我想告訴你們，如果這些因素發揮作用，很多產品我們都會繼續尋找機會將其中一些產品轉化為國內品種。我認為最困難的地方以及大多數加拿大產品進入的地方肯定是建造工地和建築領域。而這些——是我們今天所處的最困難的領域、最細分的領域或最業務部門。

And so I feel good about our ability to pass those along for the most part. I think we'll be able to utilize some of our manufacturing abilities domestically as well as some of the switch in sourcing to offset a lot of that, but we'll see how that shakes out exactly.

因此，我對我們能夠將這些大部分傳遞下去的能力感到很滿意。我認為我們將能夠利用我們在國內的一些製造能力以及一些採購轉換來抵消其中的大部分影響，但我們將拭目以待具體效果如何。

Got it. And then just one last one from my side on capital allocation, pretty meaningful pickup in share repurchases this year. So I'm just curious, as you look at the different options that you have and clearly, you've got a very strong balance sheet, can you talk to sort of the options in terms of whether it is M&A or kind of share repurchases? How should we think about it in terms of kind of back half and into 2026?

知道了。最後，就資本配置而言，我想說的是，今年股票回購的數量顯著增加。所以我很好奇，當你看到你擁有的不同選擇時，顯然你的資產負債表非常強勁，你能否談談這些選擇，無論是併購還是股票回購？我們該如何看待下半年和 2026 年的情況？

You want to hit that, Mike?

你想打那個嗎，麥克？

Yes, sure. Happy to. Yes. So Ketan, I think we've been pretty consistent in our philosophy. So we've always preferred to grow. And so I think the capital investment, reaffirming what we plan to do on capital investments, what we want to do with M&A, that's our target first to be able to use capital and invest it in those areas. If M&A isn't there, we have the opportunity, I think, to invest several hundred million to $1 billion, I guess, if you look at each segment and trying to strengthen the core businesses there.

是的，當然。很開心。是的。所以 Ketan，我認為我們的理念是相當一致的。所以我們一直都希望能成長。因此，我認為資本投資，重申我們計劃在資本投資方面做什麼，我們想透過併購做什麼，這是我們的目標，首先能夠利用資本並將其投資於這些領域。如果沒有併購，我認為，如果你專注於每個部分並試圖加強那裡的核心業務，我們就有機會投資幾億到 10 億美元。

So we have a lot of capital we can deploy. But if the opportunities don't present themselves, if the multiples are too high, share buybacks is a great avenue, particularly at the current price, we feel like it's trading at a discount to intrinsic value. So that's been our approach, and we won't waver from that. We're going to continue to be return-driven, and we'll continue to be patient waiting for those opportunities to present themselves.

因此我們擁有大量可供部署的資本。但如果機會不出現，如果市盈率太高，股票回購是一個很好的途徑，特別是在當前價格下，我們覺得它的交易價格低於內在價值。這就是我們的做法，我們不會動搖。我們將繼續以回報為導向，並繼續耐心等待這些機會的出現。

Jeff Stevenson, Loop Capital.

傑夫史蒂文森，Loop Capital。

You reported a nice sequential improvement in Deckorators sales benefiting from the low end or the load-in of your new Summit decking product in 1,500 stores. And I wondered whether the load-in is largely complete here in the second quarter and how much will spill into the back half of the year?

您報告稱，由於 1,500 家商店中低端或新款 Summit 裝飾產品的入駐，Deckorators 的銷售額連續良好增長。我想知道第二季的裝載量是否基本完成，以及有多少裝載量會延續到下半年？

And then on top of that, whether you've seen any changes in underlying composite decking demand or bidding activity due to macroeconomic uncertainty or have sell-through demand trends remain largely stable?

除此之外，您是否看到由於宏觀經濟不確定性導致的複合地板需求或投標活動發生變化，或者銷售需求趨勢基本上是否保持穩定？

Yes, Jeff, to answer your first question, the store count, the load-in that we talked about really remained unchanged in Q2. I'd say what I would call a difficult time to do a swap out in the stores. That's the selling season. That could be very disruptive. And so the store count that we talked about at the end of Q1, approximately 400 out of the 1,500 remains fairly unchanged. The majority of that and the remainder of that number really takes place in the back half of the year. That coincides with the capital investment that we talked about, the additional capacity coming online. So really, you'll see that.

是的，傑夫，回答你的第一個問題，我們談到的商店數量、裝載量在第二季度確實保持不變。我想說，在商店裡進行換貨現在是困難時期。那是銷售季節。這可能會造成很大的破壞。因此，我們在第一季末談到的門市數量，1,500 家門市中大約有 400 家基本上保持不變。其中大部分以及剩餘的部分實際上都發生在下半年。這與我們談到的資本投資、新增產能上線相吻合。所以實際上你會看到這一點。

And our target date is really to have ourselves prepared and ready for that 2026 decking selling season. We'll be on shelf and ready to go. So that's the first question. I think the second part of your question really comes back to that we're really seeing a divide. You've got your affluent customer, you've got your average consumer. And so really, the composite decking space is winning in that. That affluent customer continues to spend and grow and really it's the average consumer that's downgrading or choosing to not participate or delay a project. So really, that space has been really good, and we continue to grab that market share.

我們的目標日期實際上是為 2026 年的裝飾銷售季節做好準備。我們將上架並準備出發。這是第一個問題。我認為你問題的第二部分實際上是我們確實看到了分歧。你有富裕的客戶，也有一般消費者。因此，複合地板領域確實正在獲勝。富裕的客戶繼續消費和成長，而實際上普通消費者正在降級或選擇不參與或推遲專案。所以實際上，那個領域非常好，我們將繼續搶佔那個市場份額。

That's great to hear. And then I wanted to ask about the share gain opportunity step distribution for Deckorators. Obviously, the retail wins have gotten most of the attention, but I just wanted to talk about the opportunity to expand your partnerships of distribution driven by your increased investments and improving brand awareness and capacity, new product introductions and then potential benefits of industry consolidation.

聽到這個消息真是太好了。然後我想問 Deckorators 的股票報酬機會步驟分佈。顯然，零售方面的勝利得到了最多的關注，但我只想談談透過增加投資、提高品牌知名度和產能、推出新產品以及行業整合帶來的潛在利益來擴大分銷合作夥伴關係的機會。

Yes, twofold. So -- and we've kind of hit on that in the past. Some of the competition uses that and blocks out space, and that's been one of the question marks, how do we get our product to market. We're winning. And I would tell you the Surestone technology, the marketing campaign is certainly resonating and opening doors for us. But I cannot highlight enough in markets that we don't have a distribution partner that works well to get to those markets, that internal distribution piece, we continue to invest and expand, and that's growing rapidly. So it's twofold for us.

是的，雙重的。所以——我們過去也曾考慮過這個問題。一些競爭對手利用這一點並封鎖了空間，而這一直是個問號，我們如何將我們的產品推向市場。我們正在勝利。我想告訴你，Surestone 技術的行銷活動確實引起了共鳴並為我們打開了大門。但我不能過度強調，在市場上我們沒有一個能夠很好地進入這些市場的分銷合作夥伴，對於內部分銷部分，我們將繼續投資和擴張，並且正在快速成長。所以這對我們來說是雙重的。

Jay McCanless, Wedbush.

傑伊麥坎利斯，韋德布希。

Will, if you don't mind repeating what you said about Southern Yellow Pine, I think you said roughly that's two-third of your all's fiber purchase. And could you maybe talk about that other one-third and what type of -- if there are higher duties imposed with the new softwood agreement, what that's going to look like for UFP.

威爾，如果你不介意重複你對南方黃鬆的評價，我想你大概說過這佔了你所有纖維購買量的三分之二。您能否談談另外三分之一以及如果新軟木協定徵收更高的關稅，這對 UFP 來說意味著什麼？

Yes. So you hit the number right. That's about two-third of our purchases. And 75% of our purchases are domestically sourced. So in addition to that. So you've got approximately 25% that are import products. Obviously, Spruce has highlighted right now and then some of the other smaller but important items also come from other places around the globe, Brazil included. We're working very hard to look at alternatives where those duties could come into play or tariffs and what we could substitute move to other species that wouldn't be affected. So all those things are in play right now.

是的。所以你猜對了。這大約占我們購買量的三分之二。我們的採購中有 75% 都來自國內。除此之外。因此大約有 25% 是進口產品。顯然，Spruce 現在已經強調了其他一些較小但重要的物品也來自全球其他地方，包括巴西。我們正在努力尋找替代方案，在這些方案中，這些關稅可以發揮作用，我們可以將替代品轉移到不會受到影響的其他物種。所以所有這些事情現在都在發揮作用。

Okay. That's great. The second question I had, it's great to hear the concrete forming benefited from some of the data center build-out we've all been hearing about. But is there any concern that some of those data centers might not happen? And what -- how are you all thinking about that business can continue to put up the same level of growth in the near term?

好的。那太棒了。我的第二個問題是，很高興聽到混凝土成型受益於我們都聽說過的一些資料中心的建設。但是否有人擔心其中一些資料中心可能不會建成？那麼——你們都認為該業務在短期內能否繼續維持同樣的成長水準？

Yes. We're confident in the infrastructure growth and feel like we're well positioned, the value-added solutions we provide. We think we're in a great space to win. We continue to build out the footprint of ability to get to those markets. Not overly concerned about that because it's a small component of a much bigger business. So that's one little piece.

是的。我們對基礎設施的成長充滿信心，並認為我們處於有利地位，能夠提供增值解決方案。我們認為我們有很大機會獲勝。我們將繼續擴大進入這些市場的能力範圍。對此並不太擔心，因為這只是一個更大企業的一小部分。這只是一小部分。

Okay. And then, Mike, I wanted to -- that's good to hear on the depreciation side, the benefits that UFP is getting there. But I also wonder, is this may be an opportunity with all these new pretty expanded 179 deduction for packaging potentially to see an uptick in business just as people try to go spend this year and take advantage of that business. You're all seeing any early signs of that?

好的。然後，麥克，我想——很高興聽到關於折舊方面以及 UFP 所獲得的好處。但我也想知道，這是否是一個機會，所有這些新的、相當擴大的 179 項包裝扣除可能會帶來業務的成長，就像人們試圖在今年消費並利用這項業務一樣。你們都看到任何早期跡象了嗎？

Not seeing any signs impacting our sales levels yet, Jay. So nice to see -- be able to see the cash flow pick up for us in the back half of the year. But maybe at some point, we would expect it to impact demand, but not seeing anything like that yet.

傑伊，目前還沒有看到任何影響我們銷售水平的跡象。很高興看到——我們下半年的現金流有所回升。但也許在某個時候，我們預計它會影響需求，但目前還沒有看到類似的事情。

I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Will Schwartz for any closing remarks.

目前隊列中沒有其他問題。現在我想將電話轉回給威爾·施瓦茨先生，請他做最後發言。

Thank you to those joining us on the call for your time today. Despite this tough macro environment, we remain committed to our long-term goals for greater operational efficiency and to bring new high-value products to market. Most importantly, thanks to the hard work of the UFP team members who make these goals possible. Have a great day.

感謝各位今天抽空參加我們的電話會議。儘管宏觀環境嚴峻，我們仍然致力於實現我們的長期目標，即提高營運效率並向市場推出新的高價值產品。最重要的是，感謝 UFP 團隊成員的辛勤工作，是他們讓這些目標成為可能。祝你有美好的一天。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。