Worthington Enterprises Inc (WOR) 2026 Q1 法說會逐字稿

Good morning, and welcome to the Worthington Enterprises first quarter fiscal 2026 earnings conference call. (Operator Instructions) This conference is being recorded at the request of Worthington Enterprises. If anyone objects, you may disconnect at this time.

早安，歡迎參加沃辛頓企業 2026 財年第一季財報電話會議。（操作員指示）本次會議是應沃辛頓企業的要求錄製的。如果有人反對，此時你可以斷開連線。

I'd now like to introduce Marcus Rogier, Treasurer and Investor Relations Officer. Mr. Rogier, you may begin.

現在我想介紹財務主管兼投資者關係長 Marcus Rogier。羅吉爾先生，您可以開始。

Thank you, Rob. Good morning, everyone, and thank you for joining us for Worthington Enterprises first quarter fiscal 2026 earnings call. On the call today are Joe Hayek, our President and Chief Executive Officer; and Colin Souza, our Chief Financial Officer.

謝謝你，羅布。大家早安，感謝您參加沃辛頓企業 2026 財年第一季財報電話會議。今天參加電話會議的有我們的總裁兼執行長喬·海耶克 (Joe Hayek) 和我們的財務長 Colin Souza。

Before we begin, I'd like to remind everyone that certain statements made during today's call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For more information on these risks and uncertainties, please refer to our earnings release issued yesterday after the market closed, which is available on the Investor Relations section of our website.

在我們開始之前，我想提醒大家，今天電話會議上做出的某些陳述具有前瞻性，並受風險和不確定性的影響，可能導致實際結果與明示或暗示的結果有重大差異。有關這些風險和不確定性的更多信息，請參閱我們昨天收盤後發布的收益報告，該報告可在我們網站的投資者關係部分找到。

Additionally, our remarks today will include references to non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures can also be found in the earnings release. Today's call is being recorded, and a replay will be available later on our website at worthingtonenterprises.com.

此外，我們今天的評論將包括對非公認會計準則財務指標的引用。在收益報告中也可以找到這些指標與最直接可比較的 GAAP 指標的對帳。今天的電話會議正在錄音，稍後將在我們的網站 worthingtonenterprises.com 上提供重播。

With that, I'll turn the call over to Joe for opening remarks.

說完這些，我會把電話交給喬來致開幕詞。

Thank you, Marcus, and good morning, everyone. Welcome to Worthington Enterprises fiscal 2026 first quarter earnings call. We had a very solid start to our fiscal year due to the collective efforts of our teams, and I want to start by saying thank you to all my colleagues for their dedication to each other, our company, our customers and our shareholders.

謝謝你，馬庫斯，大家早安。歡迎參加沃辛頓企業 2026 財年第一季財報電話會議。由於我們團隊的共同努力，我們的財政年度有一個非常良好的開端，首先我要感謝所有同事對彼此、對公司、對客戶和對股東的奉獻。

In the quarter, we delivered strong year-over-year growth in sales, adjusted EBITDA and earnings per share. Our sales in Q1 were up 18% over last year and up 10% year-over-year, excluding sales from recently acquired Elgen.

本季度，我們的銷售額、調整後 EBITDA 和每股盈餘均實現了強勁的年成長。不包括最近收購的 Elgen 的銷售額，我們第一季的銷售額比去年同期成長了 18%，比去年同期成長了 10%。

The gross margin was 27.1% in Q1 versus 24.3% last year. This improvement is after the adverse impact of a $2.2 million purchase accounting charge related to inventory acquired from Elgen. Adjusted EBITDA margin in the quarter was 21.4% versus 18.8% in Q1 a year ago.

第一季毛利率為 27.1%，去年同期為 24.3%。這項改善是在從 Elgen 收購的庫存產生的 220 萬美元採購會計費用的不利影響之後發生的。本季調整後的 EBITDA 利潤率為 21.4%，而去年第一季為 18.8%。

I said this related to our Q4 results when we were together in June, but our results in Q1 again reflect our strategy and action. Despite numerous headwinds, including cautious consumers and a hot summer that impacted after activities, and tariff costs and high interest rates that are impacting residential and commercial repair remodeling and construction activity, we grew our year-over-year adjusted EBITDA by 34%.

我在 6 月我們在一起時說過這與我們第四季度的業績有關，但我們第一季的業績再次反映了我們的策略和行動。儘管面臨許多不利因素，包括謹慎的消費者和影響後續活動的炎熱夏季，以及影響住宅和商業維修改造和建築活動的關稅成本和高利率，但我們的調整後 EBITDA 同比增長了 34%。

Our SG&A expenses were $4.5 million in the quarter, but flat excluding the addition of Elgen despite our organic growth in sales and gross profit. As we continue our efforts to optimize our current businesses and grow Worthington, we do so not just the Steward and Worthington proud history, but as drivers of innovation and strategies that will power our future.

本季我們的銷售、一般及行政費用為 450 萬美元，但不包括 Elgen 的增加，儘管我們的銷售額和毛利實現了有機增長，但費用仍持平。在我們繼續努力優化現有業務並發展沃辛頓的過程中，我們這樣做不僅是為了延續 Steward 和 Worthington 引以為傲的歷史，而且是為了推動我們未來的創新和策略。

We're committed to building a sustainable growth platform, and we will continue to leverage the Worthington Business System and its three growth drivers, innovation, transformation and acquisitions to maximize both our near and long-term success.

我們致力於建立永續成長平台，並將繼續利用沃辛頓商業系統及其三大成長動力——創新、轉型和收購，最大限度地實現我們的近期和長期成功。

We've generated tremendous momentum with new product launches, including the Balloon Time Mini, AQL refrigerant cylinders and new Halo grids. These new products are enabling us to take market share, grow new markets and win new customers. The transformation efforts continue to be driven by value stream analysis, automation and new ways of thinking. But our goals do not change, we prioritize safety, asset utilization and cost optimization.

我們透過推出新產品創造了巨大的發展勢頭，包括 Balloon Time Mini、AQL 冷媒氣瓶和新型 Halo 網格。這些新產品使我們能夠佔領市場份額、拓展新市場並贏得新客戶。價值流分析、自動化和新思維方式繼續推動轉型工作。但我們的目標不會改變，我們優先考慮安全、資產利用和成本優化。

The ongoing 80/20 initiatives in our water business is having a positive impact, and we're planning for additional 80/20 work streams in other areas of our business. We believe our culture is a differentiator, and we're focused on acquiring companies with great teams that have developed sustainable competitive advantages in niche markets. Our acquisition of Elgen in June is an example of that.

我們在水務業務中正在實施的 80/20 措施正在產生積極影響，我們計劃在其他業務領域開展更多的 80/20 工作流程。我們相信我們的文化是一種差異化因素，我們專注於收購擁有優秀團隊並在利基市場中形成可持續競爭優勢的公司。我們六月收購 Elgen 就是一個例子。

We're pleased with our integration of Elgen thus far, and we're excited about its growth prospects. That team has embraced our safety culture, and we're focused on capturing synergies and pursuing growth opportunities in multiple areas.

到目前為止，我們對 Elgen 的整合感到滿意，並對其成長前景感到興奮。團隊已經接受了我們的安全文化，我們專注於抓住協同效應並在多個領域尋求成長機會。

Last June, we acquired Ragasco, a pioneer and world leader in lightweight composite LPG cylinders. Ragasco recently celebrated 25 years in business and is manufactured and sold over 25 million cylinders into over 100 countries around the world. The people, culture and ongoing initiatives around safety, innovation and quality are second to none. We're very happy with their part of Worthington and a group of us is looking forward to celebrating with that team in person in Norway next week.

去年六月，我們收購了輕質複合液化石油氣瓶領域的先驅和全球領導者 Ragasco。Ragasco 最近慶祝了公司成立 25 週年，該公司生產並向全球 100 多個國家銷售了超過 2500 萬個氣瓶。圍繞安全、創新和品質的人員、文化和持續措施都是首屈一指的。我們對他們在沃辛頓的角色感到非常高興，我們一群人期待下週在挪威親自與該團隊一起慶祝。

Earlier in September, we published our second sustainability report at Worthington Enterprises, and the content of that report makes us proud. For instance, we continue to outperform our industry benchmarks and safety with a total incident case rate 40% lower than our peers.

9月初，我們在沃辛頓企業發布了第二份永續發展報告，報告的內容令我們感到自豪。例如，我們的整體事故發生率比同業低 40%，繼續超越行業基準和安全水準。

We're constantly trying to improve and in fiscal '25, we renamed our safety culture at Live Safe. It is based on proactive mindsets, processes and actions that ensure our teams can be the best version of themselves at work and at home.

我們一直在努力改進，並在 25 財年將我們的安全文化重新命名為 Live Safe。它是基於積極主動的思維方式、流程和行動，確保我們的團隊在工作和家庭中都能展現出最好的自己。

While many of our end markets continue to face headwinds, we're performing very well and believe our best days are ahead of us. Leveraging our people-first performance-based culture, market-leading brands, a start-up mindset -- the Worthington business system and our strong balance sheet, we will continue to improve everyday life by elevating spaces and experiences in a way that creates meaningful value for our employees, customers and investors.

儘管我們的許多終端市場繼續面臨逆風，但我們的表現非常好，並且相信我們最好的日子就在眼前。利用我們以人為本、基於績效的文化、市場領先的品牌、創業思維——沃辛頓業務系統和強大的資產負債表，我們將繼續透過提升空間和體驗來改善日常生活，為我們的員工、客戶和投資者創造有意義的價值。

I will now turn it over to Colin, who will take you through some details related to our financial performance in the quarter.

現在我將把時間交給科林，他將向您介紹我們本季財務表現的一些細節。

Thank you, Joe, and good morning, everyone. We delivered strong financial results in Q1, getting our fiscal year off to a solid start. On a GAAP basis, we reported earnings of $0.70 per share compared to $0.48 per share in the prior year quarter. The current quarter included pretax restructuring and other expenses of $2 million or $0.04 per share compared to similar charges of $0.02 per share from the prior year quarter.

謝謝你，喬，大家早安。我們在第一季取得了強勁的財務業績，為我們的財政年度開了個好頭。根據 GAAP 計算，我們報告的每股收益為 0.70 美元，而去年同期的每股收益為 0.48 美元。本季包括稅前重組和其他費用 200 萬美元或每股 0.04 美元，而去年同期的類似費用為每股 0.02 美元。

Excluding these items, adjusted earnings were $0.74 per share, up from $0.50 per share in the prior year quarter. Q1 also included a onetime pretax purchase accounting charge of $2.2 million related to the stepped-up value of inventory at Elgen, which negatively impacted profitability in the quarter.

不包括這些項目，調整後每股收益為 0.74 美元，高於去年同期的每股 0.50 美元。第一季還包括與 Elgen 庫存價值增加相關的 220 萬美元的一次性稅前購買會計費用，這對本季度的盈利能力產生了負面影響。

Consolidated sales for the quarter were $304 million, up 18% compared to $257 million in the prior year quarter. The increase was primarily driven by higher volumes in our Building Products segment along with the inclusion of Elgen, which contributed $21 million following its acquisition in June.

本季綜合銷售額為 3.04 億美元，較去年同期的 2.57 億美元成長 18%。這一成長主要得益於我們建築產品部門銷售的增加以及 Elgen 的加入，Elgen 在 6 月被收購後貢獻了 2,100 萬美元。

Gross profit increased significantly to $82 million, up from $62 million with gross margin expanding approximately 280 basis points to 27.1% and despite the $2.2 million purchase accounting charge at Elgen.

毛利從 6,200 萬美元大幅增加至 8,200 萬美元，毛利率擴大約 280 個基點至 27.1%，儘管 Elgen 產生了 220 萬美元的採購會計費用。

Adjusted EBITDA for the quarter was $65 million, up from $48 million in Q1 of last year and adjusted EBITDA margin in the quarter was 21.4% compared to 18.8% in the prior year quarter. On a trailing 12-month basis, adjusted EBITDA now stands at $280 million with a TTM adjusted EBITDA margin of 23.3%.

本季調整後 EBITDA 為 6,500 萬美元，高於去年第一季的 4,800 萬美元；本季調整後 EBITDA 利潤率為 21.4%，而去年同期為 18.8%。在過去 12 個月中，調整後的 EBITDA 目前為 2.8 億美元，TTM 調整後的 EBITDA 利潤率為 23.3%。

Turning to our cash flow and capital allocation. We continue to invest in our operations while maintaining a disciplined and balanced approach. During the quarter, we invested $13 million in capital expenditures, including $9 million related to our ongoing facility modernization projects.

轉向我們的現金流和資本配置。我們繼續對我們的營運進行投資，同時保持嚴謹和平衡的態度。本季度，我們投資了 1300 萬美元的資本支出，其中包括與我們正在進行的設施現代化項目相關的 900 萬美元。

We also returned capital to shareholders, paying $9 million in dividends and repurchasing 100,000 shares of our common stock for $6 million at an average price of $62.59 per share. Our joint ventures provided $36 million in dividends, representing a 100% cash conversion rate on equity income, Cash flow from operations for the quarter was $41 million, and free cash flow was $28 million.

我們也向股東返還了資本，支付了 900 萬美元的股息，並以每股 62.59 美元的平均價格回購了 100,000 股普通股，總價值為 600 萬美元。我們的合資企業提供了 3,600 萬美元的股息，相當於股權收入的 100% 現金轉換率，本季經營現金流為 4,100 萬美元，自由現金流為 2,800 萬美元。

On a trailing 12 month basis, free cash flow totaled $156 million, representing a 94% free cash flow conversion rate relative to our adjusted net earnings. As a reminder, this figure includes elevated capital expenditures related to our facility modernization projects, which totaled $29 million over the same period. We have approximately $35 million of modernization spend remaining with the majority expected to be completed during fiscal 2026 and capital expenditures returning to more normalized levels thereafter. As that spend tapers down, we expect to see further improvement in free cash flow conversion over time.

在過去 12 個月中，自由現金流總計 1.56 億美元，相對於我們的調整後淨收益，自由現金流轉換率為 94%。提醒一下，這個數字包括與我們的設施現代化項目相關的增加的資本支出，同期總計 2900 萬美元。我們剩餘的現代化支出約為 3500 萬美元，其中大部分預計將在 2026 財年完成，此後資本支出將恢復到更正常的水平。隨著支出逐漸減少，我們預期自由現金流轉換將隨著時間的推移而進一步改善。

Turning to our balance sheet and liquidity. We closed the quarter with $306 million in long-term funded debt carrying an average interest rate of 3.6% and $167 million in cash. Our leverage remains extremely low with ample liquidity supported by a $500 million undrawn credit facility.

轉向我們的資產負債表和流動性。本季末，我們的長期融資債務為 3.06 億美元，平均利率為 3.6%，現金為 1.67 億美元。我們的槓桿率仍然非常低，並有 5 億美元未提取的信貸額度支持充足的流動性。

Net debt at quarter end was $139 million resulting in a net debt to trailing adjusted EBITDA ratio of approximately a half turn. Yesterday, our Board of Directors declared a quarterly dividend of $0.19 per share payable in December 2025.

季末淨負債為 1.39 億美元，導致淨負債與調整後 EBITDA 比率約為半倍。昨天，我們的董事會宣布季度股息為每股 0.19 美元，將於 2025 年 12 月支付。

Let me now turn to our segment performance, where both businesses delivered results -- solid results to start the fiscal year. In Consumer Products, sales in Q1 were $119 million up 1% compared to the prior year quarter as a favorable shift in product mix was mostly offset by lower volumes.

現在讓我來談談我們的分部業績，兩個業務部門都取得了業績——在財年伊始取得了穩健的業績。在消費品方面，第一季的銷售額為 1.19 億美元，較去年同期成長 1%，因為產品結構的有利轉變大部分被銷售下降所抵銷。

Adjusted EBITDA was $16 million with a 13.6% margin compared to $18 million and 15.1% in Q1 last year. The year-over-year decline was primarily driven by lower gross margin due to tariff charges and lower volumes. The broader consumer environment remains cautious and demand continues to be closely correlated to point-of-sale activity.

調整後的 EBITDA 為 1,600 萬美元，利潤率為 13.6%，而去年第一季的 EBITDA 為 1,800 萬美元，利潤率為 15.1%。年比下降主要是由於關稅費用和銷量下降導致毛利率下降。更廣泛的消費環境仍然謹慎，需求繼續與銷售點活動密切相關。

That said, our brands are strong, our channels are stable and our products are not large ticket items. They are affordable, essential and play a meaningful role in elevating everyday experiences around outdoor living, celebration and home improvement. We're proud of how our consumer products team continues to perform and deliver value for customers despite macro headwinds.

也就是說，我們的品牌強大，我們的通路穩定，我們的產品不是高價商品。它們價格實惠、必不可少，在提升戶外生活、慶祝活動和家居裝修的日常體驗方面發揮著重要作用。儘管面臨宏觀經濟逆風，我們的消費品團隊仍能繼續表現出色並為客戶提供價值，我們對此感到自豪。

Looking ahead, we believe the business is well positioned to benefit as consumer sentiment improves and demand returns to more normalized levels, supported by our market-leading brands, strong customer relationships and a transformational mindset.

展望未來，我們相信，隨著消費者情緒的改善和需求恢復到更正常的水平，在我們市場領先的品牌、牢固的客戶關係和轉型思維的支持下，我們的業務將處於有利地位，可以從中受益。

In Building Products, Q1 sales grew 32% year-over-year to $185 million, up from $140 million in the prior year quarter. Growth was driven by higher volumes and contributions from Elgen, which closed in June and contributed $21 million in sales for Q1. Excluding Elgen, net sales were up 17%, reflecting continued strength in our cooling and construction products where we are supporting the refrigerant industry's transition to more environmentally friendly refrigerants, along with growth in our heating and cooking products, where we've enhanced our capacity and throughput as a result of the facility modernization investments made over the last year.

建築產品方面，第一季銷售額年增 32%，達 1.85 億美元，高於去年同期的 1.4 億美元。成長主要得益於 Elgen 銷量的增加和貢獻，Elgen 於 6 月關閉，為第一季貢獻了 2,100 萬美元的銷售額。不包括 Elgen 的產品，淨銷售額增長了 17%，反映了我們製冷和建築產品的持續強勁增長，我們正在支持製冷劑行業向更環保的製冷劑過渡，同時我們的供暖和烹飪產品也實現了增長，由於去年我們對設施現代化進行了投資，我們的產能和產量得到了提高。

Adjusted EBITDA for the quarter was $58 million with an adjusted EBITDA margin of 31.3% compared to $40 million and 28.4% in Q1 last year. The improvement was primarily driven by volume growth in our wholly owned businesses, along with a modest year-over-year increase in equity income. Elgen's contribution to adjusted EBITDA was nominal as expected due to the previously mentioned nonrecurring purchase accounting charge. Wave delivered another solid performance, contributing $32 million in equity earnings, up from $28 million in the prior year quarter.

本季調整後 EBITDA 為 5,800 萬美元，調整後 EBITDA 利潤率為 31.3%，而去年第一季分別為 4,000 萬美元和 28.4%。這項成長主要得益於我們全資業務的銷售成長，以及股權收入的年比小幅成長。由於前面提到的非經常性購買會計費用，Elgen 對調整後 EBITDA 的貢獻如預期般微不足道。Wave 再次取得了穩健的業績，貢獻了 3,200 萬美元的股權收益，高於去年同期的 2,800 萬美元。

[Bar feature] operating in a more challenging environment, delivered a respectable $6 million in equity earnings compared to $9 million last year. The Building Products team is executing well and continues to do a great job delivering value-added and innovative solutions for our customers.

[Bar feature] 在更具挑戰性的環境中運營，實現了可觀的 600 萬美元股權收益，而去年為 900 萬美元。建築產品團隊表現良好，並繼續為我們的客戶提供增值和創新的解決方案。

We're also very pleased with our integration efforts thus far at Elgen. We remain excited about the potential growth at Elgen and believe their capabilities strengthen our presence in commercial HVAC and broaden our reach within the building envelope.

我們對 Elgen 迄今為止的整合工作也感到非常滿意。我們仍然對 Elgen 的潛在成長感到興奮，並相信他們的能力將增強我們在商業暖通空調領域的地位，並拓寬我們在建築圍護結構內的影響力。

At this point, we're happy to take any questions.

現在，我們很樂意回答任何問題。

(Operator Instructions) Kathryn Thompson, TRG.

（操作員指示）凱瑟琳·湯普森，TRG。

I just have a couple of operational at a bigger picture question. For your wholly owned building product segment, margins again were up in the quarter. I know that, that's an initiative that you've been working on. But could you help us understand the what drove the margin in the quarter and really kind of the glide path of where you see they're going and what would be a normalized level based on your current portfolio?

我只是有幾個關於更大範圍的操作問題。對於您全資擁有的建築產品部門，本季利潤率再次上升。我知道，這是你一直在努力的舉措。但是，您能否幫助我們了解本季利潤率的推動因素以及您認為利潤率的真正下滑路徑，以及根據您目前的投資組合，正常化程度是多少？

Sure, Kathryn. It's Joe. In building products, excluding Worthington (technical difficulty) I've no doubt that you or somebody else will get to those. But it's really a story of really nice execution in markets that are normalizing and normalize. We look at -- we had really solid growth in our heating and cooking business and really solid growth in our cooling and construction business as well.

當然，凱瑟琳。我是喬。在產品製造方面，除了沃辛頓（技術難題）之外，我毫不懷疑你或其他人會解決這些問題。但這確實是一個在日益正常化的市場中執行得非常好的故事。我們看到—我們的暖氣和烹飪業務實現了真正穩健的成長，我們的冷氣和建築業務也實現了真正穩健的成長。

The water business also improved the only business that was flattish was our European business, and that has more to do with some big orders and the general economic environment in Europe. When we look at building products, we've talked about, I think EBITDA margin for the one businesses was 10.5% this quarter. We've talked about that getting over time, upwards to sort of 12%-ish, 13% not right away, but that's the trend that we continue to see we're still a little seasonal, right?

水務業務也有所改善，唯一持平的是我們的歐洲業務，這與一些大訂單和歐洲的整體經濟環境有關。當我們查看建築產品時，我們已經討論過，我認為本季該業務的 EBITDA 利潤率為 10.5%。我們已經討論過，隨著時間的推移，這一比例會上升到 12% 左右，但不會馬上達到 13%，但這是我們繼續看到的趨勢，我們仍然有點季節性，對吧？

And when it's cold, there are more things going on. But it's really a credit to those teams. In fact, last week for the first time in six years, we had all-employee banquet and awards where we got together to celebrate some service anniversaries and some MVPs both on the personal side. But we gave away the first John H. McConnell Philosophy Award, and we gave that and drove this award to be given to a team or a group or a facility that went above and beyond in our fiscal year. Related to safety and performance and really made a difference getting more towards our first corporate goal, which is to earn money for our shareholders and increase the value of their investment.

天氣寒冷時，就會發生更多的事情。但這確實對這些團隊來說是一種榮譽。事實上，上週我們六年來第一次舉辦了全員宴會和頒獎典禮，大家聚在一起慶祝一些禮拜週年紀念日和一些個人方面的 MVP。但是我們頒發了第一屆約翰·H·麥康奈爾哲學獎，我們將該獎項頒發給在我們的財政年度中表現超乎尋常的團隊、團體或機構。與安全和性能相關，並且確實使我們更加接近我們的首要企業目標，即為股東賺錢並增加他們的投資價值。

And we were very, very happy to give that award to our facility in Paducah, Kentucky. That's fewer than 100 people. They made 900,000 A2 refrigerant cylinders last year, triple, almost triple what they did the year before. And so it's those kinds of market-driven opportunities that we're trying really hard to take advantage of, and that's what you're really seeing a lot of momentum in building products.

我們非常高興將該獎項授予位於肯塔基州帕迪尤卡的工廠。人數不到100人。他們去年生產了 90 萬個 A2 冷媒鋼瓶，是前一年產量的三倍，幾乎是前一年產量的三倍。因此，我們正在努力利用這些市場驅動的機會，這也是我們在產品建置中真正看到的巨大動力。

That's helpful. Shifting to Wave another great quarter and still up $30 million in terms of contribution. Touched again on the drivers for this outperformance? And is this a level to be expected for the next -- for out quarters?

這很有幫助。轉向 Wave 又是一個出色的季度，貢獻仍然高達 3000 萬美元。再次談到這次優異表現的驅動因素嗎？這是下一季預期的水平嗎？

Yes, Kathryn, this is Colin. So again, we continue to perform very well up year-over-year in terms of equity contribution for us and down slightly from Q4 for us. Q4 and Q1, those are their stronger quarters. But overall, within the business, their end markets, in particular, when they serve areas like education, health care, transportation, data centers, those are still very healthy very strong and offsetting some of the weakness in areas like office and in retail.

是的，凱瑟琳，這是科林。因此，就股權貢獻而言，我們的表現繼續保持良好，同比增長，但與第四季度相比略有下降。第四季和第一季是他們表現較強的季度。但總體而言，在業務範圍內，他們的終端市場，特別是當他們服務於教育、醫療保健、交通、資料中心等領域時，這些市場仍然非常健康，非常強勁，抵消了辦公室和零售等領域的一些疲軟。

And you know waves operating model and how they go to market, and it's really driving value to contractors and really working hard to take labor time and ultimately cost out of the equation for those installs, and they do that extremely, extremely well, and they continue to show value to those customers and it flows through to their performance. So steady as she goes with -- in terms of wave and how they're going to perform. We're very happy with how that's going so far.

你知道 Waves 的營運模式以及他們如何進入市場，它確實為承包商帶來了價值，並且非常努力地減少安裝過程中的人工時間和最終成本，他們在這方面做得非常非常好，並且他們繼續向這些客戶展示價值，並將其轉化為他們的業績。因此，她表現得非常穩定——就波浪和表演而言。我們對目前的進展感到非常滿意。

Okay. And then a final question. -- This is the bigger picture question. So Worthington is often the only domestic manufacturer of some of your product lines. And tariffs are complicating the supply chain this year. And theoretically, Worthington should be in a better position relative to competitors with that domestic manufacturing footprint.

好的。然後是最後一個問題——這是一個更大的問題。因此，沃辛頓通常是你們某些產品線的唯一國內製造商。今年的關稅使供應鏈變得更加複雜。從理論上講，沃辛頓憑藉其國內製造業務，應該比競爭對手處於更有利的地位。

In the last quarter, you touched briefly on having more conversations with customers, but it's difficult to quantify. Can you give an update on how that dynamic is progressing? Are there any further wins that where they can tie that to tariffs and just broader implications going forward?

在上個季度，您簡要地提到了與客戶進行更多對話，但這很難量化。您能否介紹一下這動態的最新進展？他們是否能取得進一步的勝利，將其與關稅和更廣泛的影響聯繫起來？

Thanks, Kathryn. It's Joe. I'll take a shot at it and certainly Colin at in. Yes, tariffs are complex for everybody, and they have multiple touch points for us in our consumer business, where we have some of those tools that are manufactured for us we had to effectively write a check for a couple of million dollars in the quarter to hopeful [Sam]. But as you point out, in a lot of our business, some in consumer and a lot within Building Products, we are the primary or only domestic manufacturer for those products, and we compete with imports.

謝謝，凱瑟琳。我是喬。我會試試，當然科林也會。是的，關稅對每個人來說都很複雜，而且在我們的消費者業務中，關稅對我們來說有多個接觸點，我們有一些為我們製造的工具，我們必須在本季度有效地開出幾百萬美元的支票，希望[薩姆]。但正如您所指出的，在我們的許多業務中，有些是消費品，很多是建築產品，我們是這些產品的主要或唯一的國內製造商，我們與進口產品競爭。

And so having a more level playing field with respect to pricing is helpful. And we've always prided ourselves on trying to be commercially excellent and trying to be really easy to do business with. And so we have absolutely had and continue to have good conversations with our customers domestically. Our supply chain is going to be tighter than somebody that's manufacturing overseas.

因此，在定價方面擁有更公平的競爭環境是有幫助的。我們始終以努力實現商業卓越和努力讓客戶更容易與我們開展業務而自豪。因此，我們絕對已經與國內客戶進行了良好的對話，並將繼續保持這種良好的對話。我們的供應鏈將比海外製造商的供應鏈更加緊密。

But we've always really strived to create value and understand our customers' pain points, try and make their lives easier so that they can better serve their customers. large -- I mean a lot of our products and two-third-ish end up in the hands of contractors. And whether it's a distributor or whether it's a retailer, we try really hard to help our customers better serve their own customers, which really are what they and we care about.

但我們始終致力於創造價值並了解客戶的痛點，嘗試讓他們的生活更輕鬆，以便他們能夠更好地為客戶服務。大——我的意思是我們的許多產品和三分之二的產品最終都落入了承包商手中。無論是經銷商還是零售商，我們都盡力幫助我們的客戶更好地服務自己的客戶，而這才是他們和我們真正關心的事情。

And so it is hard to pinpoint, but your value candidly is easier to drive when your prices are competitive and people are sensitive to prices. And so we're able to keep prices at a very kind of reasonable level historically because we aren't subject to the tariffs that other people might be. And so those conversations are ongoing, and we hope when we execute well that, that makes our value proposition of that much more compelling.

因此很難確定，但坦白說，當您的價格具有競爭力並且人們對價格敏感時，您的價值就更容易被推動。因此，我們能夠將價格保持在非常合理的歷史水平，因為我們不受其他國家可能受到的關稅影響。因此，這些對話仍在進行中，我們希望當我們執行得很好時，這將使我們的價值主張更具吸引力。

Daniel Moore, CJS Securities.

丹尼爾·摩爾，CJS 證券。

So shift back to Building Products just for a second, very healthy organic growth. Can you just elaborate a little bit more on the pockets of strength. You mentioned cooling construction products, some of the heating products -- how much of it is market growth? How much of the share gains? And as we think about moving forward, talk about the potential to outpace the market over the next one, two, three years?

因此，讓我們暫時回到建築產品，非常健康的有機成長。您能否更詳細地闡述一下力量的口袋？您提到了建築冷氣產品和一些暖氣產品—它們的市場成長有多少？股票收益有多少？當我們考慮前進時，我們能否談談未來一、二、三年超越市場的潛力？

Sure. I think it's a mix, Dan. Some of it is a market normalization. Some of it is -- and that would probably be more in heating and cooking and in water. Some of it is market share gains. We saw some of those in the heating and cooking business and some in cooling and construction.

當然。我認為這是一種混合，丹。其中一些是市場正常化。有些是的——可能更多地出現在加熱、烹飪和水中。其中一些是市場份額的增長。我們在供暖和烹飪行業看到了一些這樣的情況，在冷氣和建築行業也看到了一些這樣的情況。

But then the markets are behaving more normally maybe a little bit more of a catch-up in heating and cooking, a little bit of growth in water, but then in refrigerants, right, in our cooling construction business, if you go all the way back to 2021, the American Manufacturing Act late 2020, 2021, really mandated a shift in refrigerant to more environmentally friendly gases.

但隨後市場表現更加正常，供暖和烹飪方面可能略有追趕，水方面略有增長，但冷媒方面，在我們的製冷建築業務中，如果一直追溯到 2021 年，2020 年末、2021 年的《美國製造業法案》確實要求將製冷劑轉向更環保的氣體。

And so you're seeing some of that load in and rollout over the past six or eight months. And these things happen periodically. And so I do think that, that market has grown and not to continue to grow maybe more than it historically would have due to some of those shifts.

因此，您將看到過去六到八個月內部分業務的加載和推出。這些事情會定期發生。因此我確實認為，由於某些轉變，市場已經成長，並且不會繼續成長，甚至可能比歷史上成長得更快。

Okay. That is helpful. And then -- go ahead, I'm sorry.

好的。這很有幫助。然後——繼續吧，對不起。

No, you're good.

不，你很好。

All right. Shifting to consumer. Maybe just talk about the progress you're making in terms of new product lines and expanding distribution at retail, I'm thinking specifically about Balloon Time Mini, but you got some of the other new products and initiatives, where you're seeing the biggest increases in terms of retail customer penetration? And what's the runway for growth look like?

好的。轉向消費者。也許只是談論您在新產品線和擴大零售分銷方面取得的進展，我特別想到的是 Balloon Time Mini，但您還有一些其他新產品和舉措，您看到零售客戶滲透率方面增長最大？增長的跑道是什麼樣的？

Sure. So with respect to consumer, revenue is up a little bit. Profitability down. We did have a tariff impact that was effectively, I'll call it, more than the miss, if you will, relative to last year. We've seen point-of-sale tracking and really mirroring our own orders.

當然。因此，就消費者而言，收入略有增加。盈利能力下降。我們確實受到了關稅的影響，如果你願意的話，可以這麼說，與去年相比，這種影響實際上超過了未達標。我們已經看到了銷售點追蹤並真正反映了我們自己的訂單。

And so our camping gas business and the tools business down a little bit, offset in large part by our Celebrations business, our helium business, which we continue to execute very well in part because of some of the shifts that have gone on with Party City not being part of the mix and our customers getting more of those customers, Walmart, Target, other people like that.

因此，我們的露營氣體業務和工具業務略有下降，但很大程度上被我們的慶祝業務和氦氣業務所抵消，我們繼續表現良好，部分原因是發生了一些轉變，Party City 不再是業務組合的一部分，我們的客戶越來越多，例如沃爾瑪、塔吉特等。

But then you mentioned a couple of things on new product side, Dan. And so with Balloon Time Mini specifically, that continues to enable us to have great conversations with new customers, and we talked about Target talked about CBS. Walgreens is a recent win. And you will soon be able to find in a couple of thousand Walgreens stores, our products, both the Balloon time Mini and the standard legacy balloon time product.

但是丹，你提到了新產品方面的一些事情。因此，具體來說，透過 Balloon Time Mini，我們可以繼續與新客戶進行良好的對話，我們也談到了 Target 和 CBS。沃爾格林 (Walgreens) 最近取得了勝利。您很快就能在數千家 Walgreens 商店中找到我們的產品，包括 Balloon time Mini 和標準傳統 balloon time 產品。

We're delighted about that. And then Halo Griddles and Walmart, we talked about that historically. Small numbers, but that's gone well. In fact, in the spring of in 2026, that's kind of the beginning of, call it, drilling or griddle season.

我們對此感到很高興。然後我們從歷史上討論了 Halo Griddles 和沃爾瑪。雖然數量不多，但進展順利。事實上，2026 年春天，這可以說是鑽井季節或煎鍋季節的開始。

You'll be able to find Halo Griddles at even more stores than you could in these past few months. So that team is working really hard and doing a fantastic job really understanding our markets, understanding our consumers trying to reach consumers, both independently and through our retail partners. And so we're really pleased with that.

與過去幾個月相比，您將能夠在更多的商店找到 Halo Griddles。因此，團隊非常努力地工作，並且做得非常出色，真正了解我們的市場，了解我們的消費者，並試圖透過獨立或透過我們的零售合作夥伴接觸消費者。因此我們對此感到非常高興。

And consumer is probably more impacted sometimes than pieces of building products around people's ability to be mobile and to move. And so we get lower interest rates that translate into lower mortgage rates, which, as you know, have more to do with the longer end of the curve there, we expect that, that would add to our revenues and growth as well.

有時，消費者受到的影響可能比圍繞人們的移動和移動能力所建構的產品更大。因此，我們獲得了較低的利率，從而轉化為較低的抵押貸款利率，正如你所知，這與曲線的較長端有更大的關係，我們預計，這也會增加我們的收入和成長。

Very helpful. And Kathryn touched on WAVE. Maybe just quickly ClarkDetrich their contribution pulled back to lowest levels since the start of the pandemic Obviously, the environment is a little challenged there. Just talk about whether -- if this is the new normal, at least for now, where do we go from here over the next few quarters?

非常有幫助。凱瑟琳談到了 WAVE。也許只是很快，ClarkDetrich 的貢獻就回落到了疫情開始以來的最低水平，顯然，那裡的環境受到了一些挑戰。只是討論一下——如果這是新常態，至少目前如此，那麼在接下來的幾季裡我們將走向何方？

Yes. No, you're exactly right. And the way that we think of our portfolio of businesses, a lot of our businesses really are right in the middle of repair, remodel, maintenance so we don't depend on new construction spending as much as some folks might.

是的。不，你說得完全正確。從我們對業務組合的看法來看，我們的許多業務實際上都處於維修、改造和維護階段，因此我們並不像某些人那樣依賴新建築支出。

In quarter, it is a little dependent on new construction spending and the US Census Bureau suggested recently that 14 months of past construction spending peaked in May of 2024. And so you do have that number and that growth figure a little depressed.

本季度，它有點依賴新的建築支出，美國人口普查局最近表示，過去 14 個月的建築支出在 2024 年 5 月達到頂峰。所以你確實有這個數字，而且成長數字有點低迷。

ClarkDietrich is a market leader, and they have continued to do well, but you have fewer opportunities that are out there, especially on the smaller contracting side. You do have infrastructure projects and data center projects, mega projects continuing to get greenlighted and to go which is great, but you'd like to have that mix of smaller projects as well.

ClarkDietrich 是市場領導者，並且一直表現良好，但機會較少，特別是在較小的承包方面。您確實有基礎設施項目和資料中心項目，大型項目不斷獲得批准並開始實施，這很好，但您也希望擁有一些小型項目。

And you'll see lower steel prices. And so you'll see people being very competitive, trying to, in our cases, keep the lights on at some of these smaller companies. And so all that tends to lead to some margin compression for ClarkDietrich. We do see Dodge momentum finally kind of picking up and looking good. That is a very leading indicator. A lot of times, you see a spike there.

你會看到鋼鐵價格下降。因此，你會看到人們競爭非常激烈，在我們的案例中，他們試圖讓一些小公司維持運作。因此，所有這些都會導致 ClarkDietrich 的利潤率受到壓縮。我們確實看到道奇的勢頭終於有所回升，而且看起來不錯。這是一個非常領先的指標。很多時候，你會看到那裡出現一個尖峰。

It takes 18 months plus for those to translate into sales for folks like ClarkDietrich and so pretty well positioned, but we think it's flat to potentially down a little bit in the next quarter or two and just because you've got to get through this period of uncertainty where people aren't willing to or able to get construction projects going.

對於像 ClarkDietrich 這樣處於有利地位的人來說，這些需要 18 個多月的時間才能轉化為銷售額，但我們認為在接下來的一兩個季度裡，銷售額可能會持平或略有下降，因為你必須度過這個不確定的時期，在這個時期，人們不願意或無法啟動建築項目。

We know that will change. It always changes and ClarkDietrich tends to come out better on the other side, but we do have to get through this period. And it's hard for us to be able to forecast whether it lasts two weeks or a couple of months or six or eight, but that's kind of where we are with that business.

我們知道這種情況將會改變。它總是在變化，而 ClarkDietrich 往往會表現得更好，但我們必須度過這段時期。我們很難預測它會持續兩週、幾個月、六個月還是八年，但這就是我們在該業務中的現狀。

Okay. Last one, I'll jump back in queue. Just maybe talk about the M&A pipeline. As you described, free cash flow solid and poised to inflect higher as the CapEx cycle winds down. So priorities for capital allocation and the outlook for potential either whether it's bolt-ons around Elgen manufacturing, other areas that could be potential opportunities to deploy capital over the next kind of 12 plus months?

好的。最後一個，我將重新回到隊列中。也許只是談論併購通路。正如您所描述的，自由現金流穩健，並且隨著資本支出週期的結束而有望走高。那麼，資本配置的優先事項和潛在前景是，無論是圍繞 Elgen 製造的附加項目，還是未來 12 個月以上可能成為部署資本潛在機會的其他領域？

Sure. And our capital allocation priorities continue to center around being balanced with a bias towards growth. You'll see we pay $9 million in the dividend, and we continue to buy back shares selectively -- but we have a bias for growth. And when we think about M&A and we think about our ability to continue to seek and add businesses that are high margin, low asset intensity leaders in niche markets, we're pretty excited about it. And I'll let Colin comment a bit more sort of some details around the pipeline and how we're thinking about it.

當然。我們的資本配置重點繼續圍繞著平衡和成長。您會看到我們支付了 900 萬美元的股息，並且我們繼續選擇性地回購股票——但我們偏向於成長。當我們考慮併購，並考慮我們繼續尋找和增加利基市場中高利潤、低資產強度領先企業的能力時，我們對此感到非常興奮。我會讓科林對管道的一些細節以及我們對此的看法發表更多評論。

Yes. And thanks, Joe. It's -- we feel like the pipeline is solid right now. The M&A markets are softer, but we're still finding those opportunities that are out there and spending time to really build those relationships and are excited about what that could become as we progress throughout the year.

是的。謝謝喬。我們覺得現在通路很穩固。併購市場較為疲軟，但我們仍在尋找存在的機會，並花時間真正建立這些關係，並對全年進展可能的成果感到興奮。

Our criteria, we're looking for leaders in niche areas across consumer and building products and that can demonstrate a sustainable competitive advantage, and that's our -- when we deploy our diligence process, that's what we're really looking to test. And a lot of those are in channels where we already have a big presence and a leadership position, and that gives us some ability to add value, whether it's through channel expertise or through manufacturing expertise or purchasing or price risk capabilities.

我們的標準是，我們正在尋找消費品和建築產品領域中的領導者，並且能夠展示出可持續的競爭優勢，這就是我們的——當我們部署盡職調查流程時，這才是我們真正想要測試的。其中許多都是在我們已經擁有很大影響力和領導地位的管道中，這給了我們一些增加價值的能力，無論是透過管道專業知識還是透過製造專業知識或採購或價格風險能力。

So you're absolutely right, Dan. The acquisition of Elgen was a great one for us, and we're excited about that. And that also gives us opportunity to look around their business into adjacencies to see where there may be some more value ahead. So excited about M&A in the future, it's going to be an important lever for us in terms of capital allocation and growth.

所以你完全正確，丹。收購 Elgen 對我們來說是一件大事，我們對此感到非常興奮。這也使我們有機會審視他們的業務及其周邊領域，看看未來哪裡可能會有更多價值。我對未來的併購感到非常興奮，它將成為我們資本配置和成長的重要槓桿。

Super. Look forward to hearing more out here in New York in a couple of weeks.

極好的。期待幾週後在紐約聽到更多消息。

Brian McNamara, Canaccord Genuity.

Canaccord Genuity 的 Brian McNamara。

I don't think you guys disclosed volumes in the release that you mentioned them qualitatively. Can you give us an idea of price versus volume growth for both segments in the quarter?

我認為你們在發表會上沒有透露定性提及的數量。您能否向我們介紹本季兩個部門的價格與銷售成長？

I'll take a quick shot at it. The volumes up in Building Products, price pretty stable and consumer volumes were down, but mix shifted more heavily towards our Celebrations business, which per unit cost more, and that was really the driver there.

我會快速拍攝一下。建築產品銷售量上升，價格相當穩定，消費量下降，但產品組合更轉向我們的慶典業務，其單位成本更高，這才是真正的驅動因素。

Yes. And Brian, it's -- we did not disclose volumes. It becomes very complex, given the size of the products we're offering and then some of our recent acquisitions, different types of products. We're not just selling cylinders anymore. We're selling tools, we're selling components. So the volume data points become a little too cloudy to be able to speak to and lumpy.

是的。布萊恩，我們沒有透露數量。考慮到我們提供的產品的規模以及我們最近的一些收購和不同類型的產品，情況變得非常複雜。我們不再只是銷售氣缸了。我們銷售工具，我們銷售零件。因此體積數據點變得有點太模糊而無法說話，而且不均勻。

Got it. Okay. I know I got a tariff question earlier. I'm just curious, are you seeing tariff impacts and pricing in your markets? I think back in around Liberation Day, there was a reasonable school of thought that there was kind of enough inventory in the channel to get us to the fall, and we're kind of here now.

知道了。好的。我知道我之前遇到過一個關稅問題。我只是好奇，您是否看到關稅影響和定價對您的市場有何影響？我回想起解放日前後，有一個合理的想法，認為頻道中有足夠的庫存可以讓我們度過秋天，而我們現在就在這裡。

Your home center customers are also being careful with their comments on pricing, but are you seeing price increases on the shelf from your internationally sourced competitors and price gaps wide in there? And is that helping the company?

您的家居中心客戶對定價的評論也很謹慎，但您是否看到來自國際競爭對手的貨架價格上漲，並且價格差距很大？這對公司有幫助嗎？

Yes. Brian, not yet. The tariffs are driving the impact. Joe mentioned it, a couple of million dollars in our business that we paid on the consumer side related to tariffs. I think a lot of companies are still trying to work through how to handle that and what to do and also kind of waiting and seeing how things unfold. So we're seeing that impact in our business. But at the shelf, it's a bit mixed.

是的。布萊恩，還沒有。關稅正在產生影響。喬提到了這一點，我們在業務中向消費者支付了與關稅相關的數百萬美元。我認為許多公司仍在努力研究如何處理這個問題以及採取什麼措施，同時也在等待並觀察事態發展。所以我們在我們的業務中看到了這種影響。但在貨架上，情況有點混亂。

Great. And then finally, I know there's a $2.2 million purchase accounting charge in there, but gross margins are lumpy. I know you're targeting kind of 30% over the medium term. How should we think about gross margin in the coming quarters? And any puts and takes there?

偉大的。最後，我知道其中有 220 萬美元的購買會計費用，但毛利率卻不高。我知道您的中期目標是 30%。我們該如何看待未來幾季的毛利率？那裡有什麼東西可以拿走和拿走嗎？

Yes. Brian, we did 27% this quarter, up from 24%. There was purchase accounting in both periods for the acquisition from Elgen and then on Ragasco. Strong volumes within Building Products, we talked about earlier, drove some of the volume increase as well as some of the incremental initiatives across the company that are paying off sequentially gross margin was down. Q1 and Q2 are seasonally weaker for us compared to Q3 and Q4. So that was unexpected.

是的。布萊恩，本季我們的完成率從 24% 上升到了 27%。兩個期間均進行了從 Elgen 和 Ragasco 的收購的購買會計處理。我們先前談到的建築產品業務的強勁成長推動了銷售量的成長，同時公司內部的一些增量舉措也帶來了回報，導致毛利率下降。與第三季和第四季相比，第一季和第二季的季節性較弱。所以這是出乎意料的。

But as you said, our goal over time here is to drive gross margins north of 30% and driving our -- holding our costs flat and SG&A as a percent of sales down 20%. So we feel like we're still on track with that and our initiatives are driving some momentum and want that trend to continue.

但正如您所說，我們的目標是將毛利率提高到 30% 以上，並保持成本平穩，銷售、一般及行政費用佔銷售額的百分比下降 20%。因此，我們覺得我們仍在朝著這個方向努力，我們的舉措正在推動一些勢頭，我們希望這種趨勢能夠持續下去。

Yes. And Brian, Colin is absolutely right. Those numbers, right, that we're striving towards and trying to get to those are sort of annual numbers, and there'll be a little bit of puts and takes when you have seasonally slower periods like Q1 and Q2 your conversion costs will be naturally a bit higher. And so you probably overperform that in Q3 and Q4, relatively speaking. But our goal for that is more of an annual number.

是的。布萊恩，科林完全正確。是的，我們正在努力實現並試圖達到的這些數字是年度數字，當你遇到像第一季和第二季這樣的季節性淡季時，你的轉換成本自然會高一些。因此，相對而言，你在第三季和第四季的表現可能會更好。但我們的目標更多的是一個年度數字。

Susan Maklari, Goldman Sachs.

高盛的蘇珊馬克拉里 (Susan Maklari)。

My first question is going back to the operational efficiencies that you mentioned in your prepared remarks. You noted that you've seen some nice progress in the water business. I guess, can you talk a bit more about that? And how do we think about where else those efforts can go to across the business and what they could mean over time.

我的第一個問題是回顧您在準備好的發言中提到的營運效率。您指出，水務業務取得了一些良好的進展。我想，您能再多談一下這個嗎？我們如何考慮這些努力還能在整個業務中發揮什麼作用，以及它們在未來會意味著什麼。

Yes, Susan, I think, as Joe mentioned in his remarks, 80/20 initiatives. We piloted that in the water business about seven months ago. It's going very well. A lot of -- the focus there is how do we reduce complexity, increase focus and drive better results. So we're in the middle of that. We're excited and the teams are very, very engaged. And we've been pleased with what we've seen so far and to Joe's comments earlier, we're starting to evaluate where could this apply next across our portfolio, so we can continue to build that muscle and really drive this way of operating.

是的，蘇珊，我認為，正如喬在他的評論中提到的，80/20 舉措。大約七個月前，我們在水務業務中試行了這個做法。一切進展順利。很多——重點是如何減少複雜性、提高專注度並取得更好的結果。所以我們正處於這個階段。我們非常興奮，團隊也非常投入。我們對目前所看到的情況感到滿意，並根據喬先前的評論，我們開始評估下一步可以將其應用於我們投資組合的哪些方面，以便我們能夠繼續增強這種實力並真正推動這種運作方式。

Yes. And Susan, just a couple of other thoughts. We do really like how that way of thinking is challenging our historic norms. We've been at it for almost months and so we've seen enough to know a couple of things. One, it's going to have a positive impact; and two, we'd like to do more of it. And so I think you'll see us be thoughtful about how best to roll it out.

是的。蘇珊，我還有一些其他的想法。我們確實很喜歡這種思考方式，它挑戰了我們的歷史規範。我們已經做了將近幾個月的事情，所以我們已經看到足夠多的事情來了解一些事情。一是它將產生正面的影響；二是我們希望做更多這樣的事。所以我想你會看到我們認真考慮如何最好地推出它。

We don't want to kind of try and boil the ocean, but we want to be thoughtful about it. And it's going to be a great tool in our kit as we go forward. But then the other piece, broader maybe than 80-20 is our constant ever green initiatives on holding costs down. And in our facilities, there are goals every single month, every single quarter, every single year in terms of taking costs out and across our facilities and certainly within the corporate organization, look, our health care costs continue to go up, obviously, people get merit increases.

我們不想嘗試煮沸海洋，但我們希望對此進行深思熟慮。隨著我們不斷前進，它將成為我們工具包中的一個重要工具。但另一方面，可能比 80-20 更廣泛的是我們持續採取的綠色舉措，以降低成本。在我們的設施中，每個月、每季、每年都有目標來降低成本，在我們的設施中，當然在公司組織內部，看，我們的醫療保健成本持續上漲，顯然，人們的績效工資會提高。

But if you look at Q1 versus Q1 last year, we grew revenue, we grew gross profit -- but absent the inclusion of Elgen SG&A, our SG&A was flat year-over-year. And so that's a great testament to the work our teams are doing. That might not happen every single quarter, but it's something that we are very conscious of in that we believe we have a great platform, and we can grow our revenues and gross profits and keep the same kind of infrastructure and base, and we hope that over time, that is consistent with being able to grow margins.

但如果你對比去年第一季和今年第一季度，你會發現我們的收入增加了，毛利也增加了——但如果不計入 Elgen 的銷售、一般和行政費用，我們的銷售、一般和行政費用與去年同期持平。這充分證明了我們團隊所做工作的成果。這可能不會每個季度都發生，但我們非常清楚這一點，因為我們相信我們擁有一個很好的平台，我們可以增加收入和毛利，並保持相同的基礎設施和基礎，我們希望隨著時間的推移，這與利潤率的增長保持一致。

Yes. Okay. That's helpful color. And then turning to Elgen. Can you talk a bit about how that business can actually help in terms of hitting some of these targets that you've laid out, growing the business overall. And especially thinking about perhaps the less discretionary nature of HVAC and what that could mean in a tougher macro and especially if things slow further from here?

是的。好的。這是很有幫助的顏色。然後轉向 Elgen。您能否談談這項業務如何幫助您實現所製定的一些目標，如何促進整體業務成長？尤其是考慮到 HVAC 的可自由支配性可能較弱，以及這在更嚴峻的宏觀形勢下意味著什麼，尤其是如果情況進一步放緩？

Yes, Susan, it's -- we're very pleased with Elgen so far. It contributed, as I mentioned, $21 million in revenue and relatively breakeven from an EBITDA standpoint, which included the $2.2 million in purchase accounting. The stat we released on the business right when we acquired it, $115 million of revenue annually, $13 million in adjusted EBITDA, at the end of the day, this is a good example of our M&A strategy in action and our goal in expanding our portfolio in commercial HVAC and the structural framing and we found this fantastic business that so far has been a great fit for us.

是的，蘇珊，到目前為止，我們對 Elgen 非常滿意。正如我所提到的，它貢獻了 2,100 萬美元的收入，從 EBITDA 的角度來看相對收支平衡，其中包括 220 萬美元的購買會計。我們在收購該業務時發布的統計數據是，每年收入 1.15 億美元，調整後 EBITDA 為 1300 萬美元，歸根結底，這是我們併購策略付諸實施的一個很好的例子，也是我們擴大商用暖通空調和結構框架產品組合的目標，我們發現這個出色的業務到目前為止非常適合我們。

Integration, we believe, we're 90 days in. It's doing very, very well. We have our operations teams together working side by side, the commercial teams, the purchasing teams. And what we're very pleased with is just the more time we spend with that business, we find a lot of really, really good talent at the company, and we're very pleased with how that's gone so far.

我們相信，整合工作已在 90 天內完成。它表現得非常非常好。我們的營運團隊、商業團隊、採購團隊並肩工作。我們非常高興的是，我們在該業務上投入的時間越多，就越能發現公司中有很多非常優秀的人才，我們對目前的進展感到非常滿意。

And to your point, Susan, the commercial HVAC market, we believe is attractive and it's resilient over time and provides above GDP site growth. And that's why it was a key target market of ours. And we found this opportunity with Elgen where we can bring some value and sophistication from a steel manufacturing standpoint and purchasing and operational expertise, and we're getting to work with we can continue to increase value with them at that company over time. And this is one of, hopefully, many that we do over time as an example here.

正如您所說，蘇珊，我們認為商用暖通空調市場很有吸引力，而且隨著時間的推移，它具有彈性，並能提供高於 GDP 的站點成長。這就是為什麼它是我們的主要目標市場。我們與 Elgen 合作發現了這個機會，我們可以從鋼鐵製造的角度以及採購和運營專業知識帶來一些價值和成熟度，並且我們正在與他們合作，隨著時間的推移，我們可以繼續在該公司增加價值。希望這是我們長期以來所做的眾多例子之一。

And Susan, your question is really a good one relative to growth opportunities and to the resiliency of that market. We certainly agree with the latter point -- we think there are growth opportunities organically within Elgen but also we look at cross-selling opportunities in our water business, some crossover with or ClarkDietrich things related to WAVE.

蘇珊，你的問題確實很好，與成長機會和市場彈性有關。我們當然同意後一點——我們認為 Elgen 內部存在有機成長機會，但我們也在關注水業務中的交叉銷售機會，以及與 ClarkDietrich 或 WAVE 相關的一些交叉業務。

And so any time we continue to be able to add value with this sort of two-step distribution market into HVAC and things that are above the ceiling or behind the walls, people are looking for kind of creative, innovative ways to consolidate their own spend, save money, and we think we can be a part of that solution for.

因此，任何時候我們都能繼續透過這種兩步驟分銷市場為暖通空調和天花板上方或牆壁後面的物品增加價值，人們正在尋找創造性、創新性的方法來整合自己的支出、節省資金，我們認為我們可以成為該解決方案的一部分。

Yes. Okay. That's helpful, Joe. And then one more question, which is just when you think about the business broadly -- how are you balancing the investments in the growth and the cost efforts relative to the potential that we do end up in a tougher macro next year and maybe we see the consumer still really being under pressure there.

是的。好的。這很有幫助，喬。還有一個問題，當你從更廣泛的角度考慮業務時——你如何平衡成長投資和成本控制，以及明年宏觀經濟可能會更加嚴峻，而且消費者可能仍然面臨壓力。

And just how are you thinking about those various factors that are all coming through and noting that there's a lot of uncertainty around there, but just any thoughts generally on that positioning and how you're thinking -- how you're approaching that?

您如何看待這些出現的各種因素，並注意到周圍存在著許多不確定性，但您對這種定位有什麼總體看法，以及您是如何看待這個問題的？您是如何處理這個問題的？

Yes, it's a great question. And uncertainty is really a watch word that you see, we see that there are a lot of things out there in a lot of ways, what lower interest rates are meant to do is to stimulate growth. And you've seen interest rates at the very, very short income down, but not on the kind of 5, 10, 30 year and so people are still a little hesitant to even though reshoring is a priority, people are still a little hesitant to spend money and to put things into the ground and to investing CapEx, et cetera.

是的，這是一個很好的問題。不確定性確實是一個警示詞，我們看到在許多方面都存在著許多問題，降低利率的目的是刺激成長。你已經看到短期利率下降，但 5 年、10 年、30 年的利率並沒有下降，所以人們仍然有點猶豫，儘管回流是一個優先事項，但人們仍然有點猶豫是否要花錢，是否要把東西投入到土地上，是否要投資資本支出等等。

And so our -- the advantage we have in a lot of our businesses is we're pretty good at being -- trading down is the wrong way to think about it. But some of the things in our consumer business that we're really good at are substitute if somebody isn't able to go on a trip or to stay in a hotel or travel internationally, they will spend more time outside. They will spend more time camping.

因此，我們在許多業務中的優勢在於，我們非常擅長降低消費水平，但這並不是正確的想法。但是，我們消費者業務中真正擅長的一些事情是，如果有人不能去旅行、住在酒店或出國旅行，他們就會花更多的時間在外面。他們將花更多時間露營。

And we're also doing a lot of work around direct-to-consumer initiatives and really sort of thinking about our placement in bricks and mortars because our solutions can, in fact, enable the DIY-ers who are going to think about those projects instead of something different or something instead of hiring somebody.

我們也在直接面向消費者的計劃方面做了很多工作，並且認真考慮了我們在實體店中的定位，因為我們的解決方案實際上可以讓那些 DIY 愛好者自己思考這些項目，而不是去想其他事情或僱用別人。

The more macro piece of that and again, a lot of our portfolio is repair, remodel maintenance, a bit more insulated, but not totally insulated. And so we are continuing to invest in being a smarter, more nimble company that's around AI, that's around automation. Now that's around analytics.

從更宏觀的角度來看，我們的許多投資組合都是維修、改造維護，稍微有點隔離，但不是完全隔離。因此，我們將繼續投資，成為一家圍繞人工智慧和自動化的更聰明、更靈活的公司。現在，一切都圍繞著分析。

While absolutely kind of keeping an eye on a lid on sort of expenses that we think might not have the kinds of returns that we're looking for. And I think that's probably what a lot of people would do in an environment like this is something your cost of capital goes up, but your hurdle rate goes up because your risk potion is higher. But all things being considered, we go back through and look at where our business sits.

同時，我們絕對會密切關注那些我們認為可能不會帶來我們所期望的回報的支出。我認為在這樣的環境下很多人可能會這麼做：你的資本成本上升，但你的最低收益率也會上升，因為你的風險比率更高了。但考慮到所有因素，我們會回過頭來審視我們的業務現狀。

And we feel really good about what we're doing right now. And if the economy persons, then we'll, I think, do just fine and probably outperform. But as markets recover, which they always will. We feel great about how we're positioned and what our solutions will mean kind of going forward into the mid- to longer term.

我們對現在所做的事情感到非常滿意。如果經濟狀況良好，那麼我認為我們會做得很好，甚至可能表現優異。但隨著市場復甦，市場總會復甦的。我們對我們的定位以及我們的解決方案對中長期發展的意義感到非常滿意。

(Operator Instructions) Walt Liptak, Seaport Research.

（操作員指示）Walt Liptak，海港研究。

Yes, great call so far. A lot of questions answered. I would like to try a follow-on on the HVAC refrigerant containers. And so I think it's been a couple of periods so far where you've been maybe doing well with your customers increasing penetration -- is this the kind of thing where it's like a one year bump where you start getting on to more difficult comparisons at some point? Or is there enough customers, a big enough market where you can just continue to serve those customers really well. and increase that penetration beyond like a one year bump in sales.

是的，到目前為止通話效果很好。很多問題都得到了答案。我想嘗試對 HVAC 冷媒容器進行後續操作。所以我認為到目前為止，你們可能已經取得了一些不錯的成績，你們的客戶滲透率不斷提高——這是否就像一年的高峰，在某個時候你們開始面臨更困難的比較？或者是否有足夠的客戶，足夠大的市場，您可以繼續很好地為這些客戶提供服務，並將滲透率提高到一年以上的銷售額。

Yes, it's hard to predict what the future looks like. Well, it's a very fair question. We think it's probably more the latter than the former. There are lots of things happening in these mandates for more environmentally friendly gases will continue to kind of proliferate. It's up to us to continue doing our level best to service our customers and service their customers. And so we're able to meet this increased demand.

是的，很難預測未來會是什麼樣子。嗯，這是一個非常公平的問題。我們認為後者的可能性大於前者。這些法規中發生了很多事情，更環保的氣體將繼續普及。我們有責任繼續盡最大努力為我們的客戶提供服務，也為他們的客戶提供服務。因此我們能夠滿足日益增長的需求。

And if ultimately you see things change in a year, it's likely that you would have something to potentially replace a loaded in that runs it's course. So you'll never say never, but we're felling relatively good about the teacher that business while understanding that these types of things don't happen every quarter.

如果您最終看到一年後情況發生變化，那麼您很可能會找到一些東西來取代已經運行一段時間的東西。所以你永遠不會說永遠，但我們對教師這個行業感覺相對良好，同時也明白這種事情不會每季都發生。

Okay. I wondered you talked a lot on this about the different forms of seasonality and how they impact the business. So, -- I wonder if you could just go through maybe not in a huge amount of detail, but some detail about the fall of winter and especially going into kind of the spring selling season, when do you start selling product into this spring selling season, when's there inventory lift?

好的。我想知道您是否談論過季節性的不同形式以及它們如何影響業務。所以，——我想知道您是否可以簡單介紹一下，也許不是非常詳細，但可以詳細介紹一下秋冬季節的情況，特別是進入春季銷售季節，您什麼時候開始在春季銷售季節銷售產品，什麼時候庫存會增加？

And what are the indication in consumer -- from your larger consumer and then, maybe in building products too where does the seasonality look like over the next couple of quarters.

那麼從消費者的角度來看，從更大的消費者的角度來看，以及從建築產品的角度來看，未來幾季的季節性會如何？

Yes. So I'll take a shot at it, and Joe can fill in. I think just generally, it's -- it can vary from year-to-year, obviously, depending on what's happening throughout the year. Q1 and Q2 are typically seasonally weaker than Q3 and Q4. And it varies a little bit across consumer and building. And then in particular, as you get into Q2 and Q3, it could depend just on if there's weather-related events, if it's colder sooner or if there's hurricanes or snowstorms that would drive activity and those, obviously, we can't predict from year-to-year, but they do happen in those time periods. So that's the high-level way we think about it, and then you have to go kind of category by category.

是的。所以我會嘗試一下，然後喬可以填補。我認為一般來說，它每年都會有所不同，顯然，這取決於全年發生的情況。從季節性角度來看，第一季和第二季通常弱於第三季和第四季。並且它在消費者和建築物之間略有不同。特別是，當進入第二季度和第三季度時，它可能取決於是否有與天氣相關的事件，天氣是否會更早變冷，或者是否有颶風或暴風雪來驅動活動，顯然，我們無法逐年預測這些事件，但它們確實會在這些時間段發生。這就是我們思考這個問題的高層方式，然後你必須逐一類別地進行。

That concludes our question-and-answer session. I'll now turn the call back over to the management for some closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給管理層，請他們發表一些結束語。

Thank you all for joining us this morning. Have a wonderful rest of your week, and we'll look forward to speaking with everybody soon. Thank you.

感謝大家今天上午加入我們。祝您本週剩餘時間過得愉快，我們期待很快與大家交談。謝謝。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。