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Mar 31, 2021
Trex Q1 2021 Earnings Report
Trex's Q1 2021 results reflected strong revenue growth and improved profitability.
Key Takeaways
Trex Company reported a 23% increase in consolidated net sales, reaching $246 million in Q1 2021. The company's diluted earnings per share increased by 17% to $0.42, and EBITDA grew by 20% to $71 million. Trex Residential Products saw a 25% increase in net sales, driven by sustained demand and market share gains.
Consolidated net sales increased 23% to $246 million.
Diluted earnings per share increased 17% to $0.42.
EBITDA increased 20% to $71 million with an EBITDA margin of 28.9%.
Company reaffirms full year 2021 incremental EBITDA margin guidance of 35% to 40%.
Trex
Trex
Forward Guidance
For the second quarter of 2021, Trex expects consolidated net sales to range from $295 million to $305 million, representing 36% year-over-year growth at the midpoint of the range. They are also reaffirming guidance for full year 2021 incremental EBITDA margin of between 35% and 40%.
Positive Outlook
- Consolidated net sales are expected to range from $295 million to $305 million.
- Represents 36% year-over-year growth at the midpoint of the range.
- Reaffirming guidance for full year 2021 incremental EBITDA margin of between 35% and 40%.
- Capacity expansion to be completed ahead of schedule.
- Price increases on most products will take effect in August 2021.
Challenges Ahead
- Increased inflation across many key raw materials.
- Increased transportation costs.
- Start-up costs related to capacity expansion program.
- Increased depreciation related to capital expansion program.
- Reduced overhead absorption due to a fire at the Virginia facility.