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Mar 31, 2022
Trex Q1 2022 Earnings Report
Trex Company reported record results driven by residential sales growth and improved operating leverage.
Key Takeaways
Trex Company reported a strong start to 2022, with a 40% increase in residential revenue and a 38% increase in consolidated net sales. The company's gross margin was 39.8%, and EBITDA increased by 49%.
Consolidated net sales increased 38% to $339 million.
Net income increased by 47% to $71 million, with diluted earnings per share up 48% to $0.62.
EBITDA rose by 49% to $105 million, and the EBITDA margin increased by 220 basis points to 31.1%.
Trex Residential net sales increased 40% to $327 million, while Trex Commercial contributed $12 million to net sales.
Forward Guidance
For the second quarter of 2022, Trex expects consolidated net sales to range from $375 million to $385 million, representing 22% year-over-year growth at the midpoint. The company also reaffirmed its guidance for full year 2022 double-digit revenue growth and an incremental EBITDA margin of 30% to 35%.
Positive Outlook
- Expected consolidated net sales to range from $375 million to $385 million.
- Representing 22% year-over-year growth at the midpoint.
- Reaffirms guidance for full year 2022 double-digit revenue growth.
- Reaffirms guidance for full year 2022 incremental EBITDA margin of 30% to 35%.
- Long-term secular growth trends remain strong.
Challenges Ahead
- Availability and cost of third-party transportation services for the Company’s products
- The Company’s ability to obtain raw materials at acceptable prices
- The Company’s ability to maintain product quality and product performance at an acceptable cost
Historical Earnings Impact
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Avg. Return Before/After Earnings
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