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Mar 31, 2023
Trex Q1 2023 Earnings Report
Trex's first quarter performance demonstrated broad appeal and attractiveness, with results aligning with expectations.
Key Takeaways
Trex Company reported first quarter 2023 results with net sales of $239 million, a gross margin of 39.6%, net income of $41 million, and EPS of $0.38. The company's EBITDA was $69 million, representing an EBITDA margin of 28.8%.
Net sales reached $239 million.
Gross margin was reported at 39.6%.
Net income amounted to $41 million, with diluted earnings per share at $0.38.
EBITDA stood at $69 million, resulting in an EBITDA margin of 28.8%.
Forward Guidance
The company anticipates second quarter 2023 net sales to be in the range of $310 million to $320 million and reaffirms its expectation for full year 2023 EBITDA margin in the range of 26% to 27%. Capital expenditures for 2023 are expected to be in the $130 million to $140 million range.
Positive Outlook
- Trex anticipates second quarter 2023 net sales to be in the range of $310 million to $320 million
- First quarter margin performance supports our expectation for full year 2023 EBITDA margin in the range of 26% to 27%.
- Trex Board of Directors adopted a new stock repurchase program of up to 10.8 million shares of its outstanding common stock
- Trex terminated the existing stock repurchase program.
- Year-to-date market demand has been consistent with our expectations.
Challenges Ahead
- Decrease was primarily due to a decrease in volume, attributable to more cautious purchase patterns by the channel in the face of softening economic conditions.
- Also impacting first quarter earnings is the absence of revenue from Trex Commercial, which was sold on December 30,2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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