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Mar 31, 2024
Trex Q1 2024 Earnings Report
Trex reported strong Q1 2024 results, driven by double-digit sell-through for premium products and early buy program.
Key Takeaways
Trex Company reported net sales of $374 million, a gross margin of 45.4%, and net income of $89 million, or $0.82 per diluted share, for the first quarter of 2024. EBITDA was $133 million with an EBITDA margin of 35.6%. The company reaffirms full year guidance.
Net sales increased by 57% year-over-year to $374 million.
Gross margin improved to 45.4%, up 580 basis points from the prior year.
Net income reached $89 million, or $0.82 per diluted share.
EBITDA was $133 million, with a margin of 35.6%.
Trex
Trex
Forward Guidance
Trex expects second quarter sales to be in the $380 million to $390 million range and reaffirms full year guidance for revenues of $1.215 billion to $1.235 billion and EBITDA margin to be in the range of 30.0% and 30.5%.
Positive Outlook
- Outdoor Living category continues to thrive.
- Consumers remain in their homes longer.
- Consumers prioritize investments that offer fuller enjoyment of their outdoor spaces.
- Investments increase the value of their homes.
- Trex remains the primary beneficiary of the ongoing conversion from wood to composites.
Challenges Ahead
- Market acceptance of the Company’s current and newly developed products.
- Costs associated with the development and launch of new products and the market acceptance of such new products.
- Sensitivity of the Company’s business to general economic conditions.
- Impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products.
- Availability and cost of third-party transportation services for the Company’s products and raw materials.