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Mar 31
Trex Q1 2025 Earnings Report
Trex reported Q1 2025 results with revenue surpassing guidance, driven by premium product demand and strong channel positioning.
Key Takeaways
Trex delivered strong Q1 2025 performance with $340 million in revenue and $60 million in net income, boosted by demand for premium and new products, while maintaining strategic investments in innovation and distribution.
Q1 2025 revenue reached $340 million, exceeding guidance despite a YoY decline due to prior-year channel inventory.
Net income was $60 million with EPS of $0.56; adjusted EPS was $0.60.
Adjusted EBITDA totaled $101 million, reflecting ongoing operational efficiency.
Gross margin was 40.5%, impacted by railing conversion and production changes.
Trex
Trex
Trex Revenue by Segment
Revenue by Segment
Trex Residential Revenue
CapyFin.com Forward Guidance
Trex reaffirmed full-year 2025 guidance with strong expected sell-through and margin recovery in H2.
Positive Outlook
- Q2 revenue guidance between $370M–$380M.
- Full-year sales growth expected between 5%–7%.
- Adjusted EBITDA margin to exceed 31%.
- Strong pro-dealer conversions and expanded product adoption.
- New Arkansas facility enhances production efficiency and margin potential.
Challenges Ahead
- Q1 revenue declined YoY due to $40M in prior-year channel inventory.
- Gross margin impacted by production adjustments and product updates.
- Q2 margins expected to remain similar to Q1 before improving later in the year.
- SG&A increased due to start-up and digital transformation costs.
- Tariffs continue to affect material costs, particularly for aluminum and steel.