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Jun 30, 2021
Trex Q2 2021 Earnings Report
Trex Company reported strong results driven by sustained demand and market share gains.
Key Takeaways
Trex Company reported a 41% increase in consolidated net sales, reaching $312 million in Q2 2021. Diluted earnings per share increased by 29% to $0.53, and EBITDA grew by 36% to $92 million. The company's residential segment saw a 43% increase in net sales, driven by strong demand and the completion of a capacity expansion program.
Consolidated net sales increased 41% to $312 million.
Diluted earnings per share increased 29% to $0.53.
EBITDA increased 36% to $92 million with an EBITDA margin of 29.4%.
Trex Residential net sales increased 43% to $299 million.
Trex
Trex
Forward Guidance
For the third quarter of 2021, the company expects consolidated net sales to range from $320 million to $330 million, representing 40% year-over-year growth at the midpoint of the range.
Positive Outlook
- Continued strong broad-based demand for Trex Residential outdoor living products.
- Further build-out of new decking lines in Virginia will continue, and those new lines are scheduled to be available for production by the end of this year.
- Expansion initiatives will serve the core residential market.
- Expansion initiatives will enable the company to actively pursue future growth opportunities, including the expansion of international sales.
- Expansion initiatives will enable the company to pursue the entrance of Trex Residential products into the home builder market.
Challenges Ahead
- Market acceptance of newly developed products.
- Costs associated with the development and launch of new products.
- Sensitivity to general economic conditions.
- Impact of seasonal and weather-related demand fluctuations.
- Availability and cost of third-party transportation services.