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Jun 30, 2023
Trex Q2 2023 Earnings Report
Trex demonstrated resilience with stronger-than-expected sales, margin expansion via production optimization, and raised full-year EBITDA margin guidance.
Key Takeaways
Trex Company reported a net sales of $357 million. The company's gross margin was 43.9%. Net income reached $77 million, with diluted earnings per share at $0.71. EBITDA stood at $117 million, resulting in an EBITDA margin of 32.8%.
Net sales reached $357 million.
Gross margin was 43.9%.
Net income was $77 million, with diluted earnings per share of $0.71.
EBITDA was $117 million, with an EBITDA margin of 32.8%.
Forward Guidance
Trex anticipates full year 2023 revenues to range from $1.04 billion to $1.06 billion, with third quarter revenues estimated between $280 million and $290 million. The company also raised its full year EBITDA margin guidance to a range of 28% to 29%.
Positive Outlook
- Full year 2023 revenues are expected to range from $1.04 billion to $1.06 billion
- Continued sell-through is expected to reduce year-end channel inventories below 2022 levels
- Third quarter revenues are estimated to be in the range of $280 million to $290 million
- Full year EBITDA margin guidance raised to a range of 28% to 29%
- SG&A spending will be at the high end of the 15% to 16% guidance range
Challenges Ahead
- Fourth quarter results reflecting both seasonally low demand
- Expectations that year end channel inventories will be below that of year end 2022
- Sales were 5% below comparable year-ago residential levels
Historical Earnings Impact
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Avg. Return Before/After Earnings
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