Trex Q2 2024 Earnings Report
Key Takeaways
Trex Company reported a 6% increase in net sales to $376 million for the second quarter of 2024, driven by premium products. Gross margin improved to 44.7%, and EBITDA margin expanded to 34.6%. The company is guiding to third quarter revenues of $220 million to $230 million and maintaining full year EBITDA margin guidance of 30% to 30.5%.
Net sales for the second quarter of 2024 reached $376 million.
Gross margin stood at 44.7% for the quarter.
Net income amounted to $87 million, with diluted earnings per share of $0.80.
EBITDA was reported as $130 million, with an EBITDA margin of 34.6%.
Trex
Trex
Forward Guidance
Trex expects 2024 revenue to range from $1.13 billion to $1.15 billion and third quarter revenue to range from $220 million to $230 million. The company is maintaining its full year EBITDA margin guidance range at 30.0% to 30.5%.
Positive Outlook
- Mid-market and premium product sales are encouraging.
- Channel inventory levels at the end of the year are expected to be slightly lower than 2023 year-end levels.
- Maintaining full year EBITDA margin guidance range at 30.0% to 30.5%.
- SG&A as a percentage of net sales is projected to be flat with the prior year at approximately 16%.
- Depreciation and amortization is estimated between $53 million and $55 million.
Challenges Ahead
- Uncertain economic outlook.
- Softness in the entry-level segment.
- Adjusting sales guidance for the full year due to economic uncertainty.
- Tax rate is expected to be in the 25% to 26% range.
- The company is taking a measured approach