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Jun 30, 2024
Trex Q2 2024 Earnings Report
Trex's second quarter sales increased, driven by premium products, and gross margin expanded due to higher utilization and production efficiencies.
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%.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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