Sep 30, 2021

Trex Q3 2021 Earnings Report

Trex reported strong results driven by robust repair and remodel activity and strong demand.

Key Takeaways

Trex Company reported a 45% increase in consolidated net sales, reaching $336 million. Net income grew by 73% to $74 million, with diluted earnings per share of $0.64. EBITDA increased by 76% to $108 million, with an EBITDA margin of 32.2%. The company also announced plans for a third production site to address long-term demand trends.

Consolidated net sales increased 45% to $336 million.

Net income grew 73% to $74 million; diluted earnings per share of $0.64, up 73%.

EBITDA grew 76% to $108 million; EBITDA margin of 32.2%.

Announced plans for third production site to address long-term demand trends and pursue new growth opportunities.

Total Revenue
$336M
Previous year: $232M
+45.1%
EPS
$0.64
Previous year: $0.41
+56.1%
Gross Margin
38.2%
Previous year: 36.7%
+4.1%
SG&A expense as % of net sales
9%
Previous year: 12.1%
-25.6%
Gross Profit
$128M
Previous year: $85M
+50.9%
Cash and Equivalents
$54M
Previous year: $20.1M
+169.1%
Free Cash Flow
$102M
Previous year: $7.76M
+1209.8%
Total Assets
$953M
Previous year: $718M
+32.7%

Trex

Trex

Forward Guidance

For the fourth quarter of 2021, Trex expects consolidated net sales to range from $295 million to $305 million, representing 31% year-over-year growth at the midpoint of the range. Anticipating sustained consumer demand along with infilling of low channel inventories, as we look to 2022, we expect another year of strong double-digit revenue gains.

Positive Outlook

  • Demand trends remain strong.
  • Mirroring repair and remodel spending forecasts for the remainder of 2021 and into 2022.
  • Significant rise in home improvement permits indicating that homeowners are continuing to invest in their primary and secondary residences.
  • Order activity together with website traffic and analytics point to a strong finish to 2021.
  • Anticipating sustained consumer demand along with infilling of low channel inventories, as we look to 2022, we expect another year of strong double-digit revenue gains.